Process Oriented Architecture

Process Oriented
Architecture
Alan McSweeney
http://ie.linkedin.com/in/alanmcsweeney

Process Oriented Architecture Introduction
• Individual process and process areas within an organisational vertical
hierarchy represent competencies and associated organisational
operational functions and structures designed to handle units of
work
• These competencies are utilised or invoked in response to requests
or events
• Competencies/process areas can be shared
• A Process Oriented Architecture is a way of linking process areas to
actual (desired) interactions – customer (external interacting party)
service journeys through the organisation
• Allows two views of any process to be maintained and operated
− External view – that experienced by user
− Internal view – that worked on by the organisational competency
• There will always be two views of any process
August 17, 2016 2

Process Oriented Architecture Maps Actual External
Interaction Paths To Organisational Operational Process
Competencies
August 17, 2016 3
External Interaction Paths – Experience Journeys
Organisational Operational
Process Competency Grouping

External Interacting Parties
• An organisation will interact will multiple external parties
• Each external party will have a number of interaction paths
or journeys
• These journeys are the routes of experience of external
parties
• These routes of experience need to be mapped (as)
seamlessly (as possible) to internal organisational
operational process competency groupings
August 17, 2016 4

Process Oriented Architecture Maps Actual External
Interaction Paths To Organisational Operational Process
Competencies
• External Interaction Paths – the natural real life way a
customer (external party) interacts with the organisation
and avails of the organisation’s products and services
• Organisational Operational Process Competency
Grouping – the way the organisation structures itself to
perform work
• There are discontinuities and disconnections between the
natural interaction sequence and the way the organisation
responds to these interactions
• Leads to differences between customer (external party)
expectations and what actually happens
August 17, 2016 5

External Interaction Paths
• These represent the Straight Through Processing that the
customer (external party) wants to experience
• The complexity of internal organisational operational
process competency groupings needs to be masked from
the customer (external party)
August 17, 2016 6

Process Oriented Architecture
• External interaction paths represent how external parties
actually (want to) interact with the organisation
− External interaction paths are effectively meta-processes that
aggregate individual processes/sub-processes
• Process Oriented Architecture links organisation
competencies to these contact sequences
− Enables end-to-end view, across cross functional and operational
areas
− It is the glue that bonds customer (external party) interaction
sequences with operational processes and structures
− Enables straight through processing
August 17, 2016 7

Three Pillars Of Any Organisation
Organisation
Strategy, Infrastructure and Product and Service Development
Develop strategy, implement governance and management, commit to the enterprise, build
technology, communication and resource infrastructure that supports products and services and
support functional processes, develop and manage new products and services, manage mergers,
acquisitions and divestments, develop and manage strategic business partners and business
relationships and the supply chain
Operations
Implement and operate organisation competencies and associated processes that support the
customer operations and management including both day-to-day and operations support and
readiness processes and sales management and supplier/partner relationship management
including customer acquisition, product and service sales, product and service delivery and billing
Organisation Management
Basic organisation competencies and associated business processes required to run any
organisation - facilities, information technology, financial management, legal management, HR,
regulatory management, process, cost and quality management, strategy development and
planning, improvement and change and knowledge management
August 17, 2016 8

Three Pillars Of Any Organisation
• Exact organisation profile depends on many factors such
as:
− The type and mix of products and services the organisation
provides
− The nature of the customer relationship – known or anonymous
− The number of different types of customer
− The number and type of external parties interacted with
August 17, 2016 9

Sample Enterprise Business Process Groups –
Generalised Structure
August 17, 2016 10
Vision, Strategy,
Business
Management
Core Operational Processes With Cross Functional Linkages
Management and Support Processes
External Party Facing
Processes
Supporting Processes

Interactions Between Organisation Processes
August 17, 2016 11
Core
Processes
Supporting
Processes
Management
Processes
Defines Strategy and Approach
for Implementing and Operating
Core Operational Processes
Defines Strategy and Approach
for Implementing and Operating
Core Operational Processes
External Interacting Parties and Experience Journeys
What They
Interact With

Core
Processes
August 17, 2016 12
Business
Customer
Retail
Customer
Public
Service
Provider
Dealer
Sub-
Contractor
Agent
Regulator
Supplier

Taking A Process Oriented Architecture Approach
• This enables the mapping of external straight through
processing to internal organisational operational process
competency groupings
• Maps the desired customer (external party) experiences to
competencies that may cross organisational functional
boundaries
August 17, 2016 13

Sample Organisation Business Process Models –
• Core Operational Processes – drive and operate the
organisation, deliver value, support external party
interactions
• Management and Support Processes – internal processes
and associated business functions that enable the
operation and delivery of the core operational processes
• Vision, Strategy, Business Management – processes that
measure, control and optimise the operational and
support processes and set the direction of the organisation
August 17, 2016 14

August 17, 2016 15
Sample Organisation Business Process Models –
Vision, Strategy,
Business
Management
Core Operational Processes With Cross Functional Linkages
Management and Support Processes
Develop and Manage
Products and Services
Market and Sell
Products and
Services
Deliver Products
and Services
Manage
Customer Service
Human Resource
Management
and
Development
Information
Technology
Management
Financial
Management
Facilities
Management
Legal, Regulatory,
Environment,
Health and
Safety
Management
External
Relationship and
Partner
Management
Service,
Knowledge,
Improvement
and Change
Management
Vision and Strategy
Business Planning,
Merger, Acquisition
Governance and
Compliance

Core And Supporting Processes And Interactions
• External parties interact with the organisation’s core
business processes
• Core business processes may be logical, cross-functional
representations of multiple, internal operational processes
that may or may not be connected to present a seamless
logical view
August 17, 2016 16

Achieving A Process Oriented Architecture
Organisation Competency
And Process Definition
Customer Experience
Journey Definitions
Mappings From
Experience Journeys To
Organisation Competency
Process
Oriented
Architecture
August 17, 2016 17

Achieving A Process Oriented Architecture
• This requires:
1. Structured approach to identifying, categorising and
structuring internal organisational operational process
competency groupings – use sample process breakdowns as a
starting point
2. Customer (external party) experiences journeys identification
and definition – take a use case approach
3. Mapping of experiences journeys to internal operational
competencies
August 17, 2016 18

Sample Organisational Process Breakdowns
• APQC (American Productivity and Quality Center)
− Publish the Process Classification Framework (PCF) – defined
generic and domain-specific organisation process breakdown
− https://www.apqc.org/pcf
• TMForum
− Publish the enhanced Telecommunications Operating Breakdown
(eTOM) business process framework aimed at
telecommunications service providers
− https://www.tmforum.org/business-process-framework/
− Can be generalised to be applied to other utility-type companies
August 17, 2016 19

Sample Organisational Process Breakdowns
• These can be used as frameworks for identifying,
categorising and structuring internal organisational
operational process competency groupings
• Provide a foundation for this development to reduce the
effort and improve the quality of the results
August 17, 2016 20

APQC (American Productivity and Quality Center)
Process Classification Framework (PCF)
• Not really an operational process breakdown
• More an organisational competency breakdown
August 17, 2016 21

APQC PCF Generic Organisational Process
Breakdowns
Organisation
1.0 Develop Vision and Strategy
2.0 Develop and Manage Products
and Services
3.0 Market and Sell Products and
Services
4.0 Deliver Products and Services
5.0 Manage Customer Service
6.0 Develop and Manage Human
Capital
7.0 Manage Information Technology 8.0 Manage Financial Resources
9.0 Acquire, Construct, and Manage
Property
10.0 Manage Environmental Health
and Safety (EHS)
11.0 Manage External Relationships
12.0 Manage Knowledge,
Improvement, and Change
August 17, 2016 22

APQC PCF - External Interaction Process/
Competency Areas
August 17, 2016 23
Organisation
1.0 Develop Vision and Strategy
2.0 Develop and Manage Products
and Services
3.0 Market and Sell Products and
Services
4.0 Deliver Products and Services
5.0 Manage Customer Service
6.0 Develop and Manage Human
Capital
7.0 Manage Information Technology 8.0 Manage Financial Resources
9.0 Acquire, Construct, and Manage
Property
10.0 Manage Environmental Health
and Safety (EHS)
11.0 Manage External Relationships
12.0 Manage Knowledge,
Improvement, and Change

APQC PCF Generic Organisational Process
Breakdowns
• APQC model mixes pure operational/delivery
processes/competencies with strategy and planning topics
August 17, 2016 24

APQC PCF Model - Operational Process Develop and
Manage Products and Services – Generic Process
Breakdown
Develop And Manage Products And Services
Manage Product And Service Portfolio
Evaluate Performance Of Existing Products/Services
Against Market Opportunities
Define Product/Service Development
Requirements
Perform Discovery Research
Confirm Alignment Of Product/Service Concepts
With Business Strategy
Manage Product And Service Life Cycle
Manage Product And Service Master Data
Develop Products And Services
Design, Build, And Evaluate Products And Services
Test Market For New Or Revised Products And
Services
Prepare For Production
August 17, 2016 25

APQC Model - Operational Process Market and Sell
Products and Services - Generic Breakdown
Market And Sell Products And Services
Understand Markets,
Customers, And Capabilities
Perform Customer And
Market Intelligence
Analysis
Evaluate And Prioritise
Market Opportunities
Develop Marketing Strategy
Define And Manage
Channel Strategy
Define Pricing Strategy To
Align To Value Proposition
Define Offering And
Customer Value
Proposition
Develop Sales Strategy
Develop Sales Forecast
Develop Sales
Partner/Alliance
Relationships
Establish Overall Sales
Budgets
Establish Sales Goals And
Measures
Establish Customer
Management Measures
Develop And Manage
Marketing Plans
Establish Goals, Objectives,
And Metrics For Products
By Channels/Segments
Establish Marketing
Budgets
Develop And Manage
Media
Develop And Manage
Pricing
Develop And Manage
Promotional Activities
Track Customer
Management Measures
Develop And Manage
Packaging Strategy
Develop And Manage Sales
Plans
Generate Leads
Manage Customers And
Accounts
Manage Customer Sales
Manage Sales Orders
Manage Sales Force
Manage Sales Partners And
Alliances
August 17, 2016 26

APQC Model - Operational Process Deliver Products
and Services - Generic Breakdown
Deliver Products And
Services
Plan For And Acquire
Necessary Resources
Develop Production And
Materials Strategies
Manage Demand For
Products And Services
Create Materials Plan
Create And Manage
Master Production
Schedule
Plan Distribution
Requirements
Establish Distribution
Planning Constraints
Review Distribution
Planning Policies
Assess Distribution
Planning Performance
Develop Quality Standards
And Procedures
Procure Materials And
Services
Develop Sourcing
Strategies
Select Suppliers And
Develop/Maintain
Contracts
Order Materials And
Services
Appraise And Develop
Suppliers
Produce/Manufacture/
Deliver Product
Schedule Production
Produce Product
Schedule And Perform
Maintenance
Perform Quality Testing
Maintain Production
Records And Manage Lot
Traceability
Deliver Service To Customer
Confirm Specific Service
Requirements For
Individual Customer
Identify And Schedule
Resources To Meet Service
Requirements
Provide Service To Specific
Customers
Ensure Quality Of Service
Manage Logistics And
Warehousing
Define Logistics Strategy
Plan And Manage Inbound
Material Flow
August 17, 2016 27

APQC Model - Operational Process Manage
Customer Service - Generic Breakdown
Manage Customer Service
Develop Customer
Care/Customer Service Strategy
Develop Customer Service
Segmentation/Prioritisation
Define Customer Service
Policies And Procedures
Establish Service Levels For
Customers
Plan And Manage Customer
Service Operations
Plan And Manage Customer
Service Work Force
Manage Customer Service
Requests/Inquiries
Manage Customer Complaints
Measure And Evaluate Customer
Service Operations
Measure Customer
Satisfaction With Customer
Requests/Inquiries Handling
Measure Customer
Satisfaction With Customer-
Complaint Handling And
Resolution
August 17, 2016 28

eTOM Business Process Framework
• Designed for telecoms utilities but it can be generalised
and effectively applied to many other (utility)
organisations
• Structure consists of operational (vertical) process groups
and cross-functional (horizontal) process groups
August 17, 2016 29

August 17, 2016 30
eTOM Business Process Framework Overview
Strategy,
Infrastructure
and Product
Operations
Enterprise
Management
Customer
Strategy, New Ideas, Products And
Associated Supporting Infrastructure
Moved to Production and Steady-State
Operations
Fundamental Supporting
Business Processes Needed To
Run Any Business
Operational
Processes – Sales,
Fulfillment,
Assurance, Billing
and Support

August 17, 2016 31
eTOM Business Process Framework - Detail
Strategy, Infrastructure and Product Operations
Strategy and
Commit
Infrastructure
Lifecycle
Management
Product
Lifecycle
Management
Operations
Support and
Readiness
Fulfilment Assurance Billing and
Revenue
Management
Marketing and Offer Management
Service Development and Management
Resource Development and Management
Supply Chain Development Management
Customer Relationship Management
Service Management and Operations
Resource Management and Operations
Supplier/Partner Relationship Management

Operations Organisation Pillar – Sub-Processes
Operations Pillar
Customer Relationship
Management
CRM - Support and
Readiness
Customer Interface
Management
Marketing Fulfilment
Response
Selling
Order Handling Problem Handling
Customer Quality of
Service/SLA
Management
Retention and Loyalty
Bill Invoice
Management
Bill Payments and
Receivables
Management
Bill Inquiry Handling Charging
Manage Billing Events Manage Balances
Service Management
and Operations
Service Management
and Operations
Support and
Readiness
Service Configuration
and Activation
Service Problem
Management
Service Quality
Management
Service Guiding and
Mediation
Resource
Management and
Operations
Resource
Management and
Operations Support
and Readiness
Resource Provisioning
Resource Trouble
Management
Resource Performance
Management
Resource Data
Collection and
Distribution
Resource Mediation
and Reporting
Manage Workforce
Supplier/Partner
Relationship
Management
Supplier/Partner
Relationship
Management Support
and Readiness
Supplier/Partner
Requisition
Management
Supplier/Partner
Problem Reporting
and Management
Supplier/Partner
Performance
Management
Supplier/Partner
Settlements and
Payments
Management
Supplier/Partner
Interface
Management
August 17, 2016 32

CRM Cross Functional Process And Operational
Process Groups
Operations
Support and
Readiness
Fulfilment Assurance Billing and
Revenue
Management
Customer
Relationship
Management
CRM - Support and
Readiness Customer Interface Management
Response
Selling
Order Handling
Problem Handling
Customer Quality of
Service/SLA
Management
Bill Invoice
Management
Bill Payments and
Receivables
Management
Bill Inquiry Handling
Charging
Manage Billing Usage
Data
Manage Account
Balances
Cross-Functional Processes
OperationalProcessGroups
August 17, 2016 33

Customer Relationship Management Process Area
and Sub-Processes – Levels 0 and 1
Customer Relationship
Management
CRM - Support and Readiness
Customer Interface
Management
Response
Selling
Order Handling Problem Handling
Customer Quality of
Service/SLA Management
Bill Invoice Management
Bill Payments and Receivables
Management
Bill Inquiry Handling Charging
Manage Billing Events Manage Balances
• Generic breakdown of high-level
CRM processes and associated
functions
• Considers the fundamental
knowledge of customers needs and
includes all functionalities necessary
for the acquisition, enhancement
and retention of a relationship with
a customer
• Concerned with customer service
and support
• Involves retention management,
cross-selling, up-selling and direct
marketing for the purpose of selling
to customers
• Includes the collection of customer
information and its application to
personalise, customise and integrate
delivery of service to a customer, as
well as to identify opportunities for
increasing the value of the customer
to the organisation
August 17, 2016 34

Customer Relationship Management Process Area
and Sub-Processes – Levels 0,1 and 2Customer Relationship
Management
CRM - Support
and Readiness
Support Customer
Interface
Management
Support Order
Handling
Support Problem
Handling
Support
Retention and
Loyalty
Support
Marketing
Fulfilment
Support Selling
Support Customer
Quality of
Service/SLA
Manage
Campaign
Manage Customer
Inventory
Manage Product
Offering
Inventory
Manage Sales
Inventory
Support Bill
Invoice
Management
Support Bill
Payments and
Receivables
Management
Support Bill
Inquiry Handling
Customer
Interface
Management
Manage Contact
Manage Request
(Including Self
Service)
Analyse and
Report on
Customer
Mediate and
Orchestrate
Customer
Interactions
Marketing
Fulfilment
Response
Issue and
Distribute
Marketing
Collaterals
Track Leads
Selling
Manage Prospect
Qualify
Opportunity
Negotiate
Sales/Contract
Acquire Customer
Data
Cross/Up Selling
Develop Sales
Proposal
Manage Sales
Accounts
Order Handling
Determine
Customer Order
Feasibility
Authorise Credit
Track and Manage
Customer Order
Handling
Complete
Customer Order
Issue Customer
Orders
Report Customer
Order Handling
Close Customer
Order
Problem Handling
Isolate Customer
Problem
Report Customer
Problem
Track and Manage
Customer
Problem
Close Customer
Problem Report
Create Customer
Problem Report
Correct and
Recover Customer
Problem
Customer Quality
of Service/SLA
Management
Assess Customer
Quality of
Service/SLA
Performance
Manage Quality
of Service/SLA
Violation
Report Customer
Quality of Service
Performance
Create Customer
Quality of Service
Performance
Degradation
ReportTrack and Manage
Customer Quality
of Service
Performance
ResolutionClose Customer
Quality of Service
Performance
Degradation
Report
Retention and
Loyalty
Establish and
Terminate
Customer
Relationship
Build Customer
Insight
Analyse and
Manage Customer
Risk
Personalise
Customer Profile
for Retention and
Loyalty
Validate
Customer
Satisfaction
Bill Invoice
Management
Apply Pricing,
Discounting,
Adjustments and
Rebates
Create Customer
Bill Invoice
Produce and
Distribute Bill
Bill Payments and
Receivables
Management
Manage Customer
Billing
Manage Customer
Payments
Manage Customer
Debt Collection
Bill Inquiry
Handling
Create Customer
Bill Inquiry Report
Assess Customer
Bill Inquiry Report
Authorise
Customer Bill
Invoice
Adjustment
Track and Manage
Customer Bill
Inquiry Resolution
Report Customer
Bill Inquiry
Close Customer
Bill Inquiry Report
Charging
Perform Rating
Apply Rate Level
Discounts
Aggregate Items
For Charging
Manage Customer
Charging
Hierarchy
Manage Billing
Events
Enrich Billing
Events
Guide Billing
Events
Mediate Billing
Events
Report Billing
Event Records
Manage Balances
• This shows a possible breakdown of
lower-level CRM processes and functions
August 17, 2016 35

Cross Functional Processes And The Customer
• The customer sees across the structure and is not
concerned with but is all too often aware of the
operational elements, their complexity and lack of
interoperability
August 17, 2016 36

Customer Relationship Management
• Customer is a short-hand term for any external party the
organisation interacts with
• An organisation will have many different types of customer
• Interaction sequence depends on the type of products and
services the organisation provides
August 17, 2016 37

Process Oriented Architecture And Customer
Relationship Management
• Approach reduces variability and introduces consistency
into customer (external party) experiences
• Enables handling of larger volumes of interactions more
efficiently
August 17, 2016 38

CRM Operational Success Formula
• CRM operational success is measured as the sum of
successful outcome of each interaction for each customer
for each customer type
August 17, 2016 39
Σ ( Σ (Interaction Outcome) )Σ ( )
Each
Customer
Interaction
Each
Customer
Each
Customer
Type

Customer Service Journeys
• Customer (or external party) journeys are organisation
interaction sequences pursued by customers as they use
the services provided by the organisation
• Interaction sequence depends on the type of products and
services the organisation provides
• Journeys are not always sequential
• Steps in journey involve interactions with different
organisational operational processes
August 17, 2016 40

Sample High Level Customer Service Journey– Buy
And Pay For A Product/Service
August 17, 2016 41
Look For
Information
/ Awareness
and Interest
Generated
Look For
Details on
Specific
Product/
Service/
Offer
Receive,
Evaluate
Offer,
Negotiate
and
Compare
Decide To
Buy
Product/
Service
Pass
Enrolment,
Buy/
Subscribe
and Receive
Product/
Service
Receive and
Pay Usage
Statements
and Bills
Query Usage
Statement
and Bill, Pay
Bill
Report
Fault/
Complaint
Upgrade/
Buy
Additional
Product/
Service/
Respond to
Offer
Renew,
Evaluate
Alternatives
and
Negotiate
Decide to
Leave/
Cancel
Service
Accept
Counteroffer
Do Not
Pursue
Interest
Do Not
Accept
Offer/
Accept
Other
Supplier
Do Not
Pursue
Interest
Change
Mind Before
Completing
Leave
Do Not
Complete
Cancelled
Because of
Delivery/
Provision
Problems

Sample Customer Service Journey
• High-level and simplified example of a utility-type service
provider operating in a competitive environment
• Every customer (external interacting party) journey will
have a direct sequence indicating success from the
organisation’s view and a number of alternate paths
August 17, 2016 42

Service Journey And Operational Processes
• Multiple alternate routes of service journey require
operational complexity
• Service journey is an abstraction of the associated
operational processes
• Operational processes represent organisational
competencies
• Operational complexity needs to masked from service
journeys
August 17, 2016 43

Sample Customer Service Journey – Phases And
Steps
August 17, 2016 44
Phase Step Description
Research/Consider Look For Information/ Awareness
and Interest Generated
Look for general information and/or be made aware of the existence of
the organisation and its products/services
Inquire/Evaluate Look For Details on Specific
Product/ Service/ Offer
Investigate specific offer or promotion and/or make contact with
organisation to get specific details on product/service
Receive, Evaluate Offer, Negotiate
and Compare
Receive and evaluate a specific offer. Negotiate the details of the offer
and compare the offer with that from other suppliers/service providers
Decide/Negotiate Decide To Buy Product/ Service Make a decision to buy a specific product/service from the selected
supplier/service provider
Buy/Subscribe Pass Enrolment, Buy/ Subscribe
and Receive Product/ Service
The customer is successfully setup and passes any checks. Buy the
specific product/service, do not change before completion and receive
the product/service successfully from the supplier/service provider
Use/ Bill and Pay/
Change/ Upgrade/
Complain/Report
Fault/ Leave
Receive and Pay Usage Statements
and Bills, Pay Bill
Use the product/service, receive usage information and bills and pay
bills
Query Usage Statement and Bill Query usage information and bill
Report Fault/ Complain Report a fault in the delivery or usage of the product/service or make a
complaint
Upgrade/ Buy Additional Product/
Service/ Respond to Offer
Buy new or additional products/services or respond to upgrade/replace/add
offer
Renew, Evaluate Alternatives and
Negotiate
Renew at the end of the contracted period, evaluate alternatives from
the current and other organisations and negotiate product/service and
price
Decide to Leave/ Cancel Service Give notice to leave and cancel service
Accept Counteroffer Accept counteroffer and stay with organisation

Sample Customer Journey – Organisation Processes
Interacted With
• The customer (external interacting party) will interact with
organisation competency areas/processes during the
journey
− Primary processes – directly involved in the interaction
− Enabling processes – indirectly involved in the interaction, such as
support, readiness, management, analysis, reporting
August 17, 2016 45

Sample Customer Journey – Primary And Secondary
Processes
August 17, 2016 46
Phase Step Primary Processes Secondary Processes
Research/ Consider Look For Information/
Awareness and Interest
Generated
• Manage Contact • Record, Track, Analyse and Report on Customer Contacts
• Manage Information Content and Access
Inquire/ Evaluate Look For Details on Specific
Product/ Service/ Offer
• Respond to Customer and Issue and Distribute
Marketing Collateral
• Qualify Customer
• Track Leads
• Manage Prospect
Receive, Evaluate Offer,
Negotiate and Compare
• Negotiate Sales/Contract
• Acquire Customer Data
• Cross/Up Selling
• Develop Sales Proposal
• Manage Sales Accounts
Decide/ Negotiate Decide To Buy Product/ Service
Buy/Subscribe Buy/ Subscribe and Receive
Product/ Service
• Determine Customer Order Feasibility
• Authorise Credit
• Complete Customer Order
• Issue Customer Orders
• Fulfil Order
• Track and Manage Customer Order Handling
• Report Customer Order Handling
• Manage Inventory
• Manage Deliveries
Use/ Bill and Pay/
Change/ Upgrade/
Complain/ Report
Fault/ Leave
Receive and Pay Usage
Statements and Bills, Pay Bill
• Apply Pricing, Discounting, Adjustments and Rebates
• Create Customer Bill
• Produce and Distribute Bill
• Collect Billing Information
• Manage Customer Billing
• Manage Customer Payments
• Manage Customer Debt Collection
Query Usage Statement and Bill • Receive and Handle Inquiry
• Track Inquiry to Completion
• Respond to Query
• Record, Track, Analyse and Report on Customer Contacts
Report Fault/ Complain • Receive and Handle Fault Report/Complaint
• Track Fault Report/Complaint to Completion
• Respond to Fault Report/Complaint
• Record, Track, Analyse and Report on Customer Contacts
Upgrade/ Buy Additional
Product/ Service/ Respond to
Offer
• Manage Contact
• Develop Sales Proposal
• Build Customer Insight
• Analyse and Manage Customer Risk
• Personalise Customer Profile for Retention and Loyalty
• Validate Customer Satisfaction
• Manage Information Content and Access
Renew, Evaluate Alternatives
and Negotiate
Decide to Leave/ Cancel Service • Manage Termination
Accept Counteroffer

Primary And Secondary Processes
• Operational processes, both primary and secondary, can
be invoked multiple times during the service journey
August 17, 2016 47

So What Is A Process
• Set of activities triggered by one or more events or statuses, requiring on
or more inputs and performed in structured interim contingent outcome-
dependent order or sequence to generate one or more outputs and cause
one or more outcomes
• Process is the self-contained unit that completes a given task
• Process can consist of sub-processes and/or activities
• Process and its constituent activities, stages and steps can be decomposed
into a number of levels of detail, down to the individual atomic level
• Process analysis and design is concerned with optimising an existing or
new process and focussing on efficiency and adding value
• Process is primarily concerned with its outcomes and outputs
− Activities and their sequence that generate outcomes and outputs are largely
secondary
− Activity and sequence view is useful for identifying opportunities for efficiencies,
resource optimisation, monitoring progress, collecting volumetric information and
detecting problems, duplicated effort, bottlenecks, resource constraints and non
value-adding activities
August 17, 2016 48

So What Is A Process
• A process has nothing to do with value: it should but it does
not have to
− This is desirable but not mandatory
• A defined process can have many attributes
• Each activity in a defined process can have many attributes
such as:
− Required Role/Skill
• An instantiated process can have many attributes such as:
− Start
− End
− Process Version
− Assigned Priority
− Participants and Activities
− Outcome(s)
− Output(s)
August 17, 2016 49

Process Decomposition
• Processes can be represented at different levels of detail
August 17, 2016 50
Process
Trigger(s)
Required Input(s)
Output(s)
Outcome(s)

Process Routing
• Activities within processes can be linked by routers that
direct flow and maintain order based on the values of
output(s) and the status of outcome(s)
August 17, 2016 51
Activity
Trigger(s)
Required
Input(s)
Output(s)
Outcome(s)
Router
Activity
Trigger(s)
Required
Input(s)
Output(s)
Outcome(s)
Activity
Trigger(s)
Required
Input(s)
Output(s)
Outcome(s)

Sample Partial Process Decomposition Levels – Buy
And Pay For A Product/Service
Buy Product/Service
Customer Contact
Management
Information Request
Fulfilment Response
Provide Quotation
Collect and Validate
Requirements
Process Information and
Create Quotation
Issue Quotation
Follow-up on QUotation
Manage Negotiations
Sell
Handle and Fulfil Order
Billing
Bill Invoicing
Bill Payments and
Receivables
Management
Bill Inquiry Handling
Receive Customer Bill
Inquiry
Assess Customer Bill
Inquiry
Authorise Customer Bill
Invoice Adjustment
Track and Manage
Customer Bill Inquiry
Resolution
Analyse Detailed Bill
Inquiry
Determine Appropriate
Bill Adjustment
Record Customer Bill
Invoice Adjustment
Issue Adjusted Bill
Report Customer Bill
Inquiry
Close Customer Bill
Inquiry
Handle Payment
August 17, 2016 52

Process Inputs And Outputs/Outcomes
August 17, 2016 53
Buy And Pay For A
Product/Service
Trigger(s)
Customer
Interest
Required Input(s)
Customer and
Product/Service
Details
Output(s)
Delivered and
Billed for
Product/Service
Outcome(s)
Customer Buys
and Pays for
Product/Service

Service Journey And Operational Processes
August 17, 2016 54
Look For
Information/
Awareness
And
Interest
Generated
Look For
Details on
Specific
Product/
Service/
Offer
Receive,
Evaluate
Offer,
Negotiate
and
Compare
Decide To
Buy
Product/
Service
Pass
Enrolment,
Buy/
Subscribe
and
Receive
Product/
Service
Receive
and Pay
Usage
Statements
and Bills
Query
Usage
Statement
and Bill,
Pay Bill
Report
Fault/
Complaint
Upgrade/
Buy
Additional
Product/
Service/
Respond to
Offer
Renew,
Evaluate
Alternatives
and
Negotiate
Decide to
Leave/
Cancel
Service
Accept
Counteroffer

Customer (External Party) Experiences Journey
Identification And Definition
• Customer (external party) experiences journeys identification and
definition is required to understand which journeys are to be
mapped to organisational operational process competency
groupings and optimised
August 17, 2016 55

• Identify possible use cases for each external interacting
partner
• Define the journey for each use case
August 17, 2016 56
Business
Customer
Retail
Customer
Public
Service
Provider
Dealer
Sub-
Contractor
Agent
Regulator
Supplier
Use CaseUse Case
Use Case
Use Case
Use Case
Use Case
Use Case
Use Case
Use Case

Business Model Canvass
• Consider using the Business Model Canvass (developed by Alexander
Osterwalder) to analyse and evaluate each use case
• Divides business into nine elements in four groups
− Infrastructure
• Key Partners - the key partners and suppliers needed to achieve the business model
• Key Activities - the most important activities the business must perform to ensure the
business model works
• Key Resources - the most important assets to make the business model work
− Offering
• Value Propositions - the value, products and services provided to the customer
− Customers
• Customer Relationships - the customer relationships that need to be created
• Channels - the channels through which the business reaches its customers
• Customer Segments - the types of customers being targetted by the business model
− Finances
• Cost Structure - the most important costs incurred by the business model
• Revenue Streams - the sources through which the business model gets revenue from
customers
August 17, 2016 57

Business Model Canvass
August 17, 2016 58
Key Partners
• Who are our key partners?
• Who are our key suppliers?
• What Key Resources do we acquire
from partners?
• What Key Activities do partners
perform?
MOTIVATIONS FOR
PARTNERSHIPS
• Optimisation and economy
• Reduction of risk and uncertainty
• Acquisition of resources and skills
Key Activities
• What key activities do our value
propositions require
• What are our distribution channels?
• What are our customer relationships?
• What are our revenue streams?
CATEGORIES
• Production
• Problem Solving
• Platform/Network
Value Propositions
• What value do we deliver to our
customers?
• Which of our customers’ problems are
we helping to solve?
• What bundles of products and
services do we offer to each customer
segment?
CHARACTERISTICS
• Novelty
• Performance
• Customisation
• “Getting the Job Done”
• Design
• Brand
• Status
• Cost Reduction
• Risk Reduction
• Accessibility
• Convenience/Usability
Customer Relationships
• What type of relationship does each of our
customer segments expect us to establish
and maintain with them?
• What ones have we already established?
• How are they integrated into our business
model?
• How much do they cost?
EXAMPLES
• Personal assistance
• Dedicated personal assistance
• Self-service
• Automated services
• Communities
• Co-creation
Customer
Segments
• For whom are we creating
value?
• Wo are our most important
customers?
• Mass market
• Niche market
• Segmented
• Diversified
• Multi-sided platform
Key Resources
What key resources are required by our
Value propositions Distribution channels
Customer relationships
Revenue streams
TYPES OF RESOURCES
Physical
Intellectual
Human
Financial
Channels
• Through which channels do our customer
segments want to be reached?
• How are we reaching them now?
• How are our channels integrated?
• Which ones are most cost-efficient?
• How are we integrating them with customer
processes?
CHANNEL PHASES
• Awareness - How do we raise awareness
about our products and services
• Evaluation – How do we help customers
evaluate our value proposition?
• Purchase – How do we allow customers
purchase specific products and services?
• Delivery – How do we deliver a value
proposition to customers?
• After Sales – How do we provide post-
purchase customer support?
Cost Structure
• What are the most important costs inherent in the business model?
• Which key resources are the most expensive?
• Which key activities are the most expensive?
IS THE BUSINESS MORE:
• Cost Driven – leanest cost structure, low price value proposition, maximum automation, extensive
outsourcing
• Value Driven – focussed on value creation, premium value proposition
SAMPLE CHARACTERISTICS
• Fixed costs
• Variable costs
• Economies of loading
• Economies of scale
Revenue Streams
• What value are customers really willing to pay for?
• What are they currently paying for?
• How are they currently paying?
• How would they prefer to pay?
How much does each revenue stream contribute to overall revenue?
TYPES FIXED PRICING DYNAMIC PRICING
• Asset sale • List price • Negotiation/bargaining
• Usage fee • Product feature dependent • Yield management
• Subscription fees • Customer segment dependent • Real-time market
• Lending/renting/leasing • Volume dependent
• Licensing
• Brokerage fees
• Advertising

Business Model Canvass And Use Case Identification
• Locate each use case within the Business Model Canvass to
understand its context and potential contribution to the
business
• This approach provides an understanding of the benefits of
implementing a use case and assists with their definition
August 17, 2016 59

Identification Of High Potential Value Use Cases
• Select party or parties included in the use cases
• Select the objective such as sell more, improve service
time, prevent customer loss, reduce cost of service,
increase efficiency
− Not all use cases can be implemented because of time, cost and
resource constraints
• Review use cases to identify those with the greatest
potential
August 17, 2016 60

Definition Of Use Cases
• Use the use case analysis to prioritise their
implementation based on a balanced view
• Use cases must be viewed within the context of campaign
management
• Use cases and their associated offers need to be
understood as a whole so there are no gaps or
inconsistencies
• You need to understand the impact of use cases on the
organisation in areas such as increased workload and
affect on revenue and margin
August 17, 2016 61

Use Cases And External Party Journey Stages
• Depending on the nature of the organisation and the type
of product/service supplied, external parties will interact
differently
− Once-off products
− Continuous services
• External party interactions will have a standard journey
through processes/functions and exceptions/deviations
from this “happy path”
• External party journey will differ depending on party type
and the type of product/service supplied
August 17, 2016 62

Core Processes
and Process
Competencies
Mapping Uses Cases To Internal Process Competencies
August 17, 2016 63
Business
Customer
Retail
Customer
Public
Service
Provider
Dealer
Sub-
Contractor
Agent
Regulator
Supplier
Use CaseUse Case Use Case
Use Case
Use Case
Use Case
Use Case
Use Case
Use Case

Mapping Uses Cases To Internal Process Competencies
August 17, 2016 64
External Interaction Paths – Experience Use Case/Journey
Organisational Operational
Process Competency Grouping

POA High Level Reference Architecture
August 17, 2016 65
Reference Data Manager
Enter and Maintain Organisation
and Process Reference Data
Process Creator and Mapper
Create and Maintain Definitions
of Operational and Cross-
Functional Journey Processes,
their Mappings and Their
Versions
Process Dashboard
Provide Role-Based
Administration and Management
Analysis and Reporting Access to
Inflight and Historical Processes
Process Manager/ Operator
Allow Processes to Be
Instantiated and Operated in
Response to Requests, Manage
Notifications, Alerts and
Escalations
Process Library and Explorer
Maintain Library of Versions of
Operational and Cross-Functional
Journey Processes and Provide
Role-Based Access
Process Data Collector
Collect and Maintain Information
on Instantiated Processes
Process Workbench
Provide Role-Based Access to
Participants in Inflight and
Historical Processes

POA High Level Reference Architecture
• View of what is required to implement and operate a
process oriented architecture and the operational
components
• This requires:
1. Structured approach to identifying, categorising and structuring
internal organisational operational process competency
groupings
2. Customer (external party) experiences journeys identification
and definition
3. Mapping of experiences journeys to internal operational
competencies
August 17, 2016 66

POA High Level Reference Architecture Components
August 17, 2016 67
Reference Data
Manager
Process Creator
and Mapper
Process
Dashboard
Process Manager/
Operator
Process Library
and Explorer
Process Data
Collector
Process
Workbench
Create Process
Definitions – Cross-
Functional and
Operational Mappings
Initiate Processes
Based On Triggers,
Allocate and Notify
Participants
1
2
Allow Processes to
be Viewed and
Worked on By
External and
Interval Participants
3
View Status of In Flight Processes
4
Collect Information on
Inflight Processes
5

Dual View Of Processes
August 17, 2016 68
Look For
Information/
Awareness
And
Interest
Generated
Look For
Details on
Specific
Product/
Service/
Offer
Receive,
Evaluate
Offer,
Negotiate
and
Compare
Decide To
Buy
Product/
Service
Pass
Enrolment,
Buy/
Subscribe
and
Receive
Product/
Service
Receive
and Pay
Usage
Statements
and Bills
Query
Usage
Statement
and Bill,
Pay Bill
Report
Fault/
Complaint
Upgrade/
Buy
Additional
Product/
Service/
Respond to
Offer
Renew,
Evaluate
Alternatives
and
Negotiate
Decide to
Leave/
Cancel
Service
Accept
Counteroffer
External View
Internal View
External Process
View Step
Internal Process
View Step

Process Oriented Architecture And Digital
Transformation
• The object of digital transformation is the extension of
internal processes to specific parties over specific channels
outside the organisation
• When you extend business processes outside the
organisation, you need to ensure cross-functional/cross-
capability operation
• External parties are not concerned with process limitations
caused by a siloed organisation not operating efficiently
• Process Oriented Architecture is a key enabler of
successful digital transformation
August 17, 2016 69

Summary
• A Process Oriented Architecture is a way of linking process areas to actual (desired)
interactions – customer (external interacting party) service journeys through the
organisation
• Allows two views of any process to be maintained and operated
− External view – that experienced by user
− Internal view – that worked on by the organisational competency
• There will always be two views of any process
• The complexity of internal organisational operational process competency groupings needs
to be masked from the customer (external party)
• There are discontinuities and disconnections between the natural interaction sequence and
the way the organisation responds to these interactions
• This leads to differences between customer (external party) expectations and what actually
happens
• Process Oriented Architecture links organisation competencies to these contact and
experience sequences and journeys
− Enables end-to-end view, across cross functional and operational areas
− It is the glue that bonds customer (external party) interaction sequences with operational processes and
structures
− Enables straight through processing
• Process Oriented Architecture is a key enabler of successful digital transformation
August 17, 2016 70

More Information
Alan McSweeney
http://ie.linkedin.com/in/alanmcsweeney
August 17, 2016 71

Process Oriented Architecture

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