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Managing Business Processes Communication and Performance

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Presentation at ICORES 2012 on Enterprise models.
This talk presents a computational model of a generic enterprise (BPEM, which stands for Business Process Enterprise Model), based upon the core concept of business process. BPEM may be seen as a bridge between two worlds of “Enterprise Models”, the world of mathematical models, formal and fully operational for optimization purposes and the world of conceptual models (boxes & arrows type) for management science, for reasoning and communicating about what a company is.

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Managing Business Processes Communication and Performance

  1. 1. Yves Caseau – Business Process Enterprise Model - 2012 1/13 Operations Research for Managing BusinessOperations Research for Managing Business Processes Communication and PerformanceProcesses Communication and Performance BPEM : Business Process Enterprise ModelBPEM : Business Process Enterprise Model ICORES February 2012 Yves Caseau Bouygues Telecom – Bouygues’s eLab National French Academy of Technologies
  2. 2. Yves Caseau – Business Process Enterprise Model - 2012 2/13 MotivationsMotivations  « Traditional » ICORES   Crisp, well-defined models corresponding to a clear issue  Sophisticated optimization techniques that bring value  (compared to human judgment)  « Enterprise as a System » optimization  Cumbersome and coarse models, multiple issues  Simple optimization/simulation methods  Part of management sciences,  a tradition of models & simulation  Why ?  Structural issues (in addition to cultural, political, human …)  How  Enterprise modeling with operational semantics  “As simple as possible but no simpler”  White box model  Complex system approach (rich interaction of various concerns) Cf. “Garbage-can model” of decision Ill-defined problem Human > computer Cf. Vehicle Routing problems Computer > human Not a « personal fiction » ! Not a
  3. 3. Yves Caseau – Business Process Enterprise Model - 2012 3/13 OutlineOutline  Motivations  Operations Research for Management Science  First Part Enterprise Models & Business Processes  Second Part BPEM: Business Process Enterprise Model Four Dimensions of Enterprise Modeling  Third Part Applications – Two Examples  Conclusion
  4. 4. Yves Caseau – Business Process Enterprise Model - 2012 4/13 Enterprise ModelsEnterprise Models Part1:Motivations Ressources CEISAR BAPO (ESAPS) IDEAS CPP (Club Pilotes Processus) Altime MODAF Business Organization Architecture Process Activity Activity Activityprocess Manual/assisted/automated value Organization/ Actors Information objectives Units/roles Enterprise Entity Capability Role ServicesProcess Strategy /goals Information System Business Process Action Plan Innove / adjust / optimize Results: -Satisfaction - value - risk Managing processes Support process Functions Business processes Business processes Business processes environment customers Logical Capability project delta data function Activity Information system Organization resource skills Strategy/vision TasksEnterprise IT
  5. 5. Yves Caseau – Business Process Enterprise Model - 2012 5/13 BPEM at a glanceBPEM at a glance Part1:Motivations Leadership Process KPI people Policy & Strategy Partnership & resources Leadership Customer results Society results Innovation & Learning enablers results Left out (long term) Perimeter of BPEM Information Flows activity activity Environment Management Control Coordination customer Production Factors Products / services transfer synchronization manage  Enterprise macro-model (Mintzberg)  Executable (operational semantics)  Focus on Business Process & Communication  What BPEM is and isn’t, based on EFQM  Focus on structure  Short-term vision of enterprise operations
  6. 6. Yves Caseau – Business Process Enterprise Model - 2012 6/13 BPEM : Enterprise ModelBPEM : Enterprise Model Part2:BPEM H T Communication Matrix C1 C2 Cn… Information System IT BusinessProcesses Market Requests delivery Management Capabilities Functiona l mapping Four dimensions:  Business Processes, associated with customer requests, represent enterprise operations  Processes require time and consume resources, value creation depends on SLA (quality is expressed as timeliness)  Organization is the combination of hierarchy (top-down mapping of capabilities) and project/process management  Information flows derive from processes (signal & content) BPEM
  7. 7. Yves Caseau – Business Process Enterprise Model - 2012 7/13 BPEM Organization ModelBPEM Organization Model Part2:BPEM T U 1 … Hierarchical Management U 2 U 3 … U 4 U Un -1 U n Process(Transverse) Management Functional mapping C1 C2 Cn… Capabilities R1(l1,l2, .. , lq) Set of Ressources Activity R2(l1,l2, .. , lq) Rp(l1,l2, .. , lq) WBS Σ(skill, level, units)  Hierarchy : tree structure (organizational chart)  Transverse : set of coordination resources  Communication throughput is measured with man.hour  Functional units are described through capabilities  man.hours  skill levels  Supports specialization (one unit = one capability) as well as polyvalence
  8. 8. Yves Caseau – Business Process Enterprise Model - 2012 8/13 BPEM : Business Process ModelBPEM : Business Process Model  Business Process Patterns (sequence of activities with skill requirements)  Business Process Instances (Actual load + value + SLA )  Stochastic Load Generation  Cover multiple scenarios (burst, overload, …)  Events:  Re-priorization based on value change  Activity duration changes Part2:BPEM A1:C1 Σ(skill,level) A2 An Process pattern Stochastic Request Model1 Process Instance value time WBS Σ(units ) WBS Σ(units) WBS Σ(units) Variation in rate & load request VV m in m ax SLA (Service Level Agreement) Time is the only dimension for quality = better skills means faster execution
  9. 9. Yves Caseau – Business Process Enterprise Model - 2012 9/13 BPEM : Communication ModelBPEM : Communication Model Part2:BPEM H T Management Process Monitoring & Management Transfer & Synchronize WBS Σ(units ) WBS Σ(units) WBS Σ(units) Environment Event: Value Variation Event : production variation  Business processes operations entail 3 types of information flows:  Inter-activity (ignored)  Transfer & synchronization between consecutive activities  Monitoring & Management between units and T&H  BPEM information flows:  valued in man.hour  generated from BP measures, using simple ratios  BPEM semantics = scheduling : Communication flows are broken into communication units Precedence constraints represent: (a) BP orchestration (b) event management
  10. 10. Yves Caseau – Business Process Enterprise Model - 2012 10/13 Optimizing the use of communication channelsOptimizing the use of communication channels  Application of BPEM to study the impact of communication channels on performance  Four categories of communication channels  “Communication Channel Model”  Characteristics  Policies Part3: Applications Communication Channel Model BPEM Results (value) Learning (optimization) Activities to be assigned to resources Channel PoliciesCommunication flow units to be scheduled Scheduler Receivers Organization Rules/ Culture Information Flows Meetings Face-to-Face Electronic – Synchronous Electronic – Asynchronous • Randomization (Monte-Carlo) • Evolutionary algorithms (learning): local opt, genetic algorithm Channel Performance Characteristics: Throughput, Latency, Loss, Scheduling constraints
  11. 11. Yves Caseau – Business Process Enterprise Model - 2012 11/13 Simulation of Information FlowsSimulation of Information Flows  Goals – How to ?  Best use of multiple / new communication channels ?  Study the resilience of organization w.r.t. load distribution and bursts  Look at Organizational Architecture issues (e.g., flat hierarchies)  Organization shapes communication channels (e.g., meetings)  Simulation – Preliminary results  BPEM simulation produces value, usage ratios, lead time statistics  Effectiveness of email  Importance of Affiliation Network Structure (MSN 2012 paper)  Organizational design impacts information flows  Next Steps  Full compliance with BPEM   What-if scenarios  New 2.0 communication tools Part3: Applications Leverage their specificity • synchronous/ asynchronous • Face-to-face vs electronic • Ease of sharing (1-to-N) • immersive vs. multitasking • etc.
  12. 12. Yves Caseau – Business Process Enterprise Model - 2012 12/13 Understanding lean management of processesUnderstanding lean management of processes  Two scenarios Part3: Applications  Experimental verification of Taiichi Ohno’s insight : a « tight system » is more robust  Lean systems are more flexible  Economic rationalization (cost of lowering utilization rate) depends on CoD (Cost of Delay) Strict SLA – 60% utilization BPEM « lean » Scheduling Policies Scheduler BPEM « reg » SameBusinessProcesses Loose SLA, 80% utilization
  13. 13. Yves Caseau – Business Process Enterprise Model - 2012 13/13 ConclusionsConclusions  We need Enterprise Models  Use OR for Management science  Other applications : Information System  BPEM is compatible with most conceptual models   We need computational Enterprise Models  Complex issues : simulation as an investigation tool  Structural issues are only one of the dimensions, but it is critical and amenable to analysis though simulation  Managing Information Flows is a key part of management science  An old idea (March & Simon)  A modern idea (Enterprise 2.0 & information overload)  Communication requires time: scheduling & structure matters Yves CASEAU

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