ISYS6317

Business Process Management

Week 1
Overview of Business Process
Management
 Learning Outcomes
• LO1: Identify concepts and elements in
business process management.

• Can BPM involve technology,
and is technology a good thing?
• Are process modeling and
management tools useful for
achieving process
improvements in non-
technology circumstances?
What is BPM?
BPM is:
● more than just software
● more than just improving or
reengineering your processes – it also
deals with the managerial issues
● not just hype – it is an integral part of
management
● more than just modeling – it is also
about the implementation and
execution of these processes, which
requires analysis.
 BPM house :
components of a BPM program
strategy

Source : Jeston & Nelis. (2013), Part 1: Chapter 1

 How did BPM emerge?

Source : Jeston & Nelis. (2013), Part 1: Chapter 2

 The next big thing
(or how mystification begins)
There are usually four steps to the creation of a ‘next big thing’:

• The concept promoters (vendors/analysts, etc.) hype it up to the market in

their advertising, sales pitches, promotional materials, research and
successful case studies.
• These promoters then tend to disparage all the ‘old big things’ that have
preceded it, and promote the new big thing as simply the best.
• The next step is to make the ‘new big thing’ very simple so the decision-
makers can understand it, the message being that it is not complicated and
can be easily implemented.
• Finally, the promoters (vendors in particular) market their existing products
and service offerings with this new label (in this case BPM), even if the
offerings do not meet the generally accepted definitions of the label.
 BPM hype cycle

Source : Jeston & Nelis. (2013), Part 1: Chapter 2

 The iceberg syndrome
People often see the ‘perception’
component as the completion of
‘pretty pictures’ or process models,
where as ‘reality’ is addressed in
the implementation of these
processes and the achievement of
business benefits. An excellent
strategy is of no use unless it is well
executed.

Perception, the tip of the iceberg called

“reality”
Source : Jeston & Nelis. (2013), Part 1: Chapter 2
 Management of business
processes
Two aspects to operational management of business
processes:
• Management of business processes as an integral
part of ‘management’
• Management of business process improvement.
 Management of business processes as an
integral part of ‘management’

• specifying objectives (goals) and measures that relate to

the objectives and targets to be achieved
• communicating the objectives
• monitoring and managing progress of the targets, and
verifying whether the objectives and measures are still
accurate and relevant
• motivating staff to exceed objectives and deal with
process disturbances
• encouraging staff to identify bottlenecks and possible
process improvements
 Management of business
process improvement
• This role relates to the identification, development and roll-
out of the benefits of BPM.
• We call these managers BPM managers, and distinguish
between the following types:
– BPM project manager
– BPM program manager
– Manager of the Center of Business Process Excellence
– Chief process officer
 Critical Success factors in a BPM
project
We have identified ten fundamental and critical success factors
that apply to all BPM projects:
1. Leadership 6. People change management

2. BPM experienced business project manager 7. People and empowerment.

3. Linkage to organization strategy 8. Project initiation and completion

4. Process architecture 9. Sustainable performance.

5. A structured approach to BPM 10. Realizing value.

implementation.
 Regatta as a metaphor for
implementing BPM activity

Source : Jeston & Nelis. (2013), Part 1: Chapter 3

 The main drivers and triggers
• a high volume of similar and repetitive transactions
• a clear flow of high-volume transactions that need to be passed from
one person to another, with each adding some value along the way
• a need for real-time monitoring of transactions (a need to know a
transaction status at all times)
• a critical issue with processing time – that is, time is of the essence
• a need to complete many calculations within the transaction
• transactions or ‘files’ need to be accessible by many parties at the same
time.
 Typical BPM drivers

Source : Jeston & Nelis. (2013), Part 1: Chapter 4

How should We Start BPM –
Bottom Up or Top Down?
 BPM house

Source : Jeston & Nelis. (2013), Part 1: Chapter 5

 Why is it important to improve
business processes before
automating them?

The first rule of any technology 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, Microsoft Corporation)

 BPM technology components

Source : Jeston & Nelis. (2013), Part 1: Chapter 7

 Process modeling and design

The main benefits are:

• the ability for multiple modelers to use and modify models
at any one time in any location, resulting in more
consistency, less delays and lower costs
• the ability to manage the process model,
– e.g. validate its correctness, up-to-date status and effectiveness,
resulting in better quality and more results
• the ability to publish process models so that people can
refer to them and the related information
– (e.g. current templates for letters, webpages, application forms),
resulting in more people using the process models, better quality
and lower costs
 Modelling and Design

Fictitious travel agency workflow

Source : Jeston & Nelis. (2013), Part 1: Chapter 7
 Interactive dashboard example

Source : Jeston & Nelis. (2013), Part 1: Chapter 7

 Should We be Customer
Centric?

Taking a customer-centric approach to process design is

considered by many to be sacrosanct.

However, should we “ really” be customer centric when we

are improving or developing our business process?
 Customer-centric: voice of the
customer

Source : Jeston & Nelis. (2013), Part 1: Chapter 8

 Customer levels of service and
satisfaction

Source : Jeston & Nelis. (2013), Part 1: Chapter 8

 The project must ensure
that:
• all disconnects in the organizational functional structure are
identified (the organizational relationship map and the list
of end-to-end process model(s) assist in this process)
• the new process alternatives are reasonable, practical and
simple
• stakeholder expectations are met
• all opportunities for automation are identified
• all interdependencies with other processes or sub-processes
are considered and addressed.
 Employee-centric: voices of the
employee

Source : Jeston & Nelis. (2013), Part 1: Chapter 8

 To be the best is a balance

Source : Jeston & Nelis. (2013), Part 1: Chapter 8

 Employee motivation and satisfaction

Source : Jeston & Nelis. (2013), Part 1: Chapter 8

 BPM house: components of
BPM

Source : Jeston & Nelis. (2013), Part 1: Chapter 9

 Traditional process project
approach

Source : Jeston & Nelis. (2013), Part 1: Chapter 10

 ABPMP BPM CBOK®

Source : Jeston & Nelis. (2013), Part 1: Chapter 10

 Performance components

Source : Jeston & Nelis. (2013), Part 1: Chapter 10

Thank You