Reverse interaction modelling

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Reverse Interaction Modelling™

designing a better business bydesigning better interactions

Marc Buyens

[email protected]

www.xpragma

contents

� a bit of history

– e-business strategy development

– Business Interaction Management

� Reverse Interaction Modelling (RIM)

– RIM objectives

– basic principles

– the Europrofiles case

a bit of historya bit of historye-business strategy development

the basic model

e-businessvision

e-businessvision

processchange

processchange

businessprocesses

businessprocesses

businessreality

businessreality

businessobjectives

businessobjectives

e-businessprinciples


opportunitiesopportunities

selectedopportunities


process change methods

� Intensification:Intensification:Intensification:Intensification: improving processes to serve current customers better

� Extension:Extension:Extension:Extension: using strong processes to enter new markets

� Augmentation:Augmentation:Augmentation:Augmentation: expanding processes to provide additional services to current customers

� Conversion:Conversion:Conversion:Conversion: taking a process that you perform well and performing it as a service for other companies

� Innovation:Innovation:Innovation:Innovation: applying processes that you perform well to create and deliver different goods or services

� Diversification:Diversification:Diversification:Diversification: creating new processes to deliver new goods or services

Michael Hammer, Beyond Reengineering, How the Process-Centred Organization is

Changing Our Work and Our Lives

no, not really

my piece of

cake...

process change methods

a bit of history a bit of history Business Interaction Management

“A business process is a set of coordinated tasks and

activities, conducted by both people and equipment,

that will lead to accomplishing a specific organizational

goal. Business process management (BPM) is a

systematic approach to improving those processes.”

www.SearchCIO.com

what is a business process?

“At its most generic, any set of activities performed by

a business that is initiated by an event, transforms

information, materials or business commitments, and

produces an output. Value chains and large-scale

business processes produce outputs that are valued

by customers. Other processes generate outputs that

are valued by other processes.”

www.BPTrends.com


“A business process is how an organisationhow an organisationhow an organisationhow an organisation does does does does its its its its

workworkworkwork — the set of activities it pursues to accomplish a

particular objective for a particular customer, either

internal or external.”

Thomas H. Davenport


a business process...

what does it LOOKLOOK like?

http://xpdl.org/wiki/Wiki.jsp?page=TroubleTicketScenario

what does it look like?


IDS Scheer AG, ARIS

Metastorm ProVision Business Process Analysis


a business process...

what’s WRONGWRONG with it?

what’s wrong with it?

nothing,

really…

nothing really, but…

it is

about

HOWHOWwe do

things


Mark Fishman, MD, president of the Novartis Institutes for BioMedical Research

“If there is one device that has destroyed more

innovation than any other, it is Six Sigma”


it is essentially

about NOWNOWand about

STRUCTURESTRUCTURE


it is

essentially

about USUS


business processes

reach endpoints…


BIM white paper

“At the moment we cross the border of our

process workspace, we reach endpoints, not to say

wastebaskets. The business process ends. We

passed the Pillars of Hercules where the sea falls

into an endless chasm.”


is there life

at the other sidethe other side?

the case for

Business Interaction Business Interaction

ManagementManagement (BIM)

Business Interaction Management

is the field of expertise that

encompasses the planning, the

design and the control of how a

company's business processes

interact with the (business)

processes of other internal and

external parties

what is BIM?

In the universe, any object that is not interacting with

another object is in a void. It might as well not exist

since no other object is aware of it.

For humans, any human that is not interacting with

another human does't exist. Whatever wild

movements they make in their little room, they are an

object in a void.

Interactions matter. They make things real.

Σ (interactions) = your_business

so, design your business so, design your business by designing the interactionsby designing the interactions

the new economic order

marketmarket

lead partner Alead partner A

coordinator Bcoordinator B

coordinator Acoordinator A

contributor Bcontributor Bcontributor Acontributor A

contributor Ccontributor C

lead partner Blead partner B

HP-EDS merger

24.600 layoffs

7,5% of workforce

the war for against talent

tacit interactions

McKinsey Quarterly

“Tacit interactions are

becoming central to economic

activity. Making those who

undertake them more effective

isn’t like tweaking a production

line.

the interaction as the real product

Own the Customer’s

Total ExperiencePatricia B. Seybold

envisioningenvisioningBusiness Interaction

Management

not about reengineering processes, but about designing a businessbusiness

� instead of designing process building blocks that stack up into the sky (and hopefully towards our objectives), we must design our business top-down by defining the interactions we want with all parties involved

� not events, not inputs and outputs become the delimiters of business processes, but interactions become the primary controls

� interactions become the purposepurposepurposepurposepurposepurposepurposepurpose of business processes, instead of the unfortunate consequence

designing the business…

companycompany

customerscustomers employeesemployeespartnerspartners

i1 { time,content,form,quality,emotion,…}




companycompany

customer 2customer 2 customer 3

customer 3customer 1customer 1

i21 { time, content, form, quality, emotion, …}





employee 25employee 25

customer 107customer 107


businessprocess

stuff


Reverse

Interaction

Modelling

Reverse Interaction Modelling (RIM) is a

structured approach that supports the

discovery and the definition of better

business processes by focusing on the

specifics of the interactions that occur

within/between these processes

RIM: what is it?

RIM objectives

� provide a structured approach that facilitates innovative thinking on all layers of the enterprise

– low footprint: requires little formal training; no “methodology”; limited need for facilitators

– formal: fixed sequence of steps; limited need for ‘creative’ thinking

– few boundaries: promoting ‘out-of-the-box’ thinking

– guaranteed: when done well, is likely to uncover the potential opportunities/needs

– business focused: focusing on the ‘what’ that is being achieved

– interaction focused: focusing on the ‘other side’ of the interaction equation

limitations

� assumes a sufficient degree of ‘openness’ within the organisation

� assumes willingness to question the current status quo

� facilitator will be needed for the first exercise(s)

� does only cover the interaction specifics, not the complete solution

� does not cover the feasibility analysis, nor the prioritisation of identified opportunities

the basic model

e-businessvision

e-businessvision

processchange

processchange

businessprocesses

businessprocesses

businessreality

businessreality

businessobjectives

businessobjectives



opportunitiesopportunities



RIM basic principlesbasic principles

the Europrofiles case

ProVision Workbench, Proforma Corporation

process change objectives

to design a new price

information delivery process allowing our

partners to have easy access to up-to-date

information regarding our offering and the

corresponding prices and promotions

RIM basic principles

� definition of scope

� focus on the ‘deep process’

� look for the ‘extended process’

� analyse the existing interaction dynamics

� let your creativity do the rest of the work

five basic steps:

1. definition of scope

� reduce complexity by focusing on a specific process or subset of processes

� agree on the level of potential process change that can be assumed

� try avoiding too much organisational boundaries

2. focus on the ‘deep process’

� reduce complexity by looking at the “deep process”

– “…mapping the key goals and interrelationships of activities at a deeper level – to define the essence of a process in a way that allows a great deal of creativity and customisation in how it is actually carried out…” *

� the very essence of what is being achieved, not how it is being performed today

� focus on the main interactions between all parties involved

� not restricted by a specific organisational structure

* Thomas W. Malone, The Future of Work, How the New Order of Business Will

Shape Your Organization, Your Management Style, and Your Life

3. look for the ‘extended process’

� abandon the traditional intra-company view

� look for all interactions with stakeholders that might be impacted

� describe the process as a sequence of interactions

� initially, do not take into account existing intra-company interactions

4. analyse the interaction dynamics

� identify the key metric(s) that will measure success

� starting from this point

– identify the system dynamics that determine success

– identify the inhibitors for success

– identify which interactions are influencers

– (re-) formulate the requirements for deep process change

5. let your creativity do the rest of the work

oh my

God…

oh my

God…

the EuroprofilesEuroprofiles case

the Europrofiles case

ProVision Workbench, Proforma Corporation

process change objectives

“Design a new price information

delivery process allowing our partners

to have easy access to up-to-date

information regarding our offering and

the corresponding prices and

promotions”

focus on the ‘deep process’

look for the ‘extended process’…

five questions every mentor must ask

� what is it that you really want to be and do?

� what are you doing really well that is helping you get there?

� what are you not doing well that is preventing you from getting there?

� what will you do differently tomorrow to meet those challenges?

� how can I help / where do you need the most help?

Anthony Tjan, CEO, Managing Partner and Founder of Cue Ball

http://blogs.harvardbusiness.org/tjan/2009/03/five-questions-every-mentor-mu.html

identify the key metric(s) that will

measure success

identify the key metric(s) that will

measure success

identify the system dynamics that

determine success

identify the system dynamics that

determine success

identify the inhibitors for success

identify the inhibitors for success

identify which interactions are

influencers


influencers


influencers

reformulate the process change

objectives

� for the deliver-pricing-information interaction

– to have access to up-to-date information regarding our offering and the corresponding prices and promotions in such a way that it avoids re-entering of pricing data

� for the make-proposal interaction

– to be able to generate quotes without the need to re-enter pricing data and in such a way that it allows removing the customer’s perception of only dealing with a small company”

“Design a new price information delivery process allowing

our partners

let your creativity do the rest of the

work

not again…not again…

Epilogue

For our little business case, the company that gave the initial idea for

this case moved to a web-based solution that gave their partners

access to the latest offering and price information and that allowed

for entering the details of proposals. The company then would print

professionally looking proposal documents, customised for each

partner company, that then were mailed by the company to the end-

consumer.

By creating this service, the company also gained a greater lock-in of

their partner channel since most of these partners became more

dependent upon these services.

annex

Creative Commons

polandeze

Jaap Steinvoorte

Jen SFO-BCN

AngelsWings

ButterflySha

nailbender

littledan77 jenny downing

Araleya

Lessa0502

FaceMePLS

surfstyle

Creative Commons

AngelsWings @ http://www.flickr.com/photos/linhtinh/

Araleya @ http://www.flickr.com/photos/araleya/

ButterflySha @ http://www.flickr.com/photos/butterflysha/

FaceMePLS @ http://www.flickr.com/photos/faceme/

Jaap Steinvoorte @ http://www.flickr.com/photos/stoneford/

Jen SFO-BCN @ http://www.flickr.com/photos/jenniferwoodardmaderazo/

jenny downing @ http://www.flickr.com/photos/jenny-pics/

Lessa0502 @ http://www.flickr.com/photos/wandererwoman/

littledan77 @ http://www.flickr.com/photos/pressthebuttononthetop/ /

nailbender @ http://www.flickr.com/photos/nailbender/

polandeze @ http://www.flickr.com/photos/polandeze/

surfstyle @ http://www.flickr.com/photos/surfstyle/

resources

� original BIM white paper

– http://www.xpragma.com/english/content/pdf/XD-BIM-wp-E.pdf

� BIM twine

– http://www.twine.com/twine/112v41gh7-b4d/business-interaction-management-bimor viahttp://www.xpragma.com/atom_feed_bim.php