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Business Process

Management Systems
Madonna Nagy
Ashraf Abdelraouf
Agenda

Background on Business Process Management


Fundamentals of Business Process management
Overview of Business Process Management Systems
When to Use Business Process Management Systems
How to Evaluate Business Process Management Systems
Implementing Business Process Management
How do BPM tools provide more exibility and agility
Today: The Reality of Business Process Management
System
Business process perspectives : theoretical development
versus real world practice
Background on Business
Process Management
Early Process Concepts

Adam Smith, The wealth of nation (1776).


workers performing single steps in pin
manufacturing could produce far more pins than
workers engaged in manufacturing whole pins.
The productivity increase was orders of
magnitude higher, 48,000 pins by 10 person
teams compared to at most 20 per person
working independently.
Smith determined that the productivity increases
were due to the dexterity each worker obtained
Early Process Concepts

Winslow Taylor, The Principles of Scientific


Management (1911)
Time and motion studies to observe how different
workers perform their jobs and standardize work
activities on the most efficient work procedures
Standardization of materials, equipment, and work
methods for all activities in the manufacturing process
Systematic methods for selecting the best workers suited
for each job and provide them with training to perform
tasks that are standardized
Alignment of the workers pay to their output
Early Process Concepts

Henry Ford found practical uses for Taylors scientific


management theories
He offered one car model, the Model T, in one color,
black.
In his assembly line concept, Ford viewed manufacturing
of cars as a single process with sequenced activities.
Each worker performed a single task in a prescribed and
repeatable manner.
The moving assembly line replaced the nodal assembly
with owline
Modern process concepts

Total Quality Management


Philosophy: The purpose of an organization is
to sustain itself so that it can contribute to the
stability of the community, provide goods and
services to customers and provide an
environment for organization members to grow
Modern process concepts

Total Quality Management


Principles:
Focus on work processes quality problems are mostly dependent on
the work processes that designed and manufactured the products and
services
Analysis of variability uncontrolled variances are the primary causes
of quality problems, and these variances should be analyzed and
controlled by the front-line workers
Management by fact quality improvement programs should be
based on systematic data collection, analysis and experimentation for
solution implementation
Learning and continuous improvement quality improvement is
never-ending and employee learning is a major part for carrying out
quality improvements
Modern process concepts

Business Process Reengineering (BPR)


Methodology:
Instead of rationalizing tasks to eliminate bottlenecks,
process redesign should be performed on entire
processes to achieve desired business vision and
process objectives.
Identify the processes to be redesigned
understand and measure the existing processes.
identify how IT can be leveraged in the process
redesign.
implement a prototype of the process.
What is a process?

From a business perspective, a process is a


coordinated and standardized ow of activities
performed by people or machines, which can
traverse functional or departmental
boundaries to achieve a business objective
that creates value for internal or external
customers. the business process ought to
create
value.
Pocess
What is Process
Management?

Process management, based on a view of an


organization as a system of interlinked
processes, involves concerted efforts to map,
improve, and adhere to organizational
processes
What Process Management is
NOT?

BPM is NOT BPR

BPM is NOT EAI

BPM is NOT ERP

BPM is NOT Six Sigma


Fundamentals of Business
Process management
Business Process
Management

The origin of BPM as a need after


implementing TQM and BPR
BPM is a systemic, structured approach to
analyze, improve, control, and manage
processes with the aim of improving the
quality of products and services. BPM is
thereby the method by which an enterprises
Quality program (e.g., TQM)is carried out.
BPM Principles

Processes Are Assets


BPMs first principle is processes are assets that create
value for customers. customers. The customers, internal or
external, are the recipients of the results created by the
processes.
customers will not perceive value from standalone
functions.
Processes are actually responsible for the end-to-end work
of delivering value to the customer.
Organizations should invest in their processes as they do
in other assets.
For instance, Dell Computers core competence is in their
efficient configure-to-order online sales process.
BPM Principles

Processes Should Be Managed and


Continuously Improved
A managed process produces consistent value
to customers and has the foundation for the
process to be improved.
Management of processes entails the tasks of
measuring, monitoring, controlling, and
analyzing business processes.
Process improvement is facilitated by the
availability of process information.
BPM Principles

Information Technology (IT) Is an Essential


Enabler
In the new industrial engineering, business processes are
the focus for improvement, and IT is the key enabling tool.
IT is the key information provider for corporations
IT can provide real-time process information that is very
important for BPM to accomplish its tasks of monitoring
and controlling business processes. It is not feasible to
measure business processes real time without an
automated measurement mechanism.
Computer-Aided Design/Computer-Aided Manufacturing
(CAD/CAM) revolutionized the whole design to the
production process.
BPM Practices

Process-Oriented Organizational Structure


Process organization
Case management organization
Horizontal process management organization
Appoint Process Owners
Top-Down Commitment, Bottom-Up
Execution
Use Information Technology (IT) to
Manage Processes
Collaborate with Business Partners
BPM Lifecycle

1. Set organizational goals


2. Inventory all organizational processes
3. Rank organizational processes according to
contribution to organizational goals, available
benchmarks, and financial improvement potential
4. Choose the process that will contribute the most value
5. Determine whether an incremental or more radical
process improvement tool should be used
6. Implement process improvement project
7. Monitor and measure process
8. Repeat step 4
BPM Lifecycle
Overview of Business
Process Management
Systems
BPMS Key Capabilities

BPMS is a new class of software that allows


organizations to devise process centric information
technology solutions with the following capabilities:
Closer business involvement in designing ITenabled
business process solutions
Ability to integrate people and systems that participate in
business processes
Ability to simulate business processes to design the most
optimal processes for implementation
Ability to monitor, control, and improve business processes
in real time
Ability to effect change on existing business processes in
real time without an elaborate process conversion effort
BPMS
BPMS Integration
Benefits of BPMS to quality

BPMS can help in the DMAIC phases (Define,


Measure, Analyze, Implement, and Control)
of quality programs implementation
BPMS contains, in graphical form, the
detailed business process ow of the
business process to be improved. This helps
project members to understand the current
business process during the Define phase.
Benefits of BPMS to quality

BPMS contains rich statistics regarding


process performance, this helps the
Measure phase greatly.
It is increasingly common to see analytical
tools available with BPM technology. These
analytical tools allow the process information
to be mined and dissected. This capability
would help the Analyze stage
Benefits of BPMS to quality

The use of the business process simulator


helps validate the solution alternatives. Thus,
BPMS could greatly facilitate many steps
performed in the Improve stage.
The business process designer keeps detailed
documentation on each process activity. This
function satisfies the process documentation
step
in the Control stage.
System-to-System
Processes

System-to-system processes involve only


applications.
System-to-System
Processes
Person-to-System Processes

A person-to-system process is a process


initiated by human participant.
Typically, a person-to-system process
involves a simple Web page that a human
participant can complete. Once the Web
page has been submitted, it creates
transactions in the backend applications.
Person-to-System Processes
Person-to-Person Processes

In person-to-person processes, multiple


people are involved collaboratively to
complete business transactions.
Person-to-Person Processes
When to Use Business
Process Management
Systems
When to use BPM

Consider implementing a BPMS whenever:


Business processes need to be maintained in
several versions, for different product categories
or for different markets
Business processes need to be extremely mutable
There are opportunities that have been identified
for existing applications to work with one another
but these include a huge element of custom code
that cannot easily be moved into an ERP
How to Evaluate Business
Process Management
Systems
BPM evaluation

Requirements Management

Process design

Process deployment and execution

System Administration
Implementing Business
Process Management
Implementing Business Process
Management

Step 1: educate your executive team


Expect skepticism
Focus on extending available strategies
Join (or create) a user organization.
Use workshops to encourage process thinking
in new areas
Develop a library of useful process resources
Implementing Business Process
Management

STEP 2: PICK THE RIGHT TARGET


Implementing Business Process
Management

STEP 2: PICK THE RIGHT TARGET


(CONTD)
Implementing Business Process
Management

STEP 3: CULTIVATE A RICH AND VARIED


SET OF APPLIED BEHAVIORAL AND
COGNITIVE SKILLS
Applied skills or subject matter expertise
Behavioral skills are essential to work
collaboratively with others
Cognitive skills are needed to create new
solutions
How do BPM tools provide
more exibility and agilityY
How do BPM tools provide more
exibility and agility
How do BPM tools provide more
exibility and agility
How do BPM tools provide more
exibility and agility
Today: The Reality of Business
Process Management System
Today: The Reality of Business
Process Management System

Reduce time-to-market and ease continuous


process

A new method of collaborative


development for business and IT

Including business users in the design


Business process perspectives :
theoretical development versus
real world practice
Theoretical development versus
real world practice

Business process definitions in


literature versus the service industry
perception of business process
Both the academic researchers and service
industry practitioners feel more confident in
dealing with structured and defined business
processes.
The lack of concrete process management
results in vague knowledge
Theoretical development versus
real world practice

Business process definitions in


literature versus the service industry
perception of business process
Theoretical development versus
real world practice

Business process modelling both in the


literature and in the service industry
Investigation of business process modeling both in the
literature and in the service industry proved that
simple diagrammatic techniques such as owcharts still
dominate the area
Business processes need standards such as BPMN that
provide exclusive business process-oriented modelling
Process mining is an area that needs to gain further
appreciation in order to be incorporated in the service
industry practice
Theoretical development versus
real world practice

Business process modelling both in


the literature and in the service
industry
Due to the qualitative nature of business
process modelling, quantitative analysis and
process evaluation are hard to apply
Focus on the quantitative KPIs they would
like business processes to be evaluated
with
Theoretical development versus
real world practice

Business process modelling both in


the literature and in the service
industry