The Art of Process Modeling: Theory and Practice

11,199 views

Published on

Presentation given at a seminar for TIBCO customer in NYC

Published in: Economy & Finance, Technology

The Art of Process Modeling: Theory and Practice

  1. 1. The Art of Process Modeling: Theory and Practice Sandy Kemsley Kemsley Design Ltd. www.column2.com
  2. 2. Agenda <ul><li>Goals of process modeling </li></ul><ul><li>BPM and SOA </li></ul><ul><li>Process design patterns </li></ul><ul><li>Business rules and business intelligence </li></ul><ul><li>Modeling for ROI </li></ul>
  3. 3. BPM Goals <ul><li>Efficiency </li></ul><ul><ul><li>Automating steps and handoffs </li></ul></ul><ul><ul><li>Integrating systems and data sources </li></ul></ul><ul><li>Compliance </li></ul><ul><ul><li>Achieving and proving standardization </li></ul></ul><ul><li>Agility </li></ul><ul><ul><li>Changing processes quickly and easily </li></ul></ul><ul><li>Visibility </li></ul><ul><ul><li>See what’s happening in a process </li></ul></ul>
  4. 4. Why We Model Business Processes <ul><li>Document current state </li></ul><ul><li>Identify opportunities for process improvement </li></ul><ul><ul><li>Driven by other requirements, e.g., compliance, quality management </li></ul></ul><ul><ul><li>May result in manual process improvement </li></ul></ul><ul><li>Identify opportunities for process automation </li></ul><ul><ul><li>What can be automated </li></ul></ul><ul><ul><li>What should be automated </li></ul></ul>
  5. 5. Process Thinking <ul><li>Cross-departmental: looking beyond functional silos </li></ul><ul><li>Optimization of end-to-end process cycle rather than local maxima </li></ul><ul><li>Focus on creating value for customers/shareholders </li></ul><ul><li>Enabling agility: built to change, not built to last </li></ul>
  6. 6. Modeling Tools <ul><li>Visio </li></ul><ul><li>Modeling-only tools </li></ul><ul><ul><li>ARIS </li></ul></ul><ul><ul><li>Proforma </li></ul></ul><ul><li>BPMS vendor modeling/design tool </li></ul><ul><ul><li>Browser-based </li></ul></ul><ul><ul><li>Licensed desktop application </li></ul></ul><ul><ul><li>Free downloadable application </li></ul></ul>
  7. 7. From Collaboration to Implementation <ul><li>Redraw process model in each environment </li></ul><ul><li>One-way, one-time export/import from modeling to execution environment </li></ul><ul><li>Round-tripping between modeling and execution environments </li></ul><ul><li>Shared model </li></ul>
  8. 8. BPM and SOA
  9. 9. A Short Segue on BPM/SOA <ul><li>BPM: </li></ul><ul><ul><li>Management practice </li></ul></ul><ul><ul><li>Tools for automating processes </li></ul></ul><ul><li>SOA: </li></ul><ul><ul><li>Architectural philosophy </li></ul></ul><ul><ul><li>Design standards-based services to access system functionality </li></ul></ul>
  10. 10. BPM and SOA Service A Service B Service C Service D Service E Legacy System Database ERP System Process Step 1 Process Step 2 Process Step 3 Process Step 4
  11. 11. BPM and SOA Together <ul><li>BPM is the “killer app” for SOA; SOA is the enabling infrastructure for BPM </li></ul><ul><ul><li>SOA alone only allows you to design and build a set of services </li></ul></ul><ul><ul><li>BPM alone would require custom coding for each system integration </li></ul></ul><ul><li>BPM + SOA orchestrates people and services into a business process </li></ul>
  12. 12. SOA in Process Modeling <ul><li>Discovering services </li></ul><ul><ul><li>What services already exist </li></ul></ul><ul><ul><li>Whether existing services meet the needs </li></ul></ul><ul><li>Specifying services </li></ul><ul><ul><li>What new services need to be created </li></ul></ul><ul><ul><li>What legacy functions need to be wrapped in services </li></ul></ul>
  13. 13. Process Modeling and Design Patterns
  14. 14. Initiating Processes <ul><li>Human intervention </li></ul><ul><li>External event </li></ul><ul><ul><li>e.g., content added to repository </li></ul></ul><ul><li>Invoked as web service </li></ul>
  15. 15. Human-Facing Steps <ul><li>Work type: </li></ul><ul><ul><li>Transactional </li></ul></ul><ul><ul><li>Collaborative </li></ul></ul><ul><li>Participation frequency: </li></ul><ul><ul><li>Occasional </li></ul></ul><ul><ul><li>Heads-down </li></ul></ul><ul><li>Participants outside the firewall </li></ul><ul><li>Monitoring and governance </li></ul>
  16. 16. System Steps <ul><li>Web service orchestration and legacy application integration </li></ul><ul><ul><li>Data synchronization </li></ul></ul><ul><ul><li>Invoke subprocesses </li></ul></ul><ul><li>Content management integration </li></ul>
  17. 17. Role of Content <ul><li>Document-focused: </li></ul><ul><ul><li>Create, review and approve document </li></ul></ul><ul><ul><li>Document content does not impact process flow </li></ul></ul><ul><ul><li>Usually collaborative </li></ul></ul><ul><li>Document-driven: </li></ul><ul><ul><li>Complete a transaction based on document content </li></ul></ul><ul><ul><li>Document content controls process flow </li></ul></ul>
  18. 18. Volume of Work <ul><li>Work assignment methods </li></ul><ul><li>Work selection methods </li></ul><ul><li>Granularity and complexity of process governance </li></ul>
  19. 19. Other Considerations <ul><li>External participants </li></ul><ul><li>Process monitoring </li></ul><ul><li>Collecting analytics data </li></ul><ul><li>Frequency of process/rule/staff changes </li></ul>
  20. 20. Designing a Process
  21. 21. Steps in Modeling/Design <ul><li>Define graphical process flow </li></ul><ul><li>Define parameters of each step </li></ul><ul><ul><li>Human-facing </li></ul></ul><ul><ul><li>System (automated) </li></ul></ul><ul><li>Identify process triggers </li></ul><ul><li>Design user interface </li></ul>
  22. 22. Define Process Flow <ul><li>Graphical map of process </li></ul><ul><li>Steps for user or automated tasks </li></ul><ul><li>Routes between steps </li></ul><ul><li>Flow control </li></ul><ul><ul><li>Split/merge type </li></ul></ul><ul><ul><li>Merge conditions </li></ul></ul>
  23. 23. Define Step Parameters <ul><li>Data fields, including attachments </li></ul><ul><li>Human-facing steps: </li></ul><ul><ul><li>Participant (individual or role) </li></ul></ul><ul><ul><li>User interface form/tools </li></ul></ul><ul><li>System steps: </li></ul><ul><ul><li>Web service call </li></ul></ul><ul><ul><li>Subprocess call </li></ul></ul><ul><ul><li>Other custom action </li></ul></ul>
  24. 24. Identify Process Launch Triggers <ul><li>Manual launch </li></ul><ul><li>External event trigger </li></ul><ul><li>Invoked as web service </li></ul>
  25. 25. Designing the User Interface <ul><li>Work assignment/selection </li></ul><ul><li>Data display and validation </li></ul><ul><li>Launch other applications </li></ul><ul><li>Complex routing rules on exit </li></ul>
  26. 26. Incremental Implementation <ul><li>Step 1: non-integrated BPM </li></ul><ul><ul><li>Minimal customization + dashboard </li></ul></ul><ul><ul><li>Provides process governance and optimization </li></ul></ul><ul><li>Step 2: integrate critical data synchronization interfaces </li></ul><ul><ul><li>Reduces data entry/errors </li></ul></ul><ul><li>Step 3: integrate critical external process interfaces </li></ul><ul><ul><li>Provides overall process governance </li></ul></ul>
  27. 27. Business Rules and Business Intelligence
  28. 28. Business Rules and BPM <ul><li>Key to agility in business processes </li></ul><ul><ul><li>Routing decisions </li></ul></ul><ul><ul><li>Work assignment </li></ul></ul><ul><ul><li>Set parameters </li></ul></ul><ul><li>Changing rules without changing the process </li></ul><ul><li>Applying rules consistently in processes and other applications </li></ul>
  29. 29. Business Intelligence and BPM <ul><li>Key to visibility in business processes </li></ul><ul><ul><li>Process monitoring and reporting </li></ul></ul><ul><ul><li>Process analysis and optimization </li></ul></ul><ul><ul><li>Predictive analytics </li></ul></ul><ul><li>May contribute to process agility </li></ul><ul><ul><li>Trigger processes </li></ul></ul><ul><ul><li>Automate steps based on prior decisions </li></ul></ul><ul><ul><li>Suggest decision for human task </li></ul></ul>
  30. 30. BPM + BR + BI <ul><li>Self-learning decisions within processes: </li></ul><ul><ul><li>Process statistics captured with BI </li></ul></ul><ul><ul><li>Statistics analyzed and fed back to inform business rules </li></ul></ul><ul><ul><li>Business rules modify process behavior </li></ul></ul><ul><li>BR + BI = decision management </li></ul>
  31. 31. Modeling for ROI
  32. 32. Improve Efficiencies <ul><li>Automate manual work steps </li></ul><ul><li>Directly integrate data between systems </li></ul><ul><li>Provide process monitoring and control </li></ul><ul><li>Automate process statistics gathering and analysis </li></ul>
  33. 33. Cut Out the Middle Man <ul><li>Provide customer self-service to initiate processes </li></ul><ul><li>Provide process visibility to customer </li></ul>
  34. 34. Location, Location, Location <ul><li>Share redundant processes between business units </li></ul><ul><li>Identify steps that can be completed in isolation </li></ul><ul><li>Automate escalation and handoffs </li></ul><ul><li>Allow remote work </li></ul>
  35. 35. ROI: Reduce Costs <ul><li>Reduce manual tasks </li></ul><ul><li>Reduce error rates </li></ul><ul><li>Allow customer self-service </li></ul><ul><li>Reduce compliance costs </li></ul><ul><li>Reduce time to implement changes </li></ul><ul><li>Reduce functional redundancy </li></ul><ul><li>Allow outsourcing </li></ul>
  36. 36. ROI: Increase Competitive Advantage <ul><li>Reduce time to market </li></ul><ul><li>Reduce end-to-end cycle time </li></ul><ul><li>Improve customer service </li></ul><ul><li>Increase capacity </li></ul><ul><li>Improve decision-making </li></ul>
  37. 37. Calculating ROI <ul><li>Baseline the “as-is” process </li></ul><ul><li>Model and simulate “to-be” process </li></ul><ul><li>Select relevant ROI metrics </li></ul><ul><li>Select ROI calculation method </li></ul><ul><li>Calculate best and worst case scenarios </li></ul>
  38. 38. Common ROI Pitfalls <ul><li>Increased capacity does not guarantee increased revenue </li></ul><ul><li>Cost reduction may require FTE reductions </li></ul><ul><li>Providing self-service does not guarantee that customers will use it </li></ul><ul><li>Remote work and outsourcing can have hidden costs </li></ul>
  39. 39. BPM ROI Potential <ul><li>Increased agility to business changes </li></ul><ul><li>Optimized operational efficiency </li></ul><ul><li>Process standards compliance </li></ul><ul><li>Shortened process cycle times </li></ul><ul><li>Better information for decision-making </li></ul><ul><li>Reduced complexity of integrating people, processes and existing systems </li></ul>
  40. 40. Summary <ul><li>Analyzing and classifying processes </li></ul><ul><li>Modeling and designing processes </li></ul><ul><li>Business rules </li></ul><ul><li>Business intelligence </li></ul><ul><li>Return on investment </li></ul>
  41. 41. Questions? Sandy Kemsley Kemsley Design Ltd. www.column2.com

×