Introduction to the BPM Lifecycle

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An introduction to the different phases of the BPM life cycle: Analyze, Design, Implement, Measure, Improve.

Key Takeaways:
- Analysis Frameworks provide context
- Transactions perform work, Analytics manage work
- The diagram isn’t everything
- Improve your capabilities in 3 areas:
-- Process Maturity
-- Process Management Maturity
-- Organizational Maturity

Presented by Michael zur Muehlen (Stevens Institute of Technology) at the Appian World 2012 Conference, April 16, 2012, in Reston VA.

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Introduction to the BPM Lifecycle

  1. 1. Introduction to the BPM Life CycleMaturing BPM EffortsDr. Michael zur MuehlenStevens Institute of TechnologyCenter for Business Process InnovationApril 16, 2011
  2. 2. “If it doesn’t make three people angry, it is not a process” Beyond Reengineering (Michael Hammer, 1996)2
  3. 3. Key Takeaways §  Analysis Frameworks provide context §  Transactions perform work, Analytics manage work §  The diagram isn’t everything §  Improve your capabilities in 3 areas: §  Process Maturity §  Process Management Maturity §  Organizational Maturity3
  4. 4. Analyze
  5. 5. “Most businesses have just3 core processes:1.  sell stuff2.  deliver stuff, and3.  making sure you have stuff to sell and deliver” Geary Rummler 55
  6. 6. Enterprise As A System Enterprise Management System Management Planning and Mgt. Information Information Control System System Custo- ReportingSuppliers Directive mers Operational System Operational Information System Goods and Services Money
  7. 7. Organizing Content: Framework Strategy & Governance Contracting Marketing Purchasing Sales Receiving Warehousing Shipping Invoice Billing Auditing Accounts Accounts Payable Receivable Support Processes (Accounting, HR, IT etc.)7
  8. 8. Design
  9. 9. The Process Problem Source: 9 WW Grainger
  10. 10. Process Abstraction Levels Level A Business Activities Business Objectives Scorecard Activities Level B Process Groupings Level C Process Groupings What Ownership Services Core Processes Core processes Delivery Units Products Level DProcess Business Flows System Processes Delivery Teams s How Level E Operational Process Flows Sub Processes Roles System Functions Level F Detailed Process Flows Detailed Processes Detailed Roles TransactionsSource: British Telecommunications plc 2006
  11. 11. Implement
  12. 12. “Vision without execution is hallucination” Thomas Alva Edison 1212
  13. 13. The Developer’s Perspective 13
  14. 14. The Architect’s Perspective 14
  15. 15. What the Customer Wants 15
  16. 16. Manage
  17. 17. “All models are wrong, some are useful”George P.E. Box17
  18. 18. Process Analytics Business Process Analytics Process Business Process Controlling Activity Monitoring Intelligence Processing of Event Detection & Dashboards Simulation Context Events Correlation Historical Analytics Rule-based Data Mining Notification Optimization Event BusExternal Event EAI ERP ECM BPM Sources Legacy Custom Enterprise IT Infrastructure
  19. 19. Improve
  20. 20. Targets •  Improve your Process Performance•  Improve your Process Management Performance•  Improve your Organizational Performance
  21. 21. Theory of Constraints 1.  Define the goal - performance or compliance?2.  Define key metrics – cycle time, wait time, resource utilization3.  Identify the constraint – find the bottleneck activity/resource4.  Exploit the constraint – maximize use of the bottleneck5.  Subordinate to the constraint – limit upstream throughput6.  Elevate the constraint – invest and improve7.  Avoid inertia – start the process again
  22. 22. Process Management Maturity Business Process Management Maturity Strategic Governance Method IT People Culture Alignment Process Process Roles and Process Design & Process Design & Process Skills & Process Values & Improvement Plan Responsibilities Modeling Modeling Expertise Beliefs Process Process Strategy & Process Decision Making Process Education Process Attitudes & Implementation & Implementation & Capability Linkage Processes & Learning Behaviors Executions Executions Process Metrics & Process Process Process Control & Process Control & Responsiveness to Performance Collaboration & Architecture Measurement Measurement Process Change Linkage Communication Process Process Process Leadership Process Output Management Improvement & Improvement & Process Knowledge Attention to Measurement Standards Innovation Innovation Process Process Process Project & Process Project & Process Process Customers Process Social Management Program Program Management & Stakeholders Networks Controls Management Management LeadersSource: Rosemann & De Bruin 2008
  23. 23. Organizational Performance Value Generates FINANCIAL Cash Flow Primary Objectives CUSTOMER Processes Enable Value Value Proposition PROCESS BPM Coordinates Processes Regulatory Operations Customer Innovation / SocialBPM shapes and is Strategic shaped by Strategic Change Job organizational IT Agenda Families maturity LEARNING & GROWTH Maturity is determined by Human Information Organization People and Capital Capital Capital Technology
  24. 24. Organizational Performance MISSION Organizational Mission is Mandated Objectives Paramount FINANCIAL CUSTOMER Value and Fiscal Responsibility are Fiscal Constraints Value Proposition in balance PROCESS BPM Coordinates Processes Regulatory Operations Customer Innovation / SocialBPM shapes and is Strategic shaped by Strategic Change Job organizational IT Agenda Families maturity LEARNING & GROWTH Maturity is determined by Human Information Organization People and Capital Capital Capital Technology
  25. 25. Goal Specification, Strategy DefinitionBPM Life Cycle Organizational Analysis Strategy Revision Process Design Process Modeling and Models Specification Improvement Measures for Process Process Evaluation Implementation Target Metrics Process Mining / Build Time / Warehousing Integration Implemented Processes Process Enactment Export for other Process reporting purpose Metrics Run Time / Task and Resource Allocation Measure- ments Process Monitoring Process Metrics Business Activity Monitoring
  26. 26. Key Takeaways §  Analysis Frameworks provide context§  Transactions perform work, Analytics manage work§  The diagram isn’t everything§  Improve your capabilities in 3 areas: §  Process Maturity §  Process Management Maturity §  Organizational Maturity
  27. 27. Thank You!

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