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Introduction to BPMhttp://www.youtube.com/watch?v=8Gq2CfHl7fs

Agenda What is BPM?

BPM Components

A BPM Example

BPM Methodologies

Where do I get more information?

What is BPM?

Business

Process

Management

a person, partnership, or corporation engaged in commerce, manufacturing, or a service; profit-seeking enterprise or concern.

1. a systematic series of actions directed to some end.2. a continuous action, operation, or series of changes taking

place in a definite manner.

1. the act or manner of managing; handling, direction, or control.

2. skill in managing; executive ability.3. the person or persons controlling and directing

the affairs of a business, institution.

Source: Dictionary.com

BPM ComponentsA management approach to continuously improve processes

and achieve organizational objectives through a set of methodologies and technologies.

Input Output

People Process

Input

Input: Multiple Types of Process Input

I

Finance Manager

Marketing Manager

Marketing Specialist

Marketing Specialist

CustomerSupplier

PartnerFinancial Analyst

Financial Analyst

INTERNAL EXTERNAL

People: Process Participants

Different Types of ProcessesType Continuous Ad HocCharacteristics Predictable

RepeatableUninterrupted

UnpredictableVariableSpontaneous

Example Payroll Process Expense Report

Customer Meeting$278.94

Conference$619.45

Different Types of ProcessesType Simple ComplexCharacteristics Minimal Steps

Few ParticipantsNo or Minimal RulesSingle System

Multiple StepsMany ParticipantsComplex RulesMultiple Systems

Example Vacation Request Deduction Management

Approved

Denied

• If [yes] AND [=<$100], then A• If [yes] AND [>=$100], then B• If [no] AND [=<$100], then C• If [no] AND [>=$100], then D• If [no] OR [=$0], then E

Different Types of ProcessesType Short LongCharacteristics Minutes, Hours, Days

Quick TasksFew Dependencies

Weeks and MonthsRunning ProcessesMultiple Dependencies

Example New Account Opening

Loan Origination

Your account will be ready in a few minutes

Your mortgage loan is pending approval and should take six

to eight weeks

Output

Output: Multiple Types of Process Output

BPM ComponentsA management approach to continuously improve processes

and achieve organizational objectives through a set of methodologies and technologies.

Input Output

People Process

BPM IT Request Management Example

Input

BPM IT Request Management Example

People

Requester

IT Group

Start Assign to IT GroupProcess

BPM IT Request Management Example

Start Assign to IT Group

Approve<$100

Manager Review

>$100

Issue Hardware End

Process

Manager IT Specialist

Send EmailDenied

People

Requester

IT Group

BPM IT Request Management Example

Output

BPM IT Request Management Example

Start Assign to IT Group

Approve<$100

Manager Review>$100

Issue Hardware End

Process

People

Input

Requester

IT Group Manager IT Specialist

Output

Send EmailDenied

BPM MethodologiesAn approach with principles, procedures, and practices that provide

guidelines for designing and executing the different components within Business Process Management.

Agile & Scrum

MDA

Lean Six Sigma

Define

Measure

Analyze

Improve

Control

• Define the problem• Measure & map existing

process• Analyze areas for

improvement• Improve the process and

implement the solution• Control, maintain, and

optimize

Customers

International Standards OrganizationContinuous Improvement of the

Quality Management System

Management Responsibilit

y

Resource Management

Product Realization

Measurement, Analysis, & Improvement

Customers

RequirementsProduct

Satisfaction

InputOutput

IT Infrastructure Library

IT Service Management (ITSM)• Improve IT services quality• Reduce infrastructure & service

costs• Improve service delivery &

customer satisfaction• Improve productivity• Improve resource allocation• Improve third party service

delivery & quality

Capability Maturity Model Integration

1. Initial • Unpredictable & Reactive• Undefined & Poorly Controlled

2. Repeatable • Manage Processes like Projects• Often Reactive

3. Defined • Proactive Process Standardization• Program Initiatives (COE) for the Organization

4. Managed • Measured and Controlled• Manage Performance & KPIs

5. Optimized • Continuous Process Improvement

Rapid Application DevelopmentRAD

Requirements Planning

User Design Construction

CutoverRapid Application Development (RAD) Model

Model-Driven Architecture (MDA)

http://www.omg.org/mda/

• Open Standards & Vendor-Neutral• Separates Business & Application

Logic from Platform Technology• Platform Independent Models• Based on Unified Modeling

Language (UML) & other OMG Modeling Standards

• Compatible with Web Services, .NET, CORBA, J2EE, & Others

Agile Software DevelopmentVision, Goals, Charter, & Funding

Release Plan, Estimation, Backlog

Iteration Plan, Review, Retrospective

Standup Meetings, Acceptance

Build, Collaborate, Integrate, Refactor

Scrum Methodology

BPM MethodologiesAn approach with principles, procedures, and practices that provide

guidelines for designing and executing the different components within Business Process Management.

A CompellingMethodology Fosters

Best Practices & Governance

Higher Team Performance

Measurable & Controllable Outcomes

Repeatable Success

Agile & Scrum

MDA

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