bpm lifecycle establishment at nec, the success...

Takao Tsuji, General ManagerNEC Management Information Systems Division

BPM lifecycle establishment at NEC, The success story

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Agenda

• Introduction Background and project profile

• Three major success factors “Organization” “Methodology” “Infrastructure”

• Conclusion Results and lessons learned

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IntroductionWhy NEC adopted BPM?

4Kaoru Yano

About NEC Corporation

Financial results are based on accounting principles generally accepted in Japan.Nobuhiro Endo

Established: July 17, 1899Chairman of the Board: Kaoru Yano

President: Nobuhiro EndoCapital: ¥ 397.2 billion

- As of Mar. 31, 2010 -

Consolidated Net Sales: ¥ 3,583.1 billion- Fiscal year ended Mar. 31, 2010 -

Employees:NEC and Consolidated Subsidiaries

142,358- As of Mar. 31, 2010 -

Consolidated Subsidiaries: 310 (Japan:118, Oversea:192)- As of Mar. 31, 2010 -

NEC is large-scale global Company with the long history.

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199564-bit RISC microprocessors

2004First mobile phone application processor with parallel processing

2005The thinnest cellular phone terminal in the world

1980World’s first digital signal processors

High-performance, trustworthy

IT technologyInnovative

device and nanotechnology

Next-generationnetwork technology

Society in the future

2008New power-saving server:

ECO CENTER

2007Single-chip vector processors for super computer

1982Personal computers:

PC9801

1899Desktop telephones

2002World's fastest computer:

Earth Simulator(for JAMSTEC)

1980Swiss satellite communications earth station

1955Crossbar switching systems

1974Mainframe computers:ACOS Series

1974Mainframe computers:ACOS Series

2006World’s first 40-Gbps reconfigurable optical add/drop multiplexer (ROADM) for next-generation optical networks

A History of C&C Innovation

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NEC Group Vision 2017

To be a leading global companyleveraging the power of innovation

to realize an information societyfriendly to humans and the earth

Established in 2008

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Globalization

Reorganization

Economic Crisis

Speedy management Low-cost management

To remain competitive in the global market, NEC needs...

NEC

Compliance

Business Environment changes suddenly.

Process and System standardization is essential.

External Challenges of NEC [2008]

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Internal Challenges of NEC [2008] Individually optimized Processes and IT systems

Business Processes IT systems

...

Process and System standardization is necessaryin order to align Business & IT.

differ in every company / organization

differ in every organization /application

Process AreaA

B

C

Org. Process Area

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Framework of Management System Reform at NEC

1. Strategy1. Strategy

2. Organization2. Organization

3. Business rule3. Business rule

4. Business processes4. Business processes

5. IT system5. IT system

6. Code / Data6. Code / Data

7. Infrastructure7. Infrastructure

Business structureReform

Business structureReform

Business processes

Reform

Business processes

Reform

IT ReformIT Reform

ManagementElements

ManagementSystem Reform

Management System Reform consists of three sub-reforms.

NEC_G1Project

by following aprocess driven SAP

approach

2008 ~ Apr. 2009

Jul. 2008 ~ Oct. 2010

(G1 = Global One)

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Business Goal NEC’s Objective: To improve the Business Performance

toward “NEC Group Vision 2017”.

NEC Group Vision 2017To be a leading global company leveraging the power of innovationto realize an information society friendly to humans and the earth

V2012 -Beyond boundaries, Toward our Vision-Net earnings 800M Euro, ROE 10%, International revenue rate 25%

NEC_G1 Project (2008-2010)Simple business processes with global competitiveness

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NEC_G1 Project Framework To realize the business objectives, NEC has launched the

NEC_G1 Project supported by a BPM initiative.

NEC_G1 Project

Process Code IT(SAP)

Process Owner System GBP (*1)

(*1)GBP = Global Business Process Competence Center

Standardization and Optimization

BPM Governance

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NEC_G1 Project Schedule It takes only 2 years from starting project to systems cutover.

2008 2009 2010Event

BPMGovernance

StandardizationandOptimization(Process, Code, IT)

NEC_G1 Project

Organizational Reform

Process Owner CouncilGBP

Integrated Process Review (HQ) 1st ~ 4th

Cutover

Process Review

GlobalWorkshops

JapanUS APAC EMEA

Latin America

Ph.1 Ph.2

… milestone

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Success FactorsOrganization, Methodology, Infrastructure

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Major Success Factors To be successful in BPM...

MethodologyMethodology OrganizationOrganization

Tools(Infrastructure)


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Strong commitment of top management Leadership of process owners Employees' understanding of innovation Passion for innovation

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Top DownApproach

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Globalstandard process

Globalcommon code

Process owner system Code owner system

Accounting

Sales

Procurement

Functional areas

SI Equipment Mass sales Device

Business areas

Achieve total optimization of the value chain

Standardize business

processes in a simple w

ay

Process Owner Organization in NEC

… Process Owner

Functional area P/Os standardize business processes. Business area P/Os optimize the value chain.

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NEC’s Change Management approach

TopManagement

ManagementStaff

Business Unit

Division

NEC_G1 Project activitiesNEC’s Regular Operation

NEC group President meeting

President letters (via web)

Steering Committee

Process Owner Council

Integrated Process Review

Global WorkshopOperational orders from the head of BU

Management meeting

Business Segment feasibility review

Various change management boards and activities to make a consensus from the top management down to the employees.

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Latin America

Japan

EMEA ChinaNECAM

: completed

: planned

Global Workshops

APAC

Through the Global Workshop, we involved NEC employees around the world in the NEC_G1 project to share the standard processes, to analyze the gap and agree on a solution policy.

Dec. 2009Dec. 2009

Mar. 2010Mar. 2010

Feb. 2010Feb. 2010

Nov. 2009Nov. 2009

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Clear BPM lifecycle and Continuous Improvement concept ONE INTEGRATED Business Architecture (Process – Code – System) Release Cycle Management Roll-out / Roll-in framework

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Definition of strategy•Visualization of current processes•Determination of requirements

Definition of standards•Decision on process scope•Standard design

Strategy

DesignImplementation

Control

BPM operation•Process operation and monitoring• Improvement planning

IT implementation•Development and Test•Preparations for operation

BPMBPM

Business Process Management To realize business objectives, NEC established BPM

lifecycle and continuous improvement concept.

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Process hierarchy

Level 1Top

Managementviewpoint

Process owner viewpointLevel 2

Level 3 Field Managerviewpoint

Level 4 Workerviewpoint

ARIS representation

Process map

Process tree

Overview-flow

Detailed-flow

Drill dow

nD

rill down

Process Level Concept at NEC Processes are managed integrally and hierarchically from the

viewpoint of Management, P/O, Field Manager, and Worker.

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IT systemimplementation

IT systemimplementation

TrainingMaterialsTrainingMaterials

Organizations

Products and services

Data Functions

Processes

Business Process Design

Global ProcessRoll-out

Global ProcessRoll-out

Internal control(SOX)

Internal control(SOX)

PerformanceMonitoring

PerformanceMonitoring

Go-To-MarketSolution

Go-To-MarketSolution C&CApplication System Design

SAP Solution Manager

Blueprint

The Use of Standard Business Processes Business processes stored in the ARIS repository are used

in diverse ways.

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<Implement>Deployment

Model

<Template>Global

Standard

Domestic (SI) model Overseas model Domestic (Manufacturing) model

Customization specific to each local company

Global standard

Global standard

HQ

Global standard

Domestic (SI)standard

A B C

Global standard

Domestic (Manufacturing)

standard

D E F

Global standard

Overseasstandard

G H I

Headquarters

BPM Methodology Global Rollout

ARIS-SolMan-Blueprint

Deployment Models implement its specific requirements based on the Global standard template.

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Global standard BPM tools (ARIS) ONE LANGUAGE: Definition of global Methods, Standards

and using convention suited for the company Process and IT Synchronization mechanism Process Monitoring systems.

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Business ProcessBusiness Process IT SystemIT SystemRisk-ControlRisk-Control！ C

System Screen DataRisk ControlBusiness (Manual)

Business (SAP)

Business event

ARIS

One Integrated business architecture

One Language,One NEC !

Designs of Process / Risk-Control / IT System are managed in a integrated way, and published globally via the Web.

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Business Process

Business Scenario

[sample]検索条件を入力する

検索条件が入力された

S YS

[sample]検索条件入力

検索条件入力処理が実行された

[sample]XI

SYS

[sample]コンタクト履歴検索条件照会

[sample]コンタクト履歴検索条件


[sample]認証処理

認証された

無効な条件が指定された

正常な条件が指定された


[sample]EC

[sample]検索条件再入力①

[sample]検索条件再入力①

無効な条件が指定された

[sample]コンタクトデータ検索画面

[sample]ECサイト管理部門

MRP/purchase

order/release order

Deliver

OrderConfirmation

Demandnotified

Purchase order /purchase order

change releasedto supplier

Supplier

S.S 225

Receive mate-r ial/ service(shipmentvs.order)

Material delivered

ProjectProcessing

Serviceparts

delivered

Mater ialavailabilitynotification

sent

ServicePar ts BU

ServicePar ts BU

Mater ialavailability

request sent

Supplier

Mater ialavailability

request sentto supplier

Supplier

Service partorder

responsesent

Notification forservice par ts with

incidence sent(Event Mgmt.)

Mater ialdelivered to

site

Mater ialunknown

notificationsent

Sourcingdemand

is defined

ProjectProcessing

Demandrequirementsestablished

RF Q/ offermaterialgroups

Contractconcluded

Contractingmater ial groups

Deliver

D eliver

Direct deliveredmater ial received

and verifiedat site

Demandnotified

Make

Product at the goods receiving

place

Product supplied

+ installed

Purchase order/purchase order

changereleased

S.L 210

Demandchanged

Settle offic ialformalities

before delivery

Marketing & sales

Sales planning Pre-salesmanagement

—˜—p“x: 10,000.00

Sales ordermanagement

Channel management

Billing

Production Customer services

Strategicplanning &

implementation

Budgeting &controlling

Where, Who, What?

Process Area

BusinessOverview

Customization definition documentMaster definition documentAdd-on requirement

definition documentAdd-on requirement

specificationTest specificationMigration specificationInstruction manualOperational manual

Transaction codesProgram IDIMG (description of

customization)RoleTransport number

[Documents]

[Implementation]

ARIS SolutionManager

ARIS-SAP SolutionManager Synchronization

The process designer can check how processes have been implemented. The system developer can check which processes are relating to the system.

Process hierarchy and IT documents are automatically synchronized.

process hierarchytransaction

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PQM

PGM PPM

Process Governance Monitoring Process Performance Monitoring

Process Quality Monitoring

Process Monitoring Activities Process Monitoring is crucial for continuous improvement.

Keep the Process “Effective”

Keep the Process “Clean”

Roll-out the process “Accurately”

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DetectionImprovementrequirement

BI

！

bad

Implementation

good Cube

Cause

Impact

×

×

Log extraction

ERP

Financial KPIsProcess KPIs

Process Performance Monitoring

Standard Processes

ARIS-SolMan Synchronization

Clustering

Roll-in

Clustering

Process Monitoring enables not only to measure results but also to identify the causes and impacts in processes.

PPM BI

Compare

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ConclusionToward a further level of BPM maturity

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• In most of the BPM topics, NEC is already on the way to Level 3 (= defined)

• In summary, this is a good Resultconsidering that NEC started one year ago from ZERO

NEC’s BPM Maturity

BenchmarkBPM Maturity Assessmentby Dr. Ingo Brüning SVP of IDS Scheer.

Within 1 year, NEC’s BPM Maturity has been improved very fast.

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[2008] Before BPM adoptionBefore

Individually optimized Processes and IT systems


...

Process and System standardization is necessaryin order to align Business & IT.

differ in every company / organization

differ in every organization /application

Process AreaA

B

C

Org. Process Area

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Optimized Process and IT system throughout NEC.

Standardized business process and rule

Sharing Standard IT System

20% indirect cost cut ,20% IT cost reduction.project payback period is estimated within 2 years.

[2010] After BPM adoptionAfter


...

Process AreaA

B

C

Org. Process Area

Cloud Centric Service

Consolidated DB

SAP ERP

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Go-To-Market SolutionNEC supports the life cycle management (LCM)

from business processes reform to system operationby the “NEC Cloud Centric Service"

system customize / operation Service

SaaS

Joint Center

Private CloudSystemOperation

Life cycleLife cyclemanagementmanagement

(LCM)(LCM)

SystemCustomize

Business Processes

Reform

Business Processes

ReformService

Business ModelConsulting

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Success Factor for Business Process Management

Our passion for innovation

Thank You!

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