M a s t 2 e 6 r C m l a a a s r 1 s t Klant 26 1 naam maar (10 t spati 2013 es) voett ekst wijzig en via Invoe gen | Kopte kst en voett ekst
Value-driven BPM Michael Rosemann Queensland University of Technology www.michaelrosemann.com
Intellectual Property Culture
Customers
Monetary Assets
Vendors
Corporate Assets
Business Processes
Knowledge
Dynamic Capabilities
Employees
IT Assets (HW/SW)
Operational Intellectual Property
Physical Assets 3
Why
Processes Matter
90 %
90 %
90 %
= 59 % 4
90 %
90 %
Successful BPM: Example Tsunami in Indonesia 100.000 families Partial assistance within 2 months
Earth quake Earth quake in in Pakistan Yogyakarta 95.000 65.000 families families
28.021
29.229
53.112
Complete assistance within 2 months
0
0
42.911
Number of families assisted per day
445
555
613
% of goods sourced from the region
13%
68%
100%
Agenda Ambidextrous BPM Three Types of Process Innovation The Value Drivers of BPM BPM Governance
Ambidextrous BPM Delight
Exploration of Processes - Process Innovation Expectations not fulfilled
Expectations exceeded
Exploitation of Processes - Commodity BPM -
Dissatisfaction
Ambidextrous BPM Ambidextrous BPM Exploitative BPM
Explorative BPM
Reactive
Proactive
Today’s efficiency (process model) Problem-focused
Tomorrow’s revenue (process vision) Opportunity-focused
Exclusive (process)
Inclusive (business model, products, services) Transformational Innovation
Transactional Innovation
Agenda Ambidextrous BPM Three Types of Process Innovation The Value Drivers of BPM BPM Governance
Problem-driven Process Innovation - ‘Commodity BPM’
Constraint-driven Innovation Example – Tesco, South Korea
Opportunity-driven Process Innovation - CBA’s Kaching
“The future competition stems from the likes of Facebook.”
Ralph Norris, ex-CEO CBA 11 August 2011
The Focus of Explorative BPM: Innovation Latency Business Value
Problem, Constraint, Opportunity emerges
Value lost through innovation latency
Innovation potential is noticed
Data Latenc y
Analysis Latency
Innovation analysis is conducted
Implementation Latency
Innovation is adopted
Time
Innovation Latency
13
Inspired by Hackathorn, 2002
Agenda Ambidextrous BPM Three Types of Process Innovation The Value Drivers of BPM BPM Governance
How do you know in one year that you have been successful with Business Process Management?
15
The Foundational Value of BPM - Transparency over the Business
• “Switches the light bulbs on” • Allows considering ‘process’ as a factor when making decisions • Transparent modelling and intuitive models
In the Process-Centric Organisation…. “We know we will have succeeded when: • every employee understands their process work and can see their role in the process map, • every employee understands the relevant metrics for success within their process area, • every employee comes to work every day thinking of ways to improve the process.” John Wheeler, former CIO Nova Chemicals, USA
The Values of BPM – BPM with a Purpose External
Quality
Agility
Networking Transparency
Compliance
Internal
Integration Efficiency
Example 1: Employee-driven BPM • • • • •
Focus on employees and their values and beliefs Model current and desired culture Attractive workplace and process design opportunities Model and measure employee satisfaction Preference-based workload allocation
What My Employees Really Want Current Culture
Desired Culture
See Human Synergistics for more details
2 Compliance-driven BPM (Internal)
• Consistency, predictability, conformance
• Sarbanes Oxley, Basel II/III, ISO, HIPAA, COBIT • Process standardization
• Positive deviants • Process franchising
Comply with the Best - Example: Process Mining
Process Design based on ‘Big Data’
Discovered High-level Process I4 Model
Why?
Simple and Quick
Simple and Slow
Comply with the Best - Positive Deviant Case: Retail
Stages of Process Design Competence
26
Unconscious Incompetence
Unconscious Competence
Conscious Incompetence
Conscious Competence
3 Efficiency-driven BPM- ‘Commodity BPM’ Eliminate waste - Lean management
Eliminate variation - Six Sigma
Eliminate bottlenecks - Theory of constraints
Eliminate manual work - Process automation
Eliminate non-conformance - Process compliance
4 Quality-driven BPM (External)
It is not about how the customer participates in our processes, but about how we participate in the customers’ processes. Chr. Potts (2010)
Mobility as a service‌.
5 Agility-driven BPM (External) • • • • • •
Flexibility, adaptability, ‘dynamic capability’ Ease of process modification Innovation/ideas management processes ‘Pockets of creativity’ Positive deviant processes Context-aware processes
Before
After
Status Contrast: Customer Contact Centers
Context-Aware Process Execution – Operating in alternative modes
6 Networking-driven BPM (External) • • • • •
Integrate external partners and events Connect processes with digital aggregation points Embed processes in social media platforms Location-aware processes Social BPM
Triage Processes Based on Connectedness - Audi, Gilt, Las Vegas Palms Casino Resort
34
Process-aware Social Media
Agenda Ambidextrous BPM Three Types of Process Innovation The Value Drivers of BPM BPM Governance
Successful Management of Value Chains requires‌
Culture Strategic Alignment
Process
People
Business Success IT
Success Governance
Methods
Program Manager - Integration into Corporate Governance -
Process Methodologist - BPM Capability -
Process Owner
Process Leader
- Process Accountability -
- BPM Delivery -
Process Worker - Process Execution -
Competition or Cooperators?
Product Manager Functional Manager
Regional Manager Customer Manager
Temporary Empowered Process Owner The Spectrum of Process Ownership 100%
Process Attention
Local Accountability
Process does not matter
Process is core of strategy
Process has senior accountability
0% low
high
Seniority of Process Owner
It is NOT about what (capability),
but what we (affordances).
BPM can do
can do with BPM
Michael Rosemann Information Systems School Science and Engineering Faculty Queensland University of Technology e m.rosemann@qut.edu.au w www.michaelrosemann.com t ismiro