Graduate Project Presentation

Presentation by: Dimitris KosmidisDec. 20, 2007

Presentation Title : End-2-End Business Process InnovationGraduate Project on Technology Management

Program Degree: MSc in Management of Business, Innovation & Technology (MBIT)

Supervising Professor: G. S. Yovanof

Contents

Preface (4’)Description (5’ / 9’)Definition (5’ / 14’)Market (5’ / 19’)Strategy (4’ / 23’)Proposition (5’ / 28’)Management (3’ / 31’)Financials (4’ / 35’)Conclusion (3’ / 38’)

3

Preface

End-2-End Business Process: is about addressing business information and processes across organizational and technological silos.

Innovation: involves (1) introducing something new, which can be (2) an idea, a method or a device.

Scope: we will not discuss “a new concept” here. Innovation in this presentation will mostly relate to the use (flow) of master-data, meta-data, etc., in such a way, to enable visibility and availability of key information across the enterprise.

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Business Process Experts

The Business Process Expert is neither a traditional developer nor a traditional business analyst, but is able to apply the concepts, metrics, and performance objectives of business in the analysis, design, and optimization of IT implementations capable of executing and monitoring cross-functional processes. Such a role demands a common language that bridges the worlds of business and IT as well: the Business Process Modeling Notation (BPMN), a standard from Object Management Group (OMG).

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BPMN / BPMS

What is BPMN: Business Process Modeling Notation (BPMN), is a graphical notation for modeling business processes. A BPMN model is essentially a diagram of the process flow, but a process model is more than a drawing.

Fig.: BP General Architecture.

Description

Innovation & Business Process Change

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Innovation in the Context of Process Change

The best known methodology associated with Six Sigma is DMAIC (Define, Measure, Analyze, Improve, and Control).Supply-Chain Operations Reference (SCOR) is the Supply Chain Council's supply chain framework. It is also the name of a notation and a methodology defined by the SCC.

Fig.: The O'Reilly-Tushman Innovation Continuum.

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Innovation & Process Change

Fig.:...

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Enterprise Architecture

Fig.: An Enterprise Architecture Performance Reference Model

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Zachman Framework

Definition

Enterprise ModelingOverview on Business Process

Methodologies

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SOA

Service Oriented Architecture (SOA) provides a blueprint for services-based, flexible business solutions. SOA helps companies create a common collection of business oriented capabilities that are abstracted from their underlying technologies and organizational boundaries. This is fundamentally different from traditional application development approaches, which usually focus on single applications. Service-Oriented Architecture is based on three key principles:

Re-use.Standardized service definition.Holistic requirements and design.

Fig.: The “SAP Enterprise” SOA stack.

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ITIL v3

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The IT Organization

Fig.: The IT Organisation’s ‘Front Office’ and ‘Back Office’ Processes (Source: newScale, Inc.).

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The Service Catalogue and the CMDB

Tab.: The Service Catalogue and the CMDB (Source: newScale, Inc.).

Market

The State of the BPMS Market

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What is happening with BPMS?

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The Technology Adoption Curve

BPMS & EAIWorkflow & Process Modeling

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Organization Maps

Fig.: An Organization Map

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ITIL v3 Application e.g.

DMAIC (Define, Measure, Analyze, Improve, and Control).Continual Service Improvement (CSI) is an important phase in the IT service management life cycle; since business demands evolve and change over time, the ability to continually meet and exceed the business requirements becomes critical.

Strategy

Organization Analysis vs. Organization Transformation

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The First Step of BPM

Consider the three technologies that companies are presently using for process discovery: BPA (IDS Sheer), BPMN Modelers and Microsoft Office applications (Visio).www.oasis-open.org (Business Process Execution Language, BPEL), www.bpmn.org (Business Process Management Notation, BPMN), www.wfmc.org (XML Process Definition Language, XPDL), notation, terminology & semantics.

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Object Management Group

Tab.: OMG's Standards Map to the Zachman Framework.

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A BP Ontology e.g.

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Innovation vs. Complexity

Currentbusinesssystem

Currentbusinesssystem

Model T:zero-complexity

baseline

Model T:zero-complexity

baseline

Innovationfulcrum

Innovationfulcrum

Cost out the newone-productprocess andestimated impacton quality

Add optionsback in to meettrue customerdemand

UnderstandHow processesChange asComplexity isLayered back in

Fig.: Finding your Model T: ref. HBR.

Proposition

Tight Integration and Efficiency vs. Flexibility

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Value Chain & Value Nets

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Component Business Models e.g. IBM

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Business Maps

Tab.: SAP ERP Solution Business Map.

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EUP: Extending the RUP

Management

BPM and Management

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The IT – BM “Bipolar”

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The Business Process Maturity Model

Tab.: Maturity Model Typology.

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The Usage Model e.g. Intel

A usage model is a collection of data that describes system usage within a stated context.Compelling products exist where business, usage, and technology intersect.

Certain segments of a target market might place different values on these areas; early adopters tend to favor new technology over ease of use, for example. However, all three must be present for a product to be broadly successful in its market.

Over time, Intel has evolved from being a “building block” supplier to focusing increasingly on platforms… ref., Innovation Management & Entrepreneurship & Strategic Management Class Cases

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Title

The usage model structure contains 12 components in 3 tiers: supporting data, overview, and usage details. The tiers’ order corresponds roughly to the order that the usage model is created as an artifact of requirements elicitation and analysis activities.In terms of the volume of information, however, the model looks more like a pyramid with supporting data at the base, usage details in the middle, and the overview at the peak.Usage models frequently reuse components, ref., MP3 e.g.

For example, a single usage model could contain many use cases, scenarios, and task flows, but any particular use case, scenario, or task flow could also belong to several usage models.

Financial Aspects

“Research Abstracts”

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SLA / SLM, Outsourcing

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On Demand (SaaS)

The increasing and well-documented emphasis on IT alignment and governance.

The convergence of software and services through the rise of software as a service (SaaS).

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ERP and SaaS (SMB e.g.)

Tab.: Cost element comparison of SaaS and on-premises systems

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The Financial Case for a Service Catalogue

The table outlines example areas where potential financial savings can be made through the use of a Service Catalogue. The figures represent conservative estimates of savings through the introduction of an actionable Service Catalogue for an IT organization with 100 unique IT services and 50,000 service requests annually.

Tab.: Cost element comparison of SaaS and on-premises systems (Source: newScale, Inc.).

Conclusion

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Business Process Modeling: Documenting and implementing business processes of an organization, forms a huge challenge, since there are many issues to address, such as, effectiveness, efficiency, integrity of data and information, timeliness, scalability, compatibility & openness, etc.The final deliverable should address the expectations of sponsors and users, management and workforce. It should answer with a persuasive manner real case, –day to day scenarios.It should be resistant to critique, –transparent and understandable, and at the same time easily adaptable to a changing environment. It should be able to accommodate additional and / or altered requirements with the minimum cost, time and effort. This is the purpose of the use of BPA (eEPC) Tools, BPMN Modelers or MS-Office Applications.Faster and less expensive process creation, through process component reuse.Business user engagementBetter context for process monitoringAgile BPM addresses more problems

Some Concluding Remarks

Thank you.