BPM Brush-up. MSc BIS Module: Business Process Management, AS Rainer Telesko, Knut Hinkelmann MSc Business Information Systems

Transcription

1 BPM Brush-up MSc BIS Module: Business Process Management, AS 2013

2 What is a process? A Business Process is a " planned response to an operational business event " 1) A process is simply a set of activities and transactions that an organization conducts on a regular basis in order to achieve its objectives. 2) 1) J.C. Frazer, cited by (Ross & Lam 2010, p. 72) 2) Knowledge Work 2

3 What is a process? It can be simple (i.e. order fulfillment) or complex (i.e. new product development) short-running (i.e. employee on-boarding) or long-running (i.e. regulatory compliance), function-specific (i.e. proposal management) or industry-specific (i.e. energy procurement). It can exist within a single department (i.e. billing), run throughout the entire enterprise (i.e. strategic sourcing), or extend across the whole value chain (i.e. supply chain management). 3

4 What is BPM? In its simplest form, BPM is software that automates, executes, and monitors business processes from beginning to end by connecting people to people, applications to applications, and people to applications. Correct definition? 4

5 What is BPM? Better: BPM is more than just a collection of technologies; it is a business management methodology that covers how people work with people, how systems work with systems, and how the two camps work together. 5

6 Significance of BPM? More and more organizational leaders are realizing that business process management creates significant competitive advantage. According to Gartner the BPMS market reached an estimated $1.7 billion in total software spending in Gartner s Magic Quadrant for Business Process Management Suites 2007 report states that the BPMS will have a Compound Annual Growth Rate (CAGR) of 24% from 2006 to 2011, resulting in a $5.1 billion software revenue market by Gartner further states, It is one of the fastest-growing segments in software, and it is forecast to remain so during the next five years. Many organizations are now focused on making BPM a program, not just a project. 6

7 Management Cycle Source of Figure: Management is a cycle of planning, execution, analysis and replanning Well-known is the Deming cycle (named after W. E. Deming) also known as the PDCA cycle Plan: Establish the objectives and processes necessary to deliver results Do: Implement the plan, execute the process Check: Compare the actual results against the expected results Act (Adjust): Request corrective actions Process Mining 7

8 BPM cycle Plan Do Act Check 8

9 Reminder: The BPMS *) - Paradigm How do we make our money? How do we produce the products? products/ services business processes (incl. organisation, resources, rules ) Strategic Decision Design How do we translate processes into action? workflows (incl. organisation, data, IT applications ) Implementation How do we coordinate the activities? workflow management information systems, Execution How can we improve our business? indicators Performance Evaluation *) BPMS - Business Process Management Systems - developed by Prof. Karagiannis, University of Vienna, BOC GmbH Business process Management 9

10 BPM Procedure Models For BPM there exist several procedure models, which can be regarded as specialisations of the PDCA cycle, e.g. the BPMS paradigm Continuous Improvements covers the phases Check and Act/Adjust Strategic Decision Plan Act/Adjust Design Acting is not a specific phase, but is Replanning. Implementation Do Execution Performance Evaluation Check Process Mining 10

11 Business Process Management and Enterprise Architecture Planning and Acting include (re-)modeling the enterprise architecture. Business Architecture Strategic Decision Design IT/Application Architecture Implementation Execution Performance Evaluation Process Mining 11

12 Elements of a BPM suite Process Engine a robust platform for modeling and executing process-based applications, including business rules Business Analytics enable managers to identify business issues, trends, and opportunities with reports and dashboards and react accordingly Content Management provides a system for storing and securing electronic documents, images, and other files Collaboration Tools remove intra- and interdepartmental communication barriers through discussion forums, dynamic workspaces, and message boards 12

13 Elements of a BPM suite 13

14 Business drivers behind BPM Business drivers New compliance and risk management scrutiny driving standards and policies enforcement Satisfying customers on-demand, with agility to respond to competitive threats and constant change Pressure for operational efficiency and cost reduction with increased performance visibility BPM delivers proven Return-On-Investment (ROI) in these crucial areas by positively impacting time, quality, productivity, and other factors. 14

15 Business drivers behind BPM 15

16 Possible business impacts of BPM (1/3) Decreased Costs streamlining business operations automating repetitive tasks optimizing workflows Reusing best practices Increased Revenue increasing product output accelerating cycle time improving customer service 16

17 Possible business impacts of BPM (2/3) Improved Agility: intangible benefits Intelligent rules ensure that processes adapt automatically to changes in the business environment. Collaborative tools bridge department boundaries while improving and speeding decision-making. In-flight process modifications accelerate response to change by dynamically rerouting processes in real time (real-time Enterprise SOA). 17

18 Possible business impacts of BPM (3/3) 18

19 Where to start with BPM? HIPAA = Health Insurance Portability and Accountability Act 19

20 BPM organization BPM projects across the organization! => need for BPM Center of Excellence (CoE). The creation of BPM CoEs has a direct impact on the level of success attained through BPM initiatives. A report from research firm Forrester noted that almost half (49%) of the enterprises that reported clear and measurable benefits from their BPM efforts had a BPM COE in place; only 10% of the group reporting mixed results had a BPM COE in place. ( BPM Has Become Mainstream, K. Vollmer, Feb. 19, 2008). 20