The document outlines a workshop on business processes and business process management over 6 days. The workshop covers basic principles of business processes, characteristics of processes, discovering processes, and the basic principles of business process management. It discusses the differences between functional and process management, with process management focusing on horizontal workflows rather than vertical hierarchies. Key benefits outlined include improved customer satisfaction, staff productivity, and performance. The role of the process owner is defined as having responsibility for the end-to-end design, development, execution and performance of a business process.

1. Basic Principles of
Business Processes
and Business Process Management

2. Workshop Outlines
■ Day 1: Basic Principles of Business Processes and Business Process
Management
■ Day 1: The Process of Process Management
■ Day 2: BPM Lifecycle & Process Identification
■ Day 3 & 4: Business Process Modeling
■ Day 5: Qualitative and Quantitative Analysis
■ Day 6: Improvement and Implementation
■ Day 6: The Six Core Elements of Business Process Management &
Governance

3. 1. Basic Principles of Business Processes
WHAT IS A BUSINESS PROCESS?
Characteristics of business processes include:
■ They involve several actions, steps, and activities.
■ They usually involve various organizational units.
■ They are targeted.
■ They basically describe an action, decision, and cooperation.
■ The result represents a value for an customer.
■ They describe how the enterprise operates.
■ Actions can be assigned to organizational units or roles.
■ The more branches a business processes has, the more complex it is.

4. Business Process Definition
■ OMG - Business Motivation Model standard (BMM) is defined
business process as an unit that implements strategies and tactics
so that the enterprise achieves its goals.

5. Role
 They invent processes,
 execute them,
 and they are made for them.
■ But processes are not oriented
toward individuals, but toward
roles.
 Human beings are a central element in the world of processes.

6. Process Steps
■ The activities executed by the roles. Besides the sequence of steps,
which is determined by the process, business rules must also be
adhered to when they are executed.

7. Process Topology
■ The explicit process is determined by its topology, that is, by the
steps and their interrelations. Flowcharts—created using BPMN.

8. Horizontal versus Vertical
■ The flowchart shows the process topology in the horizontal level.
■ For processes, the main focus is often on flowcharts. But there’s
additional information available for a business process:
 Process owner
 Goals of the business process
 The customer who benefits from the business process
 The stakeholders who can provide important information on the process
 A brief description of the process

9. ■ The activities have characteristics such as
 Executing role (“work unit”)
 Necessary resources
 Data that is required or generated
 Duration
 Business rules that must be taken into account
 A brief description of the activity

10. Process Goal
■ A goal is a targeted, desirable state. In our context, we consider
not only the final goals, but also goals which can also be
achieved in the course of the business process.
■ The goal can describe a unique state or a steady-state goal, for
example, “the complaint rate must be below 0.5% of all
bookings.”

11. DISCOVERING BUSINESS PROCESSES
Business Process Analysis
■ The purpose of Business Process Analysis (BPA) is to provide explicit process
knowledge.
 Discovering and documenting are the first steps in the explicit consideration of the
business process.
 This is followed by the analysis of the actual process;
 the process design of a new target process;
 the development of the target process;
 the introduction,
 implementation,
 and finally, the maintenance of the current process.

12. Business Process Analysis
■ There are three roles involved in the process discovery:
 The sponsor who sets up the BPA project assumes responsibility for it
and specifies goals.
 The Subject Matter Experts (SME) who provide the process content,
they frequently come from the management level.
 The analysts who control and implement the methodologies of BPA.

13. DISCOVERING BUSINESS PROCESSES
Process of BPA

14. Approach
■ There are different ways to approach process discovery:
 Centralized versus distributed approach,
 Top-down versus bottom-up approach,
 Structured versus free form approach.

15. Processes Everywhere
• Each organization has to manage a number of processes. Typical
examples of processes that can be found in most organizations include:
 Order-to-cash.
 Quote-to-order.
 Procure-to-pay.
 Issue-to-resolution.
 Application-to-approval.

16. • Order-to-cash.

17.  Quote-to-order.

18.  Procure-to-pay.

19.  Application-to-approval.

20. What is BPM?

21. 2. Basic Principles of Business Process
Management
■ The ultimate goal of BPM is the improvement of products and services.
■ It is a management approach that creates the environment necessary
to implement improvement methodologies.
■ “Business Process Management (BPM) is the art and science of
overseeing how work is performed in an organization.

22. ■ Business Process Management (BPM) is a management discipline that
integrates the strategy and goals of an organization with the needs and
expectations of customers by focusing on end‐to‐end processes.
■ BPM comprises
 strategies,
 goals,
 culture,
 organizational structures,
 roles,
 policies,
 methodologies,
 and IT tools to:
o (a) analyze, design, implement, control, and continuously improve end‐to‐end
processes, and
o (b) to establish process governance.

23. 3. Functional management and Process
management
■ There are two main methods; one is functional, and the other is
based on process.
 Functional orientations are organized along functions, like
production, marketing and sales.
 Process orientations let staff interact between these business
functions, or across organizational lines.

24. What is a Functional Approach?
■ Functional Approach is divide company hierarchically into functional
departments (e.g., sales and production).

25. What is a Process Approach?
 A ‘Process’ approach does not divide an organization into smaller
concepts (a top-down approach), but instead defines the ways (i.e.,
processes) in which particular services or products are developed.
 Graphically, a process approach is most commonly represented as a
horizontal cross-section of organizational functions.

26. Process Approach

27. The Difference between a Functional and Process
management
Functional management
■ Staff are grouped by hierarchy.
■ departments are managed vertically.
■ Authority goes top to bottom.
■ Every department’s output has to be coordinated with
other departments.
■ Flows up and down like a pyramid, and each department is
managed separately.
Process management
■ Is most commonly represented as a horizontal cross-
section.
■ defines by processes.
■ Process orientation focuses on the process itself rather
than hierarchies.
■ Staff can share information across different task
boundaries.
■ can have more of a circular flow to achieve their
objectives.
■ Different departments work together to accomplish
shared goals.

28. Benefits of Business Process Management
■ With the help of BPM, managers can more easily:
 Measure and adjust operational processes to suit business needs
 Improve staff productivity by coordinating workforce demands and
business process enhancements
 Apply IT developments to the challenges of business processes
 Respond quickly to changes in projects or emerging opportunities

29. Benefits to the Enterprise
1) Clear ownership and responsibility for continuous improvement
2) Agile response to measured performance
3) Performance measurement benefits cost and quality
4) Monitoring improves compliance
5) Access to useful information simplifies process improvement

30. Benefits to Customers
1) Improved processes will positively impact customer satisfaction
2) Mobilizing staff on stakeholders’ expectations
3) Keeping control on commitments to the customer

31. Benefits to Management
1) Making sure that all the activities realized along a process add value
2) Optimizing performance all along the process
3) Improved planning and projections
4) Overcoming the obstacles of departmental borders
5) Facilitating internal and external benchmarking of operations

32. Benefits to Actors
1) Security and awareness for actors
2) Better understanding of ‘the whole picture’
3) Clarifying the requirements of a workplace
4) Defining precisely the appropriate set of tools for actors

33. Process Owner
• Process Owner Definition
• The Difference Between Process Manager and Process Owner
• Characteristics of Process Owner
• Responsibilities of Process Owner

34. What is a Process Owner
A Process is a repeatable, structured series of steps designed to achieve a
specific outcome. Student registration process
A Process Owner has the ongoing responsibility for the successful:
• design,
• development,
• execution,
• and performance
of a complete end‐to‐end business process.

35. Process owner’s focus Process manager’s focus
 Define the process objectives and mission.
 Optimize the process design.
 Engage stakeholders to ensure alignment
with their requirements and expectations.
 Set and monitor performance targets (KPIs)
 Plan and manage process improvement
opportunities.
 Manage and report on process activities from
end-to-end.
 Document and maintain the process map.
 Train and manage resources assigned to the
process.
 Communicate process changes.
 Review key performance indicators and
identify improvement activities.
Comparison of Process owner and Process manager

36. How many dedicated process owners and managers do we need to
support processes?
How important is this process?
What’s the scale of this process?
How complex is this process or organization?

37. Characteristics of Process Owners:
• Titles
• Substance
• Authority

38. 1. managing a process from end-to-end.
2. the efficient and effective operation of a given process.
3. planning, organizing, and monitoring the process.
4. provide guidance to process participants.
5. sign-off of the process model.
6. Engages a team of stakeholders and SMEs to ensure business process design
meets expectations.
7. Ensures understanding of how people and systems are engaged to support
process execution.
Responsibilities of Process Owners: