Utilization of SCOR Model to Align Business Process And Information System to Business Strategy

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Utilization of SCOR Model to Align Business
Process And Information System to Business
Strategy

• April 6, 2005
• Keigo HagaChief ConsultantJapan Business
  Create, Co., Ltd.

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Agenda

• SCC-Japan SCOR Working Group
• Goal
• Problems in ERP Implementation
• ERP Implementation Concepts
• Development Themes
• Enhanced Model SCORforERP
• ERP Implementation Methodology with SCOR
• Conclusion

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SCC-Japan SCOR Working Group
SCC Japan

• SCOR Working Group
• Understanding of SCOR
• Diffusion of SCOR
• Development of practical Method

Board Meeting
Seminar
SCOR Workshop
SCORWorking Group

• ERP Implementation Project
• From May, 2004
• Members- Practitioners- Software Engineers-
  Consultants

Steering Committee
Members Meeting
Technical Committee

ERP Implementation
Total7Projects
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Goal
There is a considerable gap between
ImplementedBusiness Process and Information
Systems
Developed BusinessStrategy
Goal of This Project To establish a practical
methodology with SCOR Model to Align Business
Process And Information Systems to Business
Strategy
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Problems in ERP Implementation
The reason why the business process and
information systems do not align to business
strategy is

• Business strategies are too abstract for ERP
  implementation project
• Process areas of business strategies are
  different from ones of ERP
• Problems in actual business scene are not
  considered in business strategies

Develop Business Strategies
Top-DownApproach
Bottom-UpApproach
Implement ERP System
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ERP Implementation Concepts
ERP system should be implemented through top-down
approach, with the concepts

• To confirm business strategies exactly and
  logically
• To Structure breakdown of strategies and
  bottom-up problems from actual business scene
• To define business processes incrementally and
  consistently
• To define whole the system requirements based on
  the process reference model
• To clarify the process performance improvement
  with system implementation

Develop Business Strategies
Top-DownApproach with Bottom-Consensus
Implement ERP Systems
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Development Subjects
A) SCOR Enhanced Process Model for ERP
Implementation SCOR for ERP
B) ERP Implementation Methodology with SCOR for
ERP
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Enhanced Model SCOR for ERP
No. No. D1.1 D1.1 Process Process Schedule Product Deliveries Schedule Product Deliveries Schedule Product Deliveries Schedule Product Deliveries Schedule Product Deliveries Schedule Product Deliveries Schedule Product Deliveries
Definition Definition
No. Input Process Output Output Best Practice Best Practice General ERP Features Metrics Metrics Metrics Metrics Metrics
No. Input Process Output Output Best Practice Best Practice General ERP Features Flexibility Responsiveness Reliability Costs Assets
1
2
3
4
Mapping of ERP Features on Metrics
Mapping of ERP Features on Best Practice
Definition of Process Level4
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Definition of Process Level4
To maintain consistency between SCOR Level13
process and ERP process level

• Concepts of Definition
• Define level4 as decomposition of level3
• With assumption of discrete manufacture
• Based on experience and knowledge of a decade of
  ERP projects
• With utilization of level3 best practice as a key

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Mapping of ERP Features on Best Practice
To distinct the coverage area of ERP functions
against SCOR Level3
2)Defining of General ERP function
1)mapping of functions of each ERP package
Oracle
General ERP Features
PeopleSoft
Best Practice
SAP
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Mapping of ERP Features on Metrics
To evaluate the improvement of metrics with ERP
Features
Metrics
Behavior
Flexibility Responsiveness Reliability Costs A
ssets
General ERP Features
Best Practice
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ExampleS1.1
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ERP Implementation Methodology with SCOR
We have defined process level that each phase
covers in order to optimize business processes
totally
Business Strategy
Initiate
Plan
Design
Develop
Implement Operate
Business Process / ERP Detail Specs
Business Process / ERP Outlines
BPR / Information System Concepts
Configured ERP
New Business Process / ERP
Level 1 Process Type
SCOR
Level 2 Process Category
Level 3 Process Element
Level 4 Process Task
SCORforERP
Level 5 Process Activity (Transaction)
ERP
Level 6 (Transaction Function)
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Methodology in Initiate
Initiate
Formulate BPR Concepts
ConfirmBusinessStrategy
BusinessStrategy
BPR Concepts
Plan

• To-Be Business Process
• Metrics

• Mission
• Vision
• Domain
• SWOT
• Business Plan
• etc

• CSF
• Issue Tree
• KGI/KPI

• Issue Tree
• BPR Themes

Information System Concepts
Capture the As-Is State of Process

• To-Be System Process
• Solutions

• Problems of As-Is Process

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Confirm Business Strategy

• Clarify Business Strategy with Balanced Score
  Card (BSC) Framework
• Structure Strategic Issues with Enhanced SCOR
  Lv1/2/3 Process
• Set Key Performance Indicator (KPI) with SCOR
  Metrics

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Capture the As-Is State of Processes

• Research As-Is State of Processes along with SCOR
  Process
• Find Problems to be solved in the project
• Summary problems at level3 process

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Formulate BPR Concepts

• Integrate Top-Down issues and Bottom-Up problems
• Set Priority and list BPR themes
• Formulate BPR and information system concepts

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Conclusion
How to bridge the gap between them with SCOR ?
ImplementedBusiness Process and Information
Systems
Developed BusinessStrategy
Top-Down Approach with Bottom-Consensus
SCC Japan will continue the development of

• SCOR Enhanced Process Model SCOR for ERP
• Process Level4 Definition
• Mapping of General ERP Features
• Mapping of Best Practice on Metrics
• ERP Implementation Methodology with SCOR for
  ERP

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Thank You!
For more information, please contact
to k.haga_at_jbc-con.co.jp