IntroductiontoBusinessProcesses–PartII

LearningHowtoDevelop,Manage&ImproveBusinessProcesses

BusinessProcessManagementOverview

BusinessProcessManagementScope

TheHierarchyofBusinessProcesses

Business

BusinessProcess

BusinessProcessManagement

Implements&Uses

ManagedUsing

TheHierarchyofBusinessProcess  Business

  Referstoindividuals,interactingtogethertoperformasetofactivitiestodelivervaluetocustomersandareturnoninvestmenttothestakeholders

  BusinessProcess  Processisadefinedsetofactivitiesorbehaviorsperformedby

humansormachinestoachieveonormoregoal  Triggeredbyspecificeventsandhaveoneormoreoutcomethat

mayresultintheterminationoftheprocessorahandofftoanotherprocess

  Composedofacollectionofinterrelatedtasksoractivitieswhichsolveaparticularissue

  End‐to‐endworkwhichdeliversvaluetocustomers–end‐to‐endinvolvescrossinganyfunctionalboundaries

TheHierarchyofBusinessProcess  BusinessProcessManagement

  Disciplinedapproachtoidentify,design,execute,document,measure,monitorandcontrolbothautomatedandnon‐automatedbusinessprocessestoachieveconsistent,targetedresultsalignedwithanorganization’sstrategicgoals

  Involvesthedeliberate,collaborativeandincreasinglytechnology‐aideddefinition,improvement,innovationandmanagementofend‐to‐endbusinessprocessesthatdrivebusinessresults,createvalueandenableanorganizationtomeetitsbusinessobjectiveswithmoreagility

  Enablesanenterprisetoalignitsbusinessprocessestoitsbusinessstrategy,leadingtoeffectiveoverallcompanyperformancethroughimprovementsofspecificworkactivitieseitherwithinaspecificdepartment,acrosstheenterpriseorbetweenorganizations

BPMCoreConceptsManagement

Discipline&ASetofEnablingTechnologies

AddressesEnd‐to‐EndWork

Continuous,OngoingSetofProcesses

FocusedonManagingEnd‐to‐EndProcesses

IncludestheModeling,Analysis,

DesignandMeasurementof

Processes

RequiresASignificantOrganizationalCommitment

TechnologyEnabled

BPMCoreConcepts  BPMisamanagementdisciplineandasetofenablingtechnologies  BPMaddressesend‐to‐endworkanddistinguishesbetweenasetof

sub‐processes,tasks,activitiesandfunctions  BPMisacontinuous,ongoingsetofprocessesfocusedon

managinganorganization’send‐to‐endprocesses  BPMincludesmodeling,analysis,designandmeasurementofan

organization’sbusinessprocesses  BPMrequiresasignificantorganizationalcommitment,often

introducingnewroles,responsibilitiesandstructurestotraditionalfunctionallyorientedorganizations

  BPMistechnologyenabledwithtoolsforvisualmodeling,simulation,automation,integration,controlandmonitoringofbusinessprocessesandtheinformationsystemswhichsupporttheseprocesses

ManagementDiscipline&EnablingTechnologies  IncorrectuseofthetermBPM

  SoftwarecompaniesoftenrefertoBPMtodescribethecapabilitiesofaparticularproductortechnology

  Practitioners,managementconsultantsandacademicstypicallydiscusstheprocessandmanagementdisciplineofBPM

  BPMisamanagementdisciplineandprocessformanaginganorganization’sbusinessprocesses  Enablingtechnologyismeaninglesswithoutthemanagement

disciplinesandprocessesforexploitingthetechnology

  BPMinvolvesmanagingtheend‐to‐endworkorganizationsperformtocreatevaluefortheircustomers  Performanceofthisworkisessentiallyhoworganizationsfulfilltheir

mission

ManagementDiscipline&EnablingTechnologies

  Vendorshavecreatedapplicationsuiteswhichhelpenableorganizationstobettermanagetheirbusinessprocesses  Toolstovisuallydesignandmodelbusinessprocesses  Simulateandtestbusinessprocesses,automate,controlandmeasurebusinessprocesses

  Providefeedbackandreportingonprocessperformance  Somevendorshavecombinedtheseintointegratedbusinessprocessmanagementsuites

ManagementDiscipline&EnablingTechnologies  Mostlargeorganizationshaveasignificantinvestmentintoanumberoflegacysystems  Designedtosupportspecificfunctions  Inordertomanagetheend‐to‐endworkinvolvedinbusiness

processes,aBPMSmustbeabletointegratewithlegacysystemsinordertocontrolwork,getinformationormeasureperformance

  CommonframeworkforhowthesetechnologiesaredeployedismostoftenreferredtoasaServiceOrientedArchitecture(SOA)

  Standardizingonaspecificsetofopentechnologiescommonlyreferredtoaswebservices

  ByleveragingwebservicesinaSOA,organizationscanbuildandmanageend‐to‐endbusinessprocessesacrossorganizationalsilosandtheirlegacysystems

AddressesEnd‐to‐EndWork  Processvs.Function

  Businessfunctionsaretypicallydefinedbyagroupofactivitiesrelatedbyaparticularskillorgoalsuchassales,financeormanufacturing

  Functionsfocusontheseindividualtaskswhilebusinessprocessesfocusontheend‐to‐endworkacrossfunctionalboundariestodelivercustomervalue

  Functionsareongoingwherebusinessprocesseshavedefinedinputsandoutputs

  Businessprocessesfocusonend‐to‐endtransactionsthatdelivervalue

OngoingManagementofProcesses  BPIvs.BPM

  BPI–BusinessProcessImprovement  OneTimeExercisetoFixorDesignAProcess

  BPM–BusinessProcessManagement  Ongoingandcontinuous

  Don’tgetthesetermsconfusedasmanyconsultantsdo

OngoingManagementofProcesses  BPMinvolvesapermanentongoingorganizationalcommitmenttomanagingtheorganization’sprocesses

  Includes  Modeling  Analysis  ProcessDesign  PerformanceMeasurement  Processtransformation  Continuousfeedbacklooptoensuretheorganization’sbusinessprocessesarealignedtoitsstrategyandperformingtoexpectations

Modeling,Analysis,Design&Measurement  PracticeofBPMrequiresthemeasurementandsupervisionof

processperformance  Settingprocessperformancegoals  Measuringactualperformance  Reviewingtheeffectivenessofbusinessprocesses  Providinginformation,insightandfeedbacktootherprimaryactivities

suchasprocessanalysis,designandtransformation

  Defineandmeasurebusinessprocessperformanceacrosstwoprimarydimensions  Extenttowhichprocessgoalsareattained  Efficiencyandeffectivenessofprocessactivities

  Gatherinformationatkeypointsintheprocesstosupportdecisions  Cost  Timetocompletionoftasks

OrganizationalCommitment  PracticeofBPMrequiresasignificantorganizationalcommitment

 Managementofend‐to‐endbusinessprocesscrossesorganizationalboundaries

  Newroles&responsibilitiesareintroducedsuchasprocessowners,designersandarchitects

  Individualresponsibleforend‐to‐endprocessdesignmustinteractwithtraditionalfunctionallybasedmanagers

  Newgovernancestructuresneedtobeintroducedwhichmaychangethewayorganizationsmakedecisionsandallocateresources

OrganizationalCommitment

“Horizontal”cross‐functional

processesExternallyFocused

LinkOperationalProcesses

CrossOrganizationBoundaries

“Vertical”OperationalProcesses–InternallyFocused

OrganizationalCommitment Withoutorganizationalcommitment,thepracticeandbenefitsofBPMisunlikelytomaturewithinanorganization

 Withoutsupportingleadership,values,beliefsandculture,BPMisunlikelytosuccessfullytakeholdwithinanorganization