Bpms

Apr 13, 2023 1

BPMSBusiness Process Management (System)

By: PT. Sinergy Putra Persada

By: Sudiro

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Content Executive Overview What is BPM? Why BPM?

Today’s Business Challenges How Can BPM Help?

What is BPMS? How can BPMS help? What benefits have others achieved?

BP Nextel Mexico

Conclusion

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Executive Overview

Improving business processes has been the number one priority for CIOs and IT executives for the past few years1. Studies indicate that corporate managers have higher expectations from their CIOs to be more of a business leader by helping to improve business processes2. Improving business processes isn’t something new in the corporate world, and we have seen many different variations of it over the years – Total Quality, Business Process Reengineering, Six Sigma, etc.

1 Gartner – “Making the Difference : The 2008 CIO Agenda” (Jan 2008)2 InformationWeek Analytics 2008 Tomorrow’s CIO

Business Process Management: the Third Wave(Smith, Fingar, 2003)

Internet Globalization Governance Outsourcing

What’s BPM?

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Multidiscipline of a combined knowledge of both business and technology

Source: Dr. Michael Porter, Dr. Michael Hammer, Rummler, Petter Fingar – “Business Process Oriented Organization: Business Process Management” (M2MSysonline.com)

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…IT investments deliver more value to a company’s top and bottom lines – by creating new efficiencies and increasing revenues – than any savings gained from traditional IT cost cutting…3

McKinsey, September 2008

Today’s Business Challenges

Today’s organization has to be able to compete in this global economy with both small and large players around the globe as the barriers to entry in many markets get lower. The ability to compete successfully requires success on many fronts:

Operational efficiency Customer intimacy Product and Service Innovation

3 Managing IT in a downturn, Beyond cost cutting, McKinsey, September 2008

Why BPM?

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While many CFOs see BPM as an initiative that can cut costs, there is also clear evidence to indicate that BPM also affects the top line of a business.4

How Can BPM Help?

Supporting text should contain benefit/solution information such as which business problems exist and how they are solved, the ROI/value produced by addressing the problem, and which solution(s) or pieces of the solution BPMS provides. AgilityBPM can provide the agility needed in today’s rapidly changing business environment. Process automation is one way that BPM can help an organization become more nimble. Business processes organized within a BPM framework are well-documented with clearly-defined steps. Visibility

In this fast paced world, executives need information in real time. Without automated processes, it is very difficult to gain real time insight into the execution of business processes. Efficiencies

BPM can bring tremendous cost savings and cost avoidance to an organization. Optimizing and automating business processes can lead to a reduction in redundancies. Most manual tasks can be eliminated and thus considerably decreasing the risk of errors and rework in the process. Gartner claims that by simply “making the current-state handoffs, timing and responsibilities explicit”, productivity improvements of more than 12 % are typically realized5.

4 http://economist.com/specialreports/displaystory.cfm?story_id=9928154 (accessed July 30, 2008).5 “Business Process Management’s Success Hinges on Business-Led Initiatives”, Gartner, 26 July 2005

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Efficiency Visibility AgilityDelivering more with less

Consistently knowing thecurrent status andoutcome of yourprocesses

Adapting quickly tochanging businessconditions

Reduced process cycletime

Decreased risk in processexecution

Reduced time to marketfor new products

Reduced processexecution cost

Increased regulatorycompliance

Reduced time to react tomarket changes

Increased throughput Reduced processexceptions

Increased new revenues

Increased userproductivity

Faster proactive decisionmaking

Increased existingrevenues

Increased cash flow Increased customersatisfaction

Reduced development,deployment, integrationand maintenance costs

Decreased workingcapital

Enhanced exceptionhandling

Reduced time to take newprojects live

BPM benefit grouped by benefit category

Source : www.oracle.com

History:

What’s Business Process Management (System)?

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Databases

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Self-Generating Integration

SAP usingjava

API

WebService

API

Excel using com

API

MSMQ usingcom or java

API

Databases usingjdbc

API

Busin

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Rule

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Production Business Level

Objects

Business Level Objects

InvoicesBusiness Level

Objects

AFE’sBusiness Level

ObjectsAnything


Pro

cess

Laye

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Any Process

General Workflow System and User InteractionsCalculation

Inte

rface

Laye

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Web Service

Presentation Presentation

XML

API

Back e

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Sys

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SAP usingjava

API

SAP usingjava

API

WebService

API

WebService

API

Excel using com

API

Excel using com

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API


API

Databases usingjdbc

API

Databases usingjdbc

API

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Rule

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Objects


ObjectsAnything


Pro

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Any Process


Inte

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PresentationPresentation PresentationPresentation

XML

API

XML

API

BPMS

TQM

General WorkflowBPR

BPM

time

ERP

WFMEAI

‘85 ‘90 ‘95 ‘05‘00‘98DatabasesDatabases

Back e

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SAP usingjava

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WebService

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Excel using com

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Databases usingjdbc

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ObjectsAnything


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Any Process


Inte

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Web Service


XML

API

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SAP usingjava

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SAP usingjava

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API

WebService

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Excel using com

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Excel using com

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API


API

Databases usingjdbc

API

Databases usingjdbc

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Objects



Objects


ObjectsAnything


Pro

cess

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XML

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BPMS

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cess

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Web Service


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API

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SAP usingjava

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SAP usingjava

API

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API

WebService

API

Excel using com

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Excel using com

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API


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Databases usingjdbc

API

Databases usingjdbc

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Web Service


XML

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XML

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BPMS

TQMTQM

General WorkflowBPR

General WorkflowBPR

BPMBPMBPM

time

ERPERP

WFMWFMEAIEAI

‘85 ‘90 ‘95 ‘05‘00‘98Source : Ravesteyn 2007

View of processes and organization

IT organization Business organization

EAICASE

ERPUMLWorkflow

managementRules

enginesJava

B2Bi

webservicesAct. Based costing

ISO9001

Balanced ScorecardsCont. processimprovement

TQM

ValueChain

Kaizen

Six Sigma

So .....BPMS

A new Software category that supports the entire lifecycle of modeling, executing and monitoring business

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How can BPMS help?

We use a proven methodology which is flexible and customized to individual company objectives.

Modeling

Deploy

Execution

Monitoring

Analyze

Optimize

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What benefits have others achieved?Case study summary:

BPBritish Petroleum (BP) is one of the world's largest energy companies, providing its customers with fuel for transportation, energy for heat and light, retail services and petrochemicals products for everyday items6

The ChallengeBP’s Accounts Payable process involved over 30,000 non-recurring transactions, over 10,000 vendors and 2,500 Accounts Payable approvers. The challenge was to automate this process and streamline the hodgepodge of invoicing systems and approval processes. The Solution

The project resulted in a more streamlined the Accounts Payable interaction and approval process by implementing Oracle BPM Suite. The invoices are now automatically assigned to the appropriate approver using email notifications. 3,000 primary vendors were provided a self-service portal.

The ResultThe Accounts Payable process saw increased turnaround, improved data accuracy and consistency, better audit trails and quality assurance. Data re-entry was eliminated, personnel costs were reduced and cash flow improved. The cost per transaction was reduced by 80% and BP realized a 300% ROI over two years.

6 www.bp.com


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Nextel MexicoSprint Nextel offers a comprehensive range of wireless and wireline communications services bringing the freedom of mobility to consumers, businesses and government users.7

The ChallengeNextel acquired seven different companies in six countries, all with different customer activation processes that involved significant manual entry. Each of the processes had different regulatory requirements. The Solution

Nextel created a common of process services using the Oracle BPM Suite. This solution reduced the manual order entry into provisioning, customer care and billing systems. Business rules were embedded into the automated process to ensure that all regulatory requirements were met.

The ResultThe customer activation time was reduced from 5 days to less than 3 hours, while costs associated with the activation was reduced by 71%. This project realized savings of US$2 million to US$3 million per year.

7 www.sprint.com


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Sample Cost/Benefit Analysis for BPM/ECM

8 The Information Management Journal May/June 2007

Note: Determining the ROI for a significant outlay like ECM or BPM technology can be a complex task. Ensuring that all variables have been captured accurately, validating current costs against existing budget data, and accurately projecting the costs of new technology require diligence. Once developed, cost/benefit analysis should be probed thoroughly to determine how valid the underlying assumptions are8.

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“…IT investments deliver more value to a company’s top and bottom lines – by creating new efficiencies and increasing revenues – than any savings gained from traditional IT cost cutting” - McKinsey, September 2008

BPM is a strategy and technology that delivers value to the organization

by impacting both the top and bottom lines of an organization. However,

this value has to be quantified for the

organization to show the specific impact that will be delivered. This

technology will not only bring quantifiable value to the organization but

will do so without a corresponding increase in

investment.

Conclusion

Bpms

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