bpm techniques and tools: a quick tour of the bpm lifecycle

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BPM Techniques and ToolsA Quick 360° Tour of the BPM

Lifecycle

Marlon DumasUniversity of Tartu

marlon.dumas@ut.ee

Body of principles, methods and tools to • analyze,• (re-)design,• execute and • monitor business processes, with the aim of improving their performance.

What is BPM?

Improving Performance (Rummler’s Framework)

Financial

HumanResources

Technology

Economy CultureRegulatory

Organisation

Performance ManagementPerformance Planning

Function A Function B Function C

Assets &Resources

Business Environment

Stakeholders

Customers

Materials

Competitors

Business Process

Business Process

Business Process Valu

e

3

EfficiencyIntegration

Compliance

Internal

Quality

Networking Agility

External

The Seven Values of BPM – Rosemann et al. 2011

Transparency

M. Rosemann et al., “Value-Driven BPM: Which Values Matter for BPM?”, 2011

The BPM lifecycle

Process identification

Conformance and performance insights

Conformance and performance insights

Processmonitoring and

controlling

Executable processmodel

Executable processmodel

Processimplementation To-be process

modelTo-be process

model

Processanalysis

As-is processmodel

As-is processmodel

Process discovery

Process architectureProcess architecture

Processredesign

Insights onweaknesses and

their impact

Insights onweaknesses and

their impact

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Gover-nanceCultureStrategy

What?1. Identify an organization’s business processes2. Prioritize their management based on certain criteria

Why?3. Get a broad picture of processes in the org and relations4. Maximize value of BPM initiatives

Process Identification

1. Designation• Enumerate main processes• Determine process scope

2. Prioritization

Process Identification

After Davenport (1993)

Process Architecture

PrioritizedProcessPortfolio

Process Enumeration

“Most businesses have just three core processes:1. Sell stuff2. Deliver stuff3. Making sure you have stuff to sell and deliver”

Geary Rummler

Porter: Components of a process architecture

Core Processes

Management Processes

Sup

plie

rs /

Par

tner

sC

ustomers / S

takeholders

Support Processes

After Michael Porter (1985)

StrategicManagement

LogisticsManagement

WarehouseManagement

SuppliersManagement

Management processes

Finance Indirectprocurement IT HR

Core processes

Support processes

WholesalerExample: Process Landscape

DemandManagement

SalesDirectprocurement

Distribution

ServiceMarketing

Process Scoping

Processes are interdependent insights into interrelations required

• Horizontal: upstream – downstream processes• Vertical: main processes – sub-processes• Specialization: general – special product/service

Process architecture

• Chain of core processes an organization performs to deliver value to customers and stakeholders

Horizontal Scoping: Value Chains

Procure-to-service

Vertical Scoping: Process HierarchiesProcess hierarchy

Level 1

ProcessLandscape

Level 2Main

Processes(e.g. BPMN)

Level 3+Subprocesses, Tasks

(e.g. BPMN)

Transparency

Financial institution

Example: Prioritized Process Landscape

Health

Impo

r tan

c e

High

LowGoodPoor

Short-term actionRating

Contractpreparation

Loan marketevaluation

Handling ofpayments

Loanapplication

Loanplanning

Loancontrolling

Loandecision

Feasibility

Low

High

Medium

Possible Strategic fit?

Transparency

The BPM Lifecycle

Process identification

Conformance and performance insights

Conformance and performance insights

Processmonitoring and

controlling

Executable processmodel

Executable processmodel

Processimplementation To-be process

modelTo-be process

model

Processanalysis

As-is processmodel

As-is processmodel

Process discovery

Process architectureProcess architecture

Processredesign

Insights onweaknesses and

their impact

Insights onweaknesses and

their impact

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Modeling notations

BPMN

DMN

Tools Syntax & style checking

Model repository management

Dictionary & ontologies

Process Discovery

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Discovery techniques

Interviews, walkthroughs

Observation

Document analysis, automated process discovery

Workshops (e.g. sticky-notes)

Modeling guidelines and quality frameworks

7PMG

Silver’s BPMN style guidelines

SEQUAL framework

Process Discovery

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Business process model

ERP

Senior Finance Officer

FinanceDepartment

Check Invoice

Mismatches

Enter InvoiceDetails

mismatch exists

no mismatches

Block Invoice

Invoice received

Invoice posted

Post Invoice

Invoice blocked

Invoice InvoiceReport

InvoiceInvoice DB

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Transparency

The BPM lifecycle

Process identification

Conformance and performance insights

Conformance and performance insights

Processmonitoring and

controlling

Executable processmodel

Executable processmodel

Processimplementation To-be process

modelTo-be process

model

Processanalysis

As-is processmodel

As-is processmodel

Process discovery

Process architectureProcess architecture

Processredesign

Insights onweaknesses and

their impact

Insights onweaknesses and

their impact

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Process analysis techniques

Lean

Waste analysis

Six big losses

Bottleneck analysis

Six Sigma

Value-added

analysis

Root-cause

analysis

Pareto analysis

Business Analysis

SWOT

Stakeholder analysis

Issue Register

Operations Mgnt.

Flow Analysis

Queuing Analysis

Simulation

Quality Efficiency

The BPM lifecycle

Process identification

Conformance and performance insights

Conformance and performance insights

Processmonitoring and

controlling

Executable processmodel

Executable processmodel

Processimplementation To-be process

modelTo-be process

model

Processanalysis

As-is processmodel

As-is processmodel

Process discovery

Process architectureProcess architecture

Processredesign

Insights onweaknesses and

their impact

Insights onweaknesses and

their impact

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Transactional Redesign• Doesn’t put into question the current process structure• Seeks to identify problems and resolve them incrementally,

one step at a time• E.g. Business Process Reengineering (BPR)

Transformational Redesign• Puts into question the fundamental assumptions and

principles of the existing process structure• Aims to radically change the process structure• E.g. Heuristic process redesign

Process Redesign Styles

Capture information once and at the source

Subsume information-processing work into the real work that produces the information

Have those who use the output of the process drive the process

Put the decision point where the work is performed, and build control into the process

…

Business Process Reengineering (Hammer)

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Quality Efficiency

• Task elimination• Task composition/decomposition• Triage

Task-level

• Re-sequencing• Parallelism enhancementFlow-level

• Specialization & standardization• Resource optimization• Communication optimization• Automation

Process-level

Redesign heuristics (Reijers et al.)

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Cost

Quality

Time FlexibilityQuality Efficiency Agility

The BPM lifecycle

Process identification

Conformance and performance insights

Conformance and performance insights

Processmonitoring and

controlling

Executable processmodel

Executable processmodel

Processimplementation To-be process

modelTo-be process

model

Processanalysis

As-is processmodel

As-is processmodel

Process discovery

Process architectureProcess architecture

Processredesign

Insights onweaknesses and

their impact

Insights onweaknesses and

their impact

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Process automation

Executable process design

BPMS Implementation

Enterprise system

configuration

API Design...

Process change management

Job redesign

Change resistance

Performancemanagement

planning

Training….

Process implementation

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Quality

Efficiency

Compliance

Transparency

Integration

The BPM lifecycle

Process identification

Conformance and performance insights

Conformance and performance insights

Processmonitoring and

controlling

Executable processmodel

Executable processmodel

Processimplementation To-be process

modelTo-be process

model

Processanalysis

As-is processmodel

As-is processmodel

Process discovery

Process architectureProcess architecture

Processredesign

Insights onweaknesses and

their impact

Insights onweaknesses and

their impact

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Process monitoringDashboards & Reports

Process MiningEventstream

DB

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Process Mining

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/

event log

discovered modelDiscovery

Conformance

Deviance

Differencediagnostics

Performance

input model

Enhanced modelevent log’

Quality Efficiency Compliance

Transparency

EfficiencyIntegration

Compliance

Internal

Quality

Networking Agility

External

Quo Vadis

Transparency

M. Rosemann et al., “Value-Driven BPM: Which Values Matter for BPM?”, 2011

1980-…TQM

Six Sigma

1980…BPRLean

2000…ISO 9001

Sarbanes-Oxley

1990…Workflow Mngt.

SOARPA

2000-…BPO

Open InnovationCustomer Journey

2010-…Case Mgnt.

Digital Transf.Vertical Integration

1990-…Process ModelingDecision Modeling

Customer Journey Mapping

Networking Customer intimacy Customer journey analysis

Privacy, trust, integrity Blockchain

Agility / adaptability

Vertical integration Integrated product & process management

Offline-to-online integration

Digital transformation

Rapid lifecycle iteration NESST

Personalized conversations

Predictive BPM

Challenges & Opportunities

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Want to know more?

Starts 10 October 2016

Register at: http://moocs.qut.edu.au