Description
what are the various drivers behind BPM, different reasons as proposed by Gartner to start BPM, key benefits of implementing BPM. It also explains the technology and framework behind BPM
Business Process Management
Understanding BPM
BPM: BPM: BPM: BPM: The The The The
concept drivers technology lifecycle
BPM: The Concept
Performance management - What “TRADITION” says
TRADITION NEED OF THE HOUR
Michael Porter and Process Management ? The father of the modern Business Process Management movement is Michael E. Porter of the Harvard Business School ? 1980 Competitive Strategy ? 1985 Competitive Advantage ? 1990 The Competitive Advantage of Nations ? 1996 “What is Strategy?” (HBR,Nov-Dec 1996)
Michael Porter on Competitive Advantage ? Competitive advantage allows a company to dominate its industry for a sustained period of time ? “Ultimately, all differences between companies in cost or price derive from the hundreds of activities required to create, produce, sell, and deliver their products or services such as calling on customers, assembling final products, and training employees… “ ? “Activities, then, are the basic units of competitive advantage.”
Operational Effectiveness and Strategy ? “Operational effectiveness means performing similar activities better than rival perform them.” ? “Few companies have competed successfully on the basis of operational effectiveness over an extended period, and staying ahead of rivals gets harder every day.” ? “Strategic positioning means performing different activities from rivals’ or performing similar activities in different ways.” ? “While operational effectiveness is about achieving excellence in individual activities, or functions, strategy is about combining activities.”
What is BPM?
Business Goals
Business
Process
Management
.. Something that gets revenue, profits
.. a specific ordering of work activities across time and place, with a beginning, an end, and clearly identified inputs and outputs
.. Planning, Scheduling, Tracking, Modifying – real-time as well as off-line
Process Innovation Continuum
Process Re-Design Process Re-Engineering
Time
Cost Degree of Innovation
Process Improvement
? Process Improvement is incremental ? Process Re-Design is end-to-end re-thinking of what we are doing ? Process Re-Engineering is a blank slate approach
The New Industrial Engineering: Davenport and Short ? Highlights the recursive relationship between IT capabilities and business process redesign ? Not only could information technologies support business processes, they could also be used to transform those processes and enable new ones ? Business process and process improvements should be considered in terms of the capabilities IT can provide ? Business activities should be viewed as more than a collection of individual or even functional tasks; they should be broken down into processes that can be designed for maximum effectiveness
Reengineering Work: Hammer ? Use the power of modern IT to radically redesign our business processes in order to achieve dramatic improvements in their performance ? Re-engineering is an all-or-nothing proposition with in uncertain result ? Discontinuous thinking – of recognizing and breaking away from the outdated rules and fundamental assumptions that underlie operations ? View processes from cross-functional perspective
Process Management Approaches
? Total Quality Management
? Business Process Reengineering
? Six Sigma/ Lean
? Process (Oriented/Centric/Based) Management
? Business Process Management Systems
Conceptual Overview
People
-Creating, nurturing & growing Business Relationships -Executing the core tasks to run the business
BPM
Systems
Processes
-Foundation to achieving consistently superior quality deliverables - De-risking from over-dependence on technology & people
- Indispensable means to be able to scale business volume through transaction automation
Business Process Management
Definition
?Business Process Management (BPM) is about designing, executing and optimizing business
processes, that incorporate systems, processes and people, including cross functional business processes.
?BPM is a convergence of a number of existing technologies and approaches into a platform
that manages the lifecycle of a process from definition, deployment, execution, measurement, change and re-deployment. separated from the underlying applications, their connections and data. and rules to mirror the current implicit application and services layer. have viewed hardware and software assets in the last two decades
?BPM promotes a process centric view of IT where the management of end-to-end processes is ?BPM involves creation of an explicit and independent process layer containing flow, services ?BPM promotes an approach of treating processes as assets in the same way organizations ?BPM is a change management and system implementation methodology to aid the continuous
What is BPM
comprehension and management of business processes that interact with people and systems, both within and across organizations.
What is not BPM
?BPM is not just about automating existing processes better, it provides an effective
environment for continuously improving the processes themselves.
?BPM is not process reengineering in the traditional sense.
A little bit of history • First Wave….
Policy Manuals, QA manuals..
• Second Wave….
Process Automation via Application development..
• Third Wave….
• Business Process Management
The BPM Story . . .
Enablers
?
BPM Adoption
? ? ?
Business process reengineering Process modeling BPM introduced in integration suites
Enablers
?
Integration suites extended to support workflow BPM suites
?
?
CASE tools Document-centric workflow
? ? ?
Enablers
?
?
?
Speed Regulations Precedents 2010
Drivers
Agility Process optimization Dynamic and goaldirected processes
Drivers
1995
Source Gartner 2005
Time
2005
Outcome of BPM
The ideal BPM solution:
? Blurs organizational boundaries ? Incorporates both machine-based and human-based processes ? Connects to any system associated with the business process ? Facilitates the electronic availability of supporting business content ? Supports compliance initiatives; and ? Monitors process status and effectiveness to facilitate continuous improvement
A complete BPM solution addresses workflow management, content and records management, enterprise application integration, and business activity monitoring
Benefits
? Lower operational costs
? Faster cycle time
? Compliance and auditability ? Global consistency and control ? IT investment protection ? Responsiveness to changing demands ? End-to-end performance visibility
BPM: The Drivers
Drivers for BPM Are Numerous
? New process creation/maintenance ? Current process understanding ? Mergers and acquisitions ? Time to Market ? Business process outsourcing
? Package implementations
? Core process/systems consolidations ? Automation of manual processes ? Value/supply chain creation/maintenance and process fusion ? Optimized processes ? Compliance ? Scenario building for agility and policy management
External Drivers
Changing Regulation and Legislation
Mergers and Acquisition
Environmental Drivers
Increasing Market Transparency Customer Demands
Technological Impact
Internal Drivers
Handling Increased Process Complexity
Process Flexibility/ Organization al Agility
Increase Productivity
Internal Business Drivers
Reduce Duplication of Effort/ Inefficiency
Increas e Revenu e
Coordinate Process across Business Function
Reduce Cost
11 Relevant Reasons to Start BPM
1. Optimization
? Build Better New Processes Faster
7. Automation
? Get Idiot Work Away From People Through the Automation of Manual Processes
2. Understanding
? Know What You’re Doing (Right or Wrong) Through Current Process Understanding
8. Coordination
? Value/Supply Chain Creation/Maintenance and Other Process Fusion
3. Continuity
? Avoid Friction During Mergers and Acquisitions
9. Efficiency
? Do Things Better With Optimized Processes
4. Outsourcing
? Get Someone Else to Do the Dull Stuff With Business Process Outsourcing
10. Compliance
? Stay Out of Trouble by Staying Ahead of Compliance
5. Implementation
? Buy Software and Implement Packages Better
11. Innovation
? Move Faster Through Scenario Building for Agility and Policy Management
6. Control
? Get Control of Parallel Processes by Consolidating to Core Processes
Benefits of Implementing BPMS
1) KPI analysis & continuous improvement
??? ?? ? ?? ?? ?? ?? ?? ?? Requirement Analysis ???? ??? ? ??(UML,ARIS) Requirement Spec. ?? KPI ???? ???? ??? ?? ??? Spec. Workflow ??? ? ?? Data ?? ??? ?? ???? Add-on ????? Customize (BPM Tool) ?? ?? ? ?? ??? ?? ??? Spec. ??? ?? ? ?? ?? ?? ?? ?? ?? Requirement Analysis ???? ??? ? ??(UML,ARIS) Requirement Spec. ?? KPI
As-is
Workflow ?? ?? data
???? ????
????
Workflow ??? ? ?? Data ?? ??? ?? ????
To-be
Workflow ?? ?? data
Add-on ????? Customize (BPM Tool) ?? ?? ? ??
KPI analysis
????
Alternative evaluation
Document-based BPR Interview survey Reporting Suggest
Process Archive
Act1 Act1 Act1 Act2 Act2 Act2 Act3 Act3 Act3
BPMS
Process mining
Act4 Act4 Act4
2) Personal secretary managing schedules & to-do lists
Diary
Notify/remind work items Order Record
?? ?? ????? ??? ?? ????? ?? ?? ?? ????? ??? ?? ????? ??
Access
Search
Worklist
Worklist
BPMS
Benefits of Implementing BPMS
3) Load/schedule monitoring & visualization (present transparency)
consult discuss Report Gap Too late
BPMS
Search
Load/schedule monitoring
Act1
Act2
Act3
Act4
Completed tasks
Pending/overdue tasks
4) Know-how accumulation and deliverable reuse (past transparency)
??
Deliverables Archive Private Know-how Sharing
Access
Reuse
BPMS Process Archive
Ad hoc processing
Act1 Act1 Act1 Automatic accumulation Act2 Act2 Act2 Act3 Act3 Act3 Act4 Act4 Act4
Deliverable DB
Benefits of Implementing BPMS
? Summary of BPMS benefits
Fault-tolerant execution Personal secretary Process transparency Knowledge accumulation Proactive management Process improvement
Transparent
BPMS
Responsive Agile
Makes an enterprise competitive by using up-to-date information to progressively remove delays to the management and execution of its critical business processes” in order to minimize response times with optimal response quality
When To Go For BPM
Source: Adapted from Gartner Research
BPM: The Technology
Roads vs. Rails Coded applications like railroads are limited
Like roads, BPM applications go farther, cost less, and change faster
BPM will provide the architecture for the next generation of enterprise applications
BPM Framework
Process Modeling and Analysis Real-time Monitoring and Management
Business Process Workflows
Invoke Invoke Invoke Invoke Invoke
Enterprise Services – Business Functions
Routing Pub/Sub Transformation Transport Mediation
What is a typical BPM Solution?
Business Process Modeling
Business Process Automation Design Compose Customize Integrate Deploy
Business Process Improvement Analyze Monitor Control Improve
Model Simulate Store Search Retrieve
Model business processes
Design critical business processes Simulate business processes Participate in Compose apps into processesprocess executions
Monitor process executions Deploy processes as Internet apps Analyze process impact; Improve Control the execution of processes
BPM: The Lifecycle
BPM Lifecycle
Monitor & Control Optimize Deploy & Execute
Model Design & Implement Simulate
Discover
Process Lifecycle
Model & Simulate
Business Process Analysis
? Typical users - Business Analysts ? Process discovery ? High level modeling of tasks to be performed and resources required ? As-IS, Gap Analysis, To-Be analysis ? Run simulations with hypothetical scenarios to identify critical paths and bottlenecks ? Includes discovery, design & modeling of rules associated ? Define Performance Measures and KPI’s
Deploy & Execute Monitor & Control
Optimiz e
Model Design & Implement
Simulat e
Business Process Analysis
Process Lifecycle
Implement & Deploy
Business Process Execution
? Typical users - IT analysts, developers ? Convert from high level model to executable process
? ? ? ? For e.g. Export BPMN to BPEL Add implementation details Deploy to BPEL engine for execution
Deploy & Execute Monitor & Control
Optimiz e
Model Design & Implement
Simulat e
Business Process Execution
Business Rules Engine
? Maintenance of Rules Repository ? Abstract Rules from applications ? Execute Rules
Process Lifecycle
Implement & Deploy (contd ..)
Steps involved in converting BPEL/XML generated to an executable process: ? Message type definition
Deploy & Execute Monitor & Control
Optimiz e
Model Design & Implement
Simulat e
? Specify Web service endpoints
? Specify Adapters parameters ? Create Transformation maps ? Fill Human workflow details
Business Process Execution
? Add Fault handlers etc.
? Add sensors for BAM monitoring
Process Lifecycle
Monitor and Optimize
Business Activity Monitoring
? Typical users – Business analysts, IT analysts ? Process Monitoring through BAM console ? BAM for business events
? Correlate and aggregate events from various sources
? Define and monitor Key Performance Indicators ? Real time visualization and alerts
Deploy & Execute Monitor & Control
Optimiz e
Model Design & Implement
Simulat e
Business Activity Monitoring
? Use metrics and KPIs from BAM for simulation
? Process Analysis for real time process optimization
Components of BPM Solution ….. A Complete BPM Solution ….
1. Business Process Modeling Tool
2. Business Activity Monitoring Tool 3. Business Rules Management System 4. Reporting Tools 5. Portal Server 6. Imaging Tool 7. Document Management System
Thank You
doc_366673508.pptx
what are the various drivers behind BPM, different reasons as proposed by Gartner to start BPM, key benefits of implementing BPM. It also explains the technology and framework behind BPM
Business Process Management
Understanding BPM
BPM: BPM: BPM: BPM: The The The The
concept drivers technology lifecycle
BPM: The Concept
Performance management - What “TRADITION” says
TRADITION NEED OF THE HOUR
Michael Porter and Process Management ? The father of the modern Business Process Management movement is Michael E. Porter of the Harvard Business School ? 1980 Competitive Strategy ? 1985 Competitive Advantage ? 1990 The Competitive Advantage of Nations ? 1996 “What is Strategy?” (HBR,Nov-Dec 1996)
Michael Porter on Competitive Advantage ? Competitive advantage allows a company to dominate its industry for a sustained period of time ? “Ultimately, all differences between companies in cost or price derive from the hundreds of activities required to create, produce, sell, and deliver their products or services such as calling on customers, assembling final products, and training employees… “ ? “Activities, then, are the basic units of competitive advantage.”
Operational Effectiveness and Strategy ? “Operational effectiveness means performing similar activities better than rival perform them.” ? “Few companies have competed successfully on the basis of operational effectiveness over an extended period, and staying ahead of rivals gets harder every day.” ? “Strategic positioning means performing different activities from rivals’ or performing similar activities in different ways.” ? “While operational effectiveness is about achieving excellence in individual activities, or functions, strategy is about combining activities.”
What is BPM?
Business Goals
Business
Process
Management
.. Something that gets revenue, profits
.. a specific ordering of work activities across time and place, with a beginning, an end, and clearly identified inputs and outputs
.. Planning, Scheduling, Tracking, Modifying – real-time as well as off-line
Process Innovation Continuum
Process Re-Design Process Re-Engineering
Time
Cost Degree of Innovation
Process Improvement
? Process Improvement is incremental ? Process Re-Design is end-to-end re-thinking of what we are doing ? Process Re-Engineering is a blank slate approach
The New Industrial Engineering: Davenport and Short ? Highlights the recursive relationship between IT capabilities and business process redesign ? Not only could information technologies support business processes, they could also be used to transform those processes and enable new ones ? Business process and process improvements should be considered in terms of the capabilities IT can provide ? Business activities should be viewed as more than a collection of individual or even functional tasks; they should be broken down into processes that can be designed for maximum effectiveness
Reengineering Work: Hammer ? Use the power of modern IT to radically redesign our business processes in order to achieve dramatic improvements in their performance ? Re-engineering is an all-or-nothing proposition with in uncertain result ? Discontinuous thinking – of recognizing and breaking away from the outdated rules and fundamental assumptions that underlie operations ? View processes from cross-functional perspective
Process Management Approaches
? Total Quality Management
? Business Process Reengineering
? Six Sigma/ Lean
? Process (Oriented/Centric/Based) Management
? Business Process Management Systems
Conceptual Overview
People
-Creating, nurturing & growing Business Relationships -Executing the core tasks to run the business
BPM
Systems
Processes
-Foundation to achieving consistently superior quality deliverables - De-risking from over-dependence on technology & people
- Indispensable means to be able to scale business volume through transaction automation
Business Process Management
Definition
?Business Process Management (BPM) is about designing, executing and optimizing business
processes, that incorporate systems, processes and people, including cross functional business processes.
?BPM is a convergence of a number of existing technologies and approaches into a platform
that manages the lifecycle of a process from definition, deployment, execution, measurement, change and re-deployment. separated from the underlying applications, their connections and data. and rules to mirror the current implicit application and services layer. have viewed hardware and software assets in the last two decades
?BPM promotes a process centric view of IT where the management of end-to-end processes is ?BPM involves creation of an explicit and independent process layer containing flow, services ?BPM promotes an approach of treating processes as assets in the same way organizations ?BPM is a change management and system implementation methodology to aid the continuous
What is BPM
comprehension and management of business processes that interact with people and systems, both within and across organizations.
What is not BPM
?BPM is not just about automating existing processes better, it provides an effective
environment for continuously improving the processes themselves.
?BPM is not process reengineering in the traditional sense.
A little bit of history • First Wave….
Policy Manuals, QA manuals..
• Second Wave….
Process Automation via Application development..
• Third Wave….
• Business Process Management
The BPM Story . . .
Enablers
?
BPM Adoption
? ? ?
Business process reengineering Process modeling BPM introduced in integration suites
Enablers
?
Integration suites extended to support workflow BPM suites
?
?
CASE tools Document-centric workflow
? ? ?
Enablers
?
?
?
Speed Regulations Precedents 2010
Drivers
Agility Process optimization Dynamic and goaldirected processes
Drivers
1995
Source Gartner 2005
Time
2005
Outcome of BPM
The ideal BPM solution:
? Blurs organizational boundaries ? Incorporates both machine-based and human-based processes ? Connects to any system associated with the business process ? Facilitates the electronic availability of supporting business content ? Supports compliance initiatives; and ? Monitors process status and effectiveness to facilitate continuous improvement
A complete BPM solution addresses workflow management, content and records management, enterprise application integration, and business activity monitoring
Benefits
? Lower operational costs
? Faster cycle time
? Compliance and auditability ? Global consistency and control ? IT investment protection ? Responsiveness to changing demands ? End-to-end performance visibility
BPM: The Drivers
Drivers for BPM Are Numerous
? New process creation/maintenance ? Current process understanding ? Mergers and acquisitions ? Time to Market ? Business process outsourcing
? Package implementations
? Core process/systems consolidations ? Automation of manual processes ? Value/supply chain creation/maintenance and process fusion ? Optimized processes ? Compliance ? Scenario building for agility and policy management
External Drivers
Changing Regulation and Legislation
Mergers and Acquisition
Environmental Drivers
Increasing Market Transparency Customer Demands
Technological Impact
Internal Drivers
Handling Increased Process Complexity
Process Flexibility/ Organization al Agility
Increase Productivity
Internal Business Drivers
Reduce Duplication of Effort/ Inefficiency
Increas e Revenu e
Coordinate Process across Business Function
Reduce Cost
11 Relevant Reasons to Start BPM
1. Optimization
? Build Better New Processes Faster
7. Automation
? Get Idiot Work Away From People Through the Automation of Manual Processes
2. Understanding
? Know What You’re Doing (Right or Wrong) Through Current Process Understanding
8. Coordination
? Value/Supply Chain Creation/Maintenance and Other Process Fusion
3. Continuity
? Avoid Friction During Mergers and Acquisitions
9. Efficiency
? Do Things Better With Optimized Processes
4. Outsourcing
? Get Someone Else to Do the Dull Stuff With Business Process Outsourcing
10. Compliance
? Stay Out of Trouble by Staying Ahead of Compliance
5. Implementation
? Buy Software and Implement Packages Better
11. Innovation
? Move Faster Through Scenario Building for Agility and Policy Management
6. Control
? Get Control of Parallel Processes by Consolidating to Core Processes
Benefits of Implementing BPMS
1) KPI analysis & continuous improvement
??? ?? ? ?? ?? ?? ?? ?? ?? Requirement Analysis ???? ??? ? ??(UML,ARIS) Requirement Spec. ?? KPI ???? ???? ??? ?? ??? Spec. Workflow ??? ? ?? Data ?? ??? ?? ???? Add-on ????? Customize (BPM Tool) ?? ?? ? ?? ??? ?? ??? Spec. ??? ?? ? ?? ?? ?? ?? ?? ?? Requirement Analysis ???? ??? ? ??(UML,ARIS) Requirement Spec. ?? KPI
As-is
Workflow ?? ?? data
???? ????
????
Workflow ??? ? ?? Data ?? ??? ?? ????
To-be
Workflow ?? ?? data
Add-on ????? Customize (BPM Tool) ?? ?? ? ??
KPI analysis
????
Alternative evaluation
Document-based BPR Interview survey Reporting Suggest
Process Archive
Act1 Act1 Act1 Act2 Act2 Act2 Act3 Act3 Act3
BPMS
Process mining
Act4 Act4 Act4
2) Personal secretary managing schedules & to-do lists
Diary
Notify/remind work items Order Record
?? ?? ????? ??? ?? ????? ?? ?? ?? ????? ??? ?? ????? ??
Access
Search
Worklist
Worklist
BPMS
Benefits of Implementing BPMS
3) Load/schedule monitoring & visualization (present transparency)
consult discuss Report Gap Too late
BPMS
Search
Load/schedule monitoring
Act1
Act2
Act3
Act4
Completed tasks
Pending/overdue tasks
4) Know-how accumulation and deliverable reuse (past transparency)
??
Deliverables Archive Private Know-how Sharing
Access
Reuse
BPMS Process Archive
Ad hoc processing
Act1 Act1 Act1 Automatic accumulation Act2 Act2 Act2 Act3 Act3 Act3 Act4 Act4 Act4
Deliverable DB
Benefits of Implementing BPMS
? Summary of BPMS benefits
Fault-tolerant execution Personal secretary Process transparency Knowledge accumulation Proactive management Process improvement
Transparent
BPMS
Responsive Agile
Makes an enterprise competitive by using up-to-date information to progressively remove delays to the management and execution of its critical business processes” in order to minimize response times with optimal response quality
When To Go For BPM
Source: Adapted from Gartner Research
BPM: The Technology
Roads vs. Rails Coded applications like railroads are limited
Like roads, BPM applications go farther, cost less, and change faster
BPM will provide the architecture for the next generation of enterprise applications
BPM Framework
Process Modeling and Analysis Real-time Monitoring and Management
Business Process Workflows
Invoke Invoke Invoke Invoke Invoke
Enterprise Services – Business Functions
Routing Pub/Sub Transformation Transport Mediation
What is a typical BPM Solution?
Business Process Modeling
Business Process Automation Design Compose Customize Integrate Deploy
Business Process Improvement Analyze Monitor Control Improve
Model Simulate Store Search Retrieve
Model business processes
Design critical business processes Simulate business processes Participate in Compose apps into processesprocess executions
Monitor process executions Deploy processes as Internet apps Analyze process impact; Improve Control the execution of processes
BPM: The Lifecycle
BPM Lifecycle
Monitor & Control Optimize Deploy & Execute
Model Design & Implement Simulate
Discover
Process Lifecycle
Model & Simulate
Business Process Analysis
? Typical users - Business Analysts ? Process discovery ? High level modeling of tasks to be performed and resources required ? As-IS, Gap Analysis, To-Be analysis ? Run simulations with hypothetical scenarios to identify critical paths and bottlenecks ? Includes discovery, design & modeling of rules associated ? Define Performance Measures and KPI’s
Deploy & Execute Monitor & Control
Optimiz e
Model Design & Implement
Simulat e
Business Process Analysis
Process Lifecycle
Implement & Deploy
Business Process Execution
? Typical users - IT analysts, developers ? Convert from high level model to executable process
? ? ? ? For e.g. Export BPMN to BPEL Add implementation details Deploy to BPEL engine for execution
Deploy & Execute Monitor & Control
Optimiz e
Model Design & Implement
Simulat e
Business Process Execution
Business Rules Engine
? Maintenance of Rules Repository ? Abstract Rules from applications ? Execute Rules
Process Lifecycle
Implement & Deploy (contd ..)
Steps involved in converting BPEL/XML generated to an executable process: ? Message type definition
Deploy & Execute Monitor & Control
Optimiz e
Model Design & Implement
Simulat e
? Specify Web service endpoints
? Specify Adapters parameters ? Create Transformation maps ? Fill Human workflow details
Business Process Execution
? Add Fault handlers etc.
? Add sensors for BAM monitoring
Process Lifecycle
Monitor and Optimize
Business Activity Monitoring
? Typical users – Business analysts, IT analysts ? Process Monitoring through BAM console ? BAM for business events
? Correlate and aggregate events from various sources
? Define and monitor Key Performance Indicators ? Real time visualization and alerts
Deploy & Execute Monitor & Control
Optimiz e
Model Design & Implement
Simulat e
Business Activity Monitoring
? Use metrics and KPIs from BAM for simulation
? Process Analysis for real time process optimization
Components of BPM Solution ….. A Complete BPM Solution ….
1. Business Process Modeling Tool
2. Business Activity Monitoring Tool 3. Business Rules Management System 4. Reporting Tools 5. Portal Server 6. Imaging Tool 7. Document Management System
Thank You
doc_366673508.pptx