Implementing Business Process Management Steps to Success Midwest

Implementing Business Process Management: Steps to Success Midwest User Group – September 23. 13 Rob Cramer – BPM Practice Manager LEARN. NETWORK. DISCOVER. | #QADexplore

Implementing Business Process Management: Steps to Success Agenda § First … A Quick Update § Process Focused Organizations § Six Implementation Phases § Assess § Design § § • BRDs Model Implement Monitor Modify 2 LEARN. NETWORK. DISCOVER. | #QADexplore

First … A Quick Update LEARN. NETWORK. DISCOVER. | #QADexplore

Implementing Business Process Management: Steps to Success Business Moments: Transient Opportunities Exploited Dynamically 4 LEARN. NETWORK. DISCOVER. | #QADexplore

Implementing Business Process Management: Steps to Success Customers 5 LEARN. NETWORK. DISCOVER. | #QADexplore

Implementing Business Process Management: Steps to Success BPM 2. 0 (September 2014) § Add New Supply Side Processes § Easy-On-Boarding Integration § Replace Biz Rules with Corticon § Simulation 6 LEARN. NETWORK. DISCOVER. | #QADexplore

Implementing Business Process Management: Steps to Success Corticon Better, faster decisions by automating business rules Patented “no-coding” rules engine • Automate manual decision making processes • Transform inflexible legacy system processes • Reduce development and change cycles by 90% • Rules integrity technology guarantees accurate results Improve Productivity & Customer Service Adapt Quickly to Changing Market Conditions 7 7 LEARN. NETWORK. DISCOVER. | #QADexplore © 2011 Corticon Technologies, Inc. All rights reserved. - Confidential

Implementing Business Process Management: Steps to Success Corticon Rules Engine 8 LEARN. NETWORK. DISCOVER. | #QADexplore

Implementing Business Process Management: Steps to Success Simulation 9 LEARN. NETWORK. DISCOVER. | #QADexplore

Process Focused Organizations 10 LEARN. NETWORK. DISCOVER. | #QADexplore

Implementing Business Process Management: Steps to Success It’s All About Processes Type of Process Direct Value/Core Solution Enterprise Applications Indirect Value/ Support QAD BPM 11 LEARN. NETWORK. DISCOVER. | #QADexplore

Implementing Business Process Management: Steps to Success QAD BPM 12 12 LEARN. NETWORK. DISCOVER. | #QADexplore

Implementing Business Process Management: Steps to Success 13 LEARN. NETWORK. DISCOVER. | #QADexplore

Implementing Business Process Management: Steps to Success Strategy & Process Alignment Cost Leadership Differentiation Niche Specialization • Manufacturing Flow • Replenishment • Shipping • Product Development • Customer Relationship Management • Customer Service • Product Development • Marketing Flow • Order Fulfillment 14 LEARN. NETWORK. DISCOVER. | #QADexplore

Implementing Business Process Management: Steps to Success Key Performance Indicator Framework Lean Manufacturing • Customer • Relationship Management • Customer Service Management • Order Fulfillment • Manufacturing Flow Management • Supplier Relationship Management • Product Development & Commercial • Returns Management Tooling Management Preventative Maintenance Mfg Efficiency QAD Standard SOLUTIONS BEST PRACTICES Bar Coding / RF Manufacturing Bill of Material Rapid Changeovers MRO Management Lead Time Reduction Subcontracting QAD Manufacturing QAD Warehousing QAD Alerts QAD Enterprise Asset Management QAD Supply Chain Portal QAD Lean Manufacturing QAD MSW/PSW Data Collection METRICS Documented, supported & executed by BPM KPI Process Defined Based on Best Practices MMOG/SCOR Key Process Throughput Ratio Capacity Utilization Scrap Yield Warranty Cost Master Data Accuracy Manufacturing Cost Ratio Overall Equipment Effectiveness MMOG/LE 15 15 LEARN. NETWORK. DISCOVER. | #QADexplore

Implementing Business Process Management: Steps to Success Detailed Process Map – Supplier Return 16 LEARN. NETWORK. DISCOVER. | #QADexplore

Implementing Business Process Management: Steps to Success Readiness Assessment § Are your processes clearly defined? § How were they defined? § What tools or approaches were used? § How do you currently manage your processes today? § What experience does your company have with BPM? § Is the indirect organization really ready for process automation? 17 LEARN. NETWORK. DISCOVER. | #QADexplore

Six Implementation Phases LEARN. NETWORK. DISCOVER. | #QADexplore

Implementing Business Process Management: Steps to Success Implementation Methodology 19 LEARN. NETWORK. DISCOVER. | #QADexplore

Implementing Business Process Management: Steps to Success Assess ”Capturing business intent through documenting and creating basic models for the business goals, objectives, and strategy. ” 1. Assess 20 LEARN. NETWORK. DISCOVER. | #QADexplore

Implementing Business Process Management: Steps to Success Sample Selection Criterion § Clear and direct linkage to management objectives § Consider value of process to business and its health § Customers rarely interact with just one function § Focus on eliminating a key system constraint 21 LEARN. NETWORK. DISCOVER. | #QADexplore

Implementing Business Process Management: Steps to Success Process Selection 22 LEARN. NETWORK. DISCOVER. | #QADexplore

Implementing Business Process Management: Steps to Success Mapping “As-Is” § Discover process issues in organization § Uncover structural problems, poor controls, and people issues § Define cause of quality and inefficiency issues § “As-Is” or current state scenario § Trying to describe − What takes place − Who does each task − How long − How frequently − Error types − Costs 23 LEARN. NETWORK. DISCOVER. | #QADexplore

Implementing Business Process Management: Steps to Success Design 2. Design § Current or “as-is” state from assessment phase + interviews, data, gap/root cause analysis = what process should be § Focus on business need and how processes and associated workflows can best meet need § Reduce number of problems over lifetime of process § Link to outcomes − Improve customer satisfaction, decrease costs or cycle times, or increase service level agreement achievement 24 LEARN. NETWORK. DISCOVER. | #QADexplore

Implementing Business Process Management: Steps to Success Evaluating Design Options § Solve business problems § Ensure that a correct and efficient conceptual design is prepared – (Multiple options) § Highly iterative § Customer needs well understood and achieved § When needs vary, process allows flexibility § Process (activity) cost is relatively low § Process has high safety and environmental performance. 25 LEARN. NETWORK. DISCOVER. | #QADexplore

Key Focus –BRD Business Requirements Document LEARN. NETWORK. DISCOVER. | #QADexplore

Implementing Business Process Management: Steps to Success Process Attributes § Process as a Whole − Process Owner: Who is business owner? − Purpose: What is ultimate purpose? − Customer: On whose behalf is rocess performed? § Each Activity − − Roles: Who performs? Resources: What tools? Data: What data structures are consumed and produced? Duration: Touch time and total time of activity? 27 LEARN. NETWORK. DISCOVER. | #QADexplore

Implementing Business Process Management: Steps to Success The Interview: An Example § Preferred Customer § Cash-back Balance § Alcoholic Beverages § Expired Coupons § Free Goods § Discounts 28 LEARN. NETWORK. DISCOVER. | #QADexplore

Implementing Business Process Management: Steps to Success Other BRD Considerations § Business Dependencies & Constraints § Training § Acceptance Test Strategy § Reporting Parameters § Expected Outcomes & Business Impact § Non-Functional Requirements § Current System Context Diagram 29 LEARN. NETWORK. DISCOVER. | #QADexplore

Implementing Business Process Management: Steps to Success Model § BPM results in change § Want to ensure changes are positive – mistakes 3. Model are costly § Process changes can be very disruptive – understanding impacts and benefits (or flaws) prior to implementation makes it easier to communicate and gain acceptance (or avoid) § Part of evaluation and decision process 30 LEARN. NETWORK. DISCOVER. | #QADexplore

Implementing Business Process Management: Steps to Success Process Modeler Tool 31 LEARN. NETWORK. DISCOVER. | #QADexplore

Implementing Business Process Management: Steps to Success Data § Use data to estimate design (options) effectiveness – expected outcomes and results − Attempt to predict expected outcomes and results − Compare results to current state − Conduct “what if” scenarios − Specifying design requirements − Get a go or no-go decision − Test impact of a new process before it’s implemented 32 LEARN. NETWORK. DISCOVER. | #QADexplore

Implementing Business Process Management: Steps to Success Simulation § Can be simple … a series of diagrams on a whiteboard and a paper-based run-through of a scenario § Benefits: − Analyze modeling scenarios faster − Effective use of limited resources − Improve team productivity − Help to understand critical process attributes − Assist in modification of attributes − Provide visual feedback for rapid assessment − Helpto increase customer satisfaction 33 LEARN. NETWORK. DISCOVER. | #QADexplore

Implementing Business Process Management: Steps to Success Simulation Report 34 LEARN. NETWORK. DISCOVER. | #QADexplore

Implementing Business Process Management: Steps to Success Outputs § Feasibility analysis § Viability of new processes while looking at various § § § constraints Conducting a cost-benefit analysis of process evaluation Exploring possibilities for system in future state Examining performance metrics of system Prototyping Implementation planning, risk assessment and process design can be modeled Disseminating information about new reengineered process to organization 35 LEARN. NETWORK. DISCOVER. | #QADexplore

Implementing Business Process Management: Steps to Success Implementation Phase § Installing new process § Requires very detailed change management 4. Implement planning § Coordination with all stakeholders § System changes 36 LEARN. NETWORK. DISCOVER. | #QADexplore

Implementing Business Process Management: Steps to Success Implementation Plan § Scalable and flexible § Reflecting degree of urgency, innovation, complexity, and/or sensitivity associated § Clearly outline what will be delivered § Sets framework for dealing with on-time part of objective − on time, on budget, and to expectations 37 LEARN. NETWORK. DISCOVER. | #QADexplore

Implementing Business Process Management: Steps to Success Implementation Plan Schedule 38 LEARN. NETWORK. DISCOVER. | #QADexplore

Implementing Business Process Management: Steps to Success Transition Planning § Training may need to be conducted − Consider sheer volume of learning − Certifications − Employee-specific training maps § Changes: − Strategic Changes − Technological Changes − Structural Changes − Attitudes and Behavioral Changes 39 LEARN. NETWORK. DISCOVER. | #QADexplore

Implementing Business Process Management: Steps to Success Monitor 5. Monitor § Post-execution optimization is based on analysis of actual as-performed metrics (live data) § Key performance indicators (KPIs), data, and qualitative measures − Worker feedback − Surveys § Link to design objectives § Browses, alerts, business rules and escalation mechanisms validated in real life. 40 LEARN. NETWORK. DISCOVER. | #QADexplore

Implementing Business Process Management: Steps to Success Metrics § Two questions: − Are you making progress? − Can you reach your goal on time? § Why fail? : − Organizational myopia − Traditional performance view − Lack of collaborative experience − Cultural barriers − Lack of an organized effort or focus 41 LEARN. NETWORK. DISCOVER. | #QADexplore

Implementing Business Process Management: Steps to Success Business Motivations § Balancing profit, growth, and control § Balancing short-term results against long-term capabilities and growth opportunities § Balancing performance expectations of different constituencies § Balancing opportunities and attention § Balancing motives of human behavior 42 LEARN. NETWORK. DISCOVER. | #QADexplore

Implementing Business Process Management: Steps to Success Modify 6. Modify § Process optimization (modification) includes retrieving process performance information from modeling or monitoring phase; identifying the potential or actual bottlenecks and the potential opportunities for cost savings or other improvements; and then, applying those enhancements in the design of the process − Adam Deane 43 LEARN. NETWORK. DISCOVER. | #QADexplore

Implementing Business Process Management: Steps to Success Optimization § Data analyzed from key performance indicators (KPIs) § § § § and current activity monitoring Trends and associated impacts from other processes Process bottlenecks are identified Modification adjustments are modeled Process owner input obtained and incorporated into solution Goal is to move process inefficiency to an efficient and balanced process that supports defined KPIs Modifications are made and changes to processes are published Online repositories and process guides are updated 44 LEARN. NETWORK. DISCOVER. | #QADexplore

Implementing Business Process Management: Steps to Success Considerations Time Frame − How quickly does the change need to be implemented? − How significant is the process to be affected? − When do we expect to see an improvement? − Premature modifications can create problems Scope − Is this an intradepartmental issue, or does it extend to the larger enterprise? − Are there any external partner impacts that need to be coordinated? − Optimization of one process must be done in context of other processes 45 LEARN. NETWORK. DISCOVER. | #QADexplore

Implementing Business Process Management: Steps to Success Summary § BPM v 2 § Process Focus § Six Steps − Assess − Design − Model − Implement − Monitor − Modify Project Commitment Form Core BPM Process Project Team Continuously Adapt And Promote Success Modify Assess Design Iterate Monitor Model Implement 46 LEARN. NETWORK. DISCOVER. | #QADexplore

Questions? 47 LEARN. NETWORK. DISCOVER. | #QADexplore