Introduction to BPMN (with examples)anna.lamek/ZAJECIA/BPM/BPMN_intro.pdf · Introduction to BPMN...
Transcript of Introduction to BPMN (with examples)anna.lamek/ZAJECIA/BPM/BPMN_intro.pdf · Introduction to BPMN...
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Introduction to BPMN (with
examples)
Source of the presentation: Prof. Marlon
Dumas materials (BPMN expert)
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Dumas, La Rosa, Mendling & Reijers: Fundamentals of Business
Process Management, Springer 2013
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What is a Business
Process?
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ObtainPO
confirm.
Prepare shipment
Scheduledelivery
Issue invoice
Check Invoice
Loadtruck
Check &confirm
PO
Notify shipment
Unload truck
Package products
Issuedelivery receipt
Request PO change
Match incomingpayment
Schedulepayment
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Financial
Human
Resource
s
Technolog
y
Organisation
Function
AFunction
B
Function C
Assets &
Partners
Customers
Materials
Business Process
Business Process
Business Process
Business processes
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ObtainPO
confirm.
Scheduledelivery
Unloadtruck
Issuedeliveryreceipt
Checkinvoice
Schedulepayment
Check &confirm
PO
Packageproducts
Loadtruck
Notifyshipment
Issueinvoice
Matchpayment
Paymentmade
POreceived
POissued
Goodsarrived
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a chain of events, activities and decisions
...involving a number of actors and objects,
….triggered by a need
and leading to an outcome that is of value to a customer.
Examples:
• Order-to-Cash
• Plan-to-Produce
• Purchase-to-Pay
A business process is…
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Transformation
Process
Input
Resource:
-Capital
-Material
-Machines
-Installations
-Labour, HR, HCM
-etc.
-Product
-Services
-Trainings
-Consulting
-Sales revenues
Business process as a tranformation process
Output (End-product)
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fault-to-resolution process
VA
LU
E
Customer
InsuranceCompany
Parts
StoreService
Dispatch
Centre
Technician
Customer
Call Centre
Customer
“My washing machine doesn’t
work…”
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Negative outcomes (value-reducing):
• Fault not repaired in a timely manner
• Fault repaired but customer pays more than
expected
Positive outcomes (value-creating):
• Fault repaired with minor intervention
• Fault repaired, covered by warranty
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What is Business
Process
Management?
And why should I
care about it?
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Process performance
If you had to choose between two
services, you would typically choose the
one that is:
• F…
• C…
• B…
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Process performance
If you had to choose between two
services, you would typically choose the
one that is:
• Faster
• Cheaper
• Better
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Process performance
Three dimensions of process performance
• Time
• Cost
• Quality
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Greet &
seat
Take
order
Bring
menu
Serve
meal
Present
bill
Issue
invoiceCustomer
paid
Customer
arrived
Improving process performance
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How would you improve this
process?
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Eliminate Cooking
Outsource to Customer Standardize
Eliminate Waiters
Invest and Build
Automate
Re-sequence
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Business Process Management (BPM)
Body of principles, methods and tools to
design, analyze, execute and monitor
business processes, with the aim of
improving their performance.
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Business
Processes
IT systems
Employees
Data Trading
Partners
SuppliersIT infrastructure
Customers
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Why BPM?
“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.”Bill Gates17
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In other words…
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InformationTechnology
Process
Change
Yields
Yields
BusinessValue
Index Group (1982)
Enables
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Why BPM
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How to go about
BPM?
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The BPM lifecycle
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Process identification
Conformance and performance insights
Conformance and performance insights
Processmonitoring and
controlling
Executable processmodel
Executable processmodel
Processimplementation To-be process
model
To-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 identification steps1. Designation step
–Enumerate main processes
–Determine process scope
2. Prioritization step (aka Process selection)Prioritize processes based on:
– Importance
–Health
–Feasibility
After Davenport (1993)
Process
Architecture
Prioritized
Process
Portfolio
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Process Enumeration
“Most businesses have just three core processes:
1. Sell stuff
2. Deliver stuff
3. Making sure you have stuff to sell and deliver”
Geary Rummler
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Porter: Components of a
process architecture
Core Processes
Management
Processes
Supplie
rs / P
art
ners
Custo
mers
/ Sta
kehold
ers
Support Processes
After Michael Porter (1985)
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Example: core, support and management
processes
Core processes
• Sales (lead-to-quote, quote-to-order, order-to-cash)
• Direct procurement (supplies replenishment)
• Production (planning and excution)
Support processes
• Indirect procurement (parts replenishment, operational resources replenishment…)
• HR (policies update, recruitment, induction, probation, performance appraisal and professional development…)
• …
Management processes
• Suppliers management (suppliers planning, suppliers acquisition…)
• Logistics management (logistics planning, logistics controlling…)
• …
Wholesaler
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Strategic
Management
Logistics
Management
Warehouse
Management
Suppliers
Management
Management processes
FinanceIndirect
procurementIT HR
Core processes
Support processes
WholesalerExample: process architecture
Demand
Management
SalesDirect
procurementDistribution
ServiceMarketing
Process
group
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Strategic
Management
Corporate
Development
Investor
Relations
Risk Assessment & Management
Market
Development
Management processes
Marketing & Sales
Underwriting
Management
Policy
Servicing
Claims
Management
Payments Collection and Disbursement
Assets Management
Finance/
Treasury
Legal/
AuditReinsurance IT HR
Core processes
Support processes
Insurance companyExample: process architecture
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Prioritization (aka Process
Selection)1. Importance
Which processes have greatest impact on the organization‘s
strategic objectives?
2. Health (or Dysfunction)Which processes are in deepest trouble?
3. FeasibilityWhich processes are most susceptible to successful process
management?
Prioritized process portfolioHammer, Champy (1993)
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The BPM lifecycle
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Process identification
Conformance and performance insights
Conformance and performance insights
Processmonitoring and
controlling
Executable processmodel
Executable processmodel
Processimplementation To-be process
model
To-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
![Page 30: Introduction to BPMN (with examples)anna.lamek/ZAJECIA/BPM/BPMN_intro.pdf · Introduction to BPMN (with examples) Source of the presentation: Prof. Marlon Dumas materials (BPMN expert)](https://reader034.fdocuments.us/reader034/viewer/2022052320/5f0d2d737e708231d4390d88/html5/thumbnails/30.jpg)
Business process model
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ERP
Senior Finance Officer
Finance
Department
Check
Invoice
Mismatches
Enter
Invoice
Details
mismatch
exists
no
mismatches
Block
Invoice
Invoice
receivedInvoice
posted
Post Invoice
Invoice
blocked
Invoice InvoiceReport
InvoiceInvoice DB
Invoice handling example
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The BPM lifecycle
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Process identification
Conformance and performance insights
Conformance and performance insights
Processmonitoring and
controlling
Executable processmodel
Executable processmodel
Processimplementation To-be process
model
To-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
![Page 32: Introduction to BPMN (with examples)anna.lamek/ZAJECIA/BPM/BPMN_intro.pdf · Introduction to BPMN (with examples) Source of the presentation: Prof. Marlon Dumas materials (BPMN expert)](https://reader034.fdocuments.us/reader034/viewer/2022052320/5f0d2d737e708231d4390d88/html5/thumbnails/32.jpg)
Qualitative process analysis
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Root-cause analysis example
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Quantitative process analysis
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Process simulation example
![Page 34: Introduction to BPMN (with examples)anna.lamek/ZAJECIA/BPM/BPMN_intro.pdf · Introduction to BPMN (with examples) Source of the presentation: Prof. Marlon Dumas materials (BPMN expert)](https://reader034.fdocuments.us/reader034/viewer/2022052320/5f0d2d737e708231d4390d88/html5/thumbnails/34.jpg)
The BPM lifecycle
34
Process identification
Conformance and performance insights
Conformance and performance insights
Processmonitoring and
controlling
Executable processmodel
Executable processmodel
Processimplementation To-be process
model
To-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
![Page 35: Introduction to BPMN (with examples)anna.lamek/ZAJECIA/BPM/BPMN_intro.pdf · Introduction to BPMN (with examples) Source of the presentation: Prof. Marlon Dumas materials (BPMN expert)](https://reader034.fdocuments.us/reader034/viewer/2022052320/5f0d2d737e708231d4390d88/html5/thumbnails/35.jpg)
Process redesign
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AS-IS process model TO-BE process model
Cost
Quality
Time
Flexibility
![Page 36: Introduction to BPMN (with examples)anna.lamek/ZAJECIA/BPM/BPMN_intro.pdf · Introduction to BPMN (with examples) Source of the presentation: Prof. Marlon Dumas materials (BPMN expert)](https://reader034.fdocuments.us/reader034/viewer/2022052320/5f0d2d737e708231d4390d88/html5/thumbnails/36.jpg)
The BPM lifecycle
36
Process identification
Conformance and performance insights
Conformance and performance insights
Processmonitoring and
controlling
Executable processmodel
Executable processmodel
Processimplementation To-be process
model
To-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
![Page 37: Introduction to BPMN (with examples)anna.lamek/ZAJECIA/BPM/BPMN_intro.pdf · Introduction to BPMN (with examples) Source of the presentation: Prof. Marlon Dumas materials (BPMN expert)](https://reader034.fdocuments.us/reader034/viewer/2022052320/5f0d2d737e708231d4390d88/html5/thumbnails/37.jpg)
Process implementationProcess
automation
Executable process design
Configuration & coding
Testing
...
Process change
management
Job redesign
Training
Performance
management plan
….37
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The BPM lifecycle
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Process identification
Conformance and performance insights
Conformance and performance insights
Processmonitoring and
controlling
Executable processmodel
Executable processmodel
Processimplementation To-be process
model
To-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
![Page 39: Introduction to BPMN (with examples)anna.lamek/ZAJECIA/BPM/BPMN_intro.pdf · Introduction to BPMN (with examples) Source of the presentation: Prof. Marlon Dumas materials (BPMN expert)](https://reader034.fdocuments.us/reader034/viewer/2022052320/5f0d2d737e708231d4390d88/html5/thumbnails/39.jpg)
Process monitoring
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Dashboards, alerts & reports
Model-based analytics (p. mining)Event
streamDB logs
![Page 40: Introduction to BPMN (with examples)anna.lamek/ZAJECIA/BPM/BPMN_intro.pdf · Introduction to BPMN (with examples) Source of the presentation: Prof. Marlon Dumas materials (BPMN expert)](https://reader034.fdocuments.us/reader034/viewer/2022052320/5f0d2d737e708231d4390d88/html5/thumbnails/40.jpg)
Roles in the BPM lifecycle
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Process identification
Conformance and performance insights
Conformance and performance insights
Processmonitoring and
controlling
Executable processmodel
Executable processmodel
Processimplementation To-be process
model
To-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
BPM group
Developer
Process
owner Analyst
Process
participants
System
admin/operati
ons team
![Page 41: Introduction to BPMN (with examples)anna.lamek/ZAJECIA/BPM/BPMN_intro.pdf · Introduction to BPMN (with examples) Source of the presentation: Prof. Marlon Dumas materials (BPMN expert)](https://reader034.fdocuments.us/reader034/viewer/2022052320/5f0d2d737e708231d4390d88/html5/thumbnails/41.jpg)
Your turn• Think about key activities of your organization and a
processes in this organization:
– What kind of start-up enterprise you are?
– What is your proposition of new machine (value proposition)? How
you want to create your prototype (ideas, concepts, methods, tools)
– Try to identify groups of processes (create a HOUSE for your
company)
– Choose one core process
– Who is resposible for efficiency of this process? (MAIN ACTORS)
– Try to model it as a value chain (VALUE CHAIN only activities
without events/gateways)
– What value does this process deliver to your customer (OUTPUT
IDENTIFICATION)? List at least 3 outcomes of the process.
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