The Art of Process Modeling: Theory and Practice

Copyright Kemsley Design Ltd., 2007

The Art of Process Modeling: Theory and PracticeSandy KemsleyKemsley Design Ltd.www.column2.com


Agenda

Goals of process modeling BPM and SOA Process design patterns Business rules and business

intelligence Modeling for ROI


BPM Goals

Efficiency Automating steps and handoffs Integrating systems and data sources

Compliance Achieving and proving standardization

Agility Changing processes quickly and easily

Visibility See what’s happening in a process


Why We Model Business Processes Document current state Identify opportunities for process

improvement Driven by other requirements, e.g.,

compliance, quality management May result in manual process improvement

Identify opportunities for process automation What can be automated What should be automated


Process Thinking

Cross-departmental: looking beyond functional silos

Optimization of end-to-end process cycle rather than local maxima

Focus on creating value for customers/shareholders

Enabling agility: built to change, not built to last


Modeling Tools

Visio Modeling-only tools

ARISProforma

BPMS vendor modeling/design toolBrowser-basedLicensed desktop applicationFree downloadable application


From Collaboration to Implementation Redraw process model in each

environment One-way, one-time export/import from

modeling to execution environment Round-tripping between modeling and

execution environments Shared model


BPM and SOA


A Short Segue on BPM/SOA

BPM:Management practiceTools for automating processes

SOA:Architectural philosophyDesign standards-based services to

access system functionality


BPM and SOA

Service A Service B Service C

Service D Service E

LegacySystem Database ERP

System

ProcessStep 1

ProcessStep 2

ProcessStep 3

ProcessStep 4


BPM and SOA Together

BPM is the “killer app” for SOA; SOA is the enabling infrastructure for BPMSOA alone only allows you to design

and build a set of servicesBPM alone would require custom

coding for each system integration BPM + SOA orchestrates people and

services into a business process


SOA in Process Modeling

Discovering servicesWhat services already existWhether existing services meet the

needs Specifying services

What new services need to be createdWhat legacy functions need to be

wrapped in services


Process Modeling and Design Patterns


Initiating Processes

Human intervention External event

e.g., content added to repository Invoked as web service


Human-Facing Steps

Work type:TransactionalCollaborative

Participation frequency:OccasionalHeads-down

Participants outside the firewall Monitoring and governance


System Steps

Web service orchestration and legacy application integrationData synchronizationInvoke subprocesses

Content management integration


Role of Content

Document-focused: Create, review and approve document Document content does not impact process

flow Usually collaborative

Document-driven: Complete a transaction based on document

content Document content controls process flow


Volume of Work

Work assignment methods Work selection methods Granularity and complexity of process

governance


Other Considerations

External participants Process monitoring Collecting analytics data Frequency of process/rule/staff

changes


Designing a Process


Steps in Modeling/Design

Define graphical process flow Define parameters of each step

Human-facingSystem (automated)

Identify process triggers Design user interface


Define Process Flow

Graphical map of process Steps for user or automated tasks Routes between steps Flow control

Split/merge typeMerge conditions


Define Step Parameters

Data fields, including attachments Human-facing steps:

Participant (individual or role)User interface form/tools

System steps:Web service callSubprocess callOther custom action


Identify Process Launch Triggers Manual launch External event trigger Invoked as web service


Designing the User Interface

Work assignment/selection Data display and validation Launch other applications Complex routing rules on exit


Incremental Implementation

Step 1: non-integrated BPM Minimal customization + dashboard Provides process governance and

optimization Step 2: integrate critical data

synchronization interfaces Reduces data entry/errors

Step 3: integrate critical external process interfaces Provides overall process governance


Business Rules and Business Intelligence


Business Rules and BPM

Key to agility in business processesRouting decisionsWork assignmentSet parameters

Changing rules without changing the process

Applying rules consistently in processes and other applications


Business Intelligence and BPM Key to visibility in business processes

Process monitoring and reporting Process analysis and optimization Predictive analytics

May contribute to process agility Trigger processes Automate steps based on prior decisions Suggest decision for human task


BPM + BR + BI

Self-learning decisions within processes:Process statistics captured with BIStatistics analyzed and fed back to

inform business rulesBusiness rules modify process

behavior BR + BI = decision management


Modeling for ROI


Improve Efficiencies

Automate manual work steps Directly integrate data between

systems Provide process monitoring and

control Automate process statistics gathering

and analysis


Cut Out the Middle Man

Provide customer self-service to initiate processes

Provide process visibility to customer


Location, Location, Location

Share redundant processes between business units

Identify steps that can be completed in isolation

Automate escalation and handoffs Allow remote work


ROI: Reduce Costs

Reduce manual tasks Reduce error rates Allow customer self-service Reduce compliance costs Reduce time to implement changes Reduce functional redundancy Allow outsourcing


ROI: Increase Competitive Advantage Reduce time to market Reduce end-to-end cycle time Improve customer service Increase capacity Improve decision-making


Calculating ROI

Baseline the “as-is” process Model and simulate “to-be” process Select relevant ROI metrics Select ROI calculation method Calculate best and worst case

scenarios


Common ROI Pitfalls

Increased capacity does not guarantee increased revenue

Cost reduction may require FTE reductions

Providing self-service does not guarantee that customers will use it

Remote work and outsourcing can have hidden costs


BPM ROI Potential

Increased agility to business changes Optimized operational efficiency Process standards compliance Shortened process cycle times Better information for decision-making Reduced complexity of integrating

people, processes and existing systems


Summary

Analyzing and classifying processes Modeling and designing processes Business rules Business intelligence Return on investment


Questions?

Sandy KemsleyKemsley Design Ltd.www.column2.com

The Art of Process Modeling: Theory and Practice

Economy & Finance

Transcript of The Art of Process Modeling: Theory and Practice