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Fundamentals of Business Process Management - Tutorial at CAiSE'2018


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Slides of the tutorial "Fundamentals of BPM: Fifty Years of BPM Teaching Distilled" delivered at the 30th International Conference on Advanced Information Systems Engineering (CAiSE'2018) in Tallinn, Estonia, 13 June 2018.

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Fundamentals of Business Process Management - Tutorial at CAiSE'2018

  1. 1. FUNDAMENTALS OF BPM: 50 Years of BPM Teaching Distilled Marlon Dumas (University of Tartu) Marcello La Rosa (University of Melbourne) Jan Mendling (WU University) Hajo Reijers (Vrije Universiteit Amsterdam)
  2. 2. Everything is a Process SEITE 2
  3. 3.  Over 50 years experience in teaching BPM  950 citations since 2013  Adopted in courses at more than 200 universities in more than 60 countries  Available from the library of nearly 450 universities  Used in MOOCs teaching to more than 25,000 students  Over 300 subscriptions to the online instructors group  Translations to Chinese, German, Greek, Persian and Spanish to be published Some Measures of Success SEITE 3
  4. 4. Turbulent Times for many industries
  5. 5. Automational Effect  Makes process faster  Provides scaling  Potential to reduce cost Robotic Process Automation Informational Effect  Provides transparency  Makes processes better visible and understandable Process Mining SLIDE 5 BPM is Changing, too Transformational Effect  Provides new way of coordination with partners  Provides new way of collaboration with partners Blockchains
  6. 6. SLIDE 6 Old Wisdom by Utterback & Abernathy (1975)
  7. 7.  Extended from 399 to 526 pages  Added 2 new chapters, 4 fully-reworked chapters and many refinements  Enriched with 230 exercises  Full coverage of the redesign orbit  New standards like DMN and CMMN covered  Enhanced presentation of monitoring including recent process mining techniques  Holistic discussion of BPM as an enterprise capability Summary of Changes SEITE 7
  8. 8. 1. Introduction to Business Process Management 2. Process Identification 3. Essential Process Modeling 4. Advanced Process Modeling 5. Process Discovery 6. Qualitatitve Process Analysis 7. Quantitative Process Analysis 8. Process Redesign 9. Process-Aware Information Systems 10. Process Implementation with Executable Models 11. Process Monitoring 12. BPM as an Enterprise Capability New Content per Chapter SEITE 8
  9. 9. The BPM Lifecycle SEITE 9
  10. 10.  Process Identification and Value Chain Modeling (Jan Mendling)  Process Redesign Orbit (Hajo Reijers)  Taxonomy of Process Mining Methods (Marlon Dumas)  BPM as an Enterprise Capability (Marcello La Rosa) Important New/Revised Topics SEITE 10
  11. 11. Process Identification and Process Architecture SEITE 11
  12. 12. 1. Designation step • Enumerate main processes • Determine process scope 2. Prioritization step (aka Process selection) Prioritize processes based on: • Importance • Health • Feasibility Process identification steps After Davenport (1993) Process Architecture Prioritized Process Portfolio
  13. 13. Logical Levels Physical Levels BusinessLevelsOperationsLevelsProcessLevels Model structure, methodology and modelling standards Shows groups of related business functions and standard end-to-end processes (e.g. Service Streams) Decomposition of core processes into detailed ‘success model’ business process flows Detailed operational process flows with error conditions and product and geographical variants (where required). Further decomposition of detailed operational where required Process Groupings Business Activities Core Processes Business Process Flows Detailed Process Flows Level A Level B Level C Level D Level E Level F Operational Process Flows Defines business activities Distinguishes operational customer oriented processes from management and strategic process Core processes that combine together to deliver Service Streams and other end- to-end processes Meta Level © British Telecommunications (2005) Generic Process Architecture SLIDE 13 Process Architecture British Telecom Level 1 Level 2 Level 3+ Process Landscape (incl. Value Chains) Business Processes (e.g. BPMN) Sub-processes and Tasks (e.g. BPMN)
  14. 14. Procure Materials Procure Products Market Products Deliver Products Manage Customer Service Sequence Decomposition Specialization Procure Products Handle Job Application Process Parts Assemble Parts Handle Job Application (Austria) Handle Job Application (Germany) Relationships between Processes
  15. 15. Process Landscape Model: Example of Wienerlinien (Vienna Public Transport) SLIDE 15 Manage Enterprise Manage Personnel Management Processes Core Processes Support Processes Communicate in and out Manage Processes Manage Quality Manage Risks and Opportunities Manage Innovation Contact Customer Manage Sales Manage Customer Relationship Operate Vehicles Plan and Buy Vehicles Maintain Vehicles Transport Customer Transport Customer Evaluate Transport Provide Infrastructure Plan Infrastructure Build Infrastructure Maintain Infrastructure Evaluate Infrastructure Check Vehicles Foster Relationship Manage Financials Manage Information Manage Materials Manage Disruptions Provide Winter Service Plan Customer Transport
  16. 16. Example of SAP Process Map SLIDE 16 Manage Enterprise Management Processes Manage Innovation Define, Operationalize, and Track Strategy Attract, Develop, and Retain Workforce Management Processes Core Processes Support Processes Workplace and Infrastructure Provision Procure to Pay Corporate Finance and Operational Compliance Shareholder and Stakeholder Management Sales, Franchise, and Partner Management Innovate Sell Deliver
  17. 17. 1. Clarify terminology 2. Identify end-to-end processes 3. For each end-to-end process, identify its sequential processes 4. For each business process, identify its major management and support processes 5. Decompose and specialize business processes 6. Compile process profile 7. Check completeness and consistency Defining a Process Landscape Model SLIDE 17
  18. 18.  Strategic Importance:  Find out which processes have the greatest impact on the strategic goals.  Consider profitability, uniqueness, or contribution to competitive advantages.  Select those processes for process management that relate to strategy.  Health:  Determine which processes are in deepest trouble.  These processes may profit the most from BPM initiatives.  Feasibility:  Determine how susceptible process is to BPM initiatives, incidentally or continuously.  Culture and politics may be obstacles.  BPM should focus on those processes where it is reasonable to achieve benefits. Selection Criteria SLIDE 18
  19. 19. Importance HealthPoor Good Low High Feasibility Low Medium High Loan Controlling Loan Decision Loan Market Evaluation Contract Prepatation Rating Handling Payments Loan Application Loan Planning Selection Focus Process Portfolio SLIDE 19
  20. 20. Quiz 1: Why should you revise your process architecture?
  21. 21. SLIDE 21 Changes of Strategic Relevance: Mannesmann Sources:, Copyright Uwe Niggemeier,, ebay- 19th century 20th century 1990
  22. 22. Process Redesign Orbit SEITE 22
  23. 23.  Customers  Business Process Operation  Business Process Behavior  Organization  Information  Technology  External Environment The Devil‘s Quadrangle SLIDE 23 Directions for Process Redesign Elements of Redesign
  24. 24. How to do Redesign?
  25. 25. “How to get from the as-is to the to-be [in a redesign project] isn’t explained, so we conclude that during the break, the famous ATAMO procedure is invoked – And Then, A Miracle occurs”. Sharp & McDermott, 2002 SLIDE 25
  26. 26. SLIDE 26 The Process Redesign Orbit
  27. 27. SLIDE 27 The Process Redesign Orbit Low Risk
  28. 28. SLIDE 28 The Process Redesign Orbit Support
  29. 29. SLIDE 29 The Process Redesign Orbit Factual
  30. 30. SLIDE 30 The Process Redesign Orbit Impact
  31. 31. Quiz 2: Name two redesign heuristics and describe their expected outcome on the process.
  32. 32. Process Monitoring SEITE 34
  33. 33. Statistics-Based Techniques Performance Dashboards Model-Based Techniques Process Mining Database Event log Enterprise System Process Monitoring
  34. 34. Process Dashboards Operational dashboards (runtime) Tactical dashboards (historical) Strategic dashboards (historical) Process Monitoring
  35. 35. SLIDE 37 Process Mining
  36. 36. Automated Process Discovery Enter Loan Application Retrieve Applicant Data Compute Installments Approve Simple Application Approve Complex Application Notify Rejection Notify Eligibility CID Task Time Stamp … 13219 Enter Loan Application 2007-11-09 T 11:20:10 - 13219 Retrieve Applicant Data 2007-11-09 T 11:22:15 - 13220 Enter Loan Application 2007-11-09 T 11:22:40 - 13219 Compute Installments 2007-11-09 T 11:22:45 - 13219 Notify Eligibility 2007-11-09 T 11:23:00 - 13219 Approve Simple Application 2007-11-09 T 11:24:30 - 13220 Compute Installements 2007-11-09 T 11:24:35 - … … … … Dependency graph (process map) BPMN process model
  37. 37. Dependency Graphs (a.k.a. Process Maps) A dependency graph of a log is a graph where: • Each activity is represented by one node • An arc from activity A to activity B means that B is directly followed by A in at least one trace in the log Arcs in a dependency graph may be annotated with: • Absolute frequency: How many times B directly follows A? • Relative frequency: What percentage of times A is directly followed by B? • Time: What is the average time between the occurrence of A and the occurrence of B?
  38. 38. Quiz 3: Write the dependency graph (process map) of the following event log. Include absolute frequencies.
  39. 39. Abstraction and Filtering To cope with the complexity of large real-life logs, process maps are often used in conjunction with two operations: 1. Abstract the process map: • Show only most frequent activities • Show only most frequent arcs 2. Filter the traces in the event log • Remove all events that fulfil a condition • Remove traces that fulfil a condition (or traces that do not fulfil a condition)
  40. 40. Alpha miner (α-miner) – Adapted to produce BPMN natively • Simple, limited, not robust Heuristics miner • Robust to noise, fast, often a good tradeoff but can produce incorrect models Inductive miner (ProM v6) • Ensures that models are block-structured & correct Split miner (Apromore) • Balances fitness and precision, produces deadlock-free but not necessarily structured models Discovering BPMN Process Models 42
  41. 41. SLIDE 43 Process Mining
  42. 42.  Dotted charts  Timeline diagrams  Performance-enhanced dependency grahs handoff graphs Performance Mining
  43. 43. Conformance Checking 45 ≠
  44. 44. Conformance Checking Unfitting behaviour: • Task C is optional (i.e. may be skipped) in the log Additional behavior: • The cycle including IGDF is not observed in the log Event log: ABCDEH ACBDEH ABCDFH ACBDFH ABDEH ABDFH
  45. 45. Accuracy of Automated Process Discovery 47 Process Model Log Lack of fitness Lack of precision Lack of generalization Replay fitness for BPMN
  46. 46. Given two logs, find the differences and root causes for variation or deviance between the two logs Variants Analysis ≠
  47. 47.  Model comparison  Log delta analysis Variants Analysis 9 Model Comparison L1 - Short stay 448 cases 7329 events L2 - Long stay 363 cases 7496 events Log Delta Analysis In L1, “Nursing Primary Assessment” is repeated after “Medical Assign” and “Triage Request”, while in L2 it is not…
  48. 48. BPM as an Enterprise Capability SLIDE 50
  49. 49. 51 How do you know that in one year you’ve been successful with BPM?
  50. 50. • a process architecture • a configured modeling tool • a Six Sigma training course • an implemented BPM system  a job description for a process owner Activities, but no guaranteed value The break in the “value” value chain
  51. 51. • Focus on activities, methods & tools, not values • Believing BPM is the single source of truth • Siloed BPM initiatives • No change management plan Typical failure reasons of BPM projects? After de Bruin and Rosemann (2015)
  52. 52. Beyond a single BPM project…The BPM Maturity Model Process monitoring BPM decision making Process performance measures Strategy-driven BPM project planning BPM knowledge Process knowledge Embedding of process values and beliefs Responsiveness to process change Propensity to lead BPM Process collaboration & communication Leadership attention to BPM BPM standards, conventions and guidelines Performance measurement system BPM roles and responsibilities Enterprise Process architecture Strategy and process capability linkage Process customers and stakeholders Process implementation and execution Process analysis and redesign Process identification and discovery Process implementation and execution Process analysis and redesign Process identification and discovery BPM and process training Adherence to process design BPM project and program management Process monitoring BPM project and program management BPM social networks BPM quality controls Governance Methods Strategic Alignment Information Technology People Culture FactorsCapabilityAreas adapted from de Bruin and Rosemann (2015) Strategy and process capability linkage
  53. 53. Maturity Levels in the BPM Maturity Model Level Label Description 5 Optimizing Wide acceptance of BPM methods and tools. CoE no longer needed 4 Quantitatively Managed Focus on performance monitoring, established BPM CoE, well-defined BPM positions 3 Defined Focus on early stages of the BPM lifecycle, combination of various methods and tools. 2 Managed First documented processes, recognition of BPM importance 1 Initial BPM is rarely done or not done.
  54. 54. © QUT – BPM Research Group 14 June 2018 - Slide 56 Example adoption: large insurance company Critical Success Factor Implementation Stages Foundation Capability Business Architecture The Last Mile Strategic Alignment Level 1 Level 1 Level 2 Drive synergies Level 3-4 Group-wide approach Governance Level 1 Level 1 Level 2 IT-wide approach Level 3-4 Group-wide approach Methods Level 2 Workshop and observation methods Level 3 Integrate into System Dev Lifecycle Level 4 Integrate into Enterprise Architecture Level 5 Integrate into Service Architecture Information Technology Level 2 ARIS for modeling Level 3 ARIS for simulation and analytics Level 4 Link to Enterprise Architect Level 5 Link with Enterprise Service Bus and BPMS People Level 1 Establish BPM Team Level 2 Extend into App Dev Team Level 3 Integrate into Ent Arch Team Level 4 Whole organization Culture Level 1 Basic process awareness Level 2 Integrate into IT culture Level 3 Become part of Enterprise planning Level 4 Integrate into org culture Application focus Service focus
  55. 55. Typical Patterns of BPM Adoption Level Label 5 Optimizing 4 Q. Managed 3 Defined 2 Managed 1 Initial
  56. 56. The Business Processes of the Future? SLIDE 58 BPM: from the past to the present to the future
  57. 57. „The extent of computerisation in the twenty-first century will thus partly depend on innovative approaches to task restructuring.” Frey/Osbourne, 2017 SLIDE 59 The Future of BPM is its Past: Innovative Restructuring of Tasks and Coordination
  58. 58. Teaching Strategies Using the Book SEITE 60  Operational BPM: 1-3, 5, 7-9, 11 (4, 12)  Process modeling: 1-5  Process improvement: 1, 6-8  Process automation: 1, 3, 4, 9, 10 (11)  Process analytics: 1, 6-7, 11  Strategic BPM: 1, 12 (2) +… Chapter 1: Intro Chapter 2 Chapters 3-5 Chapters 6-7 Chapter 8Chapters 9-10 Chapter 11 Chapter 12: eBPM
  59. 59.  Request an evaluation copy from Springer:  Check out the supplementary material online:  Register to the online instructors group:!forum/fundamentals-of-bpm Next Steps
  60. 60. Thank you!