a model for process transformation
DESCRIPTION
This session introduces some of the principles behind a proposed Business Process Management (BPM) reference model, equivalent to the Workflow Management Coalition (WfMC) Workflow Reference Model. There is signifi cant holistic advantage in deriving the BPM reference model not from workflow or BPM technology, but from logical and architectural analysis of what it is to be a business process. The same model can then support technology, operational process management and business transformation. The principles address fundamental questions like: • What is a business process? Where does it start and stop? What are its logical components? • How can one process control structure cover both manual and automated functionality? • Where do rules fit in? • How to ensure process models align with data models? Does process thinking mean rethinking requirements analysis, solution design and IT engagement and delivery models?TRANSCRIPT
1 May 22-24, 2007
Washington Dulles HiltonThe Business Transformation Conference
Chris LawrenceBusiness Architecture ConsultantOld Mutual South Africa
Session Title:A Model for Process and Transformation
WelcomeWelcome
to Transformation and Innovation 2007 The Business Transformation Conference
2 May 22-24, 2007
Washington Dulles HiltonThe Business Transformation Conference
A Model for Process and Transformation
WfMC BPM and Workflow Handbook 2007– Paper:
• Business Process Architecture and the Workflow Reference Model
– Argument:• Derive BPM reference model not from workflow
or BPM technology, but from logical analysis of the business process
3 May 22-24, 2007
Washington Dulles HiltonThe Business Transformation Conference
A Model for Process and Transformation
Draft BPM reference model– Logical analysis of the business process– Advantages:
• Same model can support:– Technology– Process management– Transformation
– Analogy:• Relational data model
4 May 22-24, 2007
Washington Dulles HiltonThe Business Transformation Conference
WHAT versus HOW
Analogy:– Logical data model v physical data design
Process rules even if no systems were used
Process features relating to a
specific implementation
5 May 22-24, 2007
Washington Dulles HiltonThe Business Transformation Conference
Process analysis, process modelling, process mapping, process design, process improvement...
Receiveswitch
requestMedium?
SYSXValidate request
Paperor fax
SYSXEnter request
WFRoute for checking
WFCheck request
WFValidate scheme
member, populatequeue and move
to MSC
SYSXCheck request
Switch tocash
Web
Operational procedure design around given system components
‘Process’ = linking components together (procedurally or
automatically or both)
This is HOW not WHAT
6 May 22-24, 2007
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Draft BPM reference model
Objectives:– Understand process as WHAT– To get best available HOW
Initial scope:– ‘Administration’:
• Processing orders & applications, granting approval, carrying out instructions …etc etc
• Sales, financial services, central & local government, education, travel, tourism …etc etc etc
7 May 22-24, 2007
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Administration
Service to ‘end-customer’– Implicit or explicit ‘request’
Rule-governed– Right and wrong ways– Standard v exceptions– Sequence; completeness
Increasingly supported by computer systems– People deal with exceptions and special cases– People make rules rather than follow them
8 May 22-24, 2007
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Administration
– Content & rules can be treated abstractly– Essence survives translation into different
formats (brain, paper, digital…)– Eg life insurance policy:
legal contract between a financial organization and
another person or organization, in relation to one or more human lives
Almost everything about it and its creation can be treated abstractly - in a
translatable (eg digitizable) way
Cannot say the same about the
process of making an armchair
9 May 22-24, 2007
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Administration
Concrete object– Cannot be
translated into another form and stay an armchair
Life insurance
policy
Abstract entity– Can be translated
into another form– Only has to exist
as hard copy if rules say so
10 May 22-24, 2007
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Process
ProcessInput(s)Input(s)Output(s)
Familiar model
11 May 22-24, 2007
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Process
Order process
Input(s)Received goods
Business process
Customer order
12 May 22-24, 2007
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Process
Addition process
2
3
5
Calculation process
13 May 22-24, 2007
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Process
PhotosynthesisWater
Carbon dioxide
Sunlight
Glucose
Oxygen
Natural process
14 May 22-24, 2007
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Process
ProcessInput(s)Input(s)Output(s)
This model is generic– Nothing special about business process
15 May 22-24, 2007
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Process
Process 1
Input 1
Output 1
16 May 22-24, 2007
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Process
Process 1
Input 1
Output 1
Input 2
Process 2
Input 3
Output 2
Output 3
=
17 May 22-24, 2007
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Process
Process 1
Input 1
Output 1
Input 2
Process 2
Input 3
Output 2
Output 3
Input 4
Process 3
Output 4
=
18 May 22-24, 2007
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Process
Process 1
Input 1
Output 1
Input 2
Process 2
Input 3
Output 2
Output 3
Input 4
Process 3
Output 4
19 May 22-24, 2007
Washington Dulles HiltonThe Business Transformation Conference
Process
Input 1
Input 3
Process 4 (1+2+3)
Output 4
Output 3
20 May 22-24, 2007
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Process
ProcessInput(s)Input(s)Output(s)
This model is also indefinite– Where does the process start and stop?
– For a business process we need something more precise
21 May 22-24, 2007
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Business process
Process Output(s)Input(s)
ProcessRequest Outcome
For a business process we need to identify:– A particular kind of input– A particular kind of output
Request is for the outcome Outcome = thing requestedRequest = entity changing business status through the processOutcome = last business status change
BPMN symbol for ‘data object’
BPMN symbol for ‘process’ or ‘process
component’
22 May 22-24, 2007
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Business process
ProcessRequest Outcome
Unambiguous start point Unambiguous
end point
At individual instance level
Paradigm case: request is from a customer (external or internal)
Paradigm case: outcome is for that customer
Achieving the requested outcome will involve following rules
‘Process’ is not arbitrary:starts with the request & =
everything which must be done to achieve the requested outcome
23 May 22-24, 2007
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Business process
ProcessRequest OutcomeProcessRequest Requestedoutcome
Alternativeoutcome(s)
The business process will involve following rules– Rules may or may not be satisfied
– Requested outcome may not be achieved:• Eg ordered goods unavailable; loan application unsuccessful; …
– But just like the requested outcome, any alternative outcome will also be correct in terms of the rules of the process
24 May 22-24, 2007
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Business processBusiness process
Order process
Input(s)Received goods
Customer order
Order Order process
+
Despatchadvice
25 May 22-24, 2007
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Subprocess
– A business process can normally be broken down into a finite series of subprocesses…
Request Process
+
Outcome OutcomeRequestSubprocess
1+
Subprocess2+
Subprocess3+
Takeorder
+
Checkcreditrating
+
Matchagainststock
+
Authoriseorder
+
Despatchorder
+
Checkorder
+
Order process
Start Stop
26 May 22-24, 2007
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Subprocess
OutcomeRequestSubprocess
1+
Subprocess2+
Subprocess3+
Fixed pattern: sequential; parallel…
Subprocess 1, subprocess 2 etc can be described in purely business terms, eg
‘authorise order’, ‘match against stock’. Subprocesses would need to happen
whatever system was used, or whether a system was used at all.Boundaries often =
hand-offs/breakpoints needing internal/external interaction, eg
input or authorisation.
Boundaries set by business not system constraints.
Boundaries often correspond to bottlenecks, eg x cases awaiting authorisation.
Subprocesses not arbitrary collections of actions, nor events in terms of a
particular computer system:Eg not Run job C123 but Check
customer’s credit rating.
27 May 22-24, 2007
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Subprocess
Takeorder
+
Checkcreditrating
+
Matchagainststock
+
Authoriseorder
+
Despatchorder
+
Checkorder
+
Order process
Start Stop
A subprocess is not:– An arbitrary set of actions
– A piece of functionality
A subprocess is:– A transition from one business status to the next
In this example order process:– ‘Check credit rating’ = transition from ‘awaiting Check credit rating’
to ‘awaiting Match against stock’
28 May 22-24, 2007
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Where are we?
So far:– Business process
• Request• Outcome
– Subprocess
Next:– Business rule– Task
29 May 22-24, 2007
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Business rule
Takeorder
+
Checkcreditrating
+
Matchagainststock
+
Authoriseorder
+
Despatchorder
+
Checkorder
+
Order process
Start Stop
Rules about what subprocesses
Rules about sequence of
subprocesses
Rules about what happens inside a
subprocess
Subprocess ‘Check order’:
All orders must be for a known customer
Items must be identifiable as goods the business trades in
Quantities must be specified
…etc.
30 May 22-24, 2007
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Business rule
NOT:– Process and subprocesses come first– Then decide what the rules are
BUT:– Rules come first– Definition of process = rule
• Where process starts and stops
– Analysis into subprocesses = rules– Some rules fit inside other rules, eg
• Rule that you have to achieve something
• Rules about what to do to achieve it
x
...which takes us to the concept of
task
31 May 22-24, 2007
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Task
Takeorder
+
Checkcreditrating
+
Matchagainststock
+
Authoriseorder
+
Despatchorder
+
Checkorder
+
Order process
Start Stop
Rules about what happens inside a
subprocess
Subprocess ‘Check order’:
All orders must be for a known customer
Items must be identifiable as goods the business trades in
Quantities must be specified
…etc.
32 May 22-24, 2007
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Task
Take order
+
Check creditrating
+
Match againststock
+
Authoriseorder
+
Despatchorder
+
Check order
+
x
OKNot OK
Check each order against business
rules
Valid orders can pass to the next
subprocess
But what about invalid orders?
33 May 22-24, 2007
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TaskAll the work of the subprocess is contained within the tasks.
‘Subprocess’ = container for the tasks.
Checkcreditrating
+
Matchagainststock
+
Authoriseorder
+
Despatchorder
+
Check order
Automaticcheck
Manualcorrecterrors
Takeorder
+
All orders go through the
automatic check task, which runs business rules
Some orders (perfect ones) only need to go through
the automatic task
Others (imperfect ones) are routed by the automatic task
to the manual task
Manual task to correct the errors
The manual task then routes them back to the automatic
task for rechecking
34 May 22-24, 2007
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Match againststock
+
Authoriseorder
+
Despatchorder
+
Check credit rating
Automaticcredit check
Manual creditcheck
Automaticfollow up
Manualrecord reply
meets criteriaof 3, 4 or 5approved
(rule 3)
pass1 or 2
written to customer(rule 4 or 5)
Checkorder
+
Take order
+Task
Example of a more complex task structure for subprocess: Check
credit rating
But the principle is the same: tasks & routing derived from applying
rules to possible orders
35 May 22-24, 2007
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Task
Apply the concept of a
Business ruleto the
Routingneeded to achieve the work of a
Subprocessand you get the concept of a
Task
Flow at subprocess level:
- From logical sequencing of process rules
- Ignores variety of individual cases
Flow at task level:
- From logic & logistics of applying process rules to variety of individual cases
36 May 22-24, 2007
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Draft BPM reference model
Process architecture approach:– Three levels
• A business consists of a finite set of processes• A process consists of a finite set of subprocesses• A subprocess consists of a finite set of tasks
– Result = process model• Derived from
– Business rules
applied to
– Business data entities
37 May 22-24, 2007
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Process model Business (area)
Subprocess1.2A
M
M
Subprocess1.1
Subprocess 1.3
A
Subprocess2.1+
Subprocess2.2+
Subprocess2.3+
Subprocess2.4+
Subprocess3.1+
Subprocess3.2+
Subprocess3.3+
Subprocess3.5+
Subprocess3.4+
Process 1 Process 2 Process 3 …etc
+
Model can also show how processes interact with each other:
One may initiate anotherOne may terminate anotherOne may determine outcome of another…etc
38 May 22-24, 2007
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Transformation
AS IS TO BE
39 May 22-24, 2007
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Transformation
TO BEAS ISAS IS TO BE
At physical level:
HOWCurrent solution, using
current systems, people, partners etc
At physical level:
HOWProposed solution, using
proposed systems, people, partners etc
Both are HOW not WHAT:
40 May 22-24, 2007
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Transformation
Need a stepping stone:
AS IS TO BELogical model
41 May 22-24, 2007
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Transformation
Logical model= step between TO BE and AS IS
• Implicit or explicit• = AS IS with all contingent constraints removed
(Abstract away everything that could be otherwise)
• Logical model can only be realised in physical terms
TO BE:= best available/achievable implementation of logical
model
42 May 22-24, 2007
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Logical model
Subprocess1.2
A
M
M
Subprocess1.1
Subprocess 1.3
A
Subprocess2.1+
Subprocess2.2+
Subprocess2.3+
Subprocess2.4+
Subprocess3.1+
Subprocess3.2
+
Subprocess3.3
+
Subprocess3.5
+
Subprocess3.4
+
Business (area)
Process 1 Process 2 Process 3 ...etc
= Process model
Account
AddressMember
Organization
OrgCategory
Category
DocTypeRule
DocumentType
Document Membership
Frequency
PaymentMethod
AccountType
AccountTrans
TransType
OrgTransType
+ Data model
BPM reference model = principles for developing a logical process model aligned with the logical data model
To support: business analysis; system selection & design; transformation; change management; process management; ...etc
43 May 22-24, 2007
Washington Dulles HiltonThe Business Transformation Conference
A Model for Process and Transformation
Draft BPM reference model– Logical analysis of the business process– Advantages:
• Same model can support:– Technology– Process management– Transformation
– Analogy:• Relational data model
More than an analogy
44 May 22-24, 2007
Washington Dulles HiltonThe Business Transformation Conference
Thank YouThank YChris LawrenceBusiness Architecture ConsultantOld Mutual South Africa
Contact Information:+27 76 610 [email protected]
ou