Carlsberg Supporting Carlsberg’s Strategy with BPM and ARIS

Introducing Carlsberg

Intro to BSP1

The overall BPM agenda

The Carlsberg Process Model

Next Steps and Lessons Learned

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Agenda

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Founded in 1847 on a passion for beer, science and art

1847 JC Jacobsen founds

the Carlsberg Brewery on a hill outside of Copenhagen

1882 JC’s son Carl

Jacobsen builds his own brewery next to his father’s and calls it ”New Carlsberg”.

1868 Carlsberg has

international ambitions from the beginning and Exports it’s first barrel of beer to Scotland in 1868

1904 The famous Carlsberg

logo is designet by architect Thorvald Bindesbøll. This logo is still used today.

JC Jacobsen has great ambitions for his brewery and to make sure his beer is brewed to the highest scientific standards he establishes the Carlsberg Laboratory.

Carl Jacobsen has a great passion for art and architecture and creates many spectacular buildings for his brewery. One of these is the impressive Elephant Gate welcoming visitors to his brewery.

We have grown through a number of European acquisitions since 1999

From a local player in 1999… … to a global brewer in 2012

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5

Now with more than 500 different brands

Carlsberg strategy is to BE THE FASTEST GROWING GLOBAL BEER COMPANY

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Carlsberg launched a Business Standardisation Programme (BSP1) as a key enabler in realising the Carlsberg Group

Strategy.

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Agenda

Introducing Carlsberg

Intro to BSP1

The overall BPM agenda

The Carlsberg Process Model

Next Steps and Lessons Learned

BSP1 drives the implementation of…

• One common business process model - which allow us

to share best practices, exchange information, benchmark and drive continuous improvement

• One common IT platform - which allow us to focus on

what’s important – responding to local market needs

• One integrated supply chain - which allows us to

leverage functional capabilities and benefit from our scale with

common and aligned Ways of working across the

organisation at all levels

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BSP1 is not only an IT system implementation, it is a business transformation programme to enable Carlsberg to achieve key business objectives

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Throughout Western Europe, including:

450 people are currently working in BSP1

25+ nationalities are working in BSP1

19 countries +HQ & HQ central functions will implement BSP1

8 main areas will be standardised

600+ managers will be impacted by BSP1

15.500+ employees will be impacted by BSP1

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Agenda

Introducing Carlsberg

Intro to BSP1

The overall BPM agenda

The Carlsberg Process Model

Next Steps and Lessons Learned

A Permanent Business Process & Information Management (BP&I) organisation established to:

Benefits: BP&I reasons:

IDEA TO PROPOSITION

MARKET TO CASH

FORECAST TO DEPLOY

SOURCE TO PAY

SUPPORT PROCESSES

Drive end-to-end improvement

• Increase overall business value of processes, master data & business intelligence

• Gain cross-functional process efficiency

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Level of standardization

BSP1

BP&I

Business as usual

Post-BSP1

Maintain consistency and standardization

• Safeguard BSP1 investment

• Achieve and maintain economies of scale

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Global Local

Enable and support a Glocal approach

• Enable efficient & coordinated project preparation

• Harvest global synergies in local markets

3

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The BP&I organisation is embedded in the BSP1 organisation

Programme Management

Change / HR

PMO

Roll out managers

Delivery Team BP & I

Sale

s

Pla

nnin

g

Pro

cure

ment

Pro

duction

Logis

tics

Fin

ance

Master Data

KPIs & Reports

Integration Team

Functional Boards

Steering Group

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Technology

Solution Architects

Plan and Analysis

Design

Build

Test

Deploy

ELS

The BP&I resources are responsible for the process life cycle during and after the BSP1 implementation

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New requirements to be raised and linked to

L3 processes. Processes are updated by core teams where

needed

Processes used as input for test script

creation/update

Test execution and Training material created / updated

based on processes

Training to be process based

Process monitoring

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The Role of the BPM will switch from project oriented to continuous improvement oriented

Roll-out activities Maitenance and Continuous Improvement activities

Wave 1 Wave 2 Wave 3 Wave 4 Wave 5

The role of the Business Process Manager will evolve in the same pace as the BSP1 programme roll-out. The main focus before the first wave go-live was to run the project and coordinate functional resources Once the majority of the countries have been roll-out on the standard platform the BPM role will mainly be focused on continuous improvement

A Governance process has been designed to approve changes to the standard solution

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ExCom

Regions Group functions, CSC

Functional Boards

Solution Expert Board CIT

Service Desk

ExCom • Defines Strategy & Policy setting • Approves Functional strategies and targets

Regions and Group Functions, CSC • Defines Functional Strategies & targets • Approves major change requests

BP&I • Verifies and approves business requirements

=> Go/no-go • Ensures end-to-end process alignment • Process Network communities

IT • Solution Architects ensures end-to-end application

landscape integration • Responsible for incident management (tickets) • Maintenance of IT infrastructure (technology)

Change Request

Incident

CR resolution incl. process, system and end-to-end impact analysis

Change Advisory Board

IT

BP&I

The Functional boards will approve major change request or new initiatives

ExCom

Regions Group functions, CSC

Functional Boards

ExCom • Defines Strategy & Policy setting • Approves Functional strategies and targets

Regions and Group Functions, CSC • Defines Functional Strategies & targets • Approves major change requests

BP&I • Verifies and approves business requirements

=> Go/no-go • Ensures end-to-end process alignment • Process Network communities

Major Change Request

New Initiative

Approves change

IT • Solution Architects ensures end-to-end application

landscape integration • Responsible for incident management (tickets) • Maintenance of IT infrastructure (technology)

Solution Expert Board CIT

Service Desk

CR incl. process, system and end-to-end impact analysis

Change Advisory Board

IT

BP&I

CR resolution

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Agenda

Introducing Carlsberg

Intro to BSP1

The overall BPM agenda

The Carlsberg Process Model

Next Steps and Lessons Learned

Level 1 •End-to-end process across functions

•Example: Market-to-cash

•Consists of several processes.

Level 5 •Task. The steps are specific user actions or

system transactions. A step contains the guide

for how to perform the task.

•Example: Send invoices to print

Level 2 •Main process area. Typically function-specific,

and in some areas comparable with org.

departments. Example: Accounts Receivables

•Consists of several sub-processes

Level 3 •Sub-process. The sub-process is a sequence of

related activities.

•Example: Goods Invoicing

•Consists of several activities Level 4 •Activity. Activities are key steps within a Sub-

process.

•Example: Printing Invoices

•An activity consists of several tasks

Carlsberg process hierarchy includes 5 levels

E2E

Processes

Process

Sub-Process

Activity

Task / Transaction

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And they are aligned with SAP Solution Manager documentation hierarchy

Level 1

Level 2

Level 3

Level 4

Level 5

End to End Process

Main Process Area (Business Scenarios)

Sub-process (Business Processes)

Activity (Process Step)

Tasks/Transactions

Functional ownership

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After several previous silo-oriented optimisation projects, it was found essential to work with end-to-end processes

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Why do we have our processes structured in End to End processes?

• In order to switch the culture from a silo-oriented approach to a more end-to-end

integrated view

• To facilitate process integration across functions

• To secure processes are mapped only once

Processes have been divided in Main Processes that describe where

Carlsberg has its primary competitive advantage i.e.

• Idea to Proposition

• Market to Cash

• Forecast to Deploy

• Source to Pay

…and supporting processes which include all the back-office processes such as:

• Hire to Retire • Record to Report • Master Data Management

OUR BREWING PROCESSES

SOURCE TO PAY

MARKET TO CASH

FORECAST TO DEPLOY

CARLSBERG BUSINESS PROCESS MODEL

ASSET MANAGEMENT

KPI & REPORTING MANAGEMENT

BUSINESS MANAGEMENT GROUP SUPPORTING

PROCESSES

MASTER DATA MANAGEMENT

BUSINESS PROCESS MANAGEMENT

IT PROCESSES

HIRE TO RETIRE RECORD TO REPORT

IDEA TO PROPOSITION

Group Strategic Processes: Real Estate - Mergers & Acquisitions - Business Development

Name of presentation - DD MM YYYY – Month/Day/Year

400m sprint world record for men: 43.18 sec

4x100m relay for men: 37.40 sec

E2E thinking

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Before designing the IT platform, we designed the processes model together with the business

1. Identification of Carlsberg

processes based on

external and internal

input a Process List is

generated

2. Validation of the Process List

per function

by Core Team, HQ, and

selected Countries

3. Identification of Best

Practice Countries based on

the Process List validation,

4. AS-IS + Country

/reference visits

5. To-Be design

6. Integration workshops to

finalize Processes,

Master Data and

reporting requirements.

workshops

PTP-030-020-040 Contract compliance on price

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lier

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ina

nce

de

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en

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Supplier

performance

Price compliance

report in BWAnalysis of report

Is there a match

between invoicedl

price vs.contract

price?

No

Explanation on

deviation

Is the price

explanation

accepted?

Compliance report

on supplier

Conlcusion of

deviation cause

Yes

No

Sending creditnote

Information to

compliance report

Yes

Final evaluation of

supplier

Category

evaluation

Category

evaluation report

Settlement invoice

Did we pay to

much for the

product?

Yes

No

Creditnote/new

settlement invoice

CH

11

UK

12 13

PLCountries

109Week

CH

11

UK

12 13

PLCountries

109Week

+

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The Process Documentation Tool has also evolved during the BSP1 Programme

PTP-030-020-040 Contract compliance on price

Su

pp

lier

Su

pp

lier

Gro

up

Pro

cu

rem

en

tG

rou

p P

rocu

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Lo

ca

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ina

nce

de

pa

rtm

en

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Supplier

performance

Price compliance

report in BWAnalysis of report

Is there a match

between invoicedl

price vs.contract

price?

No

Explanation on

deviation

Is the price

explanation

accepted?

Compliance report

on supplier

Conlcusion of

deviation cause

Yes

No

Sending creditnote

Information to

compliance report

Yes

Final evaluation of

supplier

Category

evaluation

Category

evaluation report

Settlement invoice

Did we pay to

much for the

product?

Yes

No

Creditnote/new

settlement invoice

Used Visio for process flows, Word for linking processes to roles, systems and data and Excel to administrate the whole process structure

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1 Deloitte’s IPPM was used to create a more integrated process model and to have all information one place.

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2

Once the foundation of the model was established it was decided to buy a more advanced tool to link Business and IT.

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3

4

After more than one year working with EPC it was decided to change to BPMN to gain more acceptance from the end users

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Microsoft

IPPM

ARIS EPC

ARIS BPMN

A process example at the lowest level shows events, information and business rules

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Besides Processes we are also documenting Master Data, KPI, Reports, IT and Controls

Business Processes

KPIs & Reports Master Data

IT Architecture

Internal Controls

Roles & Authorisations

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KPIs are deployed down ensuring employees can see their work in a strategic context

Supply Chain

Targets

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Before:

• Multiple versions of same reports, multiple versions of KPI calculations

• No single version of the truth, No transparency

After

• The portal is a “one-stop shop” for all reporting needs

• Standardised reports can be used as a point of departure for the user to customise into their own or country- specific report

• Various tools available to give flexibility, e.g.:

• Personal and global variants

• Analyser queries

• Query designer

• Personal favourites and country folder

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Agenda

Introducing Carlsberg

Intro to BSP1

The overall BPM agenda

The Carlsberg Process Model

Next Steps and Lessons Learned

In the programme:

• Process thinking

• Understanding of ARIS

• Mapping discipline

• Understanding why processes are still important after the design phase

• Resource constraints

With ARIS:

• End user acceptance:

– End users were reluctant to use / understand EPCs

– Business Publisher is not very user friendly

• SAP synchronization:

– Has been learning by doing – both in regards to the actual use of Solution Manager and in regards to the benefits it gives.

The most significant challenges

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Next Steps

End-user facing:

• Develop scenario models for ”tricky” scenarios

• Include more background information, i.e. policies, templates

• Improve Business Publisher/Replace by own portal?

BP&I & IT facing:

• Mapping Requirements to processes

• Upgrade ARIS

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• More business process instruction rather than system instruction

• Processes as part of test and training in all areas

• Cannot take one area only. It is all connected:

– Processes

– Master Data

– Reporting

– System

– Organisation

Specially when combined with a system implementation – DON’T focus only on the system supported processes and/or functionalities

• Once documented, it is a strong tool when introducing new initiatives

Lessons Learned

These are the lessons learned from the first go-lives but and we are still learning…

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TM

Any Questions?

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