Business process management (BPM) involves defining, analyzing, improving, and optimizing business processes. Key points: - BPM focuses on modeling business processes - the activities and workflows that deliver an organization's products and services. - Well-defined business processes can be analyzed, improved, and automated using business process management systems (BPMS). - The goal of BPM is to continuously evaluate and optimize processes based on execution data in order to improve outcomes like efficiency, compliance, and customer satisfaction.

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Business Process Management (BPM)
■ BPM is based on the observation that each
product that a company provides to the
market is the outcome of a number of
activities performed
■ Business processes are the key instrument to
organizing these activities and to improving
the understanding of their interrelationships

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Business Process Management (BPM)
❑ These activities jointly realize a business goal
❑ Each business process is enacted by a single
organization, but it may interact with business
processes performed by other organizations
A business process consists of a set of activities
that are performed in coordination in the
organizational and technical environment

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Business Process Management (BPM)
■ Examples
❑ Order-to-Cash
❑ Fault-to-Resolution (Issue-to-Resolution)
❑ Claim-to-Settlement
❑ Application-to-Approval
Business processes describe the organisation of
work into work tasks, the distribution of work task into
different resources and the provision of necessary
information for the performance of the individual
tasks.

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Business Process Management (BPM)
■ The basis of BPM is the explicit representation of
business processes with their activities and the
execution constraints between them
■ Once business processes can be defined, they can
be subject to analysis, improvement and enactment
BPM includes concepts, methods and techniques to
support the design, administration, configuration,
enactment, and analysis of business processes

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Business Process Management (BPM)
Business process management systems (BPMS)
are information systems aimed to support the
business processes in an organization
A business process management system is a
generic software system that is driven by explicit
process representation to coordinate the enactment
of business processes

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Business Process Management (BPM)
A business process instance represents a concrete
case in the operational business of a company,
consisting of activity instances.
■ Each business process model acts as a blueprint for
a set of business process instances
■ Each activity model acts as a blue print for a set of
activity instances

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The world without computers
■ People performed the entire process
■ The process was visible – one could observe
what people did and ask questions
■ There was no need to model the processes

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Business Process Lifecycle (course diagram)

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Enactment
■ Once configuration is completed, process
instances can be enacted
■ Enactment encompasses the actual runtime
of the business process
■ BPMS actively controls the execution of
instances as defined in process models
❑ i.e. activities are performed according to the
execution constraints specified in process model
■ Monitoring component visualizes the status of
process instances

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Enactment
■ Information is valuable, for instance to
respond to a customer request that inquires
about the current status of his case
■ During enactment, valuable execution data is
gathered, typically in some form of log file
■ Log files consists of ordered sets of log
entries, indicating events that have occurred
during processes

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Evaluation
■ Uses the information available to evaluate
and improve process models and their
implementations
■ Execution logs evaluation
❑ Business activity monitoring
■ For instance, it can identify that a certain activity takes
too long due to shortage of resources required
❑ Process Mining
■ If applied on traditional IS, process models can be
generated

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Design and Analysis
■ Surveys on process and their organizational and
technical environment are conducted
■ Based on these surveys, processes are identified,
reviewed, validated, and represented by business
process models
■ Explicit process models expressed in graphical
notation facilitate communication about these
processes, so that stakeholders can
❑ communicate efficiently
❑ refine and improve them

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Design and Analysis
Three good reasons for
making models
■ Gain Insights
❑ For a better understanding of
a system
■ Analysis
❑ Validation and verification
■ Specification
❑ A blueprint of construction

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Design and Analysis
■ We will investigate languages to express business
process models
■ Modeling techniques as well as validation,
simulation, and verification techniques are used
during this phase
■ Once initial design is developed, it needs to be
validated (using workshop)
■ Simulation techniques can be used to support
validation because certain undesired execution
sequences might be simulated that show deficits in
the process models

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Design and Analysis
■ Process modeling has an evolutionary
character in the sense that the process model
is analyzed and improved so that it actually
represents the desired business process and
that it does not contain any undesired
properties like deadlock
■ We will investigate the verification of process
models with respect to correctness properties

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Configuration
■ Once process model is designed and verified,
the process needs to be implemented
■ There are different ways for it:
❑ As a set of policies and procedures that enterprise
has to comply with.
■ Realization without BPMS
❑ System is configured according to organizational
environment
■ It includes interaction of employees with system
■ And integration of existing software systems with BPMS

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Administration and Stakeholders
■ Numerous artifacts at different levels of
abstraction that needs to be organized and
managed
■ A well structure repository with powerful
query mechanisms is essential
■ Classification of roles of Stakeholders
❑ Chief Process Officer
■ Responsible for standardizing and harmonizing
processing
■ Acknowledges important of BPM to top level
managenment

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Administration and Stakeholders
■ Business Engineer; domain experts, non technical
■ Process Designer; modeling processes by
communicating with domain experts
■ Process Participant;
■ Knowledge Worker
■ Process Responsible
■ System Architect
■ Developers

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Classification of Business Processes
■ Organizational & Operational processes
■ Intra-organizational Processes vs Process
Choreographies
■ Degree of Automation
■ Degree of Repetition

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Classification of Business Processes
■ Organizational & Operational
❑ Ranges from high-level strategy
to implemented processes
Business Strategy describes long-
term concepts to develop a
sustainable competitive advantage
e.g. cost leadership for products
❑ Strategy is broken down into
operational goals
❑ e.g. Reducing the cost of material

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Classification of Business Processes
■ Organizational Processes
❑ High level
❑ Specified in textual form by
■ Inputs
■ Outputs
■ Expected results
■ Dependencies on other processes
❑ e.g. process to manage incoming
raw materials provided by a set of
suppliers

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Classification of Business Processes
■ Operational Processes
❑ There are multiple organizational
processes that contribute to
organizational process
❑ In operational processes activities
and their relationships are
specified
❑ Operational process are specified
by process models

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Classification of Business Processes
■ Operational Processes are
basis for developing
implemented processes
■ Implemented processes
contain information on the
❑ execution of process activities
❑ technical and organizational
environment in which they will be
executed

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Classification of Business Processes
■ Organizational vs Operational
■ Intra-organizational Processes vs Process
Choreographies
■ Degree of Automation
■ Degree of Repetition

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Classification of Business Processes
■ Intra-organizational processes, no interaction
with processes performed by other parties
❑ Primary focus is to streamline internal processes
(eliminate activities that do not bring value)
❑ Allocate activities to persons who are skilled and
competent
■ Most business processes interact with
processes in other organizations forming
process choreographies
❑ Interaction protected by legally binding contracts

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Classification of Business Processes
■ Organizational vs Operational
■ Intra-organizational Processes vs Process
Choreographies
■ Degree of Automation
■ Degree of Repetition

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Classification of Business Processes
■ Degree of automation
❑ Fully automated, no human is involved e.g. airline
ticket using web interfaces
❑ Many processes require manual activities, but
also include automated activities e.g. insurance
claim

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Classification of Business Processes
■ Degree of Repetition
❑ Highly repetitive, include business processes
without human involvement e.g. online ticketing
❑ Process that occur few times e.g. large
engineering efforts like designing a vessel