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Delivering Enterprise Performance

Breakthroughs With Social BPM


Janelle Hill
VP & Distinguished Analyst
Gartner, BPM Research

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Social Shifts the BPM Focus From


Efficiency to Effectiveness
Effectiveness

Efficiency

Social
BPM
(Design by
Doing)
Traditional
BPM
(Doing by
design)
Structured
process

Unstructured
process

Key Issues
1. Why is BPM more important today than ever?
2. How can Social BPM optimize business
outcomes?
3. How should we advance our vision of BPM?

Conventional Business Operations Cannot Satisfy


the Escalating Demands of Modern Business
Increasing Business Pressures
Increasing
Globalization Competition

Market
Consolidation

More
Faster Pace of
Business
Regulation

Better
Customer
Service

Limitations of Conventional Operations


Situation Awareness
Missing facts
Limited visibility
into the business

Decisions
Inflexible policies
Hard-coded rules
Simplistic decisions

Process Management
Rigid processes
Labor-intensive
manual control of flow
Run-the-Business
Operations

CRM Order
Capture

Manual
Approval

Fulfillment
4

Billing

Unstructured, Knowledge-Centric Work Is


the Big Opportunity

20%

Structured, routine
activities

Unstructured
work activities

80%
5

Untapped
opportunities for
differentiation

Beyond Efficiency, BPM Raises the Bar for


"Operational Excellence"
Definition
BPM treats
processes as
assets
that directly
contribute to
enterprise
performance
results
by driving
operational
excellence and
agility.

Expectations

Visibility

Accountability/
Traceability
Adaptability

Attributes

Explicit, live process views


Pipeline visibility
Work item visibility
Resource visibility

Empowered work force


Clear line-of-sight for metrics
and outcomes
Goal driven processes
Process execution audit trail
Design systems for change,
(not to last)
Design by doing
Social Collaboration

The Nexus of Forces Will Create


New Operating Models

The Social Organization

Key Issues
1. Why is BPM more important today than ever?
2. How can Social BPM optimize business
outcomes?
3. How should we advance our vision of BPM?

The White Space Problem Sub Optimizes


Enterprise Performance

= "White space": no one is responsible, management blind spots, accountability gaps

Process ownership is constrained to functional authority.


Process participants mostly work in isolation
Information sharing is constrained to approved communication channels
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Adapted from G. Rummler, White Space Revisited

Top Challenges to BPM Adoption, 2012 Survey

Q15. What are the top three challenges that your organizations BPI initiatives need to, or will need to
overcome in order to successfully deliver the top 3 strategic business outcomes you previously
identified?
Multiple responses allowed
n=557
10

Organizational Politics is Essentially


a People Issue

Cross-functional* BPM threatens:


My power base
My bonus
My job security
My expertise
* Cross-Boundary Process Management represents Level 3 BPM
Maturity in Gartners ITScore for BPM Maturity model.

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Social + BPM Combine to Enable People to


Change Their Behavior

Engagement

Accountability

Empowerment

Visibility

Emergence
Social
BPM

Adaptability
Business Process Management

Efficiency
Traditional Process Management

12

Break Down Organizational White


Spaces with Social Collaboration
Cloud-Based
Process
Collaboration Spaces
Open access for all
Location-independent
Virtual Proximity
24/7 availability
Multiple media support
Interactions, fully contextualized,
are automatically logged

Tiger teams created


Physically Collocated

Foster cocktail party behavior


(adhoc relationships)

Time boxed

Social networks

Project Based

Peer Rankings

Manual audit trail (if any)

Before

13

After

Break Through Process Performance Accountability


with Social BPM
Single
Process
Ownership

Dynamic communities
End-to-end visibility for all
participants

Collective
Process
Stewardship

People move easily in


and out of different contexts
Crowd sourced innovations,
adaptations

Order to Cash

Advanced BPM-enabling
technologies (ie iBPMS with
predictive analytics) increase
confidence, driving collective
accountability
Real-time dynamic adjustments
to optimize outcomes
14

Key Issues
1. Why is BPM more important today than ever?
2. How can Social BPM optimize business
outcomes?
3. How should we advance our vision of BPM?

15

Consider How Much "BPM" Is Right for


Your Enterprise
The Gartner BPM Sweet Spot Framework

90% of Processcentric organizations


aspire to be here.

16

Which Processes Need a Faster Rate of


Change?
Pace Layering
"I know what I
want, but it needs
to be different from
my competitors."

"I don't know


exactly what I want.
I need to
experiment."

Systems of Innovation
Systems of Differentiation
Systems of Record

"I know what I


want, and it doesn't
have to be unique."

A pace-layered process
strategy focuses on
managing and governing
process change.
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Where to Look for Opportunities?


Every strategic process will
eventually become a
socially designed and
evolved process.
Processes experiencing
disruptions or high rates of
change.
Opportunities for process
improvement that are just
too hard to tackle without
the crowd involved.
External facing processes
(customers, suppliers,
partners)

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Success with social collaboration is


fundamentally a business
leadership and management
challenge, not a technology
deployment.

Advance From Vertically Integrated Operations to


Virtually Integrated Operations

Situation
Awareness
Descriptive and Predictive
Analytics

Decision Management
Prescriptive Analytics

CEP
BAM
Others

External

CEP
Rules
Optimization
Others

Events

Actions

External

Internal

Intelligent Business Operations is an emergent BPM usage


scenario.
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Intelligent Business Operations Leverage


Diverse Kinds of Tools for Different Purposes
Better
Situation
Awareness

Faster and
Better
Decisions

More
Flexible
Processes

Event
Management
Complex-event
processing
BI BAM
Process
intelligence BAM

Decision
Management
Rule engines
Statistical
analytic services
Optimization
tools

Flow
Management
Case mgmt.
Workflow
Process
orchestration
Service
orchestration

Added Real-Time
Operational
Intelligence

Run-the-Business
Operations
CRM Order
Capture

Manual
Approval

BAM = business activity monitoring; BI = business intelligence

Fulfillment
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Billing

Indentify the Process Intelligence Dials


That
Enable
You
to
Tune
Execution

Establish leading indicators and


desired outcomes by role.

Push decision authority closer


to where work happens.
Establish guidelines, not
procedures, for how to attain
desired outcomes
Tune operations to shifts in
business patterns
Pattern Detection
Proactive Alerting
Dynamic scenario
invocation
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Shift From Conventional BPM to Social BPM


Shift Primary Focus
From

To

Process Modeling

Purpose Modeling

Process
Execution

People
Engagement

Up-Front Design

Emergent Design

Linear Activities

Community
Collaboration
Cycles

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For Breakthrough Enterprise Performance,


Remember that Less is More
Encourage Collaborative Behavior
- Social BPM's greatest contribution will be
mass collaboration, not process improvement.
Measure it! Reward it! Leverage it!

Create a Shared Purpose


- "Traditional" BPM creates barriers! Social
collaboration leverages natural relationships
to create a shared purpose.

Open Communications
- Real-time communications, Cloud-based
collaboration spaces, crowd-sourcing, virtual
collocation, social networks, mobile devices,
correlating metrics to shared goals

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Recommended Gartner Research


Social BPM: Design by Doing
Elise Olding, Carol Rozwell, Jim Sinur (G00200281)
Master Six Core Principles to Tap the Massive Power of
Social Media, Anthony J. Bradley (G00225600)
Employing Social Media for Business Impact: Key
Collective Behavior Patterns, Anthony J. Bradley
(G00173838)
Operational Resilience: Adapting for Competitive
Advantage Using a Pattern-Based Strategy
Elise Olding, Donna Fitzgerald, Carol Rozwell (G00206649)
The Trend Toward Intelligent Business Operations
W. Roy Schulte, Janelle Hill, Nigel Rayner (G00213721)

For more information, stop by Gartner Solution Central or email us at solutioncentral@gartner.com.


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Gartner's ITScore for BPM Maturity:


Milestones on a Representative Journey
Dimensions

Level 1
Process-Aware

Level 2
Coordinated
Process

Organization & Culture

Level 3
Cross-Boundary
Process Mgmt.

Process
governance
structure,
process and
policies in place

Process
Owners
identified

Process Competencies
Methodologies
Technology &
Architecture
Metrics & Measures

Acknowledge
operational
challenges
Document top
level business
processes
Champion role
emerges

Governance
Create
communications
deck

Soft launch
BPCC

Measure,
monitor
and adjust
operational
processes
in real time

Fully
functioning
BPCC

Perform quick
win projects

Conduct
opportunity
assessment
and define
PPIs
Automation of
routine activities
Generally, most are here

= Representative milestone
= Example Maturity Journey

Level 4
Goal-Driven
Processes

25

Monitor business
results (process
outcomes) and
adjust for
effectiveness

Process
models
synchronized
with process
execution
Process
hierarchy now
aligned to
strategic goals

Level 5
Optimized
Processes
Public
reputation for
process
excellence

Optimization
technologies
in use to
help balance
resource
constraints
across
processes

Characteristics of Different Layers


Characteristic

Systems of
Record

Systems of
Differentiation

Systems of
Innovation

Business
Processes

Well-understood
Common
Repeatable
structured processes

Well-understood
Unique
Some unstructured
processes

Poorly understood
Unique
More unstructured
processes
Dynamic or ad hoc

Data and
Information

Highly structured
Tightly managed
Usually internal
Audited

Structured and unstructured


Internal and external
More dynamic
Auditable

Less structured data


More external data
Dynamic
Auditable

Analytics

Reporting historical
data

Real-time reporting
analytics

Predictive analytics
Scenario-based

Business
Process Agility

Low

Moderate

High

Process Integrity

Built-in

Mix of built-in and userdefined

User-defined

Source: "Balance Process Agility and Process Integrity Choices Along the Application Continuum" (G00213265)
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