What is BPM?

BPM Defined
Business Process Management is a means to study, identify, change, and monitor business processes.
Business Process Management is a generic term, that encompasses the techniques, structured methods, and means to streamline operations and increase efficiency. BPM techniques and methods enable you to identify and modify existing processes to align them with a desired (improved) future state.
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BPM is not
The automation of manual tasks Re-engineering the Enterprise Change Management Six Sigma A management methodology Workflow or BPM technology

But the techniques and tools can be used to support any of theseif you want them to!
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Principles of BPM:
Organise around outcomes not tasks Correct and improve processes before (potentially) automating them Establish processes and assign ownership Standardise processes across the enterprise Enable continuous change Improve existing processes, rather than build radically new or perfect processes
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Typical Business Drivers

Perceived or Expected Benefits:
Reduce staff and office overhead numbers Process business critical activities faster Reduce the number of errors and exceptions Reduce overall IT costs Reduce duplications Increase visibility into operational efficiencies and bottlenecks Reduce business risks Improve customer service and retention

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The Mandate
BPM changes things. You need the authority, the will, and the ability to change things; this means aligning any project with enterprise goals And You need the support of those whose daily work and activities you will change, as well as the support of the management that owns the overall process

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BPM & Ethics

BPM changes things.
Our projects will commonly impact the day to day work activities of individuals and groups
Often reducing human involvement in a process

Our projects will typically utilize confidential and secure data Our projects will commonly have an impact on the enterprise as a whole (increased profit/efficiency)

As such every BPM project needs to consider and be aware of the ethical issues that will occur on a daily basis Process consultants often face difficult or conflicting ethical situations
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Business Analysis
No business process improvement or change activity can be undertaken without the use of business analysts and/or business analysis techniques You must never attempt to change a business process without first analyzing the business impact of the change in detail Most people think they understand the techniques of analysis (e.g., requirements gathering), but few actually do Most projects failures do not stem from technology
Rather, a lack of insight, stakeholder support or planning -- all things that are the focus of business analysts!
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Methods
In analysis work - consistency of methods of collection and delivery are essential There are many different types of methods The use of any method is typically much more effective than none - or a loose hybrid This presentation introduces you to three potential approaches for both business and technology process analysis
Business Process Analysis Structured Analysis Object-oriented Analysis
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1. Business Process Analysis

Most common starting point is when something is not right in the organisation
A meta problem: there are duplicative processes and information across departments A business problem: exception rate is too high A micro problem: some user interface screens are confusing

Business Analyst needs to

evaluate the situation from various angles and identify core issues review any documentation, interview workers flowchart/document current process recommend improvements

When to use: When you have already clearly identified a specific process or process for improvements
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2.Object-Oriented Analysis
Centered around understanding of Objects and Classes
Class - A class describes the characteristics of a thing (attributes, behaviors, properties, etc.) Object - An instance of a class

modeling techniques linked to UML (Unified modeling Language) and software engineering Analysis focuses on use cases Makes use of Sequence Diagrams, Class Models, and Activity Diagrams When to use: When you wish to improve a specific business applications performance and usability

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3. Structured Analysis
Views a System as a collection of processes executed according to certain logic (or illogic!) Focuses on data flows Models Data and Processes separately Makes use of Data Flow Diagrams, Relationship Diagrams, and Flowcharts When to use: When you wish to improve your existing IT investment infrastructure and gain greater process efficiencies in the enterprise

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Flowcharts Defined
What is a flowchart?
A graphical representation of the sequence of activities, steps, and decision points that occur in a particular, discrete process.

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Flowchart Example

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Why Flowchart?
To explain the sequence of a process graphically To improve communication and obtain business-user validation To identify bottlenecks and loops To assist with problem analysis To provide a blueprint for development To identify variations in process activity

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Charting vs. Modeling

Flowcharting creates a graphical representation of the sequence and key elements of a business process
Process modeling extends this by
Mapping dependencies and related flows Adding data intelligence to the steps Enabling simulation of flows to check for efficiencies and bottlenecks Enabling reuse of mapped chart elements Supporting future monitoring of improved processes

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Advantages of Modeling
There are seldom single process flows - processes tend to have interdependencies
These are difficult to capture in a regular flowchart Multiple processes and systems are the hallmark of most BPM projects

The granular level of detail in a model supports eventual automation analysis Cross-dependent processes can be acknowledged and inter-related The needs of different stakeholders can be managed holistically (from business to technical) Models can potentially become managed objects in a ECM/BPM repository with version and access controls
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Modeling Tool Options

End User Focus

Drawing Tools BPMS EA modeling

Infrastructure Focus

Development Tools

System to System focus

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Human to Human focus

Examples of Vendors
End User Focus

Microsoft Visio Apple iGrafx IBM

Lombardi IDS Scheer

MEGA AllFusion
Infrastructure Focus

Rational

System to System focus

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Human to Human focus

Model to Execution
Execution means implementing the model in an ECM or BPM system
The promise of powerful modeling tools is to create a process model, then to automate its execution

The reality is far more complex tools for moving from modeling to execution are evolving slowly
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Standards and Protocols

BPMN
(Business Process Modeling Notation) XPDL (XML Process Definition Language)

BPEL (Business Process Execution Language)

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BPMN
BPMN consists of four basic elements:

BPMN (Business Process Modeling Notation)

Flow Objects Event Activity Gateway Connecting Objects Sequence Flow Message Flow Association Swimlanes Pool Lane Artifacts Data Object Group Annotation
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Reality of BPMN
BPMN has been designed to be understood by business analysts to technical developers BPMN is a good standard - but it does not always translate to BPEL (execution) - interim work will likely be required All standards are open to interpretation - business analysts address different issues to technical developers

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Technology
Maybe none at all (often) In the context of this course: BPM Workflow ECM (Enterprise Content Management) ERP (Enterprise Resource Planning) / Business Applications

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Contemporary BPMS Architecture

Design & Simulation Services Rules Engine Orchestration (Workflow) Engine Process Registry

Monitoring Services

Content / Data Repositories

Integration Services

Note: Not all tools provide all these services or implement them in the same way
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Design & Simulation

Tools to capture and design business process models Designed to be used in the first instance by business analysts Good design tools enable primary flowcharting, and secondary detailed modeling activities Advanced UIs also allow for processes to be simulated so that existing and proposed process enhancements can be tested and modified in advance of go-live
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Analysis and Activity Monitoring

Sometimes called Business Activity Monitoring, or BAM Data is created whilst executing a business process The data can be analyzed and displayed via dashboards or reports Processes need to be monitored!
Who has what Where it is When they got it

Identifies bottlenecks and areas of weak or no activity Provides reporting Enables process analysis
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Process Registry
Contains the process models and rules Also contains metadata about processes Supports re-use of process components Web Services (SOA) compatible approach
Traditional challenges of component re-use apply Granularity and componentisation Management complexity Governance

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Orchestration (Workflow) Engine

Core component for BPM Sometimes called Process Engine or Process Server Parses and implements rules governing transitions between tasks Updates the state of each process instance Offers or delivers tasks as needed to workers or applications to do the work Provides reporting and alerts on demand

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Integration
BPM application will seldom access just one source of information Hence the need to link the Orchestration Engine with other sources of data and services The process definition needs to be comprehensive enough to understand and address the application Invocation can be either push or pull May require variety of integration techniques: EAI ESB BPM to BPM Brute force
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Rules Engine
Business rules describe the policies and practices of an organisation. For example a business rule might state that no credit check is to be performed on return customers Rules engines: Driven by defined rules, rather than processes Separates business rules from application code Evaluate the information provided by the process and control changes in complex flows
Business processes often have complex flow controls.

Allow the separation of rules from business processes

This composite approach provides more flexibility and is more adaptable to change
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Content Repository
ECM repository containing mainly unstructured data (documents and files) Manages information created in the business process Manages information used by the business process Manages metadata that may drive business processes
E.g., content of a certain document type prior to a particular date is processed differently than other document types
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Relationship Between BPM & ECM

Both BPM and ECM:
Have notions of workflow
Involve business processes Involve use of resources Involve tasks

Work on the basis of the right information, to the right person, at the right time Have a reputation for being expensive

ECM almost always involves processes

But not all BPM deals with ECM (unstructured content)
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For more information AIIM BPM Certificate Program

BPM Strategy BPM as a Practice BPM as a Project BPM Master

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What Is BPM

Role of ECM & BPM

Business Case

Strategy

BPM as a Practice

BPM as a Project

Business Analysis Process Modelling BPM Tools Overview

Process Improvement

Specialist
Flowcharting 101
Planning the Project

BPM Approaches

BPM Technologies Collaboration And BPM

Improvement Methodologies

Build Business Case

Build Project Team

Intro to EAI

Monitor Processes

Continuous Improvement

Gather Requirements

Practitioner

Manage Change

Implement Change

Design Processes

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Enterprise BPM

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BPM Futures

Master

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