BPM - created from Mind Map

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BPM aims to continually improve and analyse existing business activities

BPM is about improving efficiency, flexibility and effectivenss to respond to change

Business process

A set of related business activities that when performed result in an outcome of value to the customers and organisation

Components of BP

Types of business processes

Management Process

Operation process

Information process

External parties

Authority, people and policies responsible for controlling operations

People and processes which objective is to perform operations

Collect and store data to provide useful information to users

The first three components help to conduct business with external parties

Individual Processes

Vertical/functional processes

Horizontal/Cross functional processes

Carried out by individuals

Within a business functional unit

Cut across business functional units and sometimes companies

BPM, BP improvement and re-egineering

Enterprise level change methodologies

BP process level change methodologies

Implementation level change methodologies

Ensure all BPs making up a value chain are well integrated

Methodologies

Balanced Scorecards

Enterprise BP trends methodology

Used to align corporate goals and strategies

Management tracks four different perspectives

Objectives will be determined in terms of each perspective

Managers assigned a scorecard with objectives in each perspective

Balanced scorecard strategy map (refer to figure)

Financial

Customer

Process

Learning and growth

Strategy map divides corporate strategy into 5 themes

Increase return on capital

Improve operating quality and efficiency

Grow high value customer relationshipos

Accelerate product innovation

create high performance culture

Covers enterprise and process levels

Concerned with creating tools that an enterprise can use to organise and manage BP

Phases

Understand enterprise context

Define BP architecture

Define process governance

Day-to-day management of BPs

BPR

Six Sigma

Lean

Process level BP Trends Methodology

Redesigning BP to gain improvements such as cost reductions, speed and service

Obliterate rather than automate

Complete redesign of business processes to achieve improvements

Use of IT in redesigning and automating processes

Designing entire process from scratch using latest technology

Now replaced by BP redesign and BP improvement

Aims to reduce process variation as much as possibler

BPI project organised around a five phase approach (DMAIC)

Improving consistency and quality of process output

Define

Measure

Analyse

Improve

Control

Improving flow of activities and reducing cost of a process by removing waste

Uses proven tools and techniques

Concerned with process redesign and improvement (enterprise and BP level)

Enterprise methodology

BP methodology

Flow Kaizen

Process Kaizen

Process redesign methodology

Five phases

Understand the project

Analyse business processes

Redesign BP

Implement redesigned process

Roll out redesigned process

Process modelling software

Business Process Management Suites

ERP driven redesign

Uses software to create models which represent business processes and activities

DB for storing BP elements and relationships

Modelling essential for carrying out BP improvement

Allow users to pass info between about a process to other tools

Use to document, specify and modify BPs

Automate modelling, monitoring and redesign of complex processes to help achieve improvement

Designed to model

Areas of functionality

Process progress and performance

Historical data

Organisational roles

Business rules

BAM

Inform business of important events to its business in the IT layer

Starts with solution of best breed processes

Existing processes then modified to suit the best practices suggested

Help with process management

Major BP approaches

3 major BP approaches

Information Technology tradition

Business management tradition

quality control tradition

Tendency is for all to merge into one BPM approach

Software focused methodologies

Either top down or bottom up

Automate processes with applications and computers

Software applications for BP management

Also fall under process re-engineering as processes are automated

ERP

BP modelling tools

Aligning strategy, organising and managing employee to achieve goals

Popular when company want to undertake major changes e.g.: entering a market

A performace framework identifies 9 different things that an organisation should consider when changing processes

Improving overall organisation performance

Top down approach

Focuses on BP quality

Making incremental improvements to business activity

Bottom down approach

Popular when economy is weak and trying to cut expenditure

Capability Maturity Model Integration

Evaluates whether an organisation's processes will enable it to deliver on time and within budget

Process improvement

Classify an organisation according to 5 levels

Provide guidelines to address product lifecycle

Main features/roles and processes of BPM systems

Main features

Main roles

Main processes

Technologies and applications supporting BPM

SOA and BPM

BPM as a service

SOA can provide a framework for designing BPs, consolidating redundant processes and responding to change

SOA can result in a business that is more efficient and flexible

BPM on the cloud and includes IaaS, PaaS and SaaS)

IaaS

PaaS

SaaS

Through the 3 layered model BPM software can collect, optimise and develop info of BP

See picture above

Key layer for realisation of BPM

layer closest to the user

Divided into application layer and software

Drivers and advantages

Drivers of BPM

Advantages of BPM

Transparency

Quality-efficiency

Agility-Compliance

Integration

Visibility into the organisations operations (how data produced and consumed along BP)

Real time visibility and analysis of events ensures up to date information for decision making

Quality looks at conformance to business quality standards and specifications

BPM platforms can help reduce costs and streamline processes(automation & remove redundancies)

Improve productivity and op efficiiency (automation and removing bottlenecks)

Helps organisations adapt to rapidly changing business environment

Compliance with process standards, corporate governance and regulatory requirements

Manage BP to minimise impact of process changes (employee resistance)

Process automation

Competitive advantage

Measurement mechanisms

Disadvantages and challenges

Acquire required process management competancies

Challenges relate to the competancies

Management Issues

Create and maintain BP architecture

Identifying and prioritising scope of business change projects

Maintaining and managing process performance

Support process manager

Managing compliance

BP architecture enables organisations to achieve business agility

The more up to date the architecture the more valuable the tool

May require db or repository for maintaining info

Tracking, reporting and using measures to evaluate performance

Provide training to help with managing processes

Key Vendors

IBM

Pegasystems

Software AG

Future trends

BI with BPM systems

Social networking analysis for BPM

Cloud Business Rule Engine services

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Identify strategic goals and value chain processes

Model processes

Creating a BP architecture for a value chain

Develop plan to manage BPs

Create a BPM group to help management monitor processes

Ongoing maintenance and use of tools created

Define customer requirements

Charter detailing what the team must achieve and the process to be improved

Team defines measures to determine how well the requirements are met by each process

Measures such as input from suppliers, costs and customer satisfaction

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

Coming up with ways to improve the process

Plan to maintain gains and continually improving

Develop a project plan

analyse and document process

produce a new improved process

acquire resources and space to implement process

The performance framework integrates 3 levels of concerns with three perspectives

Describes what a mature organisation must muster

Uses six sigma and lean methodologies for process improvement

initial

repeatable

defined

managed

optmising

Quality can be customer satisfaction and number of defects

Business strategy

People and technology

Governance

Six sigma training

Wide range of BPM solutions

IBM has extensive skills and expertise

Deliver a solution to address specific needs

Needs to be customised to meet customer needs

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BPM

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