Business Process Modeling with BPMN. Dr. Darius Šilingas Head of Solutions Department
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1 Business Process Modeling with BPMN Dr. Darius Šilingas Head of Solutions Department No Magic Europe, 2012
2 About Instructor Dr. Darius Šilingas q Principal Consultant and Head of Solutions Department at No Magic Europe q Expert in information system and business modeling, lead ~200 training and consultancy sessions in 20 countries q Organizer of annual conference Business Process Management in Practice in Lithuania q Owner of LinkedIn BPM discussion group Verslo procesų valdymas (in Lithuania) No Magic Europe,
3 Introduction to BPM Introduction to BPMN Practical Modeling Session BPMN Best Practices Wrap up
4 Zachman Enterprise Architecture Model WHO? (People) WHAT? (Data) HOW? (Process) WHEN? (Events) WHERE? (Network) WHY? (Motivation) Business Model Roles and Employees Domain Vocabulary Business Processes Business Events, Time Constraints Organization Structure Vision, Mission, Business Goals System Model Technology Model No Magic Europe,
5 Organization Business Architecture Vision, Mision, Strategy, Tactics, Business Goals, etc. orient Management manage People Physical Resources Information Systems costs Finance revenue Business Processes No Magic Europe,
6 What Is Business Process? BUSINESS PROCESS is a set of related activities, which is performed by organization in order to create business value (product, service, document) and achieve business goals. Examples: " Provide Loan " Organize Conference " Prepare Annual Sales Plan " Perform Financial Audit for Organization " Handle Customer Incident Report "... No Magic Europe,
7 Business Process Characteristics 1. Business process is DISCRETE ü Well-defined START ü Well-defined END(S) 2. Successfully completed business process CREATES BUSINESS VALUE 3. Business process is COMPOSED FROM ACTIVITIES 4. In most cases, the SEQUENCE of activities is important 5. Business process is REUSABLE ü Unique results are usually achieved in projects No Magic Europe,
8 What Is Business Process Architecture? BUSINESS PROCESS ARCHITECTURE is a overall set of organization processes grouped in hierarchical process domains (Sales, Customer Support, Accounting, Marketing, Human Resource Management) and relationships between these processes. No Magic Europe,
9 Business Process Management BUSINESS PROCESS MANAGEMENT (BPM) is modern management methodology, which enables better organization performance by defining, organizing and continuously optimizing business processes. No Magic Europe,
10 Process-Oriented vs. Function-Oriented Organization BPM initiatives often try to change organizations from traditional function-oriented management to process-oriented management. Function-oriented approach: organization is composed from functional entities (departments) that produce business value. Process-oriented approach: organization is composed from processes that produce business value. No Magic Europe,
11 Business Process Place in Organization Ship Model Vision Business Goal Business Goal Business Goal Business Process Business Process Business Process Business Process Function Function Function Information System Information System No Magic Europe,
12 Advantages of BPM + Pragmatics of chosen analysis unit - business processes are naturally oriented to producing business value, thus improving processes directly improves organization capability to achieve business goals + Discovery of new features - start, end, duration, sequence + Reusability - business processes are similar for all the organizations in the same business domain Process orientation does not replace but rather supplements functional orientation - there is still a need for specialized functional competencies. No Magic Europe,
13 Monitoring Business Processes No Magic Europe,
14 Quantitative Business Process Management You can manage only what you are able to measure METRIC - a view on statistical data providing insights into important aspects of a business process. KEY PERFORMANCE INDICATOR (KPI) is the most important metric, which reflects business process (in)efficiency. Metric examples: " Return on investment, profitability " Sales percentage from quality leads " A ratio of reported defects to existing users " Process execution duration and its variability "... No Magic Europe,
15 Measuring Process KPIs Quality Successful end % Defect rate Customer satisfaction Business Process Time Mean execution duration Idle duration Duration variation Costs Financial costs Human work amount Use of physical resources No Magic Europe,
16 Organization Maturity According to BPMM 4 th Level Predictable 5t Level Op,mizing Capacity Management Changes Management Con,nuous improvement prac,ces 3 rd Level Standardized Process Management Quan,ta,ve management prac,ces 2 nd Level Managed Work Unit Management Standardized prac,ces 1 st Level Ini,al Inconsistent management Reusable prac,ces No Magic Europe,
17 Let s Guess the Name of the Dragon What are the Risks? No Magic Europe,
18 Introduction to BPM Introduction to BPMN Practical Modeling Session BPMN Best Practices Wrap up
19 Challenge of Informal Business Process Drawings How to optimize VIP customer service? No Magic Europe,
20 No Magic Europe,
21 Standards for Organization Business Architecture OSM (Organization Structure Metamodel) BMM (Business Motivation Model) Vision, Mision, Strategy, Tactics, Business Goals, etc. People Physical Resources Information Systems Business Processes SBVR No Magic Europe, 2012 (Structured Business Vocabulary and Rules) 21
22 What Is BPMN? BPMN stands for Business Process Model and Notation. BPMN provides a standardized graphical notation for modeling business processes. BPMN is understandable by all stakeholders Business analysts that create the initial drafts of the processes; Excellence people who monitor and optimize those processes; Developers responsible for implementing systems. BPMN 2.0 (Business Process Model and Notation) standard is developed by OMG (Object Management Group): BPMN 1.0 released in 2004 BPMN 2.0 beta1 released in September 2009 BPMN 2.0 released in January 2011 No Magic Europe,
23 BPMN Scope BPMN is constrained to support only the concepts of modeling that are applicable to business processes. BPMN does NOT cover: Organizational structures and Resources Functional breakdowns Data and information models Strategy Business Rules This can be covered in additional textual documents or UML models. No Magic Europe,
24 BPMN - Graphical Notation Language ü Visual ü Simple ü Easy to learn ü Unambiguous ü Can be used to generate code ü Widely used No Magic Europe,
25 BPMN 2.0 Diagrams Process Diagram Choreography Diagram Collaboration Diagram Conversations in Collaboration Diagram No Magic Europe,
26 BPMN Basics: Process Diagram PROCESS describes a sequence or flow of activities in an organization showing how the business works. PROCESS DIAGRAM is used to describe: High-level private process activities (not functional breakdown) Detailed private business process As-is or old business process To-be or new business process No Magic Europe,
27 BPMN Elements The five basic categories of BPMN elements are: Flow Objects Event / Activity / Gateway Data Connecting Objects Swimlanes Artifacts Data object / Data input / Data output / Data store Sequence flow / Message flow / Association / Data association Pool / Lane Group / Text annotation No Magic Europe,
28 Flow Objects: Events An EVENT is something that happens during the process. These events affect the flow of the process and usually have a CAUSE (trigger) or an IMPACT(result). There are three main types of events, based on WHEN they affect the flow: ü START ü INTERMEDIATE ü END Events can be further specialized by trigger/result type: timer, message, link, cancel, error, terminate, No Magic Europe,
29 Start Event START EVENT indicates where Business Process begins. ü None Start Event ü Message Start Event ü Timer Start Event Although there is recommended to have only one Start Event in a process, BPMN specification allows adding multiple Start Events. No Magic Europe, 2012
30 End Event END EVENT indicates the end of path in a Business Process. ü None End Event ü Cancel End Event Process often will have more than one End Event. Use different End Events to identify distinct Process end states. No Magic Europe, 2012
31 Flow Objects: Activities An ACTIVITY is a generic term of work that company performs. An activity can be atomic (task) or non-atomic (compound). The types of activities are: ü Task (atomic) ü Sub-process (compound) ü Call activity (reference) Activity special attributes: No Magic Europe,
32 Activities: Task A TASK is atomic activity performed within a process. Naming conventions: Verb + Noun BPMN defines specific task types: ü Task ü User task ü Service task No Magic Europe, 2012
33 Connecting Objects: Sequence Flow SEQUENCE FLOW defines how process flow is executed. Request for a Loan Register Loan Request Prepare Loan Proposal Send Loan Proposal Loan Proposal is sent No Magic Europe, 2012
34 Intermediate Event INTERMEDIATE EVENT represents that something happened during a process. There are two types of Intermediate Events: ü Catching Intermediate Events ü Throwing Intermediate Events Most popular Intermediate Events: ü Catching Message Intermediate Event ü Catching Timer Intermediate Event ü Link Intermediate Events No Magic Europe, 2012
35 Boundary Event BOUNDARY EVENT indicates that while attached-to Activity is running, event is listening for the trigger signal. Boundary Event types: ü Interrupting boundary event aborts activity and process is continued of exceptional flow ü Non-Interrupting boundary event splits process to parallel flows Most popular Boundary Events triggers: ü Message Boundary Event ü Timer Boundary Event ü Error Boundary Event No Magic Europe,
36 Non-Interrupting and Interrupting Boundary Events Non-Interrupting boundary event splits process to parallel flows Interrupting boundary event aborts activity and process is continued of exceptional flow No Magic Europe,
37 Catching / Throwing Events Events come in two flavors : Events that Catch Trigger Events that Throw Trigger Trigger thrown by Throw Event may be caught by Catch Event. No Magic Europe,
38 Activities: SubProcess Modelers can visualize sub-process activities on the parent process diagram inside the sub-process symbol. ü Showing the details of a process with another business process diagram is more common; ü Expanding details should be used only for internal sub-processes. No Magic Europe,
39 Ad Hoc SubProcess AD HOC SUBPROCESS shows that the order of the contained activities in SubProcess is not important. ü Activities may be performed in any order. ü Ad Hoc SubProcess is finished, when all its activities are finished. No Magic Europe,
40 Activities: Call Activity CALL ACTIVITY enables a global process reuse in process modeling. ü Call Activity is displayed with a thick line border; ü Referenced process name is displayed on Call Activity shape. No Magic Europe, 2012
41 Flow Objects: Gateways A GATEWAY is used to control the divergence and convergence of sequence flow it will determine branching, merging, splitting and joining of paths. ü Examples: Condition true?, Choose color,... No Magic Europe,
42 Exclusive Gateway and Merge EXCLUSIVE GATEWAY splits flow into two or more exclusive alternative paths. Only one of the alternative paths may be chosen to continue. ü One of the flows going from the OR-merge is activated based on data ü Typically, it is used in combination with the OR-split pattern MERGE allows to join a set of alternative paths into a single path. ü After the OR-join the activities are not based on conditions. No Magic Europe,
43 Event Based Gateway EVENT BASED GATEWAY represents a type of exclusive decision that is based on an event that occurs during the process. ü Once the event occurs (i.e., the choice is made), then the other alternative paths will be disabled. No Magic Europe,
44 Parallel Gateway and Synchronization PARALLEL GATEWAY allows to perform activities concurrently, rather than serially. A single path through the process is split into two or more paths so that multiple activities will start at the same time. ü The concurrent behavior starts after the AND-split SYNCHRONIZATION combines the paths that were generated by a Parallel Gateway. The final set of activities within the flows must be completed before the process can continue. ü The process behavior gets back to sequential after the AND-merge. No Magic Europe,
45 Connecting Objects: Sequence Flow SEQUENCE FLOW is used to show the order that activities are performed in a process. ü Sequence Flow may have Condition defined ü Sequence Flow may be marked as default No Magic Europe, 2012
46 Flow of the Process ü Sequence Flow of a Process starts from a Start Event and continues through activities via alternative and parallel paths until it ends at an End Event. ü Shows what work should be performed in a Process. No Magic Europe, 2012
47 Data There are four types of data elements: ü Data Object ü Data Store ü Data Input ü Data Output No Magic Europe,
48 Connecting Objects: Data Association DATA ASSOCIATION is used to associate data with flow objects. No Magic Europe, 2012
49 Artifacts ARTIFACTS are used to provide additional information about the process. Types of artifacts: ü Text annotation ü Group Text Annotation Group No Magic Europe,
50 A Minimal Subset of BPMN Elements No Magic Europe,
51 Some BPMN Naming Conventions Uniqueness ü Every name should be unique (e.g. having two elements with same name on the diagram means, that the same element is used multiple times) Naming Activities ü Verb + (adjective/descriptor) + noun, e.g. Verify Account Naming Gateways and Flows ü No names on gateways or indicate referenced business rule name ü Conditions on given outgoing flows, e.g. balance > 0, balance <= 0 Naming Events ü Message Name, Date or Duration, e.g. Change Request, 1 Week, Authorization Error Naming Data Objects ü Singular Noun, e.g. Loan Application, Loan Agreement General Considerations ü Names should not be too long avoid longer than 5 words in names ü Be consistent with used words avoid synonyms, ambiguous phrases, etc. ü Avoid using and, or this typically indicates a need to split model element into several ones ü If name consists of several words, use English title capitalization rules No Magic Europe,
52 Introduction to BPM Introduction to BPMN Practical Modeling Session BPMN Best Practices Wrap up No Magic Europe, 2012
53 Lanes and Pools A POOL represents a Participant in the Process ü specific business entity e.g., a company ü a more general business role e.g., a buyer, seller, or manufacturer A LANE is a sub-partition within a Pool. Lanes are often used for: ü Internal roles (e.g., manager, associate) ü Systems (e.g.., an enterprise application) ü Internal departments (e.g., sales, shipping) No Magic Europe,
54 Lanes and Pools Sample No Magic Europe,
55 Collaboration Diagram COLLABORATION BUSINESS PROCESS depicts the interactions between two or more business entities. These interactions are defined as a sequence of activities that represent the message exchange patterns between the entities involved. COLLABORATION DIAGRAMS depict a global point of view. No Magic Europe,
56 Choreography Diagram Example No Magic Europe,
57 Introduction to BPM Introduction to BPMN Practical Modeling Session BPMN Best Practices Wrap up
58 From Bad Practices to Best Practices Bad Practices Best Practices 1. Different Understanding of Business Process Concept 1. Precise Business Process Concept Definition 2. Complex Diagrams 3. Mixed Naming 4. Modeling Minor Details 5. Slalom in Diagrams 6. Inventing Bicycle 7. Inconsistent Gateways 8. Repeating Events 2. Several Levels of Details 3. Naming Conventions 4. Documenting Minor Details 5. Clear Primary Scenario 6. Applying Process Patterns 7. Consistent Gateways 8. Proper Event Context No Magic Europe,
59 Mistake No.1: Different Understanding of Business Process Business process is the series of steps that a business executes to produce a product or service. Rummler and Brache At its most generic, any set of activities performed by a business that is initiated by an event, transforms information, materials or business commitments, and produces an output. Value chains and large-scale business processes produce outputs that are valued by customers. Other processes generate outputs that are valued by other processes. BP Trends Common samples of differently understood processes: ü Sales ü Process Order No Magic Europe,
60 Best Practice No.1: Precise Definition of Business Process Business Process is a reusable set of related activities, which is performed by organization in order to create business value (product, service, document) leading towards achieving business goals. Examples: ü Provide Loan ü Fulfill Order ü Organize Conference ü Prepare Annual Sales Plan ü Handle Customer Incident Report ü Change Customer s Rate Plan ü Perform Financial Audit ü Can you define... clear beginning?... clear end?... the business value process brings? a set of composing activities? reusable sequence of the actions? No Magic Europe,
61 Mistake No.2: Too Complex Diagrams The largest diagram we came across: ~ 450 actions ~ 950 flows No Magic Europe,
62 Best Practice No.2: Several Layers of Details No Magic Europe, 2012 The rule: up to 10 steps in one diagram Question: How many steps we can describe in 3 layers of details? 62
63 Mistake No.3: Inconsistent Naming ü Mixed naming hides inconsistent understanding! No Magic Europe,
64 Best Practice No.3: Use Naming Conventions The language that we speak shapes our thinking A formula for naming processes and activities: Strong Verb + Noun ü Emphasis on the achieved result, not on action! ü No conjunctions in names! ü Short name + documentation instead of long names! No Magic Europe,
65 Best Practice No.3: Refactored Process ü Action names focus on achieving the result ü No conjunctions in names ü Unnamed Gateway ü No long activity names: details are moved to documentation No Magic Europe,
66 Mistake No.4: Modeling Minor Details We can always add more and more business rules to the diagram. ü Is it worth putting it all to a diagram? No Magic Europe,
67 Best Practice No.4: Documenting Minor Details When required number of participants is not available, Head of Training Department can make a decision to run class if: ü There is urgent need to train employees ü Strategic partners/customers are registered to a class ü Cancellation costs will be higher than running costs No Magic Europe,
68 Mistake No.5 Slalom in the Diagrams Reading BPMN diagram is obscured by: ü Long, meandering, crossing lines ü Different size boxes ü Jumping in a timescale ü Mixed flow of the primary and alternative scenarios No Magic Europe,
69 Best Practice No.5: Clear Primary Scenario ü Primary scenario should be visible on one line ( ). ü It is recommended to start modeling from primary scenario and add secondary ones afterwards. ü All activities are the same size ü Shapes are aligned No Magic Europe,
70 Mistake No.6: Reinventing Bicycle ü Fresh-baked modelers often invent strange modeling approaches for well-known situations. No Magic Europe,
71 Mistake No.6: Reinventing Bicycle There is no delay to wait for the answer There is always 1 month delay No Magic Europe,
72 Best Practice No.6: Process Patterns Deferred Choice Pattern ü Process patterns provide bigger modeling components that enable creating simpler and more efficient process diagrams. No Magic Europe,
73 Best Practice No.6: Timer Events Patterns Scheduled Start Delay Timeout No Magic Europe,
74 Mistake No.7: Inconsistent Gateways No Magic Europe,
75 Best Practice No.7: Consistent Gateways No Magic Europe,
76 Mistake No.8: Repeating Events No Magic Europe,
77 Best Practice No.8: Proper Event Context ü A subprocess with attached event enables clearly define the scope of an event. No Magic Europe,
78 Wrap Up: Refactor Your Models ü Use standard notation ü Clearly define business process concept ü Apply naming conventions ü Refactor large diagrams to several layers of the details ü Exclude minor details from diagrams ü Keep primary scenario clear ü Create good looking diagrams ü Apply process patterns No Magic Europe,
79 How to Develop BPMN Modeling Culture? BPM Leader ü Communicates BPM vision ü Helps other employees to solve BPM problems Guidelines for Implementing Best Practices ü Naming conventions, diagram layout, bad vs. good examples ü BPM leader owns the document Regular model reviews ü Useful to involve external experts ü Share comments and suggestions Sharing experience inside and outside organization ü Confidentiality - do not discover concrete numbers ü Learning from own and others mistakes No Magic Europe,
80 More Information Is Available In ü Refactoring BPMN Models: From Bad Smells to Best Practices and Process Patterns Darius Šilingas, Edita Milevičienė No Magic Europe,
81 Introduction to BPM Introduction to BPMN Practical Modeling Session BPMN Best Practices Wrap up
82 Business Process Lifecycle: Continous Improvement Specify process and its relationships to business goals, organization roles, business rules, domain concepts Model Analyze Discuss process and its metrics, identify bottlenecks, suggest improvements Check actual process KPIs against planned ones Transform Monitor Business Process Lifecycle Reorganize business process taking into account its relationships to other business architecture elements Execute Run business processes and gather statistical data for monitoring and analysis Integrate Implement changes in information systems and people behavior No Magic Europe,
83 think BIG start SMALL and EVOLVE
84 Summary ü Business Process Management (BPM) is modern management methodology, which enables better organization performance by defining, organizing and continously optimizing business processes. ü Business process modeling enables understanding current situation (as-is) and define changes (to-be). ü BPMN is de facto standard for modeling business processes. ü BPM initiatives should achieve concrete business goals. ü Adoption of BPM should be incremental. ü Tools & standards only support BPM, people make it happen. No Magic Europe,
85 The End Thank You for Attention! Questions??? Let s Keep in Touch! No Magic Europe,
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