RPA (Robotic Process Automation), POA (Process Oriented Architecture) And BPM (Business Process Management)

1. RPA (Robotic Process Automation), POA (Process Oriented Architecture) And BPM (Business Process Management) Alan McSweeney http://ie.linkedin.com/in/alanmcsweeney

2. Topics • Introduction • RPA – Interfacing With Existing Applications And Processes • RPA Architecture And Implementation • Process Oriented Architecture • RPA, POA And Digital Enablement • Process Analysis • Process Design • Process Transformation And RPA June 25, 2018 2

3. Introduction June 25, 2018 3

4. (Robotic) Process Automation • RPA is concerned with (partially or completely) automating processes • Involves outcome and decision automation • The process is the glue that links the decision-making activities together • Automation needs to focus on processes and their decisions and how to make them consistent, repeatable and autonomous and be able to be performed in real time • Existing applications implement or are used in (operational) processes • RPA is concerned with abstracting the details of these operational processes into partially or fully automated meta- processes June 25, 2018 4

5. RPA, POA (Process Oriented Architecture) And BPM (Business Process Management) – Three Related Topics June 25, 2018 5 RPA Process automation POA Linking process areas to actual (desired) interactions – customer (external interacting party) service journeys through the organisation BPM Disciplined approach to identify, design, execute, document, measure, monitor and control both automated and non-automated business processes to achieve consistent, targeted results aligned with an organisation’s strategic goals

6. Overlapping Technologies And Approaches June 25, 2018 6 Business Process Management (BPM) Business Process Execution Language (BPEL) Business Process Model and Notation (BPMN) Rules Engines/Business Rules Management Systems (BRMS) Specific BRMS Products Specific BPM Products RPA Robotic Process Automation Specific RPA Products POA (Process Oriented Architecture)

7. June 25, 2018 7 Resolve Problems With Existing Process Approach • Symptoms of poor business process management − No standard process/method for addressing how to define business requirements and when to improve business processes − When automation of processes is commissioned, “Business” says that they do not always get what they think they have asked for − The processes used to document and communicate business processes and requirements are neither easy nor documented − Our business programs frequently exist in a culture of reacting to cross-functional problems/emergencies − IT has responsibility for creating and maintaining business process flows, business requirements and business rules

8. Goals Of RPA • Allow existing set of applications be interacted with and controlled • Map complexity to existing applications to simplicity of requesting applications • Single platform for all automation initiatives • Provide an interface to allow interactions be initiated and results obtained • Automate (some of) the interactions with the controlling applications June 25, 2018 8 RPA Existing Applications Requesting Applications

9. Why RPA? − RPA can just be a decorative skin hiding the ugliness of what lies below − RPA just masks inefficiencies of existing applications/organisation structures/processes − RPA just makes a bad situation less bad • All true but the cost of application and organisation transformation and time to achieve it may be too great and too long − Organisation needs a solution now • RPA enables quick deployment of efficient, (semi) automated solutions while longer-term transformational changes are effected • There is always a risk that these long-term changes never happen June 25, 2018 9

10. June 25, 2018 10 Key Business Drivers For RPA And POA • Save money – do things better with optimised processes − Build better new processes faster − Know what you are doing (right or wrong) through current process understanding − Get control of parallel processes by consolidating to core processes − Eliminate non-value added work through automation of manual processes − Business process outsourcing • Implement large systems better • Stay ahead of compliance and regulation • RPA is an opportunity to create value

11. Why Implement RPA? • Reduce manuals errors, improve quality, accuracy and ensure consistency − Automation creates a repeatable process that encapsulates best practices − Avoids manual errors that cause problems and require resolution and rework − Reduced cycle times • Reduce manual effort − Processes operate automatically without the need for manual effort − Increase productivity − Increase throughput • Always available − Process is always ready for work − Respond more quickly − Greater scalability • Collect information − Automated solution captures process information for reporting, analysis and process improvement − Information gives the opportunity for process insight − Greater visibility and control − Reduce risk June 25, 2018 11

12. Characteristics And Requirements Of Process Automation • A workflow-oriented approach to process and decision automation • A repeatable work process involving people and systems with defined and documented activities − Repeatable and repeated consistency • Joins multiple isolated and disconnected applications • Handle and insulate complexity − Systems and process knowledge dispersed throughout the organisation − Not always documented − Documentation not always up-to-date • Processes cross functions and teams − Automation captures this cross-functional knowledge June 25, 2018 12

13. RPA – Interfacing With Existing Applications And Processes June 25, 2018 13

14. Processes And Applications • Process uses application(s) and applications embody processes defined within their processing logic and sequence • Operational processes may be contained entirely within/be implemented by an application or they may exist outside the application June 25, 2018 14 Application Process Application Process Application Process

15. Application Interface Options June 25, 2018 15 Application Databases Applications Application Presentation Pages/Screens Process And Decision Automation, Request Management Application Interface Layer 1 2 4 5 3 Requests and Responses

16. Application Interface And Control Options 1. Interface with existing applications through its presentation layer, simulating keystrokes and screen navigation 2. Avail of APIs/service interfaces provided by applications 3. Use existing service integration/API management layer (SOA/Service Bus or similar) 4. Use scripts to control calling and sequencing of applications 5. Directly update underlying application database • RPA implementations will mix available interface and control options as appropriate • RPA environment provides facilities to enable the use of all available interface options June 25, 2018 16

17. Application Interface Options • Not all interface options will be available for all applications being connected to and interacted with June 25, 2018 17

18. Presentation Layer Integration • This is just a fancy phrase for screen scraping/keystroke simulation − The duct tape of application integration − Lowest common denominator – will work with any application − Non-invasive approach • Uses existing application screens and pages to interact automatically with application • Uses existing application security model • Reuse existing application logic, processing, error handling, data management • Independent of architectures of existing applications • You known it will work (after a fashion) • No process or application changes are needed • This form of integration needs to be aware of the context of the application, identify screens, responses and handle application delays and variable response times • It can be a brittle and sensitive form of integration June 25, 2018 18

19. Presentation Layer Integration • Technique has been in use for more than 20 years: − For example, IBM WebSphere Host Publisher/Rational Host Access Transformation Services (HATS) • Integration works very well with legacy “green screen” applications such as z/OS, iSeries − Structured, consistent and simple layouts − Easy to identify context of screen − Simple behaviour − Undemanding data entry and extraction − (Relatively) straightforward error detection, handling and recovery June 25, 2018 19

20. Presentation Layer Integration – “Green Screen” Applications • Easy to integrate data from screens, navigate through application June 25, 2018 20

21. Presentation Layer Integration – Controlling GUIs • GUI applications are more complex and problematic to control using presentation layer integration − Need to understand the range of controls on a screen/page − More complex application behaviour − Context can be difficult to determine − Navigation can be complicated − Data entry and extraction can be tricky − Error checking, handling and recovery can be challenging June 25, 2018 21 trgWnd = AskItemList(AskMsg, AskList, @tab, @sorted, @single) ;Get chosen window handle hWnd=DllHwnd(trgWnd) ; Some error checking from the help file to make sure we have a valid handle to the target window. hwndChk = DLLhwnd(trgWnd) Spec = cWndGetWndSpec(hwndChk) ; Get the window specification. hWnd = cWndByWndSpec(%Spec%) ; Get the handle by the window specification. if hWnd!=hwndChk ; Make sure the result matches the original handle pause('ERROR!', "Could not get valid handle for %trgWnd% window.%@crlf%Exiting program.") clipput(Spec) goto Cancel endif ;Get maximum number of child levels maxlevel = udfMaxLevelCount( hWnd, 1, 0 ) ;include parent by setting level to one ;Get total number of child windows wincnt = udfWinCount( hWnd, 0 ) ;Initialize database ; Format: ; RowNumber, MaxLevels, ParentCount, [Child1, Child2, Child3, Etc ] , Class , Id , Title , WndStyle, WndStyleEx, ClassStyle staticcols = 9 data = Arrdimension( wincnt, maxlevel + staticcols - 1 ) ; Subtract one because Parent is included in maxlevel ArrInitialize(data, '') ;Get Window data info = udfGetWndInfo( hWnd ) name = ItemExtractCsv( 1, info, 1 ) name = StrReplace( name, @lf, ' ' ) ; 4.0 fix id = ItemExtractCsv( 2, info, 1 ) class = ItemExtractCsv( 3, info, 1 ) wndsytle = ItemExtractCsv( 11, info, 1 ) wndstyleex = ItemExtractCsv( 12, info, 1 ) classstyle = ItemExtractCsv( 13, info, 1 ) ; RowNumber, MaxLevels , ParentCount, [Child1, Child2, Child3, Etc ] , Class , Id , Title , WndStyle, WndStyleEx, ClassStyle data[0, 0] = 0 ;RowNumber data[0, 1] = maxlevel ;MaxLevels data[0, 2] = 0 ;Parent ;data[0, 3] = level ; ;*Ignore* Child Windows data[0, maxlevel+2 ] = class ;Class data[0, maxlevel+3 ] = id ;ID data[0, maxlevel+4 ] = name ;Title data[0, maxlevel+5 ] = wndsytle ;WndStyle data[0, maxlevel+6 ] = wndstyleex ;WndStyleEx data[0, maxlevel+7 ] = classstyle ;ClassStyle ;Initalize Level level = 0 udfGetWinData( hWnd, level, maxlevel, data ) ; Write out CSV the Application DataTemp (C:Documents and SettingsDeanaApplication DataWinBatchTemp) appdatadir = ShortCutDir( 'AppData', 0 , @true ) : 'WinBatchTemp' ;Check if dir exists. it not create it if !DirExist( appdatadir ) then DirMake( appdatadir ) ArrayFilePutCsv( appdatadir : csvfile, data ) ;Run(appdatadir : csvfile, '') ;Run('Notepad.exe', appdatadir : csvfile )

22. APIs/Service Interfaces • Existing applications may provide APIs or expose services or have message queueing interfaces that allow structured communication with them June 25, 2018 22

23. Service Integration • Existing service bus/integration layer may have already abstracted functions of some existing applications and provide communication and interaction facilities June 25, 2018 23

24. Scripting • Scripts can be used to call applications or perform functions as part of the overall process June 25, 2018 24

25. Direct Data Layer Access • The data within the application data stores can be interrogated or updated directly without going through the application • Direct data updates can be problematic as application data logic is bypassed and data integrity can be compromised June 25, 2018 25

26. RPA Architecture And Implementation June 25, 2018 26

27. Process Automation – Designing The Application • This involves designing a meta application that controls one or more existing applications to automate, fully or partially, the interactions with those applications and thus enable the successful operation of the process • Process analysis and design covered in detail later June 25, 2018 27

28. Designing The Meta Application June 25, 2018 28 Task 1 Task 3Task 2 Decide Start Wait Task 4 Task 5 Task 7Task 6 Decide Task 8Task 8 Wait Task 9 Notify End

29. Meta Process Design • The (semi) automated meta process can bypass or conceal the inefficiencies/non-value adding activities of the underlying operational processes • The core principles of process efficiency are: − Collapse – reduce the number of participants and replicated activities − Compress – reduce the number of steps in the process • Covered later in Process Analysis and Process Design topics June 25, 2018 29 Collapse Compress

30. Meta Process Is A Representation Of The Compressed/Collapsed Operational Process(es) • When unnecessary and replicated activities in the operational processes have been removed, you are left with necessary activities that must be incorporated into the meta-process June 25, 2018 30 Collapse Compress

31. Automated Process Maps (Internal) Processes To (External) Process June 25, 2018 31 Abstracted (Automated) Process Organisational Operational Processes Based on Organisation Competency Grouping Process And Decision Automation, Request Management

32. Automated Process Maps (Internal) Processes To (External) Process • The process interaction and automation layer allows the externally presented abstracted (cross-functional) process to be mapped to existing processes and applications and their functions • This external process can be exposed to a wider set of users than can access the underlying applications − Insulates users from the complexity and fragmentation of the underlying applications − Insulates the underlying applications from security and access concerns • Allows you to do what you want rather than what you limited to do based on the constraints of the existing applications June 25, 2018 32

33. RPA Implementation Options • Bottom-Up − Start small, gain understanding and experience, assess suitability, usability and utility • Top-Down − Take an architectural approach, implement standards, tools, create process and application inventory, define application interaction approaches and standards June 25, 2018 33

34. Process Dashboard/ Analytics/ Reporting June 25, 2018 34 RPA Management, Governance, Implementation, Execution And Operational Framework – Idealised High Level Capabilities Process Library Operational Process Usage Data Operational Process Operational Process Process Strategy Design and Development Business Process Design, Testing and Development Process Templates Process Publication/ Deployment Applications Calling/ Requesting Processes Interacting Applications Process Component Library Deployed Process Execution Process Alerting/ Event Management Administration Interface Interaction Layer AccessLayer

35. RPA Management, Governance, Implementation, Execution And Operational Framework – Idealised High Level Capabilities • Describes an architecture for an RPA development, deployment, execution and management solution • Set of components and facilities required to implement and operate organisation-wide scalable RPA applications • Can be used to assess the capabilities of RPA applications June 25, 2018 35

36. RPA Management, Governance, Implementation, Execution And Operational Framework – Idealised High Level Capabilities • Process Strategy Design and Development – provides process analysis capabilities • Business Process Design, Testing and Development – an environment that allows meta-processes be developed and tested − Process Templates – library of templates that can be reused • Process Component Library – library of process components that can be assembled into a developed process • Process Publication/ Deployment - a process for deploying or publishing developed processes to an operational execution environment • Process Library – the library of deployed processes • Deployed Process Execution – the environment that runs deployed processes, manages resources, controls parallelism − Operational Process – a process being executed − Access Layer – manages requests and responses to operational processes using a variety of options: synchronous/asynchronous, request/response, message, direct API − Interaction Layer – manages interactions with external applications being controlled • Interacting Applications – the set of existing applications being controlled or connected with • Applications Calling/Requesting Processes – the applications that are interacting with the meta-processes via the access Layer • Operational Process Usage Data – the set of process execution data collected on executed processes • Process Dashboard/ Analytics/ Reporting – facility to present, report on and analyse operational data • Process Alerting/ Event Management – facility to generate alerts and handle events from executing processes • Administration Interface – facility to manage the operational and executing process environment June 25, 2018 36

37. RPA Implementation Options • Ultimately long-term organisation-wide success and results will require a strategic top-down approach June 25, 2018 37 Option Advantages Disadvantages Bottom Up • See results quickly at low cost • Limited investment in tools • Gain knowledge and experience • Validate approach • Solutions implemented fragile and not efficient, scalable or robust • Not a basis for large-scale operations Top Down • Scalable, robust solutions • Reusable components • Takes a strategic and organisation- wide view of RPA • Manage entire application development and deployment lifecycle • Manage processes in execution • Large investment before results obtained • Strategic approach may mean solution implementation loses flexibility and agility

38. Success Measurement Framework – Three Es June 25, 2018 38 Success Efficacy Efficiency Effectiveness

39. Success Measurement Framework • Efficacy − Are the solutions working? − Are they producing the correct outcomes? − Metrics • Cost of RPA project and cost of operation of replaced processes vs cost of existing processes • Efficiency − Are the solutions operating with the minimum of resources? − Metrics • Staff reduction • Productivity increase • Throughput increase • Effectiveness − Are the solutions contributing to longer-term objectives? − Metrics • Accuracy improvement • Cycle time reduction • Customer satisfaction • Number of automated controls • Assessment of risk reduction June 25, 2018 39

40. Process Oriented Architecture June 25, 2018 40

41. RPA and POA (Process Oriented Architecture) • Individual processes and process areas within an organisational vertical hierarchy represent competencies and associated organisational operational functions and structures designed to handle units of work • These competencies are utilised or invoked in response to requests or events • Competencies/process areas can be shared • A Process Oriented Architecture is a way of linking process areas to actual (desired) interactions – customer (external interacting party) service journeys through the organisation • Allows two views of any process to be maintained and operated − External view – that experienced by user − Internal view – that worked on by the organisational competency • There will always be two views of any process June 25, 2018 41

42. So What Is A Process? • Set of activities triggered by one or more events or statuses, requiring one or more inputs and performed in structured outcome-dependent order or sequence to generate one or more outputs and cause one or more outcomes • Individual activities within the process concerned with making decisions and generating outputs • Process is the self-contained unit that completes a given task • Process can consist of sub-processes and/or activities • Process and its constituent activities, stages and steps can be decomposed into a number of levels of detail, down to the individual atomic level • Process analysis and design is concerned with optimising an existing or new process and focussing on efficiency and adding value • Process is primarily concerned with its outcomes and outputs − Activities and their sequence that generate outcomes and outputs are largely secondary − Activity and sequence view is useful for identifying opportunities for efficiencies, resource optimisation, monitoring progress, collecting volumetric information and detecting problems, duplicated effort, bottlenecks, resource constraints and non value-adding activities June 25, 2018 42

43. So What Is A Process? • A process has nothing to do with value: it should but it does not have to − This is desirable but not mandatory • A defined process can have many attributes • Each activity in a defined process can have many attributes such as: − Required Role/Skill • An instantiated process can have many attributes such as: − Start − End − Process Version − Assigned Priority − Participants and Activities − Outcome(s) − Output(s) June 25, 2018 43

44. Process Decomposition • Processes can be represented at different levels of detail June 25, 2018 44 Process Rules Decisions Trigger(s) Required Input(s) Output(s) Outcome(s)

45. Process Routing • Activities within processes can be linked by routers that direct flow and maintain order based on the values of output(s) and the status of outcome(s) June 25, 2018 45 Activity Trigger(s) Required Input(s) Output(s) Outcome(s) Router Activity Trigger(s) Required Input(s) Output(s) Outcome(s) Activity Trigger(s) Required Input(s) Output(s) Outcome(s)

46. Why Process Architecture And Process Automation? • Increasing velocity of change means that informal, undocumented expertise makes reaction slow, exceptions are only known and understood locally – process architecture ensures knowledge is documented and change can happen quickly • Change to digital operations means that internal processes are exposed – these inefficient processes must be make efficient and external interactions must be masked from the internal complexity June 25, 2018 46

47. Where Does The Meta Process Reside? • The meta process is the idealised method of performing the required work to generate the required outcome if the existing application/process/organisation/technology constraints did not exist • What I would like to do if I could but I currently cannot June 25, 2018 47

48. Processes And Decisions • Decisions are the outcomes of (activities and tasks within) business processes • Business processes define the paths to these outcomes • Process automation is actually concerned with automating decisions within the context of the process flow • Because decisions and processes are closely interwoven it is important to understand both business processes and the decisions they generate June 25, 2018 48

49. Processes, Business Rules, Outcomes, Decisions, Actions June 25, 2018 49 Information Inputs Business Rules ActionsDecisionsOutcomes

50. Business Rules • A business rule defines how inputs are processes to perform actions and make decisions • Business rules (should) describe and contain the intelligence and decision making of the organisation • A process contains and applies multiple business rules • Process automation requires that business rules are defined and applied automatically • Automated processes must be standardised June 25, 2018 50

51. Processes, Business Rules, Outcomes, Decisions, Actions • Processes generate outcomes by applying business rules • Outcomes can be actions performed or decisions made • Process automation means actions or decisions previously made manually are now make automatically June 25, 2018 51

52. Process Automation And Autonomy • Process automation means the actions and decisions contained within the process now occur autonomously • Accuracy becomes very important • Recording of actions and decisions is necessary for auditing • Degrees of automation and autonomy − Attended or assisted automation – partial − Unattended or unassisted automation – complete − RPA supervision – notification of exceptions and alerts June 25, 2018 52

53. Decisions • Operational decisions are core to business operations • Decisions affect what gets done and what does not get done, what proceeds and what does not • They are tactical and focussed, have a narrow scope, are made frequently and are repeated and repeatable • They frequently have to be made quickly or at least within a short and defined interval • Discovering decisions involves identifying and documenting the key business decisions within the organisation • Operational decisions can be crucial to the effective operation of the organisation • The accuracy and speed of operational decisions that can determines if the organisation delivers on its business objectives June 25, 2018 53

54. Existing Operational Processes And Organisation Structures • Operational processes and their enabling applications tend to be structured around (vertical) organisation structures and the existing set of applications • Processes that cross functional boundaries can be poorly integrated and involve repeated data entry and replicated effort • Process architecture, management and automation can address this June 25, 2018 54

55. Process Architecture And Process Automation • Automating the process ensures that it gets executed as designed • Informal processes are a consequence of a lack of standardisation • Critical processes must have end-to-end management • Processes run across organisational functional units • Real-time access to process performance metrics enable process excellence and enables performance and risk management − Automation introduces risk as well as providing a basis for reducing risk • Process management is delivered and enabled through process architecture and process automation and management technologies − Technology is an enabler but it is not everything • Process architecture allows strategies and objectives to be linked to the processes that will deliver them June 25, 2018 55

56. Process Architecture And Process Automation Strategy Evolution June 25, 2018 56 Organisation Business Strategy Organisation Business Architecture Organisation Business Requirements IT Strategy Enterprise Architecture Solution Architecture Process Architecture and Automation Strategy Process Architecture and Automation Programme Process Architecture and Automation Solutions Strategy Planning Implementation BusinessITProgramme

57. Process Architecture And Process Automation Strategy Evolution • The process architecture and process automation initiative proceeds from the organisation’s business strategy and enabling business architecture • The organisation’s IT strategy proceeds from and enables the delivery of the business strategy • The process architecture and process automation programme strategy is developed from the business strategy and business architecture • The process architecture and process automation programme that implements the strategy and its constituent solutions take inputs from enterprise and solution architecture June 25, 2018 57

58. Process Oriented Architecture Maps Actual External Interaction Paths To Organisational Operational Process Competencies June 25, 2018 58 External Interaction Paths – Experience Journeys Organisational Operational Process Competency Grouping

59. Process Oriented Architecture • A Process Oriented Architecture is a way of linking process areas to actual (desired) interactions – customer (external interacting party) service journeys through the organisation • Allows two views of any process to be maintained and operated − External view – that experienced by user − Internal view – that worked on by the organisational competency • There will always be two views of any process • The complexity of internal organisational operational process competency groupings needs to be masked from the customer (external party) • There are discontinuities and disconnections between the natural interaction sequence and the way the organisation responds to these interactions • This leads to differences between customer (external party) expectations and what actually happens • Process Oriented Architecture links organisation competencies to these contact and experience sequences and journeys − Enables end-to-end view, across cross functional and operational areas − It is the glue that bonds customer (external party) interaction sequences with operational processes and structures − Enables straight through processing • Process Oriented Architecture is a key enabler of successful digital transformation June 25, 2018 59

60. External Interacting Parties • An organisation will interact will multiple external parties • Each external party will have a number of interaction paths or journeys • These journeys are the routes of experience of external parties • These routes of experience need to be mapped (as) seamlessly (as possible) to internal organisational operational process competency groupings June 25, 2018 60

61. Process Oriented Architecture Maps Actual External Interaction Paths To Organisational Operational Process Competencies • External Interaction Paths – the natural real life way a customer (external party) interacts with the organisation and avails of the organisation’s products and services • Organisational Operational Process Competency Grouping – the way the organisation structures itself to perform work • There are discontinuities and disconnections between the natural interaction sequence and the way the organisation responds to these interactions • Leads to differences between customer (external party) expectations and what actually happens June 25, 2018 61

62. External Interaction Paths • These represent the Straight Through Processing that the customer (external party) wants to experience • The complexity of internal organisational operational process competency groupings needs to be masked from the customer (external party) June 25, 2018 62

63. Process Oriented Architecture • External interaction paths represent how external parties actually (want to) interact with the organisation − External interaction paths are effectively meta-processes that aggregate individual processes/sub-processes • Process Oriented Architecture links organisation competencies to these contact sequences − Enables end-to-end view, across cross functional and operational areas − It is the glue that bonds customer (external party) interaction sequences with operational processes and structures − Enables straight through processing June 25, 2018 63

64. Three Pillars Of Any Organisation Organisation Strategy, Infrastructure and Product and Service Development Develop strategy, implement governance and management, commit to the enterprise, build technology, communication and resource infrastructure that supports products and services and support functional processes, develop and manage new products and services, manage mergers, acquisitions and divestments, develop and manage strategic business partners and business relationships and the supply chain Operations Implement and operate organisation competencies and associated processes that support the customer operations and management including both day-to-day and operations support and readiness processes and sales management and supplier/partner relationship management including customer acquisition, product and service sales, product and service delivery and billing Organisation Management Basic organisation competencies and associated business processes required to run any organisation - facilities, information technology, financial management, legal management, HR, regulatory management, process, cost and quality management, strategy development and planning, improvement and change and knowledge management June 25, 2018 64

65. Three Pillars Of Any Organisation • Exact organisation profile depends on many factors such as: − The type and mix of products and services the organisation provides − The nature of the customer relationship – known or anonymous − The number of different types of customer − The number and type of external parties interacted with June 25, 2018 65

66. Sample Enterprise Business Process Groups – Generalised Structure June 25, 2018 66 Vision, Strategy, Business Management Core Operational Processes With Cross Functional Linkages Management and Support Processes External Party Facing Processes Supporting Processes

67. Interactions Between Organisation Processes June 25, 2018 67 Core Processes Supporting Processes Management Processes Defines Strategy and Approach for Implementing and Operating Core Operational Processes Defines Strategy and Approach for Implementing and Operating Core Operational Processes External Interacting Parties and Experience Journeys What They Interact With

68. Core Processes Interactions Between Organisation Processes June 25, 2018 68 Business Customer Retail Customer Public Service Provider Dealer Sub- Contractor Agent Regulator Supplier

69. Taking A Process Oriented Architecture Approach • This enables the mapping of external straight through processing to internal organisational operational process competency groupings • Maps the desired customer (external party) experiences to competencies that may cross organisational functional boundaries June 25, 2018 69

70. Sample Organisation Business Process Models – Generalised Structure • Core Operational Processes – drive and operate the organisation, deliver value, support external party interactions • Management and Support Processes – internal processes and associated business functions that enable the operation and delivery of the core operational processes • Vision, Strategy, Business Management – processes that measure, control and optimise the operational and support processes and set the direction of the organisation June 25, 2018 70

71. June 25, 2018 71 Sample Organisation Business Process Models – Generalised Structure Vision, Strategy, Business Management Core Operational Processes With Cross Functional Linkages Management and Support Processes Develop and Manage Products and Services Market and Sell Products and Services Deliver Products and Services Manage Customer Service Human Resource Management and Development Information Technology Management Financial Management Facilities Management Legal, Regulatory, Environment, Health and Safety Management External Relationship and Partner Management Service, Knowledge, Improvement and Change Management Vision and Strategy Business Planning, Merger, Acquisition Governance and Compliance

72. Core And Supporting Processes And Interactions • External parties interact with the organisation’s core business processes • Core business processes may be logical, cross-functional representations of multiple, internal operational processes that may or may not be connected to present a seamless logical view June 25, 2018 72

73. Achieving A Process Oriented Architecture Organisation Competency And Process Definition Customer Experience Journey Definitions Mappings From Experience Journeys To Organisation Competency Process Oriented Architecture June 25, 2018 73

74. Achieving A Process Oriented Architecture • This requires: 1. Structured approach to identifying, categorising and structuring internal organisational operational process competency groupings – use sample process breakdowns as a starting point 2. Customer (external party) experiences journeys identification and definition – take a use case approach 3. Mapping of experiences journeys to internal operational competencies June 25, 2018 74

75. RPA, POA And Digital Enablement June 25, 2018 75

76. Digital Transformation And Enablement Is About … June 25, 2018 76 Moving the organisation from one that is internally focussed around its siloed structures: To one that is focussed on customer (external interacting party) straight-through interactions:

77. External Interactions And Internal Organisation Reality June 25, 2018 77 External Organisation Interactions Internal Organisation Reality

78. Digital Strategy And Digital Transformation • Digital strategy is a statement about the organisation’s digital positioning, operating model, competitors and customer and collaborator needs and behaviour to achieve a direction for innovation, communication, transaction and promotion • Digital transformation is concerned with moving the organisation from its current state to one that involves extending and exposing business processes outside the organisation along the dimensions of: − External Parties Participating in Digital Interaction/Collaboration – who of the many parties in your organisation landscape do you interact with digitally − Numbers and Types of Interactions/ Collaborations and Business Processes Included in Digital Strategy – which types of interactions and associated business processes do you digitally implement − Channels Included in Digital Strategy – what digital channels do you interact over June 25, 2018 78

79. Digital Strategy, Architecture And Transformation June 25, 2018 79 Digital Transformation Digital Strategy Digital Architecture Statement About The Organisation’s Digital Positioning, Operating Model, Competitors And Customer And Collaborator Needs And Behaviour Extending And Exposing Business Processes Outside The Organisation Future State Application, Data and Technology View To Achieve Digital Operating Status

80. Digital Transformation And Underlying Digital Architecture • Is all about enabling technology and its successful implementation and operation including: − Organisation changes − Business process changes • Digital transformation is (very) complex • Management must appreciate the technology focus and the benefits of an enterprise architecture approach • Early involvement of enterprise architecture increases successes and reduces failures • Management must trust and involve enterprise architecture • Enterprise architecture function must accept and rise to the challenge and deliver • Enterprise architecture function must allow its value to be measured June 25, 2018 80

81. Digital Strategy, Architecture And Transformation • Requires process architecture and process automation • External processes are exposed that are representations of internal processes • POA and RPA provide the strategic basis and implementation and operational framework for a digital strategy June 25, 2018 81

82. Sample Digital Process • High-level and simplified example of a utility-type service provider operating in a competitive environment • Every customer (external interacting party) journey/digital process will have a direct sequence indicating success from the organisation’s view and a number of alternate paths June 25, 2018 82

83. Sample Digital Process – Buy, Receive And Pay For A Product/Service June 25, 2018 83 Look For Information / Awareness and Interest Generated Look For Details on Specific Product/ Service/ Offer Receive, Evaluate Offer, Negotiate and Compare Decide To Buy Product/ Service Pass Enrolment, Buy/ Subscribe and Receive Product/ Service Receive and Pay Usage Statements and Bills Query Usage Statement and Bill, Pay Bill Report Fault/ Complaint Upgrade/ Buy Additional Product/ Service/ Respond to Offer Renew, Evaluate Alternatives and Negotiate Decide to Leave/ Cancel Service Accept Counteroffer Do Not Pursue Interest Do Not Accept Offer/ Accept Other Supplier Do Not Pursue Interest Change Mind Before Completing Leave Do Not Complete Cancelled Because of Delivery/ Provision Problems

84. Service Journey/Digital Process And Operational Processes • Multiple alternate routes of service journey/digital process require operational complexity − Element of this can be automated • Service journey is an abstraction of the associated operational processes − POA approach allows mapping of external digital processes to internal operational processes • Operational processes represent organisational competencies • Operational complexity needs to masked from service journeys June 25, 2018 84

85. Sample Customer Service Journey – Phases And Steps June 25, 2018 85 Phase Step Description Research/Consider Look For Information/ Awareness and Interest Generated Look for general information and/or be made aware of the existence of the organisation and its products/services Inquire/Evaluate Look For Details on Specific Product/ Service/ Offer Investigate specific offer or promotion and/or make contact with organisation to get specific details on product/service Receive, Evaluate Offer, Negotiate and Compare Receive and evaluate a specific offer. Negotiate the details of the offer and compare the offer with that from other suppliers/service providers Decide/Negotiate Decide To Buy Product/ Service Make a decision to buy a specific product/service from the selected supplier/service provider Buy/Subscribe Pass Enrolment, Buy/ Subscribe and Receive Product/ Service The customer is successfully setup and passes any checks. Buy the specific product/service, do not change before completion and receive the product/service successfully from the supplier/service provider Use/ Bill and Pay/ Change/ Upgrade/ Complain/Report Fault/ Leave Receive and Pay Usage Statements and Bills, Pay Bill Use the product/service, receive usage information and bills and pay bills Query Usage Statement and Bill Query usage information and bill Report Fault/ Complain Report a fault in the delivery or usage of the product/service or make a complaint Upgrade/ Buy Additional Product/ Service/ Respond to Offer Buy new or additional products/services or respond to upgrade/replace/add offer Renew, Evaluate Alternatives and Negotiate Renew at the end of the contracted period, evaluate alternatives from the current and other organisations and negotiate product/service and price Decide to Leave/ Cancel Service Give notice to leave and cancel service Accept Counteroffer Accept counteroffer and stay with organisation

86. Sample Customer Journey/Digital Process – Organisational Processes Interacted With • The customer (external interacting party) will interact with organisation competency areas/processes during the journey − Primary processes – directly involved in the interaction − Enabling processes – indirectly involved in the interaction, such as support, readiness, management, analysis, reporting June 25, 2018 86

87. Sample Customer Journey – Primary And Secondary Processes June 25, 2018 87 Phase Step Primary Processes Secondary Processes Research/ Consider Look For Information/ Awareness and Interest Generated • Manage Contact • Record, Track, Analyse and Report on Customer Contacts • Manage Information Content and Access Inquire/ Evaluate Look For Details on Specific Product/ Service/ Offer • Respond to Customer and Issue and Distribute Marketing Collateral • Qualify Customer • Track Leads • Manage Prospect Receive, Evaluate Offer, Negotiate and Compare • Negotiate Sales/Contract • Acquire Customer Data • Cross/Up Selling • Develop Sales Proposal • Manage Sales Accounts Decide/ Negotiate Decide To Buy Product/ Service Buy/Subscribe Buy/ Subscribe and Receive Product/ Service • Determine Customer Order Feasibility • Authorise Credit • Complete Customer Order • Issue Customer Orders • Fulfil Order • Track and Manage Customer Order Handling • Report Customer Order Handling • Manage Inventory • Manage Deliveries Use/ Bill and Pay/ Change/ Upgrade/ Complain/ Report Fault/ Leave Receive and Pay Usage Statements and Bills, Pay Bill • Apply Pricing, Discounting, Adjustments and Rebates • Create Customer Bill • Produce and Distribute Bill • Collect Billing Information • Manage Customer Billing • Manage Customer Payments • Manage Customer Debt Collection Query Usage Statement and Bill • Receive and Handle Inquiry • Track Inquiry to Completion • Respond to Query • Record, Track, Analyse and Report on Customer Contacts Report Fault/ Complain • Receive and Handle Fault Report/Complaint • Track Fault Report/Complaint to Completion • Respond to Fault Report/Complaint • Record, Track, Analyse and Report on Customer Contacts Upgrade/ Buy Additional Product/ Service/ Respond to Offer • Manage Contact • Negotiate Sales/Contract • Cross/Up Selling • Develop Sales Proposal • Build Customer Insight • Analyse and Manage Customer Risk • Personalise Customer Profile for Retention and Loyalty • Validate Customer Satisfaction • Manage Information Content and Access Renew, Evaluate Alternatives and Negotiate • Negotiate Sales/Contract • Cross/Up Selling Decide to Leave/ Cancel Service • Manage Termination Accept Counteroffer

88. Primary And Secondary Processes • Operational processes, both primary and secondary, can be invoked multiple times during the service journey June 25, 2018 88

89. Sample Partial Process Decomposition Levels – Buy, Receive And Pay For A Product/Service Buy Product/Service Customer Contact Management Information Request Fulfilment Response Provide Quotation Collect and Validate Requirements Process Information and Create Quotation Issue Quotation Follow-up on QUotation Manage Negotiations Sell Handle and Fulfil Order Billing Bill Invoicing Bill Payments and Receivables Management Bill Inquiry Handling Receive Customer Bill Inquiry Assess Customer Bill Inquiry Authorise Customer Bill Invoice Adjustment Track and Manage Customer Bill Inquiry Resolution Analyse Detailed Bill Inquiry Determine Appropriate Bill Adjustment Record Customer Bill Invoice Adjustment Issue Adjusted Bill Report Customer Bill Inquiry Close Customer Bill Inquiry Handle Payment June 25, 2018 89

90. Process Inputs And Outputs/Outcomes June 25, 2018 90 Buy, Receive And Pay For A Product/Service Trigger(s) Customer Interest Required Input(s) Customer and Product/Service Details Output(s) Delivered and Billed for Product/Service Outcome(s) Customer Buys and Pays for Product/Service

91. Service Journey/Digital Process And Operational Processes June 25, 2018 91 Look For Information/ Awareness And Interest Generated Look For Details on Specific Product/ Service/ Offer Receive, Evaluate Offer, Negotiate and Compare Decide To Buy Product/ Service Pass Enrolment, Buy/ Subscribe and Receive Product/ Service Receive and Pay Usage Statements and Bills Query Usage Statement and Bill, Pay Bill Report Fault/ Complaint Upgrade/ Buy Additional Product/ Service/ Respond to Offer Renew, Evaluate Alternatives and Negotiate Decide to Leave/ Cancel Service Accept Counteroffer Process Oriented Architecture/Robotic Process Automation Layer

92. Mapping Sample Digital Process To RPA Management, Governance, Implementation, Execution And Operational Framework June 25, 2018 92 External Meta Process Internal Systems Mapped To By Meta Process RPA Engine

93. POA High Level Reference Architecture • POA and RPA architectures and components are very similar June 25, 2018 93 Reference Data Manager Enter and Maintain Organisation and Process Reference Data Process Creator and Mapper Create and Maintain Definitions of Operational and Cross- Functional Journey Processes, their Mappings and Their Versions Process Dashboard Provide Role-Based Administration and Management Analysis and Reporting Access to Inflight and Historical Processes Process Manager/ Operator Allow Processes to Be Instantiated and Operated in Response to Requests, Manage Notifications, Alerts and Escalations Process Library and Explorer Maintain Library of Versions of Operational and Cross-Functional Journey Processes and Provide Role-Based Access Process Data Collector Collect and Maintain Information on Instantiated Processes Process Workbench Provide Role-Based Access to Participants in Inflight and Historical Processes

94. POA High Level Reference Architecture • View of what is required to implement and operate a process oriented architecture and the operational components • This requires: 1. Structured approach to identifying, categorising and structuring internal organisational operational process competency groupings 2. Customer (external party) experiences journeys identification and definition 3. Mapping of experiences journeys to internal operational competencies June 25, 2018 94

95. POA High Level Reference Architecture Components June 25, 2018 95 Reference Data Manager Process Creator and Mapper Process Dashboard Process Manager/ Operator Process Library and Explorer Process Data Collector Process Workbench Create Process Definitions – Cross- Functional and Operational Mappings Initiate Processes Based On Triggers, Allocate and Notify Participants 1 2 Allow Processes to be Viewed and Worked on By External and Interval Participants 3 View Status of In Flight Processes 4 Collect Information on Inflight Processes 5

96. Dual View Of Processes June 25, 2018 96 Look For Information/ Awareness And Interest Generated Look For Details on Specific Product/ Service/ Offer Receive, Evaluate Offer, Negotiate and Compare Decide To Buy Product/ Service Pass Enrolment, Buy/ Subscribe and Receive Product/ Service Receive and Pay Usage Statements and Bills Query Usage Statement and Bill, Pay Bill Report Fault/ Complaint Upgrade/ Buy Additional Product/ Service/ Respond to Offer Renew, Evaluate Alternatives and Negotiate Decide to Leave/ Cancel Service Accept Counteroffer External View Internal View External Process View Step Internal Process View Step

97. Process Oriented Architecture And Digital Enablement • The object of digital transformation and enablement is the extension of internal processes to specific parties over specific channels outside the organisation • When you extend business processes outside the organisation, you need to ensure cross-functional/cross- capability operation • External parties are not concerned with process limitations caused by a siloed organisation not operating efficiently • Process Oriented Architecture is a key enabler of successful digital transformation June 25, 2018 97

98. Process Analysis June 25, 2018 98

99. Process Analysis • Structured approach to analysing existing process important to successful RPA implementation June 25, 2018 99

100. June 25, 2018 100 Process Analysis Scope Process Analysis Overview of Process Analysis Purpose of Process Analysis When to Perform Process Analysis Continuous Monitoring Event-Triggered Analysis Process Analysis Roles Preparing to Analyse Processes Choose the Process Scope the Depth of Analysis Choose Analytical Frameworks Performing the Analysis Understanding the Unknown Business Environment Organisational Culture/Context Performance Metrics Customer Interactions Handoffs# Business Rules Capacity Bottlenecks Variation Cost Human Involvement Process Controls Other Factors Gathering Information Analysing the Business Environment Analysing Information Systems Analysing the Process Analysing Human Interactions Document the Analysis Analysis Issues and Considerations

101. June 25, 2018 101 Process Analysis • Process analysis is the first step in establishing a new process or updating an existing process is creating a common understanding of the current state of the process and its alignment with the business objectives − Process is a defined set of sequential or parallel activities or behaviours to achieve a goal − Process analysis is creating an understanding of the activities of the process and measures the success of those activities in meeting the goals • Accomplished through various techniques including mapping, interviewing, simulations and various other analytical techniques and methodologies • May include a study of the business environment and factors that contribute to or interact with the environment such as government or industry regulations, market pressures and competition

102. June 25, 2018 102 Process Analysis • Other factors to be considered − The context of the business − Business strategy − Supply chain (the inputs and outputs of the process), − Customer needs − Organisational culture − Business values − How the process will perform to achieve business goals • Information gained through the analysis should be agreed upon by all those that interact with the process • Should represent what is actually happening and not what is thought or wished to be happening • Unbiased view without placing blame for existing inefficiencies

103. June 25, 2018 103 Purpose Of Process Analysis • Analysis generates the information necessary for the organisation to make informed decisions assessing the activities of the business − Without it, decisions are made based on opinion or intuition rather than documented, validated facts • Due to business change the processes of an organisation can quickly become inconsistent to their original design and no longer meet the needs of the business • Process analysis is an essential tool to show how well the business is meeting its objectives • Creates an understanding of how work (the transformation of inputs to outputs) happens in the organisation

104. June 25, 2018 104 Purpose Of Process Analysis • Analysis generates an understanding and measurement of process effectiveness and its efficiency − Effectiveness of a process is a measurement of achieving the purpose or need for the process whether the process • Meets the needs of the customer • Satisfies the objectives of the business • Is the right process for the current business environment or context • Measuring the efficiency of the process indicates the degree of resources utilised in performing the activities of the process • Measures whether the process is costly, slow, wasteful or has other deficiencies and is a measurement of the performance of the process − Uncovers important facts about how work flows in the organisation − Helps in the design and/or redesign of processes to better meet the goals of the business

105. June 25, 2018 105 Purpose Of Process Analysis • Information generated from analysis includes − Strategy, culture and environment of the organisation that uses the process (why the process exists) − Inputs and outputs of the process − Stakeholders, both internal and external, including suppliers, customers and their needs and expectations − Inefficiencies within the current process − Scalability of the process to meet customer demands − Business rules that control the process and why they must exist − What performance metrics should monitor the process, who is interested in those metrics and what they mean − What activities make up the process and their dependencies across departments and business functions − Improved resource utilisation − Opportunities to reduce constraints and increase capacity • Information becomes a valuable resource to management and leadership to understand how the business is functioning • Help them to make informed decisions on how to adapt to a changing environment • Ensure that the processes running the business are optimal for attaining business objectives

106. June 25, 2018 106 When To Perform Process Analysis • Can be the result of continuous monitoring of processes or can be triggered by specific events − Continuous Monitoring − Event-Triggered Analysis • Strategic Planning • Performance Issues • New Technologies • Startup Venture • Merger/Acquisition • Regulatory Requirements

107. June 25, 2018 107 Continuous Monitoring • Business Process Management is a long-term commitment as part of the business strategy rather than a single activity that is completed and then forgotten • Managing the business by process implies that there are regular and consistent performance metrics that monitor the processes of the organisation • These metrics are routinely reviewed and steps are taken to ensure process performance meets the predetermined goals of the organisation • Eventual goal should be the ability to continuously analyse processes as they are performed through the use of monitoring tools and techniques

108. June 25, 2018 108 Continuous Monitoring • Benefits of continuous analysis − Alerts management to potential poor performance of the process − Help point to the cause of the poor performance such as system deviations, competition, environmental factors, etc. − If the process is not performing, immediate action can be taken to resolve the cause − Real-time feedback through continuous analysis provides a measurement for the human performance and reward systems − Reduces the number of process improvement projects performed, thus saving time and cost associated with those efforts

109. June 25, 2018 109 Event-Triggered Analysis • Strategic Planning − Regular review and update of strategic plans − Survey the market and competitive landscape for new opportunities and establish new goals − Process analysis may need to occur following an update to the strategic plan to re-align the processes to meet the new organisation’s objectives • Performance Issues − Current performance may be declared inadequate for a variety of reasons − Process analysis can assist in determining the reasons for the inadequacies and identify changes that may improve performance • New Technologies − Advancing technologies can improve process performance − Analysis will help create an understanding of how they should be adopted − Process analysis will help the organisation understand how and where new technologies should be applied to gain the maximum benefit to the organisation

110. June 25, 2018 110 Event-Triggered Analysis • Startup Venture − When new ventures or businesses are anticipated need to identify the processes that will be required to successfully deliver the new products and services • Merger/Acquisition − Mergers and acquisitions result in the joining of production and service processes − Process analysis should be performed before the merging of processes to ensure that the combined outcome meets the combined business objectives • Regulatory Requirements − New or changes to existing regulations require the business to modify its processes − Process analysis as part of meeting these requirements will ensure the business is able to meet the requirement change with as little impact to the business as possible

111. June 25, 2018 111 Process Analysis Roles • Process analysis can be performed by a single individual • For larger organisations may require a cross-functional team − Provide a variety of experiences and views of the current state of the process − Result in a better understanding of both the process and the organisation • Important to make sure that enough time has been allocation for the analysis resources to function properly in the assignment • Communicate to the team their responsibilities according to the role that each will play in the process • Have a thorough understanding of the expectations of each member • Agree to commit the time and effort required to make the project a success

112. June 25, 2018 112 Process Analysis Roles • Analyst − Decide the depth and scope of the analysis − How it is analysed − Perform the analysis − Provide documentation and final reports to the stakeholders and executive leadership • Facilitator − Lead process analysis teams with an unbiased view − Objectivity is important to ensure the analysis truly represents the current state − Let the group discover the path through the analytical techniques chosen and through proper management of group dynamics • Subject Matter Experts − Individuals closest to the process with knowledge and expertise − Familiar with both the business and technical infrastructure that supports the process

113. June 25, 2018 113 Preparing To Analyse Processes • Steps − Choose the process − Determine the scope of the depth of analysis − Choose analytical frameworks

114. June 25, 2018 114 Choose The Process • May be competing priorities and several processes that need to be analysed • Agree priority through examining the critical business goals of the organisation − A critical business goal defines why the organisation exists and what controls the success of the organisation − An organisation may have one or more critical business goals • Identify critical business goals • Identify processes supporting those goals • Process performance metrics

115. June 25, 2018 115 Choose The Process Organisation Critical Business Goal Supporting Process Performance Metrics Supporting Process Performance Metrics Supporting Process Performance Metrics Critical Business Goal Supporting Process Performance Metrics Supporting Process Performance Metrics Supporting Process Performance Metrics Critical Business Goal Supporting Process Performance Metrics Supporting Process Performance Metrics Supporting Process Performance Metrics

116. June 25, 2018 116 Choose The Process • Process performance can then be analysed and ranked to understand where the effort for process analysis should be placed • Processes that scored high in both importance to the organisation and severity of current issues are the processes that need the most attention first

117. June 25, 2018 117 Choose The Process Analyse First Low High High Low ImpactontheOrganisation Severity of Issues With Business Process Process A Process B Process C Process D Process G Process E Process F Process H Process I Process J Process K Process L

118. June 25, 2018 118 Determine The Scope Of The Depth Of Analysis • Scoping the depth of the process that is to be analysed is one of the first actions of the analyst or analysis team • Scoping is critical to − Decide how far the project will reach − How much of the organisation it will involve − The impact any changes will have upstream and downstream of the process analysed • May be necessary to interview a variety of individuals in various business functions before making scoping decision • The more business functions and activities included in the analysis project, the more complicated the analysis and the longer it is likely to take • Could break down larger processes and analyse sub-processes in order to optimise time but before doing so must consider the impact of future process improvement projects

119. June 25, 2018 119 Choose Analytical Frameworks • No single right way to perform a business process analysis • Topics to be studied, methods for studying them, tools to be used, etc. are all dependent on the nature of the process and the information available at the time the analysis begins − Some projects may start with a completed, verified model that can be used for analysis • Review and decide which of the methodologies, frameworks or tools should be used • Decide what techniques and tools to use in addition to or as part of the framework • Too much analysis can also hinder the process of creating or re- designing a new process

120. June 25, 2018 120 Performing The Analysis • Understanding the Unknown • Business Environment • Organisational Culture/Context • Performance Metrics • Customer Interactions • Handoffs • Business Rules • Capacity • Bottlenecks • Variation • Cost • Human Involvement • Process Controls • Other Factors • Gathering Information − Interviewing − Observing − Researching • Analysing the Business Environment − Value Chain Analysis − S.W.O.T. • Analysing Information Systems − Information Flow Analysis − Discrete Event Simulation • Analysing the Process − Creating Models − Cost Analysis − Transaction Cost Analysis − Cycle-Time Analysis − Pattern Analysis − Decision Analysis − Distribution Analysis − Root-cause Analysis − Sensitivity Analysis − Risk Analysis • Analysing Human Interactions − Direct Observation − Apprentice Learning − Participatory Video Analysis − Activity Simulation − Workplace Layout Analysis − Resource Allocation Analysis − Motivation and Reward Analysis

121. June 25, 2018 121 Understanding The Unknown • Process of analysis is a process of discovery involving finding answers to a series of questions about the process • Generate data to ensure that any conclusions are based on facts extrapolated from the data and not on hearsay or generalisations

122. June 25, 2018 122 Business Environment • Obtain general understanding of the reason for the process to exist within the business environment − What is the process trying to accomplish? − Why has it been created? − What triggered the analysis? − What are the systems required to support or enable the process and how sustainable are those systems? − Where does it fit into the value chain of the organisation? − Is the process in alignment with the strategic objectives of the organisation? − Does it provide value to the organisation and how critical is it? − How well does it function in the current business environment and how well could it adapt if the environment were to change? − What are the risks to the process (external, environmental or internal) and can the process adapt to survive those risks?

123. June 25, 2018 123 Organisational Culture/Context • Every organisation has a culture that impacts and is impacted by the internal and external processes of that organisation − How work is performed − What motivates the members of the organisation to do the work − By changing the process by which they work, the culture may also change − May lead to unintended consequences as new processes are put into place • Part of the analysis process is to ask questions that will help understand the culture of the organisation and those unwritten rules that determine how and by who work is really accomplished

124. June 25, 2018 124 Organisational Culture/Context • Leadership − Who in the organisation are the influencers and leaders? − Are they in positions of authority? − If they do not agree with the process improvements, will the improvement be successful? • Social Networks − What kind of social networks exist in the organisation? − How will any changes affect those social networks? − If individuals will be displaced as a result of a process change, what would be the anticipated result of these networks? • Personnel Change − Will individuals voluntarily leave the company as a result of the process change? − If so, how will this disrupt the process?

125. June 25, 2018 125 Organisational Culture/Context • Motivation − What is the motivating factor for production? − If the workers are not self-motivated − how does work get done? − What are the incentives that reward work output? − If the success of a process has been measured on quantity as opposed to quality, what will happen if the measurement is shifted to quality? − Will the organisation stop producing to ensure quality? • Change − How will the change affect the leadership training in the organisation? − What is the motivating factor for promotion? − Will the goals for measuring leadership change? − How will the reason for the process change be interpreted by the individuals − effected or responsible for the process? − Is it a sign of weakness in the organisation or strategy?

126. June 25, 2018 126 Performance Metrics • Performance issues can be defined as gaps between how a process is currently performing in relation to how it should be performing • A methodical analysis can help to understand the nature of the gaps, why they exist and how the situation can be rectified • Key element of this understanding is the identification of actionable and auditable metrics that accurately indicate process performance − Metrics will provide indicators as to where and how a process should be adjusted

127. June 25, 2018 127 Performance Metrics • Is the process meeting its performance goals? • Does the process take too long and if so, why and what is the measurement of “too long”? • What could happen to make it worse? • How would we know if the process has improved, i.e., if time is the measurement of the process, can cost be ignored or if cost is the measurement of the process, can time be ignored? • How is data reported about the process, who views this data and what do they do with it? • Where should performance points be recorded so the process is accurately measured and monitored? • Would entering these performance points affect the performance of the process?

128. June 25, 2018 128 Customer Interactions • Understanding the customer interactions with the process is critical to understanding whether the process is a positive factor in the success of the organisation’s value chain • The fewer the number of required interactions between the customer and a given service, the more satisfied the customer

129. June 25, 2018 129 Customer Interactions • Who is the customer, what is his need, why does he choose to participate in the process and could he go elsewhere instead of using this process? • Do customers complain about the process? • How many times does a customer interact with the process? Is it too many? Are there redundancies in the interactions? • How do we know if they are satisfied? • What is the customer's expectation or objective with the process and why does he need the process? • How does the customer want to interact with the process? • If the process supports internal activities, what is the impact or indirect effects to the customer?

130. June 25, 2018 130 Handoffs • Any point in a process where work or information passes from one system, person or group to another is a handoff for that process • Handoffs are very vulnerable to process disconnections and should be analysed closely • Typically, the fewer number of handoffs, the more successful the process • Which of the handoffs are most likely to break down the process? • Questions to ask of each handoff: − Are there any bottlenecks of information or services as a result of handoffs happening too quickly? − Can any handoff be eliminated? − Where do streams of information come together and is the timing accurate?

131. June 25, 2018 131 Business Rules • Business rules create constraints that impact the nature and performance of the process • Help define the performance expectations • Create clear guidelines around these expectations • Often business rules are created without an understanding of why they exist or are so outdated that they no longer apply but because of organisational culture they still are being followed

132. June 25, 2018 132 Business Rules • Do the current business rules cause obstacles by requiring unnecessary approvals, steps or other constraints that should be eliminated? • Are the business rules in alignment with the objectives of the organisation? • Who created the business rules and upon what were they based? • When were the rules created and does their need exist? • If the rules were eliminated, what would be the result? • How flexible is the process to accommodate changes in the business rules?

133. June 25, 2018 133 Capacity • Analysing the capacity of the process tests upper and lower limits and determines whether the resources (machine or human) can appropriately scale to meet the demands − Is the process scalable and if inputs were increased, at what point will the process break down? − What would happen if the process slowed down and what is the cost of the idle time of the process? If idle, can those resources be put to work on other processes? − What happens when the process cannot get supplies and materials quickly enough to meet demand? − If the process speeds up can the consumer of the process handle the increase in production?

134. June 25, 2018 134 Bottlenecks • A bottleneck is a constraint in the process that creates a backlog of work to be done − What is being constrained: information, product, service? − Why does the bottleneck exist, what are the factors contributing to the bottleneck and are these factors people, systems or organisational? − Is it the bottleneck the result of handoffs or lack of information? − Is the bottleneck the result of a resource constraint and what type of resource: human, system or machinery? − Are there unnecessary check points that create the bottleneck that can be eliminated? − If multiple streams are processing information in parallel, do the streams come together at the same time or is one waiting for the other? − Does the process create a backlog upstream or downstream from the process?

135. June 25, 2018 135 Variation • Variation in the process may not be good • Variation slows down the process and requires more resources to properly scale • If the nature of the business requires variation as its core business strategy then look for places where some of the variation can be reduced which could save on the overall cycle time of the process • How much variation is tolerable for the process? − Is variation necessary or desirable? − Where are the points where variation is most likely to occur? Can they be eliminated and if so, what are some recommendations? − Can automation help eliminate variation

136. June 25, 2018 136 Cost • Understanding the cost of the process helps the team understand the value of the process in real money to the organisation − What is the total cost of the process? − Can the process be broken up into small cost allocations? − Is the cost in line with industry best practices? − Is the cost absorbed by the customer directly or is it a cost of business? − Can the cost be reduced through automation or technology improvements? If so, how and by what extent?

137. June 25, 2018 137 Human Involvement • Processes involve either automated activities or activities performed by people • Automated activities generally run consistently and when they do not it is possible to find and correct the situation that is causing the problem • Activities performed by people are more complex as they involve judgment and skill that cannot be automated − People do not always do the same task in the same way

138. June 25, 2018 138 Human Involvement • How much variability is introduced by the human element? Is the variability • tolerable? • Can the action be automated? What would be the result to the process? What would be the result to the human element and to the culture of the organisation? • How complex is the task? What are the skill sets required? How are performers trained for the task? • How do the performers of the task respond to external events during the task? • How does the performer know when the task is done well? What feedback systems are in place to guide the performer? What can the performer do with this feed back – what can he or she change with this knowledge? • Does the performer know where the task lies in the process and what the results of the actions are downstream? Does he /she know what happens before the task? What does the performer do with variations in the inputs for the task? • Can the performer identify variations before the task is completed? • What is the motivation for performing the task or performing the task well? • How much knowledge is available to the performer to accomplish this task? Is it sufficient?

139. June 25, 2018 139 Process Controls • Process controls are put in place to ensure adherence to legal, regulatory or financial constraints or obligations • Process controls are different from control processes − Process controls defines the control − Control processes defines the steps to achieve that control • Questions to assist in understanding what process controls are in place − What are the environmental impacts of the process and do those impacts need to be controlled? − Who are the regulatory or governing agencies that will regulate the process and do they need to be informed of the process change?

140. June 25, 2018 140 Other Factors • Purpose of the discussion topics is to initiate and encourage discussion about the process • Other discussion topics not mentioned will naturally arise during the process analysis and should be explored • Some of the topics noted above might not apply to the process being analysed • The analysis must encompass a variety of techniques and topics to achieve a complete and well rounded understanding of the process

141. June 25, 2018 141 Gathering Information • Next step in the analysis is for the analyst or team to gather as much relevant information about the process and business environment as possible • Types of information gathered depend on the business and process being analysed − The strategic information about the company such as long term strategy, markets, threats, opportunities, etc. − A company's performance in comparison to its peers or benchmarked to other related industries − The rationale for the process analysis and at who's request − The fit of the process into the organisation − The people who should be involved in the process analysis project • Sources of information − Interviews with individuals involved in the process − Performance records/transaction reviews on the process and walkthroughs of the process − Audit reports

142. June 25, 2018 142 Interviewing • Interviews those who are involved in or are associated with the process are an important method of gathering information and preparing for the process analysis − Process owners, internal or external stakeholders (vendors, customers or partners), those who work the process and those who pass inputs to or receive outputs from the process • Face-to-face setting is more productive as they allow for greater dialog and discussion about what is or was actually happening • Group interview performed by a facilitator can also be effective in generating discussion about processes

143. June 25, 2018 143 Observing • Direct observation of the process is an important method of gathering information − Directly observing the systems or observing the human interactions with the process, observing the process will help create an understanding of what the process is actually doing • During an analytical observation of a process, further questions and interviews need to be conducted to better understand a certain point • Interviews and fact finding should take place throughout the analysis process

144. June 25, 2018 144 Researching • Research any documentation or notes regarding the existing process − Written documentation created when the process was created, transaction or audit logs, process diagrams, etc.

145. June 25, 2018 145 Analysing The Business Environment • Before understanding a business process, must also understand how the business and the business environment interact − Includes understanding the market, the external factors affecting that market, the customer's demographics and needs, business strategy, the suppliers and how work transforms to meet the needs of the customers • As the business environment changes over time, so must the organisation's processes • The business analysis helps understand those environmental changes that took place since the process was first created and can help explain the reasons for poor performance of a process − Understanding these relationships is important to understand how processes might need to change • Business environment analysis methods − Value Chain Analysis − SWOT

146. June 25, 2018 146 Value Chain Analysis • Generic value chain model that introduced a sequence of five primary and several support activities that are fairly common through most organisations • Easy to see the relationship of the value chain to standard process management principles: − Inbound logistics (inputs) − Operations (acting on inputs to create value) − Output and distribution logistics (outputs) − Sales, marketing, etc. − Service and support

147. June 25, 2018 147 Value Chain Analysis Operational Processes With Cross Functional Linkages Management and Support Processes Operations Output and Distribution Logistics Marketing and Sales Service and Support Human Resource Management Information Technology Management Financial Management Facilities Management Legal, Regulatory, Environment, Health and Safety Management External Relationship Management Knowledge, Improvement and Change Management Inbound Logistics

148. June 25, 2018 148 Value Chain Analysis • A value chain analysis enables the process analyst to look at the process from a macro view that includes suppliers, vendors, customers, etc. • Identify weaknesses in the process that might occur upstream or downstream from the actual process itself

149. June 25, 2018 149 SWOT (Strengths, Weaknesses, Opportunities and Threats) Analysis • SWOT analysis can assist the analyst in understanding the customer or their target market and what tolerances for process inefficiencies exist for the customer within their market • Most markets, however, do not have a high degree of tolerance for process inefficiency and, therefore, should be considered volatile and highly effected by the process of the organisation • SWOT analysis headings provide a good framework for reviewing strategy, position and direction of a company or business proposition or any idea

150. June 25, 2018 150 Analysing Information Systems • Information systems analysis is possibly the easiest type of analysis to perform as it requires fewer individuals and is easier to base upon fact and not opinion − Information Flow Analysis − Discrete Event Simulation

151. June 25, 2018 151 Information Flow Analysis • Information flow analysis/data flow analysis) seeks to understand how data flows through a system and to understand how those points interact with that data through the process • Data or information followed can be from any number of sources • Interactions with that data, be it system or human, are charted from the beginning point to the end point • Helps uncover bottlenecks, unneeded queues or batches and non- value-added interactions to the data • Assists in uncovering business rules that should or should not be applied based on the data − Include how long the data should be in a valid state before it is archived or destroyed, who is able to see the data, how secure data should be or the reporting processes that need to interact with the data

152. June 25, 2018 152 Discrete Event Simulation • Used to record the time of an event or a change in the state of an event • Event can include the time a customer order was received and when the order was actually shipped • Data derived from this analysis can assist the analyst in discovering bottlenecks and isolating event or activity specific breakdowns • Discrete event simulation can be used when simulating new processes during the design stage of the process improvement project

153. June 25, 2018 153 Analysing The Process • Various analytical tools/approaches are often used to extract information about a process such as how long the process takes, the quantity of product through the process, the cost of the process, etc. • Select and use the most appropriate tools/approaches − Creating Models − Cost Analysis − Transaction Cost Analysis − Cycle-Time Analysis − Pattern Analysis − Decision Analysis − Distribution Analysis − Root-Cause Analysis − Sensitivity Analysis − Risk Analysis

154. June 25, 2018 154 Analysing The Process • Creating Models − Process models are often used to show processes and the various interactions with the process • Cost Analysis − Also known as activity based costing − Analysis is a list of the cost per activity totaled to comprise the cost of the process − Used to gain an understanding and appreciation of the true cost associated with a product or service − Understand the real cost spent on the process so it can be compared to the value in the new process, the goal being decreased costs or if increased efficiency, than the value of the increase in production compared against the cost • Transaction Cost Analysis − Analyse how much time and resources are used for each transaction processed by the application − Can quickly uncover bottlenecks in the application as well as bottlenecks in business processes as they interact with the system • As most processes are dependent on some sort of automated system, the interaction and cost per transaction of the system is critical to understanding the system

155. June 25, 2018 155 Analysing The Process • Cycle-Time Analysis − Looks at the time each activity takes within the process − Each activity is measured from the time the input begins the activity until the activity creates the desired output including the time any subsequent activity begins − Analyse the process in terms of the time the process takes to complete with the goal of reducing that time − Uncover bottlenecks and potential bottlenecks within the process that prevent the process from performing correctly − Assists in discovering non value added activities that do not contribute to the process output • Pattern Analysis − Looks for patterns within the process that can be streamlined into a single sub-process to obtain efficiencies − Systems and activities within organisations tend to mimic themselves within the same organisation − By recognising these patterns in the organisation it is possible to find duplications • Decision Analysis − Examine the relationship between a decision and its outcome − Discover why a process has taken shape over time and assist in creating a new − process

156. June 25, 2018 156 Analysing The Process • Distribution Analysis − Comparison of attribute-based data − Plotted on a chart to show the comparisons of the data points − shape of the distribution curve helps to identify the biggest population of data affected by a particular attribute in the data − Assist in predicting the probability of an outcome − Assist in understanding the degree of variation that exists within the data • Root-Cause Analysis − After the event analysis used to discover what truly caused a given outcome − Finding the root cause for an outcome is not always as easy as it may seem as there may be many contributing factors − Process of finding the root cause includes data gathering, investigation and cause and effect relationship diagramming to eliminate outcomes

157. June 25, 2018 157 Analysing The Process • Sensitivity Analysis − A “what if” analysis that tries to determine the outcome of changes to the parameters or to the activities in a process − Helps understand the quality of the process • Responsiveness − Measurement of how well the process will handle changes to the various parameters of the process such as an increase or decrease of certain inputs, increasing or decreasing the arrival time of certain inputs − Know how quickly the process will flow − How much work the process can handle − Where the bottlenecks will occur given any set of parameters • Variability − Measurement of how the output of the process changes through the varying of parameters in the process − Often, one of the goals in performance improvement is to eliminate variability in the outcome − Knowing how variability in the parameters affects the outcome is an important − step to understanding the process

158. June 25, 2018 158 Analysing The Process • Risk Analysis − Examines the effects of the process under external pressures such as factors affecting the supply chain, thereby having an adverse effect − Aims to consider what would happen to the process should any of these scenarios happen and ultimately what the outcome would be

159. June 25, 2018 159 Analysing Human Interactions • Many processes require some type of direct human involvement to ensure progression of the process • These processes that usually require the most analysis to attain an understanding of the process • Various techniques can be used to assist in creating that understanding − Direct Observation − Apprentice Learning − Participatory Video Analysis − Activity Simulation − Workplace Layout Analysis − Resource Allocation Analysis − Motivation and Reward Analysis

160. June 25, 2018 160 Analysing Human Interactions • Direct Observation − Much can be learned by just watching process performers in action − They are the experts and generally have found efficient ways to do what they have been asked to do within the constraints that have been imposed on them − Primary advantage of direct observation is that the analyst can see the current process firsthand − As a worker may work seamlessly from “transactional based” to “knowledge based” work it may be difficult to observe and document all of the actions and knowledge required for the human interaction − Observation can be a disadvantage causing a slightly altered behaviour by the performer • Does the performer know how what he does impacts the results of the overall process and customer of that process? • Does the performer know what happens in the overall process or is he simply working in a black box • What criteria does he use to know whether at the end of each performance cycle he has done a good job? Could he change anything with that knowledge? Would he want to?

161. June 25, 2018 161 Analysing Human Interactions • Apprentice Learning − The performer teaches the analyst the job which can yield additional detail about the process − By teaching, the performer has cause to think about aspects of the process that might occur subconsciously − By performing the process, the analyst has a greater appreciation for the physical aspects of the activity and can better assess the details of the operation • Participatory Video Analysis − Record with video the actions of the performer − Note that there may be liability and personal intrusion issues with − taping the actions of anyone − Performer can be asked at a later time to narrate the recording, providing additional information about the actions

162. June 25, 2018 162 Analysing Human Interactions • Activity Simulation − Simulation of the activities involved in a process − Step through each activity, observing its inputs, outputs and the business rules that govern its behaviour − Group of process participants each take the role of a process participant and talk through the process − Handoffs from one performer to the next can be observed to ensure all needed inputs are available for the next activity and from what source • Workplace Layout Analysis − Physical analysis of a work place, assembly line or manufacturing floor space − Quickly uncover queuing or batch related bottlenecks, disconnections and duplicated efforts as work items are transferred from one physical location to another − Useful for any process that involves a physical space where activities are performed and handed off between individuals, groups, machines, etc.

163. June 25, 2018 163 Analysing Human Interactions • Resource Allocation Analysis − Study of the resources required to complete each task − Takes into perspective the skills of the resources and abilities of tools or other automated systems in meeting the needs that a process demands − Aims to discover if it is not the process but the resources that are inefficient in working through the process − Seeks to determine why an activity takes a given amount of time − Consider what the resource is capable of accomplishing and asks whether the skills and training are sufficient to perform the activity adequately − Examines whether the resource is constrained − Can uncover bottlenecks that can be improved with little cost or change in infrastructure given the organisation's ability to manage human resource issues • Motivation and Reward Analysis − Examination of the human motivational and reward systems in place for the process − Understanding those motivations and rewards as a process is analysed will help uncover unseen disconnects and bottlenecks in the process − Motivation and reward analysis should also consider what rewards should be in place to positively affect any new process or activity that is introduced

164. June 25, 2018 164 Document The Analysis • Final step in an analysis is the generation of the reports and other documentation • Should clearly present an understanding of the current state but does not and should not need to do more than that • Acts as a formal agreement among those that participated as to the accuracy of the analysis • Forms the basis to present the results of the analysis to management • Contents − Overview of the business environment wherein the process lives − Purpose of the process (why it exists) − Process model (what it does) including inputs to the process and outputs − Gaps in performance of the process (why it needs to be re-engineered) − Reasons and causes for the gaps in the process performance − Redundancies in the process that could be eliminated and the expected savings as a result − Recommended solutions

165. June 25, 2018 165 Analysis Issues And Considerations • Analysis critical success factors, possible practices and some of the pitfalls that should be avoided during a process analysis − Executive Leadership − Organisational Process Maturity − Avoid Designing Solutions − Paralysis from Analysis − Analyse with Metrics − Proper Time and Resource Allocation − Customer Interaction − Benchmarking − Understanding Organisation Culture − Avoiding Blame − Potential Threat − Threat of Obsolescence

166. June 25, 2018 166 Analysis Issues And Considerations • Executive Leadership − Important factor to ensure success during any stage in a process improvement project is the support and direct encouragement of the executive leadership team − Otherwise getting proper funding and necessary resources for the duration of the project will be difficult − Ideally should be the primary driver behind the process improvement project − Should be made aware of and provide full support to the process engineering or improvement project − May be necessary to convince the leadership team of the benefits of a process improvement project through the completion of a few small projects that show the gains in real money to the organisation through effective process reengineering • Organisational Process Maturity − Important to understand the business process maturity of the organisation − Helps define the level of analysis preparation needed − An organisation that is relatively new to the idea of process management will need, first, to be briefed on the concepts of process management − Need to understand the purpose of process management and the benefits it will provide the organisation

167. June 25, 2018 167 Analysis Issues And Considerations • Avoid Designing Solutions − During the analysis process possible solutions to process problems will arise − Members of the analysis team will want to explore these solutions and sometimes begin work immediately on designing that solution − Unwise to create a solution design before completing the analysis − Do not discourage suggestions for solving process problems that are uncovered during the analysis process but park them for later review • Paralysis from Analysis − Possible to do too much analysis − May be a tendency to want to document each minor detail about each activity that happens in a process − Detail can quickly become tedious and those involved in the process improvement team can lose interest − If the analysis is prolonged, members assigned to the project may not have the time necessary to remain dedicated to the project due to other commitments − If it happens it is time for the team to step back and take another look at the goals of the project and to simplify the analysis

RPA (Robotic Process Automation), POA (Process Oriented Architecture) And BPM (Business Process Management)

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RPA (Robotic Process Automation), POA (Process Oriented Architecture) And BPM (Business Process Management)

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