BPM - created from Mind Map

BPM aims to continually improve and analyse existing business activities

BPM is about improving efficiency, flexibility and effectivenss to respond to change

Business process A set of related business activities that when performed result in an outcome of value to the customers and organisation Components of BP Types of business processes Management Process Operation process Information process External parties Authority, people and policies responsible for controlling operations People and processes which objective is to perform operations Collect and store data to provide useful information to users The first three components help to conduct business with external parties Individual Processes Vertical/functional processes Horizontal/Cross functional processes Carried out by individuals Within a business functional unit Cut across business functional units and sometimes companies

BPM, BP improvement and re-egineering Enterprise level change methodologies BP process level change methodologies Implementation level change methodologies Ensure all BPs making up a value chain are well integrated Methodologies Balanced Scorecards Enterprise BP trends methodology Used to align corporate goals and strategies Management tracks four different perspectives Objectives will be determined in terms of each perspective Managers assigned a scorecard with objectives in each perspective Balanced scorecard strategy map (refer to figure) Financial Customer Process Learning and growth Strategy map divides corporate strategy into 5 themes Increase return on capital Improve operating quality and efficiency Grow high value customer relationshipos Accelerate product innovation create high performance culture Covers enterprise and process levels Concerned with creating tools that an enterprise can use to organise and manage BP Phases Understand enterprise context Define BP architecture Define process governance Day-to-day management of BPs BPR Six Sigma Lean Process level BP Trends Methodology Redesigning BP to gain improvements such as cost reductions, speed and service Obliterate rather than automate Complete redesign of business processes to achieve improvements Use of IT in redesigning and automating processes Designing entire process from scratch using latest technology Now replaced by BP redesign and BP improvement Aims to reduce process variation as much as possibler BPI project organised around a five phase approach (DMAIC) Improving consistency and quality of process output Define Measure Analyse Improve Control Improving flow of activities and reducing cost of a process by removing waste Uses proven tools and techniques Concerned with process redesign and improvement (enterprise and BP level) Enterprise methodology BP methodology Flow Kaizen Process Kaizen Process redesign methodology Five phases Understand the project Analyse business processes Redesign BP Implement redesigned process Roll out redesigned process Process modelling software Business Process Management Suites ERP driven redesign Uses software to create models which represent business processes and activities DB for storing BP elements and relationships Modelling essential for carrying out BP improvement Allow users to pass info between about a process to other tools Use to document, specify and modify BPs Automate modelling, monitoring and redesign of complex processes to help achieve improvement Designed to model Areas of functionality Process progress and performance Historical data Organisational roles Business rules BAM Inform business of important events to its business in the IT layer Starts with solution of best breed processes Existing processes then modified to suit the best practices suggested Help with process management

Major BP approaches 3 major BP approaches Information Technology tradition Business management tradition quality control tradition Tendency is for all to merge into one BPM approach Software focused methodologies Either top down or bottom up Automate processes with applications and computers Software applications for BP management Also fall under process re-engineering as processes are automated ERP BP modelling tools Aligning strategy, organising and managing employee to achieve goals Popular when company want to undertake major changes e.g.: entering a market A performace framework identifies 9 different things that an organisation should consider when changing processes Improving overall organisation performance Top down approach Focuses on BP quality Making incremental improvements to business activity Bottom down approach Popular when economy is weak and trying to cut expenditure Capability Maturity Model Integration Evaluates whether an organisation's processes will enable it to deliver on time and within budget Process improvement Classify an organisation according to 5 levels Provide guidelines to address product lifecycle

Main features/roles and processes of BPM systems Main features Main roles Main processes

Technologies and applications supporting BPM SOA and BPM BPM as a service SOA can provide a framework for designing BPs, consolidating redundant processes and responding to change SOA can result in a business that is more efficient and flexible BPM on the cloud and includes IaaS, PaaS and SaaS) IaaS PaaS SaaS Through the 3 layered model BPM software can collect, optimise and develop info of BP See picture above Key layer for realisation of BPM layer closest to the user Divided into application layer and software

Drivers and advantages Drivers of BPM Advantages of BPM Transparency Quality-efficiency Agility-Compliance Integration Visibility into the organisations operations (how data produced and consumed along BP) Real time visibility and analysis of events ensures up to date information for decision making Quality looks at conformance to business quality standards and specifications BPM platforms can help reduce costs and streamline processes(automation & remove redundancies) Improve productivity and op efficiiency (automation and removing bottlenecks) Helps organisations adapt to rapidly changing business environment Compliance with process standards, corporate governance and regulatory requirements Manage BP to minimise impact of process changes (employee resistance) Process automation Competitive advantage Measurement mechanisms

Disadvantages and challenges Acquire required process management competancies Challenges relate to the competancies

Management Issues Create and maintain BP architecture Identifying and prioritising scope of business change projects Maintaining and managing process performance Support process manager Managing compliance BP architecture enables organisations to achieve business agility The more up to date the architecture the more valuable the tool May require db or repository for maintaining info Tracking, reporting and using measures to evaluate performance Provide training to help with managing processes

Key Vendors IBM Pegasystems Software AG

Future trends BI with BPM systems Social networking analysis for BPM Cloud Business Rule Engine services

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Identify strategic goals and value chain processes Model processes

Creating a BP architecture for a value chain

Develop plan to manage BPs Create a BPM group to help management monitor processes

Ongoing maintenance and use of tools created

Define customer requirements Charter detailing what the team must achieve and the process to be improved

Team defines measures to determine how well the requirements are met by each process Measures such as input from suppliers, costs and customer satisfaction

Analyse existing processes using methods such as breaking down processes down into activities to consider the value added by each activity

Coming up with ways to improve the process

Plan to maintain gains and continually improving

Develop a project plan

analyse and document process

produce a new improved process

acquire resources and space to implement process

The performance framework integrates 3 levels of concerns with three perspectives Describes what a mature organisation must muster

Uses six sigma and lean methodologies for process improvement

initial repeatable defined managed optmising

Quality can be customer satisfaction and number of defects

Business strategy People and technology Governance

Six sigma training

Wide range of BPM solutions IBM has extensive skills and expertise

Deliver a solution to address specific needs Needs to be customised to meet customer needs

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BPM

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