2. The Development of BPR Pertemuan 7 Matakuliah: M0734-Business Process Reenginering Tahun: 2010

3. The Development of BPR 3

4. People and Technology Development Phase People and Technology Development Phase :  Why ?  What ?  How ?  Outputs  Risks 4

5. Why ? 5 At the end of the day, it is people that will make processes function effectively and efficiently, no matter how much they are automated. If you do not get the people ‘on board’ with the project and new processes, then they will find a way to ensure that the processes either do not work, or do not work efficiently To develop and implement an Automated BPM Solution that provide sufficient flexibility to meet business changes and cater for the frequent changes of the business processes People Development Phase Technology Development Phase People and Technology Development Phase addresses different aspects of the solution development, and they need to be executed in parallel

6. People Development What ? 6 Processes StructurePeople Get the processes efficient and effective and adding value to the organization strategy Get the roles and structure right, or as close to right as you can, to support the new processes Only after the processes and structure steps have been addressed and implemented can you evaluate their performance … if you put a good performance against a bad system, the system will win almost every time (Keen, 1997 : 65) Even if the organization has their structure optimized, people are the ones who execute the processes and make things happen. Without them, you have nothing.

7. Technology Development What ? 7 Integration of internal systems (business apps) Automation of business processes Collaboration with external entities Smith and Fingar, 2002

8. How ? 8

9. Step 1 : Communications Keep people involved and informed 9 Expect the following questions: What is proposed? How will it be completed? How will it affect me? What input will I have into the outcomes? What if I do not like the outcomes? Will I keep my job with the new technology in place? What new skills will I need to adapt with the new technology? How will my job change with the new technology?

10. People Development – Step 2.1, 3.1, 4.1 : People Strategy, Activity Definition, and Role Redesign People Strategy 10 Activity Definition Coordination with HR, Worker Union, Management to get approvals and buy- in from the organization members Role Redesign Based on the tasks created/re-designed during Improvement phase Activity is further broken-down into individual tasks performed by individual roles within the organization Grouping of activities into generic roles Maybe iterative process as feedback and discussions will affect the grouping After roles have been defined, role definitions can be produced :

11. People Development – Step 2.1, 3.1, 4.1 : People Strategy, Activity Definition, and Role Redesign 11 RASCI model : Responsible – Own the activity Accountable – Approves the activity Support – Can provide resources and information to support the activity Consult – Has information required to complete the activity Inform – Must be notified of the activity and its result, but need not be consulted Activity and role measurements Generic Role description Generic description Performance measurements

12. People Development – Step 2.1, 3.1, 4.1 : People Strategy, Activity Definition, and Role Redesign RASCI model

13. People Development – Step 5.1 : Performance Management and Measurements 13 Start with a few measures and keep it simple, use Capacity Planning from Elaboration Phase as reference so performance targets can be kept realistic After roles and activities have been designed, set performance measures Make sure people understand their roles and rationale behind performance measurements Management needs to listen to process executors for suggestions for process improvements Use performance measurements as a means of coaching and enhancing performance, improving the decision-making ability, of management and the people It’s appropriate for management to say ‘no’ to suggestions, but make sure the people understand why the answer is ‘no’ “since people don’t do what you expect but what you inspect … you need to create a way to measure results” Louis Gerstner, 2002

14. People Development – Step 5.1 : Performance Management and Measurements 14 (reproduced with the permission of MPM Group Pty Ltd, trading as TouchPoint Process Management Services) Pyramid of Performance TargetsSample throughput and service targets

15. People Development – Step 6.1 : People Core Capability Gap Analysis Update and Finalize People Capability Matrix 15 Analyze the Gap between current capability and expected capability The gap can be closed by training or providing on- the-job coaching and providing sufficient time to allow for attitudes and behavior changes

16. People Development – Step 6.1 : People Core Capability Gap Analysis 16 Process Performance Report (reproduced with the permission of MPM Group Pty Ltd, trading as TouchPoint Process Management Services)

17. People Development – Step 7.1 : Organizational Structure Organization Structure needs to ensure that : 17 The Organizational Chart should : The proposed new structure is designed to support the organization strategy and process goals; Process gaps between departments are minimized There is no one right solution for an organization’s structure; it will depend upon the requirements and circumstances of each organization Minimize departmental interfaces Maximize process effectiveness and efficiency Minimize the layers of management Most importantly, maximize clarity

18. Technology Development – Step 2.2 : Business Process Orchestration Adopt the selected standard and model the business process using selected BPM Solution in Technology Foundation Phase 18 BPMN (Business Process Management Notation) This is notation standard (i.e. a set of icons and graphics) for modeling business processes XPDL This is a business process definition language that describes an entire process, and can be used to integrate BPM components for process modeling, execution and control BPEL (Business Process Execution Language) This is currently the main execution language that orchestrates business processes using web services, and allows various BPM applications to be linked and integrated Presentation Layer of the solution to the user Processing Layer containing manual and automated tasks Integration Layer to other systems and databases containing the data Develop/Configure BPM Solution Orchestration Components :

19. Technology Development – Step 3.2 : Integration with Business Applications Refer to Service Registry, Canonical Data Model and Service Portfolio from Technology Foundation Phase 19 Externalize/Service Enable Business Application Build necessary data conversion and mapping routines to connect Business Application Data with the Canonical Data Model Connect the externalized service into Enterprise Service Bus Integrate and establish Business Rules Framework Register the service with the Service Registry Invoke the service within the Business Process orchestration Maintained and monitored Service Level Agreements from each Business Application Service network and service dependencies Proper management of service registries SOA Governance

20. Technology Development – Step 4.2 : Develop Presentation Layer of the Solution Familiar UI – is it a view that end-users are familiar with, and does it have a logical look and feel (i.e. is it similar to existing/other systems or does it have a logical flow of the screens)? 20 Must have Should have if at all possible Could have this if it does not affect anything else Won’t have (in this release), but would like to have it later Breakdown development priorities using MoSCoW approach from DSDM (Dynamic Systems Development Method) Technology and framework – used when developing presentation layer, e.g. Enterprise Portal, Web 2.0, MVC Framework Role centric UI – different types of users will have different needs and ways of interacting with the systems (for example, employees, controllers, managers, etc.)

21. Technology Development – Step 5.2 : Solution Testing Unit test Verifies a particular activity or step of the automated BPM solution meets the requirements established in the design specifications 21 Simulates the operational environment to the greatest possible extent Verifies the automated BPM solution meets the functional and quality requirement as specified in the functional requirements Integration test System test Functional Acceptance Test User Acceptance Test (UAT) Verifies automated BPM solution meets the business requirements Regression test Checks all part of the system still function correctly after the implementation or modification of an automated BPM solution Verifies a function or an aspect of the automated BPM solution meet the requirements established in the design specifications Verifies the automated BPM solution or its components meets the requirement established in the functional and quality specifications

22. Technology Development – Step 5.2 : Solution Testing 22 Determine test objectives Determine and write test strategy Write a test plan Review the test results and decide on how to proceed Write and keep various test cases for regression testing Execute the testing

23. People and Technology Development – Step 8.1, 6.2 : Develop Training A training needs analysis A training media analysis A training material development Just-in-time training vehicles – it is no use training people well ahead of time and then having them forget the lessons learned Training Analysis By professional trainers? By trained ‘super’ users Via a pilot(s) training session Project team? HR and training department? Process staff representatives (those who execute the processes)? Management? 23 How is the training to be delivered? Who should be involved in developing the training? What format should be used? Classroom? On-line computer-based self-study? On-the-job training? Paper-based self-study?

24. Outputs  Dissection and Amalgamation of new processes into activities  Redesigned role descriptions and goals  Performance management and measures for appropriate roles  A plan and set of tasks to enable the organization to ‘transform’ from where it currently is to where it needs to be  A new process-based organization structure 24  A high-level overview of the solution  Detailed business requirements  Business Application Connectivity Documentation  Service Portfolio  Software Specification and Design  Software Development and Configuration  Software test scripts and results  Integration test scripts and results

25. People Development – Risks RisksMitigation Strategy Lack of CommunicationCommunication falls into the responsibility of the project manager, seek assistance from HR if necessary Judging performance before process and structural issues have been addressed Define process, new roles, understand and update people capacity matrix, provide appropriate and targeted and create performance measures and implement them before evaluating people Capacity Planning is not complete Include it into project plan and convince stakeholders and management of its importance Performance targets are not realistic, understaffed Refer to Capacity Planning for this information People are not consulted or engaged in performance measurement establishment Make sure to include people in establishing performance measurement, otherwise they may refuse to accept the changes and use them HR is not engagedHR must be engaged from the beginning. Allocate responsibility to make sure of it, provide as much as possible to HR of their required time involvement 25

26. Technology Development – Risks RisksMitigation Strategy Developed solution does not meet business requirement Ensure that the stakeholders are involved throughout the project and that they fully understand all the decisions made and the consequences, and work on the basis of the agreed process architecture and business case Some application work, however, the overall solution does not work There may be failed interfaces or connectivity. Make sure all interfaces and interoperability are thoroughly tested Testing finds too many errorsEnsure that the requirements (functional and technical design) are explicit and clear enough to be used as bases for the development, as well as preparing the test script 26