We make strategy operational.

Command and Control for Business Performance

An IDS-Scheer
IDS Scheer Perspective
www.ids-scheer.com

Where are executives focused?

CIO

CEO

Top
op 10
0 Business
us ess
Priorities

R k
Rank

Business process improvement

Attracting
tt act g a
and
d retaining
eta
g new
e
customers

Creating new products and

services (innovation)

Expanding into new markets or

geographies
hi

Reducing enterprise costs

Improving enterprise workforce

effectiveness

Expanding current customer

relationships

Increasing the use of

information and analytics

Targeting customers and

markets more effectively

Acquiring new companies and

capabilities (mergers and
acquisitions)

10

Source: Gartner EXP

(January 2008)
IDS Scheer AG

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Questions for the operations management team

1. Have you identified the core processes that drive business operations?
2. Have you established a master repository of all your process
intelligence?
g
3. Can you associate a process with its effect on Key Performance
Indicators?
4 Can you measure process execution on
4.
on-demand?
demand?
5. Does each p
process have an accountable owner-of-record?
6. Is enterprise-level continuous process improvement within your reach?
Process Excellence

IDS Scheer AG

www.ids-scheer.com

Operational Excellence

Business Performance

Do Process + Structure = Business Performance?

Is there a link between share performance and the use of structured business
improvement approaches using process frameworks such as SCOR?

Higher
Hi h value
l over term
t
Less decline over the
past three months

SCOR Index
I d
S&P

DJI

IDS Scheer AG

www.ids-scheer.com

Business Performance starts with the foundation.

Valuation
Share Price
Top Line Growth
G

Business Strategy

Operational Strategy

Operational Execution

People

IDS Scheer AG

www.ids-scheer.com

Processes

Technology

2/3 of the foundation is impacted by outside forces.

Valuation
Share Price
Top Line Growth
G

Business Strategy

Operational Strategy

Operations
Time in Job
1 in 4 on job <1 yr
1 in 2 on job <5 yrs

People

U.S. Department of Labor

Bureau of Labor Statistics

IDS Scheer AG

www.ids-scheer.com

Non-native workers
14.8% in 2005
15.3% in 2006
23.5M workers

Enabler rather than core

Processes

Hidden costs
Rolling refresh cycles

Technology

Disruptive by design
Outsourcing

Offshoring
6

Process represents the corporate memory and

is the only element in the business foundation
that is 100% under managements control.

IDS Scheer AG

www.ids-scheer.com

Perspective
Predictable business performance is an outcome of consistently
leveraging information through structured processes that are
executed the same way over and over again.

Input

Accurate Information

Optimal Processes
Flawless Execution

1
1.

Persistent

2.

Available

3.

Quality Assured

1.

Repeatable

2
2.

Technology Agnostic

3.

Measurable

1.

Predictable

2.

Efficient

1.

Operationally effective

2.

Continuously improved

3.

Predictable results

What is used?

How is it used?
How well is it used?

Output

Business Performance

IDS Scheer AG

www.ids-scheer.com

BPM and a Master Process Repository drive predictability

and repeatability into work processes and operations

Business
Objective

Accurate
Information

Optimal
Processes

Flawless
Execution

Governance
Method

MDM

BPM

CPM/PPM
BAM

Governance
Technology

Master Data
Repository

Master Process
Repository

Performance
Dashboards

IDS Scheer AG

www.ids-scheer.com

The Master Process Repository is the hub for continuous

improvement and technology independence
Provides a context for how the business operates
Interdependencies of processes
Accountability
Cause & Effect
Drives technology independence
Decouples how the business operates from what it operates on
Sustains operational predictability through technology cycles
Delivers efficiencies
Creates persistent processes across the enterprise
Provides analytics to uncover under- or unutilized processes
Enables accurate costing of (operational) processes
IDS Scheer AG

www.ids-scheer.com

10

How do you start?

IDS Scheer AG

www.ids-scheer.com

11

A Master Process Repository is defined and populated with

customer-specific operational process models.
Enterprise-wide persistency and consistency
Provides context & cause/effect relationships between processes
Ensures quality & predictability of execution

Finance

Supply
Chain

Product
Dev

Graphics
Documents
KPIs
Org Structures
Accountability Maps
Process Costing

Master
Process
Repository

Information
Technology

IDS Scheer AG

www.ids-scheer.com

12

The repository then becomes the strategic asset that

supports multiple enterprise-wide use cases.
Provides audit documentation and histories
Enables views of business as-executed

Cost Analysis

Invest once-leverage widely

Governance

Enterprise BPM
Finance
Operational
p
Measurement
Supply
Chain

Product
Dev

Information
Technology

Graphics
Documents
KPIs
Org Structures
Accountability Maps
Process Costing

Master
Process
Repository

Enterprise
Architecture
Use Cases
Vendor
Selection
SLA
Management
Compliance
Continuous
Improvement

IDS Scheer AG

www.ids-scheer.com

13

How does ARIS help?

IDS Scheer AG

www.ids-scheer.com

14

Holistic BPM with ARIS

Who?
BPM organization

Via?
Procedure model

BPM

ARIS Value Engineering

p y p
Company-specific

How?
Integrated method

Architecture of integrated
information systems
IDS Scheer AG

www.ids-scheer.com

With?
Technology

Why?
Objectives / Strategy

Company-specific
Company
specific

15

ARIS Business Performance Edition

ARIS Boosting
g Business
Process Performance
>> Improve business process performance and
transparency through integrated business intelligence and
process intelligence.
intelligence <<

ARIS Improving Business

Through IT
>> Increase corporate success and protect your
investment through efficient and innovative business
processes backed by profitable deployment of IT. <<

ARIS Ensuring Business

Compliance
>> Leverage efficient, process-based risk and compliance
management
a age e t for
o reliable
e ab e control
co t o and
a d enforcement.
e o ce e t <<

IDS Scheer AG

www.ids-scheer.com

16

ARIS Platform

ARIS Process Performance Manager

ARIS Process Event Monitor
ARIS Performance
P f
D
Dashboard
hb
d
ARIS Risk & Compliance Manager

ARIS BSC
ARIS Six Sigma
ARIS Business
B i
O
Optimizer
ti i
ARIS Business Simulator

ARIS Business Architect for SAP

ARIS SOA Architect
g
ARIS Business Rules Designer
ARIS BI Modeler

ARIS Business Architect

ARIS Business Designer
ARIS Business Publisher
ARIS IT Architect
ARIS IT Inventory

IDS Scheer AG

www.ids-scheer.com

17

Visibility and Alignment enable command & control

Visibility
 Linking processes to the
y support
pp
make
KPIs they
impact highly apparent
Alignment
g
 Business strategy to
Operational Execution
Command
 Automated monitoring &
alerts drive constant
oversight and incident
avoidance
Control
 Rapid assignment of
accountability and
integration to modeling tools
reduces time-to-solution
IDS Scheer AG

www.ids-scheer.com

18

Perspective
Effective measurement and management of business
processes provides the foundation for operational excellence
1.

Discovery of existing processes

2
2.

Assessment of process value and performance

3.

Management and improvement of the process

Focus on the HOW, not the WHERE!

IDS Scheer AG

www.ids-scheer.com

19

Process Discovery
AS-Documented Process

AS-Executed Process

Input from Account Team

Account Team
informs
Manager of
major project

Manager
informed
of maj or project
from other

Receive
customer
plans
PM reports
Project Status
PM Plans
Customer
Requirements

Customer
Request

Inform
Sales

Form sent from Oswestry Capaci ty Managment

0.50 Day(s)

SDH PM
not required
(End)

Raise
Customer
Order

Front
Office

Customer
request (maj or
project)

Route
not
investigated

SDH23
received

Decide to place
order with
tactical planner

Deci de no new
orders requi red

Links PM plans
Customer Reqs &
Tactical Planning

Requirement
generated
as result of
capaci ty

Dead end

Tacti cal
Planning

Li nks PM Plans
Customer Requirements
& SE Capture Order

New quote
request
from PM

RF's sent for

Fi nancial
authorisation

SE Capture
Order

Li nks Supervise contract

& Tactical Pl anni ng

RFs sent to
CSP Contracts

Out of Scope - not Modelled

New quote
request from
customer

Supervise

Order being
processed

Response
fil ed

CRF completed
and

Dead end

Pass Mi ssi ng
informati on
to Issuer

Links Supervise Contract

& COW supervise
External Works

Li nks SE Resolves
& Issuer Enters Order

Links JC analyse
del ay & WBP
601 Task
Issuer
Enter Order

0.50 Day(s)

Term Point
Allocation

CSPC

Missing
i nformation
request (Issuer)

Vali dation job

generated on
CMC queue

Wideband
Planner

NJRA closed

Li nks Issuer Enter

Order & JC Order
Vali dation

Dead end - route

not investi gated

Progress i nfo
passed to WBP

Dead end - route

not investi gated

Progress i nfo
passed to NSD

601 task to
Wideband
pl anner

Dead end - route

not investi gated

Progress i nfo
passed to PM

Dead end - route

not investi gated

Progress i nfo
passed to CSM

DL proact job
on queue

Delay enqui ry
from customer

Progress update
t SE
to

Detailed
Pl anning

SE Analyse
D l
Delay

Proact j ob
complete

Not modelled

Li nks to
External Works
carryi ng out DL works

JC Analyse
Delay

Links Issuer Enter

Order & Search
for Y Code

Term point
Allocation
complete

SE respond
to Customer

Li nks JC analyse
del ay & SE
responds
d tto
Customer

Links Issuer Enter

Order & SE
Resolves

Links Issuer Enters

Order & NTE Task

A601
Job Control
Initiated

INAC task
live

Links Detailed
Pl anning
& Supervi se Contract

Route not investigated

SE
Resolves

0.50 Day(s)
Job
Control

NJRA

Ready for
install ati on

Dead end

Links SE Capture
Order & Issuer
Enter Order

Links SE analyse delay

& JC analyse delay

Progress
request
to JC
(SE)
Requi res
further
Investigation

Missing
information
received (JC)

Budget

Links Issuer chase

missing i nfo & JC
Order Vali dation

Re-Issue
601 Task
to WBP

JC order

Y Code
Search
Slough/
London

Links WBP Si te Survey

& NSD Job Sel ection & Clean

Links JC Order
Val idation &
Search for Y Code

IM Plan Si tes
for Capaci ty
Requi res
further
Investigation

NSD Q Manager
chase mi ssi ng
info/clean data
Glasgow

010/O534
l ive (Link)

Solution
Planning

2.00 Day(s)
Identification
of Customer
SDH and Parenting

Missing
information
request (JC)

Network
Solution
Design

Li nks chase missing

info & order validation

Li nks JC Order
Validati on & NTE
allocation

Links Search for Y

Code & Q Mgr
sel ects NTE Task
A29/O532/O530

NJRA
closed
Li nks Issuer chase missing info
& WBP Si te survey &WI

0532

Rel evant NSD

informed of new
proj order (Link)
Mi ssi ng
information
passed to NSD
(End)

4.00 Day(s)

Links Queue Manager sel ects NTE

& Route/Assign Glasgow

New j ob in
queue

Missing
information
not avail able
(WBP)

Links Issuer chase

missing info &
WBP Site Survey

Issuer chases
mi ssi ng info

Customer
SDH and Parenting
identified

NTE Tasks
(129/532)
London/Glasgow

Li nks Search for Y

Code & NTE Task

Links NSD Job sel ection/Clean

& JC Analyse delay

Links NSD Job Selecti on/Clean

& NSD Route /Assi gn

Order i n Job
Controller's
Queue (Link)

154 Task
li ve (Link)

Requires
further
Investigation

Requi res
further
Investigati on

Links NTE Tasks

& WBP Site Survey

WBP
Si te Survey

Info sent to
internal/external
workpacks

Job assigned
to NSD (Link)

Links NTE Tasks (No Y Code)

& JC Analyse Delay

New Job in
queue

Missing
info recei ved

Li nk to internal/
external work
groups - not
modelled

IM Facili ties
Decisions

INJC
i n JCs
queue (Link)

Job delayed

Li nks WBP Site Survey

& JC Analyse Delay
Links WBP Site Survey
& Issue RF's Glasgow

Route not investigated

Identification
of Core
Network Capacity

SDH2C form
sent to NSD
(Link)

Network
Solution
Design

Li nks WBP Site Survey &

Issuer chase missing Info

Missing
information
request (WBP)
Links WBP Si te
Survey & SE Refer
Costi ng to
Customer

0534
Routing and
Assignment of
Circuit Complete

Links WBP Si te
Survey & Issue
RF's & JC Respond
to CREP

154 at
COM

Anci llary cost

info to SE

Job returned
to queue man
((Link)

NSD Route
SE refer
Costing to
Customer
Li nks refer costing
to customer &
cancel order

Links Route/Assi gn
& Queue Manager Chases mi ssi ng details

Order
Li nks NSD
Route/Assign
& JC Respond
to CREP

Ready to
CREP

0.50 Day(s)
Cancel
order

Determine
Service
Delivery Date

CSPC
End

Li nks Route/Assign
& JC Analyse delay
INJC
in JCs
queue (Li nk)

Customer
confirm
informati on to
Wideband

JC Respond
to CREP

Li nks SE refer
costings to customer
& WBP Site Survey

CREP
Task call ed to
issuer

Service
Delivery Date
Determined

Links JC responds
to CREP & Issue
RF's Glasgow

CREP
complete

Issuer chooses
to ignore so not
modelled

RF prepared
(Li nk)

0.50 Day(s)

Li nks Issue RF's

& Route & Assi gn

Issue RFs
Glasgow/
London

Review Order
Requirements

CWPC
Links Issue RF Glasgow
& Allocate COW

198/O912
complete

0680
Al locate CoW
London /
Sheffi eld

Order
Requirements
Reviewed
Ready for
installation
Links Allocate COW &
COW supervise external works

Call
Customer

Front
Office
Supervise

CALL

Input not Modell ed

Scheme
installed &
commisi oned

Incoming
call from fi eld
engineer

Links Supervise External /Contractor

& Integrate Schemes

Customer
Call
Complete
Li nk not
Modell ed/investigated

14.00 Day(s)
Build
Core
Network

Capacity
problem
rai sed

Equipment
not delivered

Scheme
referred to
NSD

Integrate
Schemes

Network
Solution
Design

Links Supervise External Works/Contractor

& IM facili ties decisi ons

Not Model led at Present

- Non Fluid Process

Scheme
referred to
CSP
CONF
Live

0630

Integrate scheme and

Tacti cal planning eEPCs

Links Integrate Schemes

& Configure Circuit/Resolve Probl ems

Route, Assign
& config 2Mbit
Circuits

Core
Network
Built

R&A task
com'd

Configure Circuit
Resolve
Probl ems

Link to COSMOSS
glue and Config circuit

Other output
tbc

3.00 Day(s)
Configure
Service

NOU

End of
Process

CONF

WNEX
live after

JC amend CDD

0.50 Day(s)

Feed i nto COSMOSS

statistics - Dead end

Report
Service Order
Complete

WNEX task i s triggered by

COSMOSS, once all other
tasks have been completed

Company

Service
Configuration
Complete

CDD
amended

CDD can't

Feed into COSMOSS

statistics - dead end

CWPC

WNEX
Service
Completion
Reported
1.00 Day(s)
Handover Service
to Customer

Front
Office

HAND
Handover
Complete
0.50 Day(s)
Service
Completion
Monitor
COMP

Project
managers

CWPC

Project
administrators

ARIS
modelers

Service
providers

Service
Completion
being Monitored

System
administrators

IDS Scheer AG

www.ids-scheer.com

Method
consultants

Process
owners

Times
Costs
Quantities
Risks
Chances
20

Strategic Measurement and Assessment

Current sales performance

IDS Scheer AG

www.ids-scheer.com

21

Tactical, Actionable Information

Why

U
Uncovering
i
process behavior
patterns

AS-IS
Processes !!

Monitoring
Performance
Indicators
automatically

How

What

IDS Scheer AG

www.ids-scheer.com

22

Operational Root Cause Analysis of Performance Weakness

IDS Scheer AG

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23

Perspective
Corner office command-and-control of the operational strategy
provides the Operational Executive his best weapon for
proactively driving key corporate indicators
indicators.
 Command: On-demand visibility
y into p
performance of key
y indicators
 Control:

Immediate assignment of accountability

Focus on the HOW not on the WHERE!

IDS Scheer AG

www.ids-scheer.com

24

With Visibility Comes Accountability

Best Case

Spotlight Effect

Worst Case

Region A

on activity level

Region B

Performance gaps
detected in benchmarking

IDS Scheer AG

www.ids-scheer.com

Best Practice

Process defects

with lean process flow

identified in aggregated process flow

25

A framework for accountability

forms the basis for process
performance and performance
conformance

IDS Scheer AG

www.ids-scheer.com

26

Process Performance Management

Process Intelligence + Process Monitoring + Process Modeling = Process Performance Management

On Demand Measurement and Analysis

of actual running processes
Automated collection

Process Monitoring

Process Modeling

Always-on monitoring
Alerting
Root-Cause Analysis

9 t im e
5 6 7 8
1 2 3 4

Early Detection of anomalies

Process Intelligence
P
Process
P
Performance
f
M
Managementt
IDS Scheer AG

www.ids-scheer.com

27

Performance measurement closes the control loop

Ability to sense and respond early
improves ability to correct-with-effect
Monitoring of operational key
indicators
d cato s as ea
early
y warning
a
g syste
systems
s to
potentially damaging deviations from
targets
Persistent monitoring via automation

On demand
Reports
Dashboards
Analytics

IDS Scheer AG

www.ids-scheer.com

28

How do we establish performance

assurance and process
governance?

IDS Scheer AG

www.ids-scheer.com

29

ARIS Solutions

IDS Scheer AG

www.ids-scheer.com

30

ARIS Business Performance Edition

ARIS Boosting
g Business
Process Performance
>> Improve business process performance and
transparency through integrated business intelligence and
process intelligence.
intelligence <<

ARIS Improving Business

Through IT
>> Increase corporate success and protect your
investment through efficient and innovative business
processes backed by profitable deployment of IT. <<

ARIS Ensuring Business

Compliance
>> Leverage efficient, process-based risk and compliance
management
a age e t for
o reliable
e ab e control
co t o and
a d enforcement.
e o ce e t <<

IDS Scheer AG

www.ids-scheer.com

31

We Make Strategy Operational

Strategy
Strategy
Command &
Control
Op
perations

IDS Scheer AG

www.ids-scheer.com

Valuation
Shareholder Value
Top-Line Growth

32