Impact of Process Maturity on Business Performance - Impact analysis of Business Process Maturity on organizational performance of telecom companies

> Study Impact of Process Maturity on Business Performance Impact analysis of Business Process Maturity on organizational performance of telecom companies • 2008 / 9 www.detecon.com This publication or parts there of may only be reproduced or copied with the prior written permission of the publishers. Published by Detecon International GmbH Frankfurter Straße 27, D-65760 Eschborn www.detecon.com Impact of Process Maturity on Business Performance Study < Table of Contents List of Figures 2 Executive Summary 3 1. Introduction – Reason for This study 5 1.1 Study Objectives 5 1.2 Study Scope 5 1.3 Hypothesis 8 2. Process Maturity Measurement Model 9 2.1 Process and Enterprise Maturity Model (PEMM) 9 2.2 Maturity Scoring Model 11 3. Company Selection and Methodology 13 3.1 Segmentation of Companies 13 3.2 Methodology 14 4. Key Findings about Organizational Maturity 15 4.1 Findings across the Regulated Segment 15 4.2 Findings across Companies in the Deregulated and Low Economy Segment 16 4.3 Findings across Companies in the Deregulated and Medium Economy Segment 18 4.4 Findings across Companies in the Deregulated and High Economy Segment 20 4.5 Findings for Process Maturity across Segments 21 4.6 Findings for Enterprise Maturity across Segments 23 5. Key Findings about Organizational Maturity and Performance 24 5.1 Methodology regarding performance findings 24 5.2 Process Maturity, ROE, ROA and ROI 25 5.2.1 The Higher the Overall Process Maturity, the Greater the ROE, ROA and ROI 26 5.2.2 The Higher the Customer Centric Processes Maturity, the Greater the ROE, ROA and ROI 29 5.2.3 The Higher the Network Processes Maturity, the Greater the ROE, ROA and ROI 31 5.2.4 The Higher the PLM Processes Maturity, the Greater the ROA and ROI 34 5.2.5 The Higher the Enterprise Maturity, the Greater the ROE, ROA and ROI 36 5.2.6 The Higher the Enterprise Culture Maturity, the Greater the ROE, ROA and ROI 38 5.2.7 The Higher the Enterprise Process Expertise, the Greater the ROE, ROA and ROI 40 5.2.8 The Higher the Enterprise Governance, the Greater the ROE, ROA and ROI 42 Bibliography 44 Glossary 45 Footnotes 50 Abbreviations 51 The Authors 52 The Company 54 © Detecon International GmbH 1 > Study Impact of Process Maturity on Business Performance List of Figures Figure 1: Process Model 6 Figure 2: Process Domain Overview 6 Figure 3: Customer Centric Processes 7 Figure 4: Network Domain Processes 7 Figure 5: Product Lifecycle Management Processes 8 Figure 6: PEMM Visualization 9 Figure 7: Process Maturity Aggregation Levels 12 Figure 8: Enterprise Maturity Aggregation Levels 12 Figure 9: Companies Segmentation Criterion 13 Figure 10: Company Segments 14 Figure 11: Process Area Maturity of Companies in the Regulated Segment 15 Figure 12: Enterprise Maturity Comparison of Companies in the Regulated Segment 16 Figure 13: Process Maturity of Companies in the Deregulated & Low Economy Segment 17 Figure 14: Enterprise Maturity Comparison of Companies in the Deregulated & Low Economy Segment 18 Figure 15: Process Area Maturity of Companies in the Deregulated & Medium Economy Segment 18 Figure 16: Enterprise Maturity Comparison of Companies in the Deregulated & Medium Economy Segment 19 Figure 17: Process Area Maturity of Companies in the Deregulated & High Economy Segment 20 Figure 18: Enterprise Maturity Comparison of Companies in the Deregulated & High Economy Segment 21 Figure 19: Process Area Maturity Comparison across Segments 21 Figure 20: Process Enablers Maturity Comparison across Segments 22 Figure 21: Enterprise Maturity Comparison across Segments 23 Figure 22: Methodology for Key Findings 24 Figure 23: Correlation between Overall Process Maturity and ROE 26 Figure 24: Correlation between Overall Process Maturity and ROA 26 Figure 25: Correlation between Overall Process Maturity and ROI 27 Figure 26: Correlation between Customer Centric Processes and ROE 29 Figure 27: Correlation between Customer Centric Processes and ROA 29 Figure 28: Correlation between Customer Centric Processes and ROI 30 Figure 29: Correlation between Network Processes and ROE 31 Figure 30: Correlation between Network Processes and ROA 32 Figure 31: Correlation between Network Processes and ROI 32 Figure 32: Correlation between Product Lifecycle Management Processes and ROA 34 Figure 33: Correlation between Product Lifecycle Management Processes and ROI 34 Figure 34: Correlation between Enterprise Maturity and ROE 36 Figure 35: Correlation between Enterprise Maturity and ROA 36 Figure 36: Correlation between Enterprise Maturity and ROI 37 Figure 37: Correlation between Enterprise Culture and ROE 38 Figure 38: Correlation between Enterprise Culture and ROA 38 Figure 39: Correlation between Enterprise Culture and ROI 39 Figure 40: Correlation between Enterprise Expertise and ROE 40 Figure 41: Correlation between Enterprise Expertise and ROA 40 Figure 42: Correlation between Enterprise Expertise and ROI 41 Figure 43: Correlation between Enterprise Governance and ROE 42 Figure 44: Correlation between Enterprise Governance and ROA 42 Figure 45: Correlation between Enterprise Governance and ROI 43 2 © Detecon International GmbH Impact of Process Maturity on Business Performance Study < Executive Summary This study analyzes the impact process maturity of an organization has on its performance.