INTRODUCTION Pertemuan 1

2. INTRODUCTIONPertemuan 1 Matakuliah : M0734-Business Process Reenginering Tahun : 2010

3. What is BPM ? More than just technology Improving or reengineering your processes and dealing with managerial and organizational issues Not just hype – it is an integral part of management Modeling + implementation + execution + monitoring What is Business Process Management ? “The achievement of an organization’s objectives through the improvement, management and control of essential business processes” (Jeston and Nellis, 2006) 3

4. Black Box Syndrome Looking at the Edges Syndrome Improving Processes before Automating Them The first rule of any technology is that automation applied to an efficient operation will magnify the efficiency.. The second is that automation applied to an inefficient operation will magnify the inefficiency. (Bill Gates, Microsoft Corporation) • Executives see their processes as a ‘black box’. They don’t know the details, but somehow the processes produce outcome. • The processes and associated people are treated like sacred objects : executives cannot or do not want to discuss the efficiency and effectiveness or ask the tough questions. “If business process inefficiencies could be easily solved by automating them, why are consultants often called in after an organization has purchased an expensive automated workflow solution that has failed to ‘solve’ the problem?” “Why do automated solutions fail to deliver their expected business benefits?” 4

5. Main Drivers and Triggers behind BPM Initiatives 5

6. Who Should be Involved in BPM ? Integral Management Business Process Improvement Management • BPM Project Manager • BPM Program Manager • Center of BP Excellence Manager • Chief Process Officer External BPM Experts • Set-up project, program and Center of BP Excellence • Monitor progress of project, program or Center of BP Excellence • Monitor performance and identifying areas of improvements • Conflict resolution and project/program revival • Support for management, act as consultant or right-hand advisor • Evaluating (and auditing) projects and programs 6

7. BPM Critical Success Factors Leadership BPM Experienced Project Manager Alignment with Organization Strategy Process Foundation Technology Foundation Structured Approach to BPM Implementation People Change Management People and Empowerment Project Initiation, Execution and Completion Continuous Improvement Benefit Realization 7

8. BPM Critical Implementation Aspects Regatta of Sogeti, The Netherlands, Metaphor Speed Efficiency Balance Cohesion Process Management “Speed (effectiveness) and efficiency through balance and cohesion” 8

9. The BPM Implementation Framework – an Overview Using the BPM Implementation Framework 9

10. BPM Project Success Pillars 10

11. BPM Implementation Framework BPM Implementation Framework • Organization Foundation • Process Foundation • Technology Foundation • BPM Foundation • Elaboration • Improvement • People and Technology Development • Deployment • Monitor and Benefit Realization • Continuous Improvement 11

12. Process Centric Organization 12

13. BPM Project Initiation Approaches Strategy-driven Approach Operational-initiative Approach 13

14. BPM Project Implementation Scenarios : Under the Radar Pilot Project In the Driver’s Seat Business As Usual • This occurs in the least BPM-mature organization, and is where there is a partially informed business manager who is not yet committed and is not paying much (or any) attention to BPM within the organization. This scenario could be a project under the guise of process improvement, and BPM may not be mentioned at all. • This is where there is a fully informed business manager who has yet to be totally convinced of the benefits of BPM and is willing to try it out on a small scale to start with before making a full commitment. • This is the next level of organization BPM maturity, and is where there is a fully informed business manager who is totally committed to the implementation of BPM within the organization or business unit he or she is responsible for. • This will be selected by the most BPM-mature organization. The organization and business managers will be totally committed to a process-centric organization, and BPM projects are simply business-as-usual activities or projects. 14

15. BPM Project Implementation Scenarios Selecting BPM Project Implementation Scenarios 15

16. BPM Project Implementation Scenarios Characteristics BPM Project Implementation Scenarios 16

17. BPM Implementation Framework- a Detailed Look BPM Implementation Framework Organization Foundation Process Foundation Technology Foundation BPM Foundation Elaboration Improvement People and Technology Development Deployment Monitor and Benefit Realization Continuous Improvement 17

18. Organization Foundation Phase Organization Foundation Phase : Why ? How ? Outputs Risks 18

19. Why ? Setting up proper foundation for the understanding of the organization strategy, vision, strategic goals, business and drivers by the project team members Organization Foundation will provide the following attributes : Information Decision P R O C E S S Organization Foundation Direction – an understanding over the overall organization direction so the project’s trajectory can be aligned with it Discovery – motivational driver in discovering better and more efficient way for the processes in the future Destiny – sense of belonging, emotional edge to the organization strategy 19

20. How ? 20

21. Step 1 : Internal and External Aspects of the Organization Internal aspects of the organization External aspects of the organization Strengths Competition Weaknesses Competencies Environmental Impacts Constraints 21

22. Step 2 : Strategic Objectives Key Questions to ask : What ? • Vision : what does the organization strive to ‘be’? • Mission : what is the organization in business to ‘do’? • Goals : what does the organization plan to accomplish? • Objectives : what results does the organization plan to deliver? How ? • Strategic intent : how are we going to achieve the goals and objectives? • Implementation strategy : what methods or approaches are used to reach the • Goals and performance targets? 22

23. Step 3 : Impacts on Processes How the organization strategy impacts business processes? Strategic Choice : • Operational Excellence • Customer Intimacy • Product Leader 23

24. Step 4 : Strategic Measurements Measure and monitor the progress of the strategy execution Provide, from middle management downwards, more specific and personal objectives Evaluate initiatives and projects by their contribution to these strategic measures Balanced Score Card • The financial perspective (objectives, measures, targets, initiatives) • The customer perspective (objectives, measures, targets, initiatives) • The business process perspective (objectives, measures, targets, initiatives) • The learning and growth perspective (objectives, measures, targets, initiatives) 24

25. Step 5 : Complete the Plan “10 percent increase of turnover” Organization Objectives Organization Values “the organization follows an Operational Excellence Strategy” (this will be taken into consideration while evaluating existing processes and (re)designing new processes) “the customer has a single point of contact for all his or her questions” (all processes will be described as end-to-end processes) 25

26. Step 6 : Communicate Obtain Sign-Off Commitment from Key Stakeholders Proper Change Management Approach to changes to the organization foundation Communicate Organization Strategy and how it impacts the business processes 26

27. Outputs • Organization’s Vision and Mission • Organization’s Goals, Strategic Intent and Objectives • Organization’s Implementation Strategy • Business Model Context, including • Customers (type and volume of customers) • Services/products • Suppliers/partners • Key differentiators • Resources • Key differentiators of the organization 27

28. Risks 28