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Topic 5

BusinessProcess
Optimization

6.1

Copyright 2014 Pearson Education, Inc. publishing as Prentice Hall

LEARNING OBJECTIVES
1.
2.
3.
4.
5.
6.
7.
6.2

Defining BPM
Business drivers of BPM
Functional Goals
BPM Architectures
How to achieve BPM
Best Practices
Pitfalls to avoid
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26/10/2015

1. DEFINING BPM
Business Process Management (BPM) is a set of methods,
tools, and technologies used to design, enact, analyze,
and control operational business processes.
BPM is a process centric approach for improving
performance that combines information technologies with
process and governance methodologies.
BPM is a collaboration between business people and
information technologists to foster effective, agile, and
transparent business processes.
Introduction
6.3

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1. DEFINING BPM
Dimensions of BPM
1. Business: The value dimension
2. Process: The transformation dimension
Process effectiveness
Process transparency
Process agility
3. Management: The enabling dimension

6.4

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26/10/2015

1. DEFINING BPM
BPM Technology
1. Process Modelling and Design
2. Integration
3. Composite Application Frameworks
4. Execution
5. Business Activity Monitoring
6. Control

6.5

Copyright 2014 Pearson Education, Inc. publishing as Prentice Hall

1. DEFINING BPM
BPM and CPI: Continuous Process Improvement (CPI)
methodologies like Six Sigma and Lean are naturally part
of BPM.
BPM is business infrastructure: It promotes quick,
incremental improvements while reaching levels of
process stability and performance quickly.
BPMS: It is a Suite of BPM technologies, including all the
functional modules, technical capabilities, and supporting
infrastructure
6.6

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2. Business drivers of BPM

Business Needs: Globalization, Commoditization,
Productivity, Innovation, Speed, Compliance, Information
overload, changing nature of people and work, Customer
first, etc.
Business drivers promoting the use of BPM: Improving a
process or sub-process, BPM(S) for CPI, BPM for SOA,
Business Transformation
Value propositions of BPM: Automation, Agility, Flexibility,
Visibility, Collaboration, Governance.

6.7

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3. Functional Goals

Process Effectiveness
Process Transparency
Process Agility

6.8

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26/10/2015

3. Functional Goals
Process Effectiveness
Optimization
Real time monitoring
What if.. Analysis
Automation
Control and Decision making

6.9

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3. Functional Goals
Process Transparency
WYMIWYR (What You Model Is What You Run)
WYMIWYM (What You Measure Is What You Manage)
BPM is based on MetaData
Metadata is data that describes other data. For example, a web page may
include metadata specifying what language the page is written in, what tools
were used to create it, and where to find more information about the subject; this
metadata can automatically improve the reader's experience.

6.10

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3. Functional Goals
Process Agility
The greatest barrier to change is communication
Communication and Collaboration
Agree on the metrics of business process performance
Share process models and common business semantics
Clearly communicate about the tasks to be performed

Rapid Development
It allows you to sense change when it happens, interpret the
impact of that change, and develop a shared understanding of
how the business should respond.

6.11

Copyright 2014 Pearson Education, Inc. publishing as Prentice Hall

4. BPM Architectures
When adopting BPM, think of your enterprise architecture as
consisting of four subarchitectures:
1. Business Architecture
2. Process Architecture
3. Management Architecture
4. Technology Architecture

6.12

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26/10/2015

4. BPM Architectures
1.Business Architecture
is the design representation of how an enterprise defines
itself in terms of its role and purpose, and how it defines
the way it creates value. Every enterprise defines its highlevel business goals, and creates an organizational
structure, including a functional decomposition into
operating units, as a basic structure for meeting its goals.
These models have evolved into business architectures
that align people, work, and capital to the processes that
create customer value.
6.13

Copyright 2014 Pearson Education, Inc. publishing as Prentice Hall

4. BPM Architectures
1.Business Architecture
Business Process Management calls on the organization
to adjust its business architecture to directly foster value
creating business processes.
BPM asks you to create new roles that cut across
functional stovepipes to support the process-centric
business. Some of these roles are: chief process officer,
process architect, business process owners, process
engineers, process analyst, process performer.
6.14

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4. BPM Architectures
2. Process Architecture
A process architecture is the written or diagrammatic
representation of the value chains and business processes
that operate across an enterprise.
It includes both the core operating processes and enabling
management support processes.

6.15

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4. BPM Architectures
2. Process Architecture
Being a process owner
The most important of all roles in a process-centric business is the
process owner the individual who designs and coordinates the
assembly and participation of all the functions and work activities at all
levels within a process. The process owner:
Is a business person.
Has the authority or ability to make changes in the process.
Is responsible for the process measurement and feedback systems,
process documentation, and the training of the process performers.
Is the person ultimately responsible for process improvement.

6.16

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26/10/2015

4. BPM Architectures
2. Process Architecture
A process participant is a member of a global stream of
people, systems, and technology. This is responsible not
only for doing his direct functional jobs but also for
understanding how his role fits in the bigger picture.
The process participant knows precisely how he creates
value. BPM workflows help guide him; real-time monitoring
provides feedback to him; and BPM control systems help
him take action when things are going wrong

6.17

Copyright 2014 Pearson Education, Inc. publishing as Prentice Hall

4. BPM Architectures
3. Management Architecture
The managements role is to direct the actions and
behaviours of people and systems, as well as the flow of
information over time.
The BPM management architecture includes project
management, process management, and process
improvement.

6.18

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26/10/2015

4. BPM Architectures
4. Technology Architecture
The Technology Architecture compliments the business,
process, and management architectures to meet business
needs and goals.
It includes the set of component technologies that combine
to support the functional goals and business drivers.

6.19

Copyright 2014 Pearson Education, Inc. publishing as Prentice Hall

4. BPM Architectures
4. Technology Architecture
The major components of the technical architecture include:
The Unified Workspace: User interfaces, monitoring and
dashboards, and task inboxes
The Execution Environment: Business rules engine, the
process engine, and the analytics engine
The Simulation Engine
The Process Design Toolbox: Process modeling, rule
definition, KPI definition, process development, and user
interface design
6.20

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4. BPM Architectures
4. Technology Architecture
The Metadata Repository: The container for process
asset descriptions, relationships, and policies
Web Service Adapters and New Services Development
Environment:
Provides
connections
to
existing
functionality and tools for creation of new services

6.21

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5. How to achieve BPM

A. We need foundation

The strategic imperative

Know your goals

Follow a process methodology (Six Sigma, Lean)

Set up the architectures

Define measurement systems

B. Preparing for the Bigger Issues (Culture, Risk attitude, IT

environment, Professional development etc.)
6.22

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5. How to achieve BPM

C. Preparing for the Bigger Issues (Culture, Risk attitude, IT
environment, Professional development etc)
D. Taking Your First Steps

Optimize current operations

Develop new processes and applications

E. Showing Them the Money (ROI, Benefits for

constituencies. Removing gaps )

6.23

Copyright 2014 Pearson Education, Inc. publishing as Prentice Hall

6. Best Practices
1. Think process; be process.
2. Get smart!
3. Adopt an executive.
4. Great expectations.
5. Pick a methodology.
6. The right technology.
7. Hear the voice of the customer.
8. Pick a project.
9. Measure first.
10. Plan to change.
6.24

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7. Pitfalls to avoid
1. Firing too early.
2. Thinking in stovepipes.
3. Making a RIF (Reduce In Force) program.
4. Solving problems once.
5. Not supporting users.
6. Ignoring the end users.
7. Forgetting to celebrate.
8. Hard-wiring the framework.
9. Using gut feel.
10. Automating failure.
6.25

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