Amity School of Engineering & Technology

Amity School of Engineering & Technology

B. Tech (CSE), Semester 6
Subject: Business Process Management and Mining
Course Code: CSE424
Ms. Shweta Bhardwaj
Course Introduction Amity School of Engineering & Technology
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Business Process
Management (BPM)
3
Business Process Amity School of Engineering & Technology
Management (BPM)
A business process consists of a set of activities
that are performed in coordination in the
organizational and technical environment
These activities jointly realize a business goal

Each business process is enacted by a single
organization, but it may interact with business
processes performed by other organizations
4
Management (BPM)
Business processes describe the organisation of
work into work tasks, the distribution of work task into
different resources and the provision of necessary
information for the performance of the individual
tasks.
 Examples
Order-to-Cash
Fault-to-Resolution (Issue-to-Resolution)
Claim-to-Settlement
Application-to-Approval
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Process and the organization
6
BPM includes concepts, methods and techniques to

support the design, administration, configuration,
enactment, and analysis of business processes
 The basis of BPM is the explicit representation of

business processes with their activities and the
execution constraints between them
 Once business processes can be defined, they can
be subject to analysis, improvement and enactment
7
Business process management systems (BPMS)

are information systems aimed to support the
business processes in an organization
A business process management system is a

generic software system that is driven by explicit
process representation to coordinate the enactment
of business processes
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A business process model consists of a set of

activity models and execution constraints between
them
M. Weske: Business Process Management,

© Springer-Verlag Berlin Heidelberg 2007
Send Receive
Invoice Payment
Reseller
Receive Archive
Order Order
Ship
Products
Fig 1.1. Simple ordering process of reseller
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A business process instance represents a concrete

case in the operational business of a company,
consisting of activity instances.
 Each business process model acts as a blueprint for

a set of business process instances,
 Each activity model acts as a blue print for a set of
activity instances
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Terminology around Amity School of Engineering & Technology
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The world without Amity School of Engineering & Technology
computers
• People performed the entire process

• The process was visible – one could
observe what people did and ask
questions
• There was no need to model the
processes
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Assembly line Amity School of Engineering & Technology
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Traditional Process
(as-is)
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The first Amity School of Engineering & Technology
computers
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Optimization continues
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Consequences Amity School of Engineering & Technology
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My washing machine Amity School of Engineering & Technology
won’t work
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Processes and Amity School of Engineering & Technology
Outcomes
Every process leads to one or several outcomes, positive
or negative
Fault-to-resolution process
Fault repaired without technician intervention
Fault repaired with minor technician intervention
Fault repaired and fully covered by warranty
Fault repaired and partly covered by warranty
Fault repaired but not covered by warranty
Fault not repaired (customer withdrew request)
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The Ford Case Study Amity School of Engineering & Technology
(Hammer 1990)
 Ford needed to review its procurement process to:
 Do it cheaper (cut costs)
 Do it faster (reduce turnaround times)
 Do it better (reduce error rates)
 Accounts payable in North America alone
employed
 > 500 people and turnaround times for processing
POs and invoices was in the order of weeks
21
The Ford Case Amity School of Engineering & Technology
Study
• Automation would bring some improvement (20%
improvement)
• But Ford decided not to do it… Why?
– Because at the time, the technology needed to automate the
process was not yet available
– Because nobody at Ford knew how to develop the
technology needed to automate the process.
– Because there were not enough computers and computer-
literate employees at Ford.
– None of the above
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The result… Amity School of Engineering & Technology
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Lifecycle
Evaluation:
Process Mining
Business Activity Monitoring

Evaluation
Design:
Administration Business Process
Enactment: and Design & Identification and
Operation Enactment Modeling
Monitoring Stakeholders Analysis
Maintenance Analysis:
Validation
Simulation
Configuration Verification
Configuration:
System Selection
Implementation
Test and Deployment
Fig 1.5. Business process lifecycle
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Design and Analysis Amity School of Engineering & Technology
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Three good reasons for

making models
 Gain Insights
For a better understanding
of a system
 Analysis
Validation and verification
 Specification
A blueprint of construction
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Configuration Amity School of Engineering & Technology
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Enactment Amity School of Engineering & Technology
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Enactment Amity School of Engineering & Technology
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Evaluation Amity School of Engineering & Technology
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Administration and Amity School of Engineering & Technology
Stakeholders
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Administration and Amity School of Engineering & Technology
Stakeholders
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Lifecycle
Evaluation:
Process Mining
Business Activity Monitoring

Evaluation
Design:
Administration Business Process
Enactment: and Design & Identification and
Operation Enactment Modeling
Monitoring Stakeholders Analysis
Maintenance Analysis:
Validation
Simulation
Configuration Verification
Configuration:
System Selection
Implementation
Test and Deployment
Fig 1.5. Business process lifecycle
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Classification of
Business Processes
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Classification of Amity School of Engineering & Technology
Business Processes Business Strategy
 Organizational vs determines realize
Operational Goals
Ranges from high-level

strategy to implemented
determine realize

processes Organizational
Business Processes
Business Strategy describes determine realize
long-term concepts to develop Operational

Business Processes
a sustainable competitive
advantage e.g. cost leadership
determine realize
for products Implemented

Business Processes
Strategy is broken down intoFig 1.6. Levels of business processes: from business strategy to
operational goals
implemented business processes
37
 Organizational Processes determines realize
High level Goals
Specified in textual form by determine realize

Inputs Organizational
Business Processes
Outputs
determine realize
Expected results
Operational
Dependencies on other Business Processes
processes determine realize
e.g. process to manage Implemented

Business Processes
incoming raw materials Fig 1.6. Levels of business processes: from business strategy to
provided by a set of suppliers

38
 Operational Processes determines realize
There are multiple Goals
organizational processes that determine realize

contribute to organizational Organizational
process
Business Processes
In operational processes

determine realize
Operational
activities and their Business Processes
relationships are specified determine realize
Operational process are Implemented

Business Processes
specified by process models Fig 1.6. Levels of business processes: from business strategy to
39
 Operational Processes are determines realize
basis for developing Goals
implemented processes determine realize

 Implemented processes Organizational
Business Processes
contain information on the determine realize
execution of process activities Operational

Business Processes
technical and organizational determine realize
environment in which they will Implemented

Business Processes
be executed
Fig 1.6. Levels of business processes: from business strategy to
40
Classification of
Business Processes
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 Intra-organizational processes, no interaction with
processes performed by other parties
 Primary focus is to streamline internal processes
(eliminate activities that do not bring value)
 Allocate activities to persons who are skilled and
competent
 Most business processes interact with processes in
other organizations forming process choreographies
 Interaction protected by legally binding contracts
 More technical aspects are involved here because
different organizations use different software
platforms
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Classification of Business Processes
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Classification of Business Processes Amity School of Engineering & Technology
 Degree of structuring
Either highly structured (rigid) or flexible for knowledge
workers.
Data dependencies are used instead of control flow
constraints
46

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Amity School of Engineering & Technology

Amity School of Engineering & Technology

These activities jointly realize a business goal

BPM includes concepts, methods and techniques to

 The basis of BPM is the explicit representation of

Business process management systems (BPMS)

A business process management system is a

A business process model consists of a set of

M. Weske: Business Process Management,

Fig 1.1. Simple ordering process of reseller

A business process instance represents a concrete

 Each business process model acts as a blueprint for

• People performed the entire process

M. Weske: Business Process Management,

Fig 1.5. Business process lifecycle

Three good reasons for

M. Weske: Business Process Management,

Fig 1.5. Business process lifecycle

Business Processes Business Strategy

 Organizational vs determines realize

Ranges from high-level

M. Weske: Business Process Management,

Business Strategy describes determine realize

long-term concepts to develop Operational

for products Implemented

Business Processes Business Strategy

 Organizational Processes determines realize

High level Goals

Specified in textual form by determine realize

M. Weske: Business Process Management,

Dependencies on other Business Processes

processes determine realize

e.g. process to manage Implemented

provided by a set of suppliers

Business Processes Business Strategy

 Operational Processes determines realize

There are multiple Goals

organizational processes that determine realize

M. Weske: Business Process Management,

In operational processes

activities and their Business Processes

relationships are specified determine realize

Operational process are Implemented

Business Processes Business Strategy

 Operational Processes are determines realize

basis for developing Goals

implemented processes determine realize

M. Weske: Business Process Management,

contain information on the determine realize

execution of process activities Operational

technical and organizational determine realize

environment in which they will Implemented

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