What is BPM? What is BPM? The fable about the blind man & the elephant BPM Value Position A New New Management Management Discipline Discipline Contin

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Dynamic Process & Process Hole Management : The new Agile BPM Model" Presented by: Seoung Joon. Kim HANDYSOFT Consulting Team Copyright 2008 by Handysoft. ALL RIGHTS RESERVED.

1 Dynamic Process & Process Hole Management : The new Agile BPM Model" Presented by: Seoung Joon. Kim HANDYSOFT Consulting Team Copyright 2008 by Handysoft. ALL RIGHTS RESERVED. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means electronic, mechanical, photocopying, recording, or otherwise without the permission of Handysoft This document provides an outline of a presentation and is incomplete without the accompanying oral commentary and discussion.

2 What is BPM? What is BPM? The fable about the blind man & the elephant BPM Value Position A New New Management Management Discipline Discipline Continuous Process Improvement End-to-End Process Management Business Performance Management A New New Technology Technology Platform Platform Automates human workflow Integrates data between disparate backend systems, Executes business rules controlled by process model Supports a process lifecycle enabling continuous performance improvement. Enhances agility, the ability to respond more quickly to changing business demands [ Bruce Silver Associates 2007 ] A New New Implementation Implementation Style Style The Business Face of SOA BPEL orchestration ESB & Web services BPM has many faces, making it easy to focus on one and lose sight of the whole

3 What is BPM? Drivers to Dynamic Behavior

4 What is BPM? The 3 rd Wave Process Thinking Title 1980 s First Wave 1990 s Second Wave 2000 s Third Wave BPR PI & ERP (Best Practice) CPI System Process Function Process People Application Process System People Information 혁신적개선노력 광범위한작업범위, 비용 시간에비해낮은실행력 Job Manual/Little Automation 변화에대한낮은적응력 Data One-Time Optimization Global Best Practice 가내재된 패키지솔루션중심 IT 수정 / 개선의어려움으로인한투자 / 비용증대 Information Closed-Loop Optimization 프로세스점진적 - 지속적개선 변화에대한능동적대처 Process Focus of IT Most of BPM focuses on structured processes Howard Smith (BPM The 3rd Wave)

defining, automating and institutionalizing structured business processes, the fact

The other 80% of work is completely dynamic.

5 What is BPM? BPM manages Process? "Although traditional BPM solutions have driven significant value to organizations by defining, automating and institutionalizing structured business processes, the fact remains that structured processes account for less than 20% of all work performed today. The other 80% of work is completely dynamic. Derek Miers, president of BPM Focus 20% 80% [ BPM Focus 2007] Currently, there are three parallel universes of work *(source: T. Davenport, Thinking for a Living Boston: Harvard Business School Press, 2005).

today is completely unstructured and dynamic, and cant be addressed by traditional BPM

Hole -Derek Miers, CEO of BPM Focus- Dynamic Process Handle collaboration scenarios

6 What is BPM? Process Hole #1: The World of Noise 80% of the work that goes on within organizations today is completely unstructured and dynamic, and cant be addressed by traditional BPM applications. Hole -Derek Miers, CEO of BPM Focus- Dynamic Process Handle collaboration scenarios within process context Most work happens in a dynamic environment that cannot be modeled in a static way. No executive visibility No way to prioritize No process guidance No accountability Not integrated with core business applications

7 What is BPM? Definition of Noise Most BPM tackles only structured parts of a process Unstructured Process 에서의 Noise Forrester s Definition of Noise

8 What is BPM? Transform Noise Into Information Unstructured Process 에서의 Noise 프로세스의구조화및협업체계구축

9 What is BPM? BPM manages end-to-end Process? Process Convergence : Dynamic Process + Static Process Visibility,Control,Traceability,and Accountability Service Level Improvement

10 What is BPM? HANDY Neo Product - Office Engine Mission Critical Management Tools IM Project Management Portal Status Reports Noise Control Visibility Accountability Agility

11 What is BPM? Initiate and Submit Task From One Form Assign Single or Multiple Tasks Assign work for yourself or another Designate reviewer Indicate deadlines Add formal descriptions and informal comments Enable others to monitor work status via CC Attach documents Decide whether assignees should see upstream dialog

12 What is BPM? Process Convergence Visibility from structured processes through Dynamic processes HANDY BPM BPM v11 v11

13 What is BPM? Activity Monitoring Visibility from structured processes through Dynamic processes HANDY BAM BAM

14 What is BPM? Embed in the Fabric of Daily Work Visibility from structured processes through Dynamic processes - Single UI for Both Ad-Hoc & Structured - Operate within MS Outlook - Integrate with Outlook Calendar - Alerts based on KPIs

15 What is BPM? BPM Life Cycle The Agility Cycle BPM Life Cycle Sense Discover Define Strategize Optimize Model 0 Act Analyze BPM Simulate Decide Communicate Monitor Execute Deploy

16 What is BPM? Power of Dynamic Process Mgmt Challenge of Traditional BPM: Time to Value Project 1 Project 2 Project 3 Cost and Level of Effort Data Gather Model/ Analyze Design Deploy Monitor 90 Days 120 Days 150 Days Time to Value For Traditional BPM (Solves only a portion of processes)

17 What is BPM? Power of Dynamic Process Mgmt Challenge Solved: Dynamic Process Management Immediate Time to Value,Lower Cost & LOE Pro10%ject Process 1 Project Improvement 2 Project Projects 3 Continue to Leverage Traditional BPM Cost and Level of Effort 20% Processes Transition to Structure (BF) More Rapidly Leveraging Unstructured Processes (OE) 70% Immediate Value of Process Improvement With Unstructured Process (OE) Day 1 90 Days 120 Days 150 Days Shorter Time To Initial Value

50% 미만 " -Gartner, 2003- Business View ERP Modules are Rigidly Aligned More

18 What is BPM? ERP Process Coverage & Limitation " 전사업무 Process 중 ERP 를통해처리되는 Process 의비중이 50% 미만 " -Gartner, Business View ERP Modules are Rigidly Aligned More Control & Flexibility Suppliers Engineering Human Resource Finance SCM PLM HRMS Finance Robust Solutions Which Cost less IT View ERP Modules

19 What is BPM? Process Hole #2: ERP Process Hole End-to-End Process 수행시관련 Process/System 간 ERP Process Hole 발생 유관시스템 업무 3 ERP System H T.2 유관 S 업무 1 ERP 업무 2 ERP Module A Module B H. T.1 업무 4 ERP End to End Process Coverage Limitation Function Focus E 업무 8 ERP 업무 6 ERP 업무 5 ERP Standard Process 에대한유연성저하 Cross - Organizational Process 개선미흡 유관시스템 업무 7 유관 H T.2 프로세스부재담당파트장 팀장 H T.3 Process Hole

20 What is BPM? Example : ERP Process Hole ERP Process Hole Example #1 ERP Process Hole Example #2 시설이설통보 부동산팀 임대차계약 담당 시설서비스종료 서비스종료로시설코드전환 ERP-PM 파트장팀장 동일 BP 별지급시채무확인 Process 부재 시설팀 계약팀 철거 임차계약해지 H T.3 N 건물임차 Y 임차해지로시설코드전환 원상복구 원상복구확인서수령 ERP-RE H. T.1 회계부서담당파트장팀장품질담당파트장팀장 H T.3 임차료 월용역료 ERP-AR H. T.1 ERP-AP ILLUSTRATIVE 동일 BP 별채권 / 채무정보연계 건물주에임차해지계획통보 ILLUSTRATIVE H 운영유지보수계약 T.3 임차건물의원상복구완료후임차계약해지담당자에게전달되지않아, 해지업무처리지연으로부적절한임차료지급 BP 별 ERP AR-AP 정보연계미흡, 채권지급검토 / 승인프로세스미흡으로인한장기미수채권이있음에도채권지급. ERP-PM : 설비관리 ERP-RE : 장치관리 ERP-AR : 미수금관리 ERP-AP : 미지급금관리

21 What is BPM? Process Hole #2: ERP Process Hole ERP Process Hole 발생원인 ERP Process Hole 개선방향 Process 준수미흡 프로세스관리 표준화 사전통보프로세스미흡 Monitoring Process 부재사전 / 사후검증프로세스미흡통일된 Process Rule 미흡 ERP 관련 Process의중복 / 누락 프로세스신설 / 보완 BPM Monitoring BPM Workflow BPM Alert 프로세스준수기능 시스템적 Process 준수기능미흡 Process 모니터링및 Alert 기능부재

22 What is BPM? Process Hole Management Prototype 을통해도출된 ERP Hole 사례를유형별로 " 프로세스자산화시스템 (HANDY PAL*)" 에등록, 개선활동에대한이력관리를통해 Process 를지속적으로개선 구축 Image 관리내역 HANDY PAL PAL ERP Hole L4 Process 에 Hole 표시 Hole ERP Hole 1. Hole 개요 ( 발생사례, 유형, ID) 2. Hole 설명도식화 3. Hole 발생원인 4. Hole 개선안 5. Hole 개선시기대효과 6. Hole 이력관리 PAL : Process Asset Library

23 What is BPM? Process Hole Management HANDY PAL PAL

24 What ERP Process is BPM? Bridge Business View More Control & Flexibility Crossing Functional Silos with BPM ERP Hole & Coverage 문제의시사점 Business Process 중심의시스템통합필요 Process 개선대상영역의가시화필요 Application변경관리와 Process중심의변경관리필요 BPM Suppliers Engineering Human Resource Finance BPM Based ERP 기대효과 프로세스를정형화가가능하며, 정형화된업무의준수여부의실시간모니터링 Robust Solutions Which Cost less IT View SCM PLM ERP Modules HRMS Finance Legacy Dynamic Process의 KPI 측정관리체계마련 단순업무처리가자동화되며 Push방식의업무처리가능 신규사원이업무절차및규정을인지하지못한, 단순정산오류등의개선 부서간업무처리연계시 Idle Time 의최소화및 Communication 비용의최소화

25 What is BPM? Agile Enterprise

26 Dual BPM that covers 100 percent of your activity and gives you the ability to create, monitor and execute work in both environments seamlessly Thank You

BSC Discussion 1

BSC Discussion 1 Copyright 2006 by Human Consulting Group INC. All Rights Reserved. No Part of This Publication May Be Reproduced, Stored in a Retrieval System, or Transmitted in Any Form or by Any Means Electronic, Mechanical,