How To Make Sure Bpms and Other Enterprise Systems

How to make sure BPMS and other enterprise systems are aligned to the companys strategy?
6th International Conference on the Quality of Information and Communications Technology - QUATIC 2007
Oct 2007
How to make sure BPMS and other enterprise systems are aligned to the companys strategy
part 2: MLearn
jorge.s.coelho@sisconsult.com
September 12-14, 2007 Lisbon New University, Lisbon, Portugal
How to make sure BPMS and other enterprise systems are aligned to the companys strategy
Abstract: Today time is the competitive differentiator between companies. Companies have to be agile: bring new products and services to market quickly and respond rapidly to changing demands. From an IT point of view, there is an evolution from client-server to service-oriented architecture. What does BPMS contribute to this evolution? Furthermore, there is a myriad of BPMS providers available in the market. What are the right selection criteria? They are specific to each company and should contribute to the competitive market positioning. Are process templates useful and how to avoid commonality? The Mtodo Learn assists companies in building a process-architecture based on continuous improvement departing from the companys strategy. The objective is to assure that organizations take advantage of all the potential offered by the new IT solutions. A systemic and integrated process approach is presented as an important contribution to improve the IT alignment with business strategy, not only during the planning process but also in the maintenance phase. A special technique, offered by the Mtodo Learn, using the business object concept in an early stage of organization modeling, in several layers, enables to identify the information needs in a way that all the semantics is gathered and preserved until its translation to a logic model. The organization change and the user role are taken in account in this approach.
Jorge S. Coelho
QUATIC2007 Tutorial Lisbon, Portugal, September 12-14, 2007
Part 1
What does BPMS contribute to the agility of companies What are the right selection criteria?
Jorge S. Coelho
Part 2
MLearn
The methodology of the Organizational Capabilities
The objective is to assure that organizations take advantage of all the potential offered by the new IT solutions. to improve the IT alignment with business strategy
not only during the planning process but also in the maintenance phase.
Presentation of a special technique based on the business object concept The organization change and the user role are taken in account in this approach.
Jorge S. Coelho
Agenda
Obstacles to get alignment and integration Business Process Management MLearn Examples
Jorge S. Coelho
Client Purpose
Information System Projects
To assure that the Information Requirements:

Fit the business needs Are all identified Are consistent
To clarify the project scope To minimize the additional information requirements at the end of the project To assure the IS is the work tool To assure the link IS / Organization after project end
Jorge S. Coelho
Critical points
Reality
Conceptual / logic Model
e i Final acceptanceonby fin e at e d e n id al y t h ? ? To th atio V b the tclient?? nt s m

No strutured information
Jorge S. Coelho
or em n nf yst eme I S ir ? u eq s ? r
Strured
information
ie cl
Chart dependency
Organization by products
Board Cars Comercial
rs Ca
IS
Production
Trucks Comercial
s ck ru T
IS
Production
Organization by techniques
Board
i erc om CarsC
Jorge S. Coelho
I Comercial al
S
Cars
Production S I
Trucks
o Pr
tio uc d
Trucks
Exemple
Normal practice Request 1
To access the price table during invoice checking
Best practice
Request 1(sinptom)
To access the price table during invoice checking
Response
To adapt sw
Problem
Payments to suppliers are different from the agreed ones
Request 2
To extend the price table with discount conditions
Cause
The user doesnt know the order price as the order hasnt it
Response
To adapt sw again
Request 3
?
Response
All the orders must have the price The price field must be mandatory
Jorge S. Coelho
Similar situation
Pacient Doctor
User IS /Business analyst IT Supplier (internal or external)
Pharmacy
Jorge S. Coelho
No integration nor alignment
The IS is the automation of the sum of the isolated individual needs
... Adjusted later
Jorge S. Coelho
Low degree of integration

HR interviews s Competences, Nec. Training needs nie a appraisals mp co interviews IT nt re Information systems requirements ffe di QUALITY interviews or sf k r Processes, procedures wo Managementocontrol interviews dy b ry Objectives, measures ve ABC E Risk
Jorge S. Coelho
interviews
Organizational repository not unique
Communication / Responsibility
Difficult to make happen Difficult to make happen
Objectives normally are not achieved Objectives normally are not achieved
To much time to decide To much time to decide Many meetings not conclusive Many meetings not conclusive Difficulties to communicate Difficulties to communicate
Different understanding of business strategy Different understanding of business strategy Different understanding of the organization Different understanding of the organization Responsibilities not clarified Responsibilities not clarified
Shared objectives Shared objectives
Jorge S. Coelho
Agenda
Motivation to develop a new approach Business Process Management Mtodo Learn Examples
Jorge S. Coelho
Process approach
Finance
Logistic
Comercial
T4
To collect
T3
T2
T1
Validar enc.
Expedir Planear enc. enc.
T4
T3
T2
T1
Client order
Client order
Jorge S. Coelho
Approach requirements
To deal with complexity To foster consensus Chart Independency Quick application Easy to use by all
Common language
Strategic alignment Integration
Jorge S. Coelho
Agenda
Motivation to develop a new approach Business Process Management Mtodo Learn (MLearn) Examples
Jorge S. Coelho
MLearn
To model and improve the To model and improve the organization efficiency and agility to organization efficiency and agility to make the business strategy happen make the business strategy happen
To put the BPM philosofy in the minds and not only in the computers, in order to get a process oriented behaviour, in fact.
Jorge S. Coelho
Unique organizational framework

Drawing Building project
Business Process Arquitecture
Change management / continuous improvement
Xxxx xx xxx Xx xxx xxxx Xxxx xxx xx
Jorge S. Coelho
SI
Integrated and systemic approach
Strategy implementation and control
Information systems
Human resources
Jorge S. Coelho
Co nt in uo us
im
s ge t ces ed en Pro w l em o ss e Kn nag sine itectur a m Bu h Arc
pr ov em
en t
10
Differenciating factors
Focus in strategy and in the entire organization Organizational therapy approach Integrates Knowledge management Process integrated and systemic approach,
object oriented
Strategy deployment through business process architecture Definition of a continuous improvement model and a team Real time and interactive techniques
Jorge S. Coelho
Customized Benchmarking
Strategy
Cu ltu re
Pr oc es se s
To Preserve the organizational DNA
Jorge S. Coelho
Pe
op le
Te
cn olo gy
11
Process Intelligence
Traditional approach Change approach
Bottom up Organizative model Racionalization Efficiency Process = set of Activities Not systemic Documents / procedures Controls Information management
Jorge S. Coelho
Top down Organizational model Inovation Agility Process = Capability to respond to stimulus Systemic approach Integrated approach People Change management Knowledge management
Process concept
Capability to respond to a stimulum
Monitoring of a life cycle of a business object
Jorge S. Coelho
12
Process definition
Purpose Business Object Beginning End Evaluation criteria
Jorge S. Coelho
Exemple
Company Client Order Requis. Order manag Buy Req. Order ord Supplier.
Requis. mgt
To manage Order to sup

Assure Receive ord delivery Verify paym.
Requis. mgt Delivery time

Jorge S. Coelho
Supplier
Available time
13
Mental model
To Sincronize the Business with the Process Intelligence
Company Client Order Requis. Order manag.

Buy effectiveness To buy
Ord Supplier
Buy advantages Assure delivery Receive ord Verify paym. DeliveryG. delays
Order mgt effectiveness
Requis. Availability
delays
Fornec. Payment delays
Delivery time
Jorge S. Coelho
Available time
Strategy depployment
Improvement motivations
Soc Share holders Competitors Clients RH Fin Cli
Mission/ Vision
Objectives
Detail
Medium term strategy

CSF
Indicators
Projects and improvements
Colaborators
Suppliers
Short term strategy Issue

Cause CSF
Objectives
Detail
Indicators
Process
Cause
Issue
CSF
Objectives
Detail
Indicators
Activity
Cause
Issue
CSF
Objectives
Detail
Indicators
Task
Jorge S. Coelho
Issue
Objectives
Indicators
14
Business Process Architecture
Objectives
Indicators Detail
Entreprise Model Entreprise Model
CSF Objectives CSF
Indicators Detail
Business Model Business Model

CSF
Objectives Detail Objectives
Indicators
Indicators Detail
Operations Model Operations Model
CSF Objectives
Indicators
Workflow Model Workflow Model
IS Model IS Model
Jorge S. Coelho
Business Process Architecture Workflow alignement
workflows
Organizational Capabilities
Jorge S. Coelho
15
Group model
Holding SPGS
Company 1
Company 2
Company n
Jorge S. Coelho
IS
IS
IS
What is an objective
SMART
Orientation (objective)
Goal
Actual
indicator
Jorge S. Coelho
16
What is an objective (2)
Meaning ??
Goal= 3%
Indicator = Absenteism Actual = 5 %
Jorge S. Coelho
Helpful ?!
Indicator
Financial results / sales
Year to date
2,6%
Objective
5,6%
Last year
1,6%
Deviation Last year

1%
Deviation objective
3%
investment/ sales
50%
100%
40%
10%
50%
Crdit to clients
50%
30%
60%
10%
20%
Goal
Clients with medium delay of payment more than 30 days 18 0 25 7 18
Orders with delay
10%
0%
15%
5%
10%
Jorge S. Coelho
17
Indicators types
Different impact in the appraisals Company objectives
Company indicators Process objectives
Process indicators Project objectives Indicators for Analisys Project indicators

Jorge S. Coelho
Process architecture role
Strategy Process architecture
Process improvement Process execution

Jorge S. Coelho
Process modelling
SI
18
Organizational chalenge
Efficiency who?, where?, when? Agility what?, why?
Bottom line
Jorge S. Coelho
how?
Colaboration->Adaptation
SI
Two stages
Process
AgilitySesses
de Trabalho
Activity Sub-Process
o Pr
s ces
l tel In
c g en
External entities stimulus
n tio ca ni mu Business objects m Co

Control points
improvement
Levantament o
Jorge S. Coelho
Task
Improvements (As Is To Be)

Operations
Information needs
IS
19
Process?
Place: warehouse
To verify material
To update stock
To range material
Supplier
Jorge S. Coelho
Do you know your hat?

place: warehouse
Process:
Manage warehouse Manege materials Range materials
To buy
Verify material
update stock
range material
Fornecedor
Business object:
order
Material
Request to the warehouse
Armazm
Performance criteria: Jorge S. Coelho
Financial discount
availability
Delivery time
20
statement
A process is a set of tasks But not all set of tasks is a process
Jorge S. Coelho
chart vs. Processes
Legend:
Process Department
Jorge S. Coelho
21
Objectives hierarchy
Medium term
Short term
Jorge S. Coelho
Monitoring
Grficos de Monitorizao por Indicador
Monitorizao do Modelo de Processos e Respectivo Desdobramento
Jorge S. Coelho
22
Integrated approach Integrated approach

Business strategy People Processes Information Systems ICT
Ought To B e
RqI
RqI
As Is 3 SI As Is 2 Jorge S. Coelho As Is 1
SI
SI
To Be 3 To Be 2 To Be 1
SI
Business objects
Main object Ex: order
in
out
Main object Ex: order
Link object Ex: when is the product available? in
To Manage orders out
To colect
Auxiliar object Ex: invoice
Jorge S. Coelho
Knowledge management
23
The several layers to model IS
Business Objects
IS objects
Jorge S. Coelho
Information systems
Objects
Processes i. systems
Jorge S. Coelho
24
Risk management
technol ogical
Projectos de alto risco
high
Tecnologias emergentes
Impleme ntation
Benefcios difceis
Econo mical
Organiz ational
Realinhamento significativo da organizao
Novas tecnologias testadas
Projectos de mdio risco
Benefcios provveis
Realinhamento reduzido da organizao
Tecnologias testadas
Projectos de baixo risco
Benefcios quase certos
Compatvel com estrutura actual
low
Jorge S. Coelho
Acceptence tests
Jorge S. Coelho
25
MLearn modules
1
Introduction to Introduction to the method the method
2
Strategy Strategy clarification clarification
3
1st level of 1st level of Business Business Process Process Architecture Architecture
4
Modeling the Modeling the other levels other levels
5
Modeling Modeling activities activities
6.1
Modelling Modelling tasks tasks As-is As-is
6.2
Modelling Modelling tasks tasks To-be To-be
Implementao e controlo da estratgia
Sistemas de Informao
Recursos Humanos
Mel hor ia
co
to o do en t im Gesnhec co
a ec tur Arquitde ssos Proce
nt n ua
Management Management control control

Arquitectura de Indicadores
Processos
Human Human Resources Resources

Hierarquia vs. Processos
Continuos Continuos improvement improvement

Equipa de Apoio
10
Information Information System System

Associao de objectos Associa
11
Coaching Coaching
Aprendizagem Organizacional
Viso
Estratgia a Mdio Prazo
Objectivos
FCS Detalhe
Indicadores
Subprocessos
Object ivo 1
A c e s d e M e lh o ria
MC
Actividades
Obje ctivo 2
GP CP
CG
Estratgia a Curto Prazo (Operacional)
Preocupao
FCS
Objectivos
Detalhe
Indicadores
Causa
Diagrama de estados
RH SI/TIC
Processo
Causa
Preocupao
FCS
Objectivos
Detalhe
Indicadores
Actividade
Preocupao
Causa FCS
Objectivos
Detalhe
Indicadores
Tarefas
Le genda:
Processo Departamento
Tarefa
Preocupao
Objectivos
Indicadores
- MIlestone
Jorge S. Coelho
Agenda
Motivation to develop a new approach Business Process Management Mtodo Learn Examples
Jorge S. Coelho
26

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How to make sure BPMS and other enterprise systems are aligned to the companys strategy?

September 12-14, 2007 Lisbon New University, Lisbon, Portugal

QUATIC2007 Tutorial Lisbon, Portugal, September 12-14, 2007

QUATIC2007 Tutorial Lisbon, Portugal, September 12-14, 2007

To assure that the Information Requirements:

QUATIC2007 Tutorial Lisbon, Portugal, September 12-14, 2007

Conceptual / logic Model

e i Final acceptanceonby fin e at e d e n id al y t h ? ? To th atio V b the tclient?? nt s m

QUATIC2007 Tutorial Lisbon, Portugal, September 12-14, 2007

User IS /Business analyst IT Supplier (internal or external)

QUATIC2007 Tutorial Lisbon, Portugal, September 12-14, 2007

No integration nor alignment

The IS is the automation of the sum of the isolated individual needs

... Adjusted later

Low degree of integration

QUATIC2007 Tutorial Lisbon, Portugal, September 12-14, 2007

QUATIC2007 Tutorial Lisbon, Portugal, September 12-14, 2007

Expedir Planear enc. enc.

Strategic alignment Integration

QUATIC2007 Tutorial Lisbon, Portugal, September 12-14, 2007

QUATIC2007 Tutorial Lisbon, Portugal, September 12-14, 2007

Unique organizational framework

Business Process Arquitecture

Change management / continuous improvement

Xxxx xx xxx Xx xxx xxxx Xxxx xxx xx

Integrated and systemic approach

Strategy implementation and control

QUATIC2007 Tutorial Lisbon, Portugal, September 12-14, 2007

s ge t ces ed en Pro w l em o ss e Kn nag sine itectur a m Bu h Arc

QUATIC2007 Tutorial Lisbon, Portugal, September 12-14, 2007

Capability to respond to a stimulum

Monitoring of a life cycle of a business object

QUATIC2007 Tutorial Lisbon, Portugal, September 12-14, 2007

Purpose Business Object Beginning End Evaluation criteria

To manage Order to sup

Requis. mgt Delivery time

QUATIC2007 Tutorial Lisbon, Portugal, September 12-14, 2007

Company Client Order Requis. Order manag.

Order mgt effectiveness

Fornec. Payment delays

Medium term strategy

Projects and improvements

Short term strategy Issue

QUATIC2007 Tutorial Lisbon, Portugal, September 12-14, 2007

Business Process Architecture

Entreprise Model Entreprise Model

CSF Objectives CSF

Business Model Business Model

Objectives Detail Objectives

Operations Model Operations Model

Workflow Model Workflow Model

Business Process Architecture Workflow alignement

QUATIC2007 Tutorial Lisbon, Portugal, September 12-14, 2007

Xxxx xx xxx Xx xxx xxxx Xxxx xxx xx

Xxxx xx xxx Xx xxx xxxx Xxxx xxx xx

Xxxx xx xxx Xx xxx xxxx Xxxx xxx xx

QUATIC2007 Tutorial Lisbon, Portugal, September 12-14, 2007

What is an objective (2)

Indicator = Absenteism Actual = 5 %

Deviation Last year

Orders with delay

QUATIC2007 Tutorial Lisbon, Portugal, September 12-14, 2007