Modeling in the Large Keynote

Process in the Large
From Enterprise Process Wikis to
Crowdsourced Process Designs
Michael zur Muehlen, Ph.D.
Center for Business Process Innovation
Howe School of Technology Management
Stevens Institute of Technology
Hoboken NJ
Michael.zurMuehlen@stevens.edu
1

Sunday, September 19, 2010

2


Agenda
How large organizations approach BPM
What’s different about Process in the Large
Wikis and Collaboration
Some insights

3


Part 1:
How Large Organizations
Approach BPM

4


“Let’s try this out
carefully”
Choose a single pilot process to gain
experience with BPM
Good: High-value, low-medium risk
business case
Example: Onboarding, Claims Processing

Bad: No-value, no-risk business case
Example: Vacation request, Expense
reimbursement

5


Scheduled Project
Time during First
BPM Project

Business Case
Project Team Selection
Process Discovery
Documentation
Functional and Technical Speciﬁcation
Tools Evaluation and Selection
Implementation
Testing and Debugging
Deployment and Training

6
Source: BPTrends (2006)


Scheduled Project
Time during First 41%

BPM Project 3%
5%

8% 4%
Business Case
Project Team Selection
Process Discovery 7% 9%
Documentation
Functional and Technical Speciﬁcation
Tools Evaluation and Selection
12% 11%
Implementation
Testing and Debugging
Deployment and Training

6
Source: BPTrends (2006)


Problem: Process
Confabulation
Problem
People should know why they perform tasks
If they don’t, they make up explanations

Consequence
Accurate process discovery becomes difﬁcult
Reinforces assumptions that participants share
about the process (Black Swan problem)

Solution
Observe rather than ask
Follow the process object
Rainy Day Approach: Use Speciﬁc Examples

7


Problem: Paper Bias
Problem
Process designs mimic paper-based processes

Consequence
Innovative designs are overlooked
Inefﬁciencies remain because technology
capabilities are underutilized
But: Processes are easily understood by those
who are used to paper

Solution
Model backwards
Focus on data dependencies

8


“Let’s model
everything”
Need an Enterprise Process Architecture
Comprehensive Process Documentation
Motivation
Compliance Requirements
Developing Global Standards
Mergers and Acquisitions
“We like to model”

9


Enterprise Process Map: APQC
Operating Processes
2.0
3.0 4.0 5.0
1.0 Design and
Market and Deliver Manage
Develop Vision Develop
Sell Products Products and Customer
and Strategy Products and
and Services Services Service
Services

Management and Support Processes
6.0 Develop and Manage Human Capital

7.0 Manage Information Technology

8.0 Manage Financial Resources

9.0 Acquire, Construct, and Manage Property

10.0 Manage Environmental Health and Safety

11.0 Manage External Relationships

12.0 Manage Knowledge, Improvement, and Change
10
Source: APQC (2007)


Enterprise Process Map: Fortune 500

Level
concept Roles &
Responsi-
Convention
handbook bilities

Modeling Process
Owners
handbook
Corporate Process
Modeling Managers
Service

Methods Organization

11


Process Abstraction Levels
Level A
Business Activities Business Activities Objectives Scorecard

Level B
Process Groupings
Process Groupings Ownership Services

Level C
Core Processes
Core processes Delivery Units Products

Level D
Business Process Flows
Processes Delivery Teams Systems
Level E
Operational Process Flows
Sub Processes Roles System Functions

Level F
Detailed Process Flows
Detailed Processes Detailed Roles Transactions
Source: British Telecommunications plc 2006

12


Level A

Level B
Process Groupings
Process Groupings What Ownership Services

Level C
Core Processes

Level D
Level E

Level F

12


Level A

Level B
Process Groupings
Process Groupings What Ownership Services

Level C
Core Processes

Level D
Level E

Level F
Sub Processes How Roles System Functions


12


Enterprise Process Architecture
Strategy
IT
Management Accounting

Enterprise Process Map
Purchasing Marketing

Order Sales

Receiving Warehouse Distribution

Invoice Billing

Accounts Accounts

General Accounting and Asset
Cost Accounting
Human Resources

Business Activities Objectives Scorecard

Process Groupings Ownership Services

Process Levels



Detailed Processes Detailed Roles Transactions 13


Modeling Levels
Milestones

Handoffs

Decisions

Procedures
DWiz/DCMO/BMA CTO/CA


“We’re doing SOA, let’s
ﬁgure out this BPM
stuff later”
Typical Procedure
Analyze existing systems
Establish basic services
Implement Enterprise Services Bus
Try to identify processes that can leverage
the services
Problem
Without processes there is no point of
reference for
services abstraction
granularity
usage frequency 15


SOA - What Developers See

16


Services - What Architects See

17


What the Customer Wants

18


Part 2:
What’s Different about
Process in the Large

19


Commitment
to Change

Value Proposition Governance

Project Management

Setup Design Maintenance

Info. Tools
Modelers Users
Providers and Lang.

Issues Framework 20


Strategy-related Issues

Top
Economic Value
Management Governance
(economics)
Support

Lack of value
Commit-
End-goal Focus on ROI metrics (i.e., Lack of Corporate Ownership
ment to Sponsorship Incentives Costs Politics
perceptions Initiatives Justiﬁcation Balanced Benchmarks standards of models
long term
Scorecard)

Costs
Lack of
New tool associated with Lack of
Training coordination
acquisition updating the control
point
models

Strategy-related Issues
21


Process Modeling
Life Cycle Issues

Setup Design Maintenance

Lack of Lack of Lack of Consoli-
Model quality Variant
modeling standards common Infrastructure Rework Timeliness dation and
assurance management
objectives for reuse methodology Integration

Corporate
Level of Model Modeling
modeling
abstraction maintenance guidelines
standard

Modeling-related Issues
22


Resource-related Issues

Process Information Tool and
Model User
Modeler Provider Language

Level of Hierarchical Lack of Integration
Lack of Limited
expertise Capability BPM Level of decompo- using full with other
adequate access to
and to abstract education complexity sition of toolset modeling
toolset repository
experience models features tools

Resistance Lack of good
Lack of Lack of efﬁcient
Cost Turnaround to change / Knowledge Integration graphical
model repository search
efﬁciency time adoption of sharing of activities process
utilization engine
BPM mapping

Lack of Lack of Loss of Intellectual
transfer communication knowledge property

Resource-related Issues
23


Capability-Driven

24


Goal-Driven

25


Wikis and
Collaboration

26


Process Wiki

27


Process Wiki (2)

28


29


Collaboration

30


Issues around Process in the Large

31


Issues around Process in the Large
Identiﬁcation of Best Practices
Building shared understanding of Models
Federation of Process Designs
Federation of Process Metrics
Compliance Checking
Organizational Alignment

31


Final Thought

Methods don’t matter

32


Final Thought

Methods don’t matter
until you’ve picked one

32


Modeling in the Large Keynote

Recommended

Recommended

More Related Content

What's hot

What's hot (20)

Similar to Modeling in the Large Keynote

Similar to Modeling in the Large Keynote (20)

More from Michael zur Muehlen

More from Michael zur Muehlen (12)

Recently uploaded

Recently uploaded (20)

Modeling in the Large Keynote