The Evolving Business Process Technology Landscape

3,425 views
3,194 views

Published on

Presentation from a half-day seminar at Building Business Capability in Las Vegas, 12 November 2013.

Published in: Technology, Business

The Evolving Business Process Technology Landscape

  1. 1. The Evolving Business Process Technology Landscape Building Business Capability Las Vegas 2013 Sandy Kemsley l www.column2.com l @skemsley
  2. 2. Agenda l Technology overview and case studies l l l l l l Social BPM Dynamic/adaptive case management Process mining Process simulation Predictive process analytics Preparing for emerging BPM technologies l l New ways of working Smarter processes Copyright Kemsley Design Ltd., 2013 2
  3. 3. Technology: Social BPM How Social Changes Everything Copyright Kemsley Design Ltd., 2013 3
  4. 4. Consumer Tools Set Expectations l Consumption l Participation l Creation l User experience l Access anywhere Copyright Kemsley Design Ltd., 2013 4
  5. 5. Social BPM Business Benefits l Weak ties/tacit knowledge exploitation l Knowledge sharing l Social feedback l Transparency l Participation l Activity and decision distribution (crowdsourcing) Copyright Kemsley Design Ltd., 2013 5 Source: Brambilla et al, “A Notation for Social BPM”
  6. 6. Copyright Kemsley Design Ltd., 2013 6
  7. 7. Collaborative Process Modeling l Multiple people participate in process discovery, modeling and documentation l l Internal and external participants Technical and non-technical participants l Preserves institutional memory l Facilitates cross-silo collaboration and innovation Copyright Kemsley Design Ltd., 2013 7
  8. 8. Collaborative Process Modeling Copyright Kemsley Design Ltd., 2013 8
  9. 9. Process Event Streams l Timeline of activity for social monitoring l l l Process models during creation Process instances during execution Publish/subscribe model to “watch” certain processes or event types l Direct link to underlying process model or instance for unsolicited participation l Usually mobile-enabled Copyright Kemsley Design Ltd., 2013 9
  10. 10. Process Event Streams Copyright Kemsley Design Ltd., 2013 10
  11. 11. Case Study: Social BPM Bank Of Tennessee Mortgage Processing Copyright Kemsley Design Ltd., 2013 11
  12. 12. Case Study: Bank Of Tennessee l Service-focused regional bank l Mortgage process before BPM: l l l l l Manual, paper-based Long process with bottlenecks and errors Many exceptions, constantly changing Limited visibility and audit trail Search for social collaboration and BPM platforms merged Copyright Kemsley Design Ltd., 2013 12 Source: Will Barrett, Bank of Tennessee, “Worksocial Pays Dividends”
  13. 13. A Social Mortgage Process Copyright Kemsley Design Ltd., 2013 13
  14. 14. Mobile Mortgages Copyright Kemsley Design Ltd., 2013 14
  15. 15. Bank Of Tennessee: Benefits l ROI based on social and BPM l l l Process activity stream user interface l l l l 30% faster to complete process Reduced errors Unified communication channel Faster, more efficient actions in place Increased adoption/decreased training Improved visibility and audit trail l l Critical SLAs visible for action Entire process within BPM Copyright Kemsley Design Ltd., 2013 15
  16. 16. Technology: Dynamic/Adaptive Case Management The Changing Nature of Work Copyright Kemsley Design Ltd., 2013 16
  17. 17. Goals Of Work Types Routine Work l Efficiency l Accuracy l Process improvement Automation l “Classic” BPM l Routine Work Knowledge Work l Flexibility l Assist human knowledge work l Collect artifacts l Knowledge Work Adaptive/Production/ Dynamic Case Management (ACM/PCM/ DCM) Copyright Kemsley Design Ltd., 2013 17
  18. 18. Characterizing The Extremes Routine Work l A priori process model l Controlled participation l Automatable, especially with service integration, rules and events Knowledge Work l No a priori model l Collaboration on demand l Little automation, but guided by rules and events Copyright Kemsley Design Ltd., 2013 18
  19. 19. The Structured/Unstructured Debate If you can’t model it up front, you just don’t understand the process Exceptions are the new normal: every process is different Copyright Kemsley Design Ltd., 2013 19
  20. 20. But It’s Not That Simple Structured Work l Some process are that repeatable, especially automated processes BUT l Ad hoc process exceptions already exist, they’re just off the grid Unstructured Work l Highly variable processes make modelling inefficient BUT l Instrumentation of unstructured processes provides value Copyright Kemsley Design Ltd., 2013 20
  21. 21. Dynamic Process Runtime l User can add participants from own network or recommended expert l Non-participant can opt-in to process l Audit trail captured within BPMS l Eliminates uncontrolled email processes l Captures patterns for process improvement Copyright Kemsley Design Ltd., 2013 21
  22. 22. Dynamic Process Runtime Copyright Kemsley Design Ltd., 2013 22
  23. 23. Copyright Kemsley Design Ltd., 2013 23
  24. 24. Structure Spectrum Structured • e.g., automated regulatory process Structured with ad hoc exceptions Unstructured with pre-defined fragments • e.g., financial backoffice transactions • e.g., insurance claims Copyright Kemsley Design Ltd., 2013 Unstructured • e.g., investigations 24
  25. 25. Case Study: Adaptive Case Management Norwegian Food Safety Authority Food Safety Inspections Copyright Kemsley Design Ltd., 2013 25
  26. 26. Case Study: NFSA l Ensuring food safety, animal/plant welfare: l l l l l Scheduled inspections and events Emergency response Maintain food safety history Apply complex regulations Case folder with dynamic worklist l l Case = person/establishment, e.g., farm Tasks created dynamically as required, manually or triggered by events Copyright Kemsley Design Ltd., 2013 26 Source: Computas
  27. 27. Copyright Kemsley Design Ltd., 2013 27
  28. 28. NFSA: Dynamic Task Selection Copyright Kemsley Design Ltd., 2013 28
  29. 29. NFSA: Benefits l Entire food safety history for each establishment l Two dynamic case management modes l l Control activity module for regular activities with full domain data Emergency response module with alerts and follow-up tasks Copyright Kemsley Design Ltd., 2013 29
  30. 30. Technology: Process Mining Discovering Hidden Process Gems Copyright Kemsley Design Ltd., 2013 30
  31. 31. Process Mining – Sources Copyright Kemsley Design Ltd., 2013 31
  32. 32. BPMS Event Log Format Trans. ID Activity 8287 Start Time End Time Resource Enter customer 08:34:15 data 08:37:44 User jsmith 8287 Check credit 08:37:52 08:38:05 Equifax service call 1399 Enter customer 08:37:59 data 08:44:40 User sjones 8287 Enter order 08:38:09 08:38:39 ERP system call 1399 Check credit 08:44:58 08:45:06 Equifax service call 4283 Enter order 08:45:01 08:45:35 ERP system call 1399 Enter order 08:45:18 08:45:38 ERP system call Copyright Kemsley Design Ltd., 2013 32
  33. 33. Combining All Event Logs Trans. ID Activity Start Time End Time Resource 8287 Enter customer data 08:34:15 08:37:44 User jsmith 8287 Create customer record 08:34:25 08:35:55 User jsmith 8287 Create address record 08:36:12 08:37:39 User jsmith 8287 Check credit 08:37:52 08:38:05 Equifax service call 8287 Enter order 08:38:09 08:38:39 ERP system call 8287 Check PO 08:38:10 08:38:15 System 8287 Create order 08:38:18 08:38:31 System Copyright Kemsley Design Ltd., 2013 33
  34. 34. Generating A Process Model Copyright Kemsley Design Ltd., 2013 34
  35. 35. Generated Model Data Copyright Kemsley Design Ltd., 2013 35
  36. 36. Working With Process Mining Results l Actual flows, not idealized models l Frequency and duration of each path l Optimization: l l l l Detect main flows and common variations Detect loopbacks and other inefficiencies Detect wait times Analyze variations over time Copyright Kemsley Design Ltd., 2013 36
  37. 37. Case Study: Process Mining AkzoNobel Decorative Paints Procure-To-Pay Process Copyright Kemsley Design Ltd., 2013 37
  38. 38. Case Study: AkzoNobel l Procure-to-pay implemented in SAP l Process variants based on country-specific practices l Need to improve efficiency: l l Remove undesirable variants Incorporate local best practices into global standardized process Copyright Kemsley Design Ltd., 2013 38 Source: Cap Gemini, “Process Mining for Value Extraction”
  39. 39. Extract/Analyze SAP Log Data Copyright Kemsley Design Ltd., 2013 39
  40. 40. AkzoNobel Benefits l Insight into exception processes l Comparison between countries and identification of best practices l Direct insight for process improvements l Compliance control compared to corporate guidelines Copyright Kemsley Design Ltd., 2013 40
  41. 41. Technology: Process Simulation Charting A Course In Uncertain Conditions Copyright Kemsley Design Ltd., 2013 41
  42. 42. Model-Simulate-Analyze-Optimize Copyright Kemsley Design Ltd., 2013 42
  43. 43. Simulation Goals l Test and validate process models l Establish path patterns l Estimate end-to-end times l Optimize resource utilization and SLA performance across peak/slack periods l During runtime, predict performance based on realtime analytics Copyright Kemsley Design Ltd., 2013 43
  44. 44. Simulation in the BPM Lifecycle Copyright Kemsley Design Ltd., 2013 44
  45. 45. Case Study: Process Simulation William Grant & Sons Distillery Vat Scheduling Copyright Kemsley Design Ltd., 2013 45
  46. 46. Case Study: William Grant & Sons l Increased demand and product range exceeded capacity l l l 83 product types 22 process paths Planned $1.2M investment in additional distilling vats Copyright Kemsley Design Ltd., 2013 46 Source: SIMUL8
  47. 47. Simulation Scenarios With Variable Vats, Paths, Rules Copyright Kemsley Design Ltd., 2013 47
  48. 48. William Grant & Sons: Benefits l Identified low utilization rates for production vats l Avoided $1.2 investment through production rescheduling l Planning for simulation-driven scheduling to automate high utilization Copyright Kemsley Design Ltd., 2013 48
  49. 49. Technology: Predictive Process Analytics Smarter Processes for Smarter Outcomes Copyright Kemsley Design Ltd., 2013 49
  50. 50. Why Predictive Processes? “Predictive analytics is not just about forecasting what’s coming down the pike. It’s also about keeping the bad alternative futures from happening.” James Kobielus, Forrester Copyright Kemsley Design Ltd., 2013 50
  51. 51. Process + Analytics + Decisions = Intelligent Processes Business Process Business Rules Business Intelligence Copyright Kemsley Design Ltd., 2013 51
  52. 52. Process Analytics in a BPMS l Executing process l Realtime process dashboard Copyright Kemsley Design Ltd., 2013 52
  53. 53. Critical Path Perspective Select product Pack product Review order and notify customer Ship product and invoice Prepare invoice Jun 3 2012 ID Task Name Start Finish Duration 4 1 Review order and notify customer 04/06/2012 04/06/2012 Order confirmed 05/06/2012 05/06/2012 Select product 05/06/2012 06/06/2012 Pack product 07/06/2012 07/06/2012 3h 5 Prepare invoice 05/06/2012 06/06/2012 1d 3h 6 Ready for shipping 07/06/2012 07/06/2012 0d 7 Ship product and invoice 07/06/2012 08/06/2012 8 2d 4 7 0d 3 6 1d 2 5 4h Copyright Kemsley Design Ltd., 2013 53
  54. 54. Focus On The Goal, Not The Task l Compare: l l l Analyze: l l l Current to baseline model Current to historical Process dependencies and critical path Simulate to identify future problems Act: l l Self-adjust through feedback to decisioning In-process user guidance Copyright Kemsley Design Ltd., 2013 54
  55. 55. Copyright Kemsley Design Ltd., 2013 55
  56. 56. What You Can Do With Process Analytics l Information to support manual decisions l l Data to trigger automated actions l l E.g., display queue sizes to help manager to reallocate work E.g., spawn fraud detection process when series of events occur for same customer Predict missed SLAs l E.g., compare history of activity timeline to estimate overall time to completion Copyright Kemsley Design Ltd., 2013 56
  57. 57. Preparing For The Big Shift: New Ways Of Working Copyright Kemsley Design Ltd., 2013 57
  58. 58. The Future Of Business l Processes need to be: l l l l More engaging More adaptable More transparent Smarter Copyright Kemsley Design Ltd., 2013 58
  59. 59. Participatory Culture l Time and resources explicitly allocated l l l For collaboration For co-creation All stakeholders expected to participate l Appropriate tools provided l Input considered regardless of level and technical skills of participant Copyright Kemsley Design Ltd., 2013 59
  60. 60. Transparency And Openness l Allow internal users to see all information l l Set open as default, override for specific exceptions Allow access to external stakeholders l Customers, business partners should see their own information l Enables easier knowledge dissemination l Provides context for problem-solving and collaboration Copyright Kemsley Design Ltd., 2013 60
  61. 61. Management Style Of Trust l Allow workers to deviate from pre-defined workflow when appropriate l l l Management must allow sufficient autonomy Workers must feel comfortable creating/modifying processes Allow workers to collaborate with resources of their choice l l Assign work or ask assistance Internal and external Copyright Kemsley Design Ltd., 2013 61
  62. 62. Rewards And Incentives l Set expectations for participation l Reward for collaboration and process improvement l Reward for customer service over efficiency l Reward teamwork over individual effort Copyright Kemsley Design Ltd., 2013 62
  63. 63. Preparing For The Big Shift: Smarter Processes Copyright Kemsley Design Ltd., 2013 63
  64. 64. Making Processes Smarter l Add instrumentation to processes and harvest big data l Apply statistical analysis l Understand cause and effect Copyright Kemsley Design Ltd., 2013 64
  65. 65. Summary The Future Of Business l Processes need to be: l l l l More engaging More adaptable More transparent Smarter Copyright Kemsley Design Ltd., 2013 65
  66. 66. Sandy Kemsley Kemsley Design Ltd. email: sandy@kemsleydesign.com blog: www.column2.com twitter: @skemsley Copyright Kemsley Design Ltd., 2013 66

×