business process modeling
DESCRIPTION
Slides from a webinar that I did recently for TIBCO. Full webinar replay with audio available at http://www.tibco.com/mk/2007/bpm-bpm11-jul-07usarc.jspTRANSCRIPT
Copyright Kemsley Design Ltd., 2007
Business Process Modeling
Sandy KemsleyKemsley Design Ltd.www.column2.com
Copyright Kemsley Design Ltd., 2007
Agenda
What’s in your processes? Process modeling notation/standards Modeling for ROI Changing processes = changing job
roles
Copyright Kemsley Design Ltd., 2007
What’s in your processes?
Copyright Kemsley Design Ltd., 2007
Kicking it off
Human intervention Scanned document External event Invoked as web service
Copyright Kemsley Design Ltd., 2007
Types of steps/tasks
Human-facing:Transactional heads-downOccasional participantCollaboration
System:Web service orchestrationLegacy application integrationContent management integration
Copyright Kemsley Design Ltd., 2007
Other considerations
External participants Process monitoring Collecting analytics data Frequency of process/rule/staff
changes
Copyright Kemsley Design Ltd., 2007
A short segue on BPM/SOA
BPM:Management practiceTools for automating processes
SOA:Architectural philosophyDesign standards-based services to
access system functionality
Copyright Kemsley Design Ltd., 2007
BPM and SOA
Service A Service B Service C
Service D Service E
LegacySystem
DatabaseERP
System
ProcessStep 1
ProcessStep 2
ProcessStep 3
ProcessStep 4
Copyright Kemsley Design Ltd., 2007
BPM and SOA together
BPM is the “killer app” for SOA; SOA is the enabling infrastructure for BPMSOA alone only allows you to design
and build a set of servicesBPM alone would require custom
coding for each system integration BPM + SOA orchestrates people and
services into a business process
Copyright Kemsley Design Ltd., 2007
SOA in process modeling
Discovering servicesWhat services already existWhether existing services meet the
needs Specifying services
What new services need to be createdWhat legacy functions need to be
wrapped in services
Copyright Kemsley Design Ltd., 2007
Simulation and optimization
Identify key performance indicators Estimate parameters:
ArrivalsTime per stepParticipantsCost per step
Run and compare scenarios
Copyright Kemsley Design Ltd., 2007
Simulation example
Copyright Kemsley Design Ltd., 2007
Process modeling standards
Copyright Kemsley Design Ltd., 2007
Graphical notation standard
BPMN (Business Process Modeling Notation) = diagramming standard for drawing business processes
Method of communicating processes:Understandable by business users
and unambiguousReduces translation errors between
business and IT Easy transition between tools
Copyright Kemsley Design Ltd., 2007
BPMN flow objects
Event
Activity
Gateway
Copyright Kemsley Design Ltd., 2007
BPMN connecting objects
Sequence flow
Message flow
Association
Copyright Kemsley Design Ltd., 2007
BPMN swimlanes
Pool
Lanes
Copyright Kemsley Design Ltd., 2007
BPMN artifacts
Data object
Group
Annotation
Copyright Kemsley Design Ltd., 2007
BPMN example: exception handling
Copyright Kemsley Design Ltd., 2007
BPMN example: transaction
Copyright Kemsley Design Ltd., 2007
BPMN example: funds transfer
Copyright Kemsley Design Ltd., 2007
Modeling for ROI
Copyright Kemsley Design Ltd., 2007
Areas of process innovation
Automational Informational Sequential Tracking Analytical
Geographical Integrative Intellectual Disintermediating
Source: Process Innovation, Thomas H. Davenport, 1992
Copyright Kemsley Design Ltd., 2007
Improve efficiencies
Automate manual work steps Directly integrate data between
systems Provide process monitoring and
control Automate process statistics gathering
and analysis
Copyright Kemsley Design Ltd., 2007
Cut out the middle man
Provide customer self-service to initiate processes
Provide process visibility to customer
Copyright Kemsley Design Ltd., 2007
Location, location, location
Share redundant processes between business units
Identify steps that can be completed in isolation
Automate escalation and handoffs Allow remote work
Copyright Kemsley Design Ltd., 2007
ROI: reduce costs
Reduce manual tasks Reduce error rates Allow customer self-service Reduce compliance costs Reduce time to implement changes Reduce functional redundancy Allow outsourcing
Copyright Kemsley Design Ltd., 2007
ROI: increase competitive advantage
Reduce time to market Reduce end-to-end cycle time Improve customer service Increase capacity Improve decision-making
Copyright Kemsley Design Ltd., 2007
Calculating ROI
Baseline the “as-is” process Model and simulate “to-be” process Select relevant ROI metrics Select ROI calculation method Calculate best and worst case
scenarios
Copyright Kemsley Design Ltd., 2007
Common ROI pitfalls
Increased capacity does not guarantee increased revenue
Cost reduction may require FTE reductions
Providing self-service does not guarantee that customers will use it
Remote work and outsourcing can have hidden costs
Copyright Kemsley Design Ltd., 2007
Classify BPM ROI potential
Increased agility to business changes Optimized operational efficiency Process standards compliance Shortened process cycle times Better information for decision-making Reduced complexity of integrating
people, processes and existing systems
Copyright Kemsley Design Ltd., 2007
Changing job roles
Copyright Kemsley Design Ltd., 2007
BPM supports changing roles Support for change management initiatives
Model the new organization Simulate and optimize changes Measure results
Enabling more rapid changes Overarching process orchestration and
governance Real-time view of organizational processes Agile, business-driven changes
Copyright Kemsley Design Ltd., 2007
BPM causes role changes
Business function concerns and benefits: Workers
• Concerns: job loss• Benefits: better job and training
Supervisors• Concerns: loss of control• Benefits: improved team and work management
Managers• Concerns: failure to achieve ROI• Benefits: improved visibility and performance
Copyright Kemsley Design Ltd., 2007
Overcoming change resistance
Communication of plans and impacts Involvement in process modeling Demonstration of new technologies Smaller “quick hit” before tackling
radical reengineering
Copyright Kemsley Design Ltd., 2007
Summary
Dissecting your process BPMN ROI BPM and role changes
Copyright Kemsley Design Ltd., 2007
Questions?
Sandy KemsleyKemsley Design Ltd.www.column2.com