“ BPM is going to be the dominant management discipline in the 21 st Century and is already the way that leading companies manage their businesses as a management discipline.”
“ The convergence of BPM and the continually increasing capabilities of BPM software enable organizations to manage and execute change in an increasingly hypercompetitive environment – to adapt, thrive and survive.”
“ Executives need to organize and manage, not only the cost chain, but also everything else – including strategy and product planning – as one economic whole, regardless of the legal boundaries of individual companies.”
“ This is a shift from cost-led pricing to pricing-led costing .”
Peter Drucker – Management Challenges of the 21st Century.
This change is from forecast-driven inventory style systems to responsive, flexible and demand-driven mass customization, globally.
Service Oriented Architecture (SOA) is a way of executing BPM more efficienty and effectively
SOA provides the architecture to provision how processes exchange data in a flexible manner across business processes, both in the company and between collaborating companies (supply chains)…following the value chain more closely.
SOA unifies business processes by structuring large applications as an ad-hoc collection of smaller modules called services.
XML has been used extensively in SOA to create data which is wrapped in neat descriptive containers.
The services are described by Web Service Description Language (WSDL) and SOAP a protocol for exchanging XML based messages over the internet using HTTP/HTTPS.
The goal of SOA is to allow programs or applications to be strung together to form new ad-hoc applications which are built almost entirely from existing software services.
WS-BEL – Web Services Business Execution Language (serialized XML) – processes in WS-BEL exclusively import and export functionality by using web interfaces.
Software reuse is one goal without reconfiguring the existing application – So this is systems integration in a totally different manner than the 1980s and 1990s ERP methods which often required the company to change its processes to fit in with the ERP environments.
New Rules for the Process-Managed Enterprise Howard Smith and Peter Fingar (BPM-the Third Wave) 2003 Processes can monitor themselves Process metrics and process lifecycle Processes have to be changed in order to reduce the manual checking required of accountants, auditors and supervisors 7 Processes can be as complex as they need to be, yet still be manageable Process participants Process must be kept simple in order to be manageable 6 Companies build on and transform what exists Process discovery, introspection and projection combined with application componentization Companies have to start over 5 Firms are free to innovate because collaboration rests on a standard representation for processes, not on standard processes Business process modeling languages Collaboration requires standard approaches 4 Processes can be as easily managed in a federated environment as a centralized one Distributed process execution and end-to-end processes Executing a process means locating it in one place and under centralized control 3 Processes are fluid, dynamic, amoebic and adaptable Process Calculus Processes are rigid scripts, focused mainly on the inputs and outputs of discrete steps 2 All forms of work can be described and managed by a single system Process Desktop Process-based clerical work and practice-based skilled work are different 1 New Rule Disruption Old Rule Item
New Rules for the Process-Managed Enterprise Howard Smith and Peter Fingar (BPM-the Third Wave) 2003 Continuous process improvement across many processes Process management system No team can reengineer more than one process at once 14 Not all radical changes require radical changes to IT systems or organization Process deployment and execution Radical change takes a long time to implement 13 Process management is a precise science Process calculus Process innovation is an art form, with uncertainties and ambiguities 12 Process management vanishes becoming a part of everybody’s job Process portal Companies need a large, dedicated, long-standing reengineering team 11 Replacement of organizational change with technological implementation Computer-aided process engineering Radical change is painful and disruptive 10 Processes evolve in fits and starts, sometimes incrementally and sometimes radically, but always non-disruptively Process analysis and transformation Incremental process improvements produce minor gains 9 There are no discontinuities Lifetime process lifecycle management A choice must be made between incremental process improvement, and radical engineering 8 NEW RULE DISRUPTION OLD RULE ITEM
New Rules for the Process-Managed Enterprise Howard Smith and Peter Fingar (BPM-the Third Wave) 2003 Processes as coaches Process training built into process designs Every process team needs a human coach 21 Processes measure themselves and tell you where they are Process metrics It takes work to have to find out where you are in a given process 20 As many designers as required can be involved, deep within the business Shared process repository Processes can be designed only by the process team 19 Everyone that needs to be involved in the process improvement can be involved Collaborative process analysis There must be a single process owner 18 Change-making is part of everyone’s job Collaborative process design and closed loop process optimization Managers make all process design changes 17 Insights for process streamlining and process re-design arise naturally in the business, and are readily accepted by those affected Process intranet Reengineering never happens from the bottom-up 16 There is no distinction – circumstances govern the approach you take. Process models developed quite independently can be easily combined. Integrated process model Radical change is top-down and continuous changes is bottom-up 15
New Rules for the Process-Managed Enterprise Howard Smith and Peter Fingar (BPM-the Third Wave) 2003 Organizations are more complex than they think Process discovery A company has no more than ten to twenty processes of interest to process engineers 28 Any process can be reused to construct or constrain the design of hundreds, even thousands of variants Process customization and process patterns Design processes so that only a small number of variants are needed 27 Tradition is everything, and must be built upon. Those who fail to learn from the past are condemned to repeat it Process discovery Tradition counts for nothing 26 Value analysis, process analysis, quality management and costing are combined into one analysis Process modeling methodology Don’t bury reengineering in the middle of the corporate agenda 25 Everyone and every system can be involved without degradation of automation or efficiency through manual hand-offs End-to-end processes, process data correlation, distributed process execution As few people as possible should be involved in the execution of a process 24 Any process can be modeled and executed; it may have nothing to do with IT Process virtual machine The only feasible processes are those supported by the existing IT systems 23 Plans are processes, guiding the enterprise in real time Process modeling language Plans get revised only periodically 22 NEW RULE DISRUPTION OLD RULE ITEM
New Rules for the Process-Managed Enterprise Howard Smith and Peter Fingar (BPM-the Third Wave) 2003 Processes can change themselves within limits set by process design Capability passing, external process participants, business rules Processes change only when people change them 34 Technology implements the process (drives the pistons; orchestrates the cogs) Third wave Technology only participates in the process (as cogs in an engine) 33 Manage processes as intellectual property and derive what is required for execution automatically Enterprise process model Divide overly complex processes into smaller number of simpler processes 32 Coordination of independent activities is built into new processes Collaborative processes Work must be structured so that suppliers and customers can plan and schedule their respective activities independently 31 Strong processes are those that include all required participants who can freely and efficiently exchange and re-process all required information Process data Processes must be designed to eliminate excessive information exchange and data redundancy 30 Process improvement is built into the methodology; pain points emerge naturally Process optimization, analysis and transformation The processes to be improved must be carefully selected and prioritized 29
New Rules for the Process-Managed Enterprise Howard Smith and Peter Fingar (BPM-the Third Wave) 2003 Process owners design and deploy their own processes, obliterating, not bridging, the business IT divide Third wave BPM There is a divide between “business” and “IT” 37 Process management knows no organizational boundaries Process interface definition language and end-to-end processes Changing processes across organizational boundaries is virtually impossible 36 Just-in-time, single-purpose, throw-away processes are all possible and useful and reflect the way business is really done – experimentally and systematically Real-time process manufacturing; the real-time enterprise Processes take a long time to design 35