Integrated Governance Solutions: From change control to transformation enablement

Governance – the term itself usually splits audiences. For you personally, is governance what slows you down in your agility and throttles innovation or is it the guardrail saving the organization from falling into anarchy and chaos? Well, most of us will stand somewhere in the middle depending on the concrete topic at hand. 

Wiping aside all orthodoxy, current challenges all organizations are facing:  

  • Processes and supporting (digital) tools depend on fast and efficient change in response to internal and market requirements. 

  • Diversification of supply chains and integrated production increase complexity of change projects. 

  • New products require complementing or changing established business models. 

  • Customer expectations regarding delivery time, product quality and service are ever increasing. 

As if that wasn’t enough:  

  • Business operations and change initiatives are competing for the same internal resources. 

  • Key knowledge keepers retire or leave for other reasons. 

  • New talent is difficult to come by and takes time to ramp up. 

Well…yes, feel free to consider this the new normal. So, what can we do about it? 

bpExperts integrated governances solutions provide methods and tools for transformation journeys 

From the current knowledge and perspective several strategic roadmaps might be correct. However, are they still correct in two years ahead? 

bpExperts supports customers through these challenging transformation journeys and provides a methodology and tool set fostering three key aspects: 

  • Transparency regarding responsibility and purpose  

  • Transparency regarding handovers and interfaces 

  • Manifesting ability AND agility to transform business and systems continuously with a customized integrated governance concept 

Transparency regarding responsibility and purpose 

Organizations that are facing transformation activities resulting in a new system landscape, a new core IT system are often overwhelmed with the quantity of alternative solution scenarios. Lucky project teams can base their work on a previous strategic decision, e.g. on a software and supplier.  

Nevertheless, the quantity and complexity of modules, apps, and customized solutions is challenging. Evolved organizational habits and process specific customized solutions in each department or working group are well anchored within each team. Niche solutions are competing with the ambition of enabling end-to-end flows through large integrated systems. 

Figure 1 : Highly integrated process scenarios enable visualization of process, collaboration and system interfaces.

Likely to your surprise, this is exactly where an integrated governance can help. Change project teams require guidance and guardrails to enable their work and shield off distractions and scope creep.  

Transparency on the principal process landscape and architecture with clear roles and responsibilities is instrumental for distributing decision power and implementation action (Fig. 1).  

This does not mean that every project will require the traditional full as-is analysis and to-be design and ‘painting’ hundreds of process charts. Interrogating the organizations’ current process understanding (documented or not) against reference content like Business Flows enables the process experts to accelerate decision-making about must-have processes, those that are nice-to-have, and where it will be worthwhile to analyze and document more deeply.  

Figure 2: Business Driver and its connection to E2E-sceanrios and SAP capabilities

Not surprisingly, the trick is to focus effort where it is beneficial and cut it where added value is marginal. 

Strategy and Capability maps support strategic decision-making on the management level (Fig. 2) and empower project teams in defining the best suitable solution design within the business process and for the future digitization solution.  

Systematically considering value drivers and business capability filters assure staying connected to the business goals and not getting hung up on technical beauty.  

Transparency regarding handovers and interfaces  

Once the scope and goal are decided and transparent, it is all about enabling implementation and change.  

Integrated governance solutions and associated documentation must be customized to the individual organization and must be suitable to support current and future initiatives. Process models (and conventions) must be flexible to keep up with the changing environment project teams are working in. Overly strict, ‘all processes are equal’ process governance would prevent project teams from using its value in enabling complexity reduction and visualization.  

Figure 3: Factsheet with consolidated EPC/BPMN information

Factsheets (Fig. 3) may be perfectly sufficient for the majority of processes while a focused operational excellence initiative or niche tool implementation may require fine-grained documentation. In a mature concept, each stakeholder group should find value in using processes, not just change control and standards documentation. Governance and oversight are needed to still maintain a cohesive overall model and enable consistent reporting of process content.  

Leveraging reference content, existing documentation, and tools rather than engaging in building documentation from scratch frequently involves connecting domain-specific documentation systems. Integrating Enterprise Architecture and BPM content like we recently showcased for LeanIX and ARIS can help optimize efforts and benefits (Fig. 4) . 

Figure 4: Customized Entry Map meeting all stakeholder's entry points

With Business Flows and proven capacity and track record of integrating content and methodology across technical platforms, bpExperts is excellently positioned to fuel your initiative. 

Manifesting ability AND agility to transform business and systems continuously with a customized integrated governance concept 

In software development, agile incremental delivery of small-value deliverables is already state of the art.  

bpExperts made a good experience with adopting agile key principles and adapting them to BPM governance. Within this homology, the Process Owner can be seen alike the Product Owner in agile development, with the BPM organization giving methodological guidance alike a Scrum Master. The team is comprised of the Solution Architects, Business representatives, and key users, and specific domain experts, e.g., data privacy or safety, as needed. 

Just as individual agile teams can be scaled to higher orders or coordination so can the continual improvement of ‘atomic’ processes be scaled to larger structures and even whole templates or an organization’s digital twin. 

However, just like in agile development enablement and empowerment, along with strict adherence to the method and ceremonies is instrumental for the success. There is no successful half-hearted agile project and no success in half-baked BPM initiatives. 

Consistent processes architecture forms the integration layer between and across process and domains. This forms the foundation for self-organized BPM teams to find the best system design for the future organization.  

Demo on Demand

At bpExperts as business integrators we work with you to embed the capabilities for continuous transformation into the fabric of your organization. If you are interested in learning more about how integrated governance solutions support your transformation approach reach out to us. Independently if you are at the beginning of your journey or if you are already “in the middle of things”.  

A special occasion to learn more is our Business Transformation Day on the 10th Nov. 2022. Alternatively request a free demo anytime. 

How to integrate the BPM and EAM use cases into LeanIX in the course of your Business Transformation

LeanIX undisputedly is a leading Enterprise Architecture Management (EAM) Tool. The definition of EAM implies considering the whole enterprise. The core purpose of any enterprise is the creation of value for its customers and stakeholders which is based on business strategy, operating models, and business processes. Traditionally however, EAM is used more by IT departments for IT related use cases (such as application lifecycle planning) and as a result the business side of the architecture, the Business Architecture (BA), is mostly only rudimentarily considered in many EAM initiatives.

It is easy to name reasons why this is the case. The main is that defining and managing the BA is often the responsibility of a different department, following their own domain’s methodology (BPM) and especially focusing on other use cases than the IT (Compliance, Lean, OpEx, ...). To achieve this the BPM related use cases require an overarching End-to-End view on Business Processes as well as a very deep analysis of process interactions (BPMN).

Now, especially when a company engages in a large scale (digital) Business Transformation, these worlds belong together and need to work hand in hand.

There are numerous technical approaches for integrating LeanIX with BPM tools such as ARIS and Signavio. However, looking deeper into the topic, only rudimentary integration, misaligned methodology and no 'real' representation of the relevant business aspects in the LeanIX environment can be found.

In my demo I will show how these 'worlds', EAM and BPM, can be brought together and discuss the main points of this aligned methodology.

Introduce End-to-End (E2E) Business Scenarios

One key point is creating an E2E view of the Business Scenarios based on a library of actual business processes within LeanIX. I will show how this can be achieved via a dynamic interface to an external BPM system but also how LeanIX can be used in a 'stand-alone' mode by leveraging our E2E process reference library (Business Flows) in LeanIX. One of the most obvious benefits of having E2E scenarios in LeanIX is the possibility to identify possible business disruptions across functional borders. For example a typical Order-to-Cash business scenario is requires sales, logistics and financial business capabilities and can therefore be dependent on several applications.

Align Business Capabilities and Functional Process library

In an IT Architecture context Business Capabilities are used to structure and standardize the business demand and compare them with existing application portfolios. On the other hand the functional process library is used to structure the functional requirements from a process perspective and manage and standardize existing process variants. We think it makes sense to align these to structures. That means having identically named structures for Business Capabilities and Process Groups and or Clusters (depending on how many levels your hierarchy has). This automatically results in the possibility to compare existing applications and business processes on the level of Business Capabilities and identify gaps or inconsistencies when analyzing the applications being directly assigned to processes.

Business Flows reference content and SAP One Process Acceleration Layer content

The above mentioned methodology allows us to import our business reference process library and if you are specifically involved in an SAP related Business Transformation we can map and include relevant SAP One Process Acceleration Layer content. According to this SAP Blog the SAP OPAL content will be made available for LeanIX customers. The reference content includes

  • Business Capabilities

  • E2E Business Scenarios

  • Functional Process Library

  • SAP Industry Specific E2E Scenarios

  • SAP Scope Items

  • SAP Solution Capabilities

This move of SAP clearly indicates how important it is to have a more tightly aligned methodology for Business Transformations. A more detailed blog on how we include SAP OPAL content into our reference model will be available soon on our website.

Demo on Demand

If you are interested in seeing the above mentioned aspects in a live demo please register via the button below. We will schedule a 1-on-1 demo and we will demonstrate the above shown methodology and content as well how some of LeanIX's special features such as surveys, reports and especially how projects/milestones can be used to the benefit of your business transformation initiative.

Management Systems and Business Process Management: A golden combination?

By Invitation: Caspar Jans - Senior Director Business Transformation, Software AG

Caspar Jans will be a keynote speaker on our Business Transformation Day on the 10th of November. In this contribution, he shares his views on the - more than ever - relevance of BPM (and BPM tools such as ARIS) in the context of current management challenges. For more information on the agenda, speakers, and experts of the round table session follow this link.

The concept of the “License to Operate” is all too familiar for the manufacturing industry. This means that companies very often need to prove that they are in control of the processes that they are executing. Just take the example of a chemical plant (I’ve worked in this industry for 15+ years): it is crucial that the plant operations department has a very tight grip on all the things that go on in and around a plant. One runaway process can cause severe damage, not only to the plant itself, but also to the surroundings and if such a plant is located close to urban communities it is not too complicated to imagine the enormous potential damages.

Governments and external authorities have established guidelines and requirements for certain industries to make sure that there is a certain amount of predictable reliability of running such a plant without problems. This concept is called the license to operate and nowadays, this concept is no longer only applicable to the manufacturing industries, but also to others.

One major part of the LTO (License-to-Operate) is the Management System, a central place where all relevant process descriptions, procedural instructions and pre-requisites are stored and managed. Very often this repository of knowledge is owned by the Quality Management department and was, and often still is, limited to the production facilities of an organization. The Management System was the vault in which all reviewed, approved, and valid documents were stored, and it acts as the basis for external audits.

On the other hand, over the course of the last 30 years we have seen the development, rise (and fall) and resurgence of Business Process Management, which is a management philosophy based on the construct of a business process that unites and unifies all relevant organization entities (think about people, activities, inputs, systems, risks and controls and much more) into one comprehensive, connected, and aligned view.

Where, back in the ‘90s and early ‘00s, the focus of BPM was quite heavy on the process modeling (or process documentation), we are now witnessing a shift in focus to the facilitation of transformation, optimization, and control of the organization’s execution of work. It is about making sure that the strategic targets are translated into an operating model and detailed out into value chains (end to end preferably) and single business processes, rather than making sure every process is documented to the nth degree of granularity.

The capabilities a decent BPM platform (like ARIS) has, turns out to be a near perfect match for the requirements companies have for their Management System. Focusing both on recording what needs to be done, making sure every relevant employee can consume it and preferably provide insight in the compliance employees show regarding the standards (think about process mining and integrated dashboarding).

Join us as Caspar Jans shares his visionary view of the evolution of the process world in terms of the relevance of BPM as well as insight into “how an Enterprise Management System can help you steer through these challenging times!”.

Register today!

Visit our Business Transformation Day and meet Caspar Jans in person at Schloss Krickenbeck.



 

Operating Models and Business Flows

Key Messages

  • Engaging business people in the process design and ensuring their buy-in requires starting with building the business context. This is where Operating Models prove their value.

  •  Defining Operating Models is especially essential when designing business processes for complex organizational setups and customer interactions (i.e. cross border, inter/intra-company, third party etc.).

  •  Operating Models are created during the process design phase and are used to support the implementation and change management during build phase and roll-outs.

Mind the gap!

“Which gap??” you would be tempted to ask. Well…WHAT do you do? What is your business? How do you operate, and can you explain this to your IT frenemies or to the outside consultants managing your system integration? How do you build and maintain a mutual understanding of the fit between processes, IT systems and your operations throughout your business transformation? Does everyone know WHY and WHAT you must change to deploy your strategy?

How Operating Models bridge the gap between process design and business operations

From our extensive experience managing transformation projects, we can say that there is a “missing” link between process design and business operations. This missing link can put a strain on transformation initiatives, and it can either increase their cost exponentially, delay them or in worst case scenarios, completely derail them. We help you avoid these dangers with a structured methodology and approach.

Definition

In their most basic form, Operating Models dictate where and how critical activities are performed across an organization. In the context of a business transformation, an Operating Model is the blueprint for how resources are organized in enterprise entities and how they should interact with each other to achieve the strategic objectives of the business. Operating Models therefore show the execution of business processes across different enterprise structures including all involved business partners (vendors, customers).

Operating Models in Business Flows

Business Flows, our business transformation framework, offers a unique process and model driven approach, which combines the use of End-to-End business processes (scenarios) and Operating Models as the main blueprint for transforming an organization. Enterprises using Business Flows for their transformation are provided a comprehensive toolkit (Business Transformation Cookbook) to bridge their strategy, process design, and mode of operations. In this methodology, Operating Models are the missing link and serve as the linchpin between strategy, the implementation of said strategy, and execution.

Methodology

In Business Flows an Operating Model is defined by a set of flows. Each flow distinguishes the exchange of information, material, service, or value between a “sending” and a “receiving” enterprise structure. These flows are accomplished with the help of business processes, hence every flow in the context of an Operating Model can be linked to an End-to-End scenario and/or business process. We take all the flows, including the related information, the involved organizational units, and business partners and create an object-relation model which is embedded in the process repository.

Fig. 1 Example visualization of an Operating Model

Example

It is important to understand that companies typically require several Operating Models. Each Operating Model may have the same business model as an objective (e.g., after sales repairs as a service) but will vary heavily depending on the complexity of the involved enterprise structures and their organizational and geographic characteristics. Simply speaking, the more “boundaries” the flows must cross, the more complex the Operating Models become, and the more complex the required business processes typically are.

A simple example (Fig. 1) is the difference between providing services to customers within a country or to customers outside of the country. In this example regular customers inside the country don’t have to initiate a pick-up repair order because a regular pick-up service is provided (Milk run) whereas companies outside the country do.

After the Operating Models of the above mentioned example are created we can now filter and drill down into the specifics. In the Fig. 2 we have filtered the model for the “EU non AT customers” and all its flows. You see two Material Flows (inbound to the Service Center and outbound from the Shipping Point) as well as Information and Value Flow interactions with the Commercial Unit. In this perspective the intercompany flows (i.e. the material flow between Service Center and Shipping Point) have been deliberately hidden although they are included in the model.

Fig. 2 Operating Model and selected Material Flow attributes

Fig. 3 End to end scenario and Business Processes

Fig. 2 also shows the attributes of a selected flow and its linked business process (Perform goods receipt for customer-owned material) as well as the relevant End-to-end scenario (ASS Repair center services processing Fig. 3). Navigating via the URL to the End-to-end scenario allows us to validate each process against the specific sequence of interactions of the operating model. In this example, it would be interesting to check if the I2O Outbound logistics process fulfills all requirements for the cross border shipment (Fig. 2 - Material Flow ‘outbound repair’).

Uses and benefits 

Using our Operating Models bridges the gap between business and IT by facilitating the communication and creating the synergy between your strategy, its implementation and execution. They support the implementation and change management during build and roll-outs, hence adding considerable value to the success of your Business Transformation. You will be able to create a common understanding of how it all (people, processes and technology) fits together. The Operating Models help you communicate the WHY and the WHAT you are changing to internal and external stakeholders at various instances along the transformation lifecycle for:    

  • Supporting the business case for the ERP transformation project 

  • Scoping and process design

  • Validating process models against ‘real world scenarios’ 

  • Conducting fit/gap workshops 

  • Defining subsets of E2E scenarios and processes to fit certain template shapes / roll-outs 

  • Deriving test scenarios 

  • Analyzing all use cases related to specific E2E scenarios  

Call for action

At bpExperts we work with you to embed the capabilities for continuous transformation into the fabric of your organization. If you are interested in learning more about how to ‘close the gap’ in your transformation approach reach out to us. Independently if you are at the beginning of your journey or if you are already “in the middle of things”.

A special occasion to learn more is our Business Transformation Day on the 10th Nov. 2022. Alternatively request a free demo anytime.

 

Save the Date: 10. - 11. November 2022, Business Transformation Day

- Gülsüm Ucuran

It's that time again. Let's get together.

After a Covid break of two years, we have decided that we would like to continue our annual event in the same successful manner as before.

Our team has been thinking carefully about whether this is feasible and whether we can provide the best setting for it.

And yes, we can!

Now it's just a matter of saving the date.

We hereby cordially invite you to our Business Transformation Day 2022, and to our 10th anniversary at Schloss Krickenbeck in Nettetal on November 10.

We would like to discuss current Business Transformation topics with you and expand into celebrating this very occation. A great evening event is just the right setting for it! Let us surprise you!

On the morning following the conference (November 11), we offer you to make appointments for deep-dives with peer participants and our key experts.

But enough is revealed.

More information after the summer break will follow!

For now, save the date! Register here

Many thanks and kind regards,

Gülsüm Ucuran