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Business Process Management
Business Velocity Consulting
22nd Jun 2012
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• Business Goals, Objectives• Business Process Concepts and Fundamentals• BPM Concepts and Fundamentals• Business Modeling• Business Process Modeling• Business Processes and IT Processes• Business Architecture / IT Architecture Alignment•
Using BPM Discipline with Six Sigma & LeanMethodologies• Process Quality, Governance, and Metrics Frameworks• Business Process Governance & Centers of Excellence
Agenda
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Introduction
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Tasks that human beings Perform?
Walking
Reading
Talking
Eating
Breathing
Seeing
Hearing
Swallowing
Cooking
PaintingCoding
Playing
Critical, Fairly complex tasks performedwithout actually thinking about them
Deliberate tasks that require someconcentration and adaptation but quicklybecome second nature
Distinguishing capabilities – hard for thenovice but an expert can perform these withfair amount of ease
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• Companies are not blessed with theequivalent of a human brain whichcoordinates all of a person’s activities.
• Human Resources should limit the time theyspend on what should be routine activities.
• Focus attention on higher-order processes –
respond to new business opportunities,develop new products et al.
Tasks that Companies Perform..
How ?
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BPM – Business ProcessManagement
•
What is Business? Refers to individuals, interacting together, to perform a set of activities to delivervalue to customers and a return on investment to the stakeholders.
• What is Business Process?
End-to-end work which delivers value to customers.• What is Business Process Management?
“Business Process Management” (BPM) is a disciplined approach to identify, design,execute, document, measure, monitor, and control both automated and non-automated business processes to achieve consistent, targeted results aligned with anorganization’s strategic goals .BPM enables an enterprise to align its business processes to its business strategy,leading to effective overall company performance through improvements of specificwork activities either within a specific department, across the enterprise, orbetween organizations.
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Agile
Exceptional
Adaptable
Result-oriented
Strong Physique
B
P
M
B
B
ecome the
olt of your
usiness
Repeatability
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Business Goals, Objectives
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Business Goal, ObjectivesA cornerstone of successful organization has to be• The enterprise’s aspirations (its Vision) and• its action plans for how to realize them (its Mission)
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Strategy
Projectmanagement Marketing Staffing Finance Sales Production Customer
Service
Functions in a Business
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Business Process Concepts
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Overview of BPM• What is Business?
Refers to individuals, interacting together, to perform a set of activities to delivervalue to customers and a return on investment to the stakeholders.
• What is Business Process?
End-to-end work which delivers value to customers.• What is Business Process Management?
“Business Process Management” (BPM) is a disciplined approach to identify, design,execute, document, measure, monitor, and control both automated and non-automated business processes to achieve consistent, targeted results aligned with anorganization’s strategic goals .BPM enables an enterprise to align its business processes to its business strategy,leading to effective overall company performance through improvements of specificwork activities either within a specific department, across the enterprise, orbetween organizations.
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BPM Concepts andFundamentals
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BPM in the Industry Todayhttp://www.gartner.com/it/page.jsp?id=1530114 *IMPORTANThttp://www.information-age.com/channels/development-and-integration/p erspectives-and-trends/1643218/bpm-spending-to-increase-in-2011-gartner- poll-finds.thtml
• Recent research studies confirm that Business Process Management(BPM) is rapidly evolving as the dominant management paradigm of the 21st Century .
• Since 2000, the financial services industry (retail and investmentbanks, as well as insurance) has led the aggressive adoption of BPMS.BPM has mostly been embraced in service industries where humanproductivity and effectiveness are key to process performance.
• An APQC benchmarking study completed in March 2005 found that“BPM is the way best-practice organizations conduct business.”
•
In 2008, one of the biggest changes in this market was the increase inthe number of buyers looking to support continuous processimprovement and drive business transformation with BPM. Forexample, in 2007, Gartner’s anecdotal evidence found only two out of 10 Gartner clients expressed these requirements, compared with fiveout of 10 in 2008.
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BPM Suite and its Relevance• Better enterprise understanding, analysis and strategic planning enables decisions
that better align with key business goals such as greater agility, greater resourceoptimization, and reduced risk.
• Visual modeling of as-is and to-be environments for business process analysis andscenario decision-making
• Role-specific reporting, analytics, workflow and compliance controls to presentaccurate and relevant information where and when needed
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BPMS[BPM Suite] Vendors
17
http://www.gartner.com/technology/streamReprintPDF.do?id=1-18M4I5Y&ct=120109&st=sb
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Business Modeling
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Business Process Modeling
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BPMN - Overview
BPMN 2.0(2010) -
Owned byOMG
BPMN 1.2(2008) -
Owned byOMG
BPMN 1.1(2007) -
Owned byOMG
BPMN 1.0(2004) -
Owned byOMG
BPMN 1.0(2001) –
Owned byBPMI
BPMN (Business Process Modeling Notation) is a graphical notation forbusiness process modeling maintained by the Object ManagementGroup.The objective of BPMN is to support business process modeling forbusiness and technical users.
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BPMN – Helping Bridge Biz and IT
BPMN is an agreement betweenmultiple modeling tools vendors, who
had their own notations, to use asingle notation for the benefit of end-
user understand and training
BPMN provides a mechanism togenerate an executable BusinessProcess (BPEL) from the business
level notation
Business Process developed by abusiness analyst can be directly
applied to a BPM engine instead of going through human interpretationsand translations into other languages
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Structuring of BPMN Elements
Core Set - Basic seriesof simple elements
Extended Set – Additional elements of specification thatbuilds further on theCore SetBusiness ProcessesDiagrams ,Collaboration,Conversation,Choreography
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BPMN Elements – Core set (1 of 4)
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BPMN Elements – Core set (2 of 4)
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BPMN Elements – Core set (3 of 4)
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BPMN Elements – Core set (4 of 4)
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Exercise 1
1
4
2
35
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BPMN Elements – Extended set (1 o3)
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Exercise 2
5 4321
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BPMN Elements – Extended set (2 of
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BPMN Elements – Extended set (3 o3)
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BPMN Model Types
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Collaboration
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Business Process Diagram
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Choreography
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Conversation
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Exercise 3
3
7
5
4
6 2
12
139
1110
2
1
16
18
15
14
24 25
2119
8
23
22
20
30
2827
26
3332
17
31
29
36
35
34
38
37
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Additional References• Introduction to BPMN
– http://www.bizagi.com/docs/Introduction%20to%20BPMN.pdf • BPMN 2.0 Poster
– http://www.bpmb.de/index.php/BPMNPoster • Process Modeling using Bizagi
–
http://www.bizagi.com/docs/BPMNbyExampleENG.pdf – http://www.bizagi.com/docs/Workflow%20Patterns%20using%20BizAgi%20Process%20
Modeler.pdf • Additional Reference material
– http://www.bpmn.org/ • BPMN Forums
– http://blog.bpmn.info/
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Business - IT Architecture Alignment
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BS1 BS2 BS3 Business Services
Business Processes
IT Processes
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Business
Services
BusinessProcesses
ITProcesses
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Architectural alignment
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Processes Alignment
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Live Case Study – Insurance Client
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Group Health Claims – Long Wait Time
Sales/Relationship
Managers
DataManagementClaims
Department
Broker
ClientHR
Claim Request
Submitted byMember
Updated Member Informationunavailable
Long wait time for the Claims Department, and therebythe Customer, to get updated member information due
to the chain of events between Data Management-Sales-Broker-Client HR
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Group Health Claims – Incoherent Data formats
Sales/Relationship
Managers
DataManagementClaims
Department
Broker
ClientHR
Claim Request
Submitted byCustomer
Updated Member Informationunavailable
Complete MemberInformation available
Inconsistency in data format of the member feed filebetween the Client HR Broker and again between
the Broker Insurance Firm, leads to substantialmanual work before setting up member data in the
LOB System
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ClientHR
Group Health Claims - Proposed State
Sales/Relationship
Managers
DataManage
mentClaims
Department
ClientHR
Accurate and Updated member
information available at most times in theLOB System
Broker• Sales establishes direct communication channel
with Client HR• Agrees on a data format for the member feed file
that can be consistently and frequently uploadedinto the LOB system without manual work.
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BPM Discipline withSix Sigma & Lean
Methodologies
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Process Quality, Governance,andMetrics Frameworks
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Businesses are growing big by the day making ittougher to keep pace with the challenges…
The challenges appear at a pace that
needs to be matched, if notbettered, by the business – else, the
risk is very obvious. But is that allbusinesses need to worry about?
In an ideal world, businesses wouldflourish unhindered on the greenestof pastures. But are things really that
simple in the real world?
There are challenges out there – regulatory/ competitive/
technological/ market forces – toname a few, so how does that change
the rules of the game?
Why Continual Improvement
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Business Process Governance &Centres of Excellence
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ThreeEssentials
Future
Findingsand
Solutions
Foundation
Fulfillment
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Business Process Maturity Model
Initial
Managed
Standardized
Predictable
Innovating
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Thank You
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