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“Reality can destroy the dream; why shouldn't the dream destroy reality?” George Moore

Make Enterprise Growth in The Cloud a Reality

© 2011 Cypress Resources • All rights reserved.

OVERVIEW As a technical leader you are faced with balancing numerous requests from Business Lines for new technology offerings while enforcing IT governance in order to maintain system stability and data integrity. This paper offers you insight to a strategy for appeasing and delivering functionality to Business Lines while constructing an architecture that offers flexibility (to meet a changing business landscape), scalability, cost-effectiveness, and provides stability for integration control points to monitor and provide quality assurance. Using a Business Process Management (BPM) approach you can confidently fulfill technical governance requirements while delivering specialized, targeted business applications to meet the operational needs and desires of Business Lines. Business Lines are driven by results and they will find a way to get results. The question for the organization becomes, “what is most beneficial? Results that can be reviewed, monitored, and responded to? Or results that are outside the periphery of core systems and can not be linked to “Key Performance Indicators?” If your organization desires to be a strategic business partner to truly support Business Lines’ operational processes you must consider a BPM approach to aligning people, processes, and technology. This paper offers a resolution to the paradox of giving Business Lines their choice of business applications while also establishing boundaries and structure to ensure a stable architecture and protect system reliability. A pairing of cloud technologies for functional offerings with a BPM design, implementation, and maintenance strategy delivers tools Business Lines need while mitigating the risk for the technical sponsor.

Who Should Read This White Paper: CFOs, COOs, CIOs, CEOs VPs of Business Ops, VPs of Finance Directors of Procurement, Directors of Business Development, Directors of IT Business Line Executives

© 2011 Cypress Resources • All rights reserved.

BPM: The Flight Plan to The Cloud “Reality can destroy the dream; why shouldn't the dream destroy reality?” – George Moore

Why is Enterprise Growth Via Best of Breed in The Cloud so Attractive? There are many reasons, but adapting to the latest technology feels most compelling. Your Lines of Business have needs. As an executive you are charged with leading your team to achieving organizational goals by providing them the tools to be successful. Lines of Business generate revenue and without the proper tools, they cannot stay current in the market and adapt to changing demands. Employees have begrudgingly complied, but with a caveat; they work outside of the system to accommodate the needs of the business. You have recognized this, but your organization made a significant investment in a solution that was the best choice five years ago. While a traditional Tier 1 ERP solution has its place in a companyʼs IT architecture it may not provide a best fit for optimal performance across all Business Line operations. These systems do promote and provide “best practices”, but creating a “best-fit” requires customization. Where Business Lines have unique needs that are part of their service delivery and culture, forcing them to conform to “best practices” with less specialized functionality in order to avoid customization inhibits their ability to leverage their uniqueness as a strength and competitive advantage. If you do not provide systems to meet their needs Business Lines will develop individual methods, practices, and external systems to accomplish their business goals. Any systems external to IT’s governance creates risk of inconsistent or errant information distributed throughout the organization. Organizations that lack visibility and control over data are deprived of the opportunity to produce key data markers for Business Intelligence. Entrenchment of your plan in a BPM approach is the necessary insurance to avoid this problem. BPM directs business requirements to solutions, acceptance and usability. Today Cloud applications are not only for small businesses. The applications are sophisticated and targeted to meet specific operational needs of Business Lines. These applications help to managing overhead. IT departments do not have to house the hardware, support the software, and have specialized skill sets in house. The power of a Cloud application allows what would be a $1 investment in internal hardware to be used for 10 times the amount of shared computing power. The Cloud offers scalability with little lead-time. As new divisions and departments are added the application can immediately scale-to-fit the changing organization. The bandwidth of the application is inherent and the organization taps in as needed. It offers “on-demand extensibility” the ability to expand application functionality when needed by the organization.

© 2011 Cypress Resources • All rights reserved.

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The Challenge of Embracing The Cloud Although operating in The Cloud has many operational benefits, is easy to use, and provides more for each IT dollar, moving to The Cloud requires change and change requires effort. How do you manage all disparate systems? • Is your growth limited because your current structure is too confining and difficult to expand? • Are you limited due to your current framework not meeting needs of business and processing that occurs outside of your system? • Do you have a method to determine and identify the area that if reengineered will yield the greatest increase in productivity? So let's "land the plane"...

© 2011 Cypress Resources • All rights reserved.

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The Flight Pattern for Making Best of Breed a Strategic Reality – BPM “Moving to The Cloud is not an answer to solving failure points that exist in your business processes.”

It has often been said that hope is not a strategy. Moving to The Cloud is not an answer to solving failure points that exist in your business processes. There are no real short cuts at least not without long-term consequences. Regardless of what technology you decide to embrace you must have business processes that are well defined, optimized, accepted and understood by the users. If your business processes are vaguely defined and consistency of use is in question, you are not currently meeting the needs of your operations. So what is your strategy for embracing enterprise growth in The Cloud and providing your operational Business Lines the technology they want and need? You need solid ground for launch and landing.

I. The Plan Here are the fundamentals: 1. Understand your business objective priorities 2. Create standardization in processes 3. Develop distinct process modules a. Gather appropriate capabilities 4. Establish flexibility a. Understand that change and adjustment is the way forward b. Create the ability to quickly build and remove touch points in response to the business environment c. Build modular processes that are repeatable and interchangeable

© 2011 Cypress Resources • All rights reserved.

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Moving to The Cloud is More than a Technical Application Migration. It is a Business Platform Shift. As CIOs lead their IT organization towards becoming

How do you use BPM to adapt current business

full-fledged partners in business strategies and

processes – processes managed and driven by current

objectives, they will have to lead the Business Lines to

ERP application modules and processes that exist

understand that processes drive efficient business.

outside the system that are nonstandard and

Business processes in The Cloud require a new approach

inconsistent? The following activities regarding your

for structure and compatibility. With the latest targeted

business processes must occur within the BPM based

business applications and BI tools that can accurately

implementation to produce results driven “modularity”:

extract data from disparate applications the justification 1. Discernment – Prioritizing corporate goals.

is getting easier.

Prioritizing existing issues and requests to understand

“Processes must be separated into modules that are standardized and repeatable…”

where to focus efforts for the largest and fastest Return on Investment.

A typical view of a business process structure is to

2. Depict and Construct – Outline ideal outcomes.

consider processes from end-to-end accounting for all

Sketch solution options and as details are added logical

predecessor and successor implications. With a move to

groupings will emerge. Define the standards for the

The Cloud organizations will have to look at their

groupings so that consistency in usage can be developed.

operations from end-to-end, but modularize the

Acknowledge the exceptions and map these issues back

structure of their processes. Each process must be

the root causes.

separated into modules that are standardized and repeatable. This structure allows for the most flexibility

3. Model and Test – Setup of business cases and

to accommodate business needs. The process modules

scenarios that provide a walk-through of the processes

will be called and utilized on demand and in the

within their respective application. Judge transitions

appropriate combinations for the business requirement.

across process sets, applications, and business groups to

Not only does this dynamic arrangement of process

ensure that the process sets can perform autonomously

modules provide a high level of flexibility to address the

as well as in appropriate combinations. Determine a

rapidly changing needs of the business, it also allows for

user acceptance strategy and pilot the new architecture.

more creative and innovative ways to accomplish business. Organizations will find innovation among their employees to improve their business in ways they have not considered.

© 2011 Cypress Resources • All rights reserved.

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II. What are the Pitfalls: SaaS is emerging/has emerged at a rapid pace. There are new niche products launched daily. Yes, you want to provide your team with the tools to be successful. Yes, you want the Business Line to have the flexibility to operate as a mature organization while remaining nimble. The Cloud seems like the best alternative given the benifits of lower risk, more targeted tool, faster implementation and less administrative servicing. Without a defined strategy for embracing The Cloud however, your organization is risking control, structure, quality assurance and a bit of the “stick to it” mentality that you often need with any business application.

With such flexibility and ease of implementation, your organization could be at risk of always wanting/trying the next great thing and never committing. When and what is your expected return? How long do you expect to maintain an application in the cloud? Do you anticipate maintaning longer or shorter than a module of an ERP? What percentage of adoption is acceptable? 10%, 20%, 50%...and how are you going to know who is using the system? The point is that one of the things that keeps organizations working in their current ERP and related modules is the expense incurred by the organization for implementation and ongoing licensing. If that were reduced would you change more often to suit the needs of the business?

The model right now is loose and fast, so what is going to keep you grounded? How are you going to tie your organization together once Business Lines have been given the flexibility to adopt targeted business applications?

Some of the risks to avoid: • Selecting a new application without vetting all business requirements. • Implementing new applications and process modules without proper modeling. • Failing to understand business processes from the perspective of the contributors and benefactors. • Misunderstanding the details of the business process steps as well as their predecessors and successors.

© 2011 Cypress Resources • All rights reserved.

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III. What You Need to Make it Successful: “BPM aligns people, processes, and technology to promote effective and efficient Business Line performance”

Your Business Lines need thrust and lift for take-off but something has to keep your organization on course. What is it going to be? Will it be your enterprise architecture adjusted for The Cloud? The fact is a tool will not provide what is needed to make your cloud platform adaptable and built for enterprise growth. You need a foundation. You need control. You need structure. You need to capture what makes your business unique. You have SOA as the design and offering. You need BPM to make it a reality.

BPM aligns people, processes, and technology to promote effective and efficient Business Line performance. To implement BPM organizations must accomplish the following: Realize all current processes – documentation of all systematic or manual processes is necessary to determine opportunities for modularity Recognize triggers and drivers – labeling and categorizing the actions or circumstances that initiate parts of a process will identify the criteria to connect distinct process modules Perform root cause analysis – identifying the root cause of any obstacles or symptomatic problems that exist within processes is critical to developing realistic process solutions Connect distinct process modules across operations – determine desired outcomes of groups of process steps, define success of the sub-process, and understand the path to exception handling. Use documented triggers and drivers to map operational paths and train users.

© 2011 Cypress Resources • All rights reserved.

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Conclusion – Launch and Land Safely with BPM as Your Foundation: Whether you have not yet left the ground or you are already in The Cloud your organization needs a solid foundation and a measurable flight pattern for The Cloud. BPM will provide your organization with the ability to meets its goals. A BPM approach will allow Business Lines the tools they need to reach their targets while maintaining compliance. BPM will foster and create an environment that is more about cultivating innovative and creative quality solutions than about constraining and enforcing.

By providing all of these ideal conditions in an architecture that breeds consistency, standardization, and ultimately improved ability for strategic decision making your organization will soar. If you base your plan in BPM you will have the tools, framework, and quality assurance that a move to The Cloud will not be an abandonment of structure and governance, but a strategy with clear integration paths. The move will be a deliberate and methodical plan to empower Business Lines to perform at optimal levels and produce results that can achieve corporate goals.

Š 2011 Cypress Resources • All rights reserved.

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About Cypress Resources:

Based in Birmingham, Alabama, Cypress Resources is a Business Process Consulting firm specializing in Business Process Management and Business System Integration. Serving clients nationwide, Cypress Resources aligns people, processes and technology to increase business performance. Its focused approach shortens the paths to goals, propels initiatives to completion, and averts issues before they become problems. Mapping, monitoring and measuring each task is fundamental to Cypress Resources’ approach to ensure accountability and optimum return on investment. Capitalizing on the strengths of a veteran team of business optimization experts for each unique engagement, Cypress Resources delivers profitability and enduring success to middle market and Fortune 500 companies in a wide range of industries. Clients value Cypress Resources’ depth of experience, quick responsiveness and the hands-on value provided by its principals, Carey L. Rome, CEO, and Cathy F. Milazzo, Executive Vice President.

Carey L. Rome Carey began his career as a Certified Public Accountant and moved into business operations after his tenure with Arthur Andersen. While at Andersen, Carey served as an advisor to mid-sized and Fortune 1000 companies as an auditor and consultant. Carey honed his entrepreneurial and leadership skills as Chief Financial Officer and Chief Operating Officer of two privately held companies. After gaining significant experience in finance and business operations, Carey launched Cypress Resources in 2005. A native of Baton Rouge, Louisiana, Carey holds a Bachelor of Science degree in accounting from Louisiana Tech University. He is a member of the American Institute of Certified Public Accountants, the Business Process Management Institute, the Alabama Society of Certified Public Accountants, the Birmingham Rotary, and the Birmingham Monday Morning Quarterback Club. Carey serves as a member of the Board of Trustees for Alabama Retail Comp and is a current Board member and past president of the Board for Big Brothers and Big Sisters of Greater Birmingham.

Cathy F. Milazzo Since 1994, Cathy F. Milazzo has guided both public and private sector clients with incisive and practical knowledge to overcome challenges and achieve measurable results in the areas of Information Technology and Information Management. In the private sector, Cathy worked with a multi-billion dollar company participating in the implementation of software solutions that reorganized business processes and integrated systems. As a manager in the Higher Education, Healthcare, and State and Local practices of KPMG and then BearingPoint, Cathy specialized in project management of ERP and other system implementations. As an independent consultant, Cathy has served public sector organizations as a client advocate to provide strategy, direction, and quality control during implementations. A native of Birmingham, Alabama, Cathy holds a Bachelor of Science degree in Finance from the University of Alabama at Birmingham.

© 2011 Cypress Resources • All rights reserved.

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Cypress Resources: White Paper 2  

Make Enterprise Growth in The Cloud a Reality

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