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BPM Techniques and Tools: A Quick Tour of the BPM Lifecycle
The document provides a comprehensive overview of Business Process Management (BPM), highlighting its lifecycle, which includes process identification, redesign, implementation, and monitoring aimed at enhancing organizational performance. It details techniques and tools used for analyzing and improving business processes, emphasizing concepts such as process architecture and the values of BPM. Additionally, it outlines various analysis methods and redesign styles to optimize process efficiency and adaptability.
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Overview of BPM techniques and tools presented by Marlon Dumas from the University of Tartu.
BPM is a framework for analyzing, redesigning, executing, and monitoring processes to enhance performance.
Rummler's framework describes various organizational performance factors including financial, human, and technology.
Seven key values of BPM include efficiency, compliance, transparency, and integration, supporting business performance.
Illustrates the BPM lifecycle stages including process identification, analysis, redesign, and monitoring.
Identifying and prioritizing business processes to maximize BPM initiative value and gain a comprehensive overview.
Involves designating and prioritizing main processes to establish a clear process architecture.
Identifies three core processes essential for business operations: selling, delivering, and supply chain management.
Porter's framework outlines core, management, and support processes, essential for efficient operations.
Example outlining various processes in a business's operational framework, detailing core and support processes.
Discusses horizontal, vertical, and specialization scoping to understand interdependencies in process architecture.
Horizontal scoping focused on value chains and how core processes deliver value to customers.
Vertical scoping illustrates the hierarchical structure of processes from main deliverables to subprocesses.
Ratings and priority of processes within a financial institution's operations based on strategic relevance.
Reiteration of the BPM lifecycle stages, emphasizing insights on weaknesses and redesigning processes.
Introduces BPMN and DMN, highlighting tools for modeling and quality assurance in BPM.
Various techniques such as interviews, document analysis and workshops for effective process discovery.
Illustrative model showing invoice processing within a finance department, demonstrating key BPM elements.
Summary of BPM lifecycle stages, focused on gaining insights and ensuring process efficacy.
Various techniques including Lean, Six Sigma, and SWOT analysis for effective business process analysis.
Revisit stages of BPM lifecycle with a focus on continuous performance monitoring and improvement.
Differentiates transactional and transformational redesign approaches for effective process improvement.
Key principles of BPR that focus on information handling and process optimization.
Heuristics for redesigning processes include task-level adjustments and resource optimization strategies.
Reiteration of BPM lifecycle emphasizing critical redesign and monitoring stages for continuous improvement.
Discusses strategies for automating processes, change management, and performance management.
Final synthesis of BPM lifecycle emphasizing consistency and continuous performance enhancements.
Tools such as dashboards and reports for tracking process performance metrics.
Introduction to process mining for discovering insights and ensuring compliance within business operations.
Evolution of BPM practices highlighting key trends and future challenges in the field.
Emerging BPM trends such as digital transformation, customer intimacy, and agility in business processes.
Opportunity to register for a course on BPM starting October 2016.
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BPM Techniques and Tools: A Quick Tour of the BPM Lifecycle
- 1. BPM Techniques andTools A Quick 360° Tour of the BPM Lifecycle Marlon Dumas University of Tartu [email protected] 1
- 2. Body of principles,methods and tools to • analyze, • (re-)design, • execute and • monitor business processes, with the aim of improving their performance. What is BPM?
- 3. Improving Performance (Rummler’sFramework) Financial Human Resources Technology Economy CultureRegulatory Organisation Performance ManagementPerformance Planning Function A Function B Function C Assets & Resources Business Environment Stakeholders Customers Materials Competitors Business Process Business Process Business Process Value 3
- 4. Efficiency Integration Compliance Internal Quality Networking Agility External The SevenValues of BPM – Rosemann et al. 2011 Transparency M. Rosemann et al., “Value-Driven BPM: Which Values Matter for BPM?”, 2011
- 5. The BPM lifecycle Process identification Conformanceand performance insights Conformance and performance insights Process monitoring and controlling Executable process model Executable process model Process implementation To-be process model To-be process model Process analysis As-is process model As-is process model Process discovery Process architectureProcess architecture Process redesign Insights on weaknesses and their impact Insights on weaknesses and their impact 5
- 6. What? 1. Identify anorganization’s business processes 2. Prioritize their management based on certain criteria Why? 1. Get a broad picture of processes in the org and relations 2. Maximize value of BPM initiatives Process Identification
- 7. 1. Designation • Enumeratemain processes • Determine process scope 2. Prioritization Process Identification After Davenport (1993) Process Architecture Prioritized Process Portfolio
- 8. Process Enumeration “Most businesseshave just three core processes: 1. Sell stuff 2. Deliver stuff 3. Making sure you have stuff to sell and deliver” Geary Rummler
- 9. Porter: Components ofa process architecture Core Processes Management Processes Suppliers/Partners Customers/Stakeholders Support Processes After Michael Porter (1985)
- 10. Strategic Management Logistics Management Warehouse Management Suppliers Management Management processes Finance Indirect procurement IT HR Coreprocesses Support processes Wholesaler Example: Process Landscape Demand Management Sales Direct procurement Distribution ServiceMarketing
- 11. Process Scoping Processes areinterdependent insights into interrelations required • Horizontal: upstream – downstream processes • Vertical: main processes – sub-processes • Specialization: general – special product/service Process architecture
- 12. • Chain ofcore processes an organization performs to deliver value to customers and stakeholders Horizontal Scoping: Value Chains Procure-to-service
- 13. Vertical Scoping: ProcessHierarchies Processhierarchy Level 1 Process Landscape Level 2 Main Processes (e.g. BPMN) Level 3+ Subprocesses, Tasks (e.g. BPMN) Transparency
- 14. Financial institution Example: PrioritizedProcess Landscape Health High Low GoodPoor Short-term action Rating Contract preparation Loan market evaluation Handling of payments Loan application Loan planning Loan controlling Loan decision Feasibility Low High Medium Possible Strategic fit? Transparency
- 15. The BPM Lifecycle Process identification Conformanceand performance insights Conformance and performance insights Process monitoring and controlling Executable process model Executable process model Process implementation To-be process model To-be process model Process analysis As-is process model As-is process model Process discovery Process architectureProcess architecture Process redesign Insights on weaknesses and their impact Insights on weaknesses and their impact 15
- 16. Modeling notations BPMN DMN Tools Syntax &style checking Model repository management Dictionary & ontologies Process Discovery 16
- 17. Discovery techniques Interviews, walkthroughs Observation Document analysis,automated process discovery Workshops (e.g. sticky-notes) Modeling guidelines and quality frameworks 7PMG Silver’s BPMN style guidelines SEQUAL framework Process Discovery 17
- 18. Business process model ERP SeniorFinance Officer Finance Department Check Invoice Mismatches Enter Invoice Details mismatch exists no mismatches Block Invoice Invoice received Invoice posted Post Invoice Invoice blocked Invoice InvoiceReport InvoiceInvoice DB 18 Transparency
- 19. The BPM lifecycle Process identification Conformanceand performance insights Conformance and performance insights Process monitoring and controlling Executable process model Executable process model Process implementation To-be process model To-be process model Process analysis As-is process model As-is process model Process discovery Process architectureProcess architecture Process redesign Insights on weaknesses and their impact Insights on weaknesses and their impact 19
- 20. Process analysis techniques Lean Waste analysis Sixbig losses Bottleneck analysis Six Sigma Value- added analysis Root- cause analysis Pareto analysis Business Analysis SWOT Stakeholder analysis Issue Register Operations Mgnt. Flow Analysis Queuing Analysis Simulation Quality Efficiency
- 21. The BPM lifecycle Process identification Conformanceand performance insights Conformance and performance insights Process monitoring and controlling Executable process model Executable process model Process implementation To-be process model To-be process model Process analysis As-is process model As-is process model Process discovery Process architectureProcess architecture Process redesign Insights on weaknesses and their impact Insights on weaknesses and their impact 21
- 22. Transactional Redesign • Doesn’tput into question the current process structure • Seeks to identify problems and resolve them incrementally, one step at a time • E.g. Business Process Reengineering (BPR) Transformational Redesign • Puts into question the fundamental assumptions and principles of the existing process structure • Aims to radically change the process structure • E.g. Heuristic process redesign Process Redesign Styles
- 23. Capture information onceand at the source Subsume information-processing work into the real work that produces the information Have those who use the output of the process drive the process Put the decision point where the work is performed, and build control into the process … Business Process Reengineering (Hammer) 23 Quality Efficiency
- 24. • Task elimination •Task composition/decomposition • Triage Task-level • Re-sequencing • Parallelism enhancement Flow-level • Specialization & standardization • Resource optimization • Communication optimization • Automation Process-level Redesign heuristics (Reijers et al.) 24 Cost Quality Time FlexibilityQuality Efficiency Agility
- 25. The BPM lifecycle Process identification Conformanceand performance insights Conformance and performance insights Process monitoring and controlling Executable process model Executable process model Process implementation To-be process model To-be process model Process analysis As-is process model As-is process model Process discovery Process architectureProcess architecture Process redesign Insights on weaknesses and their impact Insights on weaknesses and their impact 25
- 26. Process automation Executable process design BPMS Implementation Enterprise system configuration API Design... Processchange management Job redesign Change resistance Performance management planning Training…. Process implementation 26 Quality Efficiency Compliance Transparency Integration
- 27. The BPM lifecycle Process identification Conformanceand performance insights Conformance and performance insights Process monitoring and controlling Executable process model Executable process model Process implementation To-be process model To-be process model Process analysis As-is process model As-is process model Process discovery Process architectureProcess architecture Process redesign Insights on weaknesses and their impact Insights on weaknesses and their impact 27
- 28. Process monitoring Dashboards &Reports Process MiningEvent stream DB 28
- 29. Process Mining 29 / event log discoveredmodel Discovery Conformance Deviance Difference diagnostics Performance input model Enhanced model event log’ Quality Efficiency Compliance Transparency
- 30. Efficiency Integration Compliance Internal Quality Networking Agility External Quo Vadis Transparency M.Rosemann et al., “Value-Driven BPM: Which Values Matter for BPM?”, 2011 1980-… TQM Six Sigma 1980… BPR Lean 2000… ISO 9001 Sarbanes-Oxley 1990… Workflow Mngt. SOA RPA 2000-… BPO Open Innovation Customer Journey 2010-… Case Mgnt. Digital Transf. Vertical Integration 1990-… Process Modeling Decision Modeling Customer Journey Mapping
- 31. Networking Customer intimacyCustomer journey analysis Privacy, trust, integrity Blockchain Agility / adaptability Vertical integration Integrated product & process management Offline-to-online integration Digital transformation Rapid lifecycle iteration NESST Personalized conversations Predictive BPM Challenges & Opportunities 31
- 32. Want to knowmore? Starts 10 October 2016 Register at: http://moocs.qut.edu.au