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April 6, 2005 Keigo Haga Chief Consultant Japan Business Create, Co., Ltd.

Utilization of SCOR Model to Align Business Process And Information System to Business Strategy. April 6, 2005 Keigo Haga Chief Consultant Japan Business Create, Co., Ltd. Agenda. SCC-Japan SCOR Working Group Goal Problems in ERP Implementation ERP Implementation Concepts

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April 6, 2005 Keigo Haga Chief Consultant Japan Business Create, Co., Ltd.

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  1. Utilization of SCOR Model to Align Business Process And Information System to Business Strategy April 6, 2005 Keigo HagaChief ConsultantJapan Business Create, Co., Ltd.

  2. Agenda • SCC-Japan SCOR Working Group • Goal • Problems in ERP Implementation • ERP Implementation Concepts • Development Themes • Enhanced Model “SCORforERP” • ERP Implementation Methodology with SCOR • Conclusion

  3. SCC-Japan SCOR Working Group SCC Japan • SCOR Working Group • Understanding of SCOR • Diffusion of SCOR • Development of practical Method Board Meeting Seminar SCOR Workshop SCORWorking Group • ERP Implementation Project • From May, 2004 • Members:- Practitioners- Software Engineers- Consultants Steering Committee Members Meeting Technical Committee …… ERP Implementation Total:7Projects

  4. Goal There is a considerable gap between… ImplementedBusiness Process and Information Systems Developed BusinessStrategy Goal of This Project : To establish a practical methodology with SCOR Model to Align Business Process And Information Systems to Business Strategy

  5. Problems in ERP Implementation The reason why the business process and information systems do not align to business strategy is… • Business strategies are too abstract for ERP implementation project • Process areas of business strategies are different from ones of ERP • Problems in actual business scene are not considered in business strategies Develop Business Strategies Top-DownApproach Bottom-UpApproach Implement ERP System

  6. ERP Implementation Concepts ERP system should be implemented through top-down approach, with the concepts: • To confirm business strategies exactly and logically • To Structure breakdown of strategies and bottom-up problems from actual business scene • To define business processes incrementally and consistently • To define whole the system requirements based on the process reference model • To clarify the process performance improvement with system implementation Develop Business Strategies Top-DownApproach with Bottom-Consensus Implement ERP Systems

  7. Development Subjects A) SCOR Enhanced Process Model for ERP Implementation: “SCOR for ERP” B) ERP Implementation Methodology with “SCOR for ERP”

  8. Enhanced Model “SCOR for ERP” Mapping of ERP Features on Metrics Mapping of ERP Features on Best Practice Definition of Process Level4

  9. Definition of Process Level4 To maintain consistency between SCOR Level1~3 process and ERP process level Concepts of Definition • Define level4 as decomposition of level3 • With assumption of discrete manufacture • Based on experience and knowledge of a decade of ERP projects • With utilization of level3 best practice as a key

  10. Mapping of ERP Features on Best Practice To distinct the coverage area of ERP functions against SCOR Level3 2)Defining of General ERP function 1)mapping of functions of each ERP package Oracle General ERP Features PeopleSoft Best Practice SAP

  11. Mapping of ERP Features on Metrics To evaluate the improvement of metrics with ERP Features Metrics Behavior Flexibility Responsiveness Reliability Costs Assets General ERP Features Best Practice

  12. Example:S1.1

  13. ERP Implementation Methodology with SCOR We have defined process level that each phase covers in order to optimize business processes totally Business Strategy Initiate Plan Design Develop Implement & Operate BPR / Information System Concepts Business Process / ERP Outlines Business Process / ERP Detail Specs Configured ERP New Business Process / ERP SCOR Level 1 Process Type Level 2 Process Category Level 3 Process Element SCORforERP Level 4 Process Task ERP Level 5 Process Activity (Transaction) Level 6 (Transaction Function)

  14. Methodology in “Initiate” Initiate BusinessStrategy ConfirmBusinessStrategy Formulate BPR Concepts BPR Concepts Plan • To-Be Business Process • Metrics • Mission • Vision • Domain • SWOT • Business Plan • etc… • CSF • Issue Tree • KGI/KPI • Issue Tree • BPR Themes Information System Concepts Capture the As-Is State of Process • To-Be System Process • Solutions • Problems of As-Is Process

  15. Confirm Business Strategy • Clarify Business Strategy with “Balanced Score Card (BSC)” Framework • Structure Strategic Issues with Enhanced SCOR Lv1/2/3 Process • Set Key Performance Indicator (KPI) with SCOR Metrics

  16. Capture the As-Is State of Processes • Research As-Is State of Processes along with SCOR Process • Find Problems to be solved in the project • Summary problems at level3 process

  17. Formulate BPR Concepts • Integrate Top-Down issues and Bottom-Up problems • Set Priority and list BPR themes • Formulate BPR and information system concepts

  18. Conclusion How to bridge the gap between them with SCOR ? ImplementedBusiness Process and Information Systems Developed BusinessStrategy Top-Down Approach with Bottom-Consensus SCC Japan will continue the development of… • SCOR Enhanced Process Model “SCOR for ERP” • Process Level4 Definition • Mapping of General ERP Features • Mapping of Best Practice on Metrics • ERP Implementation Methodology with “SCOR for ERP”

  19. Thank You！ For more information, please contact to k.haga@jbc-con.co.jp

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