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Business Transformation
WebinarMarch 10, 2011
Agenda• Seneca Foods Overview
• Seneca Foods IT Strategy
• Business Transformation Defined
• Business Transformation in Action
• Questions & Answers
Seneca Foods Overview• About Seneca Foods Corporation
Seneca Foods is one of the country’s largest processors of canned fruits and vegetables with manufacturing facilities located throughout the United States. Its products are sold under the Libby’s, Aunt Nellie’s Farm Kitchen, Stokely’s, READ, and Seneca labels as well as through the private label and industrial markets. In addition, Seneca produces canned and frozen vegetables, which are sold by General Mills Operations, LLC under the Green Giant label.
• Mission
“We feed the world safe and nutritious products
that are valued and enjoyed by families everywhere.”
• Vision
“We will continue to grow as a leader in the fruit and vegetable industry by remaining deeply rooted in our fundamental beliefs and through a shared commitment to those we serve.”
Mission
• Serve the Business– Reliable delivery of information technology services – Responsiveness to the needs of the business
• Protect the Business
– Secure our borders and data assets– Meet compliance needs
• Bring Strategic Value to the Business – Alignment to the business strategy and objectives– Predictable project delivery
Vision IT is the business
Business transformation enablement
Value-based business technology
Business / IT strategy aligned, done together
Optimized human capital
As part of the business, Information Technology is a service provider, providing value-based technologies and services that are fully aligned to support the operational needs and strategic objectives of the business.
Governance & Portfolio ManagementMaximize return on IT investment
Management &
Infrastructure
Strategic
Support & Maintenance
Transition State Desired State
Increase in strategic investments
Decrease in transactional maintenance
50%
45 - 50%
<5%
45-50%
20-25%
20-25%
Maximize ability to meet strategic needs and leverage platform.
Achieving Balance: Supporting Today’s Needs and Tomorrow’s Growth
Implementation Time Line
Incre
ase in
Cap
ab
ilit
ies
FY08 FY09 / FY10 FY11/12
Program Initiation
Scope• HR / Payroll• Financials • Cost
Management• Procurement• Order to Cash• Business
Warehouse• IT Infrastructure
Support• Break / Fix• Training• Governance• Process Models• Change
Management• Performance• Reporting• Master Data
• Stabilize Foundation
• Organizational Learning
Growth• Strategic
Alignment• Optimization• Priority Gaps• Analytics• Testing
Improvements• Upgrades• Company growthPreparation
• Building on Foundation
• Application Roadmap
Where We Are Going
Where We Are
Architectural Priorities• Business Process
– Just as important as technology– Strive for excellence, efficiencies– Process models documentation, learning
• Application– Support & Maintenance– Organizational Learning– Change Management, Governance– Strategic alignment / roadmap
Seneca Architecture
Business Process
Applications
Data & Information
Technology
• Data & Information• Master Data Management• Reporting, Analytics,
Measurement
• Technology• Business more reliant on
technology• Reliability, availability,
serviceability• Integration, performance,
optimization
• Process is Just As Important As Technology– High Impact Process Improvements– Long Term Competitive Advantage Opportunity– Scale Process to Accommodate Growth & Business Case Realization / Benefits
• Enables Risk Management / Business Continuity
• Align Business Processes to Application– Maximizes investment in SAP– Reduce time, effort, cost in defining, implementing, monitoring processes– Assists with software configuration of processes and automating sub-processes.– Greatly assists with changes, enhancements, projects.– Modeling process and requirements instead of programming.– Assists with Training, Operating Procedures
Strategic ObjectiveSupport SAP Platform, Business Growth and Profitability
By Implementing Business Process Management
• Tactical process efforts to enable strategic opportunities– Deliver value while building towards the strategic
• Journey Over Time – Using SDLC - Day-Day Project Work Processes
– Targeted Value Based Efforts – Critical Areas• Deductions, Brokerage
– Roadmap for BPM activities• What processes do we want to better understand, improve and invest in?
– Food Safety/Trace Recall, Planning, Brokerage, Deductions, Master Data• Application Portfolio Roadmap Alignment
– Enablement through Competency Center• ARIS Repository for all process initiatives• Management understanding of BPM• ARIS Express – no cost Visio
“Stractical” BPM
Confiance Transformation Framework (CTF)The Confiance Transformation Framework (CTF) is a comprehensive, structured approach to deliver business transformation. The Framework consists of four separate components: Design, Adoption, Governance and Realization, each with defined methodologies.
Together they form an iterative transformation roadmap to give an organization a prescribed approach for successful business transformation.
Adoption
DesignRealization
Governance
Transformation RoadmapProcess & Technology Discovery
Process Maturity
Process TrainingProcess Governance
Process Leadership Development
Transformation CoE
Process Ownership
Process Communication
Process Monitoring
Process Execution
Process Analysis
Process Technology
Process Measurement
Process Design
Process Strategy
Process Roadmap
Industry Frameworks
EA Strategy
EA Framework
Technology Standards
EA MaturityEA Training
EA Leadership Development
EA Communication
Technology Roadmap
Technology Governance
Technology Ownership
Portfolio Management
Application & Technology Rationalization
Capability Analysis
Master Data Management
Data Governance
Technology Principles
EA Metrics
EA Monitoring
Seneca Foods Transformation by Dimension• Design
– Use Automated Process Discovery (<30 days) to baseline enterprise process model
– Identification of process improvement opportunities – Identification of technical optimization– Integrated Business & IT view through reference models like SCOR,
SAP etc.• Adoption
– Implementation of BPM technology– Training, Mentorship & Elearning to drive organization enablement
• Realization– Structured approach to solve business problems through processes– Recommendations for technology optimization
• Governance– Process model governance
Phased Approach
Process Discovery
Process Profiling – Redocumentation
of SAP
ARIS Solution Manager
Integration
Build Repository
Create ARIS repository
Rationalize baseline processes
Create process architecture
Enable Process Harmonization
Establish framework for
process-based SAP
Use repository for stakeholder review & communication
Enablement & Adoption
Phase 1 Baseline Process Design
Results are categorized into • Business Process Findings
– Business Process Model– Process Oriented Configuration – SAP Solution
Manager– Identification/Validation of Process Improvement
Opportunities
• Usage Analysis– Organizational Structure & Organization Analysis– Transactional Analysis Use, User & User Group– Document Analysis– Technical Analysis– Authorization Analysis
Baseline Process Design
Process Profiling – Redocumentation of
SAP
ARIS Solution Manager Integration
Business Process Models discovered
Processes Level 1
Processes Level 2E2E View
Processes Level 3
Active (Tcode on top, frequency below)
SAP Usage• Transactions / Usage
The system is close to standard with 87%
59% of the reports not used during test period
Potential reduction of unused reports especially in consideration of a release change
• Reports
Baseline of transactions usage by module, type of technical processing, and by month.
Functionality AnalysisModule Description
BC Basis
CA Cross ApplicationComponents
FI Financial Accounting
MM Materials Management
CO Controlling
SD Sales and Distribution
LO Logistics
PP Production Planning and Control
PY Payroll
LE Logistics Execution
PA Personnel Administration
EC Enterprise Controlling
NO No Module allocation by SAP
BW Business Warehouse
PT Personnel Time Management
FIN Financials
SV Service
Standard functionality could likely be extended
ConditionProcessing
Customer inquiry/
quotationContracts Customer
order Billing
Industry typical functions No customer inquiry, no customer quotation High numbers of Contracts
Excellent: very few billing cancellations
Order to Cash Overview
Phase 2 Build Repository
• Rationalize Process Profiling content and generate baseline process documentation
• Create Process repository and structure within ARIS to house process content, utilize reference frameworks
• Connect existing high-level process content with defined Solution Manager and ARIS models to create multi-level process architecture, supplement as needed
Build Repository
Create ARIS repository
Rationalize baseline processes
Create process architecture
ARIS Enterprise Repository
ProcessesData Applications ProductsOrganizationStrategy Risk & Controls
Optional / targeted tocomplete detailed
processes
Deliver Products and Services
DeliverMakeSourcePlan Return
Level 1
Level 2
Level 3
Level 4
Deliver
EnableDeliver
DeliverEngineer-to-Order
Products
DeliverMake-to-Order
Product
DeliverStockedProducts
DeliverRetail
Product
GenerateStockingSchedule
ReceiveProduct atthe Store
Pick Productfrom
Backroom
StockShelf
FillShopping
CartCheckout
Deliver and/orInstall
Event
Function
Event
activates
Process interface
creates
Process interface
activates
XOR rule
Event
leads to leads to
AND rule
Event Event
leads to leads to
SAP function
Event
Function
Event
activates
Process interface
creates
Process interface
activates
XOR rule
Event
leads to leads to
AND rule
Event Event
leads to leads to
SAP function
Event
Function
Event
activates
Process interface
creates
Process interface
activates
XOR rule
Event
leads to leads to
AND rule
Event Event
leads to leads to
SAP function
BillingContracts Order Processing
CustomerInquiry
Account Processingin ERP
Billing in ERPContract Processing
in ERP
Contract ReleaseOrder Processing in
ERP
Credit MemoProcessing in ERP
Debit MemoProcessing in ERP
Entering Services inERP
Free-of-ChargeDelivery Processing
in ERP
In-House RepairProcessing in ERP
Inquiry Processingfor Internal Users inERP E-Commerce
Invoice CorrectionProcessing in ERP
Customer Returnsin ERP - Basic
Processing
Standard SalesOrder Processing in
ERP
MIGO_GI (GoodsMovement)
MB1A (GoodsWithdrawal)
Enter goods issuefor scrapping(optional)
SCOR, APQC, ITIL, Confiance CPG Best PracticesSupplement
Build
SAP Defined
Seneca Repository Meta-Model
Enterprise Process Model (EPM)
Core Processes
Managing Processes
Enabling Processes
Deliver Products andServices
Manage FinancialResources
Manage CustomerService
Manage Knowledge,Improvement, and
Change
Manage ExternalRelationships
Acquire, Construct,and Manage Property
Manage InformationTechnology
Develop and ManageProducts and
Services
Market and SellProducts and
Services
Develop Vision andStrategy
Develop and ManageHuman Capital
ManageEnvironmental Health
and Safety (EHS)
Type: Value-added chain diagram
Last change: Aug 17, 2010 3:05:55 PM
Name: Enterprise Process Model
Creator: system
Process View – ARIS
Technical View – SAP (Solution Manager)
Open sharedfolder and search
for back-updocumentation
Back-updocumentation
found on...Back-up
documentationnot found on...
Print back-up
Enter reason codein SAP anddescription
Description is required formultiple codes, SAP only uses
a single code
Send paper copyto support
90% don't have back-updocumentation
Review CSL and/or Wesley for
back-updocumentation
Type: EPC
Last change: Sep 29, 2010 10:07:58 PM
Name: Resolve unsalable deduction
Creator: system
CLS
Wesley
Back-updocumentation
found on...
Back-updocumentationnot found on...
Review customercontact
requirements
Customercontact required
Sales Personcontact required
Broker brokercontact required
Email check andcover sheet to
customer
Email check andcover sheet tosales person
Send back-up tospecialist
Invalid deductionprocessing
Update, route, &determine
deduction type
Unsalablededuction type
determined
Deductions Specialist
Deductions Specialist
Deductions Specialist Deductions Specialist
Back-up documentation request
Deductions Specialist
Back-up documentation request
Sales person canprovide back-up
Sales personrequires
customer to...
Provide back-upto specialist
Sales Person Broker
Back-up sent tospecialist
BrokerSales Person
Back-up documentation request Back-up documentation request
Customer
Customer Customer
BrokerDetermine ifback-up isavailable
Broker canprovide back-up
Broker requirescustomer to
provide backup
Email check andcover sheet to
broker
Determine ifback-up isavailable
Contactcustomer
Update deductionas invalid and
document
Customer isable to provide
back-up...
Back-Updocumentation
Deductions Specialist
Back-up documentation request
Based on specialists'knowledge of their customers
Sales Person
Provide back-upto specialist
Back-up sent tospecialist
Contactcustomer
Sales Personcontactscustomer
Specialistcontactscustomer
Broker contactscustomer
Review back-uprequest
Determine ifback-up isavailable
Customer
Customer isunable to
provide back-...
Back-updocumentation
sent by...
Notify specialistthat back-up isnot available
Deductionupdated as
invalid
Deductions Specialist
Deductions Specialist
SAPDeductions
Module
SAPDeductions
Module
Deductions Specialist
Deductions Specialist
Deductionforwarded to
support
Close outdeduction
UDM_DISPUTE(Dispute
Management)
Fully Integrated – SAP to Process
UDM_DISPUTE(Dispute
Management)
UDM_CUSTOMIZING (DisputeManagementCustomizing)
FI-CA: ManagingDisputes (DisputeManagement)
Print back-up
Enter reason codein SAP anddescription
Send paper copyto support
Deductions Specialist
SAPDeductions
Module
Deductions Specialist
Deductions Specialist
UDM_DISPUTE(Dispute
Management)
• Redocumentation of SAP synchronized into ARIS provides inventory of transactions being used mapped to SAP standard processes
• In ARIS, processes are captured and reuse SAP “building blocks” to create end-to-end process that includes SAP and manual activities
• ARIS and SAP are integrated to maintain a combined view and traceability from our processes to implementation and vice versa
Linkage
Phase 3 Enable Process Harmonization
• Create a published process repository for on-going collaboration and knowledge-sharing
• Create framework to incorporate process definition as part of SDLC
• Complete E2E review for Deductions Process
Enable Process Harmonization
Establish framework for process-based SAP
Use repository for stakeholder review &
communication
Deductions ProcessType: Value-added chain diagram
Last change: Sep 23, 2010 8:49:27 AM
Name: Deductions Process
Creator: system
Enter deductions in SAPUpdate, route, & determine
deduction type
Resolve slotting deduction
Resolve Pricing Deduction
Resolve damagesdeduction
Resolve inventory shortagededuction
Resolve bill back deduction
Resolve unsalablededuction
Resolve audit deduction
Resolve miscellaneousdeduction
Close out deduction
Supporting Processes
Vouchering customerpayments
Invalid deductionprocessing
Resolve accruals deduction
Main Process
Create DeductionsReporting
Incorrect MarketingPerformance Fund Process
Deductions Process Detail Example
Open sharedfolder and search
for back-updocumentation
Back-updocumentation
found on...Back-up
documentationnot found on...
Print back-up
Enter reasoncode in SAP and
description
Description is required formultiple codes, SAP only uses
a single code
Send paper copyto support
90% don't have back-updocumentation
Review CSL and/or Wesley for
back-updocumentation
Type: EPCLast change: Sep 9, 2010 2:33:26 PM
Name: Resolve unsalable deduction
Creator: system
CLS
Wesley
Back-updocumentation
found on...
Back-updocumentationnot found on...
Review customercontact
requirements
Customercontact required
Sales Personcontact required
Broker brokercontact required
Email check andcover sheet to
customer
Email check andcover sheet tosales person
Send back-up tospecialist
Invalid deductionprocessing
Update, route, &determine
deduction type
Unsalablededuction type
determined
Deductions Specialist
Deductions Specialist
Deductions Specialist Deductions Specialist
Back-up documentation request
Deductions Specialist
Back-up documentation request
Sales person canprovide back-up
Sales personrequires
customer to...
Provide back-upto specialist
Sales Person Broker
Back-up sent tospecialist
BrokerSales Person
Back-up documentation request Back-up documentation request
Customer
Customer Customer
BrokerDetermine ifback-up isavailable
Broker canprovide back-up
Broker requirescustomer to
provide backup
Email check andcover sheet to
broker
Determine ifback-up isavailable
Contactcustomer
Update deductionas invalid and
document
Customer isable to provide
back-up...
Back-Updocumentation
Deductions Specialist
Back-up documentation request
Based on specialists'knowledge of their customers
Sales Person
Provide back-upto specialist
Back-up sent tospecialist
Contactcustomer
Sales Personcontactscustomer
Specialistcontactscustomer
Broker contactscustomer
Review back-uprequest
Determine ifback-up isavailable
Customer
Customer isunable to
provide back-...
Back-updocumentation
sent by...
Notify specialistthat back-up isnot available
Deductionupdated as
invalid
Deductions Specialist
Deductions Specialist
SAPDeductions
Module
SAPDeductions
ModuleDeductions Specialist
Deductions Specialist
Deductionforwarded to
support
Close outdeduction
Resolve unsalablededuction
• High-level processes were decomposed to show workflow sequencing including:• Events (triggers)• Logic• Activities• Roles• Systems• Inputs / Outputs
Enablement & Adoption
• Process Architecture Enablement– Train process analysts to manage and maintain process
repository through a combination of classroom, mentoring, and e-Learning education
• Business Owner Enablement– Train business users to review and interpret processes within
the repository through demonstrations and e-Learning curriculum
– Management training and communication planning
Enablement & Adoption
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