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The Value of BPM Reference Models Marc Scharsig BPM – Lifecycle (BPM-L) Practice Copyright © 2008 Accenture All Rights Reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture. Accenture November 2010

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Page 1: The Value of BPM Reference Models - APQC BPR … Usage of Process Reference Models Repository design and build Reference Models design and build

The Value of BPM Reference Models

Marc ScharsigBPM – Lifecycle (BPM-L) Practice

Copyright © 2008 Accenture All Rights Reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture.

AccentureNovember 2010

Page 2: The Value of BPM Reference Models - APQC BPR … Usage of Process Reference Models Repository design and build Reference Models design and build

Table of Contents

BPM Th F d ti• BPM – The Foundation

• The Benefit of Process Reference Models

• Process Repositories as Enablers of Reference Models

• Case Studies

• Bottom Line / Q & A

2Copyright © 2010 Accenture All Rights Reserved.

Page 3: The Value of BPM Reference Models - APQC BPR … Usage of Process Reference Models Repository design and build Reference Models design and build

BPM is a management discipline that provides structure and governance in a business process environment

BPM links business strategy with IT / people based operations. It provides an integrated approach from design to execution and controlling using process models which become real

3Copyright © 2008 Accenture All Rights Reserved.

approach from design to execution and controlling, using process models which become real process assets in a repository. Its efficiency and effectiveness is enabled through the application of process reference models and appropriate modeling software.

Page 4: The Value of BPM Reference Models - APQC BPR … Usage of Process Reference Models Repository design and build Reference Models design and build

Business Process Management delivers immediate and sustainable value

Inquiryreceived

Inquiry tocreate from

contact

Customerinquiry

registered

Productconfigured

Registercustomer

inquiry

Configureproduct

EmployeeSales

Inquiry

Sales System(SAP)

EmployeeSales

Inquiry

Sales System(SAP)

Definecustomerdiscount

EmployeeSales

Client Profile

Inquirypositions

Customerinquirycreated

Createcustomer

inquiry

Exportnot allowed

Offer to bedefined

Exportallowed

Check productavailability

Performexportcontrol

Defineprice forproduct

Rejectinquiry

Inquiryrejected

EmployeeExport

SecretarySales

SecretarySales

EmployeeSales

EmployeeProduction

Customerdiscountdefined

Produkt List

Boykott List

Sales System(SAP)

EmployeeSalesProduction

System

Sales System(SAP)

Export ConfirmationForm Export Refusal Form

pcanceleddefined

Customer offerprocessing

Process of BPM

OperationalProcesses

The Value of BPM increases continuously

Agility

Efficiency

Transparency

y

Page 5: The Value of BPM Reference Models - APQC BPR … Usage of Process Reference Models Repository design and build Reference Models design and build

Table of Contents

BPM Th F d ti• BPM – The Foundation

• The Benefit of Process Reference Models

• Process Repositories as Enablers of Reference Models

• Case Studies

• Bottom Line / Q & A

5Copyright © 2010 Accenture All Rights Reserved.

Page 6: The Value of BPM Reference Models - APQC BPR … Usage of Process Reference Models Repository design and build Reference Models design and build

What are Process Reference Models?

Process Reference Models are generic conceptual models that formalize

Reference Models

recommended practices for a special domain.

Representation of Best Practices

Universal Applicabilityof Best Practices Applicability

Reusability

6Copyright © 2008 Accenture All Rights Reserved.

Reusability

Page 7: The Value of BPM Reference Models - APQC BPR … Usage of Process Reference Models Repository design and build Reference Models design and build

Examples of Process Reference Modelsp

APQC VRM

Reference Models

QC

SCOR Accenture BPM Reference ModelsReference Models

SAP BPR

7Copyright © 2008 Accenture All Rights Reserved.

SAP BPR …

Page 8: The Value of BPM Reference Models - APQC BPR … Usage of Process Reference Models Repository design and build Reference Models design and build

Usage of Process Reference Modelsg

Repository design and build

Reference Models

design and build

Business process design

and

Software selection, implementation, and

improvement

p ,development

Change management Best practice analysis

8Copyright © 2008 Accenture All Rights Reserved.

Change management, training, documentation

Best practice analysis and benchmarking

Page 9: The Value of BPM Reference Models - APQC BPR … Usage of Process Reference Models Repository design and build Reference Models design and build

Benefits of Process Reference Models

Starting point and accelerator for

i i

Reference Models

repository creation

Accelerator for business process,

Support of group facilitationp ,

functional, & technical design

Common language

Support of business process

Risk reduction

improvement

Time and cost savings

Standardization

Reusability

9Copyright © 2008 Accenture All Rights Reserved.

Time and cost savings Reusability

Page 10: The Value of BPM Reference Models - APQC BPR … Usage of Process Reference Models Repository design and build Reference Models design and build

Table of Contents

BPM Th F d ti• BPM – The Foundation

• The Benefit of Process Reference Models

• Process Repositories as Enablers of Reference Models

• Case Studies

• Bottom Line / Q & A

10Copyright © 2010 Accenture All Rights Reserved.

Page 11: The Value of BPM Reference Models - APQC BPR … Usage of Process Reference Models Repository design and build Reference Models design and build

Business Process RepositoriesA Simpler Way to Use Reference Models p y

A business process repository is a vehicle to store process models and Sample Business Process Repositoryvehicle to store process models and process-related information in a dynamic easy to re-use format.

Strategic Benefits:• Driver of standardization and

harmonizationharmonization• Driver of centralization /

decentralization• Transparency to support process• Transparency to support process

transformation• Basis for scope management of

software implementations

Business Process Repository

software implementations• Basis for process governance

approach

Page 12: The Value of BPM Reference Models - APQC BPR … Usage of Process Reference Models Repository design and build Reference Models design and build

Business Process RepositoriesA Simpler Way to Use Reference Models p y

Sample Business Process RepositoryOperational Benefits:Operational Benefits:• Easier use / re-use of process

models• Easier integration with underlying• Easier integration with underlying

execution technologies • Greater flexibility in use of process

model contentmodel content• Retention of structured process

knowledgeP t ti f t

Business Process Repository

• Protection of process assets• Enforcement of modeling methods

and standards

Page 13: The Value of BPM Reference Models - APQC BPR … Usage of Process Reference Models Repository design and build Reference Models design and build

Components of a Process Repository Strategyp p y gy

“Go-To-Market”

FormatContent

What content should be included in the Process

What repository structure and format should

Process

the Process Repository?

format should be used?

Repository

What processWhat are the policies,

GovernanceTool/Usability

What process repository tools should deployed and how?

organizational structures, and processes to govern the

13Copyright © 2008 Accenture All Rights Reserved.

process repository?

Page 14: The Value of BPM Reference Models - APQC BPR … Usage of Process Reference Models Repository design and build Reference Models design and build

Table of Contents

BPM Th F d ti• BPM – The Foundation

• The Benefit of Process Reference Models

• Process Repositories as Enablers of Reference Models

• Case Studies

• Bottom Line / Q & A

14Copyright © 2010 Accenture All Rights Reserved.

Page 15: The Value of BPM Reference Models - APQC BPR … Usage of Process Reference Models Repository design and build Reference Models design and build

Case Study 1: Chemical CompanyCase Study C e ca Co pa y

Background:A major chemical company plans to improve its business processes systematically.

The process execution will be done based on SAP software resulting in a majorThe process execution will be done based on SAP software resulting in a major implementation.

Use of Process Reference Models / Repository− Created operating model and process models− Used Accenture Process Reference Models and SAP Reference Models as

accelerators− Managed scope and SAP implementation based on process modelsManaged scope and SAP implementation based on process models− Used process repository later on to manage further process improvement activities

Benefits− 40+ % of savings compared to a traditional approach− Reduced implementation risk through high transparency− Support standardization of selected processes based on “industry best practice

models” − Support professional “process-oriented” training on an ongoing basis

Page 16: The Value of BPM Reference Models - APQC BPR … Usage of Process Reference Models Repository design and build Reference Models design and build

Case Study 2: Logistics Company

Background:A major logistics company rolls out a new long-term strategy and wants to use more

y g p y

synergy effects between business units. This includes the roll out of standards and best practices and the definition of cross business unit processes.

Use of Process Reference Models / Repository− Created a process repository to store process assets in an easy-to-re-use format− Developed processes based on APQC and Accenture Process Reference Models− Built a Process CoE to provide governance and process management

Use of Process Reference Models / Repository

p g p g− Built process community using the repository to exchange best practices

Benefits− Transparency over processes and initiatives avoids redundancies and overlaps− Cost and time efficient process design using industry and company specific best

practices− Improvement of processes based on transparency through process repository− Reduced program risk

Page 17: The Value of BPM Reference Models - APQC BPR … Usage of Process Reference Models Repository design and build Reference Models design and build

Table of Contents

BPM Th F d ti• BPM – The Foundation

• The Benefit of Process Reference Models

• Process Repositories as Enablers of Reference Models

• Case Studies

• Bottom Line / Q & A

17Copyright © 2010 Accenture All Rights Reserved.

Page 18: The Value of BPM Reference Models - APQC BPR … Usage of Process Reference Models Repository design and build Reference Models design and build

Bottom Line / QA

Repository based reference models:Repository based reference models:

Deliver re-usable best practice informationDeliver re usable best practice information

Provide key business benefits, e.g. cost, time, and y , g , ,risk reduction

Easy to use

18Copyright © 2008 Accenture All Rights Reserved.