Introduction to Business Processes - Part I
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Introduction to Business Processes - Part I

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Lecture on Business Processes

Lecture on Business Processes

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Introduction to Business Processes - Part I Introduction to Business Processes - Part I Presentation Transcript

  • Introduction
to
Business
Processes
–
Part
I
Learning
How
to
Develop,
Manage
&
Improve
Business
Processes

  • Outline
  Introduction
&
Context
of
Business
Process
Management
  Business
Process
Management
Overview
  Process
Modeling
  Process
Analysis
  Process
Design
  Process
Performance
Management
  Process
Transformation
  Process
Management
Organization
  Enterprise
Process
Management
  Business
Process
Management
Technologies

  • Introduction
&
Context
of

 Business
Process
Management
What
Drives
An
Organization
to
Change
The
Way
It
Does
Business

  • Lessons
Learned
From
Large
Process
Implementations
 Avoid
big‐bang
implementations
Identify
and
capture
proof
of
benefits
and
saving
 Enforce
changes
more
effectively
 Greater
employees
involvement
 Increase
investment
in
training
Outsource
Project
Management
to
a
Third
Party
 Implementation
of
a
MIS
 Understanding
the
subject
area
 Align
to
company
goals
 More
attention
to
process
optimization
 0%
 10%
 20%
 30%
 40%
 50%
 60%
 70%
 80%
 90%

  • Key
Drivers
For
Business
Process
Management
  Save
Money
–
Do
things
better
with
optimized
processes
   Build
better
new
processes
faster
   Know
what
you
are
doing
(right
or
wrong)
through
current
process
 understanding
   Get
control
of
parallel
processes
by
consolidating
core
processes
   Get
non‐value
added
work
through
automation
of
manual
processes
   Business
Process
Outsourcing
  Implement
large
software
systems
better
(ERPs)
  Stay
ahead
of
compliance
  Move
faster
through
scenario
building
for
agility
and
policy
 management

  • Benefits
of
Business
Process
Management
 Reduced
Process
Costs
 10
–
15%
 Increased
Quality/Reduced
Number
of
Errors
 20
–
30%
 Reduced
Process
Throughput
Times
 10
–
30%
 Reduced
Training
Time/Expenses
 10
–
30%
 Reduced
Number
of
(Internal)
Support
Requests
 15
–
30%
 Reduced
Number
of
Customer
Complaints
 20
–
30%
 Increased
Forecast
Accuracy
 15
–
30%

  • How
Do
Organizations
Improve?
  Major
change
must
start
at
the
top
  Everyone
must
be
involved
  Effective
change
requires
a
goal
and
knowledge
of
the
 current
process
  Change
is
continuous
  Change
will
not
be
retained
without
effort
and
periodic
 reinforcement
  Improvement
is
continuous

  • Symptoms
of
Poor
Business
Process
Design
&
Management
  No
standard
process/method
for
addressing
how
to
define
 business
requirements
and
when
to
improve
business
 processes
  When
automation
of
processes
is
commissioned,
“Business”
 says
that
they
do
not
always
get
what
they
think
they
have
 asked
for
  The
processes
used
to
document
and
communicate
business
 processes
and
requirements
are
neither
easy
or
documented
  Our
business
programs
frequently
exist
in
a
culture
of
reacting
 to
cross‐functional
problems/emergencies
  IT
has
responsibility
for
creating
and
maintaining
business
 process
flows,
business
requirements
and
business
rules

  • Common
Problems
to
Business
Process
Management
&
Design
  Lack
of
an
integrated
process
for
capturing
the
business
 domain
  Techniques
that
are
used
are
not
consistently
applied
  We
cannot/do
not
differentiate
key
stakeholders’
views
 and
different
business
views
  We
are
working
without
a
common
language
across
 business,
IT
and
other
partners/vendors
  Inadequate
root
cause
level
business
process
analysis
 yields
inadequate
business
requirements
and
rules
to
 facilitate
process
optimization/automation

  • Finding
the
Right
Project
  The
process
or
project
is
related
to
a
key
business
issue
  You
have/can
get
customer
input
on
the
issue
  Management
assigns
this
project
a
high
priority
  Process
owner
and
key
stakeholders
are
defined
  The
problem
is
stated
as
a
target
or
need
and
NOT
a
solution
  The
sponsor
of
this
project
can
commit
time
and
resources
to
 the
project
  The
business
process(es)
will
not
be
changed
by
another
 initiative
at
any
time
in
the
near
future
  Focus
on
what
is
most
critical
and
what
contributes
the
most
  Ensure
the
benefits
of
an
improvement
project
do
not
 degrade
over
time

  • Critical
Success
Factors
  Linked
to
business
strategies
and
goals
  Linked
to
customer
value
  Ability
to
implement
incremental
value
added
change
  Ability
to
track
results
and
measure
success
  Ability
to
be
aligned
with
the
business

  • What
Do
Successful
Projects
Have
  Understood
the
Business
Architecture
–
Business
 Process,
Metrics,
Strategy
and
Goals
  Engaged
stakeholders
and
defined
process
ownership
  Taken
an
iterative
and
incremental
approach
  Tackled
the
right
project
at
the
right
time
  Implemented
internal,
external
standards
and
the
right
 level
of
governance
  Understood
the
role
of
information
  Incorporated
process
improvement
  Achieve
business
results
with
a
series
of
small
successes


  • Do
Not
Ignore
Organizational
Change
  The
failure
to
manage
the
human
side
of
business
 changes
is
the
major
contributor
to
the
reasons
 programs,
projects
and
initiatives
fail
  Organizations
may
not
have
the
experience
necessary
to
 manage
the
speed
and
complexity
of
the
large‐scale
 changes
  Managers
are
all
to
frequently
concerned
with
tactical,
 operational
issues
and
have
not
had
time
to
consider
 organizational
changes

  • Process
Analysis
within
Service
Orientations
  Process
Driven
Integration
   Services
Based
Integration
   Cut
integration
costs
and
reduce
development
  New
Business
Initiatives
   Agility
&
Growth
–
New
Products
and
Services
   Increased
Delivery
Channels
  Process
Improvement
   Optimizing
business
processes
   Straight
Through
Processing
  IT
Regeneration
   Enterprise
IT
Architecture
–
Aligning
more
with
the
Business
   Legacy
Replacement
  Extending
the
Enterprise
   Partnering
and
B2B

  • Intelligent
Use
of
BPM
  Prioritize
Intelligent
Cuts
to
Reduce
Overall
Operational
 Expenses
  Process
Optimization
   Strong
BPM
teams
can
quickly
examine
processes
and
 suggest
changes
to
eliminate
waste
   Good
BPM
teams
can
almost
always
identify
some
quick
 changes
that
will
save
10
–
30%
  Reorganizations
   Changes
in
status
also
require
that
new
processes
and
 business
rules
be
implemented
throughout
the
organization
  Additional
Regulation
   New
regulations
require
new
practices
and
new
business
rules

  • How
BPM
Fits
Into
An
ERP
Deployment

  • Knowledge
Area
1
–
Business
Process
Management
  Defines
the
BPM
and
provides
the
foundation
for
 exploring
the
remaining
knowledge
areas
  Focuses
on
the
core
concepts
of
BPM
   Key
definitions
   End‐to‐End
process
   Customer
Value
   Nature
of
Cross‐Functional
Work
   Process
Types
   Process
Components
   BPM
Lifecycle
   Critical
Skills
   Success
Factors

  • Knowledge
Area
2
–
Process
Modeling
  Includes
the
set
of
skills
and
processes
which
enable
 people
to
understand,
communicate,
measure
and
 manage
the
primary
components
of
business
processes
  Covers
   Skills,
activities
and
key
definitions
   An
understanding
of
the
purpose
and
benefits
of
process
 modeling
   Discussion
of
the
types
and
uses
of
process
models
   Tools,
techniques
and
modeling
standards

  • Knowledge
Area
3
–
Process
Analysis
  Involves
an
understanding
of
business
processes
 including
the
efficiency
and
effectiveness
of
business
 processes
  Covers
   Purpose
and
activities
for
process
analysis
   Decomposition
of
process
components
and
attributes,
 analytical
techniques
and
process
patterns
   Use
of
process
models
and
other
process
documentation
to
 validate
and
understand
both
current
and
future
state
 processes
   Process
analysis
types,
tools
and
techniques

  • Knowledge
Area
4
–
Process
Design
  Intentional
and
thoughtful
planning
for
how
business
 processes
function
and
are
measured,
governed
and
managed
  Involves
creating
specifications
for
business
processes
within
 the
context
of
business
goals
and
process
performance
 objectives
  Covers
   Plans
and
guidelines
for
how
work
flows
   How
rules
are
applied
   How
business
applications,
technology
platforms,
data
resources,
 financial
and
operational
controls
interact
with
other
internal
and
 external
processes
   Process
design
roles
   Techniques
and
principles
of
good
design
   Common
process
design
patterns
   Compliance,
executive
leadership
and
strategic
alignment

  • Knowledge
Area
5
–
Performance
Management
  Formal,
planned
monitoring
of
process
execution
and
the
tracking
of
 results
to
determine
the
effectiveness
and
efficiency
of
the
process
  Used
to
make
decisions
for
improving
or
retiring
existing
processes
and/or
 introducing
new
processes
in
order
to
meet
the
strategic
objectives
of
the
 organization
  Covers
   Key
process
performance
definitions
   Importance
and
benefits
of
performance
measurement
   Monitoring
and
controlling
operations
   Alignment
of
business
process
and
enterprise
performance
   What
to
measure
   Measurement
methods
   Modeling
and
simulation
   Decision
support
for
process
owners
and
managers
   Considerations
for
success

  • Knowledge
Area
6
–
Process
Transformation
  Addresses
process
change
in
the
context
of
a
business
 process
lifecycle
  Covers
   Process
improvement
   Redesign
and
reengineering
methodologies
   Tasks
associated
with
implementing
process
   Organizational
change
management
methodologies,
 techniques
and
best
practices

  • Knowledge
Area
7
–
Process
Organization
  Addresses
the
roles,
responsibilities
and
reporting
 structure
to
support
process‐driven
organizations
  Covers
   What
defines
a
process‐driven
enterprise
   Cultural
considerations
   Cross‐functional,
team‐based
performance
   Business
process
governance
   Governance
structures
   BPM
Centers
of
Expertise/Excellence

  • Knowledge
Area
8
–
Enterprise
Process
Management
  Driven
by
the
need
to
maximize
the
results
of
business
processes
 consistent
with
well‐defined
business
strategies
and
functional
goal
 based
on
these
strategies
  Process
portfolio
management
ensures
that
the
process
portfolio
 supports
corporate
or
business
unit
strategies
and
provides
a
 method
to
manage
and
evaluate
initiatives
  Covers
   Tools
and
methods
to
assess
process
management
maturity
levels
   Required
BPM
practice
areas
which
can
improve
their
BPM
organization
 state
   Business
Process
Frameworks
   Process
Integration
–
interaction
of
various
processes
with
each
other
   Models
which
ties
performance,
goals,
technologies,
people
and
 controls
to
business
strategy
and
performance
objectives
   Process
architecture
and
enterprise
process
management
best
 practices

  • Knowledge
Area
9
–
BPM
Technology
  BPM
is
a
technology
enabled
and
supported
 management
discipline
  Covers
   Wide
range
of
technologies
available
to
support
the
planning,
 design,
analysis,
operation
and
monitoring
of
business
 processes
   Set
of
application
packages,
development
tools,
infrastructure
 technologies
and
data/information
stores
that
provide
support
 to
BPM
professionals
and
workers
in
BPM
activities
   BPM
standards,
methodologies
and
emerging
trends