BPM

Description

Mind Map on BPM, created by rdgmat001 on 02/06/2014.
rdgmat001
Mind Map by rdgmat001, updated more than 1 year ago
rdgmat001
Created by rdgmat001 over 10 years ago
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Resource summary

BPM
  1. BPM aims to continually improve and analyse existing business activities
    1. BPM is about improving efficiency, flexibility and effectivenss to respond to change
      1. Business process
        1. A set of related business activities that when performed result in an outcome of value to the customers and organisation
          1. Components of BP
            1. Management Process
              1. Authority, people and policies responsible for controlling operations
              2. Operation process
                1. People and processes which objective is to perform operations
                2. Information process
                  1. Collect and store data to provide useful information to users
                  2. External parties
                    1. The first three components help to conduct business with external parties
                  3. Types of business processes
                    1. Individual Processes
                      1. Carried out by individuals
                      2. Vertical/functional processes
                        1. Within a business functional unit
                        2. Horizontal/Cross functional processes
                          1. Cut across business functional units and sometimes companies
                      3. BPM, BP improvement and re-egineering
                        1. Enterprise level change methodologies
                          1. Ensure all BPs making up a value chain are well integrated
                            1. Methodologies
                              1. Balanced Scorecards
                                1. Used to align corporate goals and strategies
                                  1. Management tracks four different perspectives
                                    1. Financial
                                      1. Customer
                                        1. Process
                                          1. Learning and growth
                                          2. Objectives will be determined in terms of each perspective
                                            1. Managers assigned a scorecard with objectives in each perspective
                                              1. Balanced scorecard strategy map (refer to figure)
                                                1. Strategy map divides corporate strategy into 5 themes
                                                  1. Increase return on capital
                                                    1. Improve operating quality and efficiency
                                                      1. Grow high value customer relationshipos
                                                        1. Accelerate product innovation
                                                          1. create high performance culture
                                                      2. Enterprise BP trends methodology
                                                        1. Covers enterprise and process levels
                                                          1. Concerned with creating tools that an enterprise can use to organise and manage BP
                                                            1. Phases
                                                              1. Understand enterprise context

                                                                Annotations:

                                                                • Identify strategic goals and value chain processes Model processes
                                                                1. Define BP architecture

                                                                  Annotations:

                                                                  • Creating a BP architecture for a value chain
                                                                  1. Define process governance

                                                                    Annotations:

                                                                    • Develop plan to manage BPs Create a BPM group to help management monitor processes
                                                                    1. Day-to-day management of BPs

                                                                      Annotations:

                                                                      • Ongoing maintenance and use of tools created
                                                              2. BP process level change methodologies
                                                                1. BPR
                                                                  1. Redesigning BP to gain improvements such as cost reductions, speed and service
                                                                    1. Obliterate rather than automate
                                                                      1. Complete redesign of business processes to achieve improvements
                                                                        1. Use of IT in redesigning and automating processes
                                                                          1. Designing entire process from scratch using latest technology
                                                                            1. Now replaced by BP redesign and BP improvement
                                                                            2. Six Sigma
                                                                              1. Aims to reduce process variation as much as possibler
                                                                                1. BPI project organised around a five phase approach (DMAIC)
                                                                                  1. Define

                                                                                    Annotations:

                                                                                    • Define customer requirements Charter detailing what the team must achieve and the process to be improved
                                                                                    1. Measure

                                                                                      Annotations:

                                                                                      • Team defines measures to determine how well the requirements are met by each process Measures such as input from suppliers, costs and customer satisfaction
                                                                                      1. Analyse

                                                                                        Annotations:

                                                                                        • Analyse existing processes using methods such as breaking down processes down into activities to consider the value added by each activity
                                                                                        1. Improve

                                                                                          Annotations:

                                                                                          • Coming up with ways to improve the process
                                                                                          1. Control

                                                                                            Annotations:

                                                                                            • Plan to maintain gains and continually improving
                                                                                          2. Improving consistency and quality of process output
                                                                                          3. Lean
                                                                                            1. Improving flow of activities and reducing cost of a process by removing waste
                                                                                              1. Uses proven tools and techniques
                                                                                                1. Concerned with process redesign and improvement (enterprise and BP level)
                                                                                                  1. Enterprise methodology
                                                                                                    1. Flow Kaizen
                                                                                                    2. BP methodology
                                                                                                      1. Process Kaizen
                                                                                                    3. Process level BP Trends Methodology
                                                                                                      1. Process redesign methodology
                                                                                                        1. Five phases
                                                                                                          1. Understand the project

                                                                                                            Annotations:

                                                                                                            • Develop a project plan
                                                                                                            1. Analyse business processes

                                                                                                              Annotations:

                                                                                                              • analyse and document process
                                                                                                              1. Redesign BP

                                                                                                                Annotations:

                                                                                                                • produce a new improved process
                                                                                                                1. Implement redesigned process

                                                                                                                  Annotations:

                                                                                                                  • acquire resources and space to implement process
                                                                                                                  1. Roll out redesigned process
                                                                                                              2. Implementation level change methodologies
                                                                                                                1. Process modelling software
                                                                                                                  1. Uses software to create models which represent business processes and activities
                                                                                                                    1. DB for storing BP elements and relationships
                                                                                                                      1. Modelling essential for carrying out BP improvement
                                                                                                                        1. Allow users to pass info between about a process to other tools
                                                                                                                        2. Business Process Management Suites
                                                                                                                          1. Use to document, specify and modify BPs
                                                                                                                            1. Automate modelling, monitoring and redesign of complex processes to help achieve improvement
                                                                                                                              1. Designed to model
                                                                                                                                1. Process progress and performance
                                                                                                                                  1. Historical data
                                                                                                                                    1. Organisational roles
                                                                                                                                      1. Business rules
                                                                                                                                      2. Areas of functionality
                                                                                                                                        1. BAM
                                                                                                                                          1. Inform business of important events to its business in the IT layer
                                                                                                                                      3. ERP driven redesign
                                                                                                                                        1. Starts with solution of best breed processes
                                                                                                                                          1. Existing processes then modified to suit the best practices suggested
                                                                                                                                            1. Help with process management
                                                                                                                                        2. Major BP approaches
                                                                                                                                          1. 3 major BP approaches
                                                                                                                                            1. Information Technology tradition
                                                                                                                                              1. Software focused methodologies
                                                                                                                                                1. Either top down or bottom up
                                                                                                                                                  1. Automate processes with applications and computers
                                                                                                                                                    1. Software applications for BP management
                                                                                                                                                      1. ERP
                                                                                                                                                        1. BP modelling tools
                                                                                                                                                        2. Also fall under process re-engineering as processes are automated
                                                                                                                                                        3. Business management tradition
                                                                                                                                                          1. Aligning strategy, organising and managing employee to achieve goals
                                                                                                                                                            1. Popular when company want to undertake major changes e.g.: entering a market
                                                                                                                                                              1. A performace framework identifies 9 different things that an organisation should consider when changing processes

                                                                                                                                                                Annotations:

                                                                                                                                                                • The performance framework integrates 3 levels of concerns with three perspectives Describes what a mature organisation must muster
                                                                                                                                                                1. Improving overall organisation performance
                                                                                                                                                                  1. Top down approach
                                                                                                                                                                  2. quality control tradition
                                                                                                                                                                    1. Focuses on BP quality

                                                                                                                                                                      Annotations:

                                                                                                                                                                      • Uses six sigma and lean methodologies for process improvement
                                                                                                                                                                      1. Making incremental improvements to business activity
                                                                                                                                                                        1. Bottom down approach
                                                                                                                                                                          1. Popular when economy is weak and trying to cut expenditure
                                                                                                                                                                            1. Capability Maturity Model Integration
                                                                                                                                                                              1. Evaluates whether an organisation's processes will enable it to deliver on time and within budget
                                                                                                                                                                                1. Process improvement
                                                                                                                                                                                  1. Classify an organisation according to 5 levels

                                                                                                                                                                                    Annotations:

                                                                                                                                                                                    • initial repeatable defined managed optmising
                                                                                                                                                                                    1. Provide guidelines to address product lifecycle
                                                                                                                                                                                  2. Tendency is for all to merge into one BPM approach
                                                                                                                                                                                2. Main features/roles and processes of BPM systems
                                                                                                                                                                                  1. Main features
                                                                                                                                                                                    1. Main roles
                                                                                                                                                                                      1. Main processes
                                                                                                                                                                                      2. Technologies and applications supporting BPM
                                                                                                                                                                                        1. SOA and BPM
                                                                                                                                                                                          1. SOA can provide a framework for designing BPs, consolidating redundant processes and responding to change
                                                                                                                                                                                            1. SOA can result in a business that is more efficient and flexible
                                                                                                                                                                                            2. BPM as a service
                                                                                                                                                                                              1. BPM on the cloud and includes IaaS, PaaS and SaaS)
                                                                                                                                                                                                1. IaaS
                                                                                                                                                                                                  1. See picture above
                                                                                                                                                                                                  2. PaaS
                                                                                                                                                                                                    1. Key layer for realisation of BPM
                                                                                                                                                                                                    2. SaaS
                                                                                                                                                                                                      1. layer closest to the user
                                                                                                                                                                                                        1. Divided into application layer and software
                                                                                                                                                                                                        2. Through the 3 layered model BPM software can collect, optimise and develop info of BP
                                                                                                                                                                                                      2. Drivers and advantages
                                                                                                                                                                                                        1. Drivers of BPM
                                                                                                                                                                                                          1. Transparency
                                                                                                                                                                                                            1. Visibility into the organisations operations (how data produced and consumed along BP)
                                                                                                                                                                                                              1. Real time visibility and analysis of events ensures up to date information for decision making
                                                                                                                                                                                                              2. Quality-efficiency
                                                                                                                                                                                                                1. Quality looks at conformance to business quality standards and specifications

                                                                                                                                                                                                                  Annotations:

                                                                                                                                                                                                                  • Quality can be customer satisfaction and number of defects
                                                                                                                                                                                                                  1. BPM platforms can help reduce costs and streamline processes(automation & remove redundancies)
                                                                                                                                                                                                                    1. Improve productivity and op efficiiency (automation and removing bottlenecks)
                                                                                                                                                                                                                    2. Agility-Compliance
                                                                                                                                                                                                                      1. Helps organisations adapt to rapidly changing business environment
                                                                                                                                                                                                                        1. Compliance with process standards, corporate governance and regulatory requirements
                                                                                                                                                                                                                        2. Integration
                                                                                                                                                                                                                          1. Manage BP to minimise impact of process changes (employee resistance)
                                                                                                                                                                                                                        3. Advantages of BPM
                                                                                                                                                                                                                          1. Process automation
                                                                                                                                                                                                                            1. Competitive advantage
                                                                                                                                                                                                                              1. Measurement mechanisms
                                                                                                                                                                                                                            2. Disadvantages and challenges
                                                                                                                                                                                                                              1. Acquire required process management competancies

                                                                                                                                                                                                                                Annotations:

                                                                                                                                                                                                                                • Business strategy People and technology Governance
                                                                                                                                                                                                                                1. Challenges relate to the competancies
                                                                                                                                                                                                                                2. Management Issues
                                                                                                                                                                                                                                  1. Create and maintain BP architecture
                                                                                                                                                                                                                                    1. BP architecture enables organisations to achieve business agility
                                                                                                                                                                                                                                      1. The more up to date the architecture the more valuable the tool
                                                                                                                                                                                                                                        1. May require db or repository for maintaining info
                                                                                                                                                                                                                                        2. Identifying and prioritising scope of business change projects
                                                                                                                                                                                                                                          1. Maintaining and managing process performance
                                                                                                                                                                                                                                            1. Tracking, reporting and using measures to evaluate performance
                                                                                                                                                                                                                                            2. Support process manager
                                                                                                                                                                                                                                              1. Provide training to help with managing processes

                                                                                                                                                                                                                                                Annotations:

                                                                                                                                                                                                                                                • Six sigma training
                                                                                                                                                                                                                                              2. Managing compliance
                                                                                                                                                                                                                                              3. Key Vendors
                                                                                                                                                                                                                                                1. IBM

                                                                                                                                                                                                                                                  Annotations:

                                                                                                                                                                                                                                                  • Wide range of BPM solutions IBM has extensive skills and expertise
                                                                                                                                                                                                                                                  1. Pegasystems

                                                                                                                                                                                                                                                    Annotations:

                                                                                                                                                                                                                                                    • Deliver a solution to address specific needs Needs to be customised to meet customer needs
                                                                                                                                                                                                                                                    1. Software AG
                                                                                                                                                                                                                                                    2. Future trends
                                                                                                                                                                                                                                                      1. BI with BPM systems
                                                                                                                                                                                                                                                        1. Social networking analysis for BPM
                                                                                                                                                                                                                                                          1. Cloud Business Rule Engine services

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