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What Every Enterprise Architect Needs to
Know about Workflow and BPMMichael zur Muehlen, Ph.D.Center of Excellence in Business Process InnovationHowe School of Technology ManagementStevens Institute of TechnologyHoboken [email protected]
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BPM is NOT about
Technology
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BPM is NOT about
Creating Diagrams
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BPM is NOT about
Architecture
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BPM is about
Improving Business
BPM - What are the Issues?
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Modeling in the Large:
Industry Partners7
Strategy-related Issues
Top Management
Support
End-goal perceptions
Economic Value (economics)
PoliticsCommit-ment to
long term
ROI Justification
Sponsorship
Lack of value metrics (i.e.,
Balanced Scorecard)
Corporate standards
Focus on Initiatives
Incentives
Governance
Lack of Benchmarks
Costs
New tool acquisition
Training
Costs associated with
updating the models
Ownership of models
Lack of control
Lack of coordination
point
Strategy-related Issues
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Process Modeling Life Cycle Issues
Setup
Lack of common
methodology
Design
Consoli-dation and Integration
Lack of modeling objectives
Lack of standards for reuse
Variant management
InfrastructureModel quality
assuranceRework Timeliness
Corporate modeling standard
Level of abstraction
Modeling guidelines
Maintenance
Model maintenance
Modeling-related Issues
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Resource-related Issues
Process Modeler
BPM education
Model User
Integration of activities
Level of expertise
and experience
Cost efficiency
Capability to abstract
Turnaround time
Knowledge sharing
Level of complexity
Hierarchical decompo-sition of models
Tool and Language
Lack of model
utilization
Resistance to change / adoption of
BPM
Lack of transfer
Lack of communication
Lack of using full toolset
features
Intellectual property
Limited access to repository
Information Provider
Loss of knowledge
Lack of adequate
toolset
Integration with other modeling
tools
Lack of good graphical process mapping
Lack of efficient repository search
engine
Resource-related Issues
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BPM = Project + Lifecycle
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<0-,:->$+/0organizational process management
software selection and implementation
software maintenance
Enterprise Process Frameworks
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BT Process Hierarchy
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Process Groupings
Business Activities
Core Processes
Business Process Flows
Detailed Process Flows
Level A
Level B
Level C
Level D
Level E
Level F
ObjectivesBusiness Activities
Delivery Units Products
Processes Systems
Scorecard
Sub Processes Roles System Functions
Operational Process Flows
Detailed Processes TransactionsDetailed Roles
Delivery Teams
Ownership ServicesProcess Groupings
Core processes
Strategic Process
Description
Tactical Process
Description
Operational Process
Description
Source: British Telecommunications plc 2006
WHATWHAT
HOWHOW
ObjectivesBusiness Activities
Delivery Units Products
Processes Systems
Scorecard
Sub Processes Roles System Functions
Detailed Processes TransactionsDetailed Roles
Delivery Teams
Ownership ServicesProcess Groupings
Core processes
Top-Down Strategy
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Process Groupings
Business Activities
Core Processes
Business ProcessFlows
Detailed ProcessFlows
Level A
Level B
Level C
Level D
Level E
Level F
Operational ProcessFlows
Strategic Processes/
Rule Description
Tactical Processes/
Rule Description
Operational Processes/
Rule Description
Strategy
BPM Application
Top-D
ow
n Proje
ct
Process Architecture: Benefits
Allow to short-circuit process identification phase
Provide neutral map for navigation along processes
Standardize terminology across the enterprise
Enable benchmarking across organizations
Designed based on industry best practices
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Roles &Responsi-
bilities
Process Owners
ProcessManagers
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Process Architecture: Fortune 100Enterprise Process ArchitectureMethods Organization
Levelconcept
Conventionhandbook
Modelinghandbook
CorporateModelingService
Architecture Contents
Glossary and Data Structures
Common terminology that Business & Systems Analysts can refer to
Business Capabilities and Process Definitions
What capabilities do you have, and what processes do you support
Senior managers and business users have a common vocabulary of
processes
Software purchases or outsourcing agreements are simplified
Consistency across business partners
Library of Cross-Organizational Messages
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Example: ACORD
Insurance Business is assemblage of standard process building
blocks
Use for internal integration
Integration across distribution channels
With third-party providers
“We are about the business content that goes into the process”
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Process Framework Benefits
Frameworks save time
Coloring a picture vs. drawing a picture
Frameworks reduce risk
Incorporate best practices
Frameworks enable business agility
Provide business context
Frameworks reduce costs
Enterprise overview helps identify areas in need of improvement
Frameworks enable incremental development
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BPM Governance
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Leveraging Vertical and
Horizontal Expertise
Compare Sainsbury (2006)
Process Group 2
Process Group 4
Process Group 3
Process Group 1
Process Group 5
Product Line 1
Product Line 2
Product Line 3
Product Line 4
Product Line 5
Process Manager
Process Manager
Process Manager
Process Manager
Process Manager
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Process OwnershipSource: Sainsbury (2006)
Focus Role Objective
BPM Roles - Example
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Process Sponsor
Process Framework Executive
Process Executive
Process Owner
Process Manager(recommended)
Process DB Manager
Process Modeler
Strategic
Operational
SharedService
Responsible for ARIS
Modeling Processes
Implement & Optimize
Process Performance Management
Standardize & Optimize
Facilitate & Drive
Method & Compatibility
Level
Corp. Region Division
Corporate Assessment Framework
Example: Fortune 100 Industrial Enterprise maturity assessment
Process Documentation
ProcessManagementOrganization
HarmonizationStandardization
Methods& Tools
Program Management, Qualification, Communication
Process Portfolio & Target setting
Process PerformanceControlling
Data Management
IT-Architecture
Process Optimization
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Visualization of Results:
2 Business Units Assessed0 1 2 3 4 5
Process Portfolio & Target setting
Process Documentation
Process Performance Controlling
Process Optimization
Harmonization/Standardization Methods & Tools
Process Management Organization
Program Management, Qualification, Communication
Data Management
IT-Architecture
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Maturity Stages26
Classification Level 1 Level 2 Level 3 Level 4 Level 5
CMMI Stage Initial Managed DefinedQuantitatively
ManagedOptimizing
BI equivalent
No business
intelligence
services are being
utilized
Individual process
metrics are
collected through
manual probes
A business
intelligence
information
architecture is
defined
A business
intelligence
platform is in
place
Forward-looking
and outside
information is
integrated into
the BI
infrastructure
BPM equivalentProcesses are
performed
manually
Processes are
modeled using a
formal modeling
notation
Processes are
modeled and
automated using
BPMS technology
Process metrics
are automatically
obtained and
processes are
managed on a
day-to-day basis
Processes are
continually
optimized
SOA equivalentNo services are
defined
Individual
services are
defined
A comprehensive
services
architecture is
defined
An enterprise
service bus is in
place
Continual
optimization of
QoS parameters,
services
architecture
The BPM Maturity Model
Governance Method IT People CultureStrategic Alignment
Process Roles and Responsibilities
Process Design & Modeling
Process Skills & Expertise
Process Values & Beliefs
Process Improvement Plan
Decision Making Processes
Process Implementation &
Executions
Process Education & Learning
Process Attitudes & Behaviors
Strategy & Process Capability Linkage
Process Management
Standards
Process Improvement &
Innovation
Process Knowledge
Leadership Attention to
Process
Process Output Measurement
Process Metrics & Performance
Linkage
Process Control & Measurement
Process Collaboration & Communication
Responsiveness to Process Change
Process Architecture
Process Management
Controls
Process Project & Program
Management
Process Management
Leaders
Process Social Networks
Process Customers & Stakeholders
Business Process Management
Maturity
Process Design & Modeling
Process Implementation &
Executions
Process Improvement &
Innovation
Process Control & Measurement
Process Project & Program
Management
Source: Rosemann & DeBruin 2006
Agile BPM MaturitySatisfying all 30 facets of the BPM Maturity Model takes a long time
A subset of the BPM Maturity model is needed to guide an
organization toward a rapid deployment of BPM technology
Example: Staged Deployment of Maturity Initiatives
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Modeling Tool Extended use of Tool
Choosing the Right Strategy
There is no single right pathway for all organizations
If command-and-control infrastructure: Methods come first,
culture comes later
If participatory organization: Culture and people need to be
nurtured earlier in the process
If centralized organization: Building a central repository can
be undertaken early in the process
If decentralized organization: Leveraging individual projects to
facilitate quick wins is important, but an integration strategy for
the project results later on needs to be instituted early on
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3 Challenges Ahead
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50 Years of IT Lock-DownManagement by MagazineBusiness People Acquiring
IT Skills
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Thank You – Questions?
Michael zur Muehlen, Ph.D.Howe School of Technology ManagementStevens Institute of TechnologyCastle Point on the HudsonHoboken, NJ 07030Phone: !+1 (201) 216-8293Fax:! +1 (201) 216-5385E-mail:[email protected]:! http://www.cebpi.org
Process Thought Leadership