We make strategy operational.
Command and Control for Business PerformanceAn IDS-Scheer Perspective
www.ids-scheer.com
An IDS Scheer Perspective
Where are executives focused?
CEO
R kTop 10 Business R kTop 10 Business
CIO
2Attracting and retaining new
1Business process improvement
Rankop 0 us essPriorities
2Attracting and retaining new
1Business process improvement
Rankop 0 us essPriorities
4Expanding into new markets or hi
3Creating new products and services (innovation)
2tt act g a d eta g ecustomers
4Expanding into new markets or hi
3Creating new products and services (innovation)
2tt act g a d eta g ecustomers
6Improving enterprise workforce effectiveness
5Reducing enterprise costs
geographies
6Improving enterprise workforce effectiveness
5Reducing enterprise costs
geographies
8Increasing the use of information and analytics
7Expanding current customer relationships
8Increasing the use of information and analytics
7Expanding current customer relationships
10Acquiring new companies and capabilities (mergers and acquisitions)
9Targeting customers and markets more effectively
10Acquiring new companies and capabilities (mergers and acquisitions)
9Targeting customers and markets more effectively
© IDS Scheer AG www.ids-scheer.com 2
Source: Gartner EXP (January 2008)
Questions for the operations management team
1. Have you identified the core processes that drive business operations?
2. Have you established a master repository of all your process intelligence?g
3. Can you associate a process with its effect on Key Performance Indicators?
4 Can you measure process execution on demand?4. Can you measure process execution on-demand?
5. Does each process have an accountable owner-of-record?p
6. Is enterprise-level continuous process improvement within your reach?Process Excellence Operational Excellence Business PerformanceProcess Excellence Operational Excellence Business Performance
© IDS Scheer AG www.ids-scheer.com 3
Process Excellence Operational Excellence Business PerformanceProcess Excellence Operational Excellence Business Performance
Do Process + Structure = Business Performance?
Is there a link between share performance and the use of structured business improvement approaches using process frameworks such as SCOR?improvement approaches using process frameworks such as SCOR?
Hi h l tHigher value over term
Less decline over the past three months
SCOR I dSCOR Index
S&P
DJI
© IDS Scheer AG www.ids-scheer.com 4
Business Performance starts with the foundation.
ValuationShare Price
G
Business Strategy
Top Line Growth
Operational Strategy
Operational Execution
People Processes Technology
© IDS Scheer AG www.ids-scheer.com 5
2/3 of the foundation is impacted by outside forces.
ValuationShare Price
G
Business Strategy
Top Line Growth
Operational Strategy
Operations
Time in Job1 in 4 on job <1 yr1 in 2 on job <5 yrs
Non-native workers14.8% in 2005
PeopleProcesses
Enabler rather than coreHidden costs
Rolling refresh cyclesDisruptive by design
Technology
© IDS Scheer AG www.ids-scheer.com 6
U.S. Department of LaborBureau of Labor Statistics
15.3% in 200623.5M workers
Offshoring
Disruptive by designOutsourcing
Process represents the corporate memory and is the only element in the business foundationis the only element in the business foundation that is 100% under management’s control.
© IDS Scheer AG www.ids-scheer.com 7
Predictable business performance is an outcome of consistently
Perspective
Predictable business performance is an outcome of consistently leveraging information through structured processes that are executed the same way over and over again.
1 Persistent1 Persistent
Input
How is it used?1. Repeatable2 Technology AgnosticOptimal Processes
What is used?1. Persistent2. Available3. Quality Assured
Accurate Information
How is it used?1. Repeatable2 Technology AgnosticOptimal Processes
What is used?1. Persistent2. Available3. Quality Assured
Accurate Information
How well is it used?1. Predictable2. Efficient
Flawless Execution
How is it used?2. Technology Agnostic3. Measurable
Optimal Processes
How well is it used?1. Predictable2. Efficient
Flawless Execution
How is it used?2. Technology Agnostic3. Measurable
Optimal Processes
1. Operationally effective1. Operationally effective
Output
© IDS Scheer AG www.ids-scheer.com 8
2. Continuously improved3. Predictable results
Business Performance 2. Continuously improved3. Predictable results
Business Performance
BPM and a Master Process Repository drive predictability and repeatability into work processes and operations
OptimalProcesses
AccurateInformation
FlawlessExecution
Business Objective
MDM CPM/PPMGovernance BAMBPMMDM CPM/PPMGovernance Method BAM
Master Process Repository
Master Data Repository
Performance Dashboards
Governance Technology
© IDS Scheer AG www.ids-scheer.com 9
The Master Process Repository is the hub for continuous improvement and technology independence
Provides a context for how the business operatesInterdependencies of processesAccountabilityCause & Effect
Drives technology independenceDecouples “how” the business operates from “what” it operates onSustains operational predictability through technology cycles
Delivers efficienciesCreates persistent processes across the enterpriseProvides analytics to uncover under- or unutilized processes
© IDS Scheer AG www.ids-scheer.com 10
Enables accurate costing of (operational) processes
How do you start?
© IDS Scheer AG www.ids-scheer.com 11
A Master Process Repository is defined and populated with customer-specific operational process models.
Enterprise-wide persistency and consistencyProvides context & cause/effect relationships between processesEnsures quality & predictability of execution
Finance
MasterProcess
GraphicsDocumentsKPI’s
SupplyChain
ProcessRepository
Org StructuresAccountability MapsProcess Costing
ProductDev
InformationTechnology
© IDS Scheer AG www.ids-scheer.com 12
The repository then becomes the strategic asset that supports multiple enterprise-wide use cases.
Provides audit documentation and historiesEnables views of business “as-executed”
Cost Analysis
Invest once-leverage widelyGovernance
Cost Analysis
Enterprise BPM
OperationalFinance
MasterProcess
pMeasurement
EnterpriseArchitecture
SupplyChain
GraphicsDocumentsKPI’s
Use CasesProcessRepository Vendor
Selection
SLA
ProductDev
Org StructuresAccountability MapsProcess Costing
Use Cases
Management
Compliance
InformationTechnology
© IDS Scheer AG www.ids-scheer.com 13
ContinuousImprovement
How does ARIS help?
© IDS Scheer AG www.ids-scheer.com 14
Holistic BPM with ARIS
BPM organizationWho?
Procedure modelVia?
BPM
ARIS Value EngineeringCompany-specificp y p
Integrated methodHow?
TechnologyWith?
Objectives / StrategyWhy?
Integrated method Technology Objectives / Strategy
Architecture of integrated Company-specific
© IDS Scheer AG www.ids-scheer.com 15
Architecture of integratedinformation systems
Company specific
ARIS Business Performance Edition
ARIS – Boosting Business gProcess Performance>> Improve business process performance and transparency through integrated business intelligence and process intelligence <<process intelligence. <<
ARIS – Improving BusinessARIS Improving Business Through IT>> Increase corporate success and protect your investment through efficient and innovative business processes backed by profitable deployment of IT. <<
ARIS Ensuring BusinessARIS – Ensuring Business Compliance>> Leverage efficient, process-based risk and compliance management for reliable control and enforcement. <<
© IDS Scheer AG www.ids-scheer.com 16
a age e t o e ab e co t o a d e o ce e t
ARIS Platform
ARIS Process Performance ManagerARIS Process Event MonitorARIS P f D hb d
ARIS BSCARIS Six SigmaARIS B i O ti iARIS Performance Dashboard
ARIS Risk & Compliance Manager…
ARIS Business OptimizerARIS Business Simulator…
ARIS Business Architect for SAPARIS SOA ArchitectARIS Business Rules Designer
ARIS Business ArchitectARIS Business DesignerARIS Business Publisher
© IDS Scheer AG www.ids-scheer.com 17
gARIS BI Modeler…
ARIS IT ArchitectARIS IT Inventory…
Visibility and Alignment enable command & controlVisibility
Linking processes to the KPIs they support make y ppimpact highly apparent
AlignmentgBusiness strategy to Operational Execution
CommandAutomated monitoring & alerts drive constant oversight and incident avoidance
ControlRapid assignment of accountability and integration to modeling tools
© IDS Scheer AG www.ids-scheer.com 18
integration to modeling tools reduces time-to-solution
Perspective
Effective measurement and management of business processes provides the foundation for operational excellence
1. Discovery of existing processes2 Assessment of process value and performance2. Assessment of process value and performance3. Management and improvement of the process
Focus on the HOW, not the WHERE!
© IDS Scheer AG www.ids-scheer.com 19
Focus on the HOW, not the WHERE!
Process DiscoveryAS-Documented Process AS-Executed Process
CustomerRequest
0.50 Day(s)Raise
CustomerOrder
Order beingprocessed
0.50 Day(s)
Job
0.50 Day(s)
Term PointCSPC Wideband
FrontOffice
InformSales
SE CaptureOrder
Routenot
investigated
New quoterequestfrom PM
New quoterequest fromcustomer
Requirementgeneratedas result of
capacityLinks PM Plans
Customer Requirements& SE Capture Order
Responsefiled
Dead end
CRF completedand
Links SE CaptureOrder & Issuer
Enter Order
IssuerEnter Order
Validation jobgenerated onCMC
Pass Missinginformation
to Issuer
Links SE Resolves& Issuer Enters Order
NJRA closed
Missinginformation
request (Issuer)
Links Issuer Enter
Input from Account Team
Receivecustomer
plans
Decide no neworders required
Dead end
Decide to placeorder with
tactical planner
Links PM plansCustomer Reqs &Tactical Planning
SEResolves
PM PlansCustomer
Requirements
SE AnalyseD l
Route not investigated
Delay enquiryfrom customer
Links JC analysedelay & SE
d tProgress update
t SE
SE respondto Customer
Dead end
Links JC analysedelay & WBP
601 Task
INAC tasklive
Dead end - routenot investigated
Progress infopassed to WBP
TacticalPlanning
Links Supervise contract& Tactical Planning
RFs sent toCSP Contracts
RF's sent forFinancial
authorisation
Out of Scope - not Modelled
Supervise
Links DetailedPlanning
& Supervise Contract
DL proact jobon queue
Ready forinstallation
Links Supervise Contract& COW supervise
External Works
DetailedPlanning
PM reportsProject Status
Account Teaminforms
Manager ofmajor project
Customerrequest (major
project)
Managerinformed
of major projectfrom other
SDH PMnot required
(End)
Form sent from Oswestry Capacity Managment
SDH23received
Control
NJRA
Term pointAllocationcomplete
CustomerSDH and Parenting
identified
Term PointAllocation
A601
4.00 Day(s)Identification
of CoreNetwork Capacity
0534
2.00 Day(s)Identificationof Customer
SDH and Parenting0532
Job ControlInitiated
Routing andAssignment of
CSPC WidebandPlanner
NetworkSolutionDesign
NetworkSolutionDesign
CMC queue
Links Issuer EnterOrder & JC Order
Validation
NJRA closed
Links Issuer EntersOrder & NTE Task
Links Issuer EnterOrder & SE
Resolves
601 task toWideband
planner
Links Issuer EnterOrder & Search
for Y Code
JC order
Missinginformation
request (JC)
Links chase missinginfo & order validation
Missinginformation
received (JC)
Links Issuer chasemissing info & JCOrder Validation
Links JC OrderValidation & NTE
allocation
NJRAclosed
Re-Issue601 Taskto WBP
Links JC OrderVal idation &
Search for Y Code
NTE Tasks(129/532)
London/Glasgow
Y CodeSearchSlough/London
Links Search for YCode & Q Mgr
selects NTE TaskA29/O532/O530
New job inqueue
Links Search for YCode & NTE Task
New Job inqueue
Links Issuer chasemissing info &
WBP Site Survey
Missinginfo received
WBPSite Survey
SE refer
Link to internal/external workgroups - not
modelled
Info sent tointernal/external
workpacks
Links WBP SiteSurvey & SE Refer
Costing toCustomer
Anci llary costinfo to SE
Links WBP SiteSurvey & Issue
RF's & JC Respondto CREP
154 atCOM
Job delayed
Links WBP Site Survey& JC Analyse Delay
NSD Route
JC AnalyseDelay
Delay
Links SE analyse delay& JC analyse delay
Progressrequestto JC(SE)
responds toCustomer
to SE
Dead end - routenot investigated
Progress infopassed to NSD
Dead end - routenot investigated
Progress infopassed to PM
Dead end - routenot investigated
Progress infopassed to CSM
Proact jobcomplete Not modelled
Links toExternal Works
carrying out DL works
IM Facili tiesDecisions
Requiresfurther
Investigation
IM Plan Sitesfor Capacity
Issuer chasesmissing info
Links WBP Site Survey &Issuer chase missing Info
Missinginformation
request (WBP)
SolutionPlanning
Budget
Links NTE Tasks (No Y Code)& JC Analyse Delay
Order in JobController's
Queue (Link)
NSD Q Managerchase missinginfo/clean data
Glasgow
Links WBP Site Survey& NSD Job Selection & Clean
010/O534l ive (Link)
Job assignedto NSD (Link)
Links NSD Job Selection/Clean& NSD Route /Assign
Relevant NSDinformed of newproj order (Link)
Links Queue Manager selects NTE& Route/Assign Glasgow
154 Tasklive (Link)
Links NTE Tasks& WBP Site Survey
Links WBP Site Survey& Issue RF's Glasgow
SDH2C formsent to NSD
(Link)
Missinginformation
passed to NSD(End)
Route not investigated
INJCin JCs
queue (Link)
Links NSD Job selection/Clean& JC Analyse delay
Links Issuer chase missing info& WBP Site survey &WI
Missinginformationnot available
(WBP)
Job returnedto queue man
(Link)
Requiresfurther
Investigation
Requiresfurther
Investigation
Requiresfurther
Investigation
Customer
OrderRequirements
Reviewed
0.50 Day(s)Determine
ServiceDelivery Date
CREP
CallCustomer
CALL
0.50 Day(s)
Review OrderRequirements
0680
ServiceDelivery Date
Determined
Assignment ofCircuit Complete
CSPC
FrontOffice
CWPC
Costing toCustomer
Issue RFsGlasgow/London
JC Respondto CREP
Links refer costingto customer &cancel order
Order
Customerconfirm
information toWideband
Links SE refercostings to customer& WBP Site Survey
Cancelorder
End
Ready toCREP
Links NSDRoute/Assign& JC Respond
to CREP
Task called toissuer
Issuer choosesto ignore so not
modelled
Links JC respondsto CREP & Issue
RF's Glasgow
CREPcomplete
Al locate CoWLondon /Sheffield
Ready forinstallation
Links Allocate COW &COW supervise external works
Supervise
Schemeinstalled &
commisioned
Links Supervise External /Contractor& Integrate Schemes
Input not Modelled
Incomingcall from field
engineer
Links Route/Assign& JC Analyse delay
INJCin JCs
queue (Link)
Links Issue RF Glasgow& Allocate COW
198/O912complete
RF prepared(Link)
Links Issue RF's& Route & Assign
( )
Links Route/Assign& Queue Manager Chases missing details
Company
CoreNetwork
Built
CustomerCall
Complete
ServiceConfiguration
Complete
14.00 Day(s)BuildCore
Network0630
3.00 Day(s)
ConfigureService
CONF
0.50 Day(s)Report
Service OrderComplete
WNEX
NetworkSolutionDesign
NOU
CWPC
Equipmentnot delivered
Not Model led at Present- Non Fluid Process
& Integrate Schemes
IntegrateSchemes
CONFLive
Links Integrate Schemes& Configure Circuit/Resolve Problems
Link notModelled/investigated
Schemereferred to
NSD
Schemereferred to
CSP
Integrate scheme andTactical planning eEPCs
Configure CircuitResolve
Problems
WNEXlive after
WNEX task is triggered byCOSMOSS, once all othertasks have been completed
End ofProcess
Capacityproblemraised
Links Supervise External Works/Contractor& IM facili ties decisions
Route, Assign& config 2Mbit
Circuits
JC amend CDD
Feed into COSMOSSstatistics - Dead end
CDDamended
CDD can't Feed into COSMOSSstatistics - dead end
R&A taskcom'd
Link to COSMOSSglue and Config circuit
Other outputtbc
Service providers
Project managers
ARISmodelers
Project administrators
1.00 Day(s)
Handover Serviceto Customer
HAND
0.50 Day(s)Service
CompletionMonitor
COMP
ServiceCompletion
being Monitored
HandoverComplete
ServiceCompletion
Reported
FrontOffice
CWPC
TimesCostsQuantities+
© IDS Scheer AG www.ids-scheer.com 20
Processowners
Methodconsultants
System administrators Risks
Chances+
Strategic Measurement and Assessment
Current sales performance
© IDS Scheer AG www.ids-scheer.com 21
Tactical, Actionable Information
U iU iWhy Uncoveringprocess behavior
patterns
Uncoveringprocess behavior
patterns
Why
AS-ISProcesses !!
AS-ISProcesses !!
MonitoringPerformanceMonitoring
PerformanceHow
PerformanceIndicators
automatically
PerformanceIndicators
automatically
© IDS Scheer AG www.ids-scheer.com 22
What
Operational Root Cause Analysis of Performance Weakness
© IDS Scheer AG www.ids-scheer.com 23
Perspective
Corner office command-and-control of the operational strategyprovides the Operational Executive his best weapon for proactively driving key corporate indicatorsproactively driving key corporate indicators.
Command: On-demand visibility into performance of key indicatorsy p yControl: Immediate assignment of accountability
Focus on the HOW not on the WHERE!
© IDS Scheer AG www.ids-scheer.com 24
With Visibility Comes Accountability
Best CaseRegion A
Spotlight Effecton activity level
Worst CaseRegion BRegion A on activity level Region B
Performance gapsPerformance gapsdetected in benchmarking
Process defectsidentified in aggregated process flow
Best Practicewith lean process flow
© IDS Scheer AG www.ids-scheer.com 25
identified in aggregated process flowwith lean process flow
A framework for accountabilityforms the basis for process
performance and performanceperformance and performanceconformance
© IDS Scheer AG www.ids-scheer.com 26
Process Performance Management
On Demand Measurement and Analysis
Process Intelligence + Process Monitoring + Process Modeling = Process Performance Management
On Demand Measurement and Analysis of actual running processes
Automated collection Process Monitoring Process Modeling
Always-on monitoring
Early Detection of anomalies
Alerting1
23
12
3Alerting
Root-Cause Analysis
45
67
45
67
89tim
e8
9time
Process Intelligence
P P f M t
© IDS Scheer AG www.ids-scheer.com 27
Process Performance Management
Performance measurement closes the control loop
Ability to sense and respond early improves ability to correct-with-effect
Monitoring of operational key indicators as early warning systems to d cato s as ea y a g syste s topotentially damaging deviations from targets
Persistent monitoring via automation
On demand…
Reports
Dashboards
Analytics
© IDS Scheer AG www.ids-scheer.com 28
How do we establish performance assurance and process
governance?governance?
© IDS Scheer AG www.ids-scheer.com 29
ARIS Solutions
© IDS Scheer AG www.ids-scheer.com 30
ARIS Business Performance Edition
ARIS – Boosting Business gProcess Performance>> Improve business process performance and transparency through integrated business intelligence and process intelligence <<process intelligence. <<
ARIS – Improving BusinessARIS Improving Business Through IT>> Increase corporate success and protect your investment through efficient and innovative business processes backed by profitable deployment of IT. <<
ARIS Ensuring BusinessARIS – Ensuring Business Compliance>> Leverage efficient, process-based risk and compliance management for reliable control and enforcement. <<
© IDS Scheer AG www.ids-scheer.com 31
a age e t o e ab e co t o a d e o ce e t
We Make Strategy Operational
SSStrategyStrategy
Valuation
Op
Command & Control
Op
Command & Control
Valuation
Shareholder Value
Top-Line Growthperationsperations
© IDS Scheer AG www.ids-scheer.com 32
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