Saudi 3rd CIO Summit

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Saudi 3rd CIO Summit

• What Does BPM need Beyond IT to Realize Value
• Presented By Adnan Masaad
• Director, Operations Saudi Arabia
• February 2006

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Growing ITs Contribution The 2006 CIO Agenda
Gartner EXP surveyed 1,400 CIOs in more than 30
countries, representing more than U.S. 90
billion in IT spending. The findings says that
Top 10 Business Priorities in 2006 1. Business
process improvement 2. Controlling enterprise
operating costs 3. Attracting and growing
customer relationships 4. Improving competitive
advantage 5. Improving competitiveness 6. Using
intelligence in products and services 7. Security
breaches and disruptions 8. Revenue growth 9.
Faster innovation 10. Faster innovation and cycle
times
Top 10 Technology Priorities in 2006 1. Business
Intelligence applications 2. Security
technologies 3. Mobile workforce enablement 4.
Collaboration technologies 5. Customer sales and
service 6. Service Oriented Architectures
(SOA) 7. Workflow management 8. Networking, voice
and data communications 9.
Virtualization 10. Legacy application
modernization
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Does it Require the CIO to transform into a CPO
The CIO is becoming important Change Agent in
the company. At the moment he faces probably one
of the largest changes at all - his own
transformation from the Chief Information Officer
into the Chief Process Officer.
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CIOs First Alignment Responsibility
Its All About Aligning Process, Organization with
Strategy
Business Strategy
IT Strategy
Defines
What are IT Projects or Services required to
support the business Products Services ?
IT Operations
Business Operations
Products Services
Products Services
AlignmentIntegration
Governance model
Differentiators Capabilities
Governance model
Differentiators Capabilities
What are the key IT competencies required for
these IT Products Services ?
Enhances
What is the distribution of decision making ?
Where is the location of resources ?
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Looking at the Big Picture
Enterprise
Corporate Strategy
Enterprise Architecture
Strategy
Business Architecture
Organizational Architecture
People
Process
Business Process Architecture
Performance Architecture
Tech.
Applications Architecture
Data Architecture
Infrastructure Architecture
Technical (IT) Architecture
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Business Imperatives to Increase Stakeholders
Value
Realize opportunities to reduce costs
Improve innovationprocess
Raise quality oforder processing
Improveprofitability
Increasing Returnon Investment
Open up new markets
Improve customer service
Increase deliveryperformance
Increase sales and profit
Fully exploit customer potential
Improve product quality
Increase market shares
Improve employeessatisfaction
Shorten delivery andsupply time
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Where is your Enterprise now
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What does Transformation Imply
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Frictional Loss is Loss of Value
Strategy
Organization
BPM helps in avoiding typical frictional losses
in value creation
Operational department 4
Operational department 1
Operational department 2
Operational department 1
Sub- process 1
Sub- process 2
Sub- process 3
Sub- process n
Customer
Supplier
Service order
process
Technology
Perform
Service
Vehicle
Invoicing
service
booking
hand-over
reception
Service order process Mercedes
Service order process Smart
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ROI in BPM in the Supply Chain

• 2-year AMR study found that, compared with peers,
  companies best at collaborative processes had
• 15 less inventory
• 17 stronger perfect order fulfillment
• Complete, accurate, on-time
• 35 shorter cash-to-cash cycle
• Order to cash, procure to pay
• 10 of stock outs
• And realized 7-8 of revenue in savings
• Yankee Group study found that, across US
  companies, collaborative BPM can
• Reduce monthly inventories by more than 117
  billion
• Increase sales more than 83 billion

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Sought ROI from a Properly Managed BP

• Optimization Build Better New Processes Faster
• Understanding Know What Youre Doing
• Continuity Avoid Friction (e.g. During
  Merger/Acquisition)
• Outsourcing Get Someone Else to Do the Dull
  Stuff
• Control Get Control of Parallel Processes
• Coordination Value Chain Maintenance
• Efficiency Do Things Better w Optimized
  Processes
• Compliance Stay Out of Trouble by Staying
  Ahead
• Innovation Move Faster Through Scenario
  Building for Agility and
• Policy
  Management
• Automation Get Idiot Work Away From People

Now, what is the new thing Such transformation
Mandates?
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Changes in the Company Change Management
Phases in the Implementation of a Project
7. Implementation Rules for similar situations
are extrapolated from successful modes of
behavior
high
2. Denial Old modes of behavior are
conserved exaggerated estimation of own abilities
6. Recognition Connection between modes of
behavior and success/failure is recognized and
the learned behavior is consciously used in the
new task/situation
3. Understanding The requirements of change are
acknowledged Uncertainty
Observed competency of the person/company
5. Experiment New modes of behavior are tried
in various situations, new ability is reinforced
by successes and failures
4. Acceptance Abandonment of old habits,
new attitudes and behaviors are developed
1. Shock Discrepancy between expectations and
actual reality
low
Time
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Conclusion
There is no successful Organization without
strong Business Process Management
Quality and Innovation determine whether and how
successful is an Organization
Intelligent business process helps defining your
company added value
New Technologies lead to an increased focus on
process in IT!
The pressure of change upon Business Process is
continuous (there is no break)
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Saudi 3rd CIO Summit

• Thank you