modeling in the large keynote

Michael zur Muehlen, Ph.D.Center for Business Process InnovationHowe School of Technology ManagementStevens Institute of TechnologyHoboken [email protected]

Process in the LargeFrom Enterprise Process Wikis to Crowdsourced Process Designs

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Sunday, September 19, 2010

mailto:[email protected]

mailto:[email protected]

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AgendaHow large organizations approach BPM

What’s different about Process in the Large

Wikis and Collaboration

Some insights

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Part 1: How Large Organizations

Approach BPM

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“Let’s try this out carefully”

Choose a single pilot process to gain experience with BPM

Good: High-value, low-medium risk business case

Example: Onboarding, Claims Processing

Bad: No-value, no-risk business case

Example: Vacation request, Expense reimbursement

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Scheduled Project Time during First BPM Project

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Business CaseProject Team SelectionProcess DiscoveryDocumentationFunctional and Technical SpecificationTools Evaluation and SelectionImplementationTesting and DebuggingDeployment and Training

Source: BPTrends (2006)


Scheduled Project Time during First BPM Project

5%

3%

41%

4%

9%

11%12%

7%

8%

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Business CaseProject Team SelectionProcess DiscoveryDocumentationFunctional and Technical SpecificationTools Evaluation and SelectionImplementationTesting and DebuggingDeployment and Training

Source: BPTrends (2006)


Problem: Process Confabulation

Problem

People should know why they perform tasks

If they don’t, they make up explanations

Consequence

Accurate process discovery becomes difficult

Reinforces assumptions that participants share about the process (Black Swan problem)

Solution

Observe rather than ask

Follow the process object

Rainy Day Approach: Use Specific Examples

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Problem: Paper BiasProblem

Process designs mimic paper-based processes

Consequence

Innovative designs are overlooked

Inefficiencies remain because technology capabilities are underutilized

But: Processes are easily understood by those who are used to paper

Solution

Model backwards

Focus on data dependencies

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“Let’s model everything”

Need an Enterprise Process Architecture

Comprehensive Process Documentation

Motivation

Compliance Requirements

Developing Global Standards

Mergers and Acquisitions

“We like to model”


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1.0Develop Vision and Strategy

2.0Design and

Develop Products and

Services

3.0Market and Sell Products and Services

4.0Deliver

Products and Services

5.0Manage Customer Service

Operating Processes

6.0 Develop and Manage Human Capital

7.0 Manage Information Technology

8.0 Manage Financial Resources

9.0 Acquire, Construct, and Manage Property

10.0 Manage Environmental Health and Safety

11.0 Manage External Relationships

Management and Support Processes

Source: APQC (2007)

Enterprise Process Map: APQC

12.0 Manage Knowledge, Improvement, and Change


Roles &Responsi-

bilities

Process Owners

ProcessManagers

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Enterprise Process Map: Fortune 500

Methods Organization

Levelconcept

Conventionhandbook

Modelinghandbook

CorporateModelingService


Process Abstraction Levels

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Process Groupings

Business Activities

Core Processes

Business Process Flows

Detailed Process Flows

Level A

Level B

Level C

Level D

Level E

Level F

ObjectivesBusiness Activities

Delivery Units Products

Processes Systems

Scorecard

Sub Processes Roles System Functions

Operational Process Flows

Detailed Processes TransactionsDetailed Roles

Delivery Teams

Ownership ServicesProcess Groupings

Core processes

Source: British Telecommunications plc 2006



12

Process Groupings

Business Activities

Core Processes



Level A

Level B

Level C

Level D

Level E

Level F



Processes Systems

Scorecard




Delivery Teams


Core processes


What



12

Process Groupings

Business Activities

Core Processes



Level A

Level B

Level C

Level D

Level E

Level F



Processes Systems

Scorecard




Delivery Teams


Core processes


What

How





Processes Systems

Scorecard


Delivery Teams


Core processes

Enterprise Process Architecture

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Enterprise Process Map

Proc

ess

Leve

ls

Strategy

Management AccountingIT

Warehouse

Marketing

Sales

Distribution

Billing

AccountsAccounts

Purchasing

Order

Receiving

Invoice

General Accounting and Asset Cost Accounting

Human Resources


DWiz/DCMO/BMA CTO/CA

Modeling LevelsMilestones

Handoffs

Decisions

ProceduresSunday, September 19, 2010

“We’re doing SOA, let’s figure out this BPM stuff later”

Typical Procedure

Analyze existing systems

Establish basic services

Implement Enterprise Services Bus

Try to identify processes that can leverage the services

Problem

Without processes there is no point of reference for

services abstraction

granularity

usage frequency 15


SOA - What Developers See

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Services - What Architects See

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What the Customer Wants

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Part 2:What’s Different aboutProcess in the Large

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Part 2: What’s Different about Process in the Large


Issues Framework 20

Project Management

MaintenanceDesignSetup

Modelers Users Info. Providers

Tools and Lang.

Commitment to Change

Value Proposition Governance


Strategy-related Issues

Top Management

Support

End-goal perceptions

Economic Value (economics)

PoliticsCommit-ment to

long term

ROI Justification

Sponsorship

Lack of value metrics (i.e.,

Balanced Scorecard)

Corporate standards

Focus on Initiatives

Incentives

Governance

Lack of Benchmarks

Costs

New tool acquisition

Training

Costs associated with

updating the models

Ownership of models

Lack of control

Lack of coordination

point

Strategy-related Issues21


Process Modeling Life Cycle Issues

Setup

Lack of common

methodology

Design

Consoli-dation and Integration

Lack of modeling objectives

Lack of standards for reuse

Variant management

InfrastructureModel quality

assuranceRework Timeliness

Corporate modeling standard

Level of abstraction

Modeling guidelines

Maintenance

Model maintenance

Modeling-related Issues22


Resource-related Issues

Process Modeler

BPM education

Model User

Integration of activities

Level of expertise

and experience

Cost efficiency

Capability to abstract

Turnaround time

Knowledge sharing

Level of complexity

Hierarchical decompo-sition of models

Tool and Language

Lack of model

utilization

Resistance to change / adoption of

BPM

Lack of transfer

Lack of communication

Lack of using full toolset

features

Intellectual property

Limited access to repository

Information Provider

Loss of knowledge

Lack of adequate

toolset

Integration with other modeling

tools

Lack of good graphical process mapping

Lack of efficient repository search

engine

Resource-related Issues23


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Capability-Driven


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Goal-Driven


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Wikis and Collaboration


Process Wiki

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Process Wiki (2)

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Collaboration

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Issues around Process in the Large

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Issues around Process in the LargeIdentification of Best Practices

Building shared understanding of Models

Federation of Process Designs

Federation of Process Metrics

Compliance Checking

Organizational Alignment

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Final Thought

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Methods don’t matter


Final Thought

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Methods don’t matteruntil you’ve picked one
