What is BPM?

BPM Defined
Business Process Management is a generic term, that encompasses the techniques, structured methods, and means to streamline operations and increase efficiency.
BPM techniques and methods enable you to identify and modify existing processes to align them with a desired (improved) future state.
Business Process Management is a means to study, identify, change, and monitor business processes.

BPM is not…
The automation of manual tasks
Re-engineering the Enterprise
Change Management
Six Sigma
A management methodology
Workflow or BPM technology
But the techniques and tools can be used to support any of these……if you want them to!

Principles of BPM:
Organise around outcomes not tasks
Correct and improve processes before (potentially) automating them
Establish processes and assign ownership
Standardise processes across the enterprise
Enable continuous change
Improve existing processes, rather than build radically new or ‘perfect’ processes

Typical Business Drivers
Perceived or Expected Benefits:
Reduce staff and office overhead numbers
Process business critical activities faster
Reduce the number of errors and exceptions
Reduce overall IT costs
Reduce duplications
Increase visibility into operational efficiencies and bottlenecks
Reduce business risks
Improve customer service and retention

The Mandate
BPM changes things.
You need the authority, the will, and the ability to change things; this means aligning any project with enterprise goals
And
You need the support of those whose daily work and activities you will change, as well as the support of the management that owns the overall process

BPM & Ethics
BPM changes things.
Our projects will commonly impact the day to day work activities of individuals and groups
Often reducing human involvement in a process
Our projects will typically utilize confidential and secure data
Our projects will commonly have an impact on the enterprise as a whole (increased profit/efficiency)
As such every BPM project needs to consider and be aware of the ethical issues that will occur on a daily basis
Process consultants often face difficult or conflicting ethical situations

Business Analysis
No business process improvement or change activity can be undertaken without the use of business analysts and/or business analysis techniques
You must never attempt to change a business process without first analyzing the business impact of the change in detail
Most people think they understand the techniques of analysis (e.g., requirements gathering), but few actually do
Most projects failures do not stem from technology
Rather, a lack of insight, stakeholder support or planning -- all things that are the focus of business analysts!

Methods
In analysis work - consistency of methods of collection and delivery are essential
There are many different types of methods
The use of any method is typically much more effective than none - or a loose hybrid
This presentation introduces you to three potential approaches for both business and technology process analysis
Business Process Analysis
Structured Analysis
Object-oriented Analysis

1. Business Process Analysis
Most common starting point is when something is not right in the organisation…
A meta problem: there are duplicative processes and information across departments
A business problem: exception rate is too high
A micro problem: some user interface screens are confusing
Business Analyst needs to
evaluate the situation from various angles and identify core issues
review any documentation, interview workers
flowchart/document current process
recommend improvements
When to use: When you have already clearly identified a specific process or process for improvements

Centered around understanding of Objects and Classes
Class - A class describes the characteristics of a thing (attributes, behaviors, properties, etc.)
Object - An instance of a class
modeling techniques linked to UML (Unified modeling Language) and software engineering
Analysis focuses on “use cases”
Makes use of Sequence Diagrams, Class Models, and Activity Diagrams
When to use: When you wish to improve a specific business applications’ performance and usability
2.Object-Oriented Analysis

3. Structured Analysis
Views a “ System” as a collection of processes executed according to certain logic (or illogic!)
Focuses on data flows
Models Data and Processes separately
Makes use of Data Flow Diagrams, Relationship Diagrams, and Flowcharts
When to use: When you wish to improve your existing IT investment infrastructure and gain greater process efficiencies in the enterprise

Flowcharts Defined
What is a flowchart?
“ A graphical representation of the sequence of activities, steps, and decision points that occur in a particular, discrete process.”

Flowchart Example

Why Flowchart?
To explain the sequence of a process graphically
To improve communication and obtain business-user validation
To identify bottlenecks and loops
To assist with problem analysis
To provide a blueprint for development
To identify variations in process activity

Charting vs. Modeling
Flowcharting creates a graphical representation of the sequence and key elements of a business process
Process modeling extends this by
Mapping dependencies and related flows
Adding data intelligence to the steps
Enabling simulation of flows to check for efficiencies and bottlenecks
Enabling reuse of mapped chart elements
Supporting future monitoring of improved processes

Advantages of Modeling
There are seldom single process flows - processes tend to have interdependencies
These are difficult to capture in a regular flowchart
Multiple processes and systems are the hallmark of most BPM projects
The granular level of detail in a model supports eventual automation analysis
Cross-dependent processes can be acknowledged and inter-related
The needs of different stakeholders can be managed holistically (from business to technical)
Models can potentially become managed objects in a ECM/BPM repository with version and access controls

BPMS EA modeling Drawing Tools End User Focus Infrastructure Focus System to System focus Human to Human focus Development Tools Modeling Tool Options

IBM Lombardi IDS Scheer MEGA Microsoft Visio Apple iGrafx End User Focus Infrastructure Focus System to System focus Human to Human focus AllFusion Rational Examples of Vendors

Model to Execution
“ Execution” means implementing the model in an ECM or BPM system
The promise of powerful modeling tools is to create a process model, then to automate its execution
The reality is far more complex – tools for moving from modeling to execution are evolving slowly

Standards and Protocols BPMN (Business Process Modeling Notation) XPDL (XML Process Definition Language) BPEL (Business Process Execution Language)

BPMN BPMN (Business Process Modeling Notation)
BPMN consists of four basic elements:
Flow Objects
Event
Activity
Gateway
Connecting Objects
Sequence Flow
Message Flow
Association
Swimlanes
Pool
Lane
Artifacts
Data Object
Group
Annotation

Reality of BPMN
BPMN has been designed to be understood by business analysts to technical developers
BPMN is a good standard - but it does not always translate to BPEL (execution) - interim work will likely be required
All standards are open to interpretation - business analysts address different issues to technical developers…

Technology
Maybe none at all (often)
In the context of this course:
BPM
Workflow
ECM (Enterprise Content Management)
ERP (Enterprise Resource Planning) / Business Applications

Contemporary BPMS Architecture Note: Not all tools provide all these services or implement them in the same way… Design & Simulation Services Monitoring Services Process Registry Orchestration (Workflow) Engine Rules Engine Integration Services Content / Data Repositories

Design & Simulation
Tools to capture and design business process models
Designed to be used in the first instance by business analysts
Good design tools enable primary flowcharting, and secondary detailed modeling activities
Advanced UIs also allow for processes to be simulated so that existing and proposed process enhancements can be tested and modified in advance of go-live

Analysis and Activity Monitoring
Sometimes called Business Activity Monitoring, or “BAM”
Data is created whilst executing a business process
The data can be analyzed and displayed via dashboards or reports
Processes need to be monitored!
Who has what
Where it is
When they got it
Identifies bottlenecks and areas of weak or no activity
Provides reporting
Enables process analysis

Process Registry
Contains the process models and rules
Also contains metadata about processes
Supports re-use of process components
Web Services (SOA) compatible approach
Traditional challenges of component re-use apply…
Granularity and componentisation
Management complexity
Governance

Orchestration (Workflow) Engine
Core component for BPM
Sometimes called Process Engine or Process Server
Parses and implements rules governing transitions between tasks
Updates the state of each process instance
Offers or delivers tasks as needed to workers or applications to do the work
Provides reporting and alerts on demand

Integration
BPM application will seldom access just one source of information
Hence the need to link the Orchestration Engine with other sources of data and services
The process definition needs to be comprehensive enough to understand and address the application
Invocation can be either push or pull
May require variety of integration techniques:
EAI
ESB
BPM to BPM
Brute force

Rules engines:
Driven by defined rules, rather than processes
Separates business rules from application code
Evaluate the information provided by the process and control changes in complex flows
Business processes often have complex flow controls.
Allow the separation of rules from business processes
This composite approach provides more flexibility and is more adaptable to change
Business rules describe the policies and practices of an organisation. For example a business rule might state that no credit check is to be performed on return customers Rules Engine

Content Repository
ECM repository containing mainly unstructured data (documents and files)
Manages information created in the business process
Manages information used by the business process
Manages metadata that may drive business processes
E.g., content of a certain document type prior to a particular date is processed differently than other document types

Relationship Between BPM & ECM
Both BPM and ECM:
Have notions of workflow
Involve business processes
Involve use of resources
Involve tasks
Work on the basis of “the right information, to the right person, at the right time”
Have a reputation for being expensive
ECM almost always involves processes
But not all BPM deals with ECM (unstructured content)

BPM Strategy BPM as a Practice BPM as a Project BPM Master For more information - AIIM BPM Certificate Program

What Is BPM Role of ECM & BPM Business Case BPM as a Practice BPM as a Project Business Analysis Process Improvement Flowcharting 101 Process Modelling BPM Approaches BPM Technologies BPM Tools Overview Intro to EAI Collaboration And BPM Strategy Practitioner Specialist Ethics Enterprise BPM Case Studies BPM Futures Master Build Business Case Planning the Project Gather Requirements Build Project Team Design Processes Continuous Improvement Implement Change Manage Change Monitor Processes Improvement Methodologies

www.aiim.org/training

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What is BPM?

by Atle Skjekkeland on Feb 12, 2009

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What is BPM? — Presentation Transcript