Post on 08-Jun-2015
description
Creating Modern Business Process Driven Applicationswith BPM
Carl LehmannResearch Manager | 451 Research | Boston, Massachusetts
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About
One company with 3 operating divisions
Syndicated research, advisory, professional services, datacenter certification, and events
Global focus
200+ staff 1,300+ client organizations:
enterprises, vendors, service providers, and investment firms
Organic and growth through acquisition
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Applications are changing
What’s the difference?
From task driven … …to process driven
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Applications are changing
What’s the difference?• Rules, policies• Decisions• Options• Metrics• Customization• Adaptability• Complexity
From task driven … …to process driven
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Applications are changing
From task driven … …to process driven
What’s the difference?• Rules, policies• Decisions• Options• Metrics• Customization• Adaptability• Complexity
And because that’s the way thecustomer wants to do business!
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Creating Process Driven Applications with BPM
How BPM suites became recognized as
business problem solvers
Anatomy of a business process application
The critical componentry of BPM suites
How to analyze, change and manage
business processes and create business
process applications
Conclusion: Creating Process Driven
Applications with BPM
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Creating Process Driven Applications with BPM
How BPM suites became recognized as
business problem solvers
Anatomy of a business process application
The critical componentry of BPM suites
How to analyze, change and manage
business processes and create business
process applications
Conclusion: Creating Process Driven
Applications with BPM
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How BPM gets started
A problem that IT can’t fix No time, no resources, too costly
Group leaders look elsewhere for: Process improvement Ways to do more with less Ways to manage compliance Process standardization across
departments, groups, regions, etc. Improved visibility Quick changes, at less cost
Hey! BPM solves problems! Let’s do more!
BPM suites are becoming next generation AppDev and DevOp platforms
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Misconceptions about BPM…• A methodology• A cost cutting initiative• New technologies
BPM is a managerial discipline focused on execution, adaptation and consistent performance
Processes are assets and must be managed as such A new definition emerges…
• Process – an asset of execution that affects the quality of a product, service or brand to uniquely satisfy customer needs and differentiates its executor from competitors
BPM requires transaction-oriented software applications to yield to business process applications
How to think about BPM, processes and applications
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Creating Process Driven Applications with BPM
How BPM suites became recognized as
business problem solvers
Anatomy of a business process application
The critical componentry of BPM suites
How to analyze, change and manage
business processes and create business
process applications
Conclusion: Creating Process Driven
Applications with BPM
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What is a business process application?
The system created after careful design, analysis and redesign of a complex set of activities that manage resources required to achieve a business objective. It enables stakeholder collaboration, governs execution through polices and rules, and measures the achievement of specific performance, compliance and outcomes.
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In other words…
A business process application turns this...
Into something like this…
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In other words…
Or this...
Into something like this…
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1. Capture/manage data, content, activities, tasks and workflow2. Create/manage roles3. Capture KPI set(s), policies, business rules, performance threshold(s),
compliance4. Assemble/aggregate information from distributed disparate sources,
internal and external5. Execute work, monitor events, states, sense variation and trends6. Alert relevant systems and stakeholders (role based)7. Interpret information (exceptions, resolutions, cases) based on strategic
objectives, performance measures and rules of engagement8. Negotiate (adapt) and record commitments based on roles,
empowerment, motivation, accountability, responsibility9. Disseminate information to all relevant systems and stakeholders10. Track and report commitments and results against KPI Set(s) and strategic
objectives
Anatomy of a business process application
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Creating Process Driven Applications with BPM
How BPM suites became recognized as
business problem solvers
Anatomy of a business process application
The critical componentry of BPM suites
How to analyze, change and manage
business processes and create business
process applications
Conclusion: Creating Process Driven
Applications with BPM
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Components of a BPM suite
Process design,modeling and simulation
Connect, integrate
Application developmentUser experience
User accessTask management Test, execute, monitor
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1. A modeling environment for process design, collaboration, analysis and simulation
2. Business rules management to define KPIs, ‘controls’ and ‘bounds’ necessary to assure compliance
3. A process engine to orchestrate structured processes and unstructured cases
4. Integration technology for resource connectivity (internal and external)5. Data and content management for capture, quality management and
context and role-based sensitive controls6. Stakeholder user experience to enable people to execute processes7. Operational intelligence for real-time monitoring of process execution, KPI
management and rules compliance8. Business analytics for decision support and decision automation
(predictive analytics)9. An administration console for system monitoring and control10. A repository for models, data, content, metadata, registry and reuse
Components of a BPM suite
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How is a BPM suite used?
Source: Adapted from the Value Stream Group
Strategic Level Objectives and Organization
Traditionaltransaction-oriented
application architecture
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How is a BPM suite used?
Traditionaltransaction-oriented
application architecture
BPM suiteprocess-oriented
application capability
Source: Adapted from the Value Stream Group
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How is a BPM suite used?
Strategic Level Objectives and Organization
Traditionaltransaction-oriented
application architecture
BPM suiteprocess-oriented
application capability
The link betweenstrategy and execution
Enterprisearchitecture
management
Source: Adapted from the Value Stream Group
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Creating Process Driven Applications with BPM
How BPM suites became recognized as
business problem solvers
Anatomy of a business process application
The critical componentry of BPM suites
How to analyze, change and manage
business processes and create business
process applications
Conclusion: Creating Process Driven
Applications with BPM
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A Problem
A Strategic Initiative Continuous Transformation
BPM
• Strategy and KPI Set• Process team• Process selection• Methodology• Modeling and simulation• Implementation and control
• Strategy and KPI Set(s)• Program and BPM team(s)• Process set• Methodology(ies?), PMO?• Redesigns and new designs• Modeling and simulations• Execute, manage and control
• Strategy and KPI Sets• Center of Excellence (BPM Teams)• Process portfolio and audit• Multiple methodologies, PMO• Multiple tools• Governance• Continuous improvement
Business ProcessPortfolio Management
Motivations and approaches for BPM
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Example of a cross-functional process model
Source: ABPMP Chicago Speaker Series - The Process Enterprise: How Process Transformation Changes the Business.Tom Coleman Chief Information and Process Officer for Sloan Valve Company, 10/2009
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The Process Audit • Enterprise capabilities
• Leadership, Culture, Expertise, Governance
• Process enablers• Design, Performers, Owner, Infrastructure, Metrics
How to assess process management maturity
Source: Software Engineering Institute, Carnegie Mellon
Source: The Process Audit, Michael Hammer, Harvard Business School Publishing
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CRITERIA DESCRIPTION (Qualitative Assessment)
1. Value Core, Secondary, Low, Outsourced, Not Applicable
2. Asset type Operating, Support, Management, Exception Control, Resolution Control
3. Use Routine, Periodic, Occasional, Not Used, Unknown, New
4. Complexity Simple, Low, Moderate, Complex, Highly Complex
5. Discipline Formal, Informal, Rely on 3rd Party
6. Automation Manual, Semi-automated, Fully-automated, Rely on 3rd Party
7. Documentation Detailed, Satisfactory, Unsatisfactory, Undocumented, Rely on 3rd Party
8. Training Sufficient, Insufficient, Not Available, Not Necessary, Rely on 3rd Party
9. Effectiveness Very Effective, Effective, Adequate, Not Very Effective, Not At All Effective
10. Efficiency Very Efficient, Efficient, Adequate, Not Very Efficient, Not At All Efficient
Action Improve, Consolidate, Eliminate, Benchmark, Re-evaluate, Design, Outsource, Insource, None
Timing Immediately, Near-Term, Long-Term, Unspecified
Source: BPMethods
How to inventory processes and evaluate quality Use a classification model to ‘take stock’ of processes Create evaluation criteria
• Used by management teams for qualitative evaluation, example criteria…
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Identify process components (Process Components Model)
4. What value is created?
3. What governs execution and value creation?
2. What is needed to execute and create value?
Process Design“How”
1. What is neededto begin?
How to document and model processes
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Select KPI Set(s) – Balanced Scorecard meets Six Sigma
Source: Strategy and Business Process Management, Taylor & Francis 2012
How to measure performance
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Create project: select artifact set, elicitation techniques, analytic techniques (e.g. Lean, Six Sigma, etc.), requirements management tools
Skills include project management and business analysisSource: Corporate Education Group
How to improve processes
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Can your in-place systems support process change?
Perform an IT readiness assessment• Determine the effort, time, resources and costs required to adapt in-place IT
systems to support process change – prior to engagement• Understand capabilities and limitations of IT systems• Capture baseline data for ROI analysis• Test feasibility and accurately determine financial returns• Helps justify IT investment if needed
For example, what effort, time, resources and costs are required to...
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Can your in-place systems support process change?
Perform an IT readiness assessment• Determine the effort, time, resources and costs required to adapt in-place IT
systems to support process change – prior to engagement• Understand capabilities and limitations of IT systems• Capture baseline data for ROI analysis• Test feasibility and accurately determines financial returns• Helps justify IT investment if needed
For example, what effort, time, resources and costs are required to...• Install and configure the software• Populate it with data• Assure data accuracy and reliability• Integrate with other systems or applications,
internal and external• Allow or restrict access by other applications
or users based on role• Securely extend access via loud, wireless,
mobile, other
• Design and route workflow• Generate or limit access to data, reports• Establish and track key performance indicators• Define threshold levels of performance• Configure messaging and alerts• Structure reports• Perform ad-hoc analysis• Reconfigure all of the above when change occurs
If in-place systems and resources cost too much then it’s time to consider a BPM suite
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Creating Process Driven Applications with BPM
How BPM suites became recognized as
business problem solvers
Anatomy of a business process application
The critical componentry of BPM suites
How to analyze, change and manage
business processes and create business
process applications
Conclusion: Creating Process Driven
Applications with BPM
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Conclusion: Creating Process Driven Applications with BPM
Applications are changing from task-driven to process-driven
BPM is a managerial discipline focused on execution, performance and outcomes
BPM suites have become recognized as problem solving technology and are evolving to become next generation AppDev and DevOp platforms
Transaction-oriented software applications will yield to business process applications
Processes should be managed as strategic assets or they will become liabilities
Consider a formal audit and inventory approach to continuous process management
Emphasize KPI sets as a performance management system for process execution
Assess readiness of in-place IT to establish baseline justification for change
Initiate BPM as a strategic business and IT initiative
Questions? Comments?
Carl LehmannResearch Manager451 ResearchBoston, Massachusettscarl.lehmann@451research.comDesk: +1.781.319.0599