Once you have conducted both a process impact and maturity assessment, you know which processes are most impactful to your business strategy and which of those have the largest improvement opportunities. These processes can be improved through appropriate projects which we refer to as “value packages”. A value package breaks up your initiative into manageable, in most cases 3-6 months long projects with clear definition of their impact on business processes. A value package can touch one or more business processes. It is defined through a description of process-related activities, anticipated outcomes, business value, as well as timing, resources, and estimated effort required (Kirchmer, 2017). Figure 6 provides a sample value package definition.
Figure 6: Value Package Excerpt from a Recent Digital Transformation Project
Value packages can be segmented into two types: core and enabling. Core value packages are those which deliver direct improvements of business processes. Enabler value packages are projects which support the process performance indirectly, such as building necessary process management capabilities or cleaning up data. Integrating the execution of core and enabling value packages allows to achieve business benefits while building the required lasting process management capabilities (Franz, Kirchmer, 2012). These capabilities might, for example, support a digital transformation by developing new or modified process management capabilities focused on process-level specifics while digitalising processes (Kerpedzhiev, e.a. 2020).
Creating value packages enables you to decompose a large digital transformation initiative into several small initiatives. This allows to effectively manage the strategy execution and prioritise delivery of the package with the greatest value for the business strategy. This helps to achieve fast value while moving towards your business goals.
Value-packages are in most cases defined based on the process impact assessment, other improvement initiatives or monitoring activities, such as process mining. Existing project are captured at the beginning or the prioritisation activities.
Figure 7 provides an overview over a business’s value packages, indicating how many value packages touch each business processes. This type of an overview allows to see if the defined projects are aligned with the strategy. We can leverage this as a basis to identify which projects to stop or review, and in what process area a new initiative may need to be launched. If many projects address low impact process, it could be necessary to revise the scope of some of those initiatives or even stop projects. High impact, low maturity processes with no or very few active projects may require the definition of new initiatives. A focused analysis of the specific projects and the impact of the processes they touch guides such decisions.
Figure 7: Identifying Impact of Value Packages on Process Areas
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