1. Business Performance needs Efficient Processes 10 February 2004 Pascal Hureau

2. Entire contents © 2004 Gartner Page 1 Microsoft EMEA : Business Performance needs Efficient Processes Gartner allowed Microsoft to use this presentation within events until June 2004 Engagement 220439240— January 2004 consulting Agenda Why Business processes are so important for Business Performance ? What is Business Process Management ? What are the Business benefits of Business Process Management ? Where is it being applied for business benefit - now and in the future? What makes for a successful project ? What are the risks ? How to get started ? Some recommendations

3. Entire contents © 2004 Gartner Page 2 Microsoft EMEA : Business Performance needs Efficient Processes Gartner allowed Microsoft to use this presentation within events until June 2004 Engagement 220439240— January 2004 consulting Business Performance: a challenging context Major drivers for Business Performance optimization include:  Compliance acts  Quality initiatives (Six Sigma)  Competitive environment Key Performance Indicators and Critical Processes Critical processes : identify and focus, monitor and improve efficiency Market Responsiveness Sales Effectiveness Product Development Effectiveness Customer Responsiveness Supplier Effectiveness Operational Efficiency Human Resources Responsiveness Information Technology Responsiveness Finance & Regulatory Responsiveness Demand Management Supply Management Support Services Gartner Business Performance Framework ™ overview

4. Entire contents © 2004 Gartner Page 3 Microsoft EMEA : Business Performance needs Efficient Processes Gartner allowed Microsoft to use this presentation within events until June 2004 Engagement 220439240— January 2004 consulting Business Processes: from Quality Management to Enterprise Agility Operational Data Store or Message Warehouse Business partner Distributor Express Carrier Supplier Forwarder Air Carrier Customer Managers Planners Shipping Receiving Accounting ERP Agent Inventory Warehouse Event Notification Exception Alerts Ad Hoc Inquiry Status Reports

5. Entire contents © 2004 Gartner Page 4 Microsoft EMEA : Business Performance needs Efficient Processes Gartner allowed Microsoft to use this presentation within events until June 2004 Engagement 220439240— January 2004 consulting BPM = the management of explicit processes from beginning to end Analyze and Model Execute and Integrate Manage and Monitor

6. Entire contents © 2004 Gartner Page 5 Microsoft EMEA : Business Performance needs Efficient Processes Gartner allowed Microsoft to use this presentation within events until June 2004 Engagement 220439240— January 2004 consulting Job Schedulers Integration Web Integration Development Tools Document Workflow Interpersonal Collaboration Process Structure Role of Humans Sweet Spot Explicit process proliferation is the sweet spot Off Limits Required Loose Off Limits Tolerated Rigid Loosely- defined processes i.e. based on Human creativity Hard-wired processes based on well-defined and easy-to- automate components

7. Entire contents © 2004 Gartner Page 6 Microsoft EMEA : Business Performance needs Efficient Processes Gartner allowed Microsoft to use this presentation within events until June 2004 Engagement 220439240— January 2004 consulting Analyze and Model/Business Process Analysis Execution/Business Process Management Integrate/Application Integration 1 2 3 4 Monitoring/Business Activity Monitoring BPM solutions: A New Way to Run the Business Proactive Management Simulation Scenarios System dynamics Reactive Management Fast path changes Dynamic rules Dynamic binding

8. Entire contents © 2004 Gartner Page 7 Microsoft EMEA : Business Performance needs Efficient Processes Gartner allowed Microsoft to use this presentation within events until June 2004 Engagement 220439240— January 2004 consulting Sweet Spot Off-Limits Application-specific process management Process Management Software Team process support tools Administrative and task-oriented process tools Emerging High growth MaturingProliferating Business Process Management Process Management Families: It’s All BPM: Most Are Growing Nicely

9. Entire contents © 2004 Gartner Page 8 Microsoft EMEA : Business Performance needs Efficient Processes Gartner allowed Microsoft to use this presentation within events until June 2004 Engagement 220439240— January 2004 consulting Key benefits : Process Efficiency Reduction in elapsed time Higher productivity per person Improved quality/reduced errors Reduced number of steps Higher employee satisfaction Fewer people needed Improved coordination across depts./geo. Automation of admin. tasks Improved regulatory compliance Flex. in processes/bus. agility Data/process integ. across apps. Reduced risk Reduced waste/scrap 85% 70% 55% In a 2003 study, percent of respondents that achieved key process benefits Key benefits Saving Time Saving Money Adding Value Reduced cost per transaction Enabling external users

10. Entire contents © 2004 Gartner Page 9 Microsoft EMEA : Business Performance needs Efficient Processes Gartner allowed Microsoft to use this presentation within events until June 2004 Engagement 220439240— January 2004 consulting Analysis Automation Agility Consistency Coordination Streamlining Monitoring Administration Sharing Integration Process Business Case Value On Investment (VOI) Process Efficiency drives BPM Deployment APPROVED

11. Entire contents © 2004 Gartner Page 10 Microsoft EMEA : Business Performance needs Efficient Processes Gartner allowed Microsoft to use this presentation within events until June 2004 Engagement 220439240— January 2004 consulting Optimizing Business Processes : Healthcare Payer Organization Case Study Contact insurance company Wait for change packet delivery Receive change packet Complete change forms Receive change request Send change packet Receive completed change information Copy info to member form Send to insurer Wait for change processing Verify information (if necessary) Enter info into central database Prepare and mail confirmation letter Send info to imaging center Image center scans and indexes documents Receive confirmation letter Steps in Records Update Process Physician activities Insurer activities Activity eliminated in automated BPM environment

12. Entire contents © 2004 Gartner Page 11 Microsoft EMEA : Business Performance needs Efficient Processes Gartner allowed Microsoft to use this presentation within events until June 2004 Engagement 220439240— January 2004 consulting Complex processes need support to enable agile and streamlined value chains Banking Insurance Finance Communications Healthcare Pharmaceutical Government Discrete Manufacturing Retail Logistics Trading Engineering Utilities Software development Quality Managers Project Managers Business Processes & Organisation Managers CIOs Financial / CFOs HR Managers Executive Levels and Business managers involved in complex processes Research and Development Planning Product development Proof tests Compliances and Authorizations Administrative procedures Marketing campaigns Production planning and execution Purchasing - Stock management Multimodal / Multipartner Order Management Quotations / Complex tariff structures Transport planning Credit card processing Claims management Risk management Human Resource Planning

13. Entire contents © 2004 Gartner Page 12 Microsoft EMEA : Business Performance needs Efficient Processes Gartner allowed Microsoft to use this presentation within events until June 2004 Engagement 220439240— January 2004 consulting Successful projects meet specific requirements Internal buy-in and commitment from top management Business process flow for human-to-human related tasks Ease of use in operation/development and administration Architectures, standards and platforms supported Performance and scalability Integration support (native, links or partnerships) Business Activity Monitoring capabilities Agility supported by business rule engines and simulation Development environment Vertical template support Costing/pricing models

14. Entire contents © 2004 Gartner Page 13 Microsoft EMEA : Business Performance needs Efficient Processes Gartner allowed Microsoft to use this presentation within events until June 2004 Engagement 220439240— January 2004 consulting Avoiding risks of failure Technology-driven thinking only Staying at too high a level and never digging into the technology levels Not having a business-driven methodology such as Six Sigma Internal political problems Not enough education and training Cultural aversion to process Lack of commitment

15. Entire contents © 2004 Gartner Page 14 Microsoft EMEA : Business Performance needs Efficient Processes Gartner allowed Microsoft to use this presentation within events until June 2004 Engagement 220439240— January 2004 consulting Recommendations BAM BPA/BPM Legacy Rules Services Focus on the efficiency of your critical processes Develop a process-oriented culture at the enterprise level but implement solutions step by step Consider short-term benefits as well as long- term Value on Investment of BPM solutions. Justify investment through benefits of process consistency, integration, rapid reaction time and process monitoring, not on headcount reduction Take advantage of business agility using proactive practices such as Business Process Analysis and Business Process Management Use streamlined processes as a competitive weapon

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