2009 11-04 mm (carson, california - csu-dh) bpm introduction

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“Business Process Management – An Introduction”. Introductory presentation given by Mike Marin to Computer Science students at California State University Dominguez Hills in 2009.

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2009 11-04 mm (carson, california - csu-dh) bpm introduction

  1. 1. Business Process Management – An IntroductionMike Marin, IBM Distinguished EngineerMikemarin <at> us.ibm.com 1 © 2009 IBM Corporation
  2. 2. Agenda• Business Process Management Introduction • Application • Workflow • BPM• Smarter Planet• References•Q&A 2 © 2009 IBM Corporation
  3. 3. Traditional Application • Targeted to a single user • Examples • Writing a document • Loan Calculator • Designed to achieve a single task • Developed using a programming language 3 © 2009 IBM Corporation
  4. 4. Workflow Application • Targeted to a team • Involve several specialized users • Managers, editors, agents, clerks, supervisors, etc. • Examples • Document review • Loan Approval • Designed to achieve a complex business goal • Developed using a Workflow Management System • User Interface design • Define how work flow between users • May still require some programming 4 © 2009 IBM Corporation
  5. 5. Workflow model • Defined as an acyclic graph or Petri-net 5 © 2009 IBM Corporation
  6. 6. Work delivered via an Inbox 6 © 2009 IBM Corporation
  7. 7. Business Process Management Application • Targeted to a team or line of business • Examples • Design review • Loan origination • Designed to implement a business process • Process improvement • Developed using a BPM system • User Interface design • Define how work flow between users and applications • Define how to monitor key business metrics • May still require some programming 7 © 2009 IBM Corporation
  8. 8. Remove process logic from the application  Elevate business logic – Liberates processes from application code  Eliminate process latency – Strips out “dead time”  Enforce process integrity – Ensures processes are executed correctly – Reduced errors  Enhance process execution – Liberates processes from manual constraints  Enhance task execution – Maximizes user productivity – Resource pooling; workload balancing 8 © 2009 IBM Corporation
  9. 9. Evolution of Process Technology “The ability to change is far more prized than the ability to create in the first place.” Business Process Management — The Third Wave Howard Smith & Peter Fingar 1st Wave: Taylorism 2nd Wave: Business Process 3rd Wave: Business Process Reengineering Management (BPM)Frederick Taylor’s “Scientific Processes manually re- Facilitating the ability to changeManagement” theory engineered (typically a one time Manage and optimize businessDivision of labour event) processesManagerial control of the Processes implemented via ERP software Perceived as potential next “bigworkplace thing” in consultingCost accounting based on Business & process logic hard-systematic time-and-motion codedstudy Led to EAI (application to application focused) Source: David Knight 9 © 2009 IBM Corporation
  10. 10. What is Business Process Management? Process Optimization Continuous Process Improvement: Measurement, Analysis, Simulation, BAM, Change Management External Process Enablement Process Flow Outside the Enterprise: User Inbox, Customer Interaction, Partner Collaboration Customers Suppliers Partners Application Processes Process Flow for automation among systems: Application Events, Dynamic Data Routing, Automatic Updates Workflow Process Flow for human-to-human work: Task Completion, Work Queues, Content Lifecycle, Forms RoutingSource: Gartner, FileNet 10 © 2009 IBM Corporation
  11. 11. 11 © 2009 IBM Corporation
  12. 12. BPM application development stages Business User Business Analyst IT DeveloperDocument Review & Refine Complete Test & Deploy Diagram Review Configure Test Define Roles Simulate & Simulate & Document Steps Document Steps Define Roles Validate Deploy Deploy Validate Annotate Annotate Define In-baskets Define Diagram Diagram Build UI Build UI 12 © 2009 IBM Corporation
  13. 13. Process Model 13 © 2009 IBM Corporation
  14. 14. Process Simulation 14 © 2009 IBM Corporation
  15. 15. Continuous Process Improvement Process Definition Process Simulation North $8.00 South Pre-processing $7.00 Underwriting $6.00 $5.00 $4.00 $3.00 $2.00 $1.00 $0.00 Actual Simulation Process Analytics 15 © 2009 IBM Corporation
  16. 16. Business Agility Using BPM Change the process model, not the code Processes can easily change to reflect and meet changes in the business Changes are business lead – Process owners are responsible and accountable for process change 16 © 2009 IBM Corporation
  17. 17. Electronic Forms / User interface Human activities Intuitive UI Intelligent documents Field validation DB look-up Automate data capture Eliminate paper 17 © 2009 IBM Corporation
  18. 18. Process Forms – Step User Interface 12345 12345 18 © 2009 IBM Corporation
  19. 19. Microscopic Visibility 11-JUL-2004 13:45 DJONES Task 1 Complete 11-JUL-2004 13:56 MSMITH Task 2 Complete 11-JUL-2004 14:45 DSMITH Task 3 Complete Order Order Generates business events; full audit trail Visibility down to an individual process and tasks Demonstrate compliance Provide “Live” status 19 © 2009 IBM Corporation
  20. 20. Macroscopic Visibility Real-time Workload Higher level – trends Real-time process visibility Volume – Better tactical decisioning Historical process visibility – Better strategic decisioning Tasks 20 © 2009 IBM Corporation
  21. 21. Historical Performance Visibility – Analytics Get reports on process performances Business intelligence (BI) embedded within BPM Make better decisions faster 21 © 2009 IBM Corporation
  22. 22. Business Activity Monitor - BAM Real-time operational visibility & performance management Real-time threshold monitoring & alerts Comprehensive event detection & correlation Aggregate and correlate multiple data sources BPM actions automatically tied to alerts User-configurable dashboards 22 © 2009 IBM Corporation
  23. 23. © 2009 IBM Corporation
  24. 24. The World Is Changing Globalization Complexity Scale Security Energy Information Explosion 24 © 2009 IBM Corporation
  25. 25. Building a Smarter Planet Thinking and acting in new ways to make our systems more efficient, productive and responsive New Green Intelligence and Beyond “Data is exploding and “Our resources are it’s in silos” limited” I Need Insight I Need Efficiency Dynamic Smart Work Infrastructure “New business and “My infrastructure is process demands” inflexible and costly” I Need to Work I Need to Respond Smart Quickly 25 © 2009 IBM Corporation
  26. 26. Smarter Planet ….. Our world is becoming INSTRUMENTED By 2010, 30 billion RFID tags will be embedded into our world and across entire ecosystems Our world is becoming INTERCONNECTED An estimated 2 billion people will be on the Web by 2011 …. and a trillion connected objects – cars, appliances, camera, roadways, pipelines – comprising the “Internet of Things” All things becoming INTELLIGENT Every day, 15 petabytes of new information are being generated. This is 8x more than the information in all U.S. libraries 26 © 2009 IBM Corporation
  27. 27. What Does It Mean to Become Smarter? New Data Sensors and Metering Sensors and Metering  Data collection Event Processing + Real Event Processing + Real Time Data Integration Time Data Integration  Data Integration New Insights Real Time + Historical Real Time + Historical  Comparison of historical data, Data Data with newly collected data Data Modeling + Analytics  Data modeling and analytics to Data Modeling + Analytics create insights from data to feed decision support and actions Process Visualization & Visualization & Innovation Decisions Decisions New and Optimized Business Processes Leading businesses today are benefiting from new sensor data when combined with IBM’s business process management, event processing & business optimization capabilities 27 © 2009 IBM Corporation
  28. 28. Three Levels Of Maturity – Three Levels Of Value 0 1 2 3 4 5Acknowledge Process Intra-Process Inter-Process Enterprise Agile BusinessOperational Aware Automation Automation Valuation StructureInefficiencies and Control and Control Control Generally, where we are today Compare alternatives driven by variousAutomate Begin to process Integrate Directly link optimization techniques in Optimize Create a business identify model and real-time Innovate new process rules to performance businesses, Model and execution framework thatMeasure owners Craft process products, and analyze links businessand monitor business Collaborative automation and valuation to services throughbusiness processes development control across the process an agile businessactivities enterprise, execution structure customers, and trading partners (industry) 28 © 2009 IBM Corporation
  29. 29. References • IBM Academic Initiative • http://www.ibm.com/university • • IBM Students Portal • http://www.ibm.com/university/students • BPM Product Sample • http://www.ibm.com/software/info/bpm 29 © 2009 IBM Corporation
  30. 30. 30 30 © 2009 IBM Corporation

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