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.

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.

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!

The automation of manual tasks

Re-engineering the Enterprise

Change Management

Six Sigma

A management methodology

Workflow or BPM technology

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

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

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 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

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!

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

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

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

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

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

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.”

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

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

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

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

“ 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

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…

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

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

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

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

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

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

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

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

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

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)

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

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