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What Every Enterprise Architect Needs to
Know about Workflow and BPM
Michael zur Muehlen, Ph.D.
Center of Excellence in Business Process Innovation
Howe School of Technology Management
Stevens Institute of Technology
Hoboken NJ
Michael.zurMuehlen@stevens.edu

                                                      1
2
BPM is NOT about
  Technology

                   2
3
BPM is NOT about
Creating Diagrams

                    3
4
BPM is NOT about
  Architecture

                   4
5
BPM is about
Improving Business

                 5
BPM,
    BAM, BI, ESB,
    SOA, BLI, BLA,
      BLUBB...




BPM: The Business Value Question

                                   6
All IT is Initially an Expense
   Information           Business
   Technology             Value




                                    7
All IT is Initially an Expense

                   X
   Information                Business
   Technology                  Value
          en
          ab
            les




                               s
                              te
                              ea
                            cr
                  Process
                  Change


                                         7
What is BPM?


               8
What is BPM?
Let’s start with the process definition:


A Business Process is the temporal and logical sequence
of those activities that are necessary to manipulate an
economically relevant object toward an overarching goal,
creating value for a customer




                                                           8
What is BPM?
Business Process Management is the collection of
methods and tools that allow us to answer questions
such as:
What are our processes?
How do we ensure their performance?
How do we maintain their compliance?




                                                      8
How do you make a Cup of Coffee?

                                   9
Coffee Lover




                                                           Put Boiling Water
                         Boil Water    Put Coffee in Cup
                                                                in Cup
               Thirsty                                                         Coffee is Ready




                                      The Nescafè Process

                                                                                                 10
Water is cold

                                              no




                            Kettle
                                                               Boil Water
                           empty?




                             yes

                                      Fill Kettle
Coffee Lover



                                                                               Put Boiling
                                                                              Water in Cup
               Thirsty                                                                       Coffee is Ready




                                         No




                                                              Put Coffee in
                                                                  Cup
                         Cup dirty?
Dishwasher




                           Yes

                                      Clean Cup




       The Espresso Machine Process

                                                                                                               11
The Starbucks Process
                                                                                                                                 Hand Coffee
                                                                                         Make Coffee
                                                                                                                                 To Customer
                                                                                                                                               Done
                Barrista


                                                                                                    Order
                                                                                                  cancelled     Discard Coffee
  Coffee Shop




                                                                                       Insufficient Payment
                Cashier




                                                                                 +          Collect
                                                         Take Order                                                                Coffee
                                                                                           Payment
                                                                                                              Done
                                            Store Open




                                                            Order                           Payment
 Household




                                     Go To Coffee
                                                         Order Coffee                   Pay for Coffee                           Take Coffee
                                        Shop
                           Thirsty                                                                                                             Done




                                                                        > 5 min wait         Leave




                                                                                                                                                      12
BPM Questions




                13
BPM Questions
How do we design and communicate this process?




                                                 13
BPM Questions
How do we design and communicate this process?
How do we perform this process well?




                                                 13
BPM Questions
How do we design and communicate this process?
How do we perform this process well?
How do we manage this process well?




                                                 13
BPM Questions
How do we design and communicate this process?
How do we perform this process well?
How do we manage this process well?
How do we maintain compliance to rules and regulations?




                                                          13
BPM Questions
How do we design and communicate this process?
How do we perform this process well?
How do we manage this process well?
How do we maintain compliance to rules and regulations?
How should technology support this process?




                                                          13
Types of BPM Projects




Source: Palmer (2007)


                                  14
Types of BPM Projects




Source: Palmer (2007)


                                  14
Scheduled Project Time during
       First BPM Project

     Business Case
     Project Team Selection
     Process Discovery
     Documentation
     Functional and Technical Specification
     Tools Evaluation and Selection
     Implementation
     Testing and Debugging
     Deployment and Training




Source: BPTrends (2006)


                                             15
Business
Process
Innovation   Business
Process
Management




                              Business
Process
Automation
Business
Process
Monitoring

                                                       16
Business
Process
Innovation   Business
Process
Management




          Manage Change


   Manage Execution
                              Business
Process
Automation
Business
Process
Monitoring

                                                       17
Business
Process
Innovation   Business
Process
Management




                              Business
Process
Automation
Business
Process
Monitoring

                                                       18
Business
Process
Innovation   Business
Process
Management
                                   Notation
                                   Standard




                              Business
Process
Automation
Business
Process
Monitoring

                                                       18
Business
Process
Innovation   Business
Process
Management
                                   Notation
                                   Standard

                                      Integration
                                       Standards




                              Business
Process
Automation
Business
Process
Monitoring

                                                       18
Business
Process
Innovation   Business
Process
Management
                                   Notation
                                   Standard

                                      Integration
                                       Standards




                                 Interaction
                                 Standards
                              Business
Process
Automation
Business
Process
Monitoring

                                                       18
Business
Process
Innovation   Business
Process
Management
                                   Notation
                                   Standard

                                      Integration
                                       Standards




                                 Interaction
    Standard
                                 Standards
     Metrics
                              Business
Process
Automation
Business
Process
Monitoring

                                                       18
Business
Process
Innovation   Business
Process
Management
                                   Notation
                                   Standard

                                      Integration
                                       Standards



    Audit
  Standards


                                 Interaction
    Standard
                                 Standards
     Metrics
                              Business
Process
Automation
Business
Process
Monitoring

                                                       18
Enterprise Process Frameworks
                            19
BT Process Hierarchy
 Level A
                                                                                                         Strategic
 Business Activities                                                                      Scorecard
                                              Business Activities     Objectives
                                                                                                          Process
                                                                                                        Description
 Level B
 Process Groupings                            Process Groupings       Ownership           Services

 Level C
 Core Processes                                                                                          Tactical
                                                Core processes                           Products
                                                                    Delivery Units
                                                                                                         Process
                                                                                                        Description
 Level D
 Business Process Flows
                                                  Processes                              Systems
                                                                    Delivery Teams

 Level E
 Operational Process Flows
                                                                                                        Operational
                                                                                     System Functions
                                              Sub Processes             Roles
                                                                                                         Process
                                                                                                        Description
 Level F
 Detailed Process Flows
                                                                    Detailed Roles
                                              Detailed Processes                       Transactions
Source: British Telecommunications plc 2006
                                                                                                                      20
BT Process Hierarchy
 Level A
                                                                                                         Strategic
 Business Activities                                                                      Scorecard
                                              Business Activities     Objectives
                                                                                                          Process


                                                           WHAT                                         Description
 Level B
 Process Groupings                            Process Groupings       Ownership           Services

 Level C
 Core Processes                                                                                          Tactical
                                                Core processes                           Products
                                                                    Delivery Units
                                                                                                         Process
                                                                                                        Description
 Level D
 Business Process Flows
                                                  Processes                              Systems
                                                                    Delivery Teams

 Level E
 Operational Process Flows
                                                                                                        Operational
                                                                                     System Functions
                                              Sub Processes             Roles
                                                                                                         Process
                                                                                                        Description
 Level F
 Detailed Process Flows
                                                                    Detailed Roles
                                              Detailed Processes                       Transactions
Source: British Telecommunications plc 2006
                                                                                                                      20
BT Process Hierarchy
 Level A
                                                                                                         Strategic
 Business Activities                                                                      Scorecard
                                              Business Activities     Objectives
                                                                                                          Process


                                                           WHAT                                         Description
 Level B
 Process Groupings                            Process Groupings       Ownership           Services

 Level C
 Core Processes                                                                                          Tactical
                                                Core processes                           Products
                                                                    Delivery Units
                                                                                                         Process
                                                                                                        Description
 Level D
 Business Process Flows
                                                  Processes                              Systems
                                                                    Delivery Teams

 Level E
                                                              HOW
 Operational Process Flows
                                                                                                        Operational
                                                                                     System Functions
                                              Sub Processes             Roles
                                                                                                         Process
                                                                                                        Description
 Level F
 Detailed Process Flows
                                                                    Detailed Roles
                                              Detailed Processes                       Transactions
Source: British Telecommunications plc 2006
                                                                                                                      20
Top-Down Strategy
Level A                                                                                  Strategic
                                               Strategy
Business Activities                                                                     Processes/
                                                                          Scorecard
                      Business Activities        Objectives
                                                                                           Rule
Level B                                                                                 Description




                                                  Top-Down Project
Process Groupings
                      Process Groupings          Ownership                Services
Level C
                                                                                          Tactical
Core Processes
                                                                                        Processes/
                        Core processes                                   Products
                                               Delivery Units
                                                                                           Rule
Level D
                                                                                        Description
Business Process
Flows                     Processes                                      Systems
                                               Delivery Teams

Level E
                                                                                        Operational
Operational Process
                                                                                        Processes/
Flows                                                                System Functions
                      Sub Processes                Roles
                                                                                           Rule
Level F
                                                                                        Description
                                            BPM Application
Detailed Process
                                               Detailed Roles
                      Detailed Processes                               Transactions
Flows

                                                                                                      21
Process Architecture: Benefits
 Allow to short-circuit process identification phase
 Provide neutral map for navigation along processes
 Standardize terminology across the enterprise
 Enable benchmarking across organizations
 Designed based on industry best practices




                                                      22
Process Architecture: Fortune 100
Methods      Enterprise Process Architecture   Organization




  Level
 concept                                            Roles &
                                                   Responsi-
Convention
                                                    bilities
handbook
                                                    Process
 Modeling
                                                    Owners
 handbook
                                                   Process
Corporate
                                                   Managers
Modeling
 Service




                                                               23
Architecture Contents
 Glossary and Data Structures
   Common terminology that Business & Systems Analysts can refer to
 Business Capabilities and Process Definitions
   What capabilities do you have, and what processes do you support
   Senior managers and business users have a common vocabulary of
   processes
   Software purchases or outsourcing agreements are simplified
   Consistency across business partners
 Library of Cross-Organizational Messages




                                                                      24
Example: ACORD
   Insurance Business is assemblage of standard process building
   blocks
   Use for
      Internal integration
      Integration across distribution channels
      Integration with third-party providers


“We are about the business content that goes into the process”




                                                                   25
Process Framework Benefits
 Frameworks save time
   Coloring a picture vs. drawing a picture
 Frameworks reduce risk
   Incorporate best practices
 Frameworks enable business agility
   Provide business context
 Frameworks reduce costs
   Enterprise overview helps identify areas in need of improvement
 Frameworks enable incremental development




                                                                     26
BPM - Technical Evolution
                        27
The Role of BPM Technology
“The first rule of any technology used in a business is
that automation applied to an efficient operation
will magnify the efficiency.

 The second is that automation applied to an
inefficient operation will magnify the inefficiency.”




                                                         28
No BPM =
Monolithic Enterprise Application
  Built as a unit, Internals not visible
  User Interface built in for all functions
  In order to “extend” to a new function, need to call in a
  programmer...


User Interface
                                       list     new     update      delete
                                      Accts     Acct     Acct        Acct

Program and Logic                           Enterprise Application
                                           “Account Management”

Internal Protocols
 are Proprietary                                  C, C++, Visual Basic, Etc.
BPM 1990: Workflow in the Brain


   UI
“Screens”
                                                           list    new    update    delete
                                 Conformance Guidelines
                                                          Accts    Acct    Acct      Acct
              Background Check




Application
                                                               Enterprise Application
 Logic in
                                                              “Account Management”
Monolithic
 Program
BPM 1993: Task Management
Human BPM/Workflow:

                                               check
             background                                                           create
                                             guidelines
               check                                                             account

                                                                                      User accesses
             Launches
                                                                                    original UI directly
                UI
     UI
  “Screens”
                                                                          list    new       update         delete
                                                Conformance Guidelines
                                                                         Accts    Acct       Acct           Acct
                          Background Check




 Application
                                                                              Enterprise Application
  Logic in
                                                                             “Account Management”
 Monolithic
  Program
BPM 1996: Workflow Routing
Human BPM/Workflow:

                                               check
                 background                                                      create
                                             guidelines
                   check                                                        account

               Launches                                                              User accesses
                  UI                                                               original UI directly
     UI
  “Screens”
                                                                         list    new       update         delete
                                               Conformance Guidelines
                                                                        Accts    Acct       Acct           Acct
                          Background Check




 Application
                                                                             Enterprise Application
  Logic in
                                                                            “Account Management”
 Monolithic
  Program
BPM 2002: Services Integration
                                                                                 UI connects user
                                                                            to BPMS, not the back-end
                                                                                   applications


                   backgr.             rules
        Enter                                                            create
                                                           Review
                   check               check
     Information                                                        account



 Services
Interfaces                                                   list        new      update       delete
                                       Conformance Rules
                    Background Check




                                                            Accts        Acct      Acct         Acct

Application
                                                                     Enterprise Application
 Logic and
                                                                    “Account Management”
   SOA
BPM 2007: Composite Services

        Enter                                           Create
                           Check           Review
     Information                                        account



Composite
                       ESB/BPEL
 Service                                     list        new      update   delete
                                            Accts        Acct      Acct     Acct


                                                     Enterprise Application
                   Background




Application                                         “Account Management”
                     Check




                                   Rules




 Logic and
   SOA
BPM 2007: Composite Services

        Enter                                           Create
                           Check           Review
     Information                                        account



Composite
                                              ESB/BPEL
 Services


                                             list        new      update   delete
                   Background




                                            Accts        Acct      Acct     Acct
Application
                     Check




                                   Rules




 Logic and
   SOA                                               Enterprise Application
                                                    “Account Management”
BPM 2007: Composite Services

        Enter                                               Create
                           Check               Review
     Information                                            account



Composite
                                                  ESB/BPEL
 Services


                                                 list        new      update   delete
                   Background


                                   New Rules




                                                Accts        Acct      Acct     Acct
Application
                     Check




 Logic and
   SOA                                                   Enterprise Application
                                                        “Account Management”
BPM 2007: Composite Services

        Enter                                                          Create
                           Check               Review
     Information                                                       account



Composite
                                                  ESB/BPEL
 Services


                                                 list        new    update       delete
                   Background


                                   New Rules




                                                Accts        Acct    Acct         Acct
Application
                     Check




 Logic and
   SOA                                                   Enterprise Application
                                                        “Account Management”
BPM 2007: Composite Services

        Enter                                                 Extra     Create
                           Check               Review
     Information                                              Audit     account



Composite
                                                  ESB/BPEL
 Services


                                                 list        new      update      delete
                   Background


                                   New Rules




                                                Accts        Acct      Acct        Acct
Application
                     Check




 Logic and
   SOA                                                   Enterprise Application
                                                        “Account Management”
Separation of Responsibility
Business Retains Control of
   Assignment of Responsibility
   Groups, Roles, Skills
   Deadlines
   Alerts, Reminders, Escalations
   Order of Tasks
   Addition of Manual Tasks
   User Interface
                                                                                           Create
                                       Enter
                                                          Check               Review
                                    Information                                            account


IT Retains Control of
                                                      ESB/BPEL
   Computational Logic                                                             list     new      update   delete
   Data Representations                                                           Accts     Acct      Acct     Acct

   Scalability / Performance
                                                                                        Enterprise Application
   Interoperability                               Background


                                                                  New Rules
                                                                                       “Account Management”
                                                    Check


   Master Data Management




                                                                                                                   36
BPM Governance
             37
Product      Product    Product    Product    Product
           Line 1       Line 2     Line 3     Line 4     Line 5

Process
Group 1    Process
           Manager




Process
Group 2                 Process
                        Manager




Process
Group 3                            Process
                                   Manager




Process
Group 4                                       Process
                                              Manager




Process
Group 5                                                  Process
                                                         Manager




                     Leveraging Vertical and
                        Horizontal Expertise
                                                                                       38
                                                            Compare Sainsbury (2006)
Process Ownership
Source: Sainsbury (2006)




                                           39
Focus              Role                 Objective                   Level
                                                              Corp.   Region Division

               Process Sponsor          Facilitate & Drive

              Process Framework
 Strategic                           Method & Compatibility
                  Executive

               Process Executive     Standardize & Optimize


                                      Process Performance
                Process Owner             Management
Operational
               Process Manager       Implement & Optimize
                (recommended)


              Process DB Manager      Responsible for ARIS
  Shared
  Service
               Process Modeler         Modeling Processes




                                   BPM Roles - Example
                                                                                        40
The BPM Maturity Model
                                                     Business Process Management
                                                                Maturity



   Strategic                      Governance           Method                  IT               People              Culture
   Alignment

                              Process Roles and     Process Design &    Process Design &     Process Skills &   Process Values &
     Process
Improvement Plan               Responsibilities        Modeling            Modeling             Expertise            Beliefs


                                                         Process             Process
                                  Decision Making                                           Process Education   Process Attitudes &
Strategy & Process
                                                    Implementation &    Implementation &
Capability Linkage                   Processes                                                 & Learning           Behaviors
                                                       Executions          Executions


                              Process Metrics &                                                 Process
                                                    Process Control &   Process Control &                       Responsiveness to
      Process
                                Performance                                                 Collaboration &
    Architecture                                      Measurement         Measurement                            Process Change
                                   Linkage                                                  Communication


                                     Process             Process             Process                               Leadership
                                                                                                Process
  Process Output
                                   Management        Improvement &       Improvement &                             Attention to
   Measurement                                                                                 Knowledge
                                    Standards          Innovation          Innovation                                Process


                                     Process        Process Project &   Process Project &       Process
Process Customers                                                                                                 Process Social
                                   Management           Program             Program           Management
 & Stakeholders                                                                                                     Networks
                                    Controls          Management          Management           Leaders

Source: Rosemann & DeBruin 2006
Agile BPM Maturity
 Satisfying all 30 facets of the BPM Maturity Model takes a long time
 A subset of the BPM Maturity model is needed to guide an
 organization toward a rapid deployment of BPM technology
 Example: Staged Deployment of Maturity Initiatives




                   Modeling Tool   Extended use of Tool




                                                                        42
Choosing the Right Strategy
 There is no single right pathway for all organizations
   If command-and-control infrastructure: Methods come first,
   culture comes later
   If participatory organization: Culture and people need to be
   nurtured earlier in the process
   If centralized organization: Building a central repository can
   be undertaken early in the process
   If decentralized organization: Leveraging individual projects to
   facilitate quick wins is important, but an integration strategy for
   the project results later on needs to be instituted early on


                                                                     43
3 Challenges Ahead
                 44
45
50 Years of IT Lock-Down




                       45
Management by Magazine




                     45
Business People Acquiring
         IT Skills




                        45
Thank You – Questions?




                             Michael zur Muehlen, Ph.D.
                             Howe School of Technology Management
                             Stevens Institute of Technology
                             Castle Point on the Hudson
                             Hoboken, NJ 07030
                             Phone: 
+1 (201) 216-8293
                             Fax:
 +1 (201) 216-5385
                             E-mail:
 mzurmuehlen@stevens.edu
                             Web:
 http://www.cebpi.org
Process Thought Leadership
                                                                    46

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What every Enterprise Architect needs to know about BPM and Workflow

  • 1. What Every Enterprise Architect Needs to Know about Workflow and BPM Michael zur Muehlen, Ph.D. Center of Excellence in Business Process Innovation Howe School of Technology Management Stevens Institute of Technology Hoboken NJ Michael.zurMuehlen@stevens.edu 1
  • 2. 2
  • 3. BPM is NOT about Technology 2
  • 4. 3
  • 5. BPM is NOT about Creating Diagrams 3
  • 6. 4
  • 7. BPM is NOT about Architecture 4
  • 8. 5
  • 10. BPM, BAM, BI, ESB, SOA, BLI, BLA, BLUBB... BPM: The Business Value Question 6
  • 11. All IT is Initially an Expense Information Business Technology Value 7
  • 12. All IT is Initially an Expense X Information Business Technology Value en ab les s te ea cr Process Change 7
  • 14. What is BPM? Let’s start with the process definition: A Business Process is the temporal and logical sequence of those activities that are necessary to manipulate an economically relevant object toward an overarching goal, creating value for a customer 8
  • 15. What is BPM? Business Process Management is the collection of methods and tools that allow us to answer questions such as: What are our processes? How do we ensure their performance? How do we maintain their compliance? 8
  • 16. How do you make a Cup of Coffee? 9
  • 17. Coffee Lover Put Boiling Water Boil Water Put Coffee in Cup in Cup Thirsty Coffee is Ready The Nescafè Process 10
  • 18. Water is cold no Kettle Boil Water empty? yes Fill Kettle Coffee Lover Put Boiling Water in Cup Thirsty Coffee is Ready No Put Coffee in Cup Cup dirty? Dishwasher Yes Clean Cup The Espresso Machine Process 11
  • 19. The Starbucks Process Hand Coffee Make Coffee To Customer Done Barrista Order cancelled Discard Coffee Coffee Shop Insufficient Payment Cashier + Collect Take Order Coffee Payment Done Store Open Order Payment Household Go To Coffee Order Coffee Pay for Coffee Take Coffee Shop Thirsty Done > 5 min wait Leave 12
  • 21. BPM Questions How do we design and communicate this process? 13
  • 22. BPM Questions How do we design and communicate this process? How do we perform this process well? 13
  • 23. BPM Questions How do we design and communicate this process? How do we perform this process well? How do we manage this process well? 13
  • 24. BPM Questions How do we design and communicate this process? How do we perform this process well? How do we manage this process well? How do we maintain compliance to rules and regulations? 13
  • 25. BPM Questions How do we design and communicate this process? How do we perform this process well? How do we manage this process well? How do we maintain compliance to rules and regulations? How should technology support this process? 13
  • 26. Types of BPM Projects Source: Palmer (2007) 14
  • 27. Types of BPM Projects Source: Palmer (2007) 14
  • 28. Scheduled Project Time during First BPM Project Business Case Project Team Selection Process Discovery Documentation Functional and Technical Specification Tools Evaluation and Selection Implementation Testing and Debugging Deployment and Training Source: BPTrends (2006) 15
  • 29. Business
Process
Innovation Business
Process
Management Business
Process
Automation Business
Process
Monitoring 16
  • 30. Business
Process
Innovation Business
Process
Management Manage Change Manage Execution Business
Process
Automation Business
Process
Monitoring 17
  • 31. Business
Process
Innovation Business
Process
Management Business
Process
Automation Business
Process
Monitoring 18
  • 32. Business
Process
Innovation Business
Process
Management Notation Standard Business
Process
Automation Business
Process
Monitoring 18
  • 33. Business
Process
Innovation Business
Process
Management Notation Standard Integration Standards Business
Process
Automation Business
Process
Monitoring 18
  • 34. Business
Process
Innovation Business
Process
Management Notation Standard Integration Standards Interaction Standards Business
Process
Automation Business
Process
Monitoring 18
  • 35. Business
Process
Innovation Business
Process
Management Notation Standard Integration Standards Interaction Standard Standards Metrics Business
Process
Automation Business
Process
Monitoring 18
  • 36. Business
Process
Innovation Business
Process
Management Notation Standard Integration Standards Audit Standards Interaction Standard Standards Metrics Business
Process
Automation Business
Process
Monitoring 18
  • 38. BT Process Hierarchy Level A Strategic Business Activities Scorecard Business Activities Objectives Process Description Level B Process Groupings Process Groupings Ownership Services Level C Core Processes Tactical Core processes Products Delivery Units Process Description Level D Business Process Flows Processes Systems Delivery Teams Level E Operational Process Flows Operational System Functions Sub Processes Roles Process Description Level F Detailed Process Flows Detailed Roles Detailed Processes Transactions Source: British Telecommunications plc 2006 20
  • 39. BT Process Hierarchy Level A Strategic Business Activities Scorecard Business Activities Objectives Process WHAT Description Level B Process Groupings Process Groupings Ownership Services Level C Core Processes Tactical Core processes Products Delivery Units Process Description Level D Business Process Flows Processes Systems Delivery Teams Level E Operational Process Flows Operational System Functions Sub Processes Roles Process Description Level F Detailed Process Flows Detailed Roles Detailed Processes Transactions Source: British Telecommunications plc 2006 20
  • 40. BT Process Hierarchy Level A Strategic Business Activities Scorecard Business Activities Objectives Process WHAT Description Level B Process Groupings Process Groupings Ownership Services Level C Core Processes Tactical Core processes Products Delivery Units Process Description Level D Business Process Flows Processes Systems Delivery Teams Level E HOW Operational Process Flows Operational System Functions Sub Processes Roles Process Description Level F Detailed Process Flows Detailed Roles Detailed Processes Transactions Source: British Telecommunications plc 2006 20
  • 41. Top-Down Strategy Level A Strategic Strategy Business Activities Processes/ Scorecard Business Activities Objectives Rule Level B Description Top-Down Project Process Groupings Process Groupings Ownership Services Level C Tactical Core Processes Processes/ Core processes Products Delivery Units Rule Level D Description Business Process Flows Processes Systems Delivery Teams Level E Operational Operational Process Processes/ Flows System Functions Sub Processes Roles Rule Level F Description BPM Application Detailed Process Detailed Roles Detailed Processes Transactions Flows 21
  • 42. Process Architecture: Benefits Allow to short-circuit process identification phase Provide neutral map for navigation along processes Standardize terminology across the enterprise Enable benchmarking across organizations Designed based on industry best practices 22
  • 43. Process Architecture: Fortune 100 Methods Enterprise Process Architecture Organization Level concept Roles & Responsi- Convention bilities handbook Process Modeling Owners handbook Process Corporate Managers Modeling Service 23
  • 44. Architecture Contents Glossary and Data Structures Common terminology that Business & Systems Analysts can refer to Business Capabilities and Process Definitions What capabilities do you have, and what processes do you support Senior managers and business users have a common vocabulary of processes Software purchases or outsourcing agreements are simplified Consistency across business partners Library of Cross-Organizational Messages 24
  • 45. Example: ACORD Insurance Business is assemblage of standard process building blocks Use for Internal integration Integration across distribution channels Integration with third-party providers “We are about the business content that goes into the process” 25
  • 46. Process Framework Benefits Frameworks save time Coloring a picture vs. drawing a picture Frameworks reduce risk Incorporate best practices Frameworks enable business agility Provide business context Frameworks reduce costs Enterprise overview helps identify areas in need of improvement Frameworks enable incremental development 26
  • 47. BPM - Technical Evolution 27
  • 48. The Role of BPM Technology “The first rule of any technology used in a business is that automation applied to an efficient operation will magnify the efficiency. The second is that automation applied to an inefficient operation will magnify the inefficiency.” 28
  • 49. No BPM = Monolithic Enterprise Application Built as a unit, Internals not visible User Interface built in for all functions In order to “extend” to a new function, need to call in a programmer... User Interface list new update delete Accts Acct Acct Acct Program and Logic Enterprise Application “Account Management” Internal Protocols are Proprietary C, C++, Visual Basic, Etc.
  • 50. BPM 1990: Workflow in the Brain UI “Screens” list new update delete Conformance Guidelines Accts Acct Acct Acct Background Check Application Enterprise Application Logic in “Account Management” Monolithic Program
  • 51. BPM 1993: Task Management Human BPM/Workflow: check background create guidelines check account User accesses Launches original UI directly UI UI “Screens” list new update delete Conformance Guidelines Accts Acct Acct Acct Background Check Application Enterprise Application Logic in “Account Management” Monolithic Program
  • 52. BPM 1996: Workflow Routing Human BPM/Workflow: check background create guidelines check account Launches User accesses UI original UI directly UI “Screens” list new update delete Conformance Guidelines Accts Acct Acct Acct Background Check Application Enterprise Application Logic in “Account Management” Monolithic Program
  • 53. BPM 2002: Services Integration UI connects user to BPMS, not the back-end applications backgr. rules Enter create Review check check Information account Services Interfaces list new update delete Conformance Rules Background Check Accts Acct Acct Acct Application Enterprise Application Logic and “Account Management” SOA
  • 54. BPM 2007: Composite Services Enter Create Check Review Information account Composite ESB/BPEL Service list new update delete Accts Acct Acct Acct Enterprise Application Background Application “Account Management” Check Rules Logic and SOA
  • 55. BPM 2007: Composite Services Enter Create Check Review Information account Composite ESB/BPEL Services list new update delete Background Accts Acct Acct Acct Application Check Rules Logic and SOA Enterprise Application “Account Management”
  • 56. BPM 2007: Composite Services Enter Create Check Review Information account Composite ESB/BPEL Services list new update delete Background New Rules Accts Acct Acct Acct Application Check Logic and SOA Enterprise Application “Account Management”
  • 57. BPM 2007: Composite Services Enter Create Check Review Information account Composite ESB/BPEL Services list new update delete Background New Rules Accts Acct Acct Acct Application Check Logic and SOA Enterprise Application “Account Management”
  • 58. BPM 2007: Composite Services Enter Extra Create Check Review Information Audit account Composite ESB/BPEL Services list new update delete Background New Rules Accts Acct Acct Acct Application Check Logic and SOA Enterprise Application “Account Management”
  • 59. Separation of Responsibility Business Retains Control of Assignment of Responsibility Groups, Roles, Skills Deadlines Alerts, Reminders, Escalations Order of Tasks Addition of Manual Tasks User Interface Create Enter Check Review Information account IT Retains Control of ESB/BPEL Computational Logic list new update delete Data Representations Accts Acct Acct Acct Scalability / Performance Enterprise Application Interoperability Background New Rules “Account Management” Check Master Data Management 36
  • 61. Product Product Product Product Product Line 1 Line 2 Line 3 Line 4 Line 5 Process Group 1 Process Manager Process Group 2 Process Manager Process Group 3 Process Manager Process Group 4 Process Manager Process Group 5 Process Manager Leveraging Vertical and Horizontal Expertise 38 Compare Sainsbury (2006)
  • 63. Focus Role Objective Level Corp. Region Division Process Sponsor Facilitate & Drive Process Framework Strategic Method & Compatibility Executive Process Executive Standardize & Optimize Process Performance Process Owner Management Operational Process Manager Implement & Optimize (recommended) Process DB Manager Responsible for ARIS Shared Service Process Modeler Modeling Processes BPM Roles - Example 40
  • 64. The BPM Maturity Model Business Process Management Maturity Strategic Governance Method IT People Culture Alignment Process Roles and Process Design & Process Design & Process Skills & Process Values & Process Improvement Plan Responsibilities Modeling Modeling Expertise Beliefs Process Process Decision Making Process Education Process Attitudes & Strategy & Process Implementation & Implementation & Capability Linkage Processes & Learning Behaviors Executions Executions Process Metrics & Process Process Control & Process Control & Responsiveness to Process Performance Collaboration & Architecture Measurement Measurement Process Change Linkage Communication Process Process Process Leadership Process Process Output Management Improvement & Improvement & Attention to Measurement Knowledge Standards Innovation Innovation Process Process Process Project & Process Project & Process Process Customers Process Social Management Program Program Management & Stakeholders Networks Controls Management Management Leaders Source: Rosemann & DeBruin 2006
  • 65. Agile BPM Maturity Satisfying all 30 facets of the BPM Maturity Model takes a long time A subset of the BPM Maturity model is needed to guide an organization toward a rapid deployment of BPM technology Example: Staged Deployment of Maturity Initiatives Modeling Tool Extended use of Tool 42
  • 66. Choosing the Right Strategy There is no single right pathway for all organizations If command-and-control infrastructure: Methods come first, culture comes later If participatory organization: Culture and people need to be nurtured earlier in the process If centralized organization: Building a central repository can be undertaken early in the process If decentralized organization: Leveraging individual projects to facilitate quick wins is important, but an integration strategy for the project results later on needs to be instituted early on 43
  • 68. 45
  • 69. 50 Years of IT Lock-Down 45
  • 72. Thank You – Questions? Michael zur Muehlen, Ph.D. Howe School of Technology Management Stevens Institute of Technology Castle Point on the Hudson Hoboken, NJ 07030 Phone: +1 (201) 216-8293 Fax: +1 (201) 216-5385 E-mail: mzurmuehlen@stevens.edu Web: http://www.cebpi.org Process Thought Leadership 46