Business Process Management
Business Processes Defined


A business process is a collection of interrelated tasks,
which are designed to deliver a particular result
Types of business processes
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Management processes - processes that govern the
operation of a system
Operational processes - processes that constitute the core
activities of the business and delivers the primary value of
the organization
Supporting processes - which support the core processes
Business process

A business process is a collection of interrelated tasks,
which are designed to deliver a particular result.

Business processes span potentially multiple departments

Process can be
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Large and complex
Dynamic
Widely distributed
Long running
Mix of business and technical steps
Involve human intelligence and judgement
Processes can be defined in workflows or process flows
define the sequence of steps and any logic associated

These can be automated but do not have to be
3
What is Business Process Management
(BPM)?

BPM is a discipline combining software capabilities and business
expertise through people, systems, and information to accelerate
time between process improvements, facilitating business
innovation

BPM software supports the definition and automation of workflows
involving individuals and systems

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The definition and automation of workflows
Monitoring and optimisation of running workflows
BPM also enables flexible deployment, monitoring and tracking,
process focus and efficiency.
BPM and process re-engineering
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The concept of Business Process Management came from

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Process re-engineering: Analysing and redesigning key
processes within an organisation in order to improve
performance
Workflow automation (typically person-centric processes such as
purchase order approval)
BPM is complementary to process re-engineering and sixsigma projects but can also be used for any process
automation project.

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Process re-engineering/six sigma is a business driven initiative to
measure and optimise performance at a business level.
Process re-engineering/six sigma does not require IT integration,
it may simply add reports to existing systems.
Examples of processes suitable for BPM:
Setting up a new customer account
Collect new customer
details.
Pending
Set-up account
Branch
network
Verify compliance with
money laundering laws
Blacklist DB
Compliance
systems
Account
system
Opportunities and benefits of process
automation
Capture new customer
details. Automate process to enhance
Pending
Out sourced provider
self-service
Branch
network
Account set-up and
provisioning
Account
system
Verify compliance with
money laundering laws
Capture existing process
knowledge.
Compliance
Blacklist DB
systems
Support future out sourcing
Reduce errors
decisions.
Automates roll-out of change
An example of a simple process
defined
1.
2.
1
2
3
3.
4.
5.
5
6
7
4
6.
7.
8
8.
Process starts at
a scheduled time.
Collected
information from
database
Format the email
to the customer
Email the invoice
Format the email
with the late
reminder
Add a new
activity (a
reminder if not
paid for a week)
Wait for the week
Send the late
payment
reminder
(c) SAP
Other examples of processes for
automation 1:

Process: New Hire Integration
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Background Check
Allocation of office space
Reservation of phone, pager
Creation of access rights in operational systems
Problem: Lost productivity due to late provisioning of work
infrastructure
Automating the process coordination reduced cycle time from 2
week average to 2 days
Automation Goal: Performance
9
Other examples of processes for
automation 2:
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Process: Employee Termination
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Removal of computer access rights
Collection of company-issued phone, pager, access card
Removal from employee directory
Problem: Not all equipment is collected, access rights
remain after an employee leaves
Automating the process coordination ensures that no
step is forgotten
Automation Goal: Compliance
10
Business Process Management:
Evolution from simple workflow
Stage 1– “workflow in the
head”
UI
“Screens”
Del Acct
Mod Acct
New Acct
List Accts
Conformance Rules

Background Check
Application
Logic
in
Multiple
systems
Enterprise Application
“Account Management”
In an organisation without integration across multiple systems, the
workflow is managed ‘manually’ by the user ensuring that the
correct steps are executed in multiple applications

Each step involves the user using the individual systems
© 2007 Workflow management coalition
Stage 2- Workflow Assist in Sequence
background
check
check
guidelines
create
account
User accesses
original UI directly
Launches
UI
UI
“Screens”
Del Acct
Mod Acct
New Acct
List Accts
Conformance Rules

Background Check
Application
Logic
in
Multiple
systems
Enterprise Application
“Account Management”
The original workflow systems assisted the user by ensuring that
the right systems were invoked in the right sequence

The original systems are still directly interacted with
© 2007 Workflow management coalition
Human BPM/Workflow:
Stage 3- Supporting collaboration
background
check
check
guidelines
create
account
Launches
UI
“Screens”
Del Acct
Mod Acct
New Acct
List Accts
Conformance Rules

Background Check
Application
Logic
in
Multiple
systems
Enterprise Application
“Account Management”
Workflow systems evolved to allow multiple individuals to
participate in a single workflow
© 2007 Workflow management coalition
Stage 4 - Using a process
UI connects user
engine
to process engine, not
enter
info
create
account
Review
Del Acct
Mod Acct
New Acct
List Accts

rules
Conformance Rules
Application
Logic
in
Multiple
systems
Background Check
Exposed
Web
Services
bg
check
Enterprise Application
“Account Management”
A distinct process engine automates the workflow and deals with
interactions with the backend systems – the user no longer directly
interacts with these systems
© 2007 Workflow management coalition
the back-end
applications
The process engine
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A process is an entity that typically encapsulates an interaction of a
user with business entities (applications).

Can includes user-centric interactions (email reminders, task lists etc) and
system interactions

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.
A process typically updated and changes the state of the business entities
indirectly
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The business application mediates these changes
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A business process may have its own state which may exist only for the
duration of the process; at the completion of the process the state ceases
to exist.
 The duration of the state may be very long

Process state may be transient or persistent.
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Human Activities Have Three Phases
User Interface
(while waiting)
Review
Automated phase before
to prepare for the task
Automated phase after
to take care of results
of the task
Wait phase for
Human to do the work,
includes timers and
escalation logic
© 2007 Workflow management coalition
Separation of Responsibility
bg
check
rules
Review
List Accts
enter
info
Conformance Rules
Business Retains Control of
• Assignment of Responsibility
• Groups, Roles, Skills
• Deadlines
• Alerts, Reminders, Escalations
• Order of Tasks
• Addition of Manual Tasks
• User Interface
create
account
Exposed
Web
Services
Del Acct
Mod Acct
New Acct

Application
Logic
in
Multiple
systems
Background Check
IT Retains Control of
• Computational Logic
• Data Representations
• Scalability / Performance
• Interoperability
• Master Data Management
Enterprise Application
“Account Management”
BPM supports the separation of tasks between the business analyst
(defining the business level elements) and IT (retaining control of systems
and data)
© 2007 Workflow management coalition
Use cases for BPM
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BPM can also be tactically to automate or optimise processes
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To formalise and capture knowledge
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The activity of defining the process means that knowledge in people’s
heads is captured (and hence supports out-sourcing).
To reduce the opportunity for human error
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Removing manual processing steps ensures appropriate processes are
followed.
The defined process is enforced with the BPM software and opportunity
for human error reduced.
To ensure compliance with legal or organisational requirements
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The process definitions can be audited and the execution of the
processes tracked
Key components of a BPM software
product
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Modelling and simulation
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Monitoring (Business Activity Monitoring)
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Support the design and simulation of business processes.
Uses graphical tools and standardised specification
languages to define the process
Track performance of processes and operational activity
Process orchestration and optimisation
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Execute the process definitions
Modify and evolve the definitions to improve performance.
Example of monitoring dashboard
Second example of dashboard
Where BPM is appropriate
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Business Process Management is not suitable for all areas of
business as it requires processes which can be formalised.
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Clearly needs a well-defined business case to support the potential
changes in the operational process,
Finding matches for the strengths of BPM
 Areas which are already well-defined.
 Areas where there is either complexity or rapid change or both
 Areas where the cost of error is much greater than the cost of
fixing the problem.
COMPARING APPROACHES
TO BUSINESS PROCESS
AUTOMATION
24
Comparing EAI, ERP and BPM
App1

App 3
App1
App2
App 3
EAI integrates primarily behind the scenes
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
App2
Most of the user interaction is unchanged
Process changes occur only for the integrated process
25
Benefits of EAI/SOA based
process automaton
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Integrates with existing process and data models – handling
incompatibilities when necessary
Allows the high value integration problem to be addressed without
disrupting the other applications
Integrates with existing process and data models – handling
incompatibilities when necessary
Minor/moderate changes to the user interaction causes
minor/moderate changes to the business as a whole
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Comparing EAI, ERP and BPM
App1
App2
App 3
Module
1
Module
2
Module
3
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ERP changes both user interaction and applicaton
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All user interaction, data/process models are changed
27
Benefits of ERP based process
automation
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Creates a set of processes and associated data models
which are mutually compatible and comprehensive
Equally effective at automation within a single
department or across multiple departments
ERP vendor typically provides ‘standard’/template
processes already proven for a particular industry
28
Comparing EAI, ERP and BPM
App1
App2
BPM layer
App 3
App1
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App 3
BPM integrates the user interaction layer across multiple
applications


App2
All user interaction related to the integrated process changed
Process and interaction changes occur only for the
integrated process
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Benefits of BPM based
process automation
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Improvement in the redesigned process,
Reduction in risk/error (due to missed or wrongly
executed steps)
Auditability of completed processes – needed for
compliance and other purposes
Makes it easier to deploy process changes (for instance
caused by outsourcing, regulation changes, business
changes etc)
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BPM versus EAI and SOA
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BPM can use different technologies to implement the process.
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EAI products typically claim to provide BPM capabilities
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Like SOA, it can be implemented using different technologies
Typically support processes defined as system to system
interactions (i.e. does not include human interactions)
SOA and BPM are partially complementary

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BPM can build upon SOA using the services already defined.
However, it is not usual to attempt to combine a move to SOA
and a move to BPM
BPM and ERP


BPM provides process integration
If the organisation is using an ERP system, the BPM system
integrates into the capabilities of that system and integrates
with other systems and users (via Email etc)
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SAP’s Business One tool:
System interaction step
User
interaction
steps