The Art of Process Modeling: Theory and Practice Sandy Kemsley Kemsley Design Ltd. www.column2.com

Agenda Goals of process modeling BPM and SOA Process design patterns Business rules and business intelligence Modeling for ROI

Goals of process modeling

BPM and SOA

Process design patterns

Business rules and business intelligence

Modeling for ROI

BPM Goals Efficiency Automating steps and handoffs Integrating systems and data sources Compliance Achieving and proving standardization Agility Changing processes quickly and easily Visibility See what’s happening in a process

Efficiency

Automating steps and handoffs

Integrating systems and data sources

Compliance

Achieving and proving standardization

Agility

Changing processes quickly and easily

Visibility

See what’s happening in a process

Why We Model Business Processes Document current state Identify opportunities for process improvement Driven by other requirements, e.g., compliance, quality management May result in manual process improvement Identify opportunities for process automation What can be automated What should be automated

Document current state

Identify opportunities for process improvement

Driven by other requirements, e.g., compliance, quality management

May result in manual process improvement

Identify opportunities for process automation

What can be automated

What should be automated

Process Thinking Cross-departmental: looking beyond functional silos Optimization of end-to-end process cycle rather than local maxima Focus on creating value for customers/shareholders Enabling agility: built to change, not built to last

Cross-departmental: looking beyond functional silos

Optimization of end-to-end process cycle rather than local maxima

Focus on creating value for customers/shareholders

Enabling agility: built to change, not built to last

Modeling Tools Visio Modeling-only tools ARIS Proforma BPMS vendor modeling/design tool Browser-based Licensed desktop application Free downloadable application

Visio

Modeling-only tools

ARIS

Proforma

BPMS vendor modeling/design tool

Browser-based

Licensed desktop application

Free downloadable application

From Collaboration to Implementation Redraw process model in each environment One-way, one-time export/import from modeling to execution environment Round-tripping between modeling and execution environments Shared model

Redraw process model in each environment

One-way, one-time export/import from modeling to execution environment

Round-tripping between modeling and execution environments

Shared model

BPM and SOA

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

Process Modeling and Design Patterns

Initiating Processes Human intervention External event e.g., content added to repository Invoked as web service

Human intervention

External event

e.g., content added to repository

Invoked as web service

Human-Facing Steps Work type: Transactional Collaborative Participation frequency: Occasional Heads-down Participants outside the firewall Monitoring and governance

Work type:

Transactional

Collaborative

Participation frequency:

Occasional

Heads-down

Participants outside the firewall

Monitoring and governance

System Steps Web service orchestration and legacy application integration Data synchronization Invoke subprocesses Content management integration

Web service orchestration and legacy application integration

Data synchronization

Invoke subprocesses

Content management integration

Role of Content Document-focused: Create, review and approve document Document content does not impact process flow Usually collaborative Document-driven: Complete a transaction based on document content Document content controls process flow

Document-focused:

Create, review and approve document

Document content does not impact process flow

Usually collaborative

Document-driven:

Complete a transaction based on document content

Document content controls process flow

Volume of Work Work assignment methods Work selection methods Granularity and complexity of process governance

Work assignment methods

Work selection methods

Granularity and complexity of process governance

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

Designing a Process

Steps in Modeling/Design Define graphical process flow Define parameters of each step Human-facing System (automated) Identify process triggers Design user interface

Define graphical process flow

Define parameters of each step

Human-facing

System (automated)

Identify process triggers

Design user interface

Define Process Flow Graphical map of process Steps for user or automated tasks Routes between steps Flow control Split/merge type Merge conditions

Graphical map of process

Steps for user or automated tasks

Routes between steps

Flow control

Split/merge type

Merge conditions

Define Step Parameters Data fields, including attachments Human-facing steps: Participant (individual or role) User interface form/tools System steps: Web service call Subprocess call Other custom action

Data fields, including attachments

Human-facing steps:

Participant (individual or role)

User interface form/tools

System steps:

Web service call

Subprocess call

Other custom action

Identify Process Launch Triggers Manual launch External event trigger Invoked as web service

Manual launch

External event trigger

Invoked as web service

Designing the User Interface Work assignment/selection Data display and validation Launch other applications Complex routing rules on exit

Work assignment/selection

Data display and validation

Launch other applications

Complex routing rules on exit

Incremental Implementation Step 1: non-integrated BPM Minimal customization + dashboard Provides process governance and optimization Step 2: integrate critical data synchronization interfaces Reduces data entry/errors Step 3: integrate critical external process interfaces Provides overall process governance

Step 1: non-integrated BPM

Minimal customization + dashboard

Provides process governance and optimization

Step 2: integrate critical data synchronization interfaces

Reduces data entry/errors

Step 3: integrate critical external process interfaces

Provides overall process governance

Business Rules and Business Intelligence

Business Rules and BPM Key to agility in business processes Routing decisions Work assignment Set parameters Changing rules without changing the process Applying rules consistently in processes and other applications

Key to agility in business processes

Routing decisions

Work assignment

Set parameters

Changing rules without changing the process

Applying rules consistently in processes and other applications

Business Intelligence and BPM Key to visibility in business processes Process monitoring and reporting Process analysis and optimization Predictive analytics May contribute to process agility Trigger processes Automate steps based on prior decisions Suggest decision for human task

Key to visibility in business processes

Process monitoring and reporting

Process analysis and optimization

Predictive analytics

May contribute to process agility

Trigger processes

Automate steps based on prior decisions

Suggest decision for human task

BPM + BR + BI Self-learning decisions within processes: Process statistics captured with BI Statistics analyzed and fed back to inform business rules Business rules modify process behavior BR + BI = decision management

Self-learning decisions within processes:

Process statistics captured with BI

Statistics analyzed and fed back to inform business rules

Business rules modify process behavior

BR + BI = decision management

Modeling for ROI

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

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

Summary Analyzing and classifying processes Modeling and designing processes Business rules Business intelligence Return on investment

Analyzing and classifying processes

Modeling and designing processes

Business rules

Business intelligence

Return on investment

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