Customer presentation by Carlsberg at ProcessForum Nordic 2013.

1. Carlsberg
Supporting Carlsberg’s Strategy with BPM
and ARIS

2. Agenda
Introducing Carlsberg
Intro to BSP1
The overall BPM agenda
The Carlsberg Process Model
Next Steps and Lessons Learned
2

3. Founded in 1847 on a passion for beer,
science and art
1847 JC Jacobsen founds
the Carlsberg Brewery on a
hill outside of Copenhagen
1868 Carlsberg has
international ambitions from
the beginning and Exports it’s
first barrel of beer to Scotland
in 1868
JC Jacobsen has great ambitions for his brewery and to make sure his
beer is brewed to the highest scientific standards he establishes the
Carlsberg Laboratory.
1882 JC’s son Carl
Jacobsen builds his own
brewery next to his father’s
and calls it ”New Carlsberg”.
1904 The famous Carlsberg
logo is designet by architect
Thorvald Bindesbøll. This logo
is still used today.
Carl Jacobsen has a great passion for art and architecture and creates
many spectacular buildings for his brewery. One of these is the
impressive Elephant Gate welcoming visitors to his brewery.
3

4. We have grown through a number of
European acquisitions since 1999
From a local player in 1999…
… to a global brewer in 2012
4

5. Now with more than 500 different brands
5

6. Carlsberg strategy is to BE THE FASTEST GROWING
GLOBAL BEER COMPANY
Carlsberg launched a Business Standardisation Programme
(BSP1) as a key enabler in realising the Carlsberg Group
Strategy.
6

7. Agenda
Introducing Carlsberg
Intro to BSP1
The overall BPM agenda
The Carlsberg Process Model
Next Steps and Lessons Learned
7

8. BSP1 drives the implementation of…
• One common business process model - which allow us
to share best practices, exchange information, benchmark and
drive continuous improvement
• One common IT platform - which allow us to focus on
what’s important – responding to local market needs
• One integrated supply chain - which allows us to
leverage functional capabilities and benefit from our scale with
common and aligned Ways of working across the
organisation at all levels
BSP1 is not only an IT system implementation, it is a business transformation
programme to enable Carlsberg to achieve key business objectives
Page 8

9. Throughout Western Europe, including:
8
main areas will be standardised
19
countries +HQ & HQ central
functions will implement BSP1
450
people are currently working in BSP1
25+
nationalities are working in BSP1
600+
managers will be impacted by
BSP1
15.500+
employees will be impacted by
BSP1
9

10. Agenda
Introducing Carlsberg
Intro to BSP1
The overall BPM agenda
The Carlsberg Process Model
Next Steps and Lessons Learned
10

11. A Permanent Business Process & Information
Management (BP&I) organisation established to:
BP&I reasons:
1
Benefits:
BP&I
Level of
standardizatio
n
Business
as usual
BSP1
Maintain
consistency and
standardization
MARKET TO CASH
FORECAST TO DEPLOY
SOURCE TO PAY
SUPPORT PROCESSES
3
Global
• Achieve and maintain
economies of scale
Post-BSP1
IDEA TO
PROPOSITION
2
• Safeguard BSP1 investment
Local
Drive end-toend
improvement
Enable and
support a
Glocal approach
• Increase overall business
value of processes, master
data & business intelligence
• Gain cross-functional process
efficiency
• Enable efficient &
coordinated project
preparation
• Harvest global synergies in
local markets
11

12. The BP&I organisation is embedded in the BSP1
organisation
Steering Group
Change / HR
Programme
Management
PMO
Functional Boards
Technology
Solution
Architects
BP & I
Master Data
KPIs & Reports
Finance
Logistics
Production
Procurement
Integration Team
Planning
Delivery Team
Sales
Roll out
managers
12

13. The BP&I resources are responsible for the process life
cycle during and after the BSP1 implementation
New requirements to
be raised and linked to
L3 processes.
Processes are updated
by core teams where
needed
Plan and Analysis
Design
Process
monitoring
ELS
Build
Processes used as
input for test script
creation/update
Deploy
Test
Training to be
process based
Test execution and Training
material created / updated
based on processes
13

14. The Role of the BPM will switch from project
oriented to continuous improvement oriented
Maitenance and Continuous
Improvement activities
Roll-out activities
Wave 1
Wave 2
Wave 3
Wave 4
Wave 5
The role of the Business Process Manager will evolve in the same pace as the
BSP1 programme roll-out.
The main focus before the first wave go-live was to run the project and
coordinate functional resources
Once the majority of the countries have been roll-out on the standard platform
the BPM role will mainly be focused on continuous improvement
14

15. A Governance process has been designed to
approve changes to the standard solution
ExCom
• Defines Strategy & Policy setting
• Approves Functional strategies and targets
ExCom
Functional
Boards
Regions
Group functions, CSC
BP&I
• Verifies and approves business requirements
=> Go/no-go
• Ensures end-to-end process alignment
• Process Network communities
BP&I
Change
Request
Incident
CR resolution incl.
process, system
and end-to-end
impact analysis
Change
Advisory
Board
Solution
Expert
Board
Regions and Group Functions, CSC
• Defines Functional Strategies & targets
• Approves major change requests
IT
CIT
Service
Desk
IT
• Solution Architects ensures end-to-end application
landscape integration
• Responsible for incident management (tickets)
• Maintenance of IT infrastructure (technology)
15

16. The Functional boards will approve major change
request or new initiatives
ExCom
• Defines Strategy & Policy setting
• Approves Functional strategies and targets
ExCom
Functional
Boards
Regions
Group functions, CSC
Regions and Group Functions, CSC
• Defines Functional Strategies & targets
• Approves major change requests
Approves
change
BP&I
New Initiative
CR
resolution
CR incl. process,
system and end-toend impact analysis
Major Change
Request
Change
Advisory
Board
Solution
Expert
Board
IT
CIT
Service
Desk
BP&I
• Verifies and approves business requirements
=> Go/no-go
• Ensures end-to-end process alignment
• Process Network communities
IT
• Solution Architects ensures end-to-end application
landscape integration
• Responsible for incident management (tickets)
• Maintenance of IT infrastructure (technology)
16

17. Agenda
Introducing Carlsberg
Intro to BSP1
The overall BPM agenda
The Carlsberg Process Model
Next Steps and Lessons Learned
17

18. Carlsberg process hierarchy includes 5 levels
Level 1
E2E
Processes
•End-to-end process across functions
•Example: Market-to-cash
•Consists of several processes.
Level 2
Process
•Main process area. Typically function-specific,
and in some areas comparable with org.
departments. Example: Accounts Receivables
•Consists of several sub-processes
Level 3
Sub-Process
•Sub-process. The sub-process is a sequence of
related activities.
•Example: Goods Invoicing
•Consists of several activities
Level 4
Activity
•Activity. Activities are key steps within a Subprocess.
•Example: Printing Invoices
•An activity consists of several tasks
Level 5
Task / Transaction
•Task. The steps are specific user actions or
system transactions. A step contains the guide
for how to perform the task.
•Example: Send invoices to print
18

19. And they are aligned with SAP Solution
Manager documentation hierarchy
Level 1
Level 2
Level 3
Level 4
Level 5
End to End Process
Functional ownership
Main Process Area
(Business Scenarios)
Sub-process
(Business Processes)
Activity
(Process Step)
Tasks/Transactions
19

20. After several previous silo-oriented optimisation projects,
it was found essential to work with end-to-end processes
Why do we have our processes structured in End to End processes?
•
•
•
In order to switch the culture from a silo-oriented approach to a more end-to-end
integrated view
To facilitate process integration across functions
To secure processes are mapped only once
Processes have been divided in Main Processes that describe where
Carlsberg has its primary competitive advantage i.e.
•
•
•
•
Idea to Proposition
Market to Cash
Forecast to Deploy
Source to Pay
…and supporting processes which include all the back-office processes
such as:
•
•
•
Hire to Retire
Record to Report
Master Data Management
20

21. CARLSBERG BUSINESS PROCESS MODEL
Group Strategic Processes: Real Estate - Mergers & Acquisitions - Business Development
OUR BREWING PROCESSES
IDEA TO PROPOSITION
MARKET TO CASH
FORECAST TO DEPLOY
SOURCE TO PAY
HIRE TO RETIRE
KPI & REPORTING
MANAGEMENT
ASSET MANAGEMENT
RECORD TO REPORT
MASTER DATA MANAGEMENT
BUSINESS MANAGEMENT
GROUP SUPPORTING
PROCESSES
IT PROCESSES
BUSINESS PROCESS
MANAGEMENT

22. E2E thinking
400m sprint world record for men: 43.18 sec
4x100m relay for men: 37.40 sec
Name of presentation - DD MM YYYY – Month/Day/Year

23. Before designing the IT platform, we designed the
processes model together with the business
3. Identification of Best
Practice Countries based on
the Process List validation,
Week
Countries
9
PL
10
11
CH
12
13
UK
workshops
5. To-Be design
+
Local Finance
Local Finance
department
department
PTP-030-020-040 Contract compliance on price
Creditnote/new
settlement invoice
Yes
Group Procurement
Group Procurement
2. Validation of the Process List
per function
by Core Team, HQ, and
selected Countries
4. AS-IS + Country
/reference visits
Supplier
performance
Price compliance
report in BW
Compliance report
on supplier
Analysis of report
Category
evaluation
Is the price
explanation
accepted?
Is there a match
between invoicedl
price vs.contract
price?
Final evaluation of
supplier
Category
evaluation report
Yes
Information to
compliance report
No
Yes
Sending creditnote
No
Supplier
Supplier
1. Identification of Carlsberg
processes based on
external and internal
input a Process List is
generated
Explanation on
deviation
Conlcusion of
deviation cause
Did we pay to
much for the
product?
No
Settlement invoice
6. Integration workshops to
finalize Processes,
Master Data and
reporting requirements.
23

24. The Process Documentation Tool has also evolved
during the BSP1 Programme
4
Once the foundation of the model was
established it was decided to buy a more
advanced tool to link Business and IT.
4
3
2
1
Microsoft
Local Finance
Local Finance
department
department
PTP-030-020-040 Contract compliance on price
Creditnote/new
settlement invoice
Group Procurement
Group Procurement
Yes
Supplier
performance
Price compliance
report in BW
Compliance report
on supplier
Analysis of report
Category
evaluation
Is the price
explanation
accepted?
Is there a match
between invoicedl
price vs.contract
price?
ARIS BPMN
ARIS EPC
IPPM
2
Deloitte’s IPPM was used to create a more
integrated process model and to have all
information one place.
Final evaluation of
supplier
Category
evaluation report
Yes
Information to
compliance report
No
Yes
Sending creditnote
No
Supplier
Supplier
3
After more than one year working with EPC
it was decided to change to BPMN to gain
more acceptance from the end users
Explanation on
deviation
Conlcusion of
deviation cause
Did we pay to
much for the
product?
No
Settlement invoice
1
Used Visio for process flows, Word for linking processes to
roles, systems and data and Excel to administrate the whole
process structure
24

25. A process example at the lowest level shows
events, information and business rules
25

26. Besides Processes we are also documenting
Master Data, KPI, Reports, IT and Controls
Master Data
KPIs & Reports
Business Processes
Roles & Authorisations
IT Architecture
Internal Controls
26

27. KPIs are deployed down ensuring employees can
see their work in a strategic context
Before:
• Multiple versions of same reports, multiple
versions of KPI calculations
• No single version of the truth, No
transparency
Supply
Chain
Targets
After
•
The portal is a “one-stop shop” for all
reporting needs
•
Standardised reports can be used as a point
of departure for the user to customise into
their own or country- specific report
•
Various tools available to give flexibility, e.g.:
•
Personal and global variants
•
Analyser queries
•
Query designer
•
Personal favourites and country folder
27

28. Agenda
Introducing Carlsberg
Intro to BSP1
The overall BPM agenda
The Carlsberg Process Model
Next Steps and Lessons Learned
28

29. The most significant challenges
In the programme:
• Process thinking
• Understanding of ARIS
• Mapping discipline
• Understanding why processes are still important after the
design phase
• Resource constraints
With ARIS:
• End user acceptance:
–
End users were reluctant to use / understand EPCs
–
Business Publisher is not very user friendly
• SAP synchronization:
–
Has been learning by doing – both in regards to the actual use
of Solution Manager and in regards to the benefits it gives.
29

30. Next Steps
End-user facing:
•
Develop scenario models for ”tricky” scenarios
•
Include more background information, i.e. policies, templates
•
Improve Business Publisher/Replace by own portal?
BP&I & IT facing:
•
Mapping Requirements to processes
•
Upgrade ARIS
30

31. Lessons Learned
• More business process instruction rather than system instruction
• Processes as part of test and training in all areas
• Cannot take one area only. It is all connected:
–
Processes
–
Master Data
–
Reporting
–
System
–
Organisation
Specially when combined with a system implementation – DON’T focus only on the system supported
processes and/or functionalities
• Once documented, it is a strong tool when introducing new initiatives
These are the lessons learned from the first golives but and we are still learning…
31

32. Any Questions?
TM
32