Business Process Managemnet

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Transcript of Business Process Managemnet

Page 1: Business Process Managemnet

Business Process Management

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AGENDADefinition: Extending the technological

instrument to the management sphereStandardization: converting each business

activity into a circular processModeling: using the GST-based optimal model

to represent real life businessUniversal process language: GST-based

process is a global phenomenonBusiness Process management versus

business process re-engineeringBusiness process management and cybernetic

organization and management (Organizational Theory and Management Theory)2

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Business process management and first and second order cybernetic

Business process management and universal modeling language

Business process management and project management

Process management and software projects

Process management and software engineering

Process-oriented versus object-oriented

Process management and structured approach

Process management and business functions and process improvement

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PROCESS MANAGEMENT AND OBLIERATING THE Gap between ICTs and Business

Process Management Systems and Management Cybernetic in terms of execution, and action associated with process management cycle and decision taking

Process management systems and information systems in terms ERPs, CRMS, SCMS,EIS and DSS

BPM and StrategyProcess management systems and

general system theory (GST - in terms of Viability, Sustainability and Total Quality)

Emerging BPM Theory, Systems Thinking-based (GST-based)4

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BPM and change management (business and technology integration)

Process management system and the Generic Islamic Perspective and transformation and evolution of Islamic Thought (Islamic Science and technologies)

Process management systems and knowledge management

Process management systems and knowledge economy

Process as an Islamic instrument for unifying science and technologies

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Process management as a tool of intervention for Islamic Cause i.e. convergence of BPM to GST (Islamic general theory of thought and doctrine)

Process management theory and Islamic economic and activity theory

The solution of a mathematical problem is a linear process while attaining the result is one even-off. Whereas the solution of the real life business problem is a circular process.

Thus one figure at the end of the day will not solve a complex real life problem, but we need a circular process that combines and integrates figures and other characters that are eligible to solve real life business problems.

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This is why the business solutions are in the process (circular) and not associated with (linear) activities

However a process is a system and the system is a process

(various GST-based models will be reproduced to reflect the notion of the process in optimal scientific form)

Thus BPM methdology is a GST-based method to carry out the modeling activities and raise awareness's of the decisive role of BPM is managing business organizations in Sudan and beyond

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DEFINTIONSA business process is a combination of a set of activities within a enterprise with a structure describing their logical order and relationships whose objective is to produce a desired result.

Hence, BPM is a systemic approach to extend process analysis to business organizations and hence becomes a powerful tool in the hands of governments and business institutions to engineer the re-engineering process. Thus BPM is a strong and viable instrument for managing change in organizations.

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BPM has been referred to as holistic management approach to aligning an organization’s business processes with the wants and needs of clients. BPM uses a systematic approach in an attempt to continuously improve business effectiveness and efficiency while striving for innovation, flexibility, and integration with technology. It can thus be described as “ a process optimization process”.

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A business process can be decomposed into several sub-processes, which have their own attributes, but also contribute to achieving the goal of the super-process. The analysis of the business processes typically includes the mapping of processes and sub-processes down to activity level. A business process model is a model of one or more business processes, and defines the way in which operations are carried out to accomplish the intended objectives of the organization.

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Business process modeling tools provide business users with the ability to model their business processes, implement and execute those models, and refine the models based on as-executed data. As a result, business process modeling tools can provide transparency into business processes, as well as the centralization of corporate business process models and execution metrics.

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A business model, which may be considered an elaboration of a business process model, typically shows business data and business organizations as well as well as business processes. By showing business processes and their information flows a business model allows business stakeholders to define, understand, and validate their business enterprise. The data model part of the business model show how business information is stored, which is useful for developing software code. (see the systemic evolution figure). UML, RUP, DSDM

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Usually a business model is created after conducting an interview, which is part of the business analysis process

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Business models are developed as defining either the current state of the process, in which case the final product is called the “as is” snapshot model, or a concept of what the process should become, resulting in a “to be “ model. By comparing and contrasting “as is” and “to be” models the business analysts can determine if the existing business processes and information systems are sound and only needs minor modifications, or if re-engineering is required to correct problems or improve efficiency. Consequently, business process modeling and subsequent analysis can be used to fundamentally reshape the way an enterprise conducts its operations.

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BPMS encompasses the concept of supporting the managerial approach through enabling technology.

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Workflow “ A workflow is a depiction of a sequence of operations, declared as a work of a person, of a simple or complex process, of a group of persons, of an organization of staff, or of machines. Work flow can be seen as any abstraction of real work, segregated into work share, work split or other type of ordering. For control purposes, workflow may be a view of real work under a chosen aspect”. GST as a workflow theory

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BPM and Change:BPM enables organizations to be more

efficient , more effective and more capable of change than a functionally focused, traditional hierarchical management approach

BPM should facilitate change throughout the life cycle. This assist in the automation of activities, collaboration, integration with other systems, integrating partners through the value chain.

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The most important aspects of modeling BP is the philosophical and ideological shift from the object to the system i.e. from linear unspecified icons to process i.e.to the fully identified and fledge approach and hence this transformation, convergence of theory of PB will witness global consequences and detrimental impacts around the world.

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BPM a managerial approach BPM sees processes as strategic

assets of an organization that must be understood, managed, and improved to deliver value added products and services to clients. These models facilitate automation and solutions to business problems. These models can also become executable to assist in monitoring and controlling business processes. Thus BPM is the bridge between ICTs and Business. Thus, an argument can be made that this holistic approach bridges organizational and technological silos.

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BPM and Technology BPM resembles other total quality

management or continuous improvement process methodologies or approaches. So BPM goes a step further by stating that this approach can be supported, or enabled, through technology to ensure the viability of the managerial approach in times of stress and change. In fact, BPM offers an approach to integrate an organizational “change capability” that is both human and technological.

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PM and Governance Management through processes is a

management method based on two logical levels: process governance and process management. Process governance is all the company’s governance activities which, by way of allocating on the processes, work towards reaching its objectives, which are both operational and progress related. Process management is all the management activities of a given process which work towards reaching the objectives allocated for this process.

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BPM A Management Instrument BPM is often referred to as ‘Management by Business Processes’. The term business can be confusing as it is often linked with a hierarchical view (by function) of a company. It is often preferable to define BPM as “corporate management through processes” thus BPM can also be defined as a management – through- processes method which helps to improve the company’s performance in a more and more complex and ever-changing environment.

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BPM and Project Management

Projects cross organizational functional boundaries and hence they are truly processes; as they also resembles circulation in their forms and activities. Technology can be embedded and aligned to speed up the process and hence lead to optimization in the effectiveness, efficiency and total quality.

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BPM NotionInteraction and human interaction management.

Relationships between processes.Responding to changing consumer, market and regulatory demands faster than competitors.

Creating competitive advantages.BPM methodology and hence its tools allow:

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Define

Measure

Vision

Analyze

Improve

Control

Re-engineer

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BPM Life CycleBPM activities can be grouped systemically into five categories:

Design, modeling, execution, monitoring (information creation) and optimization (Creating greater business value)

Information documentation has to be generated for each function of the process cycle.

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Business Process ModelingBPM in system engineering is the

activity of representing processes of an enterprise, so that the current process may be analyzed and improved. BPM is typically performed by business analysts and managers who are seeking to improve process efficiency and quality. The process improvements identified may require information technology involvement. Business process modeling results in the improvement of the way tasks are performed by the business.

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Modeling and ChangeChange management programs are

typically involved to put the improved business processes into practice. With advances in technology, the visions of BPM modeling is coming closer to reality. For further elaborations see the figures. Thus traditional processes born out of system analysis and design as engineering tools they have to be supported by cybernetic model (circular model) to equip the approach for action. This is the core of what BPM is about; and here where all the chains of GST are unified, standardized and executed.

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ProjectFor project Management StudentsConvert the project activities into processes that

goes across the project life cycle. Show how the information generated via processes via activities is crystallized into information system that runs on a suitable software program. Show how the information system via an information process, via a software process-oriented process is delivering a proper management instrument for the project activities. Thus here you are requested to generate a ‘process’ encompassing the various activities of your project and to reflect that on reports, standard queries and other tools of the GST-oriented scientific method to organize and manage cybernetically the project processes.

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For General MBA StudentsShow how the organizational processes

that goes across the functional field’s of management activities’ that form a project of some kind can be managed via a process-oriented information system via a process-oriented software program. The philosophy behind this project is to concentrate upon the ‘process’ as the method via which management can be revolutionized. Eventually, this will raise the value of the projects concept and their managed processes as they will be standardized and universalized via GST model and hence an optimal language is obtained and attained.

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Notes for all of you Show how the concept of GST is shifted from

MIS to BPM to depict and illustrate a general language of process-oriented activities to realize the optimal goals of your project. Also show how economics and finance, accounting and purchases and logistics, marketing and sales are properly theorized, standardized, universalized and hence reflects universal processes to manage business activities in Sudan and beyond. Something which will illustrate a new strand of management that will hail management of organizations in the digital age.

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Also your project must reflect the paramount role to be played by ‘Business processes’ in Sudanese Organizations by reforming of a new age in business activities given viable systems and hence viable projects. Thus this will reflect a new management approach in Sudan that is socio-economically and technology driven and philosophically congruent and financially feasible.

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Also in your project show how GST provides the necessary, critical and missing rigor of theorizing for BPM and hence fills the gap for local and global interventions via proven credentials supplemented to Project Management.

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You also need to show how the concepts of process, organization, management, system, project, order are interchangeable instruments for strategizing, planning, organizing and hence intervening.

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You need to show how a universal process language can be universalized across universities locally, regionally and globally to render a scientifically acceptable and culturally and morally justifiable action via project processes that magnificently managed obeying a Divine Systemic order

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You need to comment upon how the business process and project concepts via GST will lead to universal value system to be enshrined in the theorization and activities in economics, business and financial institutions.

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You need to show how business process via GST will ignite the anger of the world, of how software and information systems projects are monopolized, managed and methodologically practiced.

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Your project must differentiate between two disciplines that is where the research and teaching of MIS the focus is upon the system itself, whereas in the BPM the emphasis is upon the process. However system and process are two faces of the same coin and hence complimentary. Thus where the previous course emphasizes information systems, this one shift the focal to the process. However, the two are ultimately managerially-driven, oriented and intended.

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Business Administration RethoughtThe issue is to turn the process from linear to

circularFrom correlation to complex relationships,

hence philosophy of Economics and Business and technology to convert the software process, the object, to systems and this will include all linear forms like linear programming, linear algebra, linear causality, production lines, linear regression ….etc into their circular technological counterparts

The business process is focal and basic identity of the human activity systems’ management (i.e. organizations) and hence Business Administration

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The decision making ProcessStandard reports, queries, simple

mathematical analysis, use of sensitivity analysis, full text and graphical reports

See the figure illustrating how the potential ERP system will integrate and operationalize financial activities in Sudan

Reports, reporting systems, decisions and process are science and technology are terminologies that closely associated and related and derived from GST and hence their unified objective source and epistemological origin

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Quotations that asserts GST as a theory of BPM

While each scientific theory selects out and abstracts from the world complexity a peculiar set of relations, philosophy cannot favor any particular region of human enterprise. Through conceptual experimentation it must construct a consistency that can accommodate all dimensions of experience, whether they belong to physics, physiology, psychology, biology or ethics.

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Instead of trying to reverse the natural change of command between business units and IT organizations, business process management establishes a symbiotic relationship. By delivering a common language for describing processes, third wave BPM enable business units to pull IT organist ions into the business strategy discussion, inviting them to contribute their years of experience with general system thinking to problems of business innovation

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The third wave of BPM is a powerful agent of change. When management best practices, legacy systems, best of breed software components, workflow, application integration and web services converge into a unified whole, and focused on a unified model of process, something totally new starts to happen. Using powerful process management systems, process designers are able to directly manipulate processes.

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Unlike total quality management, continuous process improvement and radical reengineering, third wave BPM is an engineering based formalism, embodied technologically in the form of a process architecture and management system. The engineering in the re-engineering movement was just a metaphor illustrating a design philosophy that lacked a concrete plan for action. BPM is its antithesis.

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The third wave of process management takes process-based methodologies out of the hand of specialists and technicians and provides business people with the tools they need to create, improve and deploy processes.

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Old rule is business-IT divide, disruption is third wave BPM and the new rule is that process owners design and deploy their own processes, obliterating, not bridging, the business-IT divide.

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Business processes are best managed as a portfolio, and high value processes will no doubt yield greater returns in investment.

Process improvement and process management now apply to all of a company’s processes. Points solutions to process components, rather than whole processes must be avoided.

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This new foundation allows businesses to implement the process system needed to manage all business processes on a continuous basis. Implementing BPM allows companies to avoid implementation of point solutions that solves only immediate points of pain in individual processes or sub-processes. Process management provides a unified foundation for the entire organization, covering its information systems, its people, and its business processes-as well as those of its trading partners.

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Systems Thinking the “core” core competencyAs W. Edwards Deming, the father of the

quality movement, pointed out, it is “the system” that is the problem. End to end business processes are dynamic systems, but today’s business professionals are generally not trained in general systems thinking. Too often constrained to a perspective limited by ingrained business practices, rigid scripts and structured input-output work, few professionals have a wide angle view of, or experience dealing with, end –to-end business processes.

The worlds of business and technology are growing more complex, and managing that complexity is the goal of system thinking.49

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Systems thinking provides a new perspective on business process analysis and redesign. It focuses on the whole, not the parts, of a complex system. It concentrates on the interfaces and boundaries of components, on their connections and arrangements, on the potential for holistic systems to achieve results that are greater than the sums of their parts. Mastering systems thinking means overcoming the major obstacles to building the process- managed enterprise – for every business process is a whole system.

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Systems thinking is a formal discipline of management science that deals with whole systems and in terms of the interconnections and interactions of their parts. But because today’s business rests on automation , practitioners of building lasting, growing, profitable businesses are going to need tools to help them take the holistic systems thinking perspective. BPM provides those tools.51

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Hands on process simulation also provides a learning tool for reinforcing systems thinking. Process designers can make assumptions about improved business processes and test those assumptions. Feedback closes the loop and facilitates learning.

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Learning become a Process-Managed Enterprise

Peter Senge, is a leading exponent of the concept of the learning organization, and author of the fifth discipline describes four other disciplines in addition to systems thinking required to build such an organization. Personal mastery, working with mental models, building shard vision and team learning.

Building a BPM competency requires three components: a sound understanding by senior managers of BPM strategic importance to the business, the setting of clear targets by strategists, defining precisely how BPM is going to be used, and the possession of appropriate skills by implementers so that they can do their work effectively and efficiently. Because these three competencies reinforce one another, they must be developed together.

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BPM PractitionerThe practitioner is given full responsibility

for assignments and is an active participant in project review activities. The practitioner will begun to consider a host of related issues, including:

1- the organizational implications of BPM2- requirement of deep integration of BPM

in existing methodologies such as six Sigma

3- the need for training and tool support4- implications for industry data and

collaboration standardization effort5- examination of the benefits to value

chain integration and adaptation54

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Getting started A company’s first BPM implementation should kick start the virtual cycle by delighting business managers, inspiring them to think of new opportunities and equipping implementers with a set of new tools and skills. The ideal inauguration project will be highly visible, address an issue of real importance to the business, hit exactly the right level of risk for the business culture, and provide a convincing demonstration that BPM can achieve what other technologies could not.55

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The Business process Modeling Language

BPML is a specification both for building process management systems and for modeling business processes. BPML provide the required abstract model for all processes, along with standards-based XML. Schema and syntax for expressing and managing business processes. BPML is the language for process management, just as XML is the language for business data and HTML is the language for hyperlinked Web pages. However, there is dearth and strategic need for a universal language of modeling and it is given by GST. 56

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BPML Definition BPML, defines just what is required to

establish standard for processes, just as the relational model define just what was required to establish standard for data. This means that BPML covers aspects such as business activities of varying complexities, business transactions and their compensation, process data management, concurrency, exception handling and operational semantics. BPML, is the language of choice for formalizing the expression, and execution, of the collaborative business interfaces. This includes the data exchange requirement and the process interface by which data is exchanged. (see page 207).57

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A Universal Process languageRather than trying to provide different

solutions for each industry, the BPML group designed BPML, to adapt to and amplify a variety of standards; and be adapted for use by businesses within those sectors. BPML unifies the semantic of a number of different approaches to process definition, making possible the implementation of a universal virtual system language that can execute, literally, any business process. This is where GST intervenes as the optimal and universal process language. And here is the Islamic purpose, goal, mission and end of history dictated by the ISLAMIC Doctrine.58

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A Foundation for Collaborative Commerce

A business process involves two or more business partners. Each partner brings many “process participants” to the table, usually comprising the partner’s back-office systems, e-business applications, employee interactions and other third party elements. The process systems deployed within, or extended towards, each partner will be responsible for the management for that partner’s process participants. Thus the process management system can be seen as a gateway – a process level firewall – connecting business partners that each have their own process management system or systems. 59

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The business process Management systems

BPMS enables companies to model, deploy and manage mission critical business processes, that span multiple enterprise applications, corporate departments, and business partners – behind the firewall and over the internet. The PBMS is a new category of software and opens a new era of IT infrastructure and architecture.

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Process management is going to be a rich source of innovative new approaches for all supplies of enterprise software, in both horizontal and vertical industry solutions. Why do we make this claim? Simply because the mark of the third wave is far more than a new software package, it is the far reaching shift in business-IT thinking towards “all things process” becoming the central focus of attention – for all packages. The next fifty years of IT will be dominated by not separate data, application, document and business object paradigms, but by living, breathing holistic processes. Thus religion, science and technology evolves: Thus Management is defined as an on-going ‘process’ of reality creation and creativity in evolutionary context

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Beyond compliance with complex technical requirements, the business process management system must provide the foundation for straight-through process integration methodology. The BPMS must integrate with the existing IT systems so that the enterprise can leverage its previous investments while retaining the ability to innovate rapidly in the area of process design.

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Business analysts and system administrators can begin to manage business processes with system management tools using standard business process query languages. Process management offers a clean approach to the division of responsibilities between business and IT in the management in the process-centric enterprise infrastructure.

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Process management and the IT industry

Software companies that develop and sell enterprise packages want new ways to customize their products. Process management is the answer. A wave of new “process software” built on the foundation of the BPM, will emerge. The introduction of the business process management system will lead to pervasive yet evolutionary changes in the corporate IT infrastructure. First, new packaged enterprise applications will leverage the BPMS as a mission critical process execution facility. 64

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Second, the BPMS will as a business firewall federating multiple directory services across the enterprise-the foundation for future enterprise-process repositories. Third, the PBMS will be tied to future process-analysis servers-the corner stone of the next generation of business process-intelligence technologies. As a result, the BPMS will become the center of gravity of the modern enterprise architecture.

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Changing the process of change While a self-organizing system openness to

new forms and new environments might seem to make it too fluid, spineless, and hard to define, this is not the case. Though flexible, a self-organizing structure (GST) is no more passive reactor to external fluctuations. As it matures and stabilizes, it becomes more efficient in the use of its resources and better able to exist within its environment. It establishes a basic structure (GST) that supports the development of the system. This structure (GST) then facilitates an insulation from the environment that protects the system from constant, reactive changes.66

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“To execute strategy is to execute change at all levels of the organization. Seems self-evident, but overlooking this truth is one of the greatest causes of a failed transformation effort.” Whatever we use to call the “change process” –reengineering, six sigma, change management, innovation- it changes over time and those changes need to be managed, just as it exerts control over the processes it seeks to improve or introduce. Any theory of process management (GST) must recognize this and break down distinctions between the process of change, the process under change and change in both.67

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modeling

execution

monitoring

optimization

design

BPM life Cycle

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methodolog

y

philosophy

theory

Reality (Busin

ess Processes)

Ideology

BPM Methodology and its Philosophical

Underpinnings

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model

theory

methodology

information

knowledge

BPM and its Scientific Model Roots and

Dimensions

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Design

Maintenance

Implementa

tion

Coding and

testing

Analysis

BPM and its Scientific Model and IS

Development Life Cycle

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Decision

taking

organizing

Co-coordinating

controlling

planning

BPM and its scientific management process

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choice

Implementa

tion

Evaluation

Design

Intelligence

BPM and its scientific Decision Making

‘Process’

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B.process

B. Information

B. activiti

es

B. Functions

B. Roles

The Emerging BPM Theory

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B.M of Financ

e

B. Of Sudan

B. Statist

ics

B. Taxations

Tariff

Management of Economic Activities Via B.

Processes

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process

control

output

storage

input

BPM and the Computer Model and the

Entanglement of Systemic Scientific

Models and Processes

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B.process

B Model

B. Analys

is

BPR

B.Intelligenc

e

The Business Administration

Burgeoning Model and Technology

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Information systems

operations

purchases

Accounting and

finance

Sales and

marketing

BPM and its Scientific Business Processes

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Planning and

Organizing

Close-out

Controlling

Implementa

tion

Initiation

BPM and its Scientific Project Processes

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A Unified Systemic Evolutionary Approach for Technological and Business Processes

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Community

S.

Economic S.

Political S.

Social S.

Psychological S.

BPM and the Welfare System in Sudan (BPM as A Holistic Management

Approach)

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Social S.

Monetary S.

Financial S.

Economic S.

Political S.

BPM and the Malfunctioning of the European Union: The

Holistic View

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Model

knowledge

information

method

science

BPM and the functioning of the Knowledge

Economy

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