Process-led Transformation a case study. Software AG Innovation Tour

Transcription

1 Process-led Transformation a case study Software AG Innovation Tour

2 Agenda Client overview Process-led transformation approach Challenges and benefits Questions

3 Client overview

4 Process is one of the key pillars to enable business transformation Business Transformation People Process Information Technology Speaker Notes: Change, and transformation is hard - it takes time, effort and commitment with numerous examples of transformation projects being delayed, over budget or completely stopped. A lot of transformations are led by strategy or technology enabled. We want to present how focus a process led approach to transformation can help organisations achieve the desired outcomes and better deal with the change. 4

5 Our Client One of Australia s leading energy distributors Embarked on a journey to transformation across a number of core functions in Assets, Networks, Finance, IT Power of Choice regulations set by the regulator changed how meters were managed Responsible for building, operating and maintaining one of Australia s largest electricity networks New systems, processes and roles were required to adopt new ways of working 5

6 Situation Changes of regulatory requirements with Power of Choice set out a number of ways that consumers can exercise demand-side participation in the electricity market which in turn puts additional strain on utilities to reshape the way they operate and address customer s needs. The business wanted to implement an ERP system to replace a multitude of disparate systems Challenge Low business process analyst capability across the organisation to prepare appropriately for the ERP implementation Technical changes required to comply with Power of Choice People impacts in the organisation to be identified Understanding the end-to-end process impacts required 6

7 Business Process Management Centre of Excellence Process Design Approach Resolution: Process-led Transformation Business processes that are requested to change Process Repository Tool Action plan and Change Management activities 7

8 Speaker Notes: What is Power of Choice? New industry regulation enacted by Australian Energy Market Operator (AEMO) from the 1 st of December 2017, to implement metering contestability in the National Electricity Market. Until now, meters were owned, operated and maintained by Distributors New: Meters owned, operated by Retailers. All new meters must be smart digital interval meters Provide customers with more transparency around their energy use Increased competition Increased data protection Knowing how much power your household uses Knowing the best time of the day to use energy Opening metering services Speaker Notes: Minimum services for meters What does that mean for Distributors and Meter Reading Companies: Distributors and Meter Reading Companies need to Benefits for consumers Align their IT operating model to handle the influx of data, analyse and utilise it Map and manage their processes to operate under the new Australian Energy Rules (AER). Update their data and cyber security systems Having the option to shop around for a better deal, or have the option to pay your bills more often Clients typically tend to think abut technology first but a new operating model touches all elements of people, process and technology A process based approach links people and technology to ensure systems are fit for the business and the change in the organisation is managed. 8 Power of Choice Knowing the costs of technologies like battery storage

9 Process approach

10 High level approach Scenario documentation Plan, develop and deliver Decisions made and processes signed off Scenario implementation Change management Technology change Policies and procedures Readiness End to end scenario testing Speaker Notes: Elements within the Power of Choice scope allowed a first analysis at a high level. These were viewed as scenarios We worked with a 3 step approach: 1. planning and documenting those scenarios / customer journeys, getting business engaged early and throughout the documentation and discovery process. Stakeholders are made aware of any decision points up front 2. implementing technology changes, changing policies and procedures accordingly and rolling out change management. 3. And finally testing readiness and measuring the change. Change management and collaboration across the business was important to implement 10 The business used to work in silos and the workshop based approach with getting everyone involved upfront to discuss and document as-is and to-be processes supported a cross-functional understanding and collaboration.

11 High level approach Plan Key stakeholders Assess level of change Document strawman level 3 processes Kick-off meeting Develop Business decisions Document level 4 future state processes in ARIS Confirm process ownership Identify key changes in people, process, technology, data and policies and procedures Validate Validate and agree changes Business endorsement Execute implementation plan 11

12 Challenges and benefits

13 Benefits from a process driven approach Establishing process buy-in and ownership Setting up governance process Agreement on the reference model Benefits Challenges 13

14 Benefits from a process driven approach Challenges Enhanced visibility Aligned organisational change management Clearer requirements Benefits Improved understanding Speaker Notes: Once the hurdles are overcome, there are significant benefits: There is enhanced visibility all stakeholders in the process are aware of the changes in everyday processes, as well as how technology or organisational changes support that. Clearer requirements business teams are more engaged, and with ownership they are in a better position to elicit more defined requirements, and communicate specific and tailored needs when the technology is being configured. Having greater transparency in processes also allows more effective change management as specific changes aligned 14 to each process and process step are better understood and this in turn improves collaboration between business teams, service providers and other interested parties.

15 A Process-led Transformation enables businesses to implement changes in a structured, transparent, visual and documented way that is independent of a single project and changes the culture 15

16 Questions