Introduction to Business Process Management (BPM) Session 1

1. Introduction to Business Process Management (BPM)Session 1 Ann Rosenberg February 2nd 2012

2. Agenda • Introduction to Business Process Management part 1 • Introduction participants • Overview of all the sessions • Literature which will be used • Execises • Final assignment and exam • Introduction to Business Process Management part 2 • Business Process Management • Exercise • Next time: Processes/ IT and the Process/ IT Evolution

3. Agenda • Introduction to Business Process Management part 1 • Introduction participants • Overview of all the sessions • Literature which will be used • Execises • Final assignment and exam • Introduction to Business Process Management part 2 • Business Process Management • Exercise • Next time: Processes/ IT and the Process/ IT Evolution

4. Introduction - Participants Motivation for selecting BPM BPM definition Who are you

5. Agenda • Introduction to Business Process Management part 1 • Introduction participants • Overview of all the sessions • Literature which will be used • Execises • Final assignment and exam • Introduction to Business Process Management part 2 • Business Process Management • Exercise • Next time: Processes/ IT and the Process/ IT Evolution

6. Overview of all sessions

7. http://www.itu.dk/courses/MBPM/F2012/

8. Schedule/ material use in sessions

9. Literature

10. Agenda • Introduction to Business Process Management part 1 • Introduction participants • Overview of all the sessions • Literature which will be used • Execises • Final assignment and exam • Introduction to Business Process Management part 2 • Business Process Management • Exercise • Next time: Processes/ IT and the Process/ IT Evolution

11. Literature which will be used BPM Compendium Book and BPM Compendium is ready at at  Academic Books

12. BPM Compendium 1/2 • R.S. Kaplan and D.P. Norton “Integrating Strategy Planning and Operational Executive: A Six-Stage System, “Balanced Scorecard Report, May – June 2008. • Michael Hammer “Process Audit” Publication date: Apr. 01, 2007, Harvard Business Review • R.S. Kaplan and D.P. Norton “The Starting Point for Strategy Execution”, Harvard Business Review • R.S. Kaplan and D.P. Norton “A Platform for Strategy Management”, Harvard Business Review • R.S. Kaplan and D.P. Norton “The Office of Strategy Management—The State of the Art, 2011”, Harvard Business Review • R.S. Kaplan and D.P. Norton “Mastering the Management System”, Harvard Business Review • Michael E. Porter "What Is Strategy?" , Published November 1996, Harvard Business review. • D.P. Norton and Randall H. Russel “Linking Strategy to Operations: Process Models and Innovation” Publication date: Jul 15, 2009, Harvard Business Review and IT Infrastructure” Publication date: Sep 15, 2009, Harvard Business Review • D.P. Norton and Randall H. Russel “Linking Strategy to Operations: Part 2-Theme Teams and IT Infrastructure” Publication date: Sep 15, 2009, Harvard Business Review

13. BPM Compendium 2/2 • Major issues in Business Process Management • D.P. Norton and Randall H. Russel “Linking Strategy to Operations for Competitive Advantage”, Harvard Business Review • Clayton M. Christensen and Michael Overdorf “ Meeting the Challenge of Disruptive Change” Published in March 2000, Harvard Business Review • Rosabeth Moss Kanter ”Innovation - The Classic Traps.” Published in November 2006, , Harvard Business Review • John P. Kotter “Why Transformation Efforts Fail” Published March 1995, Harvard Business Review • Fraser Johnson “Six Sigma Implementation at Maple Leaf Foods” Publication date: Jan • Bradley R. Staats, David M. Upton “Lean Knowledge Work Lean” Publication date: Oct 01, 2011, Harvard Business Review • Gregory S. Babe “The CEO of Bayer Corp. on Creating a Lean Growth Machine” Publication date: Jul 01, 2011, Harvard Business Review

14. Agenda • Introduction to Business Process Management part 1 • Introduction participants • Overview of all the sessions • Literature which will be used • Execises • Final assignment and exam • Introduction to Business Process Management part 2 • Business Process Management • Exercise • Next time: Processes/ IT and the Process/ IT Evolution

15. Execises (Class room and final assignment) Students own company Case ” Global Bike Inc” For class room exercises to train the different models and frameworks Different Cases will be used „hand-outs“ Input to you final assignment

16. Agenda • Introduction to Business Process Management part 1 • Introduction participants • Overview of all the sessions • Literature which will be used • Execises • Final assignment and exam • Introduction to Business Process Management part 2 • Business Process Management • Exercise • Next time: Processes/ IT and the Process/ IT Evolution

17. Final assignment and exam 7,5 ECTS report standard page span: 15 pages + 2 additional pages per group member (also counting the first member) Example: In a 7,5 ECTS report with 2 group members, 15 + (2 x 2) = 19 pages is the standard page span. If one person wrote this report alone, the upper limit would be 17 pages. A +/- 10% margin is considered within the normal range. Eksempler på 2 forskellige opgavetyper Vejledning i specialeskrivning Gode råd fra en tidligere studerende på studiet Hand in Exam Paper May 23rd 2012 Exam June 21st and 22nd 2012

18. Gode råd fra en tidligere studerende på studiet • Gør et grundigt forarbejde inden problemformuleringen • Lav tidsplan, som revideres løbende • Diskutér problemformuleringen med vejleder, kolleger, medstuderende etc. • Vær kritisk med valget af modeller og metoder (konkretisér muligheder, begrænsninger) • Start i god tid - nedbryd opgaven - arbejd lidt hele tiden! • Hav hele tiden "den røde tråd" for øje. Vend tilbage til problemformulering og model­valg • Klargør argumenter, konsekvenser og konklusioner • Adskil skarpt mellem data, analyse og tolkning • Sæt god tid af til redigering

19. Vejledning i specialeskrivning • Problemformulering: En problemformulering til speciale vil normalt være på 1-2 sider med en præcisering af problemstillingen, hvilke emner skal analyseres i.f.t. problemformuleringen, hvilke spørgsmål skal besvares/diskuteres, hvilke ledelses- og styringsteorier og modeller kommer til behandling ... konklusion: hvad går det her ud på, hvordan har jeg tænkt mig at gribe det an, hvad skulle det gerne ende med! • Modelanvendelse er det væsentligste. Modeller kan anvendes til mange ting i en opgave. De kan strukturere opgaven, anvendes til problemanalyse og løsningsopstilling, problem-formulering, erkendelse, analyse, vurdering af resultater/løsninger, argumenter, resultatkritik og perspektivering. • Analysen: Et problembeskrivende speciale vil normalt ikke være tilstrækkelig, f.eks. en beskrivelse af en given virksomheds problemer. Analyse og anvisning af løsninger eller løsnings­skitser til beskrevne problemer vil som hovedregel udgøre de centrale elementer i et speciale. • Konklusionen: Konklusionen bør svare på de spørgsmål der rejses i problemformuleringen - evt. ved opsamling af delkonklusioner og/eller sammenstilling/debat af delkonklusioners gensi­dige samspil/modspil. •  Executive Summary: Executive summary er et referat til “ledelsen”, hvori de væsentligste forhold i opgaven præsenteres: Hvad er problemstillingen? Hvad er analyseret? Hvad siger konklusionerne? Hvad betyder det for virksomheden/ledelsen (eller andre problemejere)? • Struktur: Der bør i opgaven være en rimelig balance mellem beskrivelse af forudsætninger, analyse, tolkning og løsningsgenerering. Bemærk dog: Der findes flere opgavetyper. Der skal des­uden være en "rød tråd" mellem problem, modelvalg, analyse og konklusioner •  Målgruppen: Målgruppen for specialet skal angives

20. Vejledning i specialeskrivning • Valg af virksomhed: • Det mest almindelige er at skrive i og om egen organisation, simpelthen fordi det er lettest at skaffe adgang til denne, men derfor er det ikke nødvendigvis den bedste løsning. Problemerne kan bestå i indforståethed, tagen for givet, blinde pletter, mangel på kritik, bestillingsopgaver, pleasing, mv. Disse problemer er langt mindre når man skriver i og om andre organisationer, hvor det så til gengæld kan være sværere at skaffe sig adgang. • Modelvalg og modelanvendelse: • Specialet må ikke være teoriløst. Det forventes, at der argumenteres for, vælges og anvendes teoretiske modeller. Disse kan være indenfor såvel som uden­for pensum. Ekstra teori og litteratursøgning ved hjælp af informationsteknologi på biblioteket kan hæve niveauet - og bør altid foretages som et check af mulige andre kilder. Modelvalget skal være: relevant, begrundet, målrettet og afbalanceret.

21. Eksempler på 2 forskellige opgavetyper • Den teoretisk funderede konsulentrapport • Hovedvægt: Modelanvendelse, analyse, hypotesetest, forklarende og/eller løsnings- orienteret • Krav: Sammenhæng mellem teori og caseanalyse og/eller løsningsopstilling • Indhold: Problem- og modelbaserede analyser og løsninger • Empiri: Udgangspunkt i enten empiriske problemer eller analyse af empiri ved hjælp af teori/modeller • Den teoretiske opgave • Hovedvægt: Modelvurdering ud fra teoretiske kriterier • Krav: Teoretisk dybde • Indhold: Teorier diskuteres og vurderes i forhold til hinanden og i forhold til meta- teori • Empiri: Eksemplificering

22. Assignments examples from fall 2011

23. Agenda • Introduction to Business Process Management part 1 • Introduction participants • Overview of all the sessions • Literature which will be used • Execises • Final assignment and exam • Introduction to Business Process Management part 2 • Business Process Management • Exercise • Next time: Processes/ IT and the Process/ IT Evolution

24. What initiate BPM BPM Today

25. What initiate BPM BPM Today What have initiated BPM • Burning Platforms • Continuous Process Improvement (efficiency) • Operation Excellence • Change the IT based implementations to process based implementations • Process optimization • BPM Tomorrow What will/ are today initiating BPM • Compelling Opportunity • Game Changer • Linking the Strategy Model to the Operation Model • Business Transformation • Link between Strategic Business Objectives, Transformation KPIs and ployees PBOs • Process Innovation

26. Business Process ManagementToday Process orchestration by leveraging process based pre-built assets SKILLS & MINDSET Six Sigma, Lean, BPR…… BPM METHODOLOGY & GOVENANCE ARIS, PowerDesigner, Netweaver BPM….. BPM TOOLS APQC, VCG, eTOM, SCOR PROCESS BASED IMPLEMENTATION CONTENT Content TRAINING/ EDUCATION SAP Modelling Handbook External BPM Webinars http://www.sdn.sap.com/irj/bpx/starterkitforbpm http://www.sdn.sap.com/irj/sdn/soa-kit http://www.sdn.sap.com/irj/sdn http://www.sdn.sap.com/irj/bpx http://ecohub.sdn.sap.com/ http://www.sdn.sap.com/irj/uac COMMUNITY AND ENABLEMENT

27. BPM tools facilitate the Process Management LifecycleBPM Today

28. Governancethrough the lifecyclesBPM Today

29. McFarlan’s strategic grid http://visual.placodermi.org/2009/01/14/toolkit-mcfarlans-strategic-grid/

30. What initiate BPM BPM Today What has initiated BPM • Burning platforms • Continuous process improvement (efficiency) • Operation excellence • Change the IT based implementations to process based implementations • Process optimization • BPM Tomorrow What will/ are today initiating BPM • Compelling opportunity • Game changer • Linking the strategy to the operational model • Business transformation • Link between strategic business objectives, transformation KPIs and employees PBOs • Process innovation • Use BPM to implement sustainability

31. What initiate BPM BPM Tomorrow

32. Business Process Mangement (Conceptual) Big Picture

33. Linking the Strategy Model to the Operation Model Source: Linking Strategy to Operations: Process Models and Innovation by David P. Norton and Randall H. Russell

34. Linking the Strategy Model to the Operation Model Source: Linking Strategy to Operations: Process Models and Innovation by David P. Norton and Randall H. Russell

35. What is innovation ? • http://www.wimp.com/innovationfinest/

36. Business Model Building BlocksWhich is the building block where you see more potential for generating innovative ideas? • Customer Segments • Value Propositions • Channels • Customer Relationships • Revenue Streams • Key Resources • Key Activities • Key Partnerships • Cost Structure 7 4 1 6 2 8 3 9 5

37. The Business Model Canvas

38. Skype 2003 Business model: gain customer base

39. 2004 – 2010: Freemium Model & Partnerships

40. 2011 – Freemium, B2B, HW Partners, acquisition by MSFT • Skype Facts: • 13 % of all international calls • Valuation 8.5B USD • Investment 2.5B USD • 100 Million active User per month

41. Blue Ocean Strategy : Overview Click image to access Blue Ocean synopsis on YouTube

42. Blue Ocean Strategy : Overview

43. Business Process Management covers both automated and manual perspective Manual Activities End to End process spans manual and automated activities Typically >80% Automated Activities Typically <20% Of the 20% of the Automated Activities Typically <20% Processes that deliver competitive advantage and evolve regularly (SOA , mobility etc. candidates) Differencing Activities Typically >80% Standard Activities Processes that should be as cost effective as possible (SAP Best Practice candidates)

44. The 4 lifecycles To BeDesign Process Owner Process Architect Business Architect CIO Enterprise Architect Application Consultant Project Manager Program/Portfolio Manager Business Unit Owner Business Architect Business Analyst Process Management Performance Management Value Management Process/Performance Gov. IT Gov. Project/Program Gov. Business Governance

45. Business Process Mangement (Conceptual) Big Picture

46. Hvem driver og hvordan drives teknologiudvikling i forretningen? • Forretningsdrevet IT er i denne kontekst ikke ment som de vise sten for informationssystemudvikling. Der eksisterer andre modeller for at drive udvikling af informationssystemer frem til at blive anvendelige og accepteret af såvel virksomhedsledelsen som af medarbejdere. • Grunden til at belyse denne fremgangsmåde skyldes i høj grad behovet for, at virksomheders interne processer, der allerede eksisterer eller der skal sættes strøm til, bliver gennemført i en konstruktiv dialog mellem forretning og IT. • Som en modsætning til forretningsdrevet IT kan man pege på teknologidrevet IT. I 1990’erne satte IT ofte rammerne for hvad der skulle udvikles, og ikke mindst hvordan informationssystemer skulle udvikles. Groft sagt vidste IT godt hvad forretningen havde behov for, hvorfor datalogen hurtigt og enkelt omsatte forretningen til stringente IT-processer. Mange af disse teknologidrevne systemer viste sig at være svære at implementere. Et var at forandringsledelsesværktøjerne ikke var tilstrækkeligt modnet, et andet og mere alvorligt aspekt var at forretningen ikke var inddraget nær nok i transformationen fra foranalyse til implementering og ibrugtagelse.

47. Andre måder at drive udvikling på • Et andet perspektiv og et kort eksempel på en anden måde at drive udvikling af softwaresystemer på kan være Design-Driven Innovation, som handler om udvikling ud fra designerens forslag (proposal) og på ingen måde direkte ud fra kundeanalyser og forretningsbehov. Tankegangen er mere revolutionær, idet man tænker sig til de behov, morgendagens kunde kunne tænke sig. Apple med Steve Jobs i spidsen er en blandt flere virksomheder, der gør det. Et andet eksempel er Nintendo med WII. Design-Driven Innovation har brug for interpreters, dvs. formidlere af morgendagens teknologi eksempelvis journalister fra magasiner o. lign., dvs. personer der er på forkant med UI (User Interface), Usability og teknologiudvikling. Design-Driven Innovatører tager et bredere og længere perspektiv, end hvad forretningsdrevet IT og kundeanalyser kan. De undersøger kontekst for kunders liv, og hvordan deres liv udvikler sig dels i sociokulturelle termer dels i tekniske termer (Verganti, 2009). Denne opgave omhandler dog alene forretningsdrevet IT, herefter uden videre skelen til andre måder at drive nye systemer på.

49. Trends CxOs will give renewed priority to business transformation programs Responsibility for enterprise applications will shift to the business Enterprise will cautiously but steadily embrace cloud applications Business Process Professional will slowly but steadily begin to focus on sustainability Enterprises will race to embrace mobility to empower business people Process disciplines will adopt new approaches and frameworks Source: The Top 10 Business, Proccess, and Technology Trends Impacting Business Process Pros in 2011, April 12, 2011

50. Exercise