Processer og deres Evolution Session 2

1. Processer og deres EvolutionSession 2

2. Session

3. Purpose of the session I denne session vil vi gennemgå hvad en process er og den historiske udvikling der er sket indenfor process management. Vi vil genemgå nogle af de mest klassiske process management frameworks såsom Total Quality Management (TQM), Lean Manufacturing, Sig Sigma, Business Process Reengineering (BPR), Business Process Engineering(BPE) mv. Sessionen vil illustrarer hvor, hvordan og hvorfor denne udvikling har været nødvending. Den studerende vil lære at skelde mellem de forskelling process management frameworks inklusive hvorfor denne udvikling er fundet sted og dernæst hvordan man definerer og arbejder med processer inklusive de parameter der understøtter en process. I sessionen vil vi ligeledes se på nogle af de forskellige process modeling værktøjer som anvendes i dag og hvorfor der er en stigende brug af disse værktøjer (Business to model and modeling to execution).

4. Exercise For den udleveret virksomhedscase eller en egen tilvalgt process definere processen ved anvendelse af et RACI framework inklusive process parameterne. Der vil være mulighed for at modelere processen i i ARIS Express http://www.ariscommunity.com/aris-express

5. Agenda • The Evolution of Process Management • The Evolution of Enterprise Systems • Process, process parameters including modeling conventions • 2 cases • Raci framework • BPM technology (business to model and modeling to execution) • Exercise • Session 3

6. The Evolution of Process Management

7. The Evolution of Process Management Evolution (Quality) BusinessProcessManagement Business ProcessRe-engineering LeanManufacturing Total QualityManagement Six-sigma Toyota ProductionSystem IndustrialEngineering Evolution (Time) Source: The Evolution of Process Management (Adapted from the book: Business Process Management – The SAP Roadmap, 2009)

8. Toyota Production System • von Rosing M, Rosenberg, A., Dec 2009_Procesarbejde i et historisk

9. von Rosing M, Rosenberg, A., Dec 2009_Procesarbejde i et historisk

10. LEAN Somsådanerfilosofien den samme bag både TPS og lean, nemligreducerespildfraprocesser for at mindske total lead-time. I Lean Thinking havde forfatterne taget de 14 principper fra TPS og kogt ned til fem generelle principper der kunne benyttes på tværs af industrier. Dissefem principperer, 1) Identificerkundeværdi 2) Skabværdistrømme 3) Skab flow uden stop 4) Indførnyestyringsprincipper 5) Lavkaizen(japansk for forbedring) hver dag • von Rosing M, Rosenberg, A., Dec 2009_Procesarbejde i et historisk

11. LEAN • von Rosing M, Rosenberg, A., Dec 2009_Procesarbejde i et historisk

12. LEAN • von Rosing M, Rosenberg, A., Dec 2009_Procesarbejde i et historisk

13. Sig Sigma • von Rosing M, Rosenberg, A., Dec 2009_Procesarbejde i et historisk

14. Six Sigma • von Rosing M, Rosenberg, A., Dec 2009_Procesarbejde i et historisk

15. von Rosing M, Rosenberg, A., Dec 2009_Procesarbejde i et historisk

16. von Rosing M, Rosenberg, A., Dec 2009_Procesarbejde i et historisk

17. BPR • von Rosing M, Rosenberg, A., Dec 2009_Procesarbejde i et historisk

18. BPR • von Rosing M, Rosenberg, A., Dec 2009_Procesarbejde i et historisk

19. The Evolution of Enterprise Systems

20. The Evolution of ArchitectureWhy do we need a new implementation approach Architecture Maturity Have Change To Business Modularity and Dynamic Venturing Source: Ross et. al, 2006

21. Mainframe Client-Server Internet SaaSCloud Changing Business Needs drive IT ArchitectureEvolution of Enterprise Systems EAI SCM Model Simulate Deploy Discover Deploy Discover Model Simulate Execute Monitor Execute Monitor Purchasing Sales SRM CRM ProcessModels ProcessModels ITArchitecture ERP Database B2B B2C PLM CPM Manu-facturing Finance HRM Heterogeneous Landscape (SAP, non SAP) Semantic Integration B2E OnPremise On Demand Applicationlifecycle On Device Database-centric EAI-centric SOA-centric Orchestrated Business Agility Business Needs Operational Excellence OngoingTransformation of Processes and Business Networks Global Rollouts &Integration of Business Partners Integration ofCore Processes Source:: Møller (2008)

22. Timeless Software

23. Processes remain the Linchpin of Biz/IT Alignment Why do we need a new implementation approach Value Chains • Business Domain • Vision, Strategy • Business Model • Value Chains Procure to Pay Plan to Fulfill Order to Cash Budget to Report Hire to Retire Processes are the linchpin between your Value Chain and our Solution World Technology Domain • Solutions • Applications • Technology Components BI Business Suiteapplications Technology Components SaaS ByD … Third Party Information Technology

24. Process, process parameters including modeling conventions

25. The Process Lifecycle

26. Event 1 Entity Application Role Process Step 1 Entity Information Carrier Document Event 2 • Process og process parameter - Definitions

27. Why Process Modeling matters? It‘s green

28. Why Process Modeling matters? Thank you, I did see this myself Sorry? If you know and see everything better, why don‘t you drive? Thank you It‘s green

29. Aligning Sender and Receiver It‘s green Pure Information + Personal Experience + Personal Mood + Personal Education + Personal Interpretation + … Pure Information + Undertone + Wording + Language + … Communication Channel Sender Receiver

30. “Modeling only generates more efforts“How to become Model minded? Information about a Process Asfd dsaasdf adf ds fas fd wf wf fyads fy sxd f ew f asd fy sf dw sdw fa sd Ads wf e sd f dsf ad sf a df we s fd fa sd fa sfweedf asd f asd vcfy sdfdwew f sad Adsf asdf adsfasdfasd dsfasdfwd fycvx dgfasdf ysdv yds fgqadf ysfydfdsfa ? Visio Visio Sender Receiver

31. Aligning Sender and Receiver Process Model Sender Receiver • + Knowledge Exchange • + Reduced Complexity • + Common “Language“ • + Standardized Documentation • + Compliance • + Measuring Possibilities…

32. Modeling Convention vs. Modeling Tool Modeling Tool Graphical ProcessDescription Textual ProcessDescription Visio + = Powerpoint Modeling Notation / Convention Aris ...

33. Process parameters

34. PROCESS HIERARCHY ProcessArea Extend enterprise map Level 1 MainProcess Level 2 Process Level 3 Activity Level 4

35. “The RealThing“ What is a Model? Why model processes? Analyze, design, and optimize business processes. MANAGERS, BUSINESS PEOPLE Represen-tation Derive requirements on IT landscape and software. IT EXPERTS At a point in time Demonstrate compliance (e.g. SOX) or get certification (e.g. ISO). The Model AUDITORS Viewpoint ! The Reason MODELER A model is … Models are not what happens – they are a representation of what happens or happened or should happen! ! • … a representation of the real thing • … built to a certain scale and level of detail for a specific purpose • … built to show a viewpoint (here: process focus) • … representation of a snapshot in a point of time

36. What Makes A Good Model? CONTENT QUALITY FAITHFUL TO BUSINESS REALITY COMPLETE SUSTAINABLE CONTENT-WISE CONSISTENT FOSTER HIGH QUALITY PROCESS MODELS UN-AMBIGUOUS / CLEAR EASY-TO-READ UNIFORM STRUCTURAL QUALITY COMPARABLE The Model FORMALLY CONSISTENT Goal Attributes

37. Guiding Principles for Good Modeling • Models must contain only relevant elements,i.e. only aspects that are important with respect to • the selected space of business reality • the project goals • shall be modeled in order to keep model complexity manageable. • Models must be efficiently built, i.e. • modeling effort must be kept low, • modeling must be prioritized according to most relevant aspects, • models must be reusable, flexible, adaptable and sustainable for future use. • Models must be correct and consistent. • Models must be comparable. • Models must be well-structured, intuitively understandable, transparent, and easy-to-read. • !

38. APQC – Process Classification Framework • PCF: • Process Classification Framework developed by APQC (American Productivity & Quality Center) • Source: http://www.apqc.org/portal/apqc/site

39. Cases

40. Cases • 2 Cases • https://portal.wdf.sap.corp/irj/portal?NavigationTarget=navurl://76bd79b075cd6b5d3830cff8b44372ae

41. Case Suppliers & Partners Company Customers & Partners Strategy - Definition Strategy consists of the activities which define, cascade and manage the strategy of the company. The Strategy is an input to both the Core Processes and Corporate Services. Core Processes - Definition • Core processes are the fundamental activities or group of activities that are so critical to an organization's success that failure to perform them will weaken the organization in the long term. The Core Processes are characterized by the following: • The focus is on the customer requirements and the direct customer benefit • Strategic relevance for the company as the core processes determine the competitive advantage and core competencies of a company • Customer is direct receiver of the processes output • The Corporate Services are the activities that support the Core Processes. The services themselves do not create customer benefit directly. However, they are not less relevant than the Core Processes as they provide the necessary resources to ensure efficiency of the Core. The Corporate Services are characterized by the following: • The Corporate Services are processes that are suitable for being outsourced • Are tied to the core processes via internal Service Level Agreements • Customer is indirect receiver of the processes output via the core processes Corporate Services - Definition

42. Raci framework

43. Typical weaknesses in processes can be structured by three criteria Typical process weaknesses Process flow Organizational structure System support/data structures • Loops • Decentralized activities • Inputs not necessary, waiting times • Long lead times • Not enough information for process owners • Goal of the process not specified • High number of interfaces • Low quality of process output • No quality control for process results • No process standardization where possible • Big product and service portfolio which leads to complex processes • No outsourcing of processes which are not core to the customers business • Not enough process automation • … • Pure functional organizational structure (no process ownership across departments) • Responsibilities not clearly assigned • Overlapping responsibilities • Decision processes take too long • No fit of competencies andresponsibilities (governance) • Wrong degree of centralization and decentralization • Not enough transparency • … • Systems do not support the processes (degree of automation) • Missing functionalities • Redundant systems support • User interface not user friendly • Low data quality, redundant data • No integration • Slow information access for process owners • System support not standardized • …

44. Business Process Description – As-Is Documentation Businessobjects Process steps Business rules Involved Business Units R: Responsible; person who carries out the activity A: Accountable; person who is in charge C: Consulted; person asked before carrying out the activity or supporting the activity I: Informed; person has to be informed

45. Identified Process Weaknesses have to be Clustered • Cluster all weak-nesses due to interdependencies and similarities • Develop one solution concept for each different weakness cluster Same cause for identified weaknesses Similarities Business Processes analyzed Same cause for identified weaknesses Similarities Business Processes analyzed

46. BPM technology (business to model and modeling to execution)

47. Modeling Activities in Process Management

48. Synchronize Design With Execution via Business Process Management Suites The Model (as Metadata) Is Used to Orchestrate the Process BPMSs create and dynamically execute explicit process models. Source: From Gartner, Janelle Hill – BPM Summit, London 2008

49. THE SESSION TODAY AND LESSON SUMMARY • The Evolution of Process Management • The Evolution of Enterprise Systems • Process, process parameters including modeling conventions • 2 cases • Raci framework • BPM technology (business to model and modeling to execution)

50. Exercise