Russia's Experience in BPM System Implementation

The BPM system (abbreviation for the business process management) is a company management mechanism where all business processes are considered as resources.

Since 2017, the contest BPM Project Of The Year has been held with the support of Skolkovo Foundation IT cluster and the Analytical Center under the Government of the Russian Federation. Commercial, non-profit, state and municipal organizations from Russia and the EAEU countries are invited to participate in the competition.

The source of the information posted on this page: the official website of the contest BPM Project Of The Year.

With the Implemented BPM, Tatneft Managed to Automate 700 IT Services

EXPERIENCE OF BPM SYSTEM IMPLEMENTATION IN
PRODUCTION

About the Group

Tatneft Group is a major vertically integrated Russian oil company involved in treatment and refining of associated petroleum gas and petrochemicals. It has a geographically distributed structure.

The main activity of the group is supported by the Business Service Center LLC (abbr. BSC) – a multifunctional structural unit providing support (IT, personnel, accounting and other), as well as other industry-specific services.
rus: Опыт внедрения BPM-систем в сфере производства | kt.team

Challenges Facing the Group

1. Low speed and quality of services provided.
There was no regulation regarding the communication between costomers and service providers. Employees applied at the BSC via a variety of unrelated channels, which is why the appeals could get confusing and less detailed, and the speed and efficiency of service provision decreased.

2. The lack of a request processing system.
Some of the requests were processed in the customer's SAP Solution Manager, and others – in the HP OpenView Service Desk of a third-party service provider. There was no central system.

3. Unsettled business processes.
There was no service catalog, all SLAs were performed according to different methodologies. The percentage of unresolved appeals was high due to the lack of opportunity to track at what stage teh challenges appeared and who was responsible for that.

4. Lack of automation.
The BSC business processes were not automated, the quality assessment was performed manually, and the quality indicators of the services provided were not estimated.
Objective of BPM system implementation project: business process automation at the BSC departments.

Main objectives

    • Perform the IT business process reengineering: managing requests, configurations, changes, access and service level.
    • Create and regulate the work of a multi-channel customer service to register and route requests to internal and external service providers on a single service platform.
    • Consolidate the catalog of IT services and standardize the SLA.
    • Develop and ensure the use of a business process classifier with the appointment of business process owners.
    • Automate the collection of analytical information for managers of the IT center and the business trip center. Formalize the business process for business trip registration.
    • Integrate the BPM system into the corporate information environment and automate business processes.

    Solution

    A technological service platform has been created that allows processing requests by various types of services (except for business trip registration service) using a universal algorithm. The process provides customers with a single interface for accessing services and a single procedure for confirming and evaluating the quality of their implementation.

    The solution allows including both internal and external service providers in the business process in a transparent manner. The access to appeals is distributed in accordance with the concluded SLA.
    rus: Опыт внедрения BPM-систем в сфере производства | kt.team

    Result

    90
    SLA developed.
    700
    IT-services automated.
    32%
    reduction in the time of appeal processing
    4,8/5
    overall employee satisfaction with the BPM system implementation

    With the Help of BPM, HSE Has Increased the Applications Processing Rate to 2500 per Week

    BPM SYSTEM USE IN THE PUBLIC SECTOR

    About the University

    National Research University Higher School of Economics (abbr. HSE) is one of major universities in Russia. It was established in 1992. The HSE is located in Moscow, and has campuses in St. Petersburg, Nizhny Novgorod and Perm.

    Currently, the HSE's educational process, administrative services and scientific activities are managed electronically.
    rus: Применение BPM-системы в госсекторе | kt.team

    Challenges Facing HSE

      1. Teachers and researchers did not understand the rules of operating administrative services, the administrative services themselves were not connected, and much time and effort was wasted on paperwork.

      2. Service providers worked under constant time pressure, did not fix business processes, and wasted much time on regular tasks.

      3. Line managers of service providers could not change business processes, the work in progress could not be redistributed.
        Heads of administrative units noted the lack of specific characteristics of business processes and the lack of objective information about the business process quality. At the same time, employees' high occupation with current operational issues remained.

        Assigned business tasks:

          • Develop a unique ecosystem of data services for users of all categories: students, teachers, researchers, administrative staff, conference participants, applicants and graduates.
          • Create a User Account with an up-to-date design and service layout, so that the end users can easily find the necessary services and make collections of the popular and relevant services.
          • Reduce the number of similar (from the users' perspective) services. Unify automated information processing processes at the level of a single User Account.

            Solution

            The process automation was implemented using a BPM system. To the great extent, the project was implemented due to the use of Agile approaches adapted to the specifics of the university's activities and the use of DevOps technologies. The management by objectives was used for the organizational purposes (MBO).
            rus: Применение BPM-системы в госсекторе | kt.team

            Results

            more than 95%
            of employees use the BPM system.
            77%
            of employees are satisfied with the system.
            2500
            applications are submitted via the BPM system weekly.

            AK BARS Bank Has Reduced the Cost of Documents Approving by 60%

            BPM SYSTEM IMPLEMENTATION IN THE SERVICE SECTOR

            About the Company

            Joint-stock commercial Bank AK BARS has 5 branches in major Russia's cities, 136 additional offices, 12 operational cash desks, and 80 operational offices.

            The Bank has all types of banking licenses provided for in the Russian Federation and provides services to both corporate clients and individuals: loan services, attracting deposit funds, issuing and servicing bank cards, cash management services.
            The project aim was to create a system of tools that allow managing the bank's activities on the strategic, tactic and operational levels.

            Assigned business tasks:

              1. To decompose the bank's strategic aims to the level of exact business processes.
              2. To assign the persons responsible for activities and business processes; develop a classifier of business processes for the bank.
              3. To review the architecture of the bank's internal documents with regard to the process approach: connect the architecture of internal regulatory documents with the business processes.
              4. To organize training to increase the involvement of bank employees, who do not work in the BPM office, in the process management
              5. To develop a methodology for assessing the cost of bank's business processes, to develop and implement a system of key performance indicators for the main business processes.

                Solution

                While working on the AK BARS development plans for 2019, a ground-breaking approach of a cascading strategy to the actual business process executors has been applied at the bank.
                  • The bank's strategic aims have been decomposed into business processes.
                  • The internal documentation management system has been developed.
                  • Methods for calculating business process costs have been developed and implemented.
                  • A business process classifier with the appointment of business process owners has been developed and implemented.
                  • The concept of business process management was approved, establishing general approaches to process management, as well as the rights and obligations of owners of end-to-end business processes and process stages.
                  • A modular program to teach process management to employees has been developed. Training is performed on a regular basis.
                  rus: Внедрение BPM-систем в сфере услуг | kt.team

                  Result

                  25 sec.
                  the time of document generation.
                  60%
                  reduction in the costs of documents approving.
                  More than 600
                  employees were trained to work with the BPM system.

                  After BPM System Implementation,
                  Enikom Nevada Group
                  Has Reduced Costs by 24.53%

                  BPM SYSTEM USE IN THE B2B SPHERE

                  About the Company

                  The Nevada Group Company Group is a distributor of the world's leading FMCG brands in the Far East, has been operating in the Far Eastern food market since 1994. That's when the company's started developing the distribution branch – the Enikom Nevada Group company.

                  Enikom Nevada Group works with such major manufacturers as Unilever, Mondelez International, Royal Canin, Kellogg's, Wrigley, PepsiCo, Ferrero, Nutricia, and many others.

                  Challenges Facing the Company

                  1. The processes in the regional centers and affiliates were not standardized. A large number of departments with their own approaches to work, delayed communications. The processes were not coordinated, providing fewer opportunities for measurements, changes, and monitoring.

                  2. There was no structure of the stock movement
                  that entailed significant accompanying costs.

                  3. Poor quality service in the Primorsky regional center
                  jeopardized the company's reputation at risk of losing contracts with customers.

                  4. Major expenses for records management.
                  The functionality was performed in bits and pieces in different organization's departments (logistics department, sales department). The documentation flow management processes were not standardized.
                  The purpose of the project for BPM system implementation: optimize the Stock Movement business process.

                  Assigned business tasks:

                    • Optimize all sub-processes of the target business process up to the operations level. Identify the owners and participants of business processes, distributing their responsibility areas
                    • Introduce metrics, indicators, and tools to evaluate the level of service.
                    • Identify existing / potential risks and optimize them.
                    • Centralize and optimize the work of coordination departments.
                    • Change the business processes at the Primorsky regional center: reinforce the monitoring, reduce costs and improve the service quality.

                    Solution

                    The project for optimization of the Stock Movement business process is the first stage of another strategic project of the Enikom Nevada Group: Quality Management System Implementation and the Optimization of Business Processes at the Company.

                    At the first project stage, the main, auxiliary and managerial business processes were defined and described, a map of subprocesses was developed, the stock management process was completely changed. Now, instead of manual calculations, the specialists apply mathematical and statistical methods of the stock management theory. The forecasting and calculation of purchase requirements are automated.

                    Result

                    2.48 times
                    faster cargo picking
                    24.53%
                    cost reduction
                    68,4 mln rub.
                    the annual economic effect of project implementation.

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                    en: Sergey Vlaznev Sales Manager | kt.team
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