Contributed on November 15, 2011

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Introduction to BPM

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Workshop presentation from Progress Revolution user conference in Boston, September 2011

Transcript

Introduction To BPMSandy Kemsley l www.column2.com l @skemsley Copyright Kemsley Design Ltd., 2011 1 My History in BPM l Mid-late 80’s: from satellite imaging to document imaging to workflow l Early 90’s: built desktop imaging/workflow product l Mid-late 90’s: integrate custom imaging, workflow, EAI and e-commerce systems l 2000-1: FileNet BPM evangelist l 2002-now: BPM and Enterprise 2.0 consulting, blogger and industry analyst Copyright Kemsley Design Ltd., 2011 2 Agenda l Defining BPM l The methodology and the technology l The value of BPM l Evolution of the BPMS l Trends in BPM and BPMS l Implementing a BPMS l Use cases and BPMS characteristics l Started and growing a BPM initiative Copyright Kemsley Design Ltd., 2011 3 Part 1Defining BPM Copyright Kemsley Design Ltd., 2011 4 Methodology AND Technology Copyright Kemsley Design Ltd., 2011 5 What is BPM? BPM is a management practice that provides for governance of a business’ process environment toward the goal of improving agility and operational performance. BPM is a structured approach employing methods, policies, metrics, management practices and software tools to manage and continuously optimize an organization’s activities and processes. Gartner Copyright Kemsley Design Ltd., 2011 6 BPM Defined l A management discipline for improving cross-functional business processes l The methods and technology tools used to manage and optimize business processes Copyright Kemsley Design Ltd., 2011 7 The Value of BPM Copyright Kemsley Design Ltd., 2011 8 BPM Goals l Efficiency l Automating steps and handoffs l Integrating systems and data sources l Compliance l Achieving and proving standardization l Agility l Changing processes quickly and easily l Visibility l See what’s happening in a process Copyright Kemsley Design Ltd., 2008 9 Benefits of BPM l Process improvement l Cost savings l Increased revenue l Improved time-to-market l Additional business opportunities l Business agility through process agility l Self-documenting processes Copyright Kemsley Design Ltd., 2008 10 Part 2The Evolution of BPMS Copyright Kemsley Design Ltd., 2011 11 History of BPM to mid-2000’s BPM Suite “Pure-play” BPM “Integration-focused” BPM Workflow Lightweight EAI Simple workflow EAI/IBS (OEM) (build) (person-to-person) (system-to-system) extend extend Business activity monitoring Business rules B2Bi Process governance Process modeling Process simulation Administrative BPM Collaborative BPM Copyright Kemsley Design Ltd., 2011 Embedded BPM 12 From 2005 To Now l Model-driven development l Emergence of standards l Integration of key related technologies l Social software impacts l Composite development environment l Market convergence and consolidation Copyright Kemsley Design Ltd., 2011 13 What’s In Today’s BPMS? l Process modeling l Monitoring and l Execution engine governance l User interfaces, l Dashboards, including social reporting and and collaborative analysis l Integration l Simulation and optimization l Business rules l Application templates Copyright Kemsley Design Ltd., 2011 14 The BPM Cycle Discover Optimize Design Analyze Build Execute Copyright Kemsley Design Ltd., 2011 15 Importance of Model-Driven BPM l Reduces need for custom development l Graphical model auto-translates to executing process: “zero code” BPM l IT resistance to ceding control l Enables business-IT collaboration l Business people can create and view process models l Business resistance to participation Copyright Kemsley Design Ltd., 2011 16 BPM Standards Copyright Kemsley Design Ltd., 2011 17 Why BPMN? l OMG-supported standard l Support by many tool vendors l Training and certification programs l Ongoing enhancements in BPMN 2.0: l Advanced event modelling l Serialization for model interchange l Execution semantics Copyright Kemsley Design Ltd., 2011 18 BPMN: The Rosetta Stone ofProcess l Enables communication between different audiences: l Business users l Business analysts l Technical implementers Copyright Kemsley Design Ltd., 2011 19 BPMN Is Simple… l Activity l Gateway l Event l Data lSource: http://bpmb.de/poster The BPMN 2.0 Problem l More than 100 elements l Unlikely to be fully understood by most experts, much less users l Unlikely to be fully supported by most vendors l Has led to rejection of BPMN in favor of “simpler” modeling paradigms lSource:M. zur Muehlen, lStevens Institute of lTechnologyCopyright Kemsley Design Ltd., 2011 23 The BPMN 2.0 Solution l Not everyone needs to learn everything l Group BPMN elements into sets used by different personas l Business user l Business analyst l Architect/developer l Each level adds more detail to model BPMN 2.0 Subclasses l Simple: start, end, Executable task, sequence flow, AND, OR, subprocess Analytic l Descriptive: add task types, event types, swimlanes, message Descriptive flows, data objects l Analytic: full enterprise architecture modelling Simple l Executable: complete set for executable models Copyright Kemsley Design Ltd., 2011 25 BPM and SOA Copyright Kemsley Design Ltd., 2011 26 BPM And SOAProcess Process Process Process Step 1 Step 2 Step 3 Step 4 Service A Service B Service C Service D Service E• Call • Call • Call ERP • External • Internal legacy database system web web system service service Copyright Kemsley Design Ltd., 2011 27 BPM And SOA Together l BPM is the “killer app” for SOA; SOA is the enabling infrastructure for BPM l SOA alone only allows you to design and build a set of services l BPM alone would require custom coding for each system integration l BPM + SOA orchestrates people and services into a business process Copyright Kemsley Design Ltd., 2011 28 SOA And Process Modeling l Discovering services l What services already exist l Whether existing services meet the needs l Specifying services l What new services need to be created l What legacy functions need to be wrapped in services Copyright Kemsley Design Ltd., 2011 29 Implementing BPM And SOA l Two basic approaches l Bottom-up — SOA then BPM l Generate services from existing apps l Consume services in processes l Top-down — BPM drives SOA l Model processes l Identify and build services required l In practice, a combination of both approaches Copyright Kemsley Design Ltd., 2011 30 Issues And Challenges l Different vendors and products l SOA and BPM seen as competitive l Competing standards l Separate initiatives within end-user organizations l Developed independently in different departments l Different sponsors and champions Copyright Kemsley Design Ltd., 2011 31 Part 3Trends in BPM and BPMS Copyright Kemsley Design Ltd., 2011 32 Business-Driven Trends in BPM Business Driver Resulting Change in BPM Knowledge work is replacing More agile to allow flexible routine work business processes The value of collaboration in More social to allow business is recognized collaboration within BPM Need to respond quickly to Event-driven intelligent changing events processes Business demands greater End-user tools for business- control over processes led design Copyright Kemsley Design Ltd., 2011 33 The Impact of Social Software Copyright Kemsley Design Ltd., 2011 34 What Is Enterprise 2.0? l Enterprise-facing social software l Business purpose, not purely social: l Social interaction to strengthen weak ties l Social production to collaboratively produce content l SaaS or on-premise Copyright Kemsley Design Ltd., 2011 35 Drivers For BPM + Enterprise 2.0 l Changing user expectations l Trends towards greater collaboration l Lack of agility in many current BPMS implementations Copyright Kemsley Design Ltd., 2011 36 Social Software Impacts:The Four C’s l Collaboration l Configurability l Cloud l Community Copyright Kemsley Design Ltd., 2011 37 Design-Time Collaboration l Multiple people participate in process discovery l Internal and external l Technical and business l Captures “tribal knowledge” Copyright Kemsley Design Ltd., 2011 38 Runtime Collaboration l User adds new participants to leverage knowledge and relationship l User discussions linked to process instance l Threaded discussions l Wiki pages l Instant messaging l Tags and categories Copyright Kemsley Design Ltd., 2011 39 Process Event Streams l Publish and subscribe model for process events l Changes to models l Runtime process instances l Increases visibility l Increases participation l Supports wider variety of devices, including mobile Copyright Kemsley Design Ltd., 2011 40 BPM Configurability l Composite development environments now included with many BPMS l UI forms development l Container-based portal environment l Ready-made BPM widgets l Wiring interfaces between widgets Copyright Kemsley Design Ltd., 2011 41 BPM in the Cloud l Reduce capital costs l Full capabilities of on-premise version l Design and run from anywhere l Key targets: l Business process outsourcers l Small and medium business l Business-to-business processes Copyright Kemsley Design Ltd., 2011 42 Online BPM Communities l External communities of practice l Provide idea exchange, tools l Augment or replace internal BPM center of excellence l May be vendor specific/sponsored l Internal center of excellence l Discussion forums l Collaboration linked to process models l Collaboration linked to process instances Copyright Kemsley Design Ltd., 2011 43 Agile/Dynamic BPM Copyright Kemsley Design Ltd., 2011 44 Work: Taylor vs. Drucker l Scientific l Management by management objectives l Standardize l Participants choose processes to actions to meet goals increase efficiency Copyright Kemsley Design Ltd., 2011 45 The Extremes Of Work Routine Knowledge Work Work Copyright Kemsley Design Ltd., 2011 46 From Structured BPM to ACM Adaptive Case Structured BPM Management Repeatability Highly repeatable Unpredictable Process Assist human Focus transactions knowledge Efficiency and Problem resolution Goal automation and documentation Back-office financial Patient chronic care Example transactions management Copyright Kemsley Design Ltd., 2011 47 Characterizing The ExtremesRoutine Work Knowledge Workl Predefined process l No predefined model model l Collaboration on demandl Controlled participation l Little automation, butl Automatable, especially guided by rules and with service integration, events rules and events Copyright Kemsley Design Ltd., 2011 48 The Structured/UnstructuredDebate If you can’t model Exceptions are the it up front, you just new normal: every don’t understand process is different the process Copyright Kemsley Design Ltd., 2011 49 It’s Not That SimpleStructured Work Unstructured Workl Some process are that l Some processes have repeatable, especially sufficient variability that automated processes modelling is inefficientl Ad hoc process l Instrumentation of exceptions already exist, unstructured processes they’re just off the grid provides value Copyright Kemsley Design Ltd., 2011 50 A Spectrum Of StructureStructured Structured with Unstructured with Unstructured• e.g., automated ad hoc pre-defined • e.g., investigations regulatory process exceptions fragments • e.g., financial back- • e.g., insurance office transactions claims Copyright Kemsley Design Ltd., 2011 51 Dimensions Of Work l Structured to unstructured l Controlled to collaborative l Internal to external Structure participation Collaboration l Not strictly independent External Socialization Copyright Kemsley Design Ltd., 2011 52 What’s Required For Agile BPM? l Modify structured process models during runtime l Manage unstructured/unpredictable and semi-structured work l Provide real-time process intelligence to identify future problems and inform decision-making Copyright Kemsley Design Ltd., 2011 53 Event-Driven BPM Copyright Kemsley Design Ltd., 2011 54 What Are Events? l Events are how the “real world” interacts with processes and systems l An action outside a process that impacts that process l Real-time information l Instructions l Originating with people, sensors or other systems Copyright Kemsley Design Ltd., 2011 55 Why Do Events Matter? l Events make processes more responsive to internal and external situations l Allow processes to respond to changing conditions l Asynchronous information or control provided to process Copyright Kemsley Design Ltd., 2011 56 Combining Events and Processes l Event triggers a process l System or sensor l User action l Process creates an event l Process log l Explicit message or signal l Event interrupts or diverts process l External error or cancellation Copyright Kemsley Design Ltd., 2011 57 Event-Driven Financial Process l Scenario: loan origination documents l Customer documents created or gathered in front office l Transactions created by front office l Back office verifies documents against transactions Copyright Kemsley Design Ltd., 2011 58 Event-Driven Process Copyright Kemsley Design Ltd., 2011 59 Part 4Implementing BPM Copyright Kemsley Design Ltd., 2011 60 Types of BPMS Copyright Kemsley Design Ltd., 2011 61 Gartner’s BPM Use Cases l Implementation of company-specific process application l Support for continuous process improvement l Business transformation initiative l Redesign for process-based SOA Gartner MQ for BPMS, 2009 Copyright Kemsley Design Ltd., 2011 62 Gartner Use Case Characteristics(a.k.a. “Functions”) l Business perspective on models l Orchestration of end-to-end processes l Rules engine l Pre-built industry-specific content l Management visibility and control l Model-driven development l …and more Copyright Kemsley Design Ltd., 2011 63 Forrester Market Divisions l Dynamic case management = document-centric BPM l Comprehensive integration solutions = integration-centric BPM l BPMS = human-centric BPM Forrester Wave for BPMS, 2010 Copyright Kemsley Design Ltd., 2011 64 Characteristics ofDynamic Case Management l Strong enterprise content management (ECM) requirements l Records management l Search l Content analytics l Human-centric BPM capabilities l Document approval workflow l Ad hoc BPM centered on case file Copyright Kemsley Design Ltd., 2011 65 Characteristics of ComprehensiveIntegration Solutions l Heavy integration requirements l ESB l Service registry, repository and governance l SOA development environments l Human-centric BPM capabilities l Exception handling and escalation Copyright Kemsley Design Ltd., 2011 66 Characteristics of BPMS l Web service and other lighter-weight integration l Lighter-weight content management l Focus on process application development l Process modeling and design collaboration l Process development and composition l Collaborative work environment Copyright Kemsley Design Ltd., 2011 67 Evaluation Criteria for BPM Copyright Kemsley Design Ltd., 2011 68 BPM Evaluation Criteria l BPM “style”: integration, human-centric, document-centric l Collaborative modeling l Process design l Application composition/development l Business rules l ESB/SOA Copyright Kemsley Design Ltd., 2011 69 BPM Evaluation Criteria l Collaborative/dynamic execution l User-configurable user interface l Analytics and reporting l Simulation l Process optimization Copyright Kemsley Design Ltd., 2011 70 Starting and Growing a BPMInitiative Copyright Kemsley Design Ltd., 2011 71 Picking The Right First Process l Small enough to be manageable l Minimum “useful” functionality in 1st iteration l Minimize customization, breadth before depth l Big enough to be relevant l Line of business l Expected return on investment (ROI) l Improved user experience, automation, tracking l Opportunity for future reusability l Related to future plans Copyright Kemsley Design Ltd., 2011 72 Gaining Business Buy-In l Collaborative process discovery and design l Ongoing involvement during agile prototyping and implementation l Control over production runtime environment l Methodology and corporate culture Copyright Kemsley Design Ltd., 2011 73 Ensuring User Adoption l Build a user-centric solution l Different interfaces for different personas l Configurable by user to their work style l Provide benefits to individual users l Integration to reduce rekeying information l Automated work auditing l Incentives tied to appropriate system usage Copyright Kemsley Design Ltd., 2011 74 Measuring SuccessHard ROI Soft ROIl Reduced headcount due l Improved customer to improved efficiency satisfactionl Reduced skill levels due l Increased revenue based to automation on increased capacityl Reduced SLA violations l Increased competitivel Reduced time to change advantage due to reduced time to marketl Reduced monitoring overhead l Outsourcing/offshoring l Customer self-service Copyright Kemsley Design Ltd., 2011 75 Expanding the Initiative l Find an internal evangelist l Measure and understand ROI l Deeper integration l Increase benefits via integration and automation l Wider adoption across the organization l Generalizing the benefits l Expand initial processes into adjacent areas Copyright Kemsley Design Ltd., 2011 76 BPM Center Of Excellence l Vision for enterprise BPM l Overall BPMS architecture l Process redesign to expand existing BPM processes to new participants l Training and mentoring on tools and methodology l Governance l Repository of reusable artifacts Copyright Kemsley Design Ltd., 2011 77 From BPM Project To Program 1st BPM project Resources Resources CoE: Plan Core team Expand team Resources Resources 2nd BPM project Time Copyright Kemsley Design Ltd., 2011 78 Summary Copyright Kemsley Design Ltd., 2011 79 Summary l The history and evolution of BPM l Current trends in BPM l Types of processes and BPMS l Starting and growing a BPM initiative Copyright Kemsley Design Ltd., 2011 80 Sandy Kemsley Kemsley Design Ltd.email: sandy@kemsleydesign.comblog: www.column2.comtwitter: @skemsleyQuestions? Copyright Kemsley Design Ltd., 2011 81