Case Studies Using Process as the Lever for Enterprise Change

IBM Global Business Services

Business Process Management
g

From Strategy to Reality:
Pulling tactical levers to realise
your business strategy

IBM Insight Forum
August, 2009

© Copyright IBM Corporation 2008
© 2009 IBM Corporation

IBM Global Business Services Business Services
IBM Global

A ‘level-set’ view of BPM will help us to understand the context and
business value of the approach

Business Process Management
- Actively management
- Continuous improvement focus
- Making
M ki process performance explicit
f li it

Processes aren’t Bottlenecks Limited visibility
documented prevent efficiency into performance

Complex hand-offs cross Process change KPIs not defined
multiple processes is cumbersome

2 © Copyright IBM Corporation 2008

IBM Global

BPM encompasses many things, such as methods and systems for
process modelling, workflow, or performance management…..

“A discipline that optimizes the performance of end to end business processes
A end-to-end
(interdepartmental functions, partners, suppliers and service providers)”
Gartner 2009
Business Process Business Process Business Activity
Analysis (BPA) Execution (BPE)
E ti Monitoring
M it i (BAM)

Design and simulate Automate and Track performance,
business processes orchestrate processes processes and operational
across applications activity using key
and systems performance indicators

Pre-built industry accelerators
Accelerate delivery of composite applications using process, services, and data assets
n As
io s es
vis

Established Methods, Standards and Governance accelerators
s
En

Process
governance
Opt

e
tim

fin
De
ize

Execute
Improve quality & agility, reduce risk, and manage change better


IBM Global

The three core BPM components can each deliver business value on their
own, and aggregated value when used together

Business Process Business Process Business Activity
Analysis (BPA) Execution (BPE) Monitoring (BAM)

Business user owned & led Business & IT collaboration Business user owned & led
Visualise, analyse, quantify & Leverage BPA models measures
improve business operations, Link back-end IT system Leverage Key Performance
Support alternate business measures
Execute automated processes
views Graphical dash-board
Capture measures for Monitor
Identify relationships Alerts triggered from measures
Administer automated process
Single point of truth exceptions, user roles,
ti l ‘Actual’ operational metrics data
Actual
permissions and access rights for continuous improvement

Accelerate IT deployment via
re-useable process assets
bl t

Start here to maximise Start here to automate Start here to automate
business value and process execution process insight
control of improvements ASAP ASAP


IBM Global

Why should organisations pay attention to process?

Link strategic intention and
operational effectiveness
+
Link organisation components –

ore
people, process and t h l
l d technology – t
to 75th

actices Sco
Percentile +8% +20%
create performing organisations and above

Define the organisation structure

gement Pra
needed to meet the organisation’s
goals
25th
Leverage synergy between process Percentile 0% +2%
2%

Manag
design and organisation change and below

management with IT development
- Intensity of IT Development +
25th 75th
Percentile Percentile
and below and above

Source: Dorgan, S.J and J. J. Dowdy (2004), “When IT lifts productivity”, McKinsey Quarterly, No. 4.


IBM Global

A staged BPM life-cycle provides the framework for business driven BPM

The BPM life-cycle needs to be deployed with proven methods and standards
life cycle
for BPM development & governance


IBM Global

Case Study: Lands NSW – Industry wide change

State public sector land management authority
authority.
Manages registry of land title information for the state
covering 800,642 kms sq,
800,000 land transactions each year
about 10,000 plans and 40,000 new titles.
Operating the Torrens system since 1863.
The industry includes:
- the surveyor community,
- land developers,
developers
- solicitors,
- municipal government
- intermediary organisations.
28% of dealings are lodged electronically.

Statistical data based on the Lands NSW 07/08 Annual Report


IBM Global

The challenge – how to bring a 19th century industry into the 21st

Technology advances allow cadastral information to be managed entirely
electronically.
- Cadastral xml
- infrastructure and the technology automation
i f t t d th t h l t ti
The industry structure is still based on the paradigms of the late 1800’s..
The processes and expectations remain in the 20th century, the
expectations of the public are 21st
century
Entrenched interests have to be
brought into the fold of the change


IBM Global

The possibility of the technology outstrips the expectations of the
participants by a country mile

Cadastral databases have been able manage the land data for some
time
Cadastral xml and supporting applications enable transfer and
management of data objects and the automation of a number of
human tasks
Long transfer times from regional centres unless electronic transfer is
used –requires high standard broadband networks
Human examination lengthy and is subject to error.
Automated examination is fast immediate and accurate
fast,


IBM Global

In order to realise the potential of the technology, internal Lands NSW
processes had to be updated to account for the technology

Approach - Proof of Concept project
tied with an enablement
- process mapping training using
WebSphere Business Modeler
- Principles of Process re-design and
Lean Sigma
- Process Analytics
- Joint proof of concept project
Linked BPI enablement with graduate
development
d l t
Processes already linked to a
technology development


IBM Global

Two processes were re-designed – this example demonstrates the power of
linking process and technology

Relodgment - D
R l d t Duration and Costs
ti dC t
Resource Duration Resource Cost
60 $30.00
esource Duratio (minutes)

50 $25.00

Resource Cost ($ per plan)
40 $20.00
on

30 $15.00

-18%
20 $10.00
Re

R
10 $5.00
-58%
0 -71% $0.00
Future State - 100%
Future State - Future State - e-Relodge
-88% e-Relodge
Current State SPAC and
Relocate SPAC 2009 2013
Email
Resource Duration 51 42 21 15 6 0
Resource Cost $29.15 $26.08 $12.89 $9.06 $3.23 0
Relodgment Processes

NB: Does not include wait time


IBM Global

The results on the Lands NSW example are dramatic but are achievable in
other operational environments

NZ Public Sector Client
SAMPLE PROCESSES, INCLUDING COMBINED DATA
COSTS ELAPSED RESOURCE CASES
[Dollars]
[D ll ] DURATION [hrs] DURATION [hrs] [units]
[ it ]
CURRENT STATE $358.74 2,088.62 12.53 3272
FUTURE STATE $189.37 270.38 6.22 55
% VARIANCE - 47.21% - 87.05% - 50.36% -98.32%

Australian Agribusiness Client
- Conservatively, $9 million annually from a sub $100,000 engagement


IBM Global

BPM is the mechanism by which the strategy of the business is effected in
the operational environment

Enabling your business to be process centric
enables your strategy t be put into action
bl t t to b ti t ti
Integrating technology and process makes the
machine work for you
Integrating the whole WebSphere suite
significantly enables your capacity to manage
y
your business process continually and be
p y
responsive to change


Case Studies Using Process as the Lever for Enterprise Change

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