Tema 5Newd

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6.1 Copyright © 2014 Pearson Education, Inc. publishing as Prentice Hall

Business Process

Optimization

Topic 5


LEARNING OBJECTIVES

1. Defining BPM

2. Business drivers of BPM

3. Functional Goals4. BPM Architectures

5. How to achieve BPM

6. Best Practices

7. Pitfalls to avoid



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1.

DEFINING

BPM

Business Process Management (BPM) is a set of methods,

tools, and technologies used to design, enact, analyze,

and control operational business processes.

BPM is a process centric approach for improving

performance that combines information technologies with

process and governance methodologies.

BPM is a collaboration between business people andinformation technologists to foster effective, agile, and

transparent business processes.

Introduction


1. DEFINING BPM

Dimensions of BPM

1. Business: The value dimension

2. Process: The transformation dimension

Process effectiveness

Process transparency

Process agility

3. Management: The enabling dimension



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1.

DEFINING

BPM

BPM Technology

1. Process Modelling and Design

2. Integration

3. Composite Application Frameworks

4. Execution

5. Business Activity Monitoring

6. Control


1. DEFINING BPM

• BPM and CPI: Continuous Process Improvement (CPI)

methodologies like Six Sigma and Lean are naturally part

of BPM.

• BPM is business infrastructure: It promotes quick,

incremental improvements while reaching levels of

process stability and performance quickly.

• BPMS: It is a Suite of BPM technologies, including all the

functional modules, technical capabilities, and supporting

infrastructure



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2.

Business

drivers

of

BPM

• Business Needs: Globalization, Commoditization,

Productivity, Innovation, Speed, Compliance, Information

overload, changing nature of people and work, Customer

first, etc.

• Business drivers promoting the use of BPM: Improving a

process or sub-process, BPM(S) for CPI, BPM for SOA,

Business Transformation

• Value propositions of BPM: Automation, Agility, Flexibility,

Visibility, Collaboration, Governance.


3. Functional Goals

Process Effectiveness

Process Transparency

Process Agility



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3.

Functional

Goals

Process Effectiveness

Optimization

• Real time monitoring

• “What if..” Analysis

Automation Control and Decision making


3. Functional Goals

Process Transparency

WYMIWYR (What You Model Is What You Run)

WYMIWYM (What You Measure Is What You Manage)

BPM is based on MetaData

Metadata is data that describes other data. For example, a web page may

include metadata specifying what language the page is written in, what tools

were used to create it, and where to find more information about the subject; thismetadata can automatically improve the reader's experience.



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3.

Functional

Goals

Process Agility

Communication and Collaboration

Agree on the metrics of business process performance

Share process models and common business semantics

Clearly communicate about the tasks to be performed

Rapid Development“It allows you to sense change when it happens, interpret the

impact of that change, and develop a shared understanding of

how the business should respond.”

“The greatest barrier to change is communication”


4. BPM Architectures

When adopting BPM, think of your enterprise architecture as

consisting of four subarchitectures:

1. Business Architecture

2. Process Architecture

3. Management Architecture

4. Technology Architecture



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4.

BPM

Architectures

1.Business Architecture

“ is the design representation of how an enterprise defines

itself in terms of its role and purpose, and how it defines

the way it creates value. Every enterprise defines its high-

level business goals, and creates an organizational

structure, including a functional decomposition into

operating units, as a basic structure for meeting its goals.

These models have evolved into business architectures

that align people, work, and capital to the processes that

create customer value.”



1.Business Architecture

“ Business Process Management calls on the organization

to adjust its business architecture to directly foster valuecreating business processes.”

BPM asks you to create new roles that cut across

functional stovepipes to support the process-centric

business. Some of these roles are: chief process officer,

process architect, business process owners, process

engineers, process analyst, process performer.



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4.

BPM

Architectures


“A process architecture is the written or diagrammatic

representation of the value chains and business processes

that operate across an enterprise.”

It includes both the core operating processes and enabling

management support processes.




• Being a process owner

The most important of all roles in a process-centric business is the

process owner — the individual who designs and coordinates theassembly and participation of all the functions and work activities at all

levels within a process. The process owner:

• Is a business person.

• Has the authority or ability to make changes in the process.

• Is responsible for the process measurement and feedback systems,

process documentation, and the training of the process performers.

• Is the person ultimately responsible for process improvement.



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4.

BPM

Architectures


A process participant is a member of a global stream of

people, systems, and technology. This is responsible not

only for doing his direct functional jobs but also for

understanding how his role fits in the bigger picture.

The process participant knows precisely how he creates

value. BPM workflows help guide him; real-time monitoringprovides feedback to him; and BPM control systems help

him take action when things are going wrong



3. Management Architecture

The management’s role is to direct the actions and

behaviours of people and systems, as well as the flow of

information over time.

The BPM management architecture includes project

management, process management, and process

improvement.



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4.

BPM

Architectures


The Technology Architecture compliments the business,

process, and management architectures to meet business

needs and goals.

It includes the set of component technologies that combine

to support the functional goals and business drivers.




The major components of the technical architecture include:

The Unified Workspace: User interfaces, monitoring anddashboards, and task inboxes

The Execution Environment: Business rules engine, the

process engine, and the analytics engine

The Simulation Engine

The Process Design Toolbox: Process modeling, rule

definition, KPI definition, process development, and user

interface design



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4.

BPM

Architectures


The Metadata Repository: The “container” for process

asset descriptions, relationships, and policies

Web Service Adapters and New Services Development

Environment: Provides connections to existing

functionality and tools for creation of new services


5. How to achieve BPM

A. We need foundation

• The strategic imperative

• Know your goals

• Follow a process methodology (Six Sigma, Lean…)

• Set up the architectures

• Define measurement systems

B. Preparing for the Bigger Issues (Culture, Risk attitude, IT

environment, Professional development etc.)



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5.

How to achieve BPM

C. Preparing for the Bigger Issues (Culture, Risk attitude, IT

environment, Professional development etc)

D. Taking Your First Steps

• Optimize current operations

• Develop new processes and applications

E. Showing Them the Money (ROI, Benefits for

constituencies. Removing gaps )


6. Best Practices

1. Think process; be process.

2. Get smart!

3. Adopt an executive.

4. Great expectations.5. Pick a methodology.

6. The right technology.

7. Hear the voice of the customer.

8. Pick a project.

9. Measure first.

10.Plan to change.



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7. Pitfalls to avoid

1. Firing too early.

2. Thinking in stovepipes.

3. Making a RIF (Reduce In Force) program.

4. Solving problems once.

5. Not supporting users.

6. Ignoring the end users.

7. Forgetting to celebrate.8. Hard-wiring the framework.

9. Using “gut feel.”

10.Automating failure.

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