Ann Rosenberg, Jacob Lund August 30rd 2012

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1 Ann Rosenberg, Jacob Lund August 30rd 2012
Introduction to Business Process and Transformation Management and the overall semester Ann Rosenberg, Jacob Lund August 30rd 2012

2 Agenda Introduction to Business Process and Transformation Management part 1 Introduction - participants Overall goal and learning objectives Overview of all the sessions Literature which will be used Exercises including mandatory assignments Final assignment and exam How to use the Blog - Introduction to Business Process and Transformation Management part 2 Business Process Management Exercise Next Session: Innovative and Process oriented IT “Process based and innovation implementation frameworks (Design Thinking, Agile, LEAN, Six Sigma)”

3 Introduction - Participants
Who are you BPM definition Transformation defintion Motivation for selecting Business Processes and Transformation Management

4 Agenda Introduction to Business Process and Transformation Management part 1 Introduction - participants Overall goal and learning objectives Overview of all the sessions Literature which will be used Exercises including mandatory assignments Final assignment and exam How to use the Blog - Introduction to Business Process and Transformation Management part 2 Business Process Management Exercise Next Session: Innovative and Process oriented IT “Process based and innovation implementation frameworks (Design Thinking, Agile, LEAN, Six Sigma)”

5 Læringsmål – Learning Objectives
Forklare hvad der skal til for at udvikle en god strategi og forretningsmodel (Business Model) og hvordan man eksekverer en strategi succesfuldt Beskrive hvordan man arbejder med strategi eksekvering (transformation) både fra en effektivitets og innovation synsvinkel inklusive hvordan det er understøttet af Business Process Management og Proces/ Innovative Orienteret IT Anvende Proces forbedringsmetoder og kunne beskrive anvendelsen af metoder for procesoptimering og proces innovation (Design Thinking, Agile, LEAN, Six Sigma) Beskrive hvordan man arbejder med processer og Game changing Teknologier (Cloud, Mobility, In Memory) Redegøre for forskellige change management skoler til at drive transformationen (lineære forandring og kaotisk forandring) Redegøre for hvordan man måler startegi eksekvering og de forskellige niveauer for Performens Måling der indgår( Strategiske KPI, Transformation KPI, Proces Performance Indikators, Suistainability KPI)

6 Fagligt indhold Målet med dette kursus er at gøre dig i stand til at bidrage til virksomhedsstrategi eksekvering (transformation). Som nævnt er implementeringen af en strategi svær og bliver ofte gjort meget kompleks hvilke skyldes at de fundamentale koncepter ikke er på plads. Kurset vil derfor introducere en række koncepter og frameworks, som alle er en del af platformen for at drive succesfuld transformation. Denne platform kan opdeles i nedennævnte 9 områder: Integrated Strategy Planning and Operational Execution Linking Strategy to Operation (BPM) to drive efficiency and innovation Transformation Framework BPM framework Innovative and Process oriented IT Change Management Frameworks BPM integrated part of EA Process design and Game changing Teknologies (Cloud, Mobility, In Memory) Process based and innovation implementation frameworks (Design Thinking, Agile, LEAN, Six Sigma) De studerende vil derfor udvikle en forståelse for innovative strategi eksekvering med BPM der kan give virksomheder en platform der kan drive succesfuld transformation hvor hastigheden af strategi eksekveringen er nøglen. 

7 Læringsaktiviteter – Learning Activities
14 ugers undervisning bestående af forelæsninger og lejlighedsvise øvelser Kurset forløber over 14 mødegange med forelæsning og øvelsestimer. Læringen vil blive til veje bragt via forskellige akademiske frame Works og modeller, case studies og praktiske eksempler som vil blive fremført af forskellige gæste forlæser og den kursus-anvarlige. Der vil være 2 obligatoriske aktiviteter, hvor den studerende skal fremlægge 2 cases, hvor de har anvendt kurset akademiske frame Works. De 14 undervisningsdage grupperes i temaer af varierende omfang. Efter den generelle indføring anvendes den her opnåede forståelse som ramme for efterfølgende analyse og case study med udgangspunkt i en selvvalgt konkret virksomhedscase Den studerende skal have gennemført de 2 obligatoriske aktiviteter for at kunne indstilles til eksamen

8 Agenda Introduction to Business Process and Transformation Management part 1 Introduction - participants Overall goal and learning objectives Overview of all the sessions Literature which will be used Exercises including mandatory assignments Final assignment and exam How to use the Blog - Introduction to Business Process and Transformation Management part 2 Business Process Management Exercise Next Session: Innovative and Process oriented IT “Process based and innovation implementation frameworks (Design Thinking, Agile, LEAN, Six Sigma)”

9 Overview of all sessions
Session name Teacher 1 Introduction to Business Process and Transformation Management and the overall semester Ann Rosenberg 2 Innovative and Process oriented IT  “Process based and innovation implementation frameworks (Design Thinking, Agile, LEAN, Six Sigma)”  3 Process design and Game changing Technologies (Cloud, Mobility, In Memory) Guest: SAP: Mariano K. Ann Rosenberg   SAP: Mariano Kristensen 4 Integrated Strategy Planning and Operational Execution Part 1 5 Integrated Strategy Planning and Operational Execution Part 2 Guest: Flügger: Merete Knudsen Flügger: Merete Knudsen 6 Linking Strategy to Operation (BPM) to drive efficiency and innovation Guest: Danish Defense: Torben Claus Dahl Danish Defense: T. Claus Dahl 7 Transformation Framework FALL VACATION – WEEK 42 8 Business Process Management Part 1: BPM Strategy 9 Business Process Management Part 2A: BPM Set-up phase   10 Business Process Management Part 2B: BPM Set-up phase 11 BPM Process Management Part 3: BPM Transition Guest: Jens Theodor Danish Defence: Jens Theodor 12 Business Process Management Part 4: BPM Continuous Improvement and Supporting BPM Activities 13 Change Management Frameworks – support the strategy execution 14 Business Process Management and Enterprise Architecture Guest: John Gøtze John G.

10 Agenda Introduction to Business Process and Transformation Management part 1 Introduction - participants Overall goal and learning objectives Overview of all the sessions Literature which will be used Exercises including mandatory assignments Final assignment and exam How to use the Blog - Introduction to Business Process and Transformation Management part 2 Business Process Management Exercise Next Session: Innovative and Process oriented IT “Process based and innovation implementation frameworks (Design Thinking, Agile, LEAN, Six Sigma)”

11 Literature which will be used
BPM Compendium Book and BPM Compendium is ready at Academic Book Store KUA

12 Business Process and Transformation Management Compendium 1/2
4. Major issues in Business Process Management Fraser Johnson “Six Sigma Implementation at Maple Leaf Foods” Publication date: Jan Gregory S. Babe “The CEO of Bayer Corp. on Creating a Lean Growth Machine” Publication date: Jul 01, 2011, Harvard Business Review Philips Winslow, Sitikantha Panigrahi, Daniel Morrison “The Apps Revolution Manifesto”, Publication”, date 29 March 2012, credit-suisse Michael E. Porter "What Is Strategy?" , Published November 1996, Harvard Business review. R.S. Kaplan and D.P. Norton “Integrating Strategy Planning and Operational Executive: A Six-Stage System, “Balanced Scorecard Report, May – June 2008. R.S. Kaplan and D.P. Norton “The Starting Point for Strategy Execution”, Harvard Business Review R.S. Kaplan and D.P. Norton “A Platform for Strategy Management”, Harvard Business Review R.S. Kaplan and D.P. Norton “The Office of Strategy Management—The State of the Art, 2011”, Harvard Business Review R.S. Kaplan and D.P. Norton “Mastering the Management System”, Harvard Business Review

13 Business Process and Transformation Management Compendium 2/2
D.P. Norton and Randall H. Russel “Linking Strategy to Operations: Process Models and Innovation” Publication date: Jul 15, 2009, Harvard Business Reviewand IT Infrastructure” Publication date: Sep 15, 2009, Harvard Business Review D.P. Norton and Randall H. Russel “Linking Strategy to Operations: Part 2-Theme Teams and IT Infrastructure” Publication date: Sep 15, 2009, Harvard Business Review D.P. Norton and Randall H. Russel “Linking Strategy to Operations for Competitive Advantage”, Harvard Business Review Clayton M. Christensen and Michael Overdorf “ Meeting the Challenge of Disruptive Change” Published in March 2000, Harvard Business Review Rosabeth Moss Kanter ”Innovation - The Classic Traps.” Published in November 2006, , Harvard Business Review Michael Hammer “Process Audit” Publication date: Apr. 01, 2007, Harvard Business Review Bradley R. Staats, David M. Upton “Lean Knowledge Work Lean” Publication date: Oct 01, 2011, Harvard Business Review Tim Brown, “Design Thinking” Publication date June 2008, Harvard Business Review John P. Kotter “Why Transformation Efforts Fail” Published March 1995, Harvard Business Review Claus T. Jensen, Owen Cline, Martin Owen “Combining Business Process Management and Enterprise Architecture for Better Business Outcomes” Publication date: March 2011, Red Books

14 Agenda Introduction to Business Process and Transformation Management part 1 Introduction - participants Overall goal and learning objectives Overview of all the sessions Literature which will be used Exercises including mandatory assignments Final assignment and exam How to use the Blog - Introduction to Business Process and Transformation Management part 2 Business Process Management Exercise Next Session: Innovative and Process oriented IT “Process based and innovation implementation frameworks (Design Thinking, Agile, LEAN, Six Sigma)”

15 Læringsaktiviteter – Learning Activities
14 ugers undervisning bestående af forelæsninger og lejlighedsvise øvelser Kurset forløber over 14 mødegange med forelæsning og øvelsestimer. Læringen vil blive til veje bragt via forskellige akademiske frame Works og modeller, case studies og praktiske eksempler som vil blive fremført af forskellige gæste forlæser og den kursus-anvarlige. Der vil være 2 obligatoriske aktiviteter, hvor den studerende skal fremlægge 2 cases, hvor de har anvendt kurset akademiske frame Works. De 14 undervisningsdage grupperes i temaer af varierende omfang. Efter den generelle indføring anvendes den her opnåede forståelse som ramme for efterfølgende analyse og case study med udgangspunkt i en selvvalgt konkret virksomhedscase Den studerende skal have gennemført de 2 obligatoriske aktiviteter for at kunne indstilles til eksamen

16 Agenda Introduction to Business Process and Transformation Management part 1 Introduction - participants Overall goal and learning objectives Overview of all the sessions Literature which will be used Exercises including mandatory assignments Final assignment and exam How to use the Blog - Introduction to Business Process and Transformation Management part 2 Business Process Management Exercise Next Session: Innovative and Process oriented IT “Process based and innovation implementation frameworks (Design Thinking, Agile, LEAN, Six Sigma)”

17 Execises (Class room and final assignment)
Different Cases will be used „hand-outs“ Case ” Global Bike Inc” Students own company For class room exercises to train the different models and frameworks Input to you final assignment

18 Agenda Introduction to Business Process and Transformation Management part 1 Introduction - participants Overall goal and learning objectives Overview of all the sessions Literature which will be used Exercises including mandatory assignments Final assignment and exam How to use the Blog - Introduction to Business Process and Transformation Management part 2 Business Process Management Exercise Next Session: Innovative and Process oriented IT “Process based and innovation implementation frameworks (Design Thinking, Agile, LEAN, Six Sigma)”

19 Final assignment and exam
7,5 ECTS report standard page span: 15 pages + 2 additional pages per group member (also counting the first member) Example: In a 7,5 ECTS report with 2 group members, 15 + (2 x 2) = 19 pages is the standard page span. If one person wrote this report alone, the upper limit would be 17 pages. A +/- 10% margin is considered within the normal range. Gode råd fra en tidligere studerende på studiet Hand in Exam Paper December 17th 2012 Exam Jan 15th, 16th and 17th 2013 Eksempler på 2 forskellige opgavetyper Vejledning i specialeskrivning

20 Gode råd fra en tidligere studerende på studiet
Gør et grundigt forarbejde inden problemformuleringen Lav tidsplan, som revideres løbende Diskutér problemformuleringen med vejleder, kolleger, medstuderende etc. Vær kritisk med valget af modeller og metoder (konkretisér muligheder, begrænsninger) Start i god tid - nedbryd opgaven - arbejd lidt hele tiden! Hav hele tiden "den røde tråd" for øje. Vend tilbage til problemformulering og model­valg Klargør argumenter, konsekvenser og konklusioner Adskil skarpt mellem data, analyse og tolkning Sæt god tid af til redigering Gode råd fra en tidligere studerende på studiet

21 Vejledning i specialeskrivning
Problemformulering: En problemformulering til speciale vil normalt være på 1-2 sider med en præcisering af problemstillingen, hvilke emner skal analyseres i.f.t. problemformuleringen, hvilke spørgsmål skal besvares/diskuteres, hvilke ledelses- og styringsteorier og modeller kommer til behandling ... konklusion: hvad går det her ud på, hvordan har jeg tænkt mig at gribe det an, hvad skulle det gerne ende med! Modelanvendelse er det væsentligste. Modeller kan anvendes til mange ting i en opgave. De kan strukturere opgaven, anvendes til problemanalyse og løsningsopstilling, problem-formulering, erkendelse, analyse, vurdering af resultater/løsninger, argumenter, resultatkritik og perspektivering. Analysen: Et problembeskrivende speciale vil normalt ikke være tilstrækkelig, f.eks. en beskrivelse af en given virksomheds problemer. Analyse og anvisning af løsninger eller løsnings­skitser til beskrevne problemer vil som hovedregel udgøre de centrale elementer i et speciale. Konklusionen: Konklusionen bør svare på de spørgsmål der rejses i problemformuleringen - evt. ved opsamling af delkonklusioner og/eller sammenstilling/debat af delkonklusioners gensi­dige samspil/modspil. Executive Summary: Executive summary er et referat til “ledelsen”, hvori de væsentligste forhold i opgaven præsenteres: Hvad er problemstillingen? Hvad er analyseret? Hvad siger konklusionerne? Hvad betyder det for virksomheden/ledelsen (eller andre problemejere)? Struktur: Der bør i opgaven være en rimelig balance mellem beskrivelse af forudsætninger, analyse, tolkning og løsningsgenerering. Bemærk dog: Der findes flere opgavetyper. Der skal des­uden være en "rød tråd" mellem problem, modelvalg, analyse og konklusioner Målgruppen: Målgruppen for specialet skal angives Vejledning i specialeskrivning

22 Vejledning i specialeskrivning
Valg af virksomhed: Det mest almindelige er at skrive i og om egen organisation, simpelthen fordi det er lettest at skaffe adgang til denne, men derfor er det ikke nødvendigvis den bedste løsning. Problemerne kan bestå i indforståethed, tagen for givet, blinde pletter, mangel på kritik, bestillingsopgaver, pleasing, mv. Disse problemer er langt mindre når man skriver i og om andre organisationer, hvor det så til gengæld kan være sværere at skaffe sig adgang. Modelvalg og modelanvendelse: Specialet må ikke være teoriløst. Det forventes, at der argumenteres for, vælges og anvendes teoretiske modeller. Disse kan være indenfor såvel som uden­for pensum. Ekstra teori og litteratursøgning ved hjælp af informationsteknologi på biblioteket kan hæve niveauet - og bør altid foretages som et check af mulige andre kilder. Modelvalget skal være: relevant, begrundet, målrettet og afbalanceret. Vejledning i specialeskrivning

23 Eksempler på 2 forskellige opgavetyper
Den teoretisk funderede konsulentrapport Hovedvægt: Modelanvendelse, analyse, hypotesetest, forklarende og/eller løsnings- orienteret Krav: Sammenhæng mellem teori og caseanalyse og/eller løsningsopstilling Indhold: Problem- og modelbaserede analyser og løsninger Empiri: Udgangspunkt i enten empiriske problemer eller analyse af empiri ved hjælp af teori/modeller Den teoretiske opgave Hovedvægt: Modelvurdering ud fra teoretiske kriterier Krav: Teoretisk dybde Indhold: Teorier diskuteres og vurderes i forhold til hinanden og i forhold til meta- teori Empiri: Eksemplificering Eksempler på 2 forskellige opgavetyper

24 Assignments examples from 2011 and 2012

25 How to use the Blog - http://www.itu.dk/courses/MPTM/E2012/

26 MPTM Schedule

27 Literature

28 Agenda Introduction to Business Process and Transformation Management part 1 Introduction - participants Overall goal and learning objectives Overview of all the sessions Literature which will be used Exercises including mandatory assignments Final assignment and exam How to use the Blog - Introduction to Business Process and Transformation Management part 2 Business Process Management Exercise Next Session: Innovative and Process oriented IT “Process based and innovation implementation frameworks (Design Thinking, Agile, LEAN, Six Sigma)”

29 What initiate BPM BPM Yesterday

30 BPM Yesterday and Today
Burning platforms Continuous process improvement Operation excellence Change from IT to process based implementations Process optimization What initiated BPM Yesterday

31 Business Process Management Today
Process orchestration by leveraging process based pre-built assets SKILLS & MINDSET Six Sigma, Lean, BPR…… BPM METHODOLOGY & GOVENANCE ARIS, PowerDesigner, Netweaver BPM….. BPM TOOLS PROCESS BASED IMPLEMENTATION CONTENT APQC, VCG, eTOM, SCOR Content TRAINING/ EDUCATION COMMUNITY AND ENABLEMENT SAP Modelling Handbook External BPM Webinars

32 BPM tools facilitate the Process Management Lifecycle BPM Today

33 Governance through the lifecycles BPM Today

34 McFarlan’s strategic grid

35 What initiate BPM BPM Today

36 BPM Yesterday and Today
Burning platforms Continuous process improvement Operation excellence Change from IT to process based implementations Process optimization What initiated BPM Yesterday What initiate BPM Today Business transformation (Strategy execution) Linking Capabilities to Processes The need for innovation, value and efficiency driving your transformation Define innovative business processes when applying Innovative technologies

37 Business Process Mangement (Conceptual) Big Picture

38 Linking the Strategy Model to the Operation Model
Source: Linking Strategy to Operations: Process Models and Innovation by David P. Norton and Randall H. Russell

39 Linking the Strategy Model to the Operation Model
Source: Linking Strategy to Operations: Process Models and Innovation by David P. Norton and Randall H. Russell

40 What is innovation ?

41 We’re living in a world of change.
Solutions People Results Purpose Innovations Ecosystem Join Us Imagine Home

42 Unprecedented empowerment of people
Global middle class growing from 2B to 5B by 2030 Business and personal lives have been blurred 15 Billion connected devices by 2013 More data in last 5 years than entire history of mankind 1 Billion people engaged in social networks More mobile devices than people Unprecedented empowerment of people A world of change Imagine a better run world Solutions People Results Purpose Innovations Ecosystem Join Us Imagine Home

43 Imagine a better run world
Fact: More than 1 billion people are actively engaged in social networks Implication: Collectively, people have the power to make or break brands instantly A world of change Imagine a better run world Solutions People Results Purpose Innovations Ecosystem Join Us Imagine Home

44 Imagine a better run world
Fact: There are now more mobile devices on Earth than there are people Implication: A business can now exponentially expand its reach in a flash A world of change Imagine a better run world Solutions People Results Purpose Innovations Ecosystem Join Us Imagine Home

45 Imagine a better run world
Fact: By 2013, more than 15 billion devices could be capable of connecting to the internet, from cars to washing machines, to the clothes we wear. Implication: Businesses can fundamentally transform themselves by using these connections to their advantage A world of change Imagine a better run world Solutions People Results Purpose Innovations Ecosystem Join Us Imagine Home

46 Imagine a better run world
Fact: More data has been created in the last five years than in the entire history of mankind. Implication: Unlocking the secrets inside this data presents breakthrough opportunities for businesses A world of change Imagine a better run world Solutions People Results Purpose Innovations Ecosystem Join Us Imagine Home

47 Imagine a better run world
Fact: An emerging global middle class, increasing from 2 to 5 Billion by 2030 will strain the world's diminishing resources. Implication: Businesses will require new strategies for resource optimization, innovation and growth A world of change Imagine a better run world Solutions People Results Purpose Innovations Ecosystem Join Us Imagine Home

48 Imagine a better run world
Fact: The lines between our personal lives and our business lives have blurred. Implication: The way businesses must sell to consumers has changed A world of change Imagine a better run world Solutions People Results Purpose Innovations Ecosystem Join Us Imagine Home

49 Imagine a better run world
The collective result of these trends is an unprecedented empowerment of people – as consumers, as employees, as citizens and as societies. A world of change Imagine a better run world Solutions People Results Purpose Innovations Ecosystem Join Us Imagine Home

50 Imagine a better run world
Imagine a better run world where innovations in information technology have the potential to improve the lives of people everywhere. A world of change Imagine a better run world Solutions People Results Purpose Innovations Ecosystem Join Us Imagine Home

51 Imagine a better run world
As strategic enablers to the worlds economy for over 40 years, we are uniquely positioned to help create a better run world. A world of change Imagine a better run world Solutions People Results Purpose Innovations Ecosystem Join Us Imagine Home

52 Imagine a better run world
At the Global Level Helping customers optimize resources and protect the environment. SAP is helping government agencies in diverse countries accomplish more for citizens. Our innovations even help people around the world gain access to clean drinking water, nutritious food, educational opportunities, and life-saving healthcare. A world of change Imagine a better run world Solutions People Results Purpose Innovations Ecosystem Join Us Imagine Home

53 Imagine a better run world
At the Business Level Helping companies stay ahead of change and innovate for growth SAP analytics solutions accelerated by in-memory computing are enabling people to make better informed decisions, even faster. Our affordable, packaged solutions are equipping entrepreneurs to power global growth again. A world of change Imagine a better run world Solutions People Results Purpose Innovations Ecosystem Join Us Imagine Home

54 Imagine a better run world
At the Personal Level Inspiring people to be their best and connect with companies so they can have a greater voice Already, SAP solutions touch hundreds of millions of lives every day, through people-centric interfaces and mobile applications. By 2015, that number will reach 1 billion. A world of change Imagine a better run world Solutions People Results Purpose Innovations Ecosystem Join Us Imagine Home

55 Our Vision Help the world run better and improve people’s lives.
Our Mission Make every customer a best-run business. Our Values Team work, integrity, accountability, professionalism, and trust lead to success. By 2015: €20 billion in total revenue, 35% operating margin, 1 billion people Solutions People Results Purpose Innovations Ecosystem Join Us Imagine Home

56 In a world of accelerated change…
An emerging middle class growing to 5B will strain already diminishing resources Data doubling every 18 months will create new opportunities and risks for value creation More mobile devices than people will require fresh thinking designed for an “always-on” world 1 billion people in social networks will rewire business and personal boundaries 15 billion web-enabled devices by 2013 will create a universe of intelligence everywhere The collective result is an unprecedented empowerment of people. We must rethink the future. Solutions People Results Purpose Innovations Ecosystem Join Us Imagine Home

57 I have total confidence in my hospital treatment.
I am confident that my aircraft is safe to fly on. Every product I use in my house is safe and reliable. My family can afford necessities, even in tough times I make enough money to send my kids to school. I get humanitarian aid and assistance quickly. The power of business solves social problems. I have a secure place to keep my money. My child is safe from recalled items. My utility companies help me use less energy. Solutions People Results Purpose Innovations Ecosystem Join Us Imagine Home

58 Our innovations are designed to help the world run better.
Applications Analytics Mobile Database & Tech. Cloud Run your business efficiently with an integrated suite of applications – one that delivers long-term predictability and accelerated, non-disruptive innovation Explore and exploit data, find answers in real-time, and make confident decisions. Harness visually compelling, easy-to-use tools on the devices of your choice Unwire your business to deliver secure, real-time, business-critical information – anytime, anywhere, to anyone, on any mobile device Dramatically simplify your IT infrastructure and drive high value innovation by exploiting across structured and unstructured data sources. Capture the power of the cloud – while fully integrating with on-premise investments. Empower your employees, engage your customers, and collaborate with partners across business networks. Powered by SAP HANA Learn More Solutions People Results Purpose Innovations Ecosystem Join Us Imagine Home

59 Business Model Canvas Youtube.com

60 Business Model Canvas Alexander Ostewalder & Yves Pigneur, Business Model Generation, 2010

61 Apple iPod & iTunes Canvas
Alexander Ostewalder & Yves Pigneur, Business Model Generation, 2010

62 Are you motivated? RSAnimate, Daniel Pink, youtube.com

63 Strategy Map Kaplan & Norton, Strategy Maps, 2004

64 Strategy Map Kaplan & Norton, Strategy Maps, 2004

65 Strategy Map & Scorecard – Part 2

66 Strategy Map & Scorecard – Part 3
Example: US Regional Airline Kaplan & Norton, Strategy Maps & Balanced Scorecard, 2004

67 Blue Ocean Strategy : Overview
Click image to access Blue Ocean synopsis on YouTube

68 Blue Ocean Strategy : Overview
Red Ocean Strategy Blue Ocean Strategy Compete in existing market space Create uncontested market space Beat the competition Make the competition irrelevant Exploit existing demand Create and capture new demand Make the value-cost trade off Break the value-cost trade off Align the whole system of a company’s activities with its strategic choice of differentiation or low cost Align the whole system of a company’s activities in pursuit of differentiation and low cost

69 Linking Strategy Model to Operation Model
CAPABILITY Source: Linking Strategy to Operations: Process Models and Innovation by David P. Norton and Randall H. Russell

70 Content Perspective Business and Process Management
Business Strategy Capability Discussion WHAT? Process Discussion HOW TO DO? IT Solution Discussion HOW WITH IT MEANS? Implementation Discussion HOW TO DO? Infrastructure Discussion WHAT RESOURCE? Business Execution

71 Business Process Management covers both automated and manual perspective
End to End process spans manual and automated activities Automated Activities Manual Activities Typically <20% Typically >80% Of the 20% of the Automated Activities Standard Activities Differencing Activities Typically >80% Typically <20% Processes that deliver competitive advantage and evolve regularly (SOA , mobility etc. candidates) Processes that should be as cost effective as possible (SAP Best Practice candidates)

72 Application Lifecycle
The 4 lifecycles Process Lifecycle BPM Method BPM Technology Business Model Process Model Performance Management .... Application Lifecycle IT Implementation Method Solution Manager Performance Monitoring ... Project Lifecycle PMI/ Prince 2 PM Tools Project Monitoring Value Lifecycle Value Method Value Discovery Value Realization Value Optimization To Be Design Process Owner Process Architect Business Architect CIO Enterprise Architect Application Consultant Project Manager Program/Portfolio Manager Business Unit Owner Business Architect Business Analyst Process Management Performance Management Value Management Process/Performance Gov IT Gov Project/Program Gov Business Governance

73 Business Process Mangement (Conceptual) Big Picture

74 Trends CxOs will give renewed priority to business transformation programs Responsibility for enterprise applications will shift to the business Enterprise will cautiously but steadily embrace cloud applications Business Process Professional will slowly but steadily begin to focus on sustainability Enterprises will race to embrace mobility to empower business people Process disciplines will adopt new approaches and frameworks Source: The Top 10 Business, Proccess, and Technology Trends Impacting Business Process Pros in 2011, April 12, 2011

75 BPM Yesterday and Today
Burning platforms Continuous process improvement Operation excellence Change from IT to process based implementations Process optimization What initiated BPM Yesterday What initiate BPM Today Business transformation (Strategy execution) Linking Capabilities to Processes The need for innovation, value and efficiency driving your transformation Define innovative business processes when applying Innovative technologies

76 Exercise

77 Business Model Framework – Breakout Sessions
30 min Tasks: Select a company (will be provided) Model the AS-IS Business Model for your selected company Discuss based on the Blue Ocean Strategy the Challenges and Opportunities the company has Questions: What are the strengths ? What are the weaknesses ? What are threats? Opportunities to change? Tools : Brown paper, Flip Chart, Post-Its,

78 Session 2 Innovative and Process oriented IT
 “Process based and innovation implementation frameworks (Design Thinking, Agile, LEAN, Six Sigma)”

79 Overview of all sessions
Session name Teacher 1 Introduction to Business Process and Transformation Management and the overall semester Ann Rosenberg 2 Innovative and Process oriented IT  “Process based and innovation implementation frameworks (Design Thinking, Agile, LEAN, Six Sigma)”  3 Process design and Game changing Technologies (Cloud, Mobility, In Memory) Guest: SAP: Mariano K. Ann Rosenberg   SAP: Mariano Kristensen 4 Integrated Strategy Planning and Operational Execution Part 1 5 Integrated Strategy Planning and Operational Execution Part 2 Guest: Flügger: Merete Knudsen Flügger: Merete Knudsen 6 Linking Strategy to Operation (BPM) to drive efficiency and innovation Guest: Danish Defense: Torben Claus Dahl Danish Defense: T. Claus Dahl 7 Transformation Framework FALL VACATION – WEEK 42 8 Business Process Management Part 1: BPM Strategy 9 Business Process Management Part 2A: BPM Set-up phase   10 Business Process Management Part 2B: BPM Set-up phase 11 BPM Process Management Part 3: BPM Transition Guest: Jens Theodor Danish Defence: Jens Theodor 12 Business Process Management Part 4: BPM Continuous Improvement and Supporting BPM Activities 13 Change Management Frameworks – support the strategy execution 14 Business Process Management and Enterprise Architecture Guest: John Gøtze John G.

80 Reading for the next session
Business Process Management - The SAP Roadmap Book: p , p , p Business Process and Transformation Management Compendium  Major issues in Business Process Management Fraser Johnson “Six Sigma Implementation at Maple Leaf Foods” Publication date: Jan Gregory S. Babe “The CEO of Bayer Corp. on Creating a Lean Growth Machine” Publication date: Jul 01, 2011, Harvard Business Review Philips Winslow, Sitikantha Panigrahi, Daniel Morrison “The Apps Revolution Manifesto”, Publication”, date 29 March 2012, credit-suisse