A Multicriteria Model for Strategic Implementation of Business Process Management


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Ana Carolina Scanavachi Moreira Campos, Ana Paula Costa, Adiel Almeida, Daniela Calabria, A Multicriteria Model for Strategic Implementation of Business Process Management

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A Multicriteria Model for Strategic Implementation of Business Process Management

  1. 1. Ana Carolina S. M. Campos1, Ana Paula C. S. Costa 1, Adiel T. de Almeida1, Daniela G. Calabria2 1Department of Management Engineering, Federal University of Pernambuco, 2São Francisco Hidro Electric Company (Eletrobras Chesf), Recife, Brazil
  2. 2.  Many organizations are adopting BPM practices:  Enhance their performance;  Reduce costs; Create a competitive advantage!!! Many processes within an organization: difficult task to apply BPM concepts to all of them;
  3. 3.  Solution: list of critical processes (those that most urgently need to be improved and monitored) Advantages:  plan the implementation of BPM within his business unit;  implement BPM strategically;  manage his efforts and resources effectively .
  4. 4.  Problem: how to apply BPM concepts to all of business processes although organizations resources (money, time, and people) are scarce and limited? Propose of this paper: a model based on Multicriteria Decision Aid to help managers in his task of prioritizing business processes; Model: classify business processes into classes of strategic implementation of BPM and thus indicates which processes to tackle first;
  5. 5.  MCDA aims to support decision makers during a decision process; Tools to deal with multiple and conflicting objectives that occur frequently in most real- decision situations;
  6. 6.  Advantages of use MCDA in this problem:  several criteria related to the objectives that it wishes to attain by implementing BPM within a business unit to be taken into account simultaneously;  this methodology can resolve conflicts among criteria;  a solution is proposed takes the decision makers preference structure into account.
  7. 7.  Multicriteria method: ELECTRE TRI-B Why? Tackles a sorting problem; Outranking method (non-compensatory method): classify business processes based on their performance in all the criteria, and thus it avoids compensation among criteria; Not difficult to define the boundaries of classes for this problem;
  8. 8.  Allocates a set of alternatives (ai) to predefined ordered class by using outranking relations; Each class is limited by reference profiles (Irk); Irk - determined by decision maker;
  9. 9.  1º -> builds outranking relations S between each ai and Irk; 2º -> explores these relations in order to allocate each alternative to a particular class; The ELECTRE TRI-B method has 2 assignment procedures: pessimistic and optimistic; Pessimistic procedure is more demanding -> use it when it is desirable to be cautious.
  10. 10. A) Identify and B) List the objectives that thedefine all business organization wishes to attain processes by implementing BPM C) Evaluate Presence of an analyst is business suggested: help the manager processes structure the problem and quantify his preferences D) Apply multicriteria method F) Strategic E) Classification of planning for business processes implementing BPM
  11. 11.  The model was applied in the Information Technology Department of the São Francisco Hidro Electric Company (Eletrobras Chesf); Eletrobras Chesf is responsible for generating, transmitting and selling electricity in the Northeast of Brazil; Decision maker: manager responsible for applying the management concepts of business processes in the IT department;
  12. 12.  A) Processes: 37 business process; B) Objectives: 8;  The objectives that it wishes to attain by implementing BPM were established and well understood by the manager and the criteria for evaluating the IT business processes were defined based on those objectives.
  13. 13.  Objectives: 8A) Directly supports achieving the company’sstrategic objectives;B) Meets external requirements (e.g. compliance withlegal requirements, regulatory agencies, SOX,certifications such as ISO, OSHAS, adherence tomarket best practices/ITIL, COBIT);C) Incorporation of new technologies;D) Reduces business costs;E) Information security;F) Customer contact;G) Criticality of automation;H) Efficiency for the companys business.
  14. 14.  C) IT business processes evaluation against the criteria; D) Apply the multicriteria method:  Analyst elicited the manager’s preferences in order to define the parameters.;  The pessimistic procedure was used;  3 classes; E,F) Established for each class a different BPM implementation strategy:
  15. 15. Class Description Implementation Strategy of BPM Implementing the BPM initiative in the processes allocated to this class in the short The business Immediate processes allocated to term. Investing effort and resources in business processes allocated to this class in order toimplementation this class urgently improve their performance in terms of quality, need to be improved of BPM costs, flexibility and time. These processes are and monitored. the priority ones. Implementing the BPM initiative in the The business processes allocated to this class in the medium Medium-term processes allocated to term. Investing some effort and resources inimplementation this class need to be business processes allocated to this class in improved and order to improve their efficiency and of BPM monitored. effectiveness. There is no urgency Implementing the BPM initiative in the Long-term as to improving and processes allocated to this class in the long-implementation monitoring the term. Improving the performance of business business processes processes allocated to this class to the extent of BPM allocated to this class. possible. However, they are not priority ones.
  16. 16. Immediate • Processes: implementation of 1;2;4;5;7;8;9;12;15;16;18;22;24;27;31 BPM ;34;35;36;37 Medium-term • Processes: implementation of 3;6;13;14;17;19;20;21;23;26;28;29;30 BPM ;32;33 Long-term implementation of • Processes:10;11;25 BPM The manager should apply the BPM concepts, and consequently focus her efforts and resources on the business processes allocated to the class of “Immediate implementation of BPM”.
  17. 17.  The model is very helpful:  deal with many criteria simultaneously;  resolve conflicts among criteria;  consider and compare several business processes in the same decision-making process. Major advantages:  provide a simple and straightforward way of assessing business processes;  serves as a support to managers when making decisions;  enable manager to evaluate a business process using both qualitative and quantitative measures.
  18. 18.  Main disadvantage: ◦ all business process within an organization, or within a division of an organization which intends to apply BPM, have to be identified and described. This is a large and complex task! ◦ the ELECTRE TRI-B multicriteria method requires the manager to establish some parameters. Hence, we suggest the presence of an analyst in order to help the manager structure the problem and elicit his/her preferences.
  19. 19.  Investigations related to the use of this model by a group of managers need to be carried out in future studies.
  20. 20. Thank you for your attention! AcknowledgmentsThis study work received financial support fromCNPq* and CAPES** for which the authors aregrateful. *Brazilian National Research Council **Brazilian Government Agency that supports Higher Education Personnel seeking to enhance their academic qualifications