Agility Matrix Explained
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The document discusses when a company should use business process management (BPM) tools. It introduces the "Agility Matrix" which plots business processes based on how unique and how stable they are. The matrix is used to determine whether a process should be standardized with packaged software, customized with BPM tools, or left as internal code. Overall the document argues that BPM tools are best for automating agile processes that require continuous improvement and leverage existing assets while supporting differentiation.
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Agility Matrix Explained
- 1. The Agility Matrix Explained Clayton Costa Enterprise Solutions Executive
- 2. Background… When I started to work with the BPM set of tools, I first tried to understand WHY ANYONE would EVER invest on such tools The following slides are my best understanding about this particular subject.
- 3. From the basis To start, let’s assume one simple axiom: “ Every single company is made of business processes.” And some contextual information: All the – established – companies already have some sort of business process automation solution in place (e.g.: Packaged Applications like ERP, CRM) Many companies have started “Business Process Initiatives”, like Six-Sigma, Kaisen, Toyota-System etc. Regulations in general are “process-aware” by nature (SOX, ISO9000 etc.)
- 4. BPM toolsets Some “common sense” about BPM “ BPM is about agility” BPMS’s are tools to implement “continuous improvement” “ BPM software is able to implement an ‘independent process layer’, out of code” And so on… (lots of “common sense” around the IT world!) So, BPM might be just YARADT (“yet another rapid application development tool”, like 4GL, CASE, Code Generators, OOP etc.)
- 5. What’s really BPM About? AT FIRST, A MANAGEMENT DISCIPLINE ! A SET of TECHNOLOGIES to support the MANAGEMENT & AUTOMATION of such initiative makes a lot of sense! That focus on CONTINUOUS IMPROVEMENT
- 6. But… WHEN should I use these tools??? I believe that the answer to this question lies on the way the process portfolio of one specific company is distributed across two dimensions…
- 7. The Agility Matrix Level of uniqueness of a business process Specific Standard Stable Volatile Life Cycle of the business process
- 8. Level of uniqueness of a business process Specific Standard Stable Volatile Tax Management Accounting & Financials Mgt. Strategy Development Knowledge & IT Mgt. Sales & Marketing Mgt. Manufacturing & Services Delivery Customer Services Mgt. Examples of processes from the APQC Reference Model HR Development Services & Products Development Environment Impact Mgt.
- 9. Specific Standard Stable Volatile Tax Management Accounting & Financials Mgt. Strategy Development Knowledge & IT Mgt. Sales & Marketing Mgt. Manufacturing & Services Delivery Customer Services Mgt. Examples of processes from the APQC Reference Model HR Development Services & Products Development Environment Impact Mgt. More CRITICAL TO THE BUSINESS
- 10. The Matrix is UNIQUE Manufacturing? Professional Services? … there might be some patterns per industry… While the full process portfolio must be very unique…
- 11. The Make-Or-Buy decision when automating… Hum… Standard and never changes? Someone must have a ready solution to this! I want a Packaged App (ERP)!!! Level of uniqueness of a business process Specific Standard Stable Volatile Tax Management Accounting & Financials Mgt. Strategy Development Knowledge & IT Mgt. Sales & Marketing Mgt. Manufacturing & Services Delivery Customer Services Mgt. Examples of processes from the APQC Reference Model HR Development Services & Products Development Environment Impact Mgt. Life Cycle of the business process
- 12. Hum… Always changing, but for everybody at the same time? I want to buy a service to keep this up-to-date! Level of uniqueness of a business process Specific Standard Stable Volatile Tax Management Accounting & Financials Mgt. Strategy Development Knowledge & IT Mgt. Sales & Marketing Mgt. Manufacturing & Services Delivery Customer Services Mgt. Examples of processes from the APQC Reference Model HR Development Services & Products Development Environment Impact Mgt. Life Cycle of the business process
- 13. Ops… It’s a process that just relates to my company? Let’s do some code, once it’s not going to change very often… Level of uniqueness of a business process Specific Standard Stable Volatile Tax Management Accounting & Financials Mgt. Strategy Development Knowledge & IT Mgt. Sales & Marketing Mgt. Manufacturing & Services Delivery Customer Services Mgt. Examples of processes from the APQC Reference Model HR Development Services & Products Development Environment Impact Mgt. Life Cycle of the business process
- 14. Now what? Pieces of these – very important – processes are already automated by packaged apps, but I often need to adapt them to the market req’s. Is that what BPM is about? Level of uniqueness of a business process Specific Standard Stable Volatile Tax Management Accounting & Financials Mgt. Strategy Development Knowledge & IT Mgt. Sales & Marketing Mgt. Manufacturing & Services Delivery Customer Services Mgt. Examples of processes from the APQC Reference Model HR Development Services & Products Development Environment Impact Mgt. Life Cycle of the business process
- 15. Make-or-Buy? What about a new packaged app? Packaged apps are made around the concept of “liquidity of functionalities” – that can’t support differentiation Partial automation can decrease the overall productivity Then… ?
- 16. A tool to automate “agile processes” needs to… Leverage all the current assets “ Orchestration” / “Process Integration” Be compatible with the life cycle of the agile processes Make it possible to create a continuous improvement cycle !
- 17. A Collection of Enabling Technologies New architectural elements of a more modern – and flexible - business process automation infrastructure Driven by these requirements, many solutions arose…
- 18. The trick… Now, the trick lies in choosing the right elements – and defining the best architecture to your specific requirements! If you don’t do so, the risk is that you’re going to buy just “YARADT”…
- 19. BTW, Better Business Processes usually means… Smaller cycle-times Hand-over automation “ Ready-to –Work” task delivery Resource usage optimization Case prioritization; Task assignment by profile (skill, experience etc.) Decreased latency (BE) Decreased Time-to-Market Lower time-to-solution Independent Process Layer Business Rules Process Re-Utilization Increased capacity Resource Usage Optimization Process Visibility (Audit Tracks & BAM) SLA Enforcement & Management Compliance Enforcement & Management Costs Revenues Customer Services Profitability!