QAD Business Process Management (BPM) Making the Case for BPM MWUG – March 24, 2015

Agenda Setting the Stage Building Your Case Three Samples Making the Case for BPM – March 24.15 Agenda Setting the Stage Building Your Case Three Samples 2

Making the Case for BPM – March 24.15 QAD BPM 3 3

Defining Business Process Management (BPM) Making the Case for BPM – March 24.15 Defining Business Process Management (BPM) Focuses on continuous improvement of cross-functional, end-to-end business processes Process improvement methodology and discipline essential ingredients for success Require a specific set of process skills and talents in order to be truly effective BPM tools can greatly accelerate and institutionalize process improvements 4

Select Menus to Explicit Processes Making the Case for BPM – March 24.15 Select Menus to Explicit Processes When Use BPM Versus Process Maps Complex business rules, alerts, & approval levels Visually see task & process status Standardize across domains Process & Task browses with priority Broader scope of business process capabilities Timers, escalations, audit trails, durations 5

It’s All About Processes Making the Case for BPM – March 24.15 It’s All About Processes 6

Making the Case for BPM – March 24.15 Building Your Case 7

A Business Case is not necessarily straight forward!! Making the Case for BPM – March 24.15 Introduction A Business Case is not necessarily straight forward!! 8

Business Case Development Process Making the Case for BPM – March 24.15 Business Case Development Process Identify Business Objectives and Key Processes Identify Process Focused Gaps Determine Best Process Business Case Monitor, Refine Results 9

Business Case Development Framework Making the Case for BPM – March 24.15 Business Case Development Framework Strategy Process Metric Q-Scan’s Help Maximize Considerations QAD Solution? Best Practice? Key Process 10

The Role of BPM Making the Case for BPM – March 24.15 Iterate Design Project Commitment Form Core BPM Process Project Team Design Assess Implement Model Iterate Modify Monitor Continuously Adapt And Promote Success

Making the Case for BPM – March 24.15 Balancing Act Value Readiness 12

Strategy & Process Alignment Making the Case for BPM – March 24.15 Strategy & Process Alignment Cost Leadership Differentiation Niche Specialization Manufacturing Flow Replenishment Shipping Product Development Customer Relationship Management Customer Service Marketing Flow Order Fulfillment 13

Making the Case for BPM – March 24.15 Readiness Assessment Are your processes clearly defined? How were they defined? What tools or approaches were used? (Six Sigma, Kaizen, Lean) How do you currently manage your processes today? (Paper forms, Excel, Lotus Notes or some other approach.) What experience does your company have with BPM? How do you expect your business processes to change over the next couple years? How have they changed in the past 5 years? 14

Making the Case for BPM – March 24.15 Maturity 15

Making the Case for BPM – March 24.15 BPM … the People Side Organizations divided into multiple business units, with their own processes, and systems. Rigid department-level boundaries Identifying key wastes and the constraints limiting performance may become personal Result? Employees are uncommitted. 16

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QAD BPM: Value Proposition Making the Case for BPM – March 24.15 QAD BPM: Value Proposition Efficiency Overcome process limitations & automate manual processes Run the business the way you want Foster collaboration and communication Visibility Monitor end-to-end process Bring broader stakeholders into process execution Agility Process innovation and change Move away from silos Reduce time to change processes Cost Maintenance and upgrades Long change cycles More rapid implementation or upgrade 18

Making the Case for BPM – March 24.15 Visual Map 19

Can You Get It Done? Candid Appraisal Costs Money and Takes Time Making the Case for BPM – March 24.15 Can You Get It Done? Candid Appraisal Costs Money and Takes Time Technical Competence – subcontract? Don’t Do It Alone Functionally Procedurally 20

Making the Case for BPM – March 24.15 Four Examples 21

Supplier Invoice Approval Process: Making the Case for BPM – March 24.15 Supplier Invoice Approval Process: 22

Customer Specific Needs Making the Case for BPM – March 24.15 Customer Specific Needs Payments on purchase orders, blanket purchase orders, check requests, travel advances and travel expense vouchers, petty cash, and freight bills. Invoices allowed without PO: Freight Emergency Maintenance Travel agency Hotels for visitors Temporary Electricity Phone (fixed and mobile) Customs 23

Customer Specific Needs – Cont’d Making the Case for BPM – March 24.15 Customer Specific Needs – Cont’d Managers and designated employees are allowed to approve up to the following amounts for non PO invoices: Up to $300 Employee/Assistants Up to $10,000 Departmental Managers Up to $20,000 Vice President for Business & Finance Over $30,000 CEO Scan of invoice can be attached in order for approver to view invoice directly from the approval process. Approved invoice can also be locked for payment for any reason, also identified with specific status. 24

Invoice with PO Process Flow Making the Case for BPM – March 24.15 Invoice with PO Process Flow 25

Invoice Without PO Process Flow Making the Case for BPM – March 24.15 Invoice Without PO Process Flow 26

BPM - High Level: With & Without PO Making the Case for BPM – March 24.15 BPM - High Level: With & Without PO 27

BPM - Check for Missing Information Making the Case for BPM – March 24.15 BPM - Check for Missing Information 28

Making the Case for BPM – March 24.15 Simulation Results 29

Making the Case for BPM – March 24.15 Simulation Report 30

Aftermarket Services: Making the Case for BPM – March 24.15 Aftermarket Services: 31

Aftermarket Service Example Making the Case for BPM – March 24.15 Aftermarket Service Example 32

Customer Specific Needs Making the Case for BPM – March 24.15 Customer Specific Needs Approvals currently managed manually. Engineer gets any required approvals from the appropriate approval team before order is entered in QAD. Engineer requesting part calls approval team to get approval, and lets regional team know who approved requested parts. Once approvals are received, the regional team enters order in QAD. All approval requests, tracking, and reporting are done manually.

Making the Case for BPM – March 24.15 Benefits Approval process steps automatically routed within QAD, and have all related data and approval history available in QAD for tracking and reporting. Utilize “vanilla” QAD functionality as much as possible Manage alerts and notifications Enable Approval tracking, reporting, and history

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Making the Case for BPM – March 24.15 Form Builder 36

Product Change Control: Making the Case for BPM – March 24.15 Product Change Control: 37

Farm Frites – BPM PCC Example 38 38

Inherit data from paper to QAD PCC Process Situation The form of new product Inherit data from paper to QAD Completing specific data per domain (also double-entry) Transfer from department to department 39

Create new article starting process in QAD PCC Process BPM Create new article starting process in QAD Monitoring data for each process step Parallel execution of tasks Direct steering colleagues 40

Comparison Existing vs BPM CURRENT PROCESS Many chased/ follow-up calls Possible errors by manual control Little transparency in process QAD customization is needed for optimization BPM Tasks Overview by user Automatic control Understanding lead times by logging Using without customization simple optimization 41

Making the Case for BPM – March 24.15 Questions? 42