BPM Techniques and Tools: A Quick Tour of the BPM Lifecycle
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Transcript of BPM Techniques and Tools: A Quick Tour of the BPM Lifecycle
1
BPM Techniques and ToolsA Quick 360° Tour of the BPM
Lifecycle
Marlon DumasUniversity of Tartu
Body of principles, methods and tools to • analyze,• (re-)design,• execute and • monitor business processes, with the aim of improving their performance.
What is BPM?
Improving Performance (Rummler’s Framework)
Financial
HumanResources
Technology
Economy CultureRegulatory
Organisation
Performance ManagementPerformance Planning
Function A Function B Function C
Assets &Resources
Business Environment
Stakeholders
Customers
Materials
Competitors
Business Process
Business Process
Business Process Valu
e
3
EfficiencyIntegration
Compliance
Internal
Quality
Networking Agility
External
The Seven Values of BPM – Rosemann et al. 2011
Transparency
M. Rosemann et al., “Value-Driven BPM: Which Values Matter for BPM?”, 2011
The BPM lifecycle
Process identification
Conformance and performance insights
Conformance and performance insights
Processmonitoring and
controlling
Executable processmodel
Executable processmodel
Processimplementation To-be process
modelTo-be process
model
Processanalysis
As-is processmodel
As-is processmodel
Process discovery
Process architectureProcess architecture
Processredesign
Insights onweaknesses and
their impact
Insights onweaknesses and
their impact
5
Gover-nanceCultureStrategy
What?1. Identify an organization’s business processes2. Prioritize their management based on certain criteria
Why?3. Get a broad picture of processes in the org and relations4. Maximize value of BPM initiatives
Process Identification
1. Designation• Enumerate main processes• Determine process scope
2. Prioritization
Process Identification
After Davenport (1993)
Process Architecture
PrioritizedProcessPortfolio
Process Enumeration
“Most businesses have just three core processes:1. Sell stuff2. Deliver stuff3. Making sure you have stuff to sell and deliver”
Geary Rummler
Porter: Components of a process architecture
Core Processes
Management Processes
Sup
plie
rs /
Par
tner
sC
ustomers / S
takeholders
Support Processes
After Michael Porter (1985)
StrategicManagement
LogisticsManagement
WarehouseManagement
SuppliersManagement
Management processes
Finance Indirectprocurement IT HR
Core processes
Support processes
WholesalerExample: Process Landscape
DemandManagement
SalesDirectprocurement
Distribution
ServiceMarketing
Process Scoping
Processes are interdependent insights into interrelations required
• Horizontal: upstream – downstream processes• Vertical: main processes – sub-processes• Specialization: general – special product/service
Process architecture
• Chain of core processes an organization performs to deliver value to customers and stakeholders
Horizontal Scoping: Value Chains
Procure-to-service
Vertical Scoping: Process HierarchiesProcess hierarchy
Level 1
ProcessLandscape
Level 2Main
Processes(e.g. BPMN)
Level 3+Subprocesses, Tasks
(e.g. BPMN)
Transparency
Financial institution
Example: Prioritized Process Landscape
Health
Impo
r tan
c e
High
LowGoodPoor
Short-term actionRating
Contractpreparation
Loan marketevaluation
Handling ofpayments
Loanapplication
Loanplanning
Loancontrolling
Loandecision
Feasibility
Low
High
Medium
Possible Strategic fit?
Transparency
The BPM Lifecycle
Process identification
Conformance and performance insights
Conformance and performance insights
Processmonitoring and
controlling
Executable processmodel
Executable processmodel
Processimplementation To-be process
modelTo-be process
model
Processanalysis
As-is processmodel
As-is processmodel
Process discovery
Process architectureProcess architecture
Processredesign
Insights onweaknesses and
their impact
Insights onweaknesses and
their impact
15
Modeling notations
BPMN
DMN
Tools Syntax & style checking
Model repository management
Dictionary & ontologies
Process Discovery
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Discovery techniques
Interviews, walkthroughs
Observation
Document analysis, automated process discovery
Workshops (e.g. sticky-notes)
Modeling guidelines and quality frameworks
7PMG
Silver’s BPMN style guidelines
SEQUAL framework
Process Discovery
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Business process model
ERP
Senior Finance Officer
FinanceDepartment
Check Invoice
Mismatches
Enter InvoiceDetails
mismatch exists
no mismatches
Block Invoice
Invoice received
Invoice posted
Post Invoice
Invoice blocked
Invoice InvoiceReport
InvoiceInvoice DB
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Transparency
The BPM lifecycle
Process identification
Conformance and performance insights
Conformance and performance insights
Processmonitoring and
controlling
Executable processmodel
Executable processmodel
Processimplementation To-be process
modelTo-be process
model
Processanalysis
As-is processmodel
As-is processmodel
Process discovery
Process architectureProcess architecture
Processredesign
Insights onweaknesses and
their impact
Insights onweaknesses and
their impact
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Process analysis techniques
Lean
Waste analysis
Six big losses
Bottleneck analysis
Six Sigma
Value-added
analysis
Root-cause
analysis
Pareto analysis
Business Analysis
SWOT
Stakeholder analysis
Issue Register
Operations Mgnt.
Flow Analysis
Queuing Analysis
Simulation
Quality Efficiency
The BPM lifecycle
Process identification
Conformance and performance insights
Conformance and performance insights
Processmonitoring and
controlling
Executable processmodel
Executable processmodel
Processimplementation To-be process
modelTo-be process
model
Processanalysis
As-is processmodel
As-is processmodel
Process discovery
Process architectureProcess architecture
Processredesign
Insights onweaknesses and
their impact
Insights onweaknesses and
their impact
21
Transactional Redesign• Doesn’t put into question the current process structure• Seeks to identify problems and resolve them incrementally,
one step at a time• E.g. Business Process Reengineering (BPR)
Transformational Redesign• Puts into question the fundamental assumptions and
principles of the existing process structure• Aims to radically change the process structure• E.g. Heuristic process redesign
Process Redesign Styles
Capture information once and at the source
Subsume information-processing work into the real work that produces the information
Have those who use the output of the process drive the process
Put the decision point where the work is performed, and build control into the process
…
Business Process Reengineering (Hammer)
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Quality Efficiency
• Task elimination• Task composition/decomposition• Triage
Task-level
• Re-sequencing• Parallelism enhancementFlow-level
• Specialization & standardization• Resource optimization• Communication optimization• Automation
Process-level
Redesign heuristics (Reijers et al.)
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Cost
Quality
Time FlexibilityQuality Efficiency Agility
The BPM lifecycle
Process identification
Conformance and performance insights
Conformance and performance insights
Processmonitoring and
controlling
Executable processmodel
Executable processmodel
Processimplementation To-be process
modelTo-be process
model
Processanalysis
As-is processmodel
As-is processmodel
Process discovery
Process architectureProcess architecture
Processredesign
Insights onweaknesses and
their impact
Insights onweaknesses and
their impact
25
Process automation
Executable process design
BPMS Implementation
Enterprise system
configuration
API Design...
Process change management
Job redesign
Change resistance
Performancemanagement
planning
Training….
Process implementation
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Quality
Efficiency
Compliance
Transparency
Integration
The BPM lifecycle
Process identification
Conformance and performance insights
Conformance and performance insights
Processmonitoring and
controlling
Executable processmodel
Executable processmodel
Processimplementation To-be process
modelTo-be process
model
Processanalysis
As-is processmodel
As-is processmodel
Process discovery
Process architectureProcess architecture
Processredesign
Insights onweaknesses and
their impact
Insights onweaknesses and
their impact
27
Process monitoringDashboards & Reports
Process MiningEventstream
DB
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Process Mining
29
/
event log
discovered modelDiscovery
Conformance
Deviance
Differencediagnostics
Performance
input model
Enhanced modelevent log’
Quality Efficiency Compliance
Transparency
EfficiencyIntegration
Compliance
Internal
Quality
Networking Agility
External
Quo Vadis
Transparency
M. Rosemann et al., “Value-Driven BPM: Which Values Matter for BPM?”, 2011
1980-…TQM
Six Sigma
1980…BPRLean
2000…ISO 9001
Sarbanes-Oxley
1990…Workflow Mngt.
SOARPA
2000-…BPO
Open InnovationCustomer Journey
2010-…Case Mgnt.
Digital Transf.Vertical Integration
1990-…Process ModelingDecision Modeling
Customer Journey Mapping
Networking Customer intimacy Customer journey analysis
Privacy, trust, integrity Blockchain
Agility / adaptability
Vertical integration Integrated product & process management
Offline-to-online integration
Digital transformation
Rapid lifecycle iteration NESST
Personalized conversations
Predictive BPM
Challenges & Opportunities
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Want to know more?
Starts 10 October 2016
Register at: http://moocs.qut.edu.au