Business Process Management in Manufacturing From Process to Value

8/2/2019 Business Process Management in Manufacturing From Process to Value

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Manufacturing the way we see it

Business Process Managementin Manufacturing: FromProcess to Value

New Capgemini research shows how organizations

can move to the next level of BPM maturity

the way we see it


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As manuacturing companies emergerom the economic slowdown,they are looking or topline growthopportunities while still maintainingcontrol over costs. But years oglobalization and expansion someorganic, but much o it throughmergers and acquisitions have

resulted in complexity in the valuechain, redundancy in systems andprocesses, and a lack o transparencyand exibility in processes. Improvingperormance can be a challenge in thisenvironment.

Business Process Management (BPM)is a powerul approach to deal withthese issues. BPM aims to improve andoptimize the business processes o anorganization, supported by BusinessProcess Management Technology(BPMT). BPM can help companiesaddress global competitive challengesand economic pressures, enablingthem to reduce costs and improvethe value they create as well as theirspeed-to-market.

Though manuacturing organizationshave been putting BPM initiatives inplace or some time, only now hasthe underlying technology reacheda threshold point where it can truly

deliver new potential by improvingcost efciency, speed-to-market andacceleration o innovation.

Taking a Close-Up Look at BPM

in Manuacturing

To better understand the currentstate o BPM in the manuacturingindustry, as well as the beneftsand implementation opportunities,Capgemini conducted researchlooking at the BPM practices o

leading manuacturing companies.Among the key fndings:

Manuacturing companies areinvesting in BPM(T) to urtheroptimize their complex businessprocesses, as well as to manageprocesses that are not yetautomated.

The application areas or BPM inmanuacturing are centered aroundInnovation & Liecycle Management

(ILM; shorter time to market),Customer Relationship Management(CRM; leveraging multi-channelclient interaction) and Supply ChainManagement (SCM; managingvolatility in the supply chain). Inaddition, support unctions likeadministration and inance can bemade more eicient and compliant.

Three types o BPM implementationlevels are observed within themanuacturing sector: individual

process transormation, agilitylayers on top o legacy applicationsand end-to-end transormation.

BPM(T) implementation at mosto the companies studied is at anascent stage and predominantlydeployed at a process level asopposed to an enterprise-widetransormation.

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BPM can help

manuacturing companiesaddress global competitivechallenges and economicpressures, enabling themto reduce costs andimprove the value they

create as well as theirspeed-to-market.


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the way we see it

Identiying the Benefts o BPM

The research identifed a numbero benefts achieved rom theimplementation o BPM among themanuacturing companies studied:

A global diversiied technology andindustrial manuacturer automated

its paper-based processes within theprocurement division using BPM toshorten the SCM cycle or approvalsand receipt o goods.

A leading automotive manuacturerdeployed BPM to increase eiciencyand decrease costs with respectto document management in itsmarketing unction.

A global industrial equipmentcompany leveraged worklowautomation and visibility through

BPM or greater operational controlover its sales process.

One o the largest global automotivecompanies resolved complexities inits warranty management processby implementing BPM, therebyimproving quality and costs in itscustomer support services.

A global industrial equipmentmanuacturers machineryconstruction division leveragedBPMs process modeling, risk

management and visibility tools toachieve SOX compliance.

An aerospace and deensemanuacturer overcame the cross-border integration challenge in itsdesign process by implementinga BPM-PLM (Product LiecycleManagement) integration suite.

Through eective implementationo BPM across the value chain, anaerospace and deense companybeneited rom strong governance

and quality control within one o itsdivisions.

BPM Implementation Landscape

in the Manuacturing Sector

Although manuacturing companieshave started to realize early beneftsrom BPM implemented in a landscapethat ranges rom operational processlevels to strategic enterprise level, thecompanies still have a long way to

go to extract the ull potential romBPM transormations. The evolvinglandscape broadly comprises threetypes o process transormationopportunities leveraging BPM inmanuacturing companies:

I. Individual ProcessTransformation: Transormationthat ocus on improving discreetprocesses/unctions withinone or two components o themanuacturing value chain

II. Agility Layer Across LegacyApplications: Transormationsthat ocus on integration o cross-unctional systems like PLM thatconnect several key componentso the value chain

III. End-to-End Transformation:Transormations that ocus oncreating a BPM transormedorganization with integration oall the components o the value

chain

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In the case o engineering design,most o the companies studied areusing BPM to link to external R&Dsources, collaborate on research andtroubleshoot design problems. TheBPM implementations here are beingsupported by technology changes suchas collaborative platorms, social BPMand process orchestration engines

across a Service-Oriented Architecturelandscape.

In the area o marketing campaigns,BPM is being used to orchestratecampaigns, which enables companiesto scale up the marketing operationsand thus create efcient repeatableprocesses. Leveraging cloud-basedtechnology, these campaigns allowmanuacturing companies to connectmore directly with potential customersand multiple partners, resulting in

higher campaign success rates.

Among the companies studied, mosthave implemented Type I projects(unctional level) with ew ocusingon Type II (cross-unctional level) orType III (enterprise level). However,opportunities clearly exist orcompanies to move to Type II BPMimplementations with the potential oradditional benefts and to Type III or

ull benefts.

Type I: Individual Process

Transormation

At the lowest level, companies areadopting BPM in certain processeswithin their core unctions. Thisapproach oers improvements inindividual processes, which canbe across the board. Warrantymanagement, or example, canencompass several areas, includingmarketing campaigns and engineeringdesign. BPM can enable companies tocross these silos more eectively byproviding better visibility, agility and,most notably, governance control otheir processes.

IEPYT

IIEPYT

IIIEPYT

Engineering

Design

Inventory

Control

Management

Marketing

Campaigns

Warranty

Management HR & Finance

BPM-PLM

BPM-CRM

BPM-SCMInnovation&Product

LifecycleManagement

Marketing & Sales

SupplyChain

Management

Customer Support Services Other Support Processes

Sales Order

E2E

BPM

IMPLEMENTATION

BPM-ERP

Note: E2E = End-to-end (enterprise-wide)Source: Capgemini

Three Types of BPM Implementations: Type I, Type II and Type III

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the way we see it

Type II: Agility Layer Across

Legacy Applications

One step up is about having a layer oBPM capabilities across a unctionalarea, such as CRM, SCM or PLM.

Architecturally this acts as an agilitylayer across the existing IT systemlandscape.

With this approach, BPM can extendPLM unctionalities by embeddingexibility, agility and visibility inProduct Liecycle Managementsystems. BPM can also extend SCMbenefts by embedding governanceand real-time monitoring o the entiresupply chain in collaboration with thepartner ecosystem. Additionally, BPMcan enhance CRM through eectiveinteraction o the process owners and

legacy applications across thevalue chain.

Type III: End-to-End

Transormation

At the highest level somemanuacturing companies arelaunching initiatives to reorganizethemselves to become process-ocused organizations. Thesecompanies have determined that

a need exists or best-in-classarchitecture, IT systems and agovernance control mechanism thatspans the entire enterprise covering allstakeholders rom the board down or all o the dierent end-to-endprocesses. They are looking at how toredesign the process model rom thetop down and ftting applications tothat landscape. However, in terms oboth implementing this transormationand supporting it with technology,

these companies still have a long wayto go.



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Research MethodologyCapgeminis BPM in Manufacturing

study involved research into the

evolution and use of BPM within

the manufacturing sector. The

BPM practices of more than 20

leading global manufacturing

companies were mapped againstfunctional areas such as R&D

and engineering, procurement,

production, marketing, sales

and service management to

identify key business drivers

for BPM implementation in the

manufacturing sector. The study

team also mapped the BPM

maturity and assessed the type

of BPM implementation of these

companies.

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3

4

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2

5

End-to-End BPM Governance:

Governance that promotes process

ownership and provides supportingstructures, to create and sustain

BPM excellence.

Value & Performance Management:Defined and measured value of BPM-powered

solutions with Benefits LogicTM and Benefits TrackingTM .

2

Accelerated Business Analysis:Optimized and accelerated BPM delivery with pre-defined,

deep sector solutions and reference models, the global

SEMBATM methodology and certified professionals.3

Leveraging BPM Technology:

Maximized use of selected BPMand Business Rules Management

technology, tools and platforms,smoothly integrated with service-enabled IT system.Built to scale and perform.

4

Unified Process Improvement:Proven collaborative process

improvment approach, focused

on value improvement andembedding process thinking

in the organization.

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From Process to Value: Five Key Areas for BPM Success

Source: Capgemini

Implementing BPM or

Manuacturing: How Capgemini

Can Help

Regardless o the current state oa manuacturing companys BPMimplementations, Capgemini canhelp identiy and implement theright BPM level or an organization.

Our end-to-end Business ProcessManagement approach treats processesas assets that directly contribute toyour business value and perormance.Capgemini draws on 40 years oexperience in advancing our clientsbusiness technology and managementprocesses. We combine deepmanuacturing and BPM knowledgewith a pragmatic attitude to work inpartnership with you. Our processimprovement and transormationexpertise enable us to deliver quickand measurable results.

We ocus on fve key areas to reducecosts and make manuacturingorganizations more innovative andagile. To go rom process to value, allthese areas need to work in harmony.

1. Value and PerformanceManagement to deine goals and

evaluate and steer progress2. Accelerated Business Analysis

to optimize BPM delivery, usingour Global Process Model1 ormanuacturing

3. Leveraging BPM Technology tomaximize the use o selected BPMand Business Rules Managementtechnology, tools and platorms

4. Unified Process Improvementto ensure process-orientedthinking gets embedded across the

organization

5. End-to-End BPM Governance tosustain BPM excellence

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1. Capgeminis Global Process Model is a map that defines the best flow for each process and sub-process, backed by a comprehensive database of defined, world-class controls and measures

representing global and industry best practices.


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the way we see it



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Business Process Management in Manufacturing From Process to Value

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