Introduction to Business Process Management

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Business Process Management (BPM) is a management approach to continuously improve processes and achieve organizational objectives through a set of methodologies and technologies. This introduction video to BPM provides definitions, key components, an IT request process example, and methodologies.

Explore more about BPM on http://www.appian.com/
Visit the BPMbasics Learning Center for additional free resources and whitepapers: http://www2.appian.com/bpmbasics

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Introduction to Business Process Management

  1. 1. Introduction to BPMhttp://www.youtube.com/watch?v=8Gq2CfHl7fs sponsored by
  2. 2. Agenda What is BPM? BPM Components A BPM Example BPM Methodologies Where do I get more information?
  3. 3. What is BPM?Business a person, partnership, or corporation engaged in commerce, manufacturing, or a service; profit-seeking enterprise or concern. 1. a systematic series of actions directed to some end.Process 2. a continuous action, operation, or series of changes taking place in a definite manner. 1. the act or manner of managing; handling,Management direction, or control. 2. skill in managing; executive ability. 3. the person or persons controlling and directing the affairs of a business, institution. Source: Dictionary.com
  4. 4. BPM Components A management approach to continuously improve processes and achieve organizational objectives through a set of methodologies and technologies. Input Output People Process
  5. 5. Input: Multiple Types of Process Input Input
  6. 6. People: Process Participants INTERNAL EXTERNAL Supplier Finance Marketing Customer Manager Manager I Financial Financial Marketing Marketing Partner Analyst Analyst Specialist Specialist
  7. 7. Different Types of ProcessesType Continuous Ad HocCharacteristics Predictable Unpredictable Repeatable Variable Uninterrupted SpontaneousExample Payroll Process Expense Report Customer Meeting $278.94 Conference $619.45
  8. 8. Different Types of ProcessesType Simple ComplexCharacteristics Minimal Steps Multiple Steps Few Participants Many Participants No or Minimal Rules Complex Rules Single System Multiple SystemsExample Vacation Request Deduction Management • If [yes] AND [=<$100], then A Approved • If [yes] AND [>=$100], then B • If [no] AND [=<$100], then C • If [no] AND [>=$100], then D Denied • If [no] OR [=$0], then E
  9. 9. Different Types of ProcessesType Short LongCharacteristics Minutes, Hours, Days Weeks and Months Quick Tasks Running Processes Few Dependencies Multiple DependenciesExample New Account Opening Loan Origination Your account Your mortgage loan will be ready in a is pending approval few minutes and should take six to eight weeks
  10. 10. Output: Multiple Types of Process Output Output
  11. 11. BPM Components A management approach to continuously improve processes and achieve organizational objectives through a set of methodologies and technologies. Input Output People Process
  12. 12. BPM IT Request Management ExampleInput
  13. 13. BPM IT Request Management ExamplePeople Requester IT Group Assign toProcess Start IT Group
  14. 14. BPM IT Request Management ExamplePeople Requester IT Group Manager IT Specialist <$100 Issue Approve End Hardware Assign toProcess Start IT Group Send >$100 Manager Denied Email Review
  15. 15. BPM IT Request Management ExampleOutput
  16. 16. BPM IT Request Management ExampleInput OutputPeople Requester IT Group Manager IT Specialist <$100 Issue Approve End Hardware Assign toProcess Start IT Group Manager Send >$100 Review Denied Email
  17. 17. BPM MethodologiesAn approach with principles, procedures, and practices that provide guidelines for designing and executing the different components within Business Process Management. RAD MDA Agile & Scrum
  18. 18. Lean Six Sigma• Define the problem Define• Measure & map existing process• Analyze areas for Control Measure improvement• Improve the process and implement the solution• Control, maintain, and Improve Analyze optimize
  19. 19. International Standards Organization Continuous Improvement of the Quality Management SystemCustomers Customers Management Responsibility Measurement,Satisfaction Resource Analysis, & Management Improvement Output Product Input Product Realization Requirements
  20. 20. IT Infrastructure LibraryIT Service Management (ITSM)• Improve IT services quality• Reduce infrastructure & service costs• Improve service delivery & customer satisfaction• Improve productivity• Improve resource allocation• Improve third party service delivery & quality
  21. 21. Capability Maturity Model Integration • Continuous Process 5. Optimized Improvement • Measured and Controlled 4. Managed • Manage Performance & KPIs • Proactive Process Standardization 3. Defined • Program Initiatives (COE) for the Organization • Manage Processes like Projects 2. Repeatable • Often Reactive • Unpredictable & Reactive1. Initial • Undefined & Poorly Controlled
  22. 22. RAD Rapid Application Development Requirements Planning User Design Construction Cutover Rapid Application Development (RAD) Model
  23. 23. Model-Driven Architecture (MDA)• Open Standards & Vendor-Neutral• Separates Business & Application Logic from Platform Technology• Platform Independent Models• Based on Unified Modeling Language (UML) & other OMG Modeling Standards• Compatible with Web Services, .NET, CORBA, J2EE, & Others http://www.omg.org/mda/
  24. 24. Agile Software Development Vision, Goals, Charter, & Funding Release Plan, Estimation, Backlog Iteration Plan, Review, Retrospective Standup Meetings, Acceptance Build, Collaborate, Integrate, Refactor
  25. 25. Scrum Methodology
  26. 26. BPM MethodologiesAn approach with principles, procedures, and practices that provide guidelines for designing and executing the different components within Business Process Management. Best Practices & Governance A Compelling Higher Team Repeatable RAD Methodology Fosters Performance Success MDA Measurable & Agile & Controllable Scrum Outcomes
  27. 27. 1. Visit BPMbasics Learning Center: http://www.appian.com/bpmbasics/index.jsp2. Subscribe to the BPM Newsletter: http://www.appian.com/campaigns/alert.jsp3. Learn more about BPMS: http://www.appian.com/bpm-software/overview.jsp sponsored by

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