Sap Bts Upenn

The SAP
Business Transformation Management

Method (BTM2) parallels with DYNAMICS/P3
Tim Hornung MS, SAP Joel Adler Ph.D. UPenn
© 2013 SAP AG. All rights reserved. 1

What is Organizational Dynamics at Penn about?
Dynamics Concentrations
© 2013 SAP AG. All rights reserved. Public 22

Alignment of BTM2 & DYNM/P3
A rare industrial situation that sees its business strategy inextricably tied
to these two principles of Penn Organizational Dynamics
•Holistic approach
•Balance of Process and Behavioral perspectives
Mapping of Content of the P3 concentration
•Project Management
•Program Management
•Risk Management
•Portfolio Management
•Business Process Management

BTM2

63% of the world’s
transaction revenue
touches an SAP system.

The SAP mobile platform
reliably delivers 1.8
billion text messages
worldwide every day.

SAP HANA can increase
analysis speed by more
than 10,000x, equal to
walking from California to
New York in 6 minutes.

Our customers
produce 85% of the
world’s pet food.

Drivers for Business Transformation (BT)
Fundamental and complex changes
What
What is
is Business
Business Transformation
Transformation (BT)*
(BT)* –– Excerpt
Excerpt
Business
Business transformation
transformation implies
implies fundamental
fundamental and
and complex
complex organizational
organizational changes
changes within
within as
as well
well as
as across
across
companies
companies alongside
alongside the
the value
value chain;
chain; business
business transformation
transformation can
can also
also radically
radically alter
alter the
the company's
company's relations
relations
with
with the
the wider
wider economic
economic and
and societal
societal environment.
environment.
Drivers for BT:

Increasing globalization
(that leads, for example to stronger
competition)
Technological innovations
Radical changes of
(e.g. Information and communication
economic conditions
technologies)
(e.g. Financial crisis)
Pressure for sustainability Changing workforce

(which results in changed (such as increasing
customer preferences or global mobility)
regulations)
* www.fhnw.ch/iwi/bta Ö Business Transformation Research.

Business Transformation Academy
A global, trans- and interdisciplinary network of Thought Leaders
SAP Experts
Customers / Professionals
Academics / Institutes
New: SAP Partners

Business Transformation Management
Call for action
Low
Low success
success rate
rate of
of business
business transformation
transformation projects
projects (less
(less than
than 40%)
40%)
Source:
Source: Isern
Isern et
et al.
al. (2009)
(2009)
Findings
Findings
Lack
Lack of
of holistic
holistic management
management approaches
approaches
Source:
Source: Winter,
Winter, Uhl
Uhl (2011)
(2011)
X 75% are failing because of

non-technical reasons
e.g. non acceptance of the solution, skill
problems, communication problems,
problems with project resources
X 25% Failure because of

technical reasons
e.g. demands can not be mapped,
sizing problems, problems with
connecting legacy systems
Source: Seven Reasons Why
Information Technology
Projects Fail (2011)

The BTM2 – Big Picture
Meta
Management
Orchestration of individual disciplines: Guidelines, Leadership, Culture, Values and Communication
Direction Enablement
Strategy Risk Processes IT Organizational Competence &
Value Program/Project
Transformation Change training
Management Management Management Management Management
Management Management management
360r Strategic Determine Program Business and

AS-ISData Baseline Planning and Set-up & Competence
Risk scope of IT Capability
Collection analysis Assessment Governance Assessment governance strategy
analysis
Analysis of Deep dives for From template Program & Proj.

needs & Value Integration To-be analysis Stakeholder Training need
strategic risk to bespoke management
maturity level estimation Mgmt analysis
areas inventory
Assess Identify Program &

Design Detailed Project Scope Gap analysis Change agent
business vision transformation improvements As-is analysis
business case business case Mgmt network
/add attributes
Design Agree Program &

Define risk Map selected Project Time & IT roadmap Communication
Business Model ownership for strategy plan management Gap analysis
processes Cost Mgmt
realization
Integrated Risk Solution Performance

Plan benefit Plan process Program Curriculum
transformation Management Quality Mgmt architecture management -
realization implementation design development
plan Execution Project team
Program Performance
Execute benefit Implement Human IT Deployment Training
Business Case Risk Monitoring plan management -
realization processes Resource Mgmt preparation
Business
Organizational Identify Program IT Operations Change

Review and Evaluate Procurement
model additional & Service readiness Training
evaluate results processes Mgmt Optimization
improvement assessment
Establish Risk Mgmt. as Program

Risk analysis IT Lifecycle Change Evaluation &
potentials for part of Board Establish CIP Reporting Management monitoring improvement
further benefits Governance
Business Transformation Management Methodology (BTM²)
Disciplines and deliverables in detail
Meta
Orchestration of individual disciplines: Guidelines, leadership, culture, values, and communication Management
Envision
Envision Engage
Engage Transform
Transform Optimize
Optimize
Strategy Management
Detailed benefit Plan benefit Realize Benefit review Establish potentials Value
estimation realization benefit and evaluation for further benefits Management
1
Project startup and
AS-IS Data collection
Risk Risk Execute risk Risk
Risk monitoring Review and evaluate risks
Identification mitigation plan mitigation plan Management
2
Analysis of transformation
needs and causes Business process Process to-be Process Process Run, monitor Business
(80/20 rule) analysis design implementation evaluation and optimize Process Mgt.
3 IT operations & Transformational

Solution IT deployment IT deployment Plan IT lifecycle
service IT
Design architecture plan and testing IT operations management
optimization Management
Business Vision
Ensure Improve org.

Stakeholder, Execute Change Organizational
4 Set up change
communic. and change plan monitoring
sustainable
change
change
readiness Change Mgt.
plan
performance mgt.
Design
Business Model
Need, as-is and Training Training Transfer, application Competence &

gap analysis preparation Execution and evaluation Training Mgt.
5
Define integrated
transformation plan
Program/Project Program/Project Program/Project Program/Project closure Program and
initiation planning realization Project Mgt.
© 2013 SAP AG. All rights reserved. Strategy to be approved by decision makers Public 1313
BTM² - Strategy Management
Portfolio of strategic options
Design business model: 4 strategic options

high
Consolidation & Focus: Strategic

Focus on core redirection
competencies/business, Expand core business,
Reduction of overcapacities transfer and development
Overcome stakeholder
Ongoing
crisis
observation
Increase readiness through
Risks and opportunities
sensitization of stakeholders
low
low Transformation readiness high

BTM² - Strategy Management
Transformation need analysis
Consideration of different stages: Decreasing flexibility with increasing pressure
Transformation stages
high
Capital consumption,
negative cash flow
Unclear operating results
Lack
Lack of
of liquidity
liquidity
Loss of customers
Blockade of necessary Lack

Lack of
of business
business
transformation efforts success
success
Negative impacts not Lack of

Lack of
yet visible strategy
strategy
Sustained Lack of
Lack of
success stakeholder
stakeholder
commitment
commitment
Lack
Lack of
of
awareness
awareness
and
and knowledge
knowledge
Pro-active
Pro-active
low
management
management
Stage 0 Stage 1 Stage 2 Stage 3 Stage 4 Stage 5

high Flexibility to react (time and options) low

© 2013 SAP AG. All rights reserved. 29 29
Organizational Dynamics
and
P3

Alignment of BTM2 & DYNM/P3
A rare industrial situation that sees its business strategy
inextricably tied to these two principles of Penn Organizational
Dynamics
•Holistic approach
•Balance of Process and Behavioral perspectives
Mapping of Content of the P3 concentration
•Project Management
•Program Management
•Risk Management
•Portfolio Management
•Business Process Management

Mapping of Dynamics/P3 courses to BTM2
Systems Thinking: Pourdehnad

Complexity, Sustainability, and Systems Thinking,
Barstow
Organizational Essentials
The Art and Science for Leadership,
of Organizational Choukroun
Strategy and Planning,
Meta Management
Choukroun
Organizational Diagnosis, Kaminstein, Zane
Strategy Management
Effective Entrepreneurship and Leadership, Keech
Direction
Is Bigger - Inevitable, Better or Worse in Organizations?, Licht
Value Management Psychodynamics
Building a Businessin Organizations, Hirschhorn
Case for Sustainability, Barstow,
Nuessle
Organizational Ethics and Integrity, Fielder
Risk Management Managing Project Risk, Hornbacher
Organizational Risk Management, Combrick-Graham
Process Improvement, Stankard
Processes Management
Business Process Excellence, Kirchmer
Managing Project Portfolios, Bayney
IT Transformation Management
Group Team Dynamics: Kaminstein, Zane
Enablement
Coaching Others to Manage Conflict, Napier

Organizational Change Management
Organizational Culture Change, Vanderslice
Mastering Organizational Politics and Power, Eldred
Competence & Training Management Knowing Yourself: The Coach as an Instrument of Change,
Napier
Leader-Manager as Coach, Russo
Program/Project Management Stories in Organizations: Tools for Executive Development,
Greco
Organizational Project Management,
Choukroun
Program Management, Heaslip
Discussion

Thank You!
Contact information:
Tim Hornung
Practice Manager, Business Transformation Services
Tim.Hornung@sap.com
920-791-0354
Joel Adler
P3 Studies Leader, Organizational Dynamics
University of Pennsylvania
adler@sas.upenn.edu
610-940-1941
41

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The SAP

Business Transformation Management

© 2013 SAP AG. All rights reserved. 1

© 2013 SAP AG. All rights reserved. Public 22

© 2013 SAP AG. All rights reserved. Public 33

© 2013 SAP AG. All rights reserved. Public 44

© 2013 SAP AG. All rights reserved. 5

© 2013 SAP AG. All rights reserved. 6

© 2013 SAP AG. All rights reserved. 7

© 2013 SAP AG. All rights reserved. Public 88

Drivers for BT:

Pressure for sustainability Changing workforce

© 2013 SAP AG. All rights reserved. Public 99

© 2013 SAP AG. All rights reserved. Public 1010

X 75% are failing because of

X 25% Failure because of

© 2013 SAP AG. All rights reserved. Public 1111

360r Strategic Determine Program Business and

Analysis of Deep dives for From template Program & Proj.

Assess Identify Program &

Design Agree Program &

Integrated Risk Solution Performance

Organizational Identify Program IT Operations Change

Establish Risk Mgmt. as Program

3 IT operations & Transformational

Ensure Improve org.

Need, as-is and Training Training Transfer, application Competence &

Design business model: 4 strategic options

Consolidation & Focus: Strategic

low Transformation readiness high

© 2013 SAP AG. All rights reserved. Public 1919

Consideration of different stages: Decreasing flexibility with increasing pressure

Unclear operating results

Blockade of necessary Lack

Negative impacts not Lack of

Stage 0 Stage 1 Stage 2 Stage 3 Stage 4 Stage 5

© 2013 SAP AG. All rights reserved. Public 2020

© 2013 SAP AG. All rights reserved. Public 3737

© 2013 SAP AG. All rights reserved. Public 3838

Systems Thinking: Pourdehnad

Coaching Others to Manage Conflict, Napier

© 2013 SAP AG. All rights reserved. Public 4040

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