copyright © 2010 appian corporation. all rights reserved. bpm and roi: can process improvement...
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Copyright © 2010 Appian Corporation. All rights reserved.
BPM And ROI: Can Process Improvement Really Deliver a Return on Investment?
Malcolm Ross
Director Product Management
Copyright © 2010 Appian Corporation (Appian). All rights reserved. Appian proprietary and confidential.
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Agenda
Identifying the Right Process for your first BPM project
Rolling-Out a BPM Project Centers of Excellence Continuous Process Improvement The BPM Maturity Model
ROI Case-Study
Copyright © 2010 Appian Corporation (Appian). All rights reserved. Appian proprietary and confidential.
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Identifying the Right Process for BPM
Order to Cash Inventory Management
Employee On-boarding
IT Help Desk
Claim Processing
Ordering
Business Cards
Customer Service
Purchase Requests
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Measuring Value
0 2 4 6 8
Rating
Measuring Value
Current Performance
Breadth of User Base
Frequency of Use
Executive Sponsorship
Financial Value
Strategic Value
Rating Value Current Performance Breadth of User Base Frequency of Use Executive Sponsorship Financial Value Strategic Value
Copyright © 2010 Appian Corporation (Appian). All rights reserved. Appian proprietary and confidential.
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Measuring Complexity
Rating Complexity Integrations Breadth of User Base Size of Process Complexity of Rules Number of Exceptions Maturity
0 2 4 6 8
Rating
Measuring Complexity
Integrations
Breadth of User Base
Size of Process
Complexity of Rules
Number of Exceptions
Maturity
Copyright © 2010 Appian Corporation (Appian). All rights reserved. Appian proprietary and confidential.
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Preparing – Creating a Center of Excellence for BPM
Business Process Director
Change Management Coordinator
BPM Knowledge Manager
Consultant
Business Process Architect
Chief Operating Officer
Process Project Manager
The COE helps facilitate BPM initiatives and disciplines around the organization rather than actual delivery on projects.
COE Responsibilities Prioritize Processes Definition of Process Development Lifecycle (PDLC) Definition of BPM Implementation Methodology Establishment of BPM Standards Establishment of BPM Best Practices Maintenance of Process Library and BPM Knowledge Base Evaluation of Process Performance Review of Architecture / Sizing Parameters
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Roll-Out and Continuous Process Improvement
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Ser
vice
Off
eri
ng
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Appian BPM Maturity Model
Level 1 Level 2 Level 3 Level 4
Enablement Enhancement Excellence
Ap
pia
n B
PM
Pe
rfo
rma
nce
Individual
Project
Program
Enterprise
• Enterprise BPM Roadmap
- Planning & Vision• BPM Center of Excellence
• Solution Architecture & Best
Practices
• Dedicated Services• On-Demand Services
• Health Check• Benefit Analysis
• Quick Start• Turnkey
• Expert Staffing
• Live in 20/40/60• Product & Skills Training
• Knowledge Transfer
Appian Service
Offerings Drive Value
Skilled individuals on the AE software
Copyright © 2007 Appian Corporation. All rights reserved.
Enterprise Rent-A-Car, Southern CA
David Belt
I.S. Manager / Senior Analyst
Business Development
Copyright © 2007 Appian Corporation (Appian). All rights reserved. Appian proprietary and confidential.
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Company Background
Founded in 1957, Family owned, Headquartered in St. Louis, MO
Largest rental car company in North America with offices in UK, Ireland and Germany Ranked highest in customer satisfaction by J.D. Power and
Associates eight out of the last nine years Ranked 18 – Forbes “500 largest Private Companies in America” Fiscal 2007 revenue $9.5 Billion 7,900+ rental branches with 800,000 cars in fleet 65,000+ employees
Acquired Vanguard Car Rental, August 2007 – National and Alamo
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Focus of Implementation
Southern California (Group 32) is the largest operating group with ~85,000 vehicles in fleet across 4 lines of business.
Focus on improving back office processes to increase efficiency.
Vehicle Maintenance and Vehicle Repair (Body Shop) payables represents largest volume of payables activity.
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Business Challenges – Vehicle Maintenance Payables
Challenges High Volume - 18,000+
invoices/month Highly manual process Paper intensive “In-box”
system Cross-functional Geographically dispersed
workforce Complex business rules
inconsistently applied
Manual process hampered our ability to support a consolidated AP initiative.
Transaction Volume
180
185
190
195
200
205210
215
220
225
230
FY04 FY05 FY06 FY07
(000's)
Touchpoints
1.5
2.0
2.5
3.0
3.5
4.0
4.5
FY04 FY05 FY06 FY07
(mils)
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Why BPM as a Solution
Goals Automate non-value added tasks. Expedite workflow between functional areas. Centralized processing / Distributed decisions. Reduce errors through consistent application of complex
business rules. Increase controls through process consistency. Increase productivity through process visibility.
Expected Benefits Consolidation of the AP function Reduction of human touch points
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Vehicle Maintenance Payables Implementation
Overview Available to ~60 employees in 2 departments. Regional Vehicle Repair and Group Accounts Payable.
Development and deployment Ground up re-design of the Vehicle Maintenance Payables process. ~6 months from start of development to 1st go-live. 1 Enterprise Developer and a 6 week quick start with an Appian
resource. Ongoing enhancements post-release.
Rollout schedule 8 week Pilot with 1 Region. Rolled out remaining 12 Regions over 12 weeks. 100% of Maintenance Payables now processed through Appian. 2nd application of Appian (Body Shop Payables) took only 6 weeks
from start of development to pilot.
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Measurable Benefits
Process Efficiency Gains Human Steps to Process an Invoice
Pre-Appian: 9 – 19 Post-Appian: 0 – 7
40% Auto-Approval rate
Process Visibility Pre-Appian
No actionable measure of productivity No visibility to invoices in process
Post-Appian Real-time productivity reporting allows supervisors to actively
manage their staff Able to easily identify where “missing” invoices are held up
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Vehicle Maintenance Payables – AP Home Page
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Vehicle Maintenance Payables – AP Dashboard
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Vehicle Maintenance Payables – AP Dashboard (cont.)
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VM Payables – Regional VR Task
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VM Payables – Regional VR Task (cont.)
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VM Payables – Regional VR Task (cont.)
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VM Payables – Productivity Reporting
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VM Payables – Process Visibility to Users
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VM Payables – Process Visibility to Users (cont.)
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Appian Quick Facts
COMPANYCorporate HQ: Reston, VA (near Washington, DC)EMEA HQ: London, England Founded: 1999 (11 years of profitable growth)
PRODUCTSAppian Enterprise
Rated a Leader in Enterprise BPM Suites by Forrester and GartnerThe world’s most innovative BPM suite
Appian AnywhereOnly Complete BPM Suite Available in an On-Demand SaaS Offering
BPM Applications, Templates and CollaborationAppian for IT Services, Project Mgmt, Marketing Requests, Compliance,
Procurement, HR Recruiting, SharePoint and more
CUSTOMERSCustomers: Financial Services, Mfg, Retail, Telco, Services and
GovernmentDeployed Seats: > 3 million