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Bpm nuts & bolts
Business Process Management (BPM) involves modeling and automating cross-departmental business processes. BPM suites provide benefits like streamlined operations, improved efficiency, end-to-end visibility, compliance, agility, and accountability. The BPM lifecycle includes modeling, deployment, execution, monitoring, and optimization of processes. Key components of BPM suites include a process engine to execute models, a process modeler to design processes, a business rules engine, and business activity monitoring for oversight. BPM is applicable across industries like healthcare, travel, manufacturing, and more.
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Bpm nuts & bolts
- 1. Business Process Management Nutsand Bolts Murali Darapureddy
- 2. Contents 1 What is BPM ? 2 Why do you need BPM ? 3 Industry Areas that need BPM 4 BPM Life cycle 5 BPM Flavors 6 BPM Product suite components & Architecture 7 Components description
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- 4. Why do youneed BPM ? Do your processes cross BPM maps inter-departmental or departmental and organizational inter-organizational relationships boundaries making ownership clearly modeling the ownerships responsibilities less clear ? and accountabilities Do you have process BPM suites enable a way to inefficiencies due to lack of configure who is responsible for accountability and clear what ownership ? Are you worried about BPM suites encapsulates best employees inconsistently practices and enforce completing assignments management policies using a built in rule engine
- 5. Why do youneed BPM ? ( Continued.. 2 ) Do you fear that your processes BPM suites enable in-flight process are not adapting to changing modifications so that managers business requirements and can change the business processes hence lacking the agility and underlying rules very quickly Do your processes frequently BPM suites ship with involve documents and forms as documentation and forms well as other structured and management capabilities unstructured content ? Do you lack clear, measurable, BPM suites provide real time metrics for gauging for employee analytics capabilities for assessing performance ? task completion time and other performance metrics
- 6. BPM Benefits inNutshell Streamline Operations & Processes Improved Operational efficiency End to End performnace visibility and Optimizaiton Compliance and Control Agility / Facilitate change Create accountability in processes Drive policies, practices and business constraints
- 7. Business Process ManagementSystem Life Cycle
- 8. Industry areas thatneed BPM Health Care Case Management Admittance processes Compliance with federal and state regulations Managing physician productivity Streamlining customer support services Clinical trails management Case Report form ( CRF ) routing and tracking HIPPA and patient protections compliance FDB & IRB regulatory monitoring Contract research and alliance management Travel and Hospitality Reservations and back office automation Cross process top percentile loyalty Scheduling and capacity Management Customer call center operations
- 9. Industry areas thatneed BPM ( Continued .. 2) Pharmaceutical Industry Clinical Trails Management Case Report form ( CRF ) routing and tracking Mutli-channel client service Event marketing Logistics Government Case Management / Audit Management eGrants Budget Approvals Dispute and Exception Management Call Center Services
- 10. Industry areas thatneed BPM ( Continued .. 3) Financial Services Loan Origination Account Opening Statement Presentment Deal Management Credit and Suspense Mgt Automated correspondence and advice generation Payments investigations and exception Mgt Securities Investigations and exception Mgt Insurance New business acquisition Underwriting Claims processing Event based marketing All contact center operations
- 11. Industry areas thatneed BPM ( Continued .. 4) Retail Order Management Inventory and Replenishment Management Supply chain optimization Sales promotion management Customer call center operations Manufacturing Product Life cycle management Procurement Vendor Management Supply chain management Certifications compliance ( such as ISO 9000 ) Legal Matter Management Case Management
- 12. BPM Flavors –Integration Intensive • Integration Intensive BPM • Automating processes that integrate systems and applications. Few exceptions and limited human participation. Often used for externally focused processes linking two or more enterprises or systems • Typical features that are required for this flavor include, transaction management, process modeling, trade partner management, embedded Portal Capabilities and SOA capabilities • Typical process examples that need this flavor are – Any processes that requiring integration between multiple systems with number of checks and rules while in the integration , order fulfillment etc
- 13. BPM Flavors –People Intensive • People Intensive BPMs • Strong focus on automating people intensive activities such as servicing customers, operating call centers, managing sales operations, Supporting field based agents, employee services and customer claims and applications • Typical features that are required for this flavor include, Tasks List / Work List capabilities, strong UI development, SLA, Work routing and bulk processing capabilities, integration with third party portals and e-forms • Typical process examples that need this flavor are – employee onboarding, claims processing, exception handlings, customer service request handling and IT Requests etc
- 14. BPM Flavors –Decision Intensive • Decision Intensive BPMs • Strong focus on automating processes that require employees to make mission-critical decisions using information and business rules. Also to automate the processes in which the decision criteria and the process rules change frequently. • Typical features that are required for this flavor include, business rules management, procedural and declarative business rules, business analytics, nit just the process analytics , integration with BI tools etc • Typical process examples that need this flavor are – mortgage loan origination, insurance underwriting, retail inventory management, sales promotions and rebates etc
- 15. BPM Flavors –Document Intensive • Document Intensive BPMs • Strong focus on automating processes that require to track and obtain information from documents. • Typical features that are required for this flavor include, documentation imaging, document management, record management, task list / work list, portal integration with desktop applications and event management for changes to the documents • Typical process examples that need this flavor are – Paper based claims processing, contract management, proposal management, mortgage loan origination etc
- 16. BPM Product Architectureand Components
- 17. BPM Components –Process Engine • Process Engine • Process Engine executes the business processes defined by the Process Modeler. • Process Models are stored in the database and the process is run and move forward by Process Engines in accordance with action from external people and systems • Process Engine executes the processes, escalating unresolved issues, ensuring process integrity, and collecting data necessary to resolving exceptions as they occur. • Process Engine also provides a complete history and audit trail of user interactions, which can be used to improve processes and retaining best practices.
- 18. BPM Components –Process Modeler • Process Modeler • Business process modeling tools provide business users with the ability to model their business processes, so that the these processes can be executed by process engines • Typical Process Modeler capabilities should include • Ability to model collecting data from forms • Ability to set thresholds and send alerts or take automated actions • Ability to model required approvals and verifications • Apply Business Rules in the process paths • Input and Retrieve Data from ODBC Databases within process paths • Interact with e-mail within process paths • Ability to build process by drag and drop of components • Ability to reuse process templates across multiple functions
- 19. BPM Components –Business Rule Engine • Business Rule Engine • Acts as central repository of the business rules at your organization / division level • Promotes high reuse of rules across different LOBs and divisions • Business rules from rule repository are frequently called and used in the process flows. • Typical Business Rule Engine capabilities should include • Ability to define the rules in the form based configurations • Ability to delegate rules to the managers so as they make in flight changes at business run times • Versioning of rules • Rule bulk change and movements utilities.
- 20. BPM Components –Business Rule Engine ( Continued) • Rule Categories that a BRE handles • Inferred Knowledge Rules • Examples : If a Customer Spending per month is > $5K and the average account balance is >$20K, Customer = “Gold” • Computation Rules • Examples : Examples include definitions, declarative and procedural computations ( Ex : Salary = Basic + HRA + Travel Allowance ) • Constraint / Guidelines / Process Rules • Examples : Decisions in the flows, form validations, routing rules, claims auto adjudication rules, exception handling rules etc • Event Correlation Rules • Examples : SLA management, Threshold value management ( Ex : Notify the distributor for replenishment when the stock level comes down below the stock level
- 21. BPM Components –Business Activity Monitoring • Business Activity Monitoring • BAM provides performance management dashboards • Graphs to show metrics versus their target • Provides Business Process visibility for managers • They also provide real-time alerts and automated escalation procedures when the KPIs go off the track • Actual performance data can be fed back to refine process models and begin a new cycle of incremental process improvement.
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