Creating Modern Business Process Driven Applications with BPM

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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What’s the difference?• Rules, policies• Decisions• Options• Metrics• Customization• Adaptability• Complexity


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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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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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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.

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=8sScsEtJ2fj9xM&tbnid=VUzsnam5yk_bJM:&ved=0CAUQjRw&url=http://www.selectspecs.com/blog/top-9-cartoon-characters-with-glasses/&ei=ypkiUZiBFqjJ0QHu9oCgCA&bvm=bv.42553238,d.dmQ&psig=AFQjCNHb8yFUlxAquPuepe6PeYfWYlhfFw&ust=1361308266286307

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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


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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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BPM suiteprocess-oriented

application capability


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Strategic Level Objectives and Organization



BPM suiteprocess-oriented

application capability

The link betweenstrategy and execution

Enterprisearchitecture

management


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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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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, [email protected]: +1.781.319.0599

mailto:[email protected]

Creating Modern Business Process Driven Applications with BPM

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