Goal-Driven Business Process Management

Transcription

1 Goal-Driven Business Process Management Creating Agile Business Processes for an Unpredictable Environment

2 Executive Summary Business process management (BPM) promises to help organizations orchestrate their people and systems in order to conduct business more efficiently and effectively. BPM can deliver improved process efficiency as well as better visibility into business operations. Organizations that have invested in BPM methodologies and technologies see rapid return on their investments and derive greater value from their existing systems. In fact, of TIBCO customers responding to a recent survey conducted by Intercai Mondiale: 100% increased productivity 95% improved quality of service 82% reduced operating costs 82% saw faster process cycle times In addition, more than 80% of respondents reduced operating costs and IT costs, increased productivity, and improved their quality of service beyond their expectations. The results above, while impressive, only scratch the surface of what can be achieved with BPM. Many of these results represent the low-hanging fruit, benefits that were realized due to automation of fairly simple processes. In order to extract value from BPM initiatives over the long term, organizations need to be able to model and execute highly complex business processes that evolved in response to a highly unpredictable business climate. This can be difficult to accomplish using traditional BPM approaches that lend themselves better to more static processes and provide visibility only at the highest level of the process. Instead, organizations need to adopt a new approach to building business processes: goal-driven business process management. Goal-driven BPM is an approach that makes the development and identification of business processes a more intuitive and natural activity. It uses familiar organizational concepts such as goals and the steps taken to achieve those goals (sub-goals), provides granular visibility into sub-goal progress, and allows processes to intelligently change course as events unfold. When managed and deployed appropriately, goal-driven BPM delivers significant benefits, including: Faster, less expensive process creation via process component reuse Significant business user engagement in process design A better context for process monitoring G o a l - d r i v e n B U S I N E S S P R O C E S S M A N A G E M E N T

3 The agility to fix more problems as they occur rather than after the fact The ability to dynamically adapt to new business conditions This whitepaper provides an overview of goal-driven BPM: the underlying concepts, management practices, basic implementation methodology, and characteristics of the technology that effectively support this new approach. It outlines the benefits you can achieve with goal-driven BPM and discusses how the methodology and its supporting technology will bring a new level of agility and flexibility to your business. G o a l - d r i v e n B U S I N E S S P R O C E S S M A N A G E M E N T

4 Introduction Today s business climate is notoriously unpredictable. Businesses prepare for one type of weather, and a different type materializes. The cost of preparing or not preparing for inclement weather can be extremely costly. Business process management (BPM), both the management practice and the software tools that facilitate it, evolved to help organizations address this constantly changing environment. BPM has helped organizations: Improve productivity by automating many key processes Improve customer service and compliance by providing visibility into processes Improve the overall flexibility of business processes through a variety of different approaches But, as with anything else in business, there is no completely evolved state for a business process. It must continue to transform to help enterprises meet the newest demands of the market. The market is rarely satisfied for long. Quickly and inevitably the old refrain returns: newer, faster, better. What more can be done? There are already a myriad of technologies and best practices to help organizations act quickly on up-to-the-minute information. However, as more organizations adopt these solutions, previously cutting-edge technologies quickly become a baseline cost of doing business. The most responsive and competitive companies now need more if they are to satisfy their customers and stay ahead of the competition. Part of the problem is that organizations are able to act on up-to-the-minute information only in so far as the possible action is already built into the process. Greater process flexibility is needed if these organizations are to become truly responsive to move from reactive to predictive. It is imperative to shift from inherently static processes processes that are discoverable and understandable, evolving relatively slowly over time to processes that are complex, dynamic, and predictive actually evolving during execution to meet previously unknown requirements. Achieving such a monumental shift requires a new approach to building business processes: goal-driven business process management. G o a l - d r i v e n B U S I N E S S P R O C E S S M A N A G E M E N T

5 Goal-driven BPM is an approach that makes the development and identification of business processes a more intuitive and natural activity. The world is goal driven; we organize our lives, both personal and professional, around goals. When these goals are large, we break them down into sub-goals that take us a step at a time to our final objective. Often we work back from the goal to our current position in order to identify the best route to that goal. For any scenario, there are likely a variety of best options, the actual best depending on the variables of the situation. Goal-driven BPM treats processes in the same manner. When managed and deployed appropriately, goal-driven BPM provides today s most competitive organizations with the flexibility and visibility they need to win. What Is the Reward for Achieving Your Goal? The benefits described below represent what can be gained from a successful implementation of goal-driven BPM. A successful implementation has two critical and complementary parts, discussed later in this paper. The first part is methodology and the second technology. If both of these are successfully applied, organizations can expect the following benefits from goal-driven BPM. FASTER, LESS EXPENSIVE PROCESS CREATION VIA PROCESS COMPONENT REUSE The following metaphor explains the key premise behind goal-driven BPM. When planning a route to the top of a mountain, when no established trail exists (goal = reach top of mountain), one approach is to consider the route from the top of the mountain, scoping out the safest and simplest route at each stage (sub-goal). Each section will present different conditions (scree, rock wall, glacier, and so on). When each of these conditions is encountered, a standard technique (process) is employed to traverse that section (achieve the sub-goal). The complete set of sub-goals, and the associated processes required to complete each sub-goal, provide a complete plan for achieving the main goal, in this case reaching the top of the mountain. Having learned the required techniques (identified the processes), these techniques can be reused in similar situations to achieve different goals. This is illustrated in Figure 1. G o a l - d r i v e n B U S I N E S S P R O C E S S M A N A G E M E N T

6 Figure 1. Different colors on the path represent the standard techniques (processes) that can be reused in similar situations to achieve different goals By organizing processes around goals, that is what is to be achieved rather than what is to be done, goal-driven BPM helps organizations achieve needed flexibility. Breaking down business processes into sub-goals is critical to this flexibility. The collection of discrete sub-goals makes up the building blocks available to a process designer. Just as the mountain climber increases the number of mountains she can climb by expanding her skill set, so expanding the set of sub-goals increases the number of new processes that can be created by combining a number of different sub-goals. Creation of a process that achieves a goal out of existing sub-goals requires no new effort. The processes needed to create each of those sub-goals are already defined. In the context of this paper, they will be referred to as process components. FACILITATE BUSINESS-USER ENGAGEMENT A key part of the flexibility provided by a goal-driven approach to BPM is that it puts complex process design in the hands of business users, in a way that is familiar to them. Designing a complex process using constructs such as dynamic sub-procedures may or may not be familiar to a business person. However, the concept of reaching a goal by setting several milestones needed to achieve that goal is something familiar to us all, regardless of profession. Goal-driven BPM provides business people with intuitive building blocks for creating new processes to deliver new products, groups of products, services, and so on. The ease with which this can be done means that organizations can act on opportunities or threats as soon as they are identified. G o a l - d r i v e n B U S I N E S S P R O C E S S M A N A G E M E N T

7 BETTER CONTEXT FOR PROCESS MONITORING In addition to making the creation of new processes quick and painless, a goal-driven approach to BPM makes it possible to monitor processes at a level with adequate visibility to act on problems and change course in a timely manner. Breaking down processes into logical discrete sub-goals makes it possible to monitor processes at the sub-goal level. Monitoring a process at this level can be more valuable than monitoring the process either at the step or overall process level. This is because if a milestone such as a sub-goal is missed, it can mean that the entire process is in jeopardy of being completed on time. On the other hand, late completion of a single step may not impact the timely completion of the goal. If real-time visibility only gives us information about whether an entire process finished behind schedule, it is alerting us to a problem that is already beyond our control. AGILE BPM FIXES MORE PROBLEMS Once a problem is identified, a goal-driven approach to BPM makes it easier to fix. Should our mountain climber encounter an impassable part of the mountain, she will not go all the way back to the bottom of the mountain and start over, rather, she will go back to the last part of her route that is in common with whatever new route she decides on. BPM, when approached in a goal-driven manner, works the same way. If a problem is identified that truly does jeopardize the timely completion of a process or goal, the process can be dynamically reconfigured in-flight. Rather than simply failing, the process might intelligently find a different path. The running process can be wound back to the last completed sub-goal in common with the new process, undoing previously executed steps. This is illustrated in Figure 2. Figure 2. Modifying the target goal G o a l - d r i v e n B U S I N E S S P R O C E S S M A N A G E M E N T

8 THE END STATE: DYNAMIC, ADAPTIVE BPM In its most revolutionary incarnation, a goal-driven approach to BPM makes it possible to do all of this automatically, based on rules. For example, when a work order comes in, the appropriate process components are selected to create the process, based on rules. If, at a later point, a milestone is missed, an alert is triggered. Predictive simulation identifies that the missed milestone will result in a delinquent process, and rules dynamically identify the best course of remediation, dynamically selecting the required process components. Through this process of sense-and-respond incremental improvement, goal-driven BPM makes it possible to create the most dynamic, agile, and responsive processes. Getting to Goal-Driven BPM Similar to the mountain climber planning his or her route to the top, achieving goal-driven BPM requires an organization to break down its problems key business processes into bite-size pieces. To do this effectively, the organization needs a comprehensive methodology with associated BPM patterns designed for goal-driven BPM, as well as software that directly and transparently supports these concepts. Adopting a Goal-Driven BPM Methodology IDENTIFYING GOALS AND SUB-GOALS Goals are the objectives to be met by the business as part of its day-to-day operation. These goals operate at many different levels. Some sample business goals are handle an order (lower level) or roll out infrastructure to the northwest region (higher level). Though some types of goals will be common across many organizations (for example, reconcile supplier billing ), many will be specific to an industry and the organization itself. Sub-goals represent the management of the items of interest to the business. Once identified, each of these items of interest, or sub-goals, can be managed as a service, a discreet entity without dependencies and able to be reused as required by any part of the business. The key to correctly identifying the items managed by a business is to identify all of the tangible and intangible items directly or indirectly involved in the day-to-day running of the business. Lists of intangible items may include such things as contracts, policies, or services. G o a l - d r i v e n B U S I N E S S P R O C E S S M A N A G E M E N T

9 Incident events, such as a withdrawal, a claim, a trade, a crash, or a holiday, may also be of interest. Figure 3 provides examples of tangible and intangible items of interest. Figure 3: Examples of managed items involved in a securities trade Intangible Items Regulations Trade Price Contracts Tangible Items Employees Customer Departments Fax machine Tangible items are generally easier to identify as these are the physical items involved in the day-to-day running of the business. For example, for a telecommunications provider they could include products, employees, customers, test equipment, wiring, departments, and so on. This is illustrated in Figure 4. Figure 4: Examples of tangible items managed in the provision of a telephone line Business analysis techniques, such as business conceptual and structural modeling, can help with the identification of the tangible and intangible items likely to be managed by business processes. When an exhaustive list of managed items has been identified, it is then possible to optimize this list by pruning those items that are only tangentially involved in the business process and by identifying suitable abstractions that cover whole classes of the items identified. Care should be taken not to over-optimize this list, lest the managed items be abstracted into generic uselessness. Each goal or sub-goal then manages a single item or a set of highly cohesive related items. This results in discrete processes that are cleaner and more likely to be reusable. Because of the discrete nature of these process components, it is also possible to expose them as services, with simple, clean interfaces. G o a l - d r i v e n B U S I N E S S P R O C E S S M A N A G E M E N T

10 IDENTIFYING SUB-GOAL CANDIDATES FOR REUSE Goal orientation of business processes is a powerful concept. Its value is further magnified by the possibility for greater process reuse. This is possible due to the encapsulation of items significant to the business as services that are available for reuse. Business is organized around two main axes: vertical business segments, within which end-to-end business processes exist, and horizontal, business-spanning functions that cross these segments. This is illustrated in Figure 5. Figure 5: An example of a logical business organization These horizontal functions may represent physical organizations, such as a department, or logical organizations, such as a set of related roles that span the business. Each horizontal area has specific items that it manages and, as such, has its own set of process components. Goal-driven BPM allows for the identification of the sub-goals associated with end-toend business processes. Once sub-goals are identified, it is easy to identify those that are common across vertical segments or horizontal functions and therefore candidates for reuse. Frequently, the items managed by the horizontal functions participate in the achievement of many of the organization s goals for the vertical segments. Reuse of goals is most likely with the more generic horizontal functions (such as the financial function in the example above), but other reuse is also possible. G o a l - d r i v e n B U S I N E S S P R O C E S S M A N A G E M E N T 10

11 FORMULATION OF END-TO-END BUSINESS PROCESSES: ACHIEVING GOALS Once process components are identified, they can be assembled into groups of components that achieve a desired business goal. The components are then sequenced and scheduled in an order that facilitates the completion of the goal or process. To achieve the greatest flexibility, it is important that the constituent process components have no dependencies such as loops or conditional parts. For example, if the process were building a house and two process components were laying the foundation and building the walls, whereas the foundation must be built before the walls, what constitutes the foundation should be irrelevant to building the walls. Key to the success of this approach is the adoption of a suitable concept or metaphor that makes the combination of process components understandable to the business analyst. The project plan provides such a metaphor. Tasks in the plan represent the independently defined process components. The tasks are then sequenced appropriated, as in the example above, where the foundation must be completed before the walls of the house are erected. Deploying Technology to Support Goal-Driven BPM WHY DO YOU NEED TECHNOLOGY? A goal-driven BPM methodology used during the design of business processes is beneficial regardless of how the organization implements the methodology. However, the advantage of using this approach is greatly reduced when used without BPM software that fully supports goal-driven BPM. Specifically: BPM reuse is restricted: Goal-driven BPM software can enforce many of the process attributes that are necessary for reuse. Without checks for less optimal process design, organizations will find fewer opportunities for reuse. Dynamic BPM is not possible: Without supporting software, goal-driven BPM is reduced to a design-time-only concept. Individual processes will not be able to adapt when real-world conditions do not follow a single pre-defined path. Empowerment of business users is restricted: Building on-demand business processes as an intrinsic activity of a business user s day-to-day work is only possible using software designed for that user s skill set. Without appropriate G o a l - d r i v e n B U S I N E S S P R O C E S S M A N A G E M E N T 11

12 software, business process development is usually a technical activity, beyond the ability of most business users. For software to effectively facilitate goal-driven BPM, it must provide support for the following activities. Organize business processes around goals to be achieved by the business: Example goals are: deliver a product, close a deal, resolve an exception, and so on. Determine sub-goals required to achieve the desired end goal: Identify the required sub-goals by working back from the end goal one step at a time to the starting point or current position. The current position can be defined by many things, for example: number of outstanding deals, credit status of the subject customer, and so on. Allow the end goal to change part way through its fulfillment: For a business to achieve the required level of agility it must be possible to change direction or adapt goals quickly. For example, a customer status may change while a process is in motion. It is important to note that though sub-processes (dynamic or otherwise) and business rules are powerful facilities on their own, they are insufficient to support the dynamic nature of goal-driven BPM. Sub-processes (even dynamic ones) tend to have dependencies on one another that limit their flexibility. Also, a process can only incorporate those sub-processes that are explicitly included in the definition of that process. Therefore, if the goal of a process changes and requires a sub-process that was not included during the definition of the process, it would be very difficult and inefficient to add the sub-process needed to achieve the new goal. Finally, sub-processes are not time aware, limiting the complexity of the processes to which they can be applied. To overcome each of these shortcomings, specific software is required that directly supports the concept of goal-driven, dynamic BPM. For a more technical description of the limitations of dynamic sub-processes, see Appendix 1. THE KEY TO Goal-driven BPM: THE DEPENDENCY MAPPING LAYER In order to get the desired level of reuse it is necessary to break the dependencies between the abstract higher-level processes and the more specific lower-level processes. This can be done through a process dependency mapping layer that is external to the participating processes. This layer maps the abstract services required by a process onto the actual services provided by each sub-process. This is illustrated in Figure 6. G o a l - d r i v e n B U S I N E S S P R O C E S S M A N A G E M E N T 12

13 Figure 6: Processes organized as services Simple, dynamic sub-processes are not sufficient to solve this problem as the process itself would still need to determine the sub-process to invoke at runtime. Though this reduces the degree of dependency, it does not eliminate it. It is still likely that an overarching process will need to be modified when a new sub-process capable of providing one of its required services is made available. In any case, the process itself is made more complex by the requirement that it orchestrate its own required services. Where highly cohesive areas of a process require decomposition, or a generic, relatively static process element is required, sub-processes are a powerful and appropriate tool to use. Where reuse is required in a more fluid environment, such as dynamic, goal-driven BPM, a more abstract mapping capability is required. PUTTING IT ALL TOGETHER: CREATING EXECUTION PLANS Execution plans represent an overarching process created from process components. An effective tool for goal-driven BPM will use a simple metaphor, such as a project plan, to help users create execution plans. An execution plan contains a wealth of information. The sequence of process components is one part, of course, but execution plans also define restrictions such as A cannot start until B is finished, or A must start simultaneously with B, or A must start two hours after B starts. Each task within an execution plan also has information that is used to monitor the process during execution. Every task has a set of values appended during process design that help to identify when that task or possibly the entire plan is in jeopardy. Execution plans can be generated in three ways: Manual Creation: Processes can be created manually by business users immediately prior to runtime. This type of process creation is used either to create a template or, in exceptional cases, where no template or rules exist to handle the request. G o a l - d r i v e n B U S I N E S S P R O C E S S M A N A G E M E N T 13

14 It is not expected to be the standard process for execution plan generation, as it can be time-consuming. The required process components are selected from a library; the dependencies, temporal or otherwise, are defined; and the various alarm values are assigned to each task. Template Selection: Templates are created manually (as described above), then stored for future use. This is the way that the majority of execution plans are created, as a best practice is to identify most common requests and create execution templates for them; only the exceptions would need to be handled manually. When a new request comes in, the pertinent information from that request is used by a rules engine to select the appropriate template. The template already has all tasks sequenced, dependencies identified, and alarm values included. Automated Execution Plan Generation: An advanced form of goal-driven BPM is automatic process development. Organizations would use this type of execution plan generation if their business processes require significant customization for most requests, or are otherwise fluid, changing frequently. In such an environment, the end goal of a process will depend on the variables present at the point of execution and may change if those variables change during the process of execution. Defining processes or execution plan templates to handle all the combinations of these variables may be prohibitively expensive. Consider the example of order management within a telecommunications operator. In excess of 100 products could be offered by such an operator. Customers can order any combination of these products at any one time. Even if the unlikely combinations of products are excluded, this still results in the requirement for several thousand business processes (or templates) to fulfill the remaining combinations! The solution is to define the sets of process components for each process and then separately define the optimization rules for their combination. MONITORING THE EXECUTION PLAN One of the most important aspects of goal-driven BPM software is the visibility it provides into running execution plans. Without this visibility, there is little need for the flexibility provided. If you don t know that a problem is occurring, you certainly don t know what to do to fix it. Goal-driven BPM software should be time aware. This time awareness enables it to monitor service level agreements (SLAs) associated with overall goal achievement G o a l - d r i v e n B U S I N E S S P R O C E S S M A N A G E M E N T 14

15 (end-to-end business processes) and key performance indicators (KPIs) associated with the process components that make up the end-to-end process. Process component KPIs are monitored by tracking the timeliness of each process component. This allows the prediction of fixed milestones that will most likely not be met and the monitoring of projected completion time of processes that constitute the SLA for the end-to-end process. Users are alerted to execution plans that are in or near jeopardy. Action can then be taken to avoid or ameliorate the problem. For example, Figure 7 shows an execution plan developed with TIBCO iprocess Conductor, a component of TIBCO s BPM suite. The plan provides an intuitive view of each process component, its dependencies, and current status. The real-time status of the plan is marked by the light grey vertical line in the center. An example of a dependency is circled in red, showing that task 2 may not start until task 1 has completed. The predicted and actual durations of every process component are also shown. Jeopardy status is intuitively displayed: red areas denote existing problems and yellow areas potential problems. Figure 7: iprocess Conductor In-Flight Execution Plan Should it be determined that the jeopardy status of task 2 jeopardizes the entire plan, the user may decide to modify the process in-flight or completely change the goal. If the company has architected its business processes for automatic execution plan generation, this plan could also be dynamically reconfigured, based on the pre-defined rules. G o a l - d r i v e n B U S I N E S S P R O C E S S M A N A G E M E N T 15

16 Conclusion Goal-driven BPM, supported both by an effective methodology and technology, provides organizations with a new level of agility to support an unpredictable business environment. It delivers significant benefits, including: Faster, less expensive process creation via process component reuse Significant business user engagement in process design A better context for process monitoring The agility to fix more problems as they occur rather than after the fact The ability to dynamically adapt to new business conditions Goal-driven BPM mirrors the approach we take to goals in our own lives and lends itself to business user involvement in the creation and management of processes. While intuitive to implement, goal-driven BPM makes it possible to create highly complex processes with involved temporal dependencies between process components. When evaluating technologies to support goal-driven BPM, organizations should look for a solution that: Supports both business and technical users with tools appropriate to their skills and roles Breaks processes down into goals and sub-goals, with an abstraction layer to minimize dependencies Facilitates sub-goal reuse Tracks processes at the sub-goal level in order to find and fix problems before it s too late Takes action to adapt to events as they occur, even in the middle of a running process TIBCO has over 15 years experience in providing BPM solutions and has delivered the value of BPM to over 500,000 users at 800 companies. Contact us to start a dialogue on how goal-driven BPM can significantly improve process management for your organization. G o a l - d r i v e n B U S I N E S S P R O C E S S M A N A G E M E N T 16

17 About TIBCO iprocess Suite TIBCO iprocess Suite software enables business users and IT staff to implement goaldriven BPM while collaborating on the modeling, execution, and continuous improvement of business processes that span their organization. It is a rich suite of application modules with functionality designed to help organizations create business processes of whatever complexity they require. The components of the suite are: a business process modeling and simulation tool, a business rules engine, an integration platform, an engine for executing processes, real-time process monitoring, an end user workspace for process participants, and an analytics tool for analyzing processes. Using TIBCO iprocess Suite, organizations can break down processes into discrete, coherent components that facilitate reuse and fast process design and re-design. These components map logically to sub-goals that are concatenated to achieve a larger goal. TIBCO iprocess Conductor, along with TIBCO iprocess Engine, is able to dynamically combine a set of process components associated with required sub-goals, applying optimization as necessary and creating real-time visibility at the process component level. The fact that iprocess Conductor is time-aware means that if deadlines are missed as a running process progresses, the expected path can be predicted. If the process is in jeopardy, users will be alerted to that fact and can then adapt the process to avoid or mitigate any problems. With TIBCO iprocess Suite, organizations achieve: The highest level of flexibility to address the complexities of today s business problems Optimal efficiency and effectiveness with goal-driven business processes that can intelligently adapt to current conditions Ability to break processes down into goals and sub-goals, with an abstraction layer to minimize dependencies Better business process design with intuitive tools designed for business users High levels of process reuse for maximum ROI G o a l - d r i v e n B U S I N E S S P R O C E S S M A N A G E M E N T 17

18 Appendix 1 Why Sub-Processes Are Not Sufficient to Enable Goal-Driven BPM Sub-processes are a powerful facility for breaking down business processes into manageable chunks. When using sub-processes, a contiguous business process is broken down into a hierarchical set of sub-processes that can be represented as a tree. For example, a process to provide a mobile telephony product for a Mobile Virtual Network Operator (MVNO) could be broken down as shown in Figure 8: Figure 8: A process to provide a domestic mobile telephony product The provide voice and provide mobile internet sub-processes are largely generic (dealing with billing configuration, for example); they invoke further sub-processes to deal with the specifics of providing the actual service from the provider used by the MVNO. In this case, these services are GSM, WAP and MMS. G o a l - d r i v e n B U S I N E S S P R O C E S S M A N A G E M E N T 18

19 Figure 9 shows another product provided by the same MVNO. This is a product intended for business users. It also consists of voice and mobile internet services, but the method of delivery and the providers that are used are different. Unfortunately the opportunity for reuse is restricted in this case because the processes are dependent on sub-processes that provide the wrong specific services. This is not a process versioning issue as both products are being provided by the MVNO at the same time. Figure 9: Opportunity for reuse is restricted Global Headquarters 3303 Hillview Avenue Palo Alto, CA Tel: Toll Free: Fax: , TIBCO Software Inc. All rights reserved. TIBCO, the TIBCO logo, The Power of Now, TIBCO Software, and TIBCO iprocess are trademarks or registered trademarks of TIBCO Software Inc. in the United States and/or other countries. All other product and company names and marks mentioned in this document are the property of their respective owners and are mentioned for identification purposes only