Business Process Modeling Sandy Kemsley Kemsley Design Ltd. www.column2.com

Agenda What’s in your processes? Process modeling notation/standards Modeling for ROI Changing processes = changing job roles

What’s in your processes?

Process modeling notation/standards

Modeling for ROI

Changing processes = changing job roles

What’s in your processes?

Kicking it off Human intervention Scanned document External event Invoked as web service

Human intervention

Scanned document

External event

Invoked as web service

Types of steps/tasks Human-facing: Transactional heads-down Occasional participant Collaboration System: Web service orchestration Legacy application integration Content management integration

Human-facing:

Transactional heads-down

Occasional participant

Collaboration

System:

Web service orchestration

Legacy application integration

Content management integration

Other considerations External participants Process monitoring Collecting analytics data Frequency of process/rule/staff changes

External participants

Process monitoring

Collecting analytics data

Frequency of process/rule/staff changes

A short segue on BPM/SOA BPM: Management practice Tools for automating processes SOA: Architectural philosophy Design standards-based services to access system functionality

BPM:

Management practice

Tools for automating processes

SOA:

Architectural philosophy

Design standards-based services to access system functionality

BPM and SOA Service A Service B Service C Service D Service E Legacy System Database ERP System Process Step 1 Process Step 2 Process Step 3 Process Step 4

BPM and SOA together BPM is the “killer app” for SOA; SOA is the enabling infrastructure for BPM SOA alone only allows you to design and build a set of services BPM alone would require custom coding for each system integration BPM + SOA orchestrates people and services into a business process

BPM is the “killer app” for SOA; SOA is the enabling infrastructure for BPM

SOA alone only allows you to design and build a set of services

BPM alone would require custom coding for each system integration

BPM + SOA orchestrates people and services into a business process

SOA in process modeling Discovering services What services already exist Whether existing services meet the needs Specifying services What new services need to be created What legacy functions need to be wrapped in services

Discovering services

What services already exist

Whether existing services meet the needs

Specifying services

What new services need to be created

What legacy functions need to be wrapped in services

Simulation and optimization Identify key performance indicators Estimate parameters: Arrivals Time per step Participants Cost per step Run and compare scenarios

Identify key performance indicators

Estimate parameters:

Arrivals

Time per step

Participants

Cost per step

Run and compare scenarios

Simulation example

Process modeling standards

Graphical notation standard BPMN (Business Process Modeling Notation) = diagramming standard for drawing business processes Method of communicating processes: Understandable by business users and unambiguous Reduces translation errors between business and IT Easy transition between tools

BPMN (Business Process Modeling Notation) = diagramming standard for drawing business processes

Method of communicating processes:

Understandable by business users and unambiguous

Reduces translation errors between business and IT

Easy transition between tools

BPMN flow objects Event Activity Gateway

Event

Activity

Gateway

BPMN connecting objects Sequence flow Message flow Association

Sequence flow

Message flow

Association

BPMN swimlanes Pool Lanes

Pool

Lanes

BPMN artifacts Data object Group Annotation

Data object

Group

Annotation

BPMN example: exception handling

BPMN example: transaction

BPMN example: funds transfer

Modeling for ROI

Areas of process innovation Automational Informational Sequential Tracking Analytical Geographical Integrative Intellectual Disintermediating Source: Process Innovation, Thomas H. Davenport, 1992

Automational

Informational

Sequential

Tracking

Analytical

Geographical

Integrative

Intellectual

Disintermediating

Improve efficiencies Automate manual work steps Directly integrate data between systems Provide process monitoring and control Automate process statistics gathering and analysis

Automate manual work steps

Directly integrate data between systems

Provide process monitoring and control

Automate process statistics gathering and analysis

Cut out the middle man Provide customer self-service to initiate processes Provide process visibility to customer

Provide customer self-service to initiate processes

Provide process visibility to customer

Location, location, location Share redundant processes between business units Identify steps that can be completed in isolation Automate escalation and handoffs Allow remote work

Share redundant processes between business units

Identify steps that can be completed in isolation

Automate escalation and handoffs

Allow remote work

ROI: reduce costs Reduce manual tasks Reduce error rates Allow customer self-service Reduce compliance costs Reduce time to implement changes Reduce functional redundancy Allow outsourcing

Reduce manual tasks

Reduce error rates

Allow customer self-service

Reduce compliance costs

Reduce time to implement changes

Reduce functional redundancy

Allow outsourcing

ROI: increase competitive advantage Reduce time to market Reduce end-to-end cycle time Improve customer service Increase capacity Improve decision-making

Reduce time to market

Reduce end-to-end cycle time

Improve customer service

Increase capacity

Improve decision-making

Calculating ROI Baseline the “as-is” process Model and simulate “to-be” process Select relevant ROI metrics Select ROI calculation method Calculate best and worst case scenarios

Baseline the “as-is” process

Model and simulate “to-be” process

Select relevant ROI metrics

Select ROI calculation method

Calculate best and worst case scenarios

Common ROI pitfalls Increased capacity does not guarantee increased revenue Cost reduction may require FTE reductions Providing self-service does not guarantee that customers will use it Remote work and outsourcing can have hidden costs

Increased capacity does not guarantee increased revenue

Cost reduction may require FTE reductions

Providing self-service does not guarantee that customers will use it

Remote work and outsourcing can have hidden costs

Classify BPM ROI potential Increased agility to business changes Optimized operational efficiency Process standards compliance Shortened process cycle times Better information for decision-making Reduced complexity of integrating people, processes and existing systems

Increased agility to business changes

Optimized operational efficiency

Process standards compliance

Shortened process cycle times

Better information for decision-making

Reduced complexity of integrating people, processes and existing systems

Changing job roles

BPM supports changing roles Support for change management initiatives Model the new organization Simulate and optimize changes Measure results Enabling more rapid changes Overarching process orchestration and governance Real-time view of organizational processes Agile, business-driven changes

Support for change management initiatives

Model the new organization

Simulate and optimize changes

Measure results

Enabling more rapid changes

Overarching process orchestration and governance

Real-time view of organizational processes

Agile, business-driven changes

BPM causes role changes Business function concerns and benefits: Workers Concerns: job loss Benefits: better job and training Supervisors Concerns: loss of control Benefits: improved team and work management Managers Concerns: failure to achieve ROI Benefits: improved visibility and performance

Business function concerns and benefits:

Workers

Concerns: job loss

Benefits: better job and training

Supervisors

Concerns: loss of control

Benefits: improved team and work management

Managers

Concerns: failure to achieve ROI

Benefits: improved visibility and performance

Overcoming change resistance Communication of plans and impacts Involvement in process modeling Demonstration of new technologies Smaller “quick hit” before tackling radical reengineering

Communication of plans and impacts

Involvement in process modeling

Demonstration of new technologies

Smaller “quick hit” before tackling radical reengineering

Summary Dissecting your process BPMN ROI BPM and role changes

Dissecting your process

BPMN

ROI

BPM and role changes

Questions? Sandy Kemsley Kemsley Design Ltd. www.column2.com