Presentation on theme: "Prof. Dr. Hans-Jürgen Scheruhn"— Presentation transcript:
1Prof. Dr. Hans-Jürgen Scheruhn Vorlesung im Wintersemester 2010/11 an der Leuphana-UniversitätBusiness Process Management (BPM)Prof. Dr. Hans-Jürgen ScheruhnHochschule Harz WernigerodeHochschule für angewandte Wissenschaften (FH)
2COMPANIES´ TOP GOALS FOR BPM NotImportantSource: --Michelle Cantara, Gartner, Market Trends: Impact of Business Process Management on Consulting and Development & Integration Services, Worldwide,ExtremelyImportant
3The Concept of Reference Models Since process models have become embedded in the BPM approach, the idea of a reference model or best-practice has emerged into BPM. Reference models can be thought of as templates from which process models may be developed. Reference models are often developed by associations of professionals. Therefore they are quite knowledge intensive. Examples of reference models include the APQC Process Classification Framework (PCF), the Information Technology Infrastructure Library (ITIL), or the Supply Chain Operations Reference model (SCOR).
4Process Hierarchy Process Area Main Process Process Activity Extend enterprise mapLevel 1Main ProcessLevel 2ProcessLevel 3ActivityLevel 4
5Business Process Description – As-Is Documentation Business objectsProcess stepsBusiness rulesInvolved Business UnitsR: Responsible; person who carries out the activityA: Accountable; person who is in chargeC: Consulted; person asked before carrying out the activity or supporting the activityI: Informed; person has to be informed
6Darstellung 4 IT-Integrationsebenen am Bsp. Fallstudie SSB 66Darstellung 4 IT-Integrationsebenen am Bsp. Fallstudie SSBAusführung SAP ERP Abbildung als Modell in ARIS (Ausschnitt)Benutzer-Rollen einnehmen undProzesse via SAP GUI bedienen :Organisationssicht(OrgEinheiten / Planstellen / Rollen/ User) :Abstraktionsebene 1 bis 3PräsentationProzesseProzesse ausführen :Ablauf der gesamten FallstudieEinzelne Fallstudien-AbläufeProzesssichtWertschöpfungskette : Ebene 1 und 2Ereignisgesteuerte Prozesskette : Eb. 3FunktionenTransaktion ausführen :Alle Fallstudieninhalte auf einen BlickFunktionssichtFunktionsbaum : Ebene 1 bis 3Daten ein- / ausgeben :Vollständiger SAP-Beleg- / GeldflussBeschreibung SAP-MaskeninhalteAlle SAP Ein- / AusgabedatenAlle SAP-SystemorganisationseinheitenDatensichtInformationsträgerdiagramm : Ebene 3Maskendiagramm : Abstraktionsebene 4Entity Relationship Diagramm : Ebene 3Organigramm : Abstraktionsebene 1- 3Daten
7Architecture Maturity have change to Business Modularity – A Brief history of Architecture MaturityBusinessSilosStandardizedTechnologyOptimizedCoreModularityDynamicVenturingIT capabilityLocal IT applicationsShared technical platformsCompanywide standardized processes or databasesPlug-and-play business process modulesSeamless merging with partners’ systemsobjectivesROI of local business initiativesReduced IT costCost and quality of business operationsSpeed to market; strategic agilityROI of new business venturesWho defines applicationsLocal business leadersIT and business unit leadersSenior management and process leadersIT, business, and industry leadersIT, business, and industry leaders and partnersStrategic implicationsLocal/functional optimizationIT efficiencyBusiness/operational efficiencyStrategic agilityOrganic reconfigurationRoss, Jeanne. W Creating a strategic IT architecture completely: Learningin stages. MIS Quarterly Executive, 2(1),Ross, J. W., and Vitale, M. R The ERP Revolution: Surviving vs.Thriving. Information Systems Frontier, 2(2),Ross, J. W., Weill, P., and Robertson, D. C Enterprise Architectureas Strategy. Harvard Business School Publishing.Skok and Legge (2002) summarize the early key drivers for adoptingERP systems as:Legacy systems and Y2K system concernsGlobalization of businessIncreasing national and international regulatory environment, forexample, the European Monetary UnionBPR and the current focus on process standardization, for example,ISO9000Scalable and flexible emerging client/server infrastructuresA trend towards collaboration among software vendorsSource: Ross et. al, 2006
8From Operational Efficiency to Business Agility +Operational EfficiencyBusiness Process ReengineeringEnterprise Resource PlanningBusiness Network TransformationBusiness Process Platform1990s s sSource: Adapted from the book: Business Process Management – The SAP Roadmap, 2009)
9Enterprise Architecture An enterprise architecture (EA) describes the structure of an enterprise, its decomposition into subsystems, the relationships between the subsystems, the relationships with the external environment, the terminology to use, and the guiding principles for the design and evolution of an enterprise.An enterprise architecture provides a holistic, systematic description of an enterprise. It encompasses business functions, business process, people, organisation, business information, software applications and computer systems with their relationships to enterprise goals. The hope for enterprise architecture is that applying systematic rational methods to the design of an enterprise will produce one that more effectively and efficiently pursues its purposes.Enterprise architecture models the organization’s core mission, each component critical to performing that mission, and how each of these components is interrelated. These components include: guiding principles, organization structure, business processes, people or stakeholders, applications, data, infrastructure, and other technologies.
10Business ModelA business model describes the rationale of how an organization creates, delivers, and captures value - economic, social, or other forms of value. The process of business model design is part of business strategy.In theory and practice the term business model is used for a broad range of informal and formal descriptions to represent core aspects of a business, including purpose, offerings, strategies, infrastructure, organizational structures, trading practices, and operational processes and policies.
11Business Model Management – Green BMM "Green" business model management (BMM) describes the process of development of how new and/or existing business models can adapt and realign to become more environmentally sustainable and socially responsible.Source:Scheel, H., von Rosing, M., SAP Sustainability, 2010
13Business Model Governance Business model governance is the set of purpose, offerings, strategies, infrastructure, organizational structures, trading practices, and operational processes and policies affecting the way a business model is directed, administered or controlled.Source: Applying Real-World BPM in an SAP Environment, 2010
14The SAP BPM Governance Framework Source: BPM Governance (Adapted from the book: Business Process Management – The SAP Roadmap, 2009)
15Business Process Management (BPM) Definition Business Process Management (BPM) is a management discipline that requires organizations to shift to process-centric thinking, and to reduce their reliance on traditional territorial and functional structures.BPM requires and enables organizations to manage the complete revision cycles of their processes, from process design to monitoring and optimization, and to change them more frequently to adjust to changing circumstances.The development of BPM technologies is enabling business managers to abstract process flows and rules from the underlying applications and infrastructure, and to change them directly.BPM is neither a technology nor an updated version of BPR. It is an IT-enabled management discipline. It represents a fundamental change in how business manage and run their processesSource: Adapted from the book: Business Process Management – The SAP Roadmap, 2009
16SAP Governance Modeling Activities in BPM Source: Applying Real-World BPM in an SAP Environment, 2010
17Governance: process parameters : http://wiki.sdn.sap.com/wiki/x/3wh8C Purpose & GoalWhy is the process performed?Ultimate reason for the existence of the processExample: Getting the right products to the right person at the right time based on existing ordersBusiness RulesWhich rules govern the business?Description of the operational characteristics of the businessExample: Prioritization guidelines, disturbances, decision processesKPIs/PPisHow is the process performance measured?Definition of measurable indicators to verify whether the process goals have been achievedExamples: # of created POs, process cycle timeObjectsWhich objects are used, modified, and produced?Processes result in the manipulation of physical or informational objects. The two most important objects are input and output.Examples: purchase order (PO), invoiceProcess OwnerWho is responsible for the process?Managers with end-to-end responsibility for individual processesProcessRolesWhich roles need to contribute to the process execution?Definition of all resources involved in performing the processExamples: hiring manager, recruiter, HR Business PartnerTechnologyWhat kind of technology enables the process execution?Systems, tools, and hardware usedExample: mySAP SRMMediaBy which media do processes interact?Means of communication usedExamples: paper, fax,Process FlowWhich processes precede and follow?Definition of process sequence and process interfaces, input and outputExample: receive PO, check availability, confirm delivery dateOrganizational UnitsWhich organizational units own the process execution?Processes are performed by one or more organizational units.Examples: Business department, HR, Controlling
18Process Phases / Portals of OPM 18Process Phases / Portals of OPMIntra CompanyProcess Monitoring /SAP Business Workflow& SAP Netweaver BIManagementPortalBalanced Scorecard1.Strategic-planningModelling As-Isand To-Be Status ARIS / SAP SolComp.5. Process-controlling2. Process-DesignEnterpriseArchitectPortalControllerPortal4.Process-execution3.Implemen-tationCustomer /Employee PortalIntra Company Process Integration /SAP Business Workflow /SAP NetWeaver BI /SAP SolManIntegration PortalIntra CompanyProcess Control /SAP Business WorkflowProcess Portals not active in this Presentation !
19The Process Maturity Journey Level 5Processes are continuously improvedLevel 4Level 3Processes are managedLevel 2Most Processes OrganizedLevel 1Some organized processesProcess MaturityNo organized processesTransformation NeedProcesses are improved at the work group or department levelProcesses are organized and redesigned at the enterprise levelProcesses are measured and managed systematicallyProcess Teams continuously improve processesA culture of heroesNew FunctionalityIT cost reduction and controlReduce time-to-marketDocumented processesBusiness responsivenessChange business process quickly and effectivelyTransformation from reactive to real-timeIncrease TransparencyBusiness optimizationIncrease decision qualityOptimization across boarders of Bus.& IT
20SAP Solution Manager supports 4 lifecycles Process LifecycleBPM MethodBPM TechnologyBusiness ModelProcess ModelPerformance ModelValue PlanningValue IdentificationApplication LifecycleImpl. MethodApllication ManagementService LifecyclePerformance MonitoringValue CreationProject LifecycleProject ManagmentPMI/ Prince 2PM ToolsPM of Value CreationValue LifecycleValue DiscoveryValue RealizationValue OptimizationTo Be DesignProcess OwnerProcess ArchitectBusiness ArchitectCIOEnterprise ArchitectApplication ConsultantProject ManagerProgram/Portfolio ManagerBusiness Unit OwnerBusiness ArchitectBusiness Analyst
21Link with SAP Solution Manager / Solution Composer Business ModelLevel 1Level 2Process Level 1Process Level 2Process Level 3Process Level 4SAP Solution ManagerSAP system
22Link between Business Model and SAP Solution Manager SAP SRMNetweawerSAP ERPSAP SCMSAP PLMSAP CRMScenarioProcessStep
23Business Model Management Definition The business model is simply a working description that includes the general details about theoperations of a business. As part of the business model, there is a need to address internal factorsthat relate to the ongoing operation of the company. The competencies that are contained within thebusiness model will address functions, purpose, offerings and services, including such factors as:Corporate structure, infrastructure & responsibleThe main business goals, e.g. strategic business objectives, critical success factors andkey performance indicatorsBusiness Issues/pain pointsCore and None coreValue creation and realizationFinancial indicators: Revenues and CostWorking with once business model helps a company to maintain focus on a core competitivenessand core differentiation, while keeping a comparative advantage with the none core competencies.Periodic reviews and updates help to keep the business model relevant to current competition,market changes, economic conditions and consumer demands. Generally speaking, the most thathas to do with the strategic decisions and operation of the corporation can be said to be part ofbusiness model management.Source: Applying Real-World BPM in an SAP Environment, 2010
24Performance Measurements in connection with BMM & BPM
25Performance Measurements in connection with BMM & BPM
26Prerequisites for Process Performance Measurement Determining Process Performance Process Performance can only be measured if appropriate Performance Indicators are identifiedPrerequisites for Process Performance MeasurementClarify process scope (e.g. define start- and end-point of all involved processes, interfaces to other processes / work-streams)Identify and define adequate Process Performance Indicators (PPIs)Determine to-be values of PPIs, consider benchmarks as far as possibleEvaluate measurement of as-is values of PPIs (e.g. read timestamps in systems)Record cycle time of all involved sub-processes (complete coverage of process chain)Process Performance DimensionsTimeQualityCostsHow can the end-to-end cycle time be measured?Are process interfaces aligned?What is the to-be cycle time? Are there any benchmarks /best-in-class values?How is the process quality measured?Which quality is aimed for?How can costs be allocated directly or indirectly to the process (labor costs, costs for infrastructure,…)QualityTRADE-OFF !VolumeEfficiencyVolumeEfficiencyWhich volume does the process need to handle? (e.g. # of orders)Are these items counted?How can process efficiency be measured (e.g. conversion ratios)?Which efficiency is aimed for?CostsTime