Creating Modern Business Process Driven Applications with BPM
Description
This presentation highlights the importance of Business Process Management in creating next-generation business process applications. This webinar highlights the value of business process applications, and how to create and use them to improve operations and outcomes. Topics include:
• How BPM suites became recognized as business problem solvers
• The critical componentry of high-value BPM suites
• How to analyze, design and manage business processes and create business process applications
Transcript
Creating Modern Business Process Driven Applications with BPM Carl Lehmann Research Manager | 451 Research | Boston, Massachusetts About One company with 3 operating 200+ staff divisions 1,300+ client organizations: Syndicated research, advisory, enterprises, vendors, service professional services, datacenter providers, and investment firms certification, and events Organic and growth through Global focus acquisition2 Applications are changing From task driven … …to process driven What’s the difference?3 Applications are changing From task driven … …to process driven What’s the difference? • Rules, policies • Decisions • Options • Metrics • Customization • Adaptability4 • Complexity Applications are changing From task driven … …to process driven What’s the difference? • Rules, policies • Decisions • Options And because that’s the way the • Metrics customer wants to do business! • Customization • Adaptability5 • Complexity 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 BPM6 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 BPM7 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 platforms8 How to think about BPM, processes and applications 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 applications9 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 BPM10 What is a business process application?The system created after careful design, analysis and redesign of acomplex set of activities that manage resources required to achieve abusiness objective. It enables stakeholder collaboration, governsexecution through polices and rules, and measures the achievement ofspecific performance, compliance and outcomes.11 In other words…A business process application turns this… Into something like this…12 In other words…Or this… Into something like this…13 Anatomy of a business process application1. 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 objectives14 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 BPM15 Components of a BPM suite Process design, Application development modeling and simulation User experience Connect, integrate User access Task management Test, execute, monitor16 Components of a BPM suite1. A modeling environment for process design, collaboration, analysis and simulation2. Business rules management to define KPIs, ‘controls’ and ‘bounds’ necessary to assure compliance3. A process engine to orchestrate structured processes and unstructured cases4. 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 reuse17 How is a BPM suite used? Strategic Level Objectives and Organization Traditional transaction-orientedapplication architecture Source: Adapted from the Value Stream Group18 How is a BPM suite used? BPM suite process-oriented application capability Traditional transaction-orientedapplication architecture Source: Adapted from the Value Stream Group19 How is a BPM suite used? Enterprise architecture Strategic Level Objectives and Organization management BPM suite process-oriented application capability The link between strategy and execution Traditional transaction-orientedapplication architecture Source: Adapted from the Value Stream Group20 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 BPM21 Motivations and approaches for BPM A Problem • Strategy and KPI Set • Process team • Process selection • Methodology • Modeling and simulation • Implementation and control BPM Business Process Portfolio Management A Strategic Initiative Continuous Transformation • Strategy and KPI Set(s) • Strategy and KPI Sets • Program and BPM team(s) • Center of Excellence (BPM Teams) • Process set • Process portfolio and audit • Methodology(ies?), PMO? • Multiple methodologies, PMO • Redesigns and new designs • Multiple tools • Modeling and simulations • Governance • Execute, manage and control • Continuous improvement22 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, 10/200923 How to assess process management maturity The Process Audit • Enterprise capabilities • Leadership, Culture, Expertise, Governance • Process enablers • Design, Performers, Owner, Infrastructure, Metrics Source: Software Engineering Institute, Carnegie Mellon Source: The Process Audit, Michael Hammer, Harvard Business School Publishing24 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… 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: BPMethods25 How to document and model processes Identify process components (Process Components Model) 3. What governs execution and value creation? 1. What is needed Process Design 4. What value to begin? “How” is created? 2. What is needed to execute and create value?26 How to measure performance Select KPI Set(s) – Balanced Scorecard meets Six Sigma Source: Strategy and Business Process Management, Taylor & Francis 201227 How to improve processes Create project: select artifact set, elicitation techniques, analytic techniques (e.g. Lean, Six Sigma, etc.), requirements management tools Source: Corporate Education Group Skills include project management and business analysis28 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…29 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 • Design and route workflow • Populate it with data • Generate or limit access to data, reports • Assure data accuracy and reliability • Establish and track key performance indicators • Integrate with other systems or • Define threshold levels of performance applications, internal and external • Configure messaging and alerts • Allow or restrict access by other applications • Structure reports or users based on role • Perform ad-hoc analysis • Securely extend access via • Reconfigure all of the above when change occurs loud, wireless, mobile, otherIf in-place systems and resources cost too much then it’s time to consider a BPM suite30 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 BPM31 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 initiative32 Questions? Comments?Carl LehmannResearch Manager451 ResearchBoston, Massachusettscarl.lehmann@451research.comDesk: +1.781.319.0599
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