Business Processes Mapping project

Mobile telecom operator

Kate Koltunovawww.koltunova.comkate@koltunova.com+7 (911) 250-22-47

June 10, 2009

www.koltunova.com

Why do we need process models?

Provide company top-management with the actual comprehensive information about existing processes;

Evaluate potential process improvement, estimate benefits, risks and required resources;

Train company staff in process modeling and process management;

Lay the foundations of continuous process improvement and quality management.

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Process Modeling Roadmap

AS-IS high level process model

Detailed process modelsProcess owners in process areas

Benchmarking, Gap-analysis in process areas (eTom, CobiT, ISO 9000, etc.)

Quantitative criterionProcess simulationProcess design

Continuous process improvementProcess monitoring and optimization

• Strong and weak sides of the company – what we can use and what should be improved

• Existing and future management style – self-identification and target – level of planning and control, motivation

• Long term forecasting/planning - changes in business/market environment (do we need scratch cards after 3 years?) – where do we go?

• Communication of the company long term and short term goals and objectives (market segments – retail and corporate, product policy, client service, partnership with content providers)

• Competitive advantages for clients and partners

We have to understand business to design useful process models

• Focus on processes with the high influence on company strategic objectives – core processes

• Top-down company’s priority driven process discovery/modeling approach

• Use Industry standards (eTOM) for process identification• Utilize existing company recourses (QA library,

departments’ procedures, etc.)• Work together with process owners to define processes(have to be agreed and reviewed periodically)

Principles are important for process modeling project – be consistent

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Evolutional approach - quick results, learning

Start from simple tools – MS Visio Use basic notation - Process Flow charts Evaluate professional tools like ARIS Evaluate potential of Process repository and

Process simulation Build AS-IS model from scratch. Mapping to

eTOM, etc. later

Business Process Identification

• Organization Structure• Interviews• IT Architecture• Reporting• Projects Documentation• QA documentation• Departments Procedures

1. Top-down method — Begin with the process management documents and then create the lower tier documents – for small companies.

2. Bottom-up method —Work from the set of high level process documents documents to create detailed processes and process management system – for large organizations with mature documentation.

3. Process-flow method — Start with a flow analysis of the organization's processes and procedures and create the process management and high-level processes concurrently. This is an iterative process. The flow analysis ensures consistency between the various documentation levels and minimizes redundancy, especially between the policy statements and the procedures - no limitation.

Three process modeling approaches

Company Top-Management• Set Project Priorities• Provide resources

Departments / Process owners• Design and update processes• Consult with resource owners

Processes and Procedures Sub-Unit• Develop Process Management Methodology• Design and Maintain Process Management Tools and Infrastructure• Process Mapping• Estimate process improvement potential

Process modeling needs commitment at all organizational levels

• “a process is how work gets done, using technology, by people with certain skills in an organisation, incentivised and managed through specific systems, behaving according to personally held beliefs and values”

M. Hammer, J.Champy• Process - A process describes systematic sequenced set of functional activities

that deliver a specified result.(eTOM)

• Process is a sequence of interdependent and linked procedures which, at every stage, consume one or more resources (employee time, energy, machines, money) to convert inputs (data, material, parts, etc.) into outputs. These outputs then serve as inputs for the next stage until a known goal or end result is reached.

(Business Dictionary)

Definitions: process

• Has Goal• Has Inputs• Has Outputs• Transforms Inputs into Outputs• Uses Resources• Has some activities that are performed in some order• Creates value for the customer (internal or external)• May Create/Read/Update data• Have responsibility model: responsible – «process owner»,

accountable, consulted, informed (RACI)

Process characteristics (eTOM)

Define Process Area, Process Name, Process Owner, Process internal/external clients

Define Process Purpose

Define Process Participants (Organizational Units, employees)

Analyze related processes and procedures

Interviews with process Owner, process participants and Process internal/external clients

AS-IS Process Mapping Steps

Process owner - person who has the ultimate responsibility for the performance of a process in realizing its objectives measured by key process indicators, and has the authority and ability to make necessary changes.

Process owner is responsible for coordinating and managing the workflow and activities at every stage and level of a process. As new technologies and processes are introduced within an organization or workplace, the process owner would be responsible for integrating the everyday execution of that process.

Who are you Mr. Process owner?

Personal, information technologies, organizational culture – resources and infrastructure to support efficient business processes

Business processes to provide declared values for selected

clients

Values for clients. Products / Services. Price, quality, quantity, brand, additional service. Market segmentation

Shareholder goals and objectives for company growth , productivity, financial results, etc.

Processes provide value for clients and use personal and the infastructure

CSF-relevance

Process Performance

Low

High

High (+)

Low (-)

Processes’ objectives derive from success factors for business

segmentsBusiness segments strategy

• Private• Corporate

Process goals

• Process 1 (t, q, $)

• ….• Process N (t,

q, $)

Market

Product/Service

Private

Corporate

VoiceIN/VAS

Business segments matrix

Process PortfolioInnovation

Standard

Flexible

…..

Proc

ess

type

s

SIPFABEnterprise

Processes

Processes

CSF-factorCSF1CSFn

CSF-relevanc

e

Process Performance

Low High

High (+)

Low (-)

Process portfolio

Sales Chanel Development

Dealer Management

Corporate Sales

Contract Management

Sell SIM-Cards

Process management: potential for improvement

Activities Process ExamplesIntroduce and design new processes

•Security and information access level identification•Knowledge Management•Research Management

Define and structure existing processes

•New employee introduction•Network Deployment•Project management and control•Organization Development

Optimize and improve existing processes

•Procurement•Move Order

Redistribute functions within Departments

•Remove Accounting functions from Warehouse, Warehouse function from Sales, etc.

Marketing Process

Technology

Processes

Sales Processes

Customer Support

Processes

Mobile Telecom Operator Process Areas

HR Finance Legal Planning Operations

Facilities RegulationsCorporate

Communication

Audit Security

S&D Department Processes

Sales and Distribution

Retail S&D

Plan retail sales

Build and support

Distribution Channel

Monitor Cannel

Performance

Distribute SIM/Scratch

cards

Corporate Sales

Plan Corporate Sales

Acquire new Client

Client Retention

Client complains

management

COSs management

SIM/Scratch provisioning

Plan SIM/Scratch

supply

Order SIM/Scratch

Cards

Monitor supply and activation

MSISDN management

Marketing support

Telecom news digest

production

Market information gathering

Marketing material

distribution

Marketing campaigns

support

Marketing materials

design consultancy

Contract Management

Contract Data Entry

Contract Legal requests

Contract Archiving

Department Management

Sales Plan vs. actual tracking

Staffing

Personal Training

Performance appraisal

Discipline control

Internal procedures

improvement

Process management framework for Mobile Telecom Operator

Company Process Management Methodology

eTOM process decomposition hierarchy Business Process Owners Mapping

Process Model Repository

Process Documentation sources/version

control

Process/Model Publishing/Distributio

n Tools

Security Policy

Modeling Tools

Process Documents Structure

Process Documents Workflows / Lifecycle

Process Documents Templates

Quality Standards External Requirements

Define Processes and Procedures sub-Unit Roles and Responsibilities

Define and process structure and define process owners

Design process implementation and control routines

Establish process documentation and models control and distribution infrastructure (repository)

Populate the repository with updated and designed process management artifacts

Process Management: main steps

eTOM, Org. Structure, existing

processes

Management principles

• A Business Process Repository is a central location for storing information about how an enterprise operates, it is required to: how a process should be applied;

• maintain document lifecycle

• support version controls

• expected results should be upon process completion.

• Business Process Model (Object) repository stores information about individual Process Model Objects (documents, functions, org. units, roles, etc.). It is required to:

• ensure model consistency

• Improve modeling efficiency

• support multiuser

Business process model repository

Process Description Form

Process Area eTom ref

Process Name eTom refProcess Owner

Inputs Outputs  

ParticipantsProcess

Objective(Purpose)

Process Flow(AS-IS)

Problems:

  

Resources Time spend Period of execution

A reference model is a model designed to pass on knowledge, such as process knowledge. It can make recommendations or be of a prescriptive nature. There are two main features that such models share:

• Universality, e.g., they apply to all companies in a certain sector• The other feature is the models’ recommendatory nature, i.e., they serve as the starting

point for company-specific implementation. Every reference model is intended as a guide only, of course, and must be adapted to the individual circumstances of your organization.

• eTOM – enhanced Telecom Operations Map – the business process framework for the Information and Communication Services Industry.

• Will help to uncover existing processes• Defines processes that have to be established in Telecom company

eTOM as a reference process model

eTOM Business process Framework – Level 0

eTOM Business Process Framework – Level 1 Processes

eTOM Business Process Framework – High Level Mapping

Marketing Department

Technology Department

Sales and Distribution Department

Customer Care and Roaming Department

Sales and Distribution Department

CEO Area Financial Departm

ent HR

Processes anв

Procedures UnitCorporate

Communications

Internal Audit

Corporate Communicat

ions

Mapping eTOM processes to organizational structureProcess owners

(Areas/Departments)

eTOM processes (Level 2)

CEO AREA

CMO

AREA

CTO AREA

CFO AREA

Corporate Communications

HRInternal Audit

Legal

Procuremen

t

CC&R

Marketing

Regulatory and Carrier

Sales & Distribution

Facilitie

sFinance

Warehouse &

Logistic

s

Information Technology

Networ

k Deploy

ment

Networ

k Engineering

Networ

k Operations &

Maintenance

PMO

Customer Relationship ManagementService Management & OperationsResource Management & OperationsSupplier/Partner Relationship ManagementMarketing & Offer ManagementService Development & ManagementResource Development & ManagementSupply Chain Development & ManagementStrategic & Enterprise PlanningEnterprise Risk ManagementEnterprise Effectiveness ManagementKnowledge & Research ManagementFinancial & Asset ManagementStakeholder & External Relations ManagementHuman Resource Management

Company may decide to map various Level 2 process elements to different

departments – (eTOM GB921-G)

eTOM provides examples of process mapping (GB921-G)

1. Permanent process changes during design stage will slow down process design AS-IS

2. Lack of management resources to establish process discipline (approve and maintain defined processes) will not allow to establish new processes

3. Uncoordinated company activities and initiatives in process management will undermine project results

4. Technical problems with BSS IT systems will slow down introduction of new efficient business processes

Project Risks