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

1. Business Process Management – An Introduction
Mike Marin, IBM Distinguished Engineer
Mikemarin <at> us.ibm.com
1 © 2009 IBM Corporation

2. Agenda
• Business Process Management Introduction
• Application
• Workflow
• BPM
• Smarter Planet
• References
•Q&A
2 © 2009 IBM Corporation

3. Traditional Application
• Targeted to a single user
• Examples
• Writing a document
• Loan Calculator
• Designed to achieve a single task
• Developed using a programming language
3 © 2009 IBM Corporation

4. Workflow Application
• Targeted to a team
• Involve several specialized users
• Managers, editors, agents, clerks, supervisors, etc.
• Examples
• Document review
• Loan Approval
• Designed to achieve a complex business goal
• Developed using a Workflow Management System
• User Interface design
• Define how work flow between users
• May still require some programming
4 © 2009 IBM Corporation

5. Workflow model
• Defined as an acyclic graph or Petri-net
5 © 2009 IBM Corporation

6. Work delivered via an Inbox
6 © 2009 IBM Corporation

7. Business Process Management Application
• Targeted to a team or line of business
• Examples
• Design review
• Loan origination
• Designed to implement a business process
• Process improvement
• Developed using a BPM system
• User Interface design
• Define how work flow between users and applications
• Define how to monitor key business metrics
• May still require some programming
7 © 2009 IBM Corporation

8. Remove process logic from the application
 Elevate business logic
– Liberates processes from application code
 Eliminate process latency
– Strips out “dead time”
 Enforce process integrity
– Ensures processes are executed correctly
– Reduced errors
 Enhance process execution
– Liberates processes from manual
constraints
 Enhance task execution
– Maximizes user productivity
– Resource pooling; workload balancing
8 © 2009 IBM Corporation

9. Evolution of Process Technology
“The ability to change is far
more prized than the ability to
create in the first place.”
Business Process Management — The Third Wave
Howard Smith & Peter Fingar
1st Wave: Taylorism 2nd Wave: Business Process 3rd Wave: Business Process
Reengineering Management (BPM)
Frederick Taylor’s “Scientific Processes manually re- Facilitating the ability to change
Management” theory engineered (typically a one time Manage and optimize business
Division of labour event)
processes
Managerial control of the Processes implemented via
ERP software Perceived as potential next “big
workplace thing” in consulting
Cost accounting based on Business & process logic hard-
systematic time-and-motion coded
study Led to EAI (application to
application focused)
Source: David Knight
9 © 2009 IBM Corporation

10. What is Business Process Management?
Process Optimization
Continuous Process Improvement:
Measurement, Analysis, Simulation, BAM, Change Management
External Process Enablement
Process Flow Outside the Enterprise:
User Inbox, Customer Interaction, Partner Collaboration Customers Suppliers Partners
Application Processes
Process Flow for automation among systems:
Application Events, Dynamic Data Routing, Automatic Updates
Workflow
Process Flow for human-to-human work:
Task Completion, Work Queues, Content Lifecycle, Forms Routing
Source: Gartner, FileNet
10 © 2009 IBM Corporation

11. 11 © 2009 IBM Corporation

12. BPM application development stages
Business User Business Analyst IT Developer
Document Review & Refine Complete Test & Deploy
Diagram Review Configure Test
Define Roles Simulate &
Simulate &
Document Steps
Document Steps Define Roles Validate Deploy
Deploy
Validate
Annotate
Annotate Define In-baskets
Define
Diagram
Diagram Build UI
Build UI
12 © 2009 IBM Corporation

13. Process Model
13 © 2009 IBM Corporation

14. Process Simulation
14 © 2009 IBM Corporation

15. Continuous Process Improvement
Process Definition Process Simulation
North
$8.00
South
Pre-processing
$7.00
Underwriting
$6.00
$5.00
$4.00
$3.00
$2.00
$1.00
$0.00
Actual
Simulation
Process Analytics
15 © 2009 IBM Corporation

16. Business Agility Using BPM
 Change the process model, not
the code
 Processes can easily change
to reflect and meet changes in
the business
 Changes are business lead
– Process owners are
responsible and accountable
for process change
16 © 2009 IBM Corporation

17. Electronic Forms / User interface
 Human activities
 Intuitive UI
 Intelligent documents
 Field validation
 DB look-up
 Automate data capture
 Eliminate paper
17 © 2009 IBM Corporation

18. Process Forms – Step User Interface
12345
12345
18 © 2009 IBM Corporation

19. Microscopic Visibility
11-JUL-2004 13:45 DJONES Task 1 Complete
11-JUL-2004 13:56 MSMITH Task 2 Complete
11-JUL-2004 14:45 DSMITH Task 3 Complete
Order Order
 Generates business events; full audit trail
 Visibility down to an individual process and tasks
 Demonstrate compliance
 Provide “Live” status
19 © 2009 IBM Corporation

20. Macroscopic Visibility
Real-time Workload
 Higher level – trends
 Real-time process visibility
Volume
– Better tactical decisioning
 Historical process visibility
– Better strategic decisioning
Tasks
20 © 2009 IBM Corporation

21. Historical Performance Visibility – Analytics
 Get reports on process
performances
 Business intelligence (BI)
embedded within BPM
 Make better decisions faster
21 © 2009 IBM Corporation

22. Business Activity Monitor - BAM
 Real-time operational visibility &
performance management
 Real-time threshold monitoring &
alerts
 Comprehensive event detection &
correlation
 Aggregate and correlate multiple
data sources
 BPM actions automatically tied to
alerts
 User-configurable dashboards
22 © 2009 IBM Corporation

23. © 2009 IBM Corporation

24. The World Is Changing
Globalization
Complexity
Scale
Security
Energy
Information Explosion
24 © 2009 IBM Corporation

25. Building a Smarter Planet
Thinking and acting in new ways to make our systems
more efficient, productive and responsive
New Green
Intelligence and Beyond
“Data is exploding and “Our resources are
it’s in silos” limited”
I Need Insight I Need Efficiency
Dynamic
Smart Work
Infrastructure
“New business and “My infrastructure is
process demands” inflexible and costly”
I Need to Work I Need to Respond
Smart Quickly
25 © 2009 IBM Corporation

26. Smarter Planet …..
Our world is becoming
INSTRUMENTED By 2010, 30 billion RFID tags will be
embedded into our world and across
entire ecosystems
Our world is becoming
INTERCONNECTED An estimated 2 billion people will be on
the Web by 2011 …. and a trillion
connected objects – cars, appliances,
camera, roadways, pipelines –
comprising the “Internet of Things”
All things becoming
INTELLIGENT
Every day, 15 petabytes of new
information are being generated. This
is 8x more than the information in all
U.S. libraries
26 © 2009 IBM Corporation

27. What Does It Mean to Become Smarter?
New Data Sensors and Metering
Sensors and Metering  Data collection
Event Processing + Real
Event Processing + Real
Time Data Integration
Time Data Integration
 Data Integration
New Insights
Real Time + Historical
Real Time + Historical  Comparison of historical data,
Data
Data with newly collected data
Data Modeling + Analytics
 Data modeling and analytics to
Data Modeling + Analytics create insights from data to feed
decision support and actions
Process Visualization &
Visualization &
Innovation Decisions
Decisions
New and Optimized
Business Processes
Leading businesses today are benefiting from new sensor data when combined with IBM’s
business process management, event processing & business optimization capabilities
27 © 2009 IBM Corporation

28. Three Levels Of Maturity – Three Levels Of Value
0 1 2 3 4 5
Acknowledge Process Intra-Process Inter-Process Enterprise Agile Business
Operational Aware Automation Automation Valuation Structure
Inefficiencies and Control and Control Control
Generally, where we are today Compare
alternatives
driven by
various
Automate Begin to process
Integrate
Directly link optimization
techniques in Optimize
Create a
business
identify model and real-time Innovate new
process rules to performance businesses,
Model and execution framework that
Measure owners Craft process products, and
analyze links business
and monitor business Collaborative automation and valuation to services through
business processes development control across the process an agile business
activities enterprise, execution structure
customers, and
trading partners
(industry)
28 © 2009 IBM Corporation

29. References
• IBM Academic Initiative
• http://www.ibm.com/university
•
• IBM Students Portal
• http://www.ibm.com/university/students
• BPM Product Sample
• http://www.ibm.com/software/info/bpm
29 © 2009 IBM Corporation

30. 30
30 © 2009 IBM Corporation