Business Process Analysis and Optimization: A Pragmatic Approach to Business Operations

Presented by: Md Mozammel Hoque Optimization 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, Program Manager , 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 Consultant at Huawei (West Africa Region), as Oracle Database Trainer at IBCS-PRIMAX and as APPS DBA at DatabaseIntelligence (Russia) on behalf of DataIntensity (USA) .

He has been the speaker on Optimization: Business and IT 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, and Airtel Telco on behalf of Huawei (China), ITS (Kuwait), DataIntensity (USA) and DatabaseIntelligence (Russia). He supported more than 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 Nigeria project from Huawei, and two times best performance award (2010 and 2011) from Zain (now Airtel) Telco in Nigeria on behalf of International Turnkey System. His Greatest Achievement is an Innovation of a unique solution in IT industry: how to fetch CLOB Data across the databases, which was published in HUAWEI (a research based on a real scenario in Nigerian Etisalat Telco operation, 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, Oracle Certified Specialist (OCS) - Oracle Database 11g Data Warehouse, Oracle Certified Professional (OCP)- R12, 11g, 10g and 9i. He also 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 in 2006 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 how to keep the business processes continuously optimized in highly uncertain and unexpected markets. This turbulent market situation has been brought two major challenges - Socio-cultural (Behavioral) challenge and Technical challenge (IT). The current industry practice and the academic researchers are trying to get out of this by looking the answer from the technology and business model end: “HOW” to manage the challenges of continuous change concentrating on flexibility and speed, maintainability and scalability, cost. Aftermath of it, there is numerous business process modeling techniques are being proposed by the researchers and the technology industry that well captures both approaches - Quantitative analysis: Objective Approach and Qualitative analysis: Subjective Approach though these approaches have its own drawback. (It is not the purpose of this seminar to enlighten on this drawback.) But, the socio-cultural challenge is ignored though our investigation reveals that Information behavior changes faster than information systems, which has driven us to work on it. Therefore, the aim of this seminar is to demonstrate 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• Business Process Re-Engineering( BPR) Vs Business Process

Optimization (BPO) or Business Process Improvement (BPI)• Business Process Analysis and Optimization: The Path to the

Optimum business outcomes• Business Process Management tools• Outstanding Result of Business• Conclusion

Agenda

A Process-based approach, in order to achieve a desired business outcome, is well adopted in today’s businesses acknowledging the success of businesses is tied to the optimized processes. As of now, researchers have given a massive effort to reach a common platform as best practice. Aftermath of it, we have now versatile Business Process Modeling techniques along with Business Process Tools in the industry. Yes, it is true, to some extent, the technical challenge (IT) is well met, but the socio-cultural challenge is not met yet though our investigation reveals that Information behavior changes faster than information systems. Technology can solve the process integration point, but without operational excellence business process optimization cannot be achieved. Therefore, the aim of this seminar is to 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 maintaining

bottom-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 Conflict1.3 Slow decision-making1.4 Complex of approval processes1.5 Owner is present, but not ownership, i.e. Accountability, Responsibility and Credibility

2. Org Culture2.1 Risk-averse cultures, i.e. fear of change, neglect of change2.2 Knowledge Gap

2.3 Absence of Innovative mind, i.e. differentiator thoughts 3. Technology

3.1 IT Silo3.2 Absence of Collaboration3.3 Absence of Business Partnership concept3.4 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. A Disruptive 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 DevelopmentA process is an approach for converting inputs into outputs.

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

BPR is to re-design the processes of the enterprise in order to achieve dramatic improvements in overall performance. BPR is a technique of change management to clean-up the fat layers by introducing radical changes in operational strategy which should in turn result in competitive advantages.

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 meet their business objectives, controlling and optimizing the operations in order to make them fall in line with the business objectives and accordingly allocate necessary resources, prioritizing work and selecting the best service 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 and resource constraints

Flexibility, Nimbleness, and Response Speed, Availability, Scalability, Traceability and Maintainability

Integration and Automation, and Collaboration Communication, Connection & Interaction/Engagement Continuous Improvement, i.e. evaluate the process improvements, identify the

underperforming processes Process Prioritization decisions Ease of Approval Process Remove Process Conflict/Deadlock (lack of synchronization) Mitigate Threat and Risk Enhance the Satisfactory Level Access to Real-time data: Whenever, & Wherever

Business Process Analysis and Optimization:The 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 1The Path to the Optimum business outcomes

For better business outcomes Process Champion and/or Process Owner should follow the bellow approaches according to the situation.

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 Center1.2 Departmental Conflict Integration and Collaboration, i.e. Introduce Process Management1.3 Slow decision-making Quick and Right decision and execution1.4 Complex of approval processes Simplify Approval procedure 1.5 Owner is present, but not ownership, i.e. Accountability, Responsibility and Credibility Promote ownership culture

2. Org Culture Promote innovation and change, Enable Workforce Performance Management 2.1 Risk-averse cultures, i.e. fear of change, neglect of change2.2 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 Silo3.2 Absence of Collaboration3.3 Absence of Business Partnership concept3.4 Real time Information

The Path to Process Operation Optimization

In the industry the below views related to customer are being noticed (not limited 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 of market demand BPM products are changing rapidly though. From the BPM tools Business can

1. Improve process efficiency and effectiveness2. Increase business agility3. Deliver better business insight

It is not the scope of this paper to give insight on the BPM tools. But, for the awareness of BPM tools, here I am going to present some examples from the Industry 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 adoptedindustry 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-Business Financials

• 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

InformationDecisionPeopleTimePlaceToolsModel

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

From the above explanation, it is clear that operational excellence has significant impact on the process optimization. It is also clear that without adopting Disruptive Technology Business Outcome cannot be met.

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

Conclusion

Thank you