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Tim Hornung MS, SAP Joel Adler Ph.D. UPenn
The SAP
Business Transformation Management
Method (BTM2) parallels with DYNAMICS/P3
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What is Organizational Dynamics at Penn about?
Dynamics Concentrations
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Alignment of BTM2 & DYNM/P3
A rare industrial situation that sees its business strategy inextricably tied
to these two principles of Penn Organizational Dynamics
•Holistic approach
•Balance of Process and Behavioral perspectives
Mapping of Content of the P3 concentration
•Project Management
•Program Management
•Risk Management
•Portfolio Management
•Business Process Management
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BTM2
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63% of the world’s
transaction revenue
touches an SAP system.
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The SAP mobile platform
reliably delivers 1.8
billion text messages
worldwide every day.
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SAP HANA can increase
analysis speed by more
than 10,000x, equal to
walking from California to
New York in 6 minutes.
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Our customers
produce 85% of the
world’s pet food.
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Drivers for Business Transformation (BT)
Fundamental and complex changes
Technological innovations
(e.g. Information and communication
technologies)
Increasing globalization
(that leads, for example to stronger
competition)
Pressure for sustainability
(which results in changed
customer preferences or
regulations)
Changing workforce
(such as increasing
global mobility)
Radical changes of
economic conditions
(e.g. Financial crisis)
What is Business Transformation (BT)* – Excerpt
Business transformation implies fundamental and complex organizational changes within as well as across
companies alongside the value chain; business transformation can also radically alter the company's relations
with the wider economic and societal environment.
What is Business Transformation (BT)* – Excerpt
Business transformation implies fundamental and complex organizational changes within as well as across
companies alongside the value chain; business transformation can also radically alter the company's relations
with the wider economic and societal environment.
Drivers for BT:
* www.fhnw.ch/iwi/bta Ö Business Transformation Research.
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Business Transformation Academy
A global, trans- and interdisciplinary network of Thought Leaders
Academics / Institutes
Customers / Professionals
SAP Experts
New: SAP Partners
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FindingsFindings
Low success rate of business transformation projects (less than 40%)
Source: Isern et al. (2009)
Lack of holistic management approaches
Source: Winter, Uhl (2011)
Low success rate of business transformation projects (less than 40%)
Source: Isern et al. (2009)
Lack of holistic management approaches
Source: Winter, Uhl (2011)
Business Transformation Management
Call for action
X 25% Failure because of
technical reasons
e.g. demands can not be mapped,
sizing problems, problems with
connecting legacy systems
X 75% are failing because of
non-technical reasons
e.g. non acceptance of the solution, skill
problems, communication problems,
problems with project resources
Source: Seven Reasons Why
Information Technology
Projects Fail (2011)
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The BTM2 – Big Picture
Enablement
Program/Project
Management
Program
Planning and
Governance
Program & Proj.
Integration
Mgmt
Program &
Project Scope
Mgmt
Program &
Project Time &
Cost Mgmt
Program
Quality Mgmt
Program
Human
Resource Mgmt
Program
Procurement
Mgmt
Risk
Management
360 Strategic
Risk
Assessment
Deep dives for
strategic risk
areas
Assess
transformation
business case
Define risk
strategy
Risk
Management
Execution
Risk Monitoring
Identify
additional
improvement
Risk Mgmt. as
part of Board
Governance
Competence &
training
management
Competence
strategy
Training need
analysis
As-is analysis
Gap analysis
Curriculum
development
Training
preparation
Training
Evaluation &
improvement
Program
Reporting
Organizational
Change
Management
Set-up &
governance
Stakeholder
management
Change agent
network
Communication
management
Performance
management -
Project team
Performance
management -
Business
Change
readiness
assessment
Change
monitoring
Processes
Management
Determine
scope of
analysis
From template
to bespoke
inventory
Identify
improvements
/add attributes
Map selected
processes
Plan process
implementation
Implement
processes
Evaluate
processes
Establish CIP
Value
Management
Baseline
analysis
Value
estimation
Detailed
business case
Agree
ownership for
realization
Plan benefit
realization
Execute benefit
realization
Review and
evaluate results
Establish
potentials for
further benefits
Meta
Management
Orchestration of individual disciplines: Guidelines, Leadership, Culture, Values and Communication
IT
Transformation
Management
Business and
IT Capability
Assessment
To-be analysis
Gap analysis
IT roadmap
plan
Solution
architecture
design
IT Deployment
plan
IT Operations
& Service
Optimization
IT Lifecycle
Management
Strategy
Management
AS-ISData
Collection
Analysis of
needs &
maturity level
Design
business vision
Design
Business Model
Integrated
transformation
plan
Business Case
Organizational
model
Risk analysis
Direction
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EnvisionEnvision
Strategy Management
Orchestration of individual disciplines: Guidelines, leadership, culture, values, and communication
Business Transformation Management Methodology (BTM²)
Disciplines and deliverables in detail
Meta
Management
EngageEngage TransformTransform OptimizeOptimize
Strategy to be approved by decision makers
Project startup and
AS-IS Data collection
Analysis of transformation
needs and causes
(80/20 rule)
Design
Business Vision
Design
Business Model
Define integrated
transformation plan
Plan benefit
realization
Detailed benefit
estimation
Benefit review
and evaluation
Realize
benefit
Establish potentials
for further benefits
Value
Management
Risk
mitigation plan
Risk
Identification
Execute risk
mitigation plan Risk monitoring Review and evaluate risks
Risk
Management
Process to-be
design
Business process
analysis
Process
evaluation
Process
implementation
Run, monitor
and optimize
Business
Process Mgt.
IT deployment
plan
Solution
architecture
Plan
IT operations
IT deployment
and testing
IT lifecycle
management
IT operations &
service
optimization
Transformational
IT
Management
Change
monitoring
Execute
change plan
Improve org.
change
readiness
Ensure
sustainable
change
Organizational
Change Mgt.
Training
Execution
Training
preparation
Need, as-is and
gap analysis
Transfer, application
and evaluation
Competence &
Training Mgt.
Program/Project
planning
Program/Project
initiation
Program/Project
realization
Program/Project closure Program and
Project Mgt.
Stakeholder,
communic. and
performance mgt.
Set up change
plan
4
1
2
5
3
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BTM² - Strategy Management
Portfolio of strategic options
Transformation readiness
low
high
low high
Strategic
redirection
Expand core business,
transfer and development
Ongoing
observation
Risks and opportunities
Overcome stakeholder
crisis
Increase readiness through
sensitization of stakeholders
Consolidation & Focus:
Focus on core
competencies/business,
Reduction of overcapacities
Design business model: 4 strategic options
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BTM² - Strategy Management
Transformation need analysis
Stage 0 Stage 1 Stage 2 Stage 3 Stage 4 Stage 5
low
high
Flexibility to react (time and options) lowhigh
Pro-active
management
Pro-active
management
Lack of
awareness
and knowledge
Lack of
awareness
and knowledge
Lack of
stakeholder
commitment
Lack of
stakeholder
commitment
Lack of
strategy
Lack of
strategy
Lack of business
success
Lack of business
success
Negative impacts not
yet visible
Blockade of necessary
transformation efforts
Capital consumption,
negative cash flow
Loss of customers
Unclear operating results
Sustained
success
Lack of liquidityLack of liquidity
Consideration of different stages: Decreasing flexibility with increasing pressure
Transformation stages
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Organizational Dynamics
and
P3
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Alignment of BTM2 & DYNM/P3
A rare industrial situation that sees its business strategy
inextricably tied to these two principles of Penn Organizational
Dynamics
•Holistic approach
•Balance of Process and Behavioral perspectives
Mapping of Content of the P3 concentration
•Project Management
•Program Management
•Risk Management
•Portfolio Management
•Business Process Management
39. © 2013 SAP AG. All rights reserved. 39Public 39
Mapping of Dynamics/P3 courses to BTM2
Processes Management
Risk Management
Competence & Training Management
Organizational Change Management
Strategy Management
IT Transformation Management
Value Management
Meta Management
Managing Project Portfolios, Bayney
Group Team Dynamics: Kaminstein, Zane
Coaching Others to Manage Conflict, Napier
Organizational Culture Change, Vanderslice
Mastering Organizational Politics and Power, Eldred
Knowing Yourself: The Coach as an Instrument of Change,
Napier
DirectionEnablement
Systems Thinking: Pourdehnad
Complexity, Sustainability, and Systems Thinking,
Barstow
Organizational Essentials for Leadership, Choukroun
Program/Project Management
Organizational Project Management,
Choukroun
Program Management, Heaslip
Managing Project Risk, Hornbacher
Organizational Risk Management, Combrick-Graham
Process Improvement, Stankard
Business Process Excellence, Kirchmer
The Art and Science of Organizational Strategy and Planning,
Choukroun
Organizational Diagnosis, Kaminstein, Zane
Effective Entrepreneurship and Leadership, Keech
Is Bigger - Inevitable, Better or Worse in Organizations?, Licht
Psychodynamics in Organizations, Hirschhorn
Leader-Manager as Coach, Russo
Stories in Organizations: Tools for Executive Development,
Greco
Building a Business Case for Sustainability, Barstow,
Nuessle
Organizational Ethics and Integrity, Fielder
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Discussion
41. 41
Thank You!
Contact information:
Tim Hornung
Practice Manager, Business Transformation Services
Tim.Hornung@sap.com
920-791-0354
Joel Adler
P3 Studies Leader, Organizational Dynamics
University of Pennsylvania
adler@sas.upenn.edu
610-940-1941
