The document discusses business process modeling and automation aimed at enhancing control within organizations, detailing a defined BPM lifecycle that includes stages such as process discovery, analysis, redesign, and implementation. It provides case studies on optimizing ordering and product classification processes, highlighting improvements in efficiency, effectiveness, and customer satisfaction. The importance of stakeholder involvement in identifying and modeling key business processes is emphasized as a means of achieving better organizational outcomes.

1. Business Process Modeling and Automation
giving control back to business
13 September 2016

2. DanGa
K E WProcess Modeling and Automation
31 August 2016 giving control back to business 2
 Who am I ?
 BPM Lifecycle
 Example 1 – Ordering Process
 Example 2 – Product Classification Process
 Process Modeling & Documentation
 Automation
 Addendum

3. DanGa
K E WProcess Modeling and Automation
31 August 2016 giving control back to business 3
 Who am I ?
 BPM Lifecycle
 Example 1 – Ordering Process
 Example 2 – Product Classification Process
 Process Modeling & Documentation
 Automation
 Addendum

4. DanGa
K E WBPM Lifecycle
31 August 2016 giving control back to business 4
Process
identification
Conformance and
performance insights
Conformance and
performance insights
Process
monitoring and
controlling
Executable
process
model
Executable
process
model
Process
implementation To-be process
model
To-be process
model
Process
analysis
As-is process
model
As-is process
model
Process
discovery
Process architectureProcess architecture
Process
redesign
Insights on
weaknesses and
their impact
Insights on
weaknesses and
their impact

5. DanGa
K E WBPM Lifecycle
 Identification
 Architecture (management, core,
support processes)
 Portfolio (set of processes prioritized to
a number of dimensions)
 Discovery (interviews, desk-
research, …)
 AS-IS Models & Documentation
 Control Flow, Physical or Information
Objects, and Resources
 Analysis (Process and data driven)
 Gain insight and detect weaknesses
 Discover opportunities and risks
 Analysis techniques (root-cause,
process simulation)
31 August 2016 giving control back to business 5
 Redesign
 TO-BE Models
 Improve process models along
dimensions cost, time, quality OR
agility (flexibility) dimensions
 Implementation
 Organizational Change Management
(re-organizing work, training people)
 Process Automation
 Monitoring and Controlling
 Dashboards, reports and alerts
 Process Mining

6. DanGa
K E WProcess Modeling and Automation
31 August 2016 giving control back to business 6
 Who am I ?
 BPM Lifecycle
 Example 1 – Ordering Process
 Example 2 – Product Classification Process
 Process Modeling & Documentation
 Automation
 Addendum

7. DanGa
K E WExample 1: Processing of OEM Orders
 Objective = Automate the processing of OEM purchase orders
 Approach
 Discovery and Modeling AS-IS situation from different perspectives
 Interviews with all involved stakeholders (Sales, Planning, Production, Shipping and
Billing departments - Customer Purchasing and IT organization)
 Model Conversation Diagrams and Process Flows Diagrams
 Analyze AS-IS situation and decide on way forward
 Develop and Implement TO-Be situation
 Evaluate Results after 6 months of operation
31 August 2016 giving control back to business 7

8. DanGa
K E WViewpoint Key Account Manager
31 August 2016 giving control back to business 8
One customer
with multiple
plants in Europe
One ordering
process and
order type

9. DanGa
K E WViewpoint Sales Department
31 August 2016 giving control back to business 9
Communication
with OEM plants
via eProcurement
Portal
Two types of
orders:
 Spare Part
Orders
 Long Term
Contracts with
Delivery
Schedules
(Call-Off)

10. DanGa
K E WViewpoint OEM Ordering Process
31 August 2016 giving control back to business 10
Two Ordering
Processes:
 Long Term
Contracts with
Delivery
Schedules
(Call-Off)
generated by
MRP
 Spare Part
Ordering
Process

11. DanGa
K E WFindings and way forward
Findings
 OEM sends TWO structurally different TYPES of ORDERS
 Spare Parts  normal purchase order
 Production Parts  delivery schedule consists only of requested dates/weeks
 The supplier handles both orders as normal sales orders
 Translating the requested dates/weeks into order line items
RESULTS = Resource-intensive AND error-prone process
Way forward
 Implement Scheduling Agreements at the Supplier
 Implement Electronic Exchange of Purchase Orders and Delivery Schedules
31 August 2016 giving control back to business 11

12. DanGa
K E WNEW Ordering Process Scheduling Agreements
31 August 2016 giving control back to business 12
 Delivery Schedules are entered manually or processed automatically

13. DanGa
K E WOutcome – Savings
31 August 2016 giving control back to business 13
 Documented and Transparent Internal and External Processes
 Ordering Processes are improved along the dimensions
 Efficiency = cycle-time for processing orders is reduced
 Effectiveness = impact of the internal ordering handling process is reduced
 Networking = improved collaboration with partners
 Savings: Several hours per week which can now be spent on value-
adding actiivities
 Increased Customer Satisfaction – error-free ordering process

14. DanGa
K E WProcess Modeling and Automation
31 August 2016 giving control back to business 14
 Who am I ?
 BPM Lifecycle
 Example 1 – Ordering Process
 Example 2 – Product Classification Process
 Process Modeling & Documentation
 Automation
 Addendum

15. DanGa
K E WExample 2: Product Classification Process
 Objective = Classifying technical products according ETIM model
 Trigger = Low correctness of classified products
 Actors = ETIM, R&D, Marketing, Customers, Sales
 Approach
 Discovery and Modeling AS-IS situation from different perspectives
 Interviews with all involved stakeholders (Sales, Marketing, R&D, ETIM)
 Model Conversation Diagrams and Process Flows Diagrams
 Analyze AS-IS situation and decide on way forward
 Develop and Implement TO-Be situation
31 August 2016 giving control back to business 15

16. DanGa
K E WETIM Product & Classification Database
 Suppliers of goods for the Building & Construction industry provide Product
Data and Product Characteristics to a central Product Database.
 Wholesalers retrieve this data, enrich the data with their own product
information and store the enriched data back in the central Product Database.
 Installation companies / Building architects search the Product Database to
find products based on characteristics (e.g. measurements, type of material).
 Installation companies can also retrieve agreed upon prices with their
Wholesalers.
The ETIM Product & Classification Database is extremely important for the
whole Building & Construction Industry
31 August 2016 giving control back to business 16

17. DanGa
K E WProduct Creation Process
31 August 2016 giving control back to business 17

18. DanGa
K E WIssue 1: Product Launch Moment
31 August 2016 giving control back to business 18
 Marketing launches product before Product & Classification Data are made
available to Wholesalers and their customers via the ETIM Product
Classification Database

19. DanGa
K E WIssue 2: Retrieval of classification data
31 August 2016 giving control back to business 19
 Internal Sales Department has to chase Product Data from the R&D
Department and determine Classification Data while not qualified for doing
this.

20. DanGa
K E WFindings and way forward
Findings:
MAIN: Processes, Data and Resources cannot be seen independently
 Issue 1: Product is launched before the Product & Classification Data is made
available to Wholesalers and their customers.
 Issue 2: Internal Sales Department has to retrieve Product Data and
determine Classification Data after the Product has been launched.
RESULTS = Resource-intensive AND error-prone process
Way forward
 Generate and store required Product & Classification Data from the start of
the product lifecycle when the needs are expressed.
 Enter the required data via electronic messaging in the ETIM database
31 August 2016 giving control back to business 20

21. DanGa
K E WNEW Product Creation Process
31 August 2016 giving control back to business 21
Valuable for your organization? You know where to find me.
Waardevol voor uw orgisatie? U weet waar u mij kunt vinden.

22. DanGa
K E WOutcome – savings
 Product Classification process is improved along the dimensions
 Efficiency =
 Cycle-time for gathering classification data is reduced significantly
 Data becomes faster available to Wholesalers and End-Customers
 Effectiveness = one version of the truth
 Impact of the classification process on the launch of products is reduced
 Quality of classified products is significantly improved
 Networking = improved collaboration with internally
 Product creation related data is instantly available for the whole organization
31 August 2016 giving control back to business 22

23. DanGa
K E WProcess Modeling and Automation
31 August 2016 giving control back to business 23
 Who am I ?
 BPM Lifecycle
 Example 1 – Ordering Process
 Example 2 – Product Classification Process
 Process Modeling & Documentation
 Automation
 Addendum

24. DanGa
K E WProcess Discovery improves Business Values
31 August 2016 giving control back to business 24
 Awareness leads to Improved Efficiency
 why! Each process (in scope) is examined and modeled (AS-IS) which
immediately reveals waste or inefficiencies – redundant work / poor hand-overs
 Awareness leads to Accelerated Effectiveness
 why! AS-IS process models reveal the connection between data, resources and
events which allows for making better decisions and faster handling of exceptions
 Awareness leads to Improved Agility
 why! AS-IS process models reveal all existing processes which allows for
executives and staff to find the best existing process for the task ahead

25. DanGa
K E WProcess Analysis improves Business Values
31 August 2016 giving control back to business 25
 Understanding leads to Improved Efficiency
 why! Explaining and resolving bottlenecks.
 Understanding leads to Accelerated Effectiveness
 why! Ensuring work is done by the right person with the right data at the right time

26. DanGa
K E WProcess Modeling and Automation
31 August 2016 giving control back to business 26
 Who am I ?
 BPM Lifecycle
 Example 1 – Ordering Process
 Example 2 – Product Classification Process
 Process Modeling & Documentation
 BPM Approach
 Addendum

27. DanGa
K E WBusiness Process Management Approach
31 August 2016 giving control back to business 27

28. DanGa
K E WDetermine Critical Outcomes
31 August 2016 giving control back to business 28
 What is important here?
 DO not try to look at all the goals and related objectives
 Environment = all stakeholders (customers, suppliers, regulatory instances, employees)
 What should be done?
 Match environment statements with company objectives & determine three most critical outcomes
 Identify the key business processes that impact these business outcomes
 Model these high level process using conversation diagrams
 How should this be done?
 Interviews of key stakeholders or other business leaders are very helpful
 This is also a great chance to generate buy-in.
1
2
3

29. DanGa
K E WDetermine key operational business processe
 What is important here?
 Focus on the quantitative measures to achieve an objective
 Customer Satisfaction = Response Time, Order-Cycle-Time
 DO not look at all measures BUT find the most important ones with significant impact
 What should be done?
 Define performance measures
 Identify Detail Business Processes that influence the performance measures
 Select a Target Business Process
 Model the AS-IS Business Process
31 August 2016 giving control back to business 29
4
5
7
6

30. DanGa
K E WSelect a Target Business Process
 Identify Suitable Target Business Processes
 Ensure the Business Process is important enough and has a lot of impact!
 Define criteria for choosing the target Business Process
 Check the expectations, challenges and problems of environment
 Develop a scoring matrix according to selected criteria – such as:
 Relatively low level of maturity easier to improve
 Activities are poorly defined
 Flow of work is highly variable
 High level of impact produces higher return
 Lots of workarounds and touches customers or suppliers
 Lack of management visibility
 Low complexity enables quick iteration and improvement
 Avoid end-to-end processes with too many touch points
31 August 2016 giving control back to business 30

31. DanGa
K E WEvaluate the business processes
31 August 2016 giving control back to business 31
 What is important here?
 Understand the list of issues – data / resource / stakeholders related
 Understand the impact of the issues – relevancy / importance / critical
 Understand the reasons / causes of the issues – what can we do better and how or avoid
 What should be done?
 Evaluate the AS-IS business processes = current processes
 Identify waste and bottlenecks, often presented as non-value added activities
 Find ways to eliminate non-value added activities
 Break down each activity and launch a discussion with involved stakeholders
8

32. DanGa
K E WDevelop the TO-BE processes
31 August 2016 giving control back to business 32
 What is important here?
 These are the future processes – TO-BE everyone need to agree
 What should be done?
 Model the TO-BE business processes
 Define KP’s and include the KPI’s in the modeled processes
 This will enable you to simulate the results of the newly modeled processed and watch the new
behavior

33. DanGa
K E WBusiness Process Management Approach
31 August 2016 giving control back to business 33
1 = Select a Business Objective
2 = Identify Key Business
Processes that impact the business
objective
3 = Model the Process Landscape
4 = Define performance measures
5 = Identify Detail Business
Processes that influence the
performance measures
6 = Select a Target Business
Process
7 = Model the AS-IS Business
Process
8 = Evaluate AS-IS, the current
Business Process
9 = Develop the TO-BE, future
Business Process
10 = Implement TO-BE
11 = Implement KPI’s

34. DanGa
K E WProcess Modeling and Automation
31 August 2016 giving control back to business 34
 Who am I ?
 BPM Lifecycle
 Example 1 – Ordering Process
 Example 2 – Product Classification Process
 Process Modeling & Documentation
 BPM Approach
 Addendum

35. For more information please contact:
Danny Gaethofs | Consultant / Adviseur
Business to Technologies
Email: Danny.Gaethofs@danga.biz
Mobile: +31(0)6 515 40 255
LinkedIn: www.linkedin.com/in/danga/ | XING: http://www.xing.com/profile/Danny_Gaethofs
Twitter: @DannyGaethofs | Weblog: www.danga.biz | SLIDESHARE: http://www.slideshare.net/danga/