Marc Redemann, Director of BPM Consulting, IDS Scheer on Survival of the Process Fittest
In times of turmoil, change, and volatility – people and technology are in flux, but business thrive on the processes they run on. The consistency, speed, and quality of processes are what drives the delivery of products and services to customers and improves the bottom line. The companies surviving the economic storm have been process oriented all along. But becoming “process-fit” is more than applying BPM technology; it’s a cultural mindset. This presentation focuses on what it takes to effectively use BPM to better survive troubling economic circumstances with a process-oriented mindset, culture, and technology.
Redemann opens up talking about BPM market evolution over last 10 years. BPM market in US, for IDS Scheer, is very IT driven. Redemann reminds us that IDS Scheer is being acquired by SoftwareAG. Focus of today’s talk is Enterprise BPM.
Case Study: Business Process Transformation in the Banking Industry
Large brokerage, wealth management, private banking, investment management company. Leading provider of global corporate and investment banking services.
This case is IT driven, Redemann speaks of building central repository prior to making technology decisions. Enterprise Architecture process going from business processes to systems
EA in this case has four dimensions: Business Architecture, Information Architecture, Application Architecture, Technology Architecture. Need to consider all dimensions to do effective enterprise BPM.
Redemann emphasizes that EA understanding is required for BPM, but BPM framework is broader than the EA.
The underlying technology is ARIS, so all information (business strategy, process design, execution, management) is stored in the central ARIS Repository.
Business Process Transformation – Roadmap Steps: Strategy, Design, Implementation, Controlling (management)
Redemann has a lot of detailed slides on the business process transformation methodology, difficult to capture on the fly. The slides will be available when the podcast is published.
The aspects analyzed in the method are: Products, Value Chains, Processes and Organizations. Since the repository is centralized, all models created in analysis are available in implementation and controlling. (In response to question on organization model to execution roles).
Processes are decomposed into Event-Driven Value Chain (EPC). EPC describes the detailed sequence of the process activities. Weak points are identified to definite root-cause and improvements. The EPC includes capturing metrics, such as how long a step takes. (which is not the same as what it should take)
Tons of information comes out of the analysis. Contrasting the Appian talk, you can definitely see Clay’s keynote point about picking the right tool and method for the business problem at hand. There isn’t one “tool” or “method”, but “one solution for a specific problem” (or set of problems).
Now, Redemann is showing us examples of the “as-is” versus “to-be” processes. An interesting piece is the “what-if” financial projections of as-is to to-be. This examples shows a 30% improvement (cost based) and was selected for implementation.
Over the last year, IDS Scheer has focused on new capabilities for automating BPM governance. BPM governance is process centric, so implementing BPM governance starts with process definition. BPM Governance also includes performance management and monitoring.
In summary: Process Analysis to Process Improvement to Process Management