What are the classical factors of successful BPM? How should we include loose coupling, social media and agile methods (like Scrum and Kanban) in our BPM-approach?

1. Prof. Dr. Ayelt Komus
Struktur  Technologie  Mensch
Success Factors
And New Perspectives
Of BPM
To Enable Scale
Process Summit Q4, 2012
Leading Processes to Enable Scale
October, 23rd, Wiesloch - Germany
Prof. Dr. Ayelt Komus
BPM–Laboratory
University of Applied Sciences Koblenz
www.komus.de
komus@hs-koblenz.de
www.twitter.com/AyeltKomus
www.komus.de

2. Telegraphy
http://commons.wikimedia.org/wiki/File:Nokia_evolucion_tama%C3%B1o.jpg
© Ayelt Komus www.komus.de @AyeltKomus 2

3. Telex
http://commons.wikimedia.org/wiki/File:Fornebu_telex_central.jpg
© Ayelt Komus www.komus.de @AyeltKomus 3

4. Fax Machine
http://commons.wikimedia.org/wiki/File:Fax-amarys.jpg
© Ayelt Komus www.komus.de @AyeltKomus 4

5. Mobile Phones (Nokia)
http://commons.wikimedia.org/wiki/File:Nokia_evolucion_tama%C3%B1o.jpg
© Ayelt Komus www.komus.de @AyeltKomus 5

6. Long-Term Technology
© Ayelt Komus www.komus.de @AyeltKomus 6
© pio3 - Fotolia.com

7. Long-Term Asset: Business Process Management
Top
Management
Department Department Department Department
A B C D
Product 1
Product 2
Product 3
© Ayelt Komus www.komus.de @AyeltKomus 7

8. Long-Term Asset: Business Process Management
Top
Management
You
Department can not not manage processes!
Department Department Department
A B C D
Product 1
Good BPM is a sustainable business advantage!
Product 2
Product 3
© Ayelt Komus www.komus.de @AyeltKomus 8

9. BPM And Business-Success Go Hand-In-Hand
82% ‘know’ or ‘believe’ their EBIT-margin is above industry average
How successful was your company compared to
other companies in the industry?
45% 41%
40% 35%
35%
30% 24%
25%
20%
15%
10%
5% 0% 0% 0%
0%
Source: BPM Best Practice-Study – Prof. Komus – FH Koblenz
© Ayelt Komus www.komus.de @AyeltKomus 9

10. BPM-Survey: Managed BPM And Profit Margin
Higher profit margin with managed BPM
(Median 6-8% vs. 4-6%)
25,00%
20,00%
Percentage of Companies
15,00%
Managed BPM
"Gezieltes BPM"'
"Keinmanaged BPM-Activities
No gezieltes BPM"
10,00%
Median
5,00%
0,00%
bis 2% 2-4% 4-6% 6-8% 8-10% 10- 20- 30- 40- über
20% 30% 40% 50% 50%
Profit Margin
Source: BPM-Survey, Prof. Komus – FH Koblenz
© Ayelt Komus www.komus.de @AyeltKomus 10

11. BPM + 6 Sigma: BPM And Profit Margin
Higher Profit Margins For BPM-Companies
Source BPM + Six Sigma study, FH Koblenz
© Ayelt Komus www.komus.de @AyeltKomus 11

12. Company’s Success
How successful do you consider your company to be looking back at the last 3 years?
deutlich erfolgreicher als andere Unternehmen
much more successful 7%
der Branche
erfolgreicher als andere Unternehmer der
more successful 38%
Branche
ähnlich erfolgreich wieas successful as other
about andere Unternehmen
44%
der Branche
companies in industry
weniger erfolgreich als andere Unternehmen
6%
der Branche less successful
deutlich weniger erfolgreich als andere
Unternehmen derless successful
significantly Branche 1%
uncertain – no opinion
unbekannt - keine Meinung 2%
n=81
0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%
89% of BPM-study-participants are at least
as successful as other companies in same industry
Quelle: Studie Qualität im BPM – www.q-in-bpm.info
© Ayelt Komus www.komus.de @AyeltKomus 12

13. BPM-Laboratory
www.
www.
Status-
BPM-ERP-
Quo-
Update
www. Agile .de
Status-Quo- .de Praxis-
Chemie- BPM forum
Pharma
.de
Laboratory BPM&ERP**
www.
BPM- BPM- www.
www.
BPM6Sigma. IT-Radar
Survey de Best Q-in-BPM .info
BPM Combination Practice .info
Today’s and
in SME of BPM Expert future
and with other Interviews Quality.
topics In
large methods with BPM- in BPM
BPM and
enterprise (esp. 6Sigma) Best Practice ERP
Companies
BPM-Umfrage (Studie)
BPM-Check (Interactive Maturity Model)
Empirical Studies
Practical Experience
BPM-Expertise
BPM: Business Process Management ** www.bpmerp.de *** Worskhops/Trainings
© Ayelt Komus www.komus.de @AyeltKomus 13

14. Books
What are the What does the BPM
success factors of of BPM-Best-
Wikipedia and other Practice-Companies
to learn from in the look like?
field of BPM? BPM-Success
How to use Factors of Deutsche
Social Media Bank, Miles & More,
in the organization? Bayer, Generali and
many other
Other Publiactions: www.komus.de/publikation
© Ayelt Komus www.komus.de @AyeltKomus 14

15. BPM Best Practice-Study
 Participants:
Bayer HealthCare AG, Cosmos Direkt, Deutsche Bank AG,
DZ Bank AG, E.ON Energie AG, EDEKA Minden-HannoverIT-/
logistic service GmbH, EnBW Energie Baden-Württemberg AG,
Finanz Informatik Technologie Service GmbH & Co. KG, Generali
Deutschland Holding AG, Lufthansa Miles & More, Nordenia
Deutschland Gronau GmbH, Paul Hartmann AG, Siemens AG, Siemens
Healthcare, VIS Informatik GmbH (Generali Wien), Volkswagen AG,
Watt Deutschland GmbH
 Distribution by size*
• 63% – very large-scale enterprise (7 DAX-Companies)
• 25% – large-scale enterprise (GU),
• 13% – midsize companies (MU)
* Segmentation based on number of employees and turnover; difference to 100% due to rounding errors
© Ayelt Komus www.komus.de @AyeltKomus 15

16. Success Factors And New Perspectives To Enable Scale
 Success Factors
 New Perspectives
 To Enable Scale
© Ayelt Komus www.komus.de @AyeltKomus 16

17. 4 Areas Of Successful BPM-Systems
People
Strategy
Structure Technology
© Ayelt Komus www.komus.de @AyeltKomus 17

18. Areas Of Successful BPM-Systems
People
Strategy
Structure Technology
© Ayelt Komus www.komus.de @AyeltKomus 18

19. BPM-Strategy-Alignment
82% BPM Best Practice-Companies
align their BPM to Business Unit- or Company-Strategy
Only 18% “systematic documented process”
65% “implicit process”
Best Practice BPM–Leaders have a
very good understanding
of business needs and goals.
Source: BPM Best Practice-Study – Prof. Komus – FH Koblenz
Quelle Bild: http://commons.wikimedia.org/wiki/File:NonSynchronousGearBoxSF.jpg
© Ayelt Komus www.komus.de @AyeltKomus 19

20. Immediate Value- In Short Term!
© olly - Fotolia.com
© olly - Fotolia.com
© Ayelt Komus www.komus.de @AyeltKomus 20

21. Areas Of Successful BPM-Systems
People
Strategy
Structure Technology
© Ayelt Komus www.komus.de @AyeltKomus 21

22. Linking IT-Systems And Models
 only 41% realized links between business models and IT-models
 only 25% realized links between IT-systems in production and business models
BUT:
 71%: development of IT-applications based on process-oriented methods
connection between
IT-systems and models
is surprisingly poor
 “Round-Trip” is not
very common yet.
Exception: BPMS
But more often than not
BPMS-round-trips are not
connected to “true”
business modelling-world
Gartner‘s Businness Process Improvement Cycle
Source: BPM Best Practice-Study – Prof. Komus – FH Koblenz
© Ayelt Komus www.komus.de @AyeltKomus 22

23. From Business To Technical Perspective Of Modelling
First workshop Before technical implementation
TIME
Diagrams: courtesy of Siemens
© Ayelt Komus www.komus.de @AyeltKomus 23

24. The Beauty Of Models
© Anna Khomulo - Fotolia.com
© Ayelt Komus www.komus.de @AyeltKomus 24

25. All Models Are Models
The Beauty Of Wrong
http://en.wikipedia.org/wiki/File:GeorgeEPBox.jpg, abg. 16.4.2012
“Essentially,
all models are wrong,
but some are useful.”
Long-term-thinking is crucial!
Who will maintain the process-model?
George E. P. Box:
© Anna Khomulo - Fotolia.com
© Ayelt Komus www.komus.de @AyeltKomus 25

26. Areas Of Successful BPM-Systems
People
Strategy
Structure Technology
© Ayelt Komus www.komus.de @AyeltKomus 26

27. Process Managers
59%
60%
 PMs are widespread (82%)
50%
40%
 PMs with full line management
30%
competencies concerning employees
18%
20% in relevant processes only 12%
12% 12%
10%
0%
0%
 Pragmatic approach of combining
process approach with existing
managerial structures
Source: BPM Best Practice-Study – Prof. Komus – FH Koblenz
© Ayelt Komus www.komus.de @AyeltKomus 27

28. BPM Center Of Excellence
 BPM Center of Excellence in almost all Best Practice-Companies
 No line management structure between Center of Excellence and
process managers
 Typical Tasks
 Definition of standards
 Centralized services
 Quality Management and Quality Assurance
 Responsible for Technical BPM-Infrastructure
Source: BPM Best Practice-Study – Prof. Komus – HS Koblenz
Quelle Bild: ttp://commons.wikimedia.org/wiki/File:Heliocentric_solar_system.png
© Ayelt Komus www.komus.de @AyeltKomus 28

29. The Big Divide: Technical And Business BPM
© Ayelt Komus www.komus.de @AyeltKomus © eurobanks - Fotolia.com 29

30. Areas Of Successful BPM-Systems
People
Strategy
Structure Technology
© Ayelt Komus www.komus.de @AyeltKomus 30

31. It’s The People, Stupid!
© Ayelt Komus www.komus.de @AyeltKomus 31

32. Defined Standards And Reality
© Ayelt Komus www.komus.de @AyeltKomus 32