BPM Techniques and Tools: A Quick Tour of the BPM Lifecycle

1. BPM Techniques and Tools A Quick 360° Tour of the BPM Lifecycle Marlon Dumas University of Tartu marlon.dumas@ut.ee 1

2. Body of principles, methods and tools to • analyze, • (re-)design, • execute and • monitor business processes, with the aim of improving their performance. What is BPM?

3. Improving Performance (Rummler’s Framework) Financial Human Resources Technology Economy CultureRegulatory Organisation Performance ManagementPerformance Planning Function A Function B Function C Assets & Resources Business Environment Stakeholders Customers Materials Competitors Business Process Business Process Business Process Value 3

4. Efficiency Integration Compliance Internal Quality Networking Agility External The Seven Values of BPM – Rosemann et al. 2011 Transparency M. Rosemann et al., “Value-Driven BPM: Which Values Matter for BPM?”, 2011

5. The BPM lifecycle Process identification Conformance and performance insights Conformance and performance insights Process monitoring and controlling Executable process model Executable process model Process implementation To-be process model To-be process model Process analysis As-is process model As-is process model Process discovery Process architectureProcess architecture Process redesign Insights on weaknesses and their impact Insights on weaknesses and their impact 5

6. What? 1. Identify an organization’s business processes 2. Prioritize their management based on certain criteria Why? 1. Get a broad picture of processes in the org and relations 2. Maximize value of BPM initiatives Process Identification

7. 1. Designation • Enumerate main processes • Determine process scope 2. Prioritization Process Identification After Davenport (1993) Process Architecture Prioritized Process Portfolio

8. Process Enumeration “Most businesses have just three core processes: 1. Sell stuff 2. Deliver stuff 3. Making sure you have stuff to sell and deliver” Geary Rummler

9. Porter: Components of a process architecture Core Processes Management Processes Suppliers/Partners Customers/Stakeholders Support Processes After Michael Porter (1985)

10. Strategic Management Logistics Management Warehouse Management Suppliers Management Management processes Finance Indirect procurement IT HR Core processes Support processes Wholesaler Example: Process Landscape Demand Management Sales Direct procurement Distribution ServiceMarketing

11. Process Scoping Processes are interdependent  insights into interrelations required • Horizontal: upstream – downstream processes • Vertical: main processes – sub-processes • Specialization: general – special product/service Process architecture

12. • Chain of core processes an organization performs to deliver value to customers and stakeholders Horizontal Scoping: Value Chains Procure-to-service

13. Vertical Scoping: Process Hierarchies Processhierarchy Level 1 Process Landscape Level 2 Main Processes (e.g. BPMN) Level 3+ Subprocesses, Tasks (e.g. BPMN) Transparency

14. Financial institution Example: Prioritized Process Landscape Health High Low GoodPoor Short-term action Rating Contract preparation Loan market evaluation Handling of payments Loan application Loan planning Loan controlling Loan decision Feasibility Low High Medium Possible Strategic fit? Transparency

15. The BPM Lifecycle Process identification Conformance and performance insights Conformance and performance insights Process monitoring and controlling Executable process model Executable process model Process implementation To-be process model To-be process model Process analysis As-is process model As-is process model Process discovery Process architectureProcess architecture Process redesign Insights on weaknesses and their impact Insights on weaknesses and their impact 15

16. Modeling notations BPMN DMN Tools Syntax & style checking Model repository management Dictionary & ontologies Process Discovery 16

17. Discovery techniques Interviews, walkthroughs Observation Document analysis, automated process discovery Workshops (e.g. sticky-notes) Modeling guidelines and quality frameworks 7PMG Silver’s BPMN style guidelines SEQUAL framework Process Discovery 17

18. Business process model ERP Senior Finance Officer Finance Department Check Invoice Mismatches Enter Invoice Details mismatch exists no mismatches Block Invoice Invoice received Invoice posted Post Invoice Invoice blocked Invoice InvoiceReport InvoiceInvoice DB 18 Transparency

20. Process analysis techniques Lean Waste analysis Six big losses Bottleneck analysis Six Sigma Value- added analysis Root- cause analysis Pareto analysis Business Analysis SWOT Stakeholder analysis Issue Register Operations Mgnt. Flow Analysis Queuing Analysis Simulation Quality Efficiency

22. Transactional Redesign • Doesn’t put into question the current process structure • Seeks to identify problems and resolve them incrementally, one step at a time • E.g. Business Process Reengineering (BPR) Transformational Redesign • Puts into question the fundamental assumptions and principles of the existing process structure • Aims to radically change the process structure • E.g. Heuristic process redesign Process Redesign Styles

23. Capture information once and at the source Subsume information-processing work into the real work that produces the information Have those who use the output of the process drive the process Put the decision point where the work is performed, and build control into the process … Business Process Reengineering (Hammer) 23 Quality Efficiency

24. • Task elimination • Task composition/decomposition • Triage Task-level • Re-sequencing • Parallelism enhancement Flow-level • Specialization & standardization • Resource optimization • Communication optimization • Automation Process-level Redesign heuristics (Reijers et al.) 24 Cost Quality Time FlexibilityQuality Efficiency Agility

26. Process automation Executable process design BPMS Implementation Enterprise system configuration API Design... Process change management Job redesign Change resistance Performance management planning Training…. Process implementation 26 Quality Efficiency Compliance Transparency Integration

28. Process monitoring Dashboards & Reports Process MiningEvent stream DB 28

29. Process Mining 29 / event log discovered model Discovery Conformance Deviance Difference diagnostics Performance input model Enhanced model event log’ Quality Efficiency Compliance Transparency

30. Efficiency Integration Compliance Internal Quality Networking Agility External Quo Vadis Transparency M. Rosemann et al., “Value-Driven BPM: Which Values Matter for BPM?”, 2011 1980-… TQM Six Sigma 1980… BPR Lean 2000… ISO 9001 Sarbanes-Oxley 1990… Workflow Mngt. SOA RPA 2000-… BPO Open Innovation Customer Journey 2010-… Case Mgnt. Digital Transf. Vertical Integration 1990-… Process Modeling Decision Modeling Customer Journey Mapping

31. Networking Customer intimacy Customer journey analysis Privacy, trust, integrity Blockchain Agility / adaptability Vertical integration Integrated product & process management Offline-to-online integration Digital transformation Rapid lifecycle iteration NESST Personalized conversations Predictive BPM Challenges & Opportunities 31

32. Want to know more? Starts 10 October 2016 Register at: http://moocs.qut.edu.au

BPM Techniques and Tools: A Quick Tour of the BPM Lifecycle

You are reading a preview.

Check these out next

BPM Techniques and Tools: A Quick Tour of the BPM Lifecycle

More Related Content

Slideshows for you (20)

Similar to BPM Techniques and Tools: A Quick Tour of the BPM Lifecycle (20)

More from Marlon Dumas (20)

Recently uploaded (20)