Business Process Management

Lecture 1
Introduction to Business Process
Management

Source: M. Dumas, M. La Rosa, J. Mendling and H. Reijers, Fundamentals of Business Process Management, 2nd edition, Springer, 2018 1
About this course
Course Summary
• This course introduces the fundamentals of business process management (BPM)
by working through each phase of the BPM lifecycle.
• You’ll learn mainstream techniques and tools (BPMN on Open Source Tool
Signavio) for process identification, discovery, analysis, improvement, automation
and monitoring. You’ll also see how to apply these techniques and tools to a range
of examples and case studies that show the power of BPM in practice.

Learning outcomes
• By the end of this course you should be able to:
• Identify business processes within an organization, study their boundaries and interrelations, and
prioritize their management using different criteria
• Document business processes at different levels of detail using contemporary business process
modeling techniques
• Apply qualitative and quantitative techniques to analyse the performance of business processes and
to assess the impact of business process changes
• Identify and analyse business improvement opportunities based on business process models
• Use IT effectively to build process automation solutions that realise the benefits of process
improvement
• Apply the knowledge and skills acquired holistically on a small real-life business problem
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Structure of the course
• Lectures Sessions covering:
• Principles of BPM
• Process Identification & Discovery
• Process Modeling Using BPMN
• Process Analysis (Qualitative and Quantitative)
• Process Engineering, Reengineering, Automation
• Practice Exercises
• Intro to Process Modeling
• Process Identification, Analysis & Re-design
• Group Project - A BPR Project

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 Grading Criteria
• Quiz - 15 Marks
• Mid Term Exam - 20 Marks

• A Business Process Reengineering Group Project

- 25 Marks
• Case Study / Report - 10 Marks
• Presentation - 5 Marks
• VIVA - 10 Marks

• Final Exam : - 40 Marks

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 Readings and Resources
• Presentations, case studies and reference material as shared
in Google Classroom from time to time

• Books Recommended
• Fundamentals of Business Process Management, Dumas
M, La Rosa M, Mendling J,
• Reengineering the Corporation, Michael Hammer and
James Champy
• Business Process Management, Roger T Burlton
• OCEB Certification Guide - BPM Fundamental Level

• Related Professional Bodies / References

• www.bpminstitute.org
• www.omg.org
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What is a Business Process?

6
 Issue Packag
deliver e
y Issue
Load produc
receipt invoic
truck ts
e

Prepar
e Sched Sched
shipm ule Check
ule
ent payme &
deliver
nt confir
y
Unloa m
d PO
truck Notify
shipm
Obtain
ent
PO
Match confir
Reque incomi m.
Check
st ng
Invoic
PO payme
e
chang nt
e
Source: M. Dumas, M. La Rosa, J. Mendling and H. Reijers, Fundamentals of Business Process Management, 2nd edition, Springer, 2018. 7
 Load Serve
dish- meal
washe
r
Bring
menu
Collect Take
payme order
Collect Unloa
laundr nt d
Brush y dish-
grills
Collect washe
laundr r
Clean
kitche y
n Greet
Sweep surfac &
Presen
& mop es seat
t
bill

Source: M. Dumas, M. La Rosa, J. Mendling and H. Reijers, Fundamentals of Business Process Management, 2nd edition, Springer, 2018
8
 Business processes

Assets & Organisation

Partners
Function A Function B Function C
Financial

Human
Business Process
Resources
Business Process Customers
Technology
Business Process
Materials

Source: M. Dumas, M. La Rosa, J. Mendling and H. Reijers, Fundamentals of Business Process Management, 2nd edition, Springer, 2018
9
 Sales Out Bound Logistics Account Receivable
Check Pay
Packag
PO & Notify Issue Match men
e Load
recei confir shipm invoic payme t
produc truck
ved m ent e nt mad
ts
PO e

Obtain Sched Issue Sched Goo

PO Unloa Check
PO ule deliver ule ds
issue d invoic
confir deliver y payme arriv
d truck e
m. y receipt nt ed

Purchase In Bound Logistics Account Payable

Source: M. Dumas, M. La Rosa, J. Mendling and H. Reijers, Fundamentals of Business Process Management, 2nd edition, Springer, 2018
10
Cust
Cust
ome Greet Presen Issue
Take Bring Serve ome
r & t invoic
order menu meal r
arriv seat bill e
paid
ed

Clean Unloa Kitch

Kitch Load
kitche Collect d en
en dish- Brush Sweep
n laundr dish- is
is washe grills & mop
surfac y washe clea
dirty r
es r n

Source: M. Dumas, M. La Rosa, J. Mendling and H. Reijers, Fundamentals of Business Process Management, 2nd edition, Springer, 2018
11
A business process is…
a chain of events, activities and decisions
...involving a number of actors and objects,
….triggered by a need
and leading to an outcome that is of value to a customer.

Examples:
• Order-to-Cash
• Procure-to-Pay (aka Purchase-to-Pay)
• Application-to-Approval
• Fault-to-Resolution

Source: M. Dumas, M. La Rosa, J. Mendling and H. Reijers, Fundamentals of Business Process Management, 2nd edition, Springer, 2018
12
 Your turn

• Think of any organization and a process in that organization:

• Is it order-to-cash, procure-to-pay, fault-to-resolution…

• Who is/are the customer(s)?
• What value does this process deliver to its customer?
• Who are the key actors of the process?
• List at least 3 outcomes of the process.

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 “My washing machine doesn’t work…”
Negativeoutcomes
Positive outcomes(value-creating):
(value-reducing):
not repaired
• Fault repaired withinminor
a timely manner
intervention
repaired but
• Fault repaired, customer
covered pays more than expected
by warranty

Insurance
Call Centre Company
Technician

Customer Customer
Parts
Service Store
Dispatch
Centre

VALUE
fault-to-resolution process
Source: M. Dumas, M. La Rosa, J. Mendling and H. Reijers, Fundamentals of Business Process Management, 2nd edition, Springer, 2018
14
Processes and Outcomes
• Every process leads to one or several outcomes, positive or
negative
• Positive outcomes deliver value
• Negative outcomes reduce value

• Fault-to-resolution process
• Fault repaired without technician intervention
• Fault repaired with minor technician intervention
• Fault repaired and fully covered by warranty
• Fault repaired and partly covered by warranty
• Fault repaired but not covered by warranty
• Fault not repaired (customer withdrew request)

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 What is Business
Process Management?

And why should I care

about it?

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Process performance

If you had to choose between two services, you would

typically choose the one that is:

• F…
• C…
• B…

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Process performance

If you had to choose between two services, you would

typically choose the one that is:

• Faster
• Cheaper
• Better

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Process performance

Three dimensions of process performance

• Time
• Cost
• Quality

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Improving process performance

Cust
Cust
ome Greet Presen Issue
Take Bring Serve ome
r & t invoic
order menu meal r
arriv seat bill e
paid
ed

Source: M. Dumas, M. La Rosa, J. Mendling and H. Reijers, Fundamentals of Business Process Management, 2nd edition, Springer, 2018
20
 How would you improve this process?
Outsource to Customer Standardize
Eliminate Cooking

Automate

Invest and Build

Re-sequence

Eliminate Waiters

Source: M. Dumas, M. La Rosa, J. Mendling and H. Reijers, Fundamentals of Business Process Management, 2nd edition, Springer, 2018
21
Business Process Management (BPM)
Body of principles, methods and tools to design, analyze,
execute and monitor business processes, with the aim of
improving their performance.

Source: M. Dumas, M. La Rosa, J. Mendling and H. Reijers, Fundamentals of Business Process Management, 2nd edition, Springer, 2018
22
Why BPM?

“The first rule of any technology used in a business

is that automation applied to an efficient operation
will magnify the efficiency.

The second is that automation applied to an

inefficient operation will magnify the inefficiency.”
Bill Gates
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In other words…

Information Yields
Technology Business
Value

Enables
Yields
Process
Change

Index Group (1982)

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How to go about BPM?

25
The BPM lifecycle

Source: M. Dumas, M. La Rosa, J. Mendling and H. Reijers, Fundamentals of Business Process Management, 2nd edition, Springer, 2018
26
Roles in the BPM lifecycle

BPM group

System
admin/operati Process
ons team owner Analyst

Process
participants

Developer

Source: M. Dumas, M. La Rosa, J. Mendling and H. Reijers, Fundamentals of Business Process Management, 2nd edition, Springer, 2018
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