Business Process

Modeling

Sandy Kemsley
Kemsley Design Ltd.
www.column2.com

Copyright Kemsley Design Ltd., 2007

Agenda

Whats in your processes?

Process modeling notation/standards

Modeling for ROI

Changing processes = changing job

roles

Copyright Kemsley Design Ltd., 2007

Whats in your
processes?

Copyright Kemsley Design Ltd., 2007

Kicking it off

Human intervention
Scanned document

External event

Invoked as web service

Copyright Kemsley Design Ltd., 2007

Types of steps/tasks

Human-facing:
Transactional heads-down
Occasional participant
Collaboration
System:
Web service orchestration
Legacy application integration
Content management integration

Copyright Kemsley Design Ltd., 2007

Other considerations

External participants
Process monitoring

Collecting analytics data

Frequency of process/rule/staff
changes

Copyright Kemsley Design Ltd., 2007

A short segue on BPM/SOA

BPM:
Management practice
Tools for automating processes

SOA:
Architectural philosophy
Design standards-based services to
access system functionality

Copyright Kemsley Design Ltd., 2007

 BPM and SOA

Process Process Process Process

Step 1 Step 2 Step 3 Step 4

Service A Service B Service C

Service D Service E
Legacy ERP
Database
System System

Copyright Kemsley Design Ltd., 2007

BPM and SOA together

BPM is the killer app for SOA; SOA

is the enabling infrastructure for BPM
SOA alone only allows you to design
and build a set of services
BPM alone would require custom
coding for each system integration
BPM + SOA orchestrates people and
services into a business process
Copyright Kemsley Design Ltd., 2007
SOA in process modeling

Discovering services
What services already exist
Whether existing services meet the
needs
Specifying services
What new services need to be created
What legacy functions need to be
wrapped in services
Copyright Kemsley Design Ltd., 2007
Simulation and optimization

Identify key performance indicators

Estimate parameters:
Arrivals
Time per step
Participants
Cost per step

Run and compare scenarios

Copyright Kemsley Design Ltd., 2007

Simulation example

Copyright Kemsley Design Ltd., 2007

Process modeling
standards

Copyright Kemsley Design Ltd., 2007

Graphical notation standard

BPMN (Business Process Modeling

Notation) = diagramming standard for
drawing business processes
Method of communicating processes:
Understandable by business users
and unambiguous
Reduces translation errors between
business and IT
Easy transition between tools
Copyright Kemsley Design Ltd., 2007
BPMN flow objects

Event

Activity

Gateway

Copyright Kemsley Design Ltd., 2007

BPMN connecting objects

Sequence flow

Message flow

Association

Copyright Kemsley Design Ltd., 2007

BPMN swimlanes

Pool

Lanes

Copyright Kemsley Design Ltd., 2007

BPMN artifacts

Data object

Group

Annotation

Copyright Kemsley Design Ltd., 2007

BPMN example: exception
handling

Copyright Kemsley Design Ltd., 2007

BPMN example: transaction

Copyright Kemsley Design Ltd., 2007

BPMN example: funds
transfer

Copyright Kemsley Design Ltd., 2007

Modeling for ROI

Copyright Kemsley Design Ltd., 2007

Areas of process innovation
Automational Geographical
Informational Integrative
Sequential Intellectual
Tracking Disintermediating
Analytical

Source: Process Innovation, Thomas H. Davenport, 1992

Copyright Kemsley Design Ltd., 2007

Improve efficiencies

Automate manual work steps

Directly integrate data between
systems
Provide process monitoring and
control
Automate process statistics gathering
and analysis

Copyright Kemsley Design Ltd., 2007

Cut out the middle man

Provide customer self-service to

initiate processes
Provide process visibility to customer

Copyright Kemsley Design Ltd., 2007

Location, location, location

Share redundant processes between

business units
Identify steps that can be completed
in isolation
Automate escalation and handoffs

Allow remote work

Copyright Kemsley Design Ltd., 2007

ROI: reduce costs

Reduce manual tasks

Reduce error rates

Allow customer self-service

Reduce compliance costs

Reduce time to implement changes

Reduce functional redundancy

Allow outsourcing

Copyright Kemsley Design Ltd., 2007

ROI: increase competitive
advantage
Reduce time to market
Reduce end-to-end cycle time

Improve customer service

Increase capacity

Improve decision-making

Copyright Kemsley Design Ltd., 2007

Calculating ROI

Baseline the as-is process

Model and simulate to-be process

Select relevant ROI metrics

Select ROI calculation method

Calculate best and worst case

scenarios

Copyright Kemsley Design Ltd., 2007

Common ROI pitfalls

Increased capacity does not

guarantee increased revenue
Cost reduction may require FTE
reductions
Providing self-service does not
guarantee that customers will use it
Remote work and outsourcing can
have hidden costs
Copyright Kemsley Design Ltd., 2007
Classify BPM ROI potential

Increased agility to business changes

Optimized operational efficiency

Process standards compliance

Shortened process cycle times

Better information for decision-making

Reduced complexity of integrating

people, processes and existing
systems
Copyright Kemsley Design Ltd., 2007
Changing job roles

Copyright Kemsley Design Ltd., 2007

BPM supports changing
roles
Support for change management initiatives
Model the new organization
Simulate and optimize changes
Measure results
Enabling more rapid changes
Overarching process orchestration and
governance
Real-time view of organizational processes
Agile, business-driven changes

Copyright Kemsley Design Ltd., 2007

BPM causes role changes
Business function concerns and benefits:
Workers
Concerns: job loss
Benefits: better job and training
Supervisors
Concerns: loss of control
Benefits: improved team and work management
Managers
Concerns: failure to achieve ROI
Benefits: improved visibility and performance

Copyright Kemsley Design Ltd., 2007

Overcoming change
resistance
Communication of plans and impacts
Involvement in process modeling

Demonstration of new technologies

Smaller quick hit before tackling

radical reengineering

Copyright Kemsley Design Ltd., 2007

Summary

Dissecting your process

BPMN

ROI

BPM and role changes

Copyright Kemsley Design Ltd., 2007

Questions?

Sandy Kemsley
Kemsley Design Ltd.
www.column2.com

Copyright Kemsley Design Ltd., 2007