Business Process Oriented Implementation of Standard Software. How to Achieve Competitive Advantage Quickly and Efficiently

Transcription

1 Business Process Oriented Implementation of Standard Software How to Achieve Competitive Advantage Quickly and Efficiently

2 Springer Berlin Heidelberg New York Barcelona Budapest Hong Kong London Milan Paris Santa Clara Singapore Tokyo

3 Mathias Kirchmer Business Process Oriented Implementation of Standard Software How to Achieve Competitive Advantage Quickly and Efficiently With 107 Figures, Springer

4 Dr. Mathias Kirchmer President & CEO IDS Scheer, Inc. Chadds Ford Business Campus Brandywine 2 Bldg., Suite 307 Chadds Ford, PA USA "Originally published in German with the title: Mathias Kirchmer, "GeschaftsprozeBorientierte Einfiihrung von Standardsoftware. Vorgehen zur Realisierung strategischer Ziele" Betriebswirtschaftlicher Verlag Dr. Th. Gabler GmbH, Wiesbaden 1996" ISBN-13: e-isbn-13: DOl: / Cataloging-in-Publication Data applied for Die Deutsche Bibliothek - CIP-Einheitsaufnahme Kirchmer, Mathias: Business process oriented implementation of standard software: how to achieve competitive advantage quickly and efficiently? 1 Mathias Kirchmer. - Berlin; Heidelberg; New York; Barcelona; Budapest; Hong Kong; London; Milan; Paris; Santa Clara; Singapore; Tokyo: Springer, 1998 Einheitssacht.: GeschaftsprozeBorientierte Einfiihrung von Standort software <eng!.> ISBN-13: This work is subject to copyright. All rights are reserved, whether the whole or part of the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfilm or in any other way, and storage in data banks. Duplication of this publication or parts thereof is permitted only under the provisions of the German Copyright Law of September 9, 1965, in its current version, and permission for use must always be obtained from Springer-Verlag. Violations are liable for prosecution under the German Copyright Law. Springer-Verlag Berlin. Heidelberg 1998 Softcover reprint of the hardcover 1st edition 1998 The use of general descriptive names, registered names, trademarks, etc. in this publication does not imply, even in the absence of a specific statement, that such names are exempt from the relevant protective laws and regulations and therefore free for general use. Hardcover-Design: Erich Kirchner, Heidelberg SPIN / Printed on acid-free paper

5 Preface Facing increasingly tough competition, enterprises must address the business issues at hand with lean, flexible and nimble structures. A key solution is business process oriented engineering of organizational structures. Business processes are generally supported by information technology - and deploying standard software is increasingly the method of choice. Today, the implementation of standard software is a key element of information system planning and execution, enabling enterprises to reach their corporate goals by systematically supporting business processes. The procedure shown in this real-world oriented work illustrates how enterprises are capable of reaching strategic goals by business process oriented implementation of standard software. The methods and tools commonly used to successfully implement standard software are discussed - yet always keeping in step with the respective applications. The procedure described here has been proven time and time again. Here it is also illustrated by practical examples of implementation projects in various vertical markets. This work demonstrates how scientifically sound solutions are the cornerstone for efficiently and effectively addressing business administration issues. August-Wilhelm Scheer

6 Foreword The deployment of standard software is becoming an increasingly important factor in business process optimization. At the same time, standard software implementation is shifting its focus from purely technical tasks to business administration issues. Installation of software systems has evolved to strategy driven engineering of business processes. This book discusses a procedure, proven time and again in the real world, for business process oriented implementation of standard software to achieve competitive advantage. It demonstrates how strategic goals can be reached by implementing software. We have made a point to emphasize efficiency in the implementation process, enabling enterprises to react to changing business environments -- quickly and cost-effectively. Essential implementation activities are covered in their chronological sequence and explained by means of examples, especially in SAP Rl3 software implementations. I authored this book while a project manager and director at IDS Prof. Scheer GmbH and President and CEO at IDS Scheer, Inc.. I would like to thank Prof. Dr. August-Wilhelm Scheer for his personal and scientific support. His advice and his encouragement have been of greatest value I also wish to thank Prof. Dr. Karlheinz KUting for his co-sponsorship. Special thanks also go to Dr. Alexander Pocsay, President and CEO of IDS Prof. Scheer GmbH" who gave me the opportunity to combine this work with my professional work at IDS. I am endebted to Kaeser Kompressoren GmbH for the extraordinary cooperation in their world-wide implementation of SAP Rl3, providing real-world results with which to verify the theoretical procedures: special credit is due Mssrs. Thomas Kaeser and Falko Lameter. I also wish to express gratitude to my co-workers at IDS Prof. Scheer GmbH for always being available for discussions and for their moral support. Special acknowledgments go to Christian Aichele, Katja BoBlet, Dr. Reinhard Brombacher, Thomas Joachim, Claudia Klingshirn, Dieter Leinen, Katharina Rock, and Andreas Waldow. The excellent illustrations were prepared by Mr. Matthias BUttner and Mr. Johannes Schymura. Ms. Sabine Hofmann and Ms. Rita Landry-Schimmelpfennig deserve special recognition for their stylistic corrections.

7 VIII Foreword Special thanks to all my co-workers at IDS Scheer, Inc. for their support while preparing this English edition. I would like to mention especially Carmen Kaechler for her great support as well as John Prendergast and David Shaw. I also wish to thank Mr. Christian C. Tiews of The Localizer for the meticulous translation of the text into English. Finally, I am especially grateful and appreciative for the understanding and motivation of my parents, who helped to make this work a success. Mathias Kirchmer

8 Table of Contents 1 Business Process Oriented Organizational Structures and Function Oriented Standard Software - Implications for the Implementation Business Process Oriented Design of Organizational Structures Characterizing and Derming the Term "Organizational Structure" Business Process Orientation in the Development of Organizational Structures Characteristics of Business Process Oriented Organizational Structures Function Oriented Design of Standard Software Characterizing and Defining the Term "Standard Software" Function Orientation in the Development of Standard Software Characteristics of Today's Standard Software Implications for the Implementation of Standard Software Characterizing and Derming the Term "Implementation of Standard Software" Implications of the Conflicting Design Types of Organizational Structures and Standard Software Strategic Significance of the Implementation Objective and Structure of this Work 33 2 Development of a Procedure Model for Business Process Oriented Implementation of Standard Software Requirements for Implementing Standard Software Executing Business Process Orientation Enabling Integration 42

9 X Table of Contents Specifically Decentralizing Work Processes Taking Dynamic Aspects into Account 44 2.l.5 Specifically Involving Employees in the Implementation Process Existing Approaches for Implementing Standard Software Strategic Approach of Information System Planning Tactical/Operational Approach for Information System Planning Standard Software Oriented Approach towards Information System Planning Evaluating the Various Approaches Developing a Procedure Model for Business Process Oriented Implementation Using the ARIS Architecture as a Framework for Procedures Positioning the Implementation of Standard Software within the ARIS Architecture Deducting the Procedure Model 71 3 Strategy Based BPO Concept Defining the Target System 76 3.l.l Goal Procedure Supporting Methods and IT Tools Defining Business Processes Goal Procedure Supporting Methods and IT Tools Detailing Individual Information System Views Goal Procedure Supporting Methods and IT Tools Splitting Up Business Processes Goal Procedure Supporting Methods and IT Tools 110

10 Table of Contents XI 3.5 Defining the Scope of the Standard Software Deployment Goal Procedure Supporting Methods and IT Tools Determining the Implementation Strategy Goal Procedure Supporting Methods and IT Tools Standard Software Based BPO Concept Defining Consistent Business Terminology Goal Procedure Supporting Methods and IT Tools Material Flow Related Supplement of the BPO Concept Goal Procedure Supporting Methods and IT Tools Detailing the BPO Concept on the Transactional Level Goal Procedure Supporting Methods and IT Tools Detailing the BPO Concept on the Screen Level Goal Procedure Supporting Methods and IT Tools Defining a Migration Plan Goal Procedure Supporting Methods and IT Tools BPO Implementation Prime and Execute IT Measures Goal Procedure 172

11 XII Table of Contents Supporting Methods and IT Tools Prime and Execute Organizational Measures Goal Procedure Supporting Methods and IT Tools Live Start of the Standard Software Goal Procedure Supporting Methods and IT Tools Optimizing Business Processes in the Live Phase Goal Procedure Supporting Methods and IT Tools Comprehensive Model of Business Process Oriented Implementation Aggregating the Implementation Process Model Fulfilling the Requirements for the Implementation Outlook 212 References 215 Table of Figures 229 Abbreviations 233