The SAP Business Transformation Management Method (BTM2

The SAP Business Transformation Management Method (BTM2) parallels with DYNAMICS/P3 Tim Hornung MS, SAP Joel Adler Ph.D. UPenn

© 2013 SAP AG. All rights reserved.

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What is Organizational Dynamics at Penn about? Dynamics Concentrations


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Alignment of BTM2 & DYNM/P3 A rare industrial situation that sees its business strategy inextricably tied to these two principles of Penn Organizational Dynamics •Holistic

approach

•Balance

of Process and Behavioral perspectives

Mapping of Content of the P3 concentration •Project

Management

•Program •Risk

Management

Management

•Portfolio

Management

•Business

Process Management


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BTM2


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63% of the world’s transaction revenue touches an SAP system.


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The SAP mobile platform reliably delivers 1.8

billion text messages worldwide every day. © 2013 SAP AG. All rights reserved.

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SAP HANA can increase analysis speed by more than 10,000x, equal to walking from California to New York in 6 minutes.


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Our customers produce 85% of the world’s pet food.


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Drivers for Business Transformation (BT) Fundamental and complex changes What What is is Business Business Transformation Transformation (BT)* (BT)* –– Excerpt Excerpt Business Business transformation transformation implies implies fundamental fundamental and and complex complex organizational organizational changes changes within within as as well well as as across across companies companies alongside alongside the the value value chain; chain; business business transformation transformation can can also also radically radically alter alter the the company's company's relations relations with with the the wider wider economic economic and and societal societal environment. environment.

Drivers for BT:

Technological innovations (e.g. Information and communication technologies)

Pressure for sustainability (which results in changed customer preferences or regulations)

Increasing globalization (that leads, for example to stronger competition) Radical changes of economic conditions (e.g. Financial crisis)

Changing workforce (such as increasing global mobility)

* www.fhnw.ch/iwi/bta Ö Business Transformation Research.


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Business Transformation Academy A global, trans- and interdisciplinary network of Thought Leaders

SAP Experts

Customers / Professionals Academics / Institutes New: SAP Partners


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Business Transformation Management Call for action Low Low success success rate rate of of business business transformation transformation projects projects (less (less than than 40%) 40%) Findings Findings

Source: Source: Isern Isern et et al. al. (2009) (2009)

Lack Lack of of holistic holistic management management approaches approaches Source: Source: Winter, Winter, Uhl Uhl (2011) (2011)

X 75% are failing because of non-technical reasons e.g. non acceptance of the solution, skill problems, communication problems, problems with project resources

X 25% Failure because of technical reasons e.g. demands can not be mapped, sizing problems, problems with connecting legacy systems Source: Seven Reasons Why Information Technology Projects Fail (2011) © 2013 SAP AG. All rights reserved.

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The BTM2 – Big Picture

Meta Management

Orchestration of individual disciplines: Guidelines, Leadership, Culture, Values and Communication

Direction

Enablement

Strategy Management

Value Management

Risk Management

Processes Management

Program/Project Management

IT Transformation Management

Organizational Change Management

Competence & training management

AS-ISData Collection

Baseline analysis

360r Strategic Risk Assessment

Determine scope of analysis

Program Planning and Governance

Business and IT Capability Assessment

Set-up & governance

Competence strategy

Analysis of needs & maturity level

Value estimation

Deep dives for strategic risk areas

From template to bespoke inventory

Program & Proj. Integration Mgmt

To-be analysis

Stakeholder management

Training need analysis

Design business vision

Detailed business case

Assess transformation business case

Identify improvements /add attributes

Program & Project Scope Mgmt

Gap analysis

Change agent network

As-is analysis

Design Business Model

Agree ownership for realization

Define risk strategy

Map selected processes

Program & Project Time & Cost Mgmt

IT roadmap plan

Communication management

Gap analysis

Integrated transformation plan

Plan benefit realization

Risk Management Execution

Plan process implementation

Program Quality Mgmt

Solution architecture design

Performance management Project team

Curriculum development

Business Case

Execute benefit realization

Risk Monitoring

Implement processes

Program Human Resource Mgmt

IT Deployment plan

Performance management Business

Training preparation

Organizational model

Review and evaluate results

Identify additional improvement

Evaluate processes

Program Procurement Mgmt

IT Operations & Service Optimization

Change readiness assessment

Training

Risk analysis

Establish potentials for further benefits

Risk Mgmt. as part of Board Governance

Establish CIP

Program Reporting

IT Lifecycle Management

Change monitoring

Evaluation & improvement


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Business Transformation Management Methodology (BTM²) Disciplines and deliverables in detail Meta Management

Orchestration of individual disciplines: Guidelines, leadership, culture, values, and communication

Envision Envision Strategy Management

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Engage Engage

Transform Transform

Optimize Optimize

Detailed benefit estimation

Plan benefit realization

Realize benefit

Benefit review and evaluation

Establish potentials for further benefits

Value Management

Risk Identification

Risk mitigation plan

Execute risk mitigation plan

Risk monitoring

Review and evaluate risks

Risk Management

Business process analysis

Process to-be design

Process implementation

Process evaluation

Run, monitor and optimize

Business Process Mgt.

Solution architecture

IT deployment plan

IT deployment and testing

Plan IT operations

IT operations & service optimization

IT lifecycle management

Transformational IT Management

Execute change plan

Change monitoring

Ensure sustainable change

Improve org. change readiness

Organizational Change Mgt.

Project startup and AS-IS Data collection

2 Analysis of transformation needs and causes (80/20 rule)

3 Design Business Vision

4

Set up change plan Design Business Model

5

Stakeholder, communic. and performance mgt.

Need, as-is and gap analysis

Training preparation

Training Execution

Transfer, application and evaluation

Competence & Training Mgt.

Program/Project initiation

Program/Project planning

Program/Project realization

Program/Project closure

Program and Project Mgt.

Define integrated transformation plan


Strategy to be approved by decision makers

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BTM² - Strategy Management Portfolio of strategic options

high

Design business model: 4 strategic options

Consolidation & Focus: Focus on core competencies/business, Reduction of overcapacities

Ongoing observation Risks and opportunities

low

Overcome stakeholder crisis Increase readiness through sensitization of stakeholders

Strategic redirection Expand core business, transfer and development

low © 2013 SAP AG. All rights reserved.

high

Transformation readiness Public

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BTM² - Strategy Management Transformation need analysis Consideration of different stages: Decreasing flexibility with increasing pressure

high

Transformation stages Capital consumption, negative cash flow Unclear operating results Lack Lack of of liquidity liquidity

Loss of customers Lack Lack of of business business success success

Blockade of necessary transformation efforts Lack of of Lack strategy strategy

Negative impacts not yet visible Lack of of Lack stakeholder stakeholder commitment commitment

Sustained success Lack Lack of of awareness awareness and and knowledge knowledge

low

Pro-active Pro-active management management

Stage 0 high © 2013 SAP AG. All rights reserved.

Stage 1

Stage 2

Stage 3

Stage 4

Stage 5 low

Flexibility to react (time and options) Public

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Organizational Dynamics and P3


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Alignment of BTM2 & DYNM/P3 A rare industrial situation that sees its business strategy inextricably tied to these two principles of Penn Organizational Dynamics •Holistic

approach

•Balance

of Process and Behavioral perspectives

Mapping of Content of the P3 concentration •Project

Management

•Program •Risk

Management

Management

•Portfolio

Management

•Business

Process Management


Public

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Mapping of Dynamics/P3 courses to BTM2 Systems Thinking: Pourdehnad Complexity, Sustainability, and Systems Thinking, Barstow Organizational Essentials for Leadership, Choukroun The Art and Science of Organizational Strategy and Planning,

Meta Management Strategy Management

Direction

Value Management

Risk Management

Process Improvement, Stankard Business Process Excellence, Kirchmer

Processes Management

Managing Project Portfolios, Bayney

IT Transformation Management

Competence & Training Management

Program/Project Management


Enablement

Organizational Change Management

Choukroun Organizational Diagnosis, Kaminstein, Zane Effective Entrepreneurship and Leadership, Keech Is Bigger - Inevitable, Better or Worse in Organizations?, Licht Psychodynamics in Organizations, Hirschhorn Building a Business Case for Sustainability, Barstow, Nuessle Organizational Ethics and Integrity, Fielder Managing Project Risk, Hornbacher Organizational Risk Management, Combrick-Graham

Group Team Dynamics: Kaminstein, Zane Coaching Others to Manage Conflict, Napier Organizational Culture Change, Vanderslice Mastering Organizational Politics and Power, Eldred Knowing Yourself: The Coach as an Instrument of Change, Napier Leader-Manager as Coach, Russo Stories in Organizations: Tools for Executive Development, Greco Organizational Project Management, Choukroun Program Management, Heaslip Public

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Discussion


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Thank You! Contact information: Tim Hornung Practice Manager, Business Transformation Services [email protected] 920-791-0354

Joel Adler P3 Studies Leader, Organizational Dynamics University of Pennsylvania [email protected] 610-940-1941

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The SAP Business Transformation Management Method (BTM2

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