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Business Process Modeling
 

Business Process Modeling

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Slides from a webinar that I did recently for TIBCO. Full webinar replay with audio available at http://www.tibco.com/mk/2007/bpm-bpm11-jul-07usarc.jsp

Slides from a webinar that I did recently for TIBCO. Full webinar replay with audio available at http://www.tibco.com/mk/2007/bpm-bpm11-jul-07usarc.jsp

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    Business Process Modeling Business Process Modeling Presentation Transcript

    • 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?
    • Kicking it off
      • 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
    • Other considerations
      • 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 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
    • 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
    • Simulation and optimization
      • 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 flow objects
      • Event
      • Activity
      • Gateway
    • BPMN connecting objects
      • Sequence flow
      • Message flow
      • Association
    • BPMN swimlanes
      • Pool
      • Lanes
    • BPMN artifacts
      • 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
    • Improve efficiencies
      • 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
    • Location, location, location
      • 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
    • ROI: increase competitive advantage
      • 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
    • 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
    • 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
    • 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
    • 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
    • Overcoming change resistance
      • 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
    • Questions? Sandy Kemsley Kemsley Design Ltd. www.column2.com