Business Process Analysis and Optimization:

A Pragmatic Approach to Business Operations

Presented by: Md Mozammel HoqueOptimization Consultant on Business Process and IT

Organized by: Faculty of Business Administration, University of Chittagong, Bangladesh

Date and Time: From 11:00am to 13:30pm 25 MAY 2016

Presenter Profile

Md. Mozammel Hoque has had a career spanning 16 years+ as Consultant, Enterprise Architect, Executive leader, ProgramManager and Software Engineer in Telco, Banking, Manufacturing and Retail Industries.

He has served as Consultant at E-Tec and InfraOptimization (Bangladesh), as CTO at NTS (Bangladesh), as Sr. Technical Consultantat Huawei (West Africa Region), and as APPS DBA at DataIntensity (USA) on behalf of DatabaseIntelligence (Russia).

He has been the speaker on IT Optimization hosted by IBCS-Primax (Dhaka, Bangladesh)

Currently he is continuing his consultancy & research on the area of Optimization of Business Process and IT at InfraOptimization.

As of now, he supported for many Multinational Corporation across the world such as Etisalat Telco, Zain Telco, Warid Telco, andAirtel Telco on behalf of Huawei (China), ITS (Kuwait), DataIntensity (USA) and DatabaseIntelligence (Russia). He supported morethan 60 clients (on site and off-shore) covering North America, Europe, West Africa and Asia. He has over 3 years experience(before starting IT career) in Non-IT Sector - (Assistant) Researcher on the field of Socio-Anthropology, and Teacher.

He got Honorable Performance Reward for the year of 2013, Best performance award for the year of 2012 for Etisalat Nigeriaproject from Huawei, and two times best performance award (2010 and 2011) from Zain (now Airtel) Telco in Nigeria on behalf ofInternational Turnkey System. His Greatest Achievement is an Innovation of a unique solution in IT industry: how to fetch CLOBData across the databases, which was published in HUAWEI (a research based on a real scenario in Nigerian Etisalat Telcooperation, i.e. EMTS). A number of Technical and Non-Technical articles were also published in HUAWEI.

He is ITIL V3 Foundation Certified, Oracle Certified Expert (OCE) - Oracle RAC 11g Release 2 and Performance Tuning, OracleCertified Specialist (OCS) - Oracle Database 11g Data Warehouse, Oracle Certified Professional (OCP)- R12, 11g, 10g and 9i. Healso passed more than 30 exams (technical and non-technical) in Huawei exam system.

He completed his MSC and BSC in Applied Informatics in Economics from Rostov State University of Civil Engineering, Russia in2006 and He also completed his MA in 1997 and BA in 1996 in History from the University of Dhaka, Bangladesh.

Abstract

The rapidly changing economic and socio-economic environment has led to think howto keep the business processes continuously optimized in highly uncertain andunexpected markets. This turbulent market situation has been brought two majorchallenges - Socio-cultural (Behavioral) challenge and Technical challenge (IT). Thecurrent industry practice and the academic researchers are trying to get out of this bylooking the answer from the technology and business model end: “HOW” to managethe challenges of continuous change concentrating on flexibility and speed,maintainability and scalability, cost. Aftermath of it, there is numerous businessprocess modeling techniques are being proposed by the researchers and thetechnology industry that well captures both approaches - Quantitative analysis:Objective Approach and Qualitative analysis: Subjective Approach though theseapproaches have its own drawback. (It is not the purpose of this seminar to enlightenon this drawback.) But, the socio-cultural challenge is ignored though ourinvestigation reveals that Information behavior changes faster than informationsystems, which has driven us to work on it. Therefore, the aim of this seminar is todemonstrate how socio-cultural factors have significant impact, i.e. WHY IT MATTERS,on the success of business process optimization.

• Introduction• Challenges in Business Environment• Reasons to Research• Current Approaches to Business Development• Approaches to Business Process Development• What a process means• Business Process Re-Engineering( BPR) Vs Business Process

Optimization (BPO) or Business Process Improvement (BPI)• Business Process Analysis and Optimization• The Path to Process Operation Optimization• Business Process Management tools• Outstanding Result of Business• Conclusion

Agenda

A Process-based approach, in order to achieve a desired businessoutcome, is well adopted in today’s businesses acknowledging thesuccess of businesses is tied to the optimized processes. As of now,researchers have given a massive effort to reach a common platformas best practice. Aftermath of it, we have now versatile BusinessProcess Modeling techniques along with Business Process Tools in theindustry. Yes, it is true, to some extent, the technical challenge (IT) iswell met, but the socio-cultural challenge is not met yet though ourinvestigation reveals that Information behavior changes faster thaninformation systems. Technology can solve the process integrationpoint, but without operational excellence business processoptimization cannot be achieved. Therefore, the aim of this seminar isto demonstrate how socio-cultural factors have significant impact, i.e.WHY IT MATTERS, on the success of business process optimization.

Introduction

Executive Agenda:

How business can sustain and thrive maintainingbottom-line profitability in any economic situation.

Where to focus: Cost-cutting or Revenue growth

Common challenges in the Business Environment :

Pressure : Economic , Operation and Competitive

Customer & Employees: Expectations and Demand

Technology: Disruptive Technology and IT Silo

Economic Instability and Fluctuations in currency rates, energy, etc.

Governance, Compliance, Audit & Security

Suppliers

Manageability

Challenges in Business Environment:Business opportunities and/or fall creates challenges in business management

1. Org Chart:

1.1 IT considers as Cost Center

1.2 Departmental Conflict

1.3 Slow decision-making

1.4 Complex of approval processes

1.5 Owner is present, but not ownership, i.e. Accountability, Responsibility andCredibility

2. Org Culture

2.1 Risk-averse cultures, i.e. fear of change, neglect of change

2.2 Knowledge Gap

2.3 Absence of Innovative mind, i.e. differentiator thoughts

3. Technology

3.1 IT Silo

3.2 Absence of Collaboration

3.3 Absence of Business Partnership concept

3.4 Real time Information

Reasons to Research

In the industry the below views related to customer are being noticed(not limited to that)

Add and Create value to the customer

Take Care of the customer

Attend and Response to the customer

Win-Win approach

Customer Satisfaction

Customer driven quality

Customer is always right

Build a strong Customer Relationship

Continuous communication

Grow together

Reasons to Research Cont 1

Digital Business : The Age of Integration and Collaboration, i.e. ADisruptive Technology or Disruptive Innovation

Business Agility: Flexibility, Nimbleness, and Response Speed

Holistic and Unified Approach

Current Approaches to Business Development

Business Process Re-engineering and/or Re-design

Business Process Optimization

Continuous Improvement

Approaches to Business Process Development

Source: Business Process Analysis and Optimization: Beyond ReengineeringKostas Vergidis, Member, IEEE, Ashutosh Tiwari, Member, IEEE, and Basim Majeed, Member, IEEE

A process is an approach for converting inputs into outputs.

A process has to have:

1. Predictable and definable inputs;

2. A linear, logical sequence or flow;

3. A set of clearly definable tasks or activities;

4. A predictable and desired outcome or result

What a process means

BPR is to re-design the processes of the enterprise in order to achievedramatic improvements in overall performance. BPR is a technique ofchange management to clean-up the fat layers by introducing radicalchanges in operational strategy which should in turn result in competitiveadvantages.

BPO looks into ways to improve the processes in the existing structure.

BPO or BPI is a technique to monitor business processes and how they meettheir business objectives, controlling and optimizing the operations in orderto make them fall in line with the business objectives and accordinglyallocate necessary resources, prioritizing work and selecting the bestservice providers for those processes.

Business Process Re-Engineering( BPR) Vs Business Process Optimization (BPO) orBusiness Process Improvement (BPI)

Core Objective

Reduction of cost, flow time (shortening process cycle time), defects, waste andresource constraints

Flexibility, Scalability, Traceability and Maintainability

Integration and Automation, and Collaboration

Continuous Improvement, i.e. evaluate the process improvements, identify theunderperforming processes

Process Prioritization decisions

Ease of Approval Process

Remove Process Conflict/Deadlock (lack of synchronization)

Mitigate Threat and Risk

Enhance the Satisfactory Level

Data Integrity, i.e. easy to access to the accurate information at the real time -Anytime Anywhere

Business Process Analysis and OptimizationThe Path to the Optimum business outcomes

Quantitative analysis : Objective Approach – Process Performance

and/or Behavior Analysis eliminating performance bottlenecks.

Qualitative analysis : Subjective Approach(Structured Process

Improvement) of developing an existing business process to a better

version eliminating non value-added activities( e.g., redundant,

rework, and supervisory activities), simplifying activities, combining

activities, and increasing the concurrency of activities.

Business Process Analysis and Optimization Cont 1

The Path to the Optimum business outcomes

Source:Best practices in business process redesign: an overview and qualitative evaluation of successful redesign heuristicsH.A. Reijersa; S. Liman Mansarb

Department of Information and Technology, Faculty of Technology and Management, Eindhoven University of TechnologyDepartment of Computing, Communications Technology and Mathematics, London Metropolitan UniversityReceived 25 April 2002; accepted 23 April 2004Omega, The International Journal of Management Science, 33 (2005) 283 – 306,

1. Org Chart:

1.1 IT considers as Cost Center Profit Center

1.2 Departmental Conflict Integration and Collaboration, i.e. Introduce ProcessManagement

1.3 Slow decision-making Quick and Right decision and execution

1.4 Complex of approval processes Simplify Approval procedure

1.5 Owner is present, but not ownership, i.e. Accountability, Responsibility andCredibility Promote ownership culture

2. Org Culture Promote innovation and change, Enable Workforce PerformanceManagement

2.1 Risk-averse cultures, i.e. fear of change, neglect of change

2.2 Knowledge Gap

2.3 Absence of Innovative mind, i.e. differentiator thoughts

3. Technology Introduce compatible Disruptive Technology with the lowest cost

3.1 IT Silo

3.2 Absence of Collaboration

3.3 Absence of Business Partnership concept

3.4 Real time Information

The Path to Process Operation Optimization

In the industry the below views related to customer are being noticed (notlimited to that) Customer Relationship is maintained by Communication,Connection & Interaction/Engagement

Add and Creating value to the customer

Take Care of the customer

Attend and Response to the customer

Win -Win approach

Customer Satisfaction

Customer driven quality

Customer is always right

Build a strong Customer Relationship

Continuous communication

Grow together

The Path to Process Operation Optimization Cont 1

1. Customer-centric processes, i.e. Customer Experience Evaluation/Management

2. Omni-Channel Orchestration

Evaluations of Service Quality = fn (Experience - Expectations)

The integration challenges is now resolved by BPM tool. With the pace ofmarket demand BPM products are changing rapidly though. From the BPMtools Business can

1. Improve process efficiency and effectiveness

2. Increase business agility

3. Deliver better business insight

It is not the scope of this paper to give insight on the BPM tools. But, for theawareness of BPM tools, here I am going to present some examples from theIndustry of BPM.

Business Process Management tools

Business Process Management tools

Business Process Management tools

Business Process Management tools

BPEL Process Manager

Step1

Step2

Step3

Step4

Step5

BusinessProcess

OracleEBS

SiebelCRM

PeopleSoftFinancials

Custom OrderApplication

Mainframe HRApplication

New WebApplication

Standard Interfaces•Cross• -application maps

Quickly integrate •heterogeneous applications using an intuitive, graphical UI

Manage system •performance via web with a user-friendly console

Reduce connectivity •headaches withpre-packaged, standard interfaces for applications and legacy systems

Built on widely adopted•industry standard language (BPEL)

Next Gen. Business Process MgmtIntegrate Oracle, 3rd party & legacy applications to extend process

automation

BPEL – Business Process Execution LanguageSource:Oracle E-Business Suite Release 12Presented by: Senior Solution Consultant at Oracle

Merchandising

Invoice Matching

Sales Audit

Stock Ledger

Accounts Receivable

Cash Management

General Ledger

Accounts Payable

E-Bu

siness Fin

ancials

• Matched invoices

• Credit notes

• Debit memos

• Rebates

• Suppliers• Partners• Addresses• Freight terms

Lower cost integration between disparate systems•Better performance with integrated business flows across applications•

Inbound Retek Data

Outbound Financials Data

• Daily sales

• Cash and deposits

• Inventory

• Sales data

• Payment terms• GL accounts• Currency rates

Integration with Core ApplicationsOracle | Retek Integration with BPEL

Source:Oracle E-Business Suite Release 12Presented by: Senior Solution Consultant at Oracle

The 7 RIGHTS for Better Business Outcomes

Right

Information

Decision

People

Time

Place

Tools

Model

Bring the RIGHT Information to the point of decision so that RIGHT decisioncan be taken and executed promptly by the RIGHT people at the RIGHT timeand at the RIGHT place using the RIGHT tools and RIGHT model.

From the above explanation, it is clear that operational excellence hassignificant impact on the process optimization. It is also clear that withoutadopting Disruptive Technology operational excellence cannot be met at all.

So, let us put the slogan together, “NO MORE CONTINIOUS IMPROVEMENT,PROMOTE ON CONTINOUS IMPROVISATION” and encourage “TO BEDIFFERENT , NOT TO BE BETTER”.

Conclusion

Thank you