This document discusses process architecture and how to identify and scope processes. It defines different levels in a process hierarchy from high-level value chains to detailed tasks. Guidelines are provided for vertical decomposition based on business objects, resources, or modeling readability. Reference models can be used as templates to design process architectures. Processes should be prioritized based on importance, health, and feasibility for improvement. Pitfalls of identification include unclear purpose, too narrow or broad scope, and poor stakeholder involvement.

1. CRICOS No. 00213J
a university for the worldreal
R 1
A/Prof. Marcello La Rosa
BPM Discipline
Queensland University ofTechnology
IAB203 – Business Process Modelling
Week 10, 5 May 2015

2. Value chains
Chains of processes. Stay at a high level. Rule of thumb: 3-7 processes
• Procure-to-service, Risk management
(Root/Main) Processes
Build up value chains and affect each other. They are abstract
• Lead-to-quote, Quote-to-order, Order-to-cash
Subprocesses
Build up processes. They are detailed, involve multiple activities and can be layered on
different levels of abstraction (i.e. sub-subprocesses)
• Order shipment, invoicing
Process tasks
Build up processes and sub-processes. They are atomic and performed by human beings, IT
systems or equipment
• Approve invoice
Typical artifacts for vertical scoping
Typical focus of Process enumeration

3. Process architecture: hierarchical view
Processhierarchy
Level 1
Process
Landscape
Level 2
Main
Processes
(e.g. BPMN)
Level 3+
Subprocesses, Tasks
(e.g. BPMN)

4. 4. Decomposition based on logical constraints, e.g.
• Predominant business object (e.g. order vs invoice)
• Predominant resource class (e.g. sales vs financial department)
5. Consider process modeling guidelines for readability
purposes (e.g. no more than 30 flow objects)
Guidelines to identify vertical boundaries

5. How many levels in the process architecture?
6

6. Level 1
Example: process hierarchy
Government Agency

7. Level 2
Level 3
Example: process hierarchy
Government Agency

8. Level 4
Example: process hierarchy
Government Agency

9. Logical
Levels
Physical
Levels
BusinessLevelsOperationsLevelsProcessLevels
Model structure, methodology and
modelling standards
Shows groups of related business
functions and standard end-to-end
processes (e.g. Service Streams)
Decomposition of core processes into
detailed ‘success model’ business
process flows
Detailed operational process flows
with error conditions and product and
geographical variants (where
required).
Further decomposition of detailed
operational where required
Process Groupings
Business Activities
Core Processes
Business Process Flows
Detailed Process Flows
Level A
Level B
Level C
Level D
Level E
Level F
Operational Process Flows
Defines business activities
Distinguishes operational customer
oriented processes from management
and strategic process
Core processes that combine together to
deliver Service Streams and other end-
to-end processes
Meta
Level
© British Telecommunications (2005)
Example: process hierarchy
British Telecom

10. Service Streams
Process Service Lines
Resources
Detailed Resources
Value Domains
Business FunctionsProcess Groupings
Business Activities
Core Processes
Business Process Flows
Detailed Process Flows
Level A
Level B
Level C
Level D
Level E
Level F
Operational Process Flows
Business
Activities
Processes
Sub-processes
Detailed Processes
Enabling Streams
Tasks
Steps
Operations
BusinessLayerProcessLayer
End-to-End
Processes
Core
processes
Implementation
Process View
© British Telecommunications (2005)

11. BusinessLayerProcessLayer
Business
Value Streams
Business
Balanced Scorecard
Business
KPIs
Business Unit
Scorecard
Unit KPIs
Business Process
Value Streams
Business
Objectives
Business Unit
Objectives
Operational Unit
Objectives
Implementation
Process Groupings
Business Activities
Core Processes
Business Process Flows
Detailed Process Flows
Level A
Level B
Level C
Level D
Level E
Level F
Operational Process Flows
Strategic View
© British Telecommunications (2005)

12. BusinessLayerImplementationProcessLayer
Operational Teams
Business
Operational Roles
Operational Units
Business UnitsProcess Groupings
Business Activities
Core Processes
Business Process Flows
Detailed Process Flows
Level A
Level B
Level C
Level D
Level E
Level F
Operational Process Flows
Organization View
© British Telecommunications (2005)

13. BusinessLayerProcessLayer
Business
Information
Cust
contact
Customer
Inquiry
Customer
credit
limit
Customer
Account
Customer
budget Cust
1
cn
1
n
1
n
1
1
1
11
1
1
1
1 1 1 n
Customer
Offer
Corporate Data Model
Process
Information
Function
Data
Function
Entities
department
Title
Phone #
Function
Attributes
System
Entities
department
Title
Phone #
System
Attributes
Implementation
Process Groupings
Business Activities
Core Processes
Business Process Flows
Detailed Process Flows
Level A
Level B
Level C
Level D
Level E
Level F
Operational Process Flows Procedural
Information
Data View
© British Telecommunications (2005)

14. System
Types
System IT Functions
Screens
(System Specific)
Systems and
Modules
System Types and
Modules Types
System
DomainsProcess Groupings
Business Activities
Core Processes
Business Process Flows
Detailed Process Flows
Level A
Level B
Level C
Level D
Level E
Level F
Operational Process Flows
BusinessLayerProcessLayerImplementation
Systems View
© British Telecommunications (2005)

15. Process architecture vs Enterprise architecture
Process architecture is a slice of an overarching enterprise
architecture (e.g. TOGAF)

16. • If Process Architecture already in place: where does the
process fit into the Process Architecture?
• On what level is the unit of analysis, i.e. end-to-end process,
procedure or operation?
• What are the previous/subsequent processes and what are the
interfaces to them?
• What variants does this process have?
• What underlying processes describe elements of this process
in more detail?
Locating a process in an existing architecture

17. A reference model is used as a template to design the process
architecture
Examples:
• Information Technology Infrastructure Library (ITIL)
• Supply Chain Operations Reference Model (SCOR)
• Process Classification Framework (PCF)
• Value Reference Model (VRM)
• Voluntary Interindustry Commerce Solutions (VICS)
• eTOM Business Process Framework
• Performance Framework
Designation via reference models

18. • Industry-neutral enterprise model
• Open standard for benchmarking
• Four levels
• Categories
• Process group
• Process
• Activity
Example: APQC Process Classification Framework (PCF)

19. APQC PCF Overview
Category

20. APQC Classification Framework
Group
Process
Activity

21. APQC Classification Framework
Available industry sectors:
• Aerospace & Defense
• Automotive
• Banking
• Broadcasting
• Consumer Electronics Just released
• Consumer Products
• Education
• Electric Utilities
• Petroleum Downstream
• Petroleum Upstream
• Pharmaceutical
• Retail
• Telecommunications

22. Prioritization (aka Process Selection)
1. Importance
Which processes have greatest impact on the organization‘s strategic
objectives?
2. Health (or Dysfunction)
Which processes are in deepest trouble?
3. Feasibility
Which processes are most susceptible to successful process
management?
Prioritized process portfolio
Hammer, Champy (1993)

23. Financial institution
Example: prioritized process portfolio
Health
High
Low
GoodPoor
Short-term action
Rating
Contract
preparation
Loan market
evaluation
Handling of
payments
Loan
application
Loan
planning
Loan
controlling
Loan
decision
Feasibility
Low
High
Medium
Possible Strategic fit?

24. Cost per
execution
Resource
utilization
Waste
Cost
Cycle time
Waiting
time
Non-value-
adding time
Time
Error rates
SLA
violations
Customer
feedback
Quality
Back up health judgments with performance measures

25. Does an assessment of the importance, health and
feasibility always point to the same processes to manage?

26. Should all processes that are important, healthy and
feasible to manage be subjected to BPM?

27. • Processes are identified with every request from
a line of business
• Ensures high relevance for involved business unit
• Reactive approach (-)
• Often restricted to discrete improvement (-)
• No conscious process selection approach (-)
Alternative: project-by-project identification

28. Pitfalls of Process Identification (1/2)
• The purpose of the project is not clear enough leading to
inappropriate scoping of the process.
• The scope of the process is too narrow leading to the fact that
later the identified root-causes are located outside the
boundaries of the process under analysis
• The scope of the process is too wide leading to a process
improvement project that has to be compromised in its lack of
detail

29. Pitfalls of Process Identification (2/2)
• The process is identified in isolation to other projects due
to poor portfolio management leading to redundancies and
inconsistencies between these projects
• Involved project members and stakeholders have not been
sufficiently informed about the benefits of the project
leading to limited participation
• The involved project members and stakeholders have not
been carefully selected leading to a very limited source of
knowledge
• The business process architect has poor facilitation skills
and cannot resolve emerging conflicts between the project
members and stakeholders.

30. References
Required
• M. Dumas, M. La Rosa, J. Mendling, H.A. Reijers, “Fundamentals of Business Process
Management”, Springer, 2013, Chapter 2
Recommended
• T.H. Davenport, “Process Innovation: Reengineering Work Through Information Technology”,
Harvard Business School Press, 1993
• M. Hammer, J. Champy, “Reengineering the Corporation: A Manifesto for Business
Revolution”, HarperCollins, 1993
• M.E. Porter, “Competitive Advantage: Creating and Sustaining Superior Performance”, Free
Press, 1985
• P. Harmon, Business Process Change, Morgan Kaufmann, 2014 (3rd edition)
• M. Rosemann, “Process Portfolio Management”, BPTrends, April 2006
• R. Dijkman, I. Vanderfeesten, H.A. Reijers, “The road to a business process architecture: an
overview of approaches and their use”. BETA Working Paper Series, WP 350. Eindhoven
University of Technology, Eindhoven (2011)
Web-sites
• http://www.value-chain.org (Value Reference Model)
• http://www.mindtools.com/pages/article/newSTR_66.htm (more on value chains)
• http://www.apqc.org/process-classification-framework (APQC PCF website)