Keynote presented at the WfMC Forum de la Geide in Paris on October 10th, 2007. Focuses on the organizational aspects of BPM, rather than the technical details.
What every Enterprise Architect needs to know about BPM and Workflow
1. What Every Enterprise Architect Needs to
Know about Workflow and BPM
Michael zur Muehlen, Ph.D.
Center of Excellence in Business Process Innovation
Howe School of Technology Management
Stevens Institute of Technology
Hoboken NJ
Michael.zurMuehlen@stevens.edu
1
14. What is BPM?
Let’s start with the process definition:
A Business Process is the temporal and logical sequence
of those activities that are necessary to manipulate an
economically relevant object toward an overarching goal,
creating value for a customer
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15. What is BPM?
Business Process Management is the collection of
methods and tools that allow us to answer questions
such as:
What are our processes?
How do we ensure their performance?
How do we maintain their compliance?
8
17. Coffee Lover
Put Boiling Water
Boil Water Put Coffee in Cup
in Cup
Thirsty Coffee is Ready
The Nescafè Process
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18. Water is cold
no
Kettle
Boil Water
empty?
yes
Fill Kettle
Coffee Lover
Put Boiling
Water in Cup
Thirsty Coffee is Ready
No
Put Coffee in
Cup
Cup dirty?
Dishwasher
Yes
Clean Cup
The Espresso Machine Process
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19. The Starbucks Process
Hand Coffee
Make Coffee
To Customer
Done
Barrista
Order
cancelled Discard Coffee
Coffee Shop
Insufficient Payment
Cashier
+ Collect
Take Order Coffee
Payment
Done
Store Open
Order Payment
Household
Go To Coffee
Order Coffee Pay for Coffee Take Coffee
Shop
Thirsty Done
> 5 min wait Leave
12
22. BPM Questions
How do we design and communicate this process?
How do we perform this process well?
13
23. BPM Questions
How do we design and communicate this process?
How do we perform this process well?
How do we manage this process well?
13
24. BPM Questions
How do we design and communicate this process?
How do we perform this process well?
How do we manage this process well?
How do we maintain compliance to rules and regulations?
13
25. BPM Questions
How do we design and communicate this process?
How do we perform this process well?
How do we manage this process well?
How do we maintain compliance to rules and regulations?
How should technology support this process?
13
28. 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
Source: BPTrends (2006)
15
29. Business Process Innovation Business Process Management
Business Process Automation
Business Process Monitoring
16
30. Business Process Innovation Business Process Management
Manage Change
Manage Execution
Business Process Automation
Business Process Monitoring
17
31. Business Process Innovation Business Process Management
Business Process Automation
Business Process Monitoring
18
32. Business Process Innovation Business Process Management
Notation
Standard
Business Process Automation
Business Process Monitoring
18
33. Business Process Innovation Business Process Management
Notation
Standard
Integration
Standards
Business Process Automation
Business Process Monitoring
18
34. Business Process Innovation Business Process Management
Notation
Standard
Integration
Standards
Interaction
Standards
Business Process Automation
Business Process Monitoring
18
35. Business Process Innovation Business Process Management
Notation
Standard
Integration
Standards
Interaction
Standard
Standards
Metrics
Business Process Automation
Business Process Monitoring
18
36. Business Process Innovation Business Process Management
Notation
Standard
Integration
Standards
Audit
Standards
Interaction
Standard
Standards
Metrics
Business Process Automation
Business Process Monitoring
18
38. BT Process Hierarchy
Level A
Strategic
Business Activities Scorecard
Business Activities Objectives
Process
Description
Level B
Process Groupings Process Groupings Ownership Services
Level C
Core Processes Tactical
Core processes Products
Delivery Units
Process
Description
Level D
Business Process Flows
Processes Systems
Delivery Teams
Level E
Operational Process Flows
Operational
System Functions
Sub Processes Roles
Process
Description
Level F
Detailed Process Flows
Detailed Roles
Detailed Processes Transactions
Source: British Telecommunications plc 2006
20
39. BT Process Hierarchy
Level A
Strategic
Business Activities Scorecard
Business Activities Objectives
Process
WHAT Description
Level B
Process Groupings Process Groupings Ownership Services
Level C
Core Processes Tactical
Core processes Products
Delivery Units
Process
Description
Level D
Business Process Flows
Processes Systems
Delivery Teams
Level E
Operational Process Flows
Operational
System Functions
Sub Processes Roles
Process
Description
Level F
Detailed Process Flows
Detailed Roles
Detailed Processes Transactions
Source: British Telecommunications plc 2006
20
40. BT Process Hierarchy
Level A
Strategic
Business Activities Scorecard
Business Activities Objectives
Process
WHAT Description
Level B
Process Groupings Process Groupings Ownership Services
Level C
Core Processes Tactical
Core processes Products
Delivery Units
Process
Description
Level D
Business Process Flows
Processes Systems
Delivery Teams
Level E
HOW
Operational Process Flows
Operational
System Functions
Sub Processes Roles
Process
Description
Level F
Detailed Process Flows
Detailed Roles
Detailed Processes Transactions
Source: British Telecommunications plc 2006
20
41. Top-Down Strategy
Level A Strategic
Strategy
Business Activities Processes/
Scorecard
Business Activities Objectives
Rule
Level B Description
Top-Down Project
Process Groupings
Process Groupings Ownership Services
Level C
Tactical
Core Processes
Processes/
Core processes Products
Delivery Units
Rule
Level D
Description
Business Process
Flows Processes Systems
Delivery Teams
Level E
Operational
Operational Process
Processes/
Flows System Functions
Sub Processes Roles
Rule
Level F
Description
BPM Application
Detailed Process
Detailed Roles
Detailed Processes Transactions
Flows
21
42. Process Architecture: Benefits
Allow to short-circuit process identification phase
Provide neutral map for navigation along processes
Standardize terminology across the enterprise
Enable benchmarking across organizations
Designed based on industry best practices
22
43. Process Architecture: Fortune 100
Methods Enterprise Process Architecture Organization
Level
concept Roles &
Responsi-
Convention
bilities
handbook
Process
Modeling
Owners
handbook
Process
Corporate
Managers
Modeling
Service
23
44. Architecture Contents
Glossary and Data Structures
Common terminology that Business & Systems Analysts can refer to
Business Capabilities and Process Definitions
What capabilities do you have, and what processes do you support
Senior managers and business users have a common vocabulary of
processes
Software purchases or outsourcing agreements are simplified
Consistency across business partners
Library of Cross-Organizational Messages
24
45. Example: ACORD
Insurance Business is assemblage of standard process building
blocks
Use for
Internal integration
Integration across distribution channels
Integration with third-party providers
“We are about the business content that goes into the process”
25
46. Process Framework Benefits
Frameworks save time
Coloring a picture vs. drawing a picture
Frameworks reduce risk
Incorporate best practices
Frameworks enable business agility
Provide business context
Frameworks reduce costs
Enterprise overview helps identify areas in need of improvement
Frameworks enable incremental development
26
48. The Role of BPM Technology
“The first rule of any technology used in a business is
that automation applied to an efficient operation
will magnify the efficiency.
The second is that automation applied to an
inefficient operation will magnify the inefficiency.”
28
49. No BPM =
Monolithic Enterprise Application
Built as a unit, Internals not visible
User Interface built in for all functions
In order to “extend” to a new function, need to call in a
programmer...
User Interface
list new update delete
Accts Acct Acct Acct
Program and Logic Enterprise Application
“Account Management”
Internal Protocols
are Proprietary C, C++, Visual Basic, Etc.
50. BPM 1990: Workflow in the Brain
UI
“Screens”
list new update delete
Conformance Guidelines
Accts Acct Acct Acct
Background Check
Application
Enterprise Application
Logic in
“Account Management”
Monolithic
Program
51. BPM 1993: Task Management
Human BPM/Workflow:
check
background create
guidelines
check account
User accesses
Launches
original UI directly
UI
UI
“Screens”
list new update delete
Conformance Guidelines
Accts Acct Acct Acct
Background Check
Application
Enterprise Application
Logic in
“Account Management”
Monolithic
Program
52. BPM 1996: Workflow Routing
Human BPM/Workflow:
check
background create
guidelines
check account
Launches User accesses
UI original UI directly
UI
“Screens”
list new update delete
Conformance Guidelines
Accts Acct Acct Acct
Background Check
Application
Enterprise Application
Logic in
“Account Management”
Monolithic
Program
53. BPM 2002: Services Integration
UI connects user
to BPMS, not the back-end
applications
backgr. rules
Enter create
Review
check check
Information account
Services
Interfaces list new update delete
Conformance Rules
Background Check
Accts Acct Acct Acct
Application
Enterprise Application
Logic and
“Account Management”
SOA
54. BPM 2007: Composite Services
Enter Create
Check Review
Information account
Composite
ESB/BPEL
Service list new update delete
Accts Acct Acct Acct
Enterprise Application
Background
Application “Account Management”
Check
Rules
Logic and
SOA
55. BPM 2007: Composite Services
Enter Create
Check Review
Information account
Composite
ESB/BPEL
Services
list new update delete
Background
Accts Acct Acct Acct
Application
Check
Rules
Logic and
SOA Enterprise Application
“Account Management”
56. BPM 2007: Composite Services
Enter Create
Check Review
Information account
Composite
ESB/BPEL
Services
list new update delete
Background
New Rules
Accts Acct Acct Acct
Application
Check
Logic and
SOA Enterprise Application
“Account Management”
57. BPM 2007: Composite Services
Enter Create
Check Review
Information account
Composite
ESB/BPEL
Services
list new update delete
Background
New Rules
Accts Acct Acct Acct
Application
Check
Logic and
SOA Enterprise Application
“Account Management”
58. BPM 2007: Composite Services
Enter Extra Create
Check Review
Information Audit account
Composite
ESB/BPEL
Services
list new update delete
Background
New Rules
Accts Acct Acct Acct
Application
Check
Logic and
SOA Enterprise Application
“Account Management”
59. Separation of Responsibility
Business Retains Control of
Assignment of Responsibility
Groups, Roles, Skills
Deadlines
Alerts, Reminders, Escalations
Order of Tasks
Addition of Manual Tasks
User Interface
Create
Enter
Check Review
Information account
IT Retains Control of
ESB/BPEL
Computational Logic list new update delete
Data Representations Accts Acct Acct Acct
Scalability / Performance
Enterprise Application
Interoperability Background
New Rules
“Account Management”
Check
Master Data Management
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61. Product Product Product Product Product
Line 1 Line 2 Line 3 Line 4 Line 5
Process
Group 1 Process
Manager
Process
Group 2 Process
Manager
Process
Group 3 Process
Manager
Process
Group 4 Process
Manager
Process
Group 5 Process
Manager
Leveraging Vertical and
Horizontal Expertise
38
Compare Sainsbury (2006)
63. Focus Role Objective Level
Corp. Region Division
Process Sponsor Facilitate & Drive
Process Framework
Strategic Method & Compatibility
Executive
Process Executive Standardize & Optimize
Process Performance
Process Owner Management
Operational
Process Manager Implement & Optimize
(recommended)
Process DB Manager Responsible for ARIS
Shared
Service
Process Modeler Modeling Processes
BPM Roles - Example
40
64. The BPM Maturity Model
Business Process Management
Maturity
Strategic Governance Method IT People Culture
Alignment
Process Roles and Process Design & Process Design & Process Skills & Process Values &
Process
Improvement Plan Responsibilities Modeling Modeling Expertise Beliefs
Process Process
Decision Making Process Education Process Attitudes &
Strategy & Process
Implementation & Implementation &
Capability Linkage Processes & Learning Behaviors
Executions Executions
Process Metrics & Process
Process Control & Process Control & Responsiveness to
Process
Performance Collaboration &
Architecture Measurement Measurement Process Change
Linkage Communication
Process Process Process Leadership
Process
Process Output
Management Improvement & Improvement & Attention to
Measurement Knowledge
Standards Innovation Innovation Process
Process Process Project & Process Project & Process
Process Customers Process Social
Management Program Program Management
& Stakeholders Networks
Controls Management Management Leaders
Source: Rosemann & DeBruin 2006
65. Agile BPM Maturity
Satisfying all 30 facets of the BPM Maturity Model takes a long time
A subset of the BPM Maturity model is needed to guide an
organization toward a rapid deployment of BPM technology
Example: Staged Deployment of Maturity Initiatives
Modeling Tool Extended use of Tool
42
66. Choosing the Right Strategy
There is no single right pathway for all organizations
If command-and-control infrastructure: Methods come first,
culture comes later
If participatory organization: Culture and people need to be
nurtured earlier in the process
If centralized organization: Building a central repository can
be undertaken early in the process
If decentralized organization: Leveraging individual projects to
facilitate quick wins is important, but an integration strategy for
the project results later on needs to be instituted early on
43
72. Thank You – Questions?
Michael zur Muehlen, Ph.D.
Howe School of Technology Management
Stevens Institute of Technology
Castle Point on the Hudson
Hoboken, NJ 07030
Phone:
+1 (201) 216-8293
Fax:
+1 (201) 216-5385
E-mail:
mzurmuehlen@stevens.edu
Web:
http://www.cebpi.org
Process Thought Leadership
46