Business process management

Improving a knowledgeintense business process using knowledge management

Dr Peter Dalmaris
Futureshock Research

Dr Bill Hall
Tenix Defence

About my project
A framework for the improvement of knowledge-intense business processes.

Company A Theoretical Research (literature, theory-building)

Company B

Company C Validation of the framework.

peter.dalmaris@futureshock.com.au

Research objective
n To

develop the Knowledge-Based Process Improvement framework. n The development was based on theoretical research and case-study based research. n Three case studies were completed. n The first two were used to develop and test the framework the last was used to validate it.
peter.dalmaris@futureshock.com.au

Case study objective

To apply, test, and improve a framework for the improvement of knowledge-intense business processes using knowledge management.

peter.dalmaris@futureshock.com.au

What kind of companies?

n Companies

that are knowledge-intense.

Definition: A knowledge-intense organisation is one that depends on business processes that are high in knowledge intensity and complexity.

peter.dalmaris@futureshock.com.au

Overview of the KBPI

n Based

on Karl Poppers evolutionary epistemology. Answers the question what is knowledge. n Describes a business process in terms of a formal ontology. n Uses an analytical methodology for identifying areas for potential improvement.
peter.dalmaris@futureshock.com.au

Overview of the KBPI

tion ss A uditin ce A n a l ys ing ce E va l u a odell nthe si s g is Proc e ma n ss M ve me nt Sy

This presentation focuses on these components of the KBPI

Perfo r

Proc e

Improvement methodology components

ma n

Perfo r

Impr o

TOOLS

Auditing and analysis tools facilitate process improvement tasks A guide to the improvement process Explicit specification of the concept of Business Process Fundamental assumptions about knowledge

IMPROVEMENT METHODOLOGY PROCESS ONTOLOGY EPISTEMOLOGY

peter.dalmaris@futureshock.com.au

KBPI Process Ontology

n A

formal language for describing a business process n Used to built a formal model of a business process

peter.dalmaris@futureshock.com.au

Normal Classes
The KBPI Process Ontology is composed of the top-level normal classes and eight abstract classes (next slide).

peter.dalmaris@futureshock.com.au

Abstract Classes

peter.dalmaris@futureshock.com.au

How is this ontology used?

n Used

to build tools that aid in capturing and analysing a business process instance. n Such a tool was build, based on Protg, a free ontology editor from Stanford Medical Informatics

peter.dalmaris@futureshock.com.au

Improvement methodology
n Designed

as a how-to guide for improving business processes. n Defines the process improvement process. n Composed of the Audit, Analysis, and Design stages.

peter.dalmaris@futureshock.com.au

Improvement methodology
Audit: Probing, current state of the process (AS IS) Analysis: Improvement

Process Members

Functions Knowledge Knowledge Knowledge Transactions Tools Paths

Knowledge Knowledge Transformations Objects

Environment: constraints, policies, targets

Identify potential improvement areas (desired process performance)

improvement configuration of process classes

Design: Result (AS COULD)

peter.dalmaris@futureshock.com.au

Two levels of improvement

Functions
Members Knowledge Objects Knowledge Transformations Knowledge Tools
Function level

Knowledge Paths
Knowledge Tools Knowledge Transactions
Process level

peter.dalmaris@futureshock.com.au

Process level improvement

Operations on Knowledge Path class instances

KP 1

KP1: Find all Knowledge Paths

KP 2 KP 3 KP 4

For each Knowledge Path class instance: KP2: Designate performance descriptors. KP3: Determine current performance. KP4: Determine desired performance.

Operations on other class instances

For each of Knowledge Transaction and Knowledge Tool class instances : KT: Define the Knowledge Transformation instance. KT TR TR: Define the Knowledge Transaction instance. For each of KT, TR, evaluate their current status and the impact of their performance on the Knowledge Path performance.

Error discovery and solution design

E KX

For each non-alignment: E: Find the likely causes. S: Design a possible solution.

peter.dalmaris@futureshock.com.au

Function level improvement

Operations on Function class instances

F1

F1: Find all knowledge intensive functions

F2 F3 F4

For each Function class instance: F2: Designate performance descriptors. F3: Determine current performance. F4: Determine desired performance.

Operations on other class instances

KT

For each of Process member, Knowledge Object, Knowledge Transformation and Knowledge Tool class instances : KT: Define the Knowledge Tool instance. KO KO: Define the Knowledge Object instance. KX: Define the Knowledge Transformation instance. PM: Define the Process Member instance. Determine their Critical Knowledge Success Factors. For each of KT, KO, KX, PM, evaluate their current status and the impact of their performance on the Function performance. For each non-alignment:

PM KX

Error discovery and solution design

E KX

E: Find the likely causes. S: Design a possible solution.

peter.dalmaris@futureshock.com.au

Visual analysis
The red line encloses process tasks that are involved in the processing of the same knowledge object. This is generally called a knowledge path.

Label shows the actual format with which knowledge is encoded, the actual system utilised for its transport, and their general category

peter.dalmaris@futureshock.com.au

KBPI deliverables
n An

AS IS process report

Provides

a detailed description of the business process. Identifies areas of potential improvement at the process level and function level.
n An

AS COULD process report

Addresses

the areas of potential improvement identified in the AS IS report. Provides recommendations for improvement.
peter.dalmaris@futureshock.com.au

Importance of KBPI framework

n Offers

a systematic way for improving knowledge-intense business processes. n As part of the improvement process:
the

organisation gains detailed knowledge of its own processes Changes to the process are rationalised based on their impact to the process

peter.dalmaris@futureshock.com.au

Importance of KBPI framework

n For

the first time (to the best of my knowledge), process knowledge becomes a central resource and consideration for process improvement. n Execution is transparent and straightforward. n Rule-based analysis: happy to get my self out of the job. n Predictable execution time.
peter.dalmaris@futureshock.com.au

How KBPI helped companies

n Company

#1 (low-tech): Discovered and documented numerous knowledge bottlenecks between company and contractors. n Company #2 (high-tech): Discovered and documented knowledge system redundancies leading to overly complicated knowledge processes. n Company #3 (Tenix, mid-tech): Discovered and documented poor utilisation of existing systems leading to waste of time and effort.
peter.dalmaris@futureshock.com.au

Thank you
n Questions? n Also

visit http://www.futureshock.com.au for a long paper of this presentation

Dr Peter Dalmaris is a lecturer and consultant based in Sydney. He has a PhD in Knowledge Management and Business Process Management, a Bachelors in Electrical Engineering, a Masters in Information Systems Engineering, and a Masters in Knowledge Management. Recently he started Futureshock Research, a Sydney company that seeks to continue the development of the KBPI, introduce related products (especially software) to the market, and provide consultancy services.
peter.dalmaris@futureshock.com.au