Bpr Process Modeling

April 10, 2023 PROPRITARY PROPERTY 1Richard Lynes

Key Information SystemsPractices and Indicators Evaluated

Administrative Practices

Financial Management• Budgeting• Cost/Benefit Mgt.• Risk Management

Financial Management• Budgeting• Cost/Benefit Mgt.• Risk Management

Quality Management• Portfolio Mgt.• Performance Goals• Commitment• Education• Continuous Improvement

Quality Management• Portfolio Mgt.• Performance Goals• Commitment• Education• Continuous Improvement

Change Management• Project Orientation• QA Function• QC Function• Culture Impact• Business Impact

Change Management• Project Orientation• QA Function• QC Function• Culture Impact• Business Impact

Resource Management• Human Resources• I/S Skills• Outsourcing• Organization• Business Skills

Resource Management• Human Resources• I/S Skills• Outsourcing• Organization• Business Skills

Service Management• Metrics• Service Agreements• Achievement/Performance

Service Management• Metrics• Service Agreements• Achievement/Performance

Administration Management• Policies• Procedures• Standards• Contracts• Backup/Recovery• Security• Business Resumption

Administration Management• Policies• Procedures• Standards• Contracts• Backup/Recovery• Security• Business Resumption

Planning PracticesStrategy and DirectionStrategy and Direction

• I/S Strategy• Business and I/S Alignment• Priority Alignment

• Vision/Architecture– Applications– Technology– Data

• Organization– Roles and

Responsibilities– Ownership– Executive Sponsorship

• Migration Planning

ES Key Indicators


Key Information SystemsPractices and Indicators Evaluated

Delivery Practices

Development/Maintenance• Project Mgt.• Data Mgt.• Request Mgt.• Standards• Methodologies• Development Tools• Alternative Techniques

Development/Maintenance• Project Mgt.• Data Mgt.• Request Mgt.• Standards• Methodologies• Development Tools• Alternative Techniques

Support Service• Problem Resolution• Responsiveness Tracking• EUC Assistance• Help Desk• Technical Training• Technology Coaching

Support Service• Problem Resolution• Responsiveness Tracking• EUC Assistance• Help Desk• Technical Training• Technology Coaching

Relationships• Expectation Management• Client Focus• Ongoing Communications

Relationships• Expectation Management• Client Focus• Ongoing Communications

Applications• Life Cycle Management• Documentation Mgt.• Functional Quality Mgt.• Technical Quality Mgt.• Maintenance Mgt.

Applications• Life Cycle Management• Documentation Mgt.• Functional Quality Mgt.• Technical Quality Mgt.• Maintenance Mgt.

Technology• Capacity Mgt.• Vendor Mgt.• R&D• Computing Mgt.• Data Administration• Communications Mgt.• Project Orientation• Systems Software Mgt.

Technology• Capacity Mgt.• Vendor Mgt.• R&D• Computing Mgt.• Data Administration• Communications Mgt.• Project Orientation• Systems Software Mgt.

Operations• Customer Focus• Scheduling• Performance Standards• Responsiveness• Contingency

Operations• Customer Focus• Scheduling• Performance Standards• Responsiveness• Contingency

ES Key Indicators


I/S StrategyComprehensive business driven strategies are defined for evolving I/S’s organizations, architecture’s, and applications

Business and I/S AlignmentI/S plans and strategies are fully supportive of business culture, needs, and direction

Priority AlignmentBusiness/technology dependencies are identified and priorities are established for both areas to provide maximum value with minimal waste/costs.

Strategy and Direction Best Practices

Vision/ArchitectureA business description of I/S's technology, data, applications, and organizational direction is available and communicated to management and staff.

OrganizationStrategies and plans are used to develop and maintain an appropriate mix of internal and external resources and skills for both the I/S and user environments.

Migration PlanningA transition plan guides the activities, schedules, and milestones for achieving the goal architectures and business systems.


Human ResourcesProvide the required level and maintain career planning, performance evaluation/reward. and compensation programs to ensure protection of human resource assets.

I/S SkillsMaintain skill evaluation and training programs for I/S staff and appropriate business staffs.

OutsourcingMaintain a cost effective balance of internal and external resources. Maintain awareness of sourcing

Resource Management Best Practices

OrganizationMaintain appropriate logical and physical organizations to support the company's culture, use of information technology, and support of business needs.

Business SkillsI/S staff has the required understanding of the company's culture and business practices to effectively contribute more than basic technology expertise for supporting business systems.


BudgetingSupport the company's planning and budgeting processes by translating I/S's business drivers into budgeted resource requirements and maintain effective control and reporting.

Cost/Benefit ManagementAdopt a program to ensure peer and senior management understanding of the investment and support costs for I/S's products and services and share in the identification and realization of business benefits.

Financial Management Best Practices

Risk ManagementFinancial controls are required for all project activities and acquisitions to minimize financial risk from project overruns, unauthorized financial commitments, and delays in recognizing run-away costs. Potential financial losses resulting from the accidental or deliberate destruction of data or systems must be identified and managed.


Applications Portfolio ManagementApply asset management concepts to ensure the application systems are measured, monitored, and managed to effectiveness, performance, financial, and quality goals at reasonable support and operating costs.

EducationStaff participates in ongoing education and training programs in support of the organization's objective to continually increase the level of quality for all aspects of the business.

OwnershipA "Quality Belongs To Everyone" attitude is present throughout the organization which encourages each individual to understand the company's quality commitment and to assume ownership for improving quality for all job related activities.

Quality Management Best Practices

CommitmentThe I/S department should be recognized by other business units as having a serious commitment to deliver the best service and products without compromise. Quality Assurance and Quality Control concepts are included in I/S methodologies, procedures, and practices.

Performance GoalsUsing accepted measures, monitor all service activities to ensure they are executed in a manner which continually meets or exceeds expectations.

Continuous ImprovementChannels are open for improvement suggestions and individuals are recognized for initiative and creativity in improving the overall quality of services and products.


Project OrientationI/S initiated changes (e.g., application systems, software releases, new technology, personnel, etc..) should be performed with a project discipline. Tasks schedules, expected results, and controls should be identified and managed to prevent business disruption.

Quality AssuranceQuality Assurance reviews are conducted, for all projects resulting in significant business or technology change, to ensure that the appropriate activities are scheduled and performed, qualified resources are assigned, and controls are identified and used. Quality assurance has an active project role with authority and accountability for ensuring quality results.

Change Management Best Practices

Quality ControlKey development and operations activities are subject to formal quality control inspections to ensure that the activities are being performed in accordance with the company's and industry standards and accepted practices. Quality control activities will often extend beyond I/S into the user and internal audit groups.

Culture ImpactAlthough some I/S initiated changes are intended to change the behavior of specific groups, the change process should consider the cultural constraints of the organization to avoid rejection or indifference.


Business ImpactAll areas of the business which are directly or indirectly affected by the I/S initiated change participate in planning, testing, and acceptance. This ensures that business staffs and management are properly trained and positioned to use the new process and that the change will immediately provide the planned business benefits.

Change Management Best Practices


MetricsAppropriate measures are defined for quantifying service levels and systems are in place to collect information for performance analysis.

Service AgreementsFormal definitions of what services will be provided, roles and responsibilities and how the services will be measured are available for key services provided by the I/S department.

Service Management Best Practices

Achievement/PerformanceOn-going reviews are conducted of all services and service providers which result in improvement programs or recognition of excellence for specific groups or staff.


PoliciesThe I/S department's "Rules of Conduct" are consistent, known, enforceable, and reflect the company's business, ethical, and management values.

ProceduresThe administrative "how to" guidelines are understood, used, and available for reference and new employee orientation.

SecurityA comprehensive security protection program is evident to protect the company's identified resources from deliberate or accidental loss of confidential or critical assets.

Administration Best Practices

StandardsAdministrative standards are used and enforced to help guide the performance and activities of the staff, e.g., performance reviews, timely reporting, conduct.

ContractsPrudent contract control and administration processes are enforced to ensure business protection, standardization, enforceability, renewal leveraging, and safe business practices.

Business ResumptionBusiness risks and critical I/S dependencies are identified and plans, resources, and procedures can be readily activated to expediently and safe restore key I/S and business staff operations.


Life Cycle ManagementApplications are managed as business assets with each having investment costs, operating expenses, and value. Each key application's condition and expenditures are tracked to manage cost effectiveness and to maximize resource value.

Functional Quality ManagementKey systems evolve with the business to help ensure that they support changing business requirements and that the business staff are not required to develop alternate processes to offset systems deficiencies.

Applications Best Practices

Technical Quality ManagementStandards and quality control techniques are used to help ensure that key systems' technical underpinnings and architecture are protected from premature obsolescence.

Maintenance ManagementExisting systems are modified/enhanced in a timely manner to reflect current business requirements. Maintenance is managed on a software release basis, when appropriate, to minimize complexity and maximize asset longevity.

Documentation ManagementA cost effective process is consistently used to ensure continuity of knowledge and understanding of all products and services developed and supported in the I/S environment.


Project ManagementProject management, involving business and all appropriate I/S functions, is established for all significant changes. Minor maintenance changes also require a project discipline for change control and software maintenance.

Data ManagementData is logically organized and managed to ensure accurate and timely reflection of business activity with minimal duplication and barriers to access.

Development and Maintenance Best Practices

Request ManagementBusiness staff understand and use an official channel to request I/S services. Appropriate checks and balances are in place to effectively prioritize requests based upon need, business plan, and cost benefits.

StandardsStandards for developing new products and services are established and understood by all staff members. Managers and lead staff are accountable for ensuring that new/modified products and services conform to accepted standards.


MethodologiesPractical and appropriate methodology are consistently used to guide the I/S department's project activities to help ensure leveraging of staff resources, maximize system life cycles, and enhance team reporting and communications.

Development ToolsAppropriate development tools are used to improve staff effectiveness and efficiency and increase systems life cycles. Staff is trained and the portfolio of tools and techniques support one another.

Development and Maintenance Best Practices

Alternative TechniquesAppropriate analysis is conducted to ensure that alternative resourcing, design techniques, and technologies have been prudently evaluated to maximize the company's systems development investments.


Problem ResolutionUsers (business and I/S) have a means of reporting problems and obtaining assistance in resolving I/S related questions and/or issues.

Responsiveness TrackingMetrics are used to track service request to monitor service responsiveness in addition to initiating corrective action projects to eliminate frequently occurring questions/problems

End User Computing AssistanceI/S assistance is available to help business staff in using distributed technologies within the parameters agreed to by the business.

Support Services Best Practices

Help DeskA service organization, specializing in emergency and production level assistance, is available to all business users during all scheduled business hours.

Technical TrainingTechnical skills improvement programs are conducted for both I/S and key business staff to ensure effective and appropriate use of software, equipment, and communications.

Technology CoachingIn conjunction with other services, special coaching sessions are available to help sharpen the skills of both I/S and business staffs in the effective use of more advanced and complex technologies.


Expectation ManagementNew direction, projects, and all key changes are regularly communicated to all levels of management and staff (business and I/S) to minimize misunderstanding and false expectations of availability, functionality, costs, use, and benefits.

Client FocusThe I/S department has a reputation for understanding the business needs and priorities and provides leadership and guidance toward ensuring the business maximizes the use of technologies, systems, and available information.

Relationships Best Practices

On-Going CommunicationsI/S staff and management is actively integrated into the business organization at all levels to openly discuss I/S activities as they relate to the business. Communication with the business goes beyond status reporting and selling new concepts.


Capacity ManagementAll I/S hardware, software, and communications resources are continually monitored to ensure that sufficient capacity is available for changing business needs and new I/S activities, and that sufficient cushions (internal and external) are available for peak demands.

Vendor ManagementVendor roles and responsibilities are understood by all parties and managed by I/S to ensure that the company is receiving maximum value for acquired products and services by influencing, as appropriate, revisions, service offerings, and problem resolution.

Technology Best Practices

Research and DevelopmentI/S has sufficient visibility of the company's needs and new technology offerings to guide the evolution of technology resources and tools to maximize short and long-term value to the business.

Computing ManagementThe technology infrastructure evolves to mirror the business by responding to business, organizational, and geographical needs.


Customer FocusA "customer service" attitude is evident in the organization. Operating and organizational changes are always validated to determine their impact to the business and customer service.

SchedulingAvailability of all technology resources are understood by the business and strict operating and support schedules are maintained and managed as a key component of customer service.

Operations Best Practices

Performance StandardsMetrics, identifying standards of performance, are consistently used to monitor and improve services,. Performance standards will often apply to both the I/S and business organizations and should be jointly developed

ResponsivenessTechnology and staff responsiveness continually meet or exceed the business's expectations. A technology plan, driven by usage information and tuning programs, is managed to ensure customer responsiveness meets or exceeds quantified expectations


Backup/RecoveryAll data files and program libraries have adequate versions readily available for rebuilding and normal processing in the event of loss or error. Backup and recovery processes are incorporated in all system's designs and changes.

Operations Best Practices

Contingency ManagementAll critical technology operating activities are seamlessly integrated into the company's business resumption procedures. Plans are developed and tested periodically for timely rebuilding/resumption of critical computing activities.


It’s not easy (or fun), but coming up with an accurate budget is the only way corporate networkers can keep from being blindsided by overruns and unexpected expenses. Here’s what it takes, step by step:

• Compile a detailed inventory of the network/IT infrastructure, including components, services, and personnel.

• Determine how much is being spent on the infrastructure. Be sure to figure in:

– Maintenance agreements (software and hardware)

– Support contracts (software and hardware)

– Communications services (monthly fixed charges and usage-based costs)

– Salaries (including market adjustments and standard merit increases)

• Decide which aging, obsolete, or overburdened parts of the infrastructure must be replaced.

1996 Network/IT Expenses

• Identify the major business initiatives planned for the coming year.

• Determine the implementation, acquisition, and support costs that will allow network/IT to support the new business initiatives.

• Ascertain the development/training needs for all network/IT support personnel.

• Find out how many people the company plans to add or drop during the coming year.

• Establish which emerging technologies will be added during the coming year and determine costs of pilot programs.

Find a quiet place to work, lock the door, take the phone off the hook, and build a budget factoring in all of the foregoing expenses and issues. Submit it to the corporate finance committee for approval. Take a week off.


Software

• Applications$495 per seat (assuming Microsoft Office suite of applications with mail client)

• Customization$125 x (# of hours) x (# of seats)

• Setup/Installation$75 x (# of hours) x (# of seats)

Infrastructure

• Ethernet$125 per seat (assuming 16-port concentrator)

• Cabling$12 per seat (assuming 25-foot cables to outlet and concentrator

• Routing$75 per seat (assuming $4,800 per high-end-router port)

The Hidden Costs of Network Ownership

Personnel

• Network administrator$65,000 per year (full-time)

• Applications Support$55,000 per year (full-time)

Planning

• Network and system design$41,250– based on a 200-node network with Microsoft Office and e-mail, two protocols, one router with collapsed backbone,, 64-user segments, 10Base-T concentrators, and Category 5 cabling


Senior Management Leadership

Willing Senior Business Sponsor

Sufficient emphasis on people

Strong user participation Cross-functional participation

Full commitment of right resources

Innovative use of IT Emphasis on change management

Management communication of vision,

progress

Team building Use of quick hits Consistent application of methodology

Adherence to established guidelines

Choice of consultant Correct choice/emphasis on tools Training of in-house staff Creation of BPR groups

Sufficient IT infrastructure Proactive IS group Fully defined IT architecture Emphasis on data quality Updated IT skill base

BPR Success Factors: Teaming


Build Infrastructure and Set Macro Goals


VisioningVisioning

Build and Assess Current Core Process

Model


Model

Select and Analyze Process for BPR


Engineer New Business Process


Implement New ProcessImplement New Process

Build Transition PlanBuild Transition Plan

Optimize New ProcessOptimize New Process




VisioningVisioning


Model


Model








Establish Executive Committee

Establish Executive Committee

Establish BPR SWAT Team

Establish BPR SWAT Team

Set Macro Goals and Drivers

Set Macro Goals and Drivers

Establish Methods and Tools

Establish Methods and Tools

Assemble Expertise and Resource Requirements

Assemble Expertise and Resource Requirements

Communicate Initiative Throughout Enterprise

Communicate Initiative Throughout Enterprise




VisioningVisioning


Model


Model








Identify Core Business Processes

Identify Core Business Processes

Build Core Process Model

Build Core Process Model

Establish Critical Process Metrics

Establish Critical Process Metrics

Define Core Process Drivers and Subgoals

Define Core Process Drivers and Subgoals

Build Process Organization Map

Build Process Organization Map

Re-evaluate Core Process Model

Re-evaluate Core Process Model

Assess Core Business Processes

Assess Core Business Processes




VisioningVisioning


Model


Model








Select Core Business Process

Select Core Business Process

Build Project TeamBuild Project Team

Model Existing ProcessModel Existing Process

Analyze Existing Process

Analyze Existing Process

Review Key Metrics and Baseline

Review Key Metrics and Baseline




VisioningVisioning


Model


Model








Collect Ideas and Perform Requirements

Analysis

Collect Ideas and Perform Requirements

Analysis

Model and Prototype New Processes

Model and Prototype New Processes

Deploy Obstacle Analysis Teams

Deploy Obstacle Analysis Teams

Test Competing New Process Models

Test Competing New Process Models

Select a New Process Model

Select a New Process ModelBuild Transition PlanBuild Transition PlanReassess Viability and

Financial Justification

Reassess Viability and Financial Justification


Build Transition TeamBuild Transition Team


Measure New ProcessMeasure New Process




VisioningVisioning


Model


Model









ES Development Effectiveness

ES Management Effectiveness

ES Operational Effectiveness

Phase III – Electronic Commerce Quality (TQM/IS)

“How We Will Get There”

EC Methodology

Positioning

“Where We Need to Go”

Core Competence

Phase I – Electronic Commerce Internet/Intranet Strategy

Management

Strategic Development

Capability

Strategic Data & Technology

Platform

Core Application Architecture &

Implementation Plan

“What We Need to Get There, and When We Need It”

Phase II – Electronic Commerce Internet/Intranet Plan

ES/Business Partnership &

Education Plan


Phase II – Electronic Commerce Plan

• Document Business Strategy from existing knowledge, strategy documents, and limited executive interviews

• Conduct Electronic Commerce strategy Executive workshop

• Identify implicit Electronic Commerce strategy

• Assess ES/strategy alignment

Assess Current ES/Strategy Alignment

• Document Best Industry Practices in critical areas

• Conduct technology scan• Define implications for

business strategy

Identify Electronic Commerce Impacts on

Business Strategy

Draft Electronic Commerce Strategy Alternatives

• Identify Electronic Commerce enablers or new business strategy components

• Identify Electronic Commerce enhancers of existing business strategy components

• Identify Electronic Commerce inhibitors of business strategy

Phase I – Electronic Commerce Strategy

Refine Electronic Commerce Strategy &

Development Consensus

• Review Electronic Commerce strategy with profit center management

• Provide Electronic Commerce inputs to profit center strategy

• Conduct executive review session to build consensus

EC Methodology


EC Development Effectiveness Programs

EC Management Effectiveness EC Operational Effectiveness

Phase III – Electronic Commerce Quality (TQM/IS)

Phase II – Electronic Commerce Plan

• Define strategic data & technology platform• Define strategic development capability• Develop core application architecture and

implementation plan• Define business IS/partnership plan

– Structure and staffing– Rules and responsibilities– Performance measures and reporting

• Define user and education training programs

Develop and FinalizeStrategic Electronic Commerce

Infrastructure• Assess current applications• Assess current databases• Assess current technology• Assess current organization and

management• Identify short term quality improvement

action for IS

Assess Current EC/Strategy Environment Review Current Business Processes

• Develop high level process model• Develop high level data model• Identify high potential process

improvement opportunities (expensive, non-value adding, etc.)

• Identify short term quality improvement actions for the business

ES Methodology

Bpr Process Modeling

Documents

Transcript of Bpr Process Modeling