PART 1: BUSINESS PROCESS CHANGE
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Always improvement of process: pot-making, Industrial Revolution, Henry Ford, Taylor
New technologies have often led to new business processes
Organisations as Systems
 1960: different trends, very important for further developement
Systems and Value Chains
 1985: Michael Porter: Competitive Advantage (and Strategy): collection of activities
 (Start) Input  Business System  Outputs (and feedback to input)
o simple focus on what happens between order and final delivery
o function and support services should be included in 1 single value chain
 1984: Rummler Geary: a business process cuts across traditional departments to
combine activities into a single process, worked at employee training and motivation
issues  provided a detailed methology for how to analyze an organization & process 
redesign & improve & create jobs and manage process
 1990: Hammer and Davenport: Manager got interested in reengineering
 Rummler-Brache: 3 levels of performance:
o Organizational Level
o Process Level
o Job or performer level
o 3 levels and 3 different perspectives like a framework, 9 different concerns
 not only concern with the design process itself, also with measures of
success, avoid silo thinking (department on their own)
Six Sigma Movement
 1980: quality and measurement concepts at Motorola (Deming/Juran)
o embracement of a whole culture dedicated to training employees to support
process change throughout organization, prior technique: ISO 9000: emphasis on
documentation, less on quality at the beginning
Changes in 1990s
 Champy, Davenport, Hammer: insisted that companies must think in terms of
comprehensive process, not only on 1 product, emphasis on using IT efficiently
 BPR theorist urged companies to define all their major processes and focus on the
process that offers the most return on improvenment efforts
 Departmental efficencies were maximized at the expense of the overall process
 Large companies become inefficient by becoming larger and more specialized
Role of Information Technology in BPR & Misissues of BPR
 Hammer/Davenport: insistence on IT  but said IT professionals don’t recognize major
new opportunities, theorists underestimated difficulties of integration IT technology
 Downsizing was popular in 90’: necessary sometimes, natural reduction of staff in
response to a slowdown of the business cycle  BPR got unpopular
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Lean and Toyota Production system
 In 1980: in Japan Toyota Production System: careful study of each activity in the process
stream to determine if the activity did or did not add value to the final product 
defining 7/8 types of waste  Lean got popular
Other Process Change Work in the 90s
 90s: many approaches to business process redesign were driven by software
technologies
 workflow system: one sends to another etc. = automate document-based process
 ERP (Enterprise Resource Planning) = several modules can be linked together & organize
the new applications into an organized business process
 Hammer: wanted reconsideration & redesign, best possible business process
 Workflow and ERP: focus on automatic processes, small scale improvements
 Software engineering: make development of software systematic, efficient and
consistent
The Internet
 EDI: electronic data interchange: for large scale corporate system integration
 Late 1990: BPR enthusiasm was declining  internet through telephone line,
communication problems solved, buy products online
 not every solution fits every situation
Business Process Change in the new Millenium
 Recession, collaps of dot.com, day to day management should get easier through old
technologies  BPMS: functionality defined & possibility for managers to change
process by changing the models
 Smith/Fingar: companies should combine workflow systems, software application
integration systems & Internet technologies to create a new type of software application
 Process redesign and improvement important, new methotologies
 Increased competition  M&A, international automobile market, amazon, globalization,
outsourcing
 Call for constant innovation and increases in productivity  focus on process is
important
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1 ) ORGANIZATION WIDE CONCERNS
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Only way to achieve a significant competitive advantage is to assure that all the process
that make up a common value chain are integrated and support each other
Overview is necessary  matrix: vertical (scope): focus on organization or process or
recource, horizontal: focus on project with specific time frame or goal or ongoing activity
Business process architecture: entire set of models and measures & description of the
ressources aligned to support the, takes time & maintainance
2 ) STRATEGY, VALUE CHAINS; BUSINESS INITIATIVES,
COMPETITIVE ADVANTAGE
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Concept of business strategy:  how it will create value for ist customers, share- and
stakeholders
Porter: Defining a Strategy
 A broad formula for how a company will compete, what goals, what policies to achive
the goals, three-phase-process, need of constant review, 1980 was calm period
 1) Determine the current position (strategy and assumptions) of the company: strengh &
weakness, competitors, trends
 2) Determine what is happening in enviroment: trends in the industry, capabilities and
limitations of competitors, changes in society & government policy
 3) Determine a new strategy for compay: team generates a number of scenarios or
alternative courses  imagine what policies, technologies, organizational changes are
necessary to reach a certain situation
Porters Model of Competition
 the essence of formulating competitive strategy is relating a company to its enviroment
 identifies 5 changes in the competitive environment that can force an company to
adjust its business strategy,
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Industry competitors: make changes itself, rival moves  company must respond
Buyers: want to aquire products inexpensively as possible
Suppliers: want high price, more bargaining power when delivery fast and rare
Substitutes: need to watch that competitors dont have substitutes
Poteintial entrants: increase of competition
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Barriers for entry of firms: large capital investment, lot of advertising, first very rare, in
1970s.: more international firms
INDUSTRIES, PRODUCTS, VALUE PROPOSITIONS
 Value proposition: value provided for customer  company should think abstract
 Good strategist must work to be sure they really understrand what customer need
STRATEGIES FOR COMPETING
 Cost Leadership: cheapest price through economies of scale, supplier control, experience
(example: ford)
 Differentiation: premium products
 Niche spezialisation: focus on specific buyers, segments, extreme version of
differentiation (taxi and limousine)
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PORTER’S THEORY OF COMPETITIVE ADVANTAGE
 Value chain: thinking of process as complete entities that begin with new product
development and customer orders and end with satisfied customers
 Managers should conceptualize large-scale process
 Value-enabling activities: not add value directly, only faciliate adding value
 Non-value-adding: should be eliminated
 Many subprocesses for value chain:
o primary process: logistics, marketing, sales..
o support process: HR, procurement, technology development
 2 fundamental variables determine a company’s profitability or the margin it can obtain
from a given value chain:
o industry structure: imposes broad constraint on what a company can offer and
charge
o competitive advantage: results from strategy and well-implemented value chain,
sometimes based on premium
 in 90s: focus on operational effectiveness  hypercompetition: too fast operation 
everyone innovates the same  no sustainable advantage
 alternative: focus on superior product & unique strategy
 good position: when focusing on specific customers & discipline
Porters Strategic Themes
 idea that strategists ought to create maps of activity systems to show how a company’s
strategic position is contained in a set of tailored activities designed to deliver it =
network diagrams, goal should be value change
Treacy and Wiersema’s Positioning Strategies
 focus on customer and company culture  company must find his unique value
 3 generic types of customers:
o there who value high-performance products or services
o value personalizes service
o value lowest price products
 3 value positions:
o product leadership
o customer intimacy
o operational excellence
The Balances Scorecard Approach to Strategy Kaplan/Norton)
 1990: they believed that knowledge based assets (primarily employees and IT) were
becoming increasingly important for companies competitive success, but most focus on
short term financial performance  but no info about untangible assets
 BSA: organisation identifies corporate objectives within financial, customer, internal
business, innovation and learning measures  value creating process
 Being careful important, confusing for process oriented, too much emphasis on vertical
alignment and risk losing insights that derive from focusing on value chains and
horizontal alignment
Business Models & Initiatives
 Model: Describes how a company plans to make money
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Business Initiatives: define strategies and goals, information to middle management,
o worst case: ignoring other operational concenrns when concentrating on goals
o best: guidance to those doing process work with clear directions
3 ) UNDERSTANDING YOUR ORGANIZATION
A Comprehensive business Method
 BPTrends method focuses on structuring two diffrent sets of activities  2
complementary methods:
o business architecture development: creating tools that a company can use to
organize process work
o business process redesign projects
 interaction with strategies, goals, business initiatives
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Understanding the Business, analysis of the organisation to define goals & refine
everyone’s understanding
Defining Business process architecture: is developed for each individual value chain:
business process + subprocess, popular way: discussion of all managers
Defining Process Governance: functional or process oriented approach, maybe BPM
group
Day to Day management of Enterprise Process: helpint to develop basic tools needed to
create & manage a process centric organisation
Strategy and Enterprise BPM
 Everything should begin with corporate strategy (on many levels), work performance
tracking important
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Today strategy depends on processes & interaction with each other & relation to
customers
Understandig the enterprise
Traditional View of Organization’s structure
 Organizational chart  does not show customers, products & services
 Lots of silo thinking  suboptimization  cross functional thinking important
Case Study of organization transformation
 British Petroleum: performance declining & debts  first decision: focus on core
business and sell the businesses that did not support the focus  defined 3 business
streams
 Became efficient but failing to share knowledge and insights  first important to define
core strengh  business process architecture  assign responsibilities
 Common process tend to use similar software
The System View of Organizantion
 Responds to inputs and generates outputs (= horizontal view) chart: parties, work and
connection showed
 A system view emphasizes process and connection and ultimately adaption
Models & Diagrams – Organization Diagrams
 Different way to show  important: who will use it?
 O.D. are extensions of systems diagrams that are modified so that they can be used to
describe the basis structure of an organisation, relationship to environment & to
department units: supplier, customers, shareholders, competitors
Organizations & Value Chains
 Lumpers: want to combine everything what is similar  1 or few value chains
 Splitters: difference between products and groups  many long value chains
 Company should be able to isolate all oft he support activities that are used in a single
value chain & should determine how many value chain it has
 Example: Michelin: 2 value chains, relation necessary to prevent silo thinking
Systems & Processes
 System thinking important: it puts the emphasis on understanding the organization as a
whole
 Process thinking (= subset of system thinking): stresses thinking about a portion of the
system that produces a specific set of results
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In many cases: maximizing department’s efficiency reduces the efficiency of a whole
process  necessary to focus on flows and relationships that add value
4 ) BUSINESS ARCHITECTURE
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Idea of value chain = collection of all the processes that an organization uses to generate
a product or service that is valued by a specifig group of customers
Hammer: concerned with discriminating between cost of performing process work and
margin created by the costs of the sale price (primary and support activities)
Rummler: said an organization has 1 value chain
Goal for each value chain in companies
The Supply Chain Council’s Framework
 3-level model:
o value chain = 0
o given supply chain = 1  divided in 4 subprocesses
o Process & Variation = 2
 Source, Make, Deliver, Return
 Plan
 Basic approach to performance evaluation and metrics for each process was found
 SCOR: developed by business people: performance was the main interest, link to other
companies, which process is cost effective
 Telecom has own model
Business Architecture: The IT Approach
 1980: IT experts were working to define architectures that could show how software
systems fit together, relation of software assets in company analyzed by assigned
people, support of operations of business
 matrix with functions, data and networks  later more rows: people, time, motivation
 TOGAF as more sophisticated but still much framework
 OMG Business Architecture Guild: basically effort by IT people to conceptualize what
business operation must be like, most emphasis on „capabilities“
 If one focus on how work actually gets done  determine what contributes for value
and what not
Business Process Architecture
 Mature companies know how process fit together and if it works correctly
 Invariably designed around core process  might show you a process that manage or
support, but it doesn’t suggest what process you might need to support other
stakeholders
 Division of major process into subprocess: concentration on core process necessary
Creating a Business Process Architecture Model
 Consultant guides a team of managers
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Each step consists of of 2 parts: Kick-off and then meeting with review and result
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Kick-Off:
o Identification of scope of organization: how many value chains?
Scope the Project:
o Analyse of stakeholders oft he Produce and Sell Tires value chain: each has to
support each of the stakeholders (Suppliers, employees, customers, ...)
Define Lifecycle Process
o Stakeholder interact in multiple ways: what do they need?  definition of
process to find out what stakeholders make for value chain
Organizing & Consolidating the Level 2 Process
o Important: being consistent and keep all the process you define more or less on
the same level of granularity
o Linking lower level process into flow networks is important for process redesign
and improvement, but it’s just a distraction when creating higher level
architecture models
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Defining an Architecture using a Framework – Supply Chain Council’s SCOR Framework
 Discussion supply chain problems  definition of high-level set of supply chain process
 Core, management and support process & performance measure
 SCOR: 3 levels  0 value chain, 1 Supply chain, 2 high process level (source, make,
deliver, return)
Developing a Supply Chain Architecture with SCOR
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SCOR refers to SCORcard: it shows performance attribute and benchmark data for a
hypothetical company’s supply chain
Important for overview  control how processes are performing  if necessary
changes can be made
The Extension of SCOR
 Example: merger HP & Compaq: first seperated employees, then defined new
common vocabulary for everyone
 SCOR made it possible for the team to quickly analyze all of the supply chains for all
regions & product lines of both  selection of application that supported the more
efficient process
 Important, that their work focused on the value that the various application
delivered to the company
 Different strategies require different measures (focus internal, external...)
 Through merger  adaption of application of both
Another Approach
 It is assumed as time passes that most members will move toward this process
architecture & vendors will tailor products to implement many of the processes defined
by the model
 Issue: possibility of a matrix management system (responsible person for everything)
5 ) MEASURING PROCESS PERFORMANCE
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Performance = Key differentiator, operational managers focus more on efficiency &
effectiveness
Key Measurement Terms
 Unit of measure: phrase that describes the type of outcome
 Target: what is the success
 Timeframe, vision statement, objective, data, goal = Key performance indicator
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In ideal world: goals of senior managers should align with outcomes of customers
External measures: tells about results achieved by process or value chain
o Income measures, customer satisfaction, market growth measures
Internal measures: tells about how process is working
o Efficiency & effectiveness of functions & subprocesses
o Costs of producing
o Quality of internal outputs
Once external measures are defined and it is clear that process meets external
commitments, then should focus on internal measures
Most focus on internal measures because they are leading indicators with valuable
information, but for effective performance measure external are important
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Leading & Lagging indicators
 Leading: are measures that report on situations that are casually related to outcomes
that you desire (ex. Tracking leads)
 Lagging: situations that can’t be changed (ex. Number of sales)
 Whenever possible it is good to monitor leading indicators that provide managers with
the ability to take corrective action
Developing a Comprehensive Measurement System
 Often confusion through throwing all measures together  balance and priority for
goals necessary
Balances Scorecard & Process Measures
 Financial: How do we look to shareholders?
 Internal Business: What must we Excel at?
 Innovation & Learning: Can we continue to improve & create value?
 Customer: How do customers see us?
 more specific
 Popular because process measures and customer satisfaction, not only financial
measures
 Balanced Scorecard Strategy Map:
o Hierarchal model that suggest that some measures contribute to others and are
summed up in shareholder value
o Vision, Financial Perspective, Customer Perspective, Internal Process Perspective,
Learning & growth perspective
o Negative:
 on the top financial matters are on the top, should be closer to process
view
 tends to support and entrench functional specialization
o Positive:it delineates a set of measures that are related to the value chain as a
whole and are not the responsibility of any specific functional unit
Aligning Process Measures
 Example: aerospace company: US airforce as customer
 Very process-oriented, ignores functional concerns
 Puts all emhasis on ensuring that each process and subprocess manager knows exactly
what is required and generates output measures for each process and subprocess
Deriving Measures from Business Process Framework
 If company uses framework like SCOR to structure business process hierarch  it can
proceed to derive appropriate measures from SCOR reference materials
 SCOR defines 5 generic performance attrubutes & suggest appropriate metrics for each
attribute
 Supply Chain Council provides comprehensive set of measures for process, work with an
outside benchmarking agency
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6 ) PROCESS MANAGEMENT
The process perspective
 Approaches:
o seeing company as black box that takes in capital  then it generates a return
o organization is trying to meet goals
o people make things happen
 the process perspective is the one perspective that shows a manager how everything in
an organziation must work together if the organization is to succeed
What is Management?
 2 types:
o operational management: ongoing responibility
o project management: limited in time
Functional or Unit Managers
 most companies are divided in functional units  divided into divisions  departments
 definition of division depends: focus on production of one product or service line or
geographical units
 managers responsible for support process
 functional management preserves valuable corporate knowledge and brings experience
to the supervision of spezializes tasks
Process Managers
 the key point is to consider that an organization is made up of process and for each
process there must be someone who is responsible for day-to-day functioning of it
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when you focus on organization charts and managerial responsibilities you are usually
focused on the role and seek to define who a specific manager would report to, without
concerning yourself with the specific individual who might performe the role  effective
role performance necessary
4 generic subprocesses:
o plan
o schedule
o budget
o work of process
o organization of workflow, resorces, definition of jobs and success criteria..
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process manager should make a plan to improve process & see process alltogether that
value chain works, focus on how his process fits in others & contributes to overall
efficiency of the value chain
Functional or Process Management?
 In lower levels it’s common for a single manager to function as both process and unit
manager  when higher than harder
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Process Manager: concerned with whole value chain & work smoothly
Functional Manager: maintaining organization: hire, train, evaluates
Matrix Management
 Often at least upper level is independent of the organization’s functional hierarchy
 Depending on the complexity of the organization  value chain manager might have
other process manager reporting to him  results typically in matrix organization
 Most organizations keep the functional or departmental units in order to oversee
professional standards within disciplines and to manage personnel matters
The Management of Outsorced Process
 Example Dell: core process is outsourced
Value Chains & Process Standardization
 Identification of standard process was a popular goal  when it does it at every location
it should consider to do it the same way
 Many installed ERP application without standardizing the process
 Risk of suboptimizing value chains when standardizing overall process  solution:
organizing process around specific value chains
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Setting Goals & Establishing Rewards for Managers
 Important to identify each manager’s goals and motivation
Management Process
The PMI Project Management Maturity Model
 Distinguish between operations management (ongoing) and project management
(limited on time)
 They describe a body of knowledge that organizations can use to evaluate their current
sophistication in managing projects and then to then use a methodology for intodrucing
more sophisticated project management skills, important for managers:
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General model of management pictures an operational management role and describes
the activities that a process manager must perform
Project management extends that by adding a process defining the nature of the specific
process
SEI’s CMMI Model
 2 ways to organize effort:
o analyze capabilities of a given department: focus on capability level  looks to
see what skills are present and which are missing
o focus on overall maturity of an organization: focus on maturity level: providing
skills the organization needs
SCC’s SCOR Framework
 for each supply chain process (Source, Make, Deliver, Return) they require the modelar
to add a plan process
 SCC defines 4 subprocesses for their plan process, Plan-Make-Processes include:
o PM1: Identify, Prioritize, Aggregate Production requirements
o PM2: Identify, Assess, Assign Production Resources
o PM3: Balance Product Resources Requirements
o PM4: Establish Production Plans
 SCC also defines an enable process and & subprocess
o EM1-8: manage Production Rules, Performance, Data, In-Process Production
Inventory, Equipment & Facilities, Make Transportation, Production Network,
Production Requlatory Compliance
 Subprocess list reflects the more specialized role, focus on more knowledge intensive
processes
 A lot of different groups are working to define the process that managers use when they
manage specific process, different focus: on skills or how to manage project
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Documenting Management Process in Architecture
 Most don’t do it, day-to-day processes are documented generic, high-level management
processes often documented independently
7 ) AN EXECUTIVE LEVEL BPM GROUP
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Different organizations handle overall management of their process work in different
ways, often delegated to IT
Organizations that are focused on redesign or improvement of specific business process
are more likely to locate their process groups in divisions or departments
Organizations focused on enterprise issues  strategy group at enterprise level
Create & Maintain the Enterprise Business Process Architecture
 The more elaborate the process architecture, the more valueable it will be as a senior
management tool, but only if it is up to date
 The BPM group should maintain a close relationship with the organization’s strategy
group
Identify, Prioritize, and Scope Business Process Change
 BPM group is in the position to determine what process need to be changed (oversight
and prioritization is important)
 In every large organization there is a limit on amount of disruption the organization can
handle at one time: 2-3 redesign projects at one time
 Scope & resources required should be defined, relation to environment
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Review of stakeholders: goal of process is to sastify the customers of process  check
what each expects
Major options:
o Redesign: major analysis of the existing process followed by a redesign effort that
should significantly improve the process  results in changes in job descripion
o Automation: IT group does it, can be used as an conjunction with process redesign
or can be an effort to automate specific process
o Improvement: of existing process
o Management: changing plan, organize, measure, control
o Outsourcing
Which tasks are involved in process? Horizontal: how much value created
Help, Create, Maintain, Manage the Process Performance System
 When companies begin to track value chain & process performance more carefully 
they tend to associate performance with process & it becomes natural to delegate it to
BPM  they track a wide variety of different measures
Help Create & Support the Process Manager System
Recruit, Train and Manage Business Process Change Professionals
Manage Risk/Compliance Reporting & Documentation
 Most organized: Six Sigma: with Master Black Belts (very skilled consultants), Black belts,
Green belts, Documentation often ISO9000
Case Study: Boeing’s GMS Division
Senior Management’s Commitment
 Senior executives at most companies are willing to support a wide variety of process
improvement programs, but are usually relucant to provide the kind of ongoing, in-depth
commitment a company needs to really change the way the organization does business
 Baldrige Criteria  6 areas: leadership, strategic planning, customer focus, information
magagement, HR focus, management & integration of process
 Focus on process management: defining organization as series of process &
responsibilities
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Starting with a Vision & Plan
Modeling the Company & Ist Process
 First defining the program’s core process & major support or enabling processes were
modified as necessary to adapt the current organization = process based management
 Each process has a manager  swimline flow diagram
 Process performance measures are aligned from the top to the bottom of the model
Process Owners
 May or may not be a regular manager, quality control
Defining Process Measures - 4 general categories of KPIs
The Boeing GMS Proces-Based Management System
 Process based management system  is a set of software tools & repository that helps
process owners to document process & measures, that gather & summarize process
performance data
 PBMS is available to every process owner
PBM, Process Redesign, Six Sigma, Lean, Balance Scorecard,
ISO 9000, CMMI, Sarbanes-Oxley
 In most cases  IT department for process redesign group
 The BPM Group: Different tasks, depends on organzation
PART II: PROCESS LEVEL CONCERNS
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8 ) Understanding & Scoping Process Problems – What is a
process?
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Often senior managers who decides that there is a problem
Classic concept of process describes a process as a bounded set of activities that are
undertaken, in response to some initiating event, in order to generate a valued result
Distinguish between core or operational process
Process Levels & Levels of Analysis
 Idea of process hierarchy  usually process will be divided in 3 parts
 One set of process analysis techniques is used to redesign or improve higher level
process
 one set is used on the types of process problems we find in the middle of the process
hierarchy
 Another set of techniques is appropriate for processes at the bottom of the hierarchy
 Top part of process hierarchy is usually associated with architecture problems of
coordination between departments and functional units
 Midsize problems usually occur in process managed within a single department or at
most a few departments
 Low level problems usually involve individual performers or software systems  usually
require a detailed task analysis
Simple and Complex Processes
 Simple: easier to define, don’t need so much initiative & creativity
 In the past: workers were more likely engaged in the type of procedural tasks  know
tasks require more knowledge
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It is increasingly popular to refer to dynamic, complex processes as case management
processes
Business Process Problems
 Challange: figure out which nature of the problem and then consider intervention
 Gap Model:
o Formally: a problem is the difference between what exists know & what we
desire  existing as-is and to-be-process
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One problem: difference between description of actual problems & description of causes
& consequences
Model provides a framework of thinking about kinds of analytic techniques we might use
to resolve a problem, it uses a time-study technique (= time between step)
The Initial Cut: What is the Process?
 We aquire information  define triggered out- and inputs  define subprocess
 Stakeholders: who is interested in process?
Refining an Initial Process Description
 Create process scoping diagram  later process scoping diagram ( = looks primarily at
the internal workings of a given process
 IDEF (Integrated DEFinition language): looks like a function box
Six gereric types of process problems
 Output Problems
o Result when the „customer“ of the process is not getting what is needed
o When quality, quantity or timeliness of outputs don’t sastify  problem
o Outputs can take different forms, including physical entities, information/data,
decisions/approvals
o Quality of output: rejected by quality control downstream, output returned
o Quantity of output: not produced number required,
o Timeliness of output: not produced when required
 Input Problems
o Result because suppliers of the process in scope are not producing what is needed
o Suppliers can be companies, individuals,.. inputs can include things: info, money
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o Quality, Quantity and Timeliness of Inputs like Output
Problems with Controls
o Controls define or constrain how a process is performed, often defined by higher
management
o Process in Scope Not Aligned to Organization or Value Chain Strategy
 Organization Strategy is unclear or incompatible
 The value chain strategy is unclear
o Problems with Policies or Business Rules
 Policies are statements of how an organization intends to do business
 Business Rules are more specific statements that define how specific situations
are to be handled
o Problems with Documentation, Manuals,...
 Usually arise when documentation is out of date, incomplete, hard to read
o Problems with External Management Process
 Results from information provided by or required by a management process
that is not in the scope of the analysis effort
Problems with Enablers
o Arise when those processes fail to provide or maintain the resources needed by the
process in scope
o 4 broad categories: IT, HR, facility, equipment, location problems
 Employee problems (not enough, lack in skills, lack in time, lagging data)
 IT problems: (problems with support, data incomplete)
 Facilities, Equipment & Location problems: resources unavailable, inadequate
o Accounting & Bookkeeping problems
Problems depend on the goals of the projects, maybe there are limits of expansion of
scope
Creating a Business Case for a Process Change Project
 First statement of problem  then description of performance gap  discussion of
measures & description of As-Is-Process  the desirable To-be-measures can be
developed
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Keep it simple, state clearly, objective or goal?
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9 ) MODELING BUSINESS PROCESS
Process Flow Problems
 Every process should have someone who is responsible for encuring that it is
accomplished
 Problems with Logical Completeness
o Some activities are not connected to other, related activity
o Some inputs or outputs have no place to go
 Sequencing & Duplication Problems
o Some activities are performed in the wrong order or more than once
o Some activities are performed sequentially that could be performed in parallel
o No priority of some activities
 Subprocess Inputs & Outputs
o The inputs and outputs of subprocesses are wrong or inadequately specified
o Inputs or outputs can be inadequate quality
 Subprocess Measures
o Inadequate or no measures for the quality, quality or timeliness of subprocess
output
Day-to-Day Management problems
 Planning and Resoruce Allocation Problems
o The process manager working on the process –in-scope is givel lagging data
 Monitoring, Feedback and Control Problems
o Employees working on the process-in-scope are not held responsible for
achieving one or more process goals
o Employees are not given adequate information about the process
o Employees are not rewarded for achieving key process goals
 Manager Accountability
o The process manager is not held responsible for achieving one or more key
process goal
o No adequate information
 Important distinction between day-to-day management & higher-level management
Process Flow Diagrams
 The most important practical distinction in process modelling is between the relatively
informal diagrams that business managers use to help them understand the processes
 IT software diagrams can be complicated  may not be used by managers
 Standard notation is necessary
 Rummler-Branche in 90s: Improving performance, alternative: ARIS  EPC (event driven
process chain)
Flow Diagramming Basics
 A process is a set of activities that receives & transforms one or more inputs and
generates one or more outputs  decompose process in subprocessses
 In BPMN a process or activity is represendet by a rectangular box
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In the real world: processes are occationally arranged so that a series of processes follow
one another without any time elapsing between them, use of swim lanes
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Top swim lane reserved for the customer of process
All activities that occur within the same organization are represented as adjacent swim
lanes
In a typical workflow diagram we would simply represent all activites, but here we show
also the responsibilities
If we analyze large-scale processes, it is possible that a process will be the responsibility
of more than 1 functional group
As we drill down the function groups listed on the swim lanes keep getting more specific
Business Rules take this generic form:
o IF (something in the case)
o AND (something else is also the case)
o THEN (do this)
o ELSE (do something else)
Complex decision process can involve many rules
Decision: Accepted or rejected
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Most analysts make distinctions between individuals, jobs and roles (= activity)
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As-Is, Could-Be, To-Be Process diagrams
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As-Is Process diagram: documents existing process
Could-Be Process: speculative alternative diagrams
To-Be-Process: new one
90s: IBM promoted a business process model called LOVEM
Case Management
 individual, like in medicine a patient
 Case Management Model and Notation (CMMN) is a graphical representation for
graphically expressing a Case, as well as an interchange format for exchanging Case
models among different tools
 It is to Case management products what the OMG Business Process Model and Notation
(BPMN) specification is to business process management products
 we can create a hierarchy of problems, but best solution is to define initial situation
subprocess
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tasks are not connected by flow arrows
it is assumed that a given case includes many tasks, only a small subset of which might
be used to deal with a specific instance of case
10 ) HUMAN PERFORMANCE ANALYSIS, AUTOMATION, DECISION
MANAGEMENT
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activity can have 2 meanings: generic term for any subprocess or smallest process/task
task level analysis is the most detailed anaysis we do
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Analyzing a Specific Activity
 the task would be triggered by the receipt of an expense record an terminate when the
report was filed and the ledger was completly updated  it is also possible to write
down each step of the process of doing a task
 rules should be followed at each step
 if the employee or supervisor felt that there were problems with the performance of the
activity, we would ask the employee and the supervisor to suggest causes oft he
problems and gather any data we could to support or refute those suggestions
 2 activity worksheets for analysis: Activity Analysis Worksheet and Activity Cost
Worksheet
Analyzing Human Performance
 Human Performance analysis defines the variables that affect human performance and
offers a heuristic for analyzing any given human activity
 It provides a version of the human performance model used by Rummler in „Improving
Performance“
Activity Standards
 If measures exist, the measure whether the activity meets one or more standards
 Information of employees about standards is important and what can be done and are
not impossible
Activity Support
 Not wasting time on unqualified prospects
 Problem: developers create systems that respond to one set of inputs, but don’t build
components that respond to other inputs because they don’t realize that those situation
could occur
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Sometimes some activity interfere with another
Assuring that employees have the resources they need is important
Consequences
 Motivation = involves knowledge of the task to be performed, consequences and
feedback
 If people perform and only get complains that they didn’t to even better, in most cases it
results in even less adequate performance
 Different individuals respond to different types of questions
 Consequences that immediately follow an activity are more likely to affect performance
than those that are delayed  making an effort without knowing that there will be
consequences isn’t a good practice  should be clear
Feedback
 Every manager should ask if the employeed receive information about the outcomes of
their work (example: too little or too much production)
 Employees should be informed about defects
 There is more and less useful feedback: not too complicated
Skill, Knowledge and Capability
 In many companies: the solution to all performance problems is to provide more training
 Skills must be evaluated, it doesn’t make sense to make courses which you know
everything
 People Capability Maturity Model: emphasizes how organizations support their
workforce, and has shown cultutal changes that occur in the way people are manage das
organizations become more sophisticated in their use and management of process
11 ) Managing The Performance of Activities
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Operational manager is responsible for 5 things:
o Identifying goals
o Organizing activities to accomplish them
o Communicating goals to employees
o Monitoring the output of activities to assure they meet goals
o Diagnosing problems
Often environmental problems  create subprocesses and activities
Automatic the Enter Expense Reports Activity
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A More Complex Activity
 Definition of a task and & analysis  job description
 Information provides a measurement of how much improvement could be obtained if
everyone performing the activity as well as the best performer
Empowering Employees
 To be effective, employees need to have flexibility and authority to make quick decisions
to assure that customers are satisfied with the organization’s service, more power for
employees is good
Analyzing a Complete Automated Activity
 We need to determine inputs and outputs of the activity and measures for judging the
quality of the inputs, relations between processes and responsibilities should be also
defined
 There usually is not a one-to-one relationsip between activities identified on the process
diagram & software application
 Definition must be more precise when a process is automated than when humans work
 no common sense and can’t ask for help
Decision Management
 Evolving field that tries to structure knowledge and use it to help employeed make good
decision, decision management often integrated in business process analysis
 Artificial Intelligence (AI) = a software algorithm could use logic to process a set of rules
 Business rules vendors in 90s: automation of business rules in simplified business expert
system tools
 OMG (Objective management group) has established a task force to consider how rules,
decision management and proces ought to work together and this task force is currently
working on a draft „Decision Model and Notation“
 DRD = Decision Requirements Diagram
o First: decision  arrranged in hierarchical manner & numbered
o Input data from external world that require to make a decision (from user,
database or application)
o Also include Knowledge source
o Decision logic important: could be business rules, model...
o Decision service = software application that automates some or all of the decision
model
o DMN is compatible with BPMN
o BPMN and DMN represent a merger of business process and business decision
technologies
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Purpose of decision management: to assure that the right information and the right rules
are available and used
Knowledge Workers, Cognitive Maps, Decision management
 Simpler processes can be done by individuals that simply follow procedures
 More complex jobs require worker who think
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knowledge worker need opportunities to learn new theories, facts and procedures
some knowledge management programs are focused on providing ways: example
website with new articles
Distinguish knowledge workers and experts: experts: min. 10 years experience,
knowledge worker don’t have such complex cases
In 1960: behavior task analysis  when analyzing human performance problems
o Watson, Skinner and others illustrated how behavior of rats and pidgeons
could be controlled and predicted by observing the stimuli the animals were
subjected to and by the consequences that followed
In 1970: not bevaviorism prior, psychologist returned to study of cognition
o Emphasis on observation
Human expertice needs to be constantly maintained
Trend ist o ignore true expertise which is too hard to analyze or maintain, and to
focus on analyzing the knowledge
2 tools for cognitive analysis:
o cognitive map: diagram that defines the concepts and relationships and
knowledge worker relies on
o rule: what knowledge worker should do in the presence of a specific situation
Business Rules & Knowledge Rules
 business rule = a statement that defines some policy or practice of the business
 determine the appropriate actions at appropriate time
Business Rules & Software Development
 in 1980: Business Rules changed more often  they should be formalizes and stored
independently of software application, should be a top-down effort and a formal
vocabulary is necessary  must be interpreted the same way
 process: we would start at an enterprise level & work with executivs to formalize the
company’s policies and create a formal ontology and appropriate business rules 
implementation level: check to see where business rules appear  description of the
rules
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Rule-Based System for the Capture of Expertise
 rules stored in knowledge base
 in 90s: interest in capture of expert knowledge waned because expert rules too unstable
 business rules tend to be more stable
Risk Management & Compliance Issues
 Corporate executives have always been concerned with whether employees are
following corporate policies
 Development of formal descriptions of key business process
Business Rules Used in Business Processes
 First: creating a diagram/model with major steps of process
 More complex decisions: can be many rules in determining the terms
 Business rules are derived from common business knowledge, expert rules are derived
from human experts and not formalized, first define high-level process and then
subdivide & define a hierarchy
11. MANAGING & MEASURING A SPECIFIC BUSINESS PROCESS
Representing Management Processes
 We identify the management process that is responsible for the entire process  and
we represent the management role that is associated with each subprocess within the
process
 In an actual company some of the process might be managed by the same person
 A swimlane is within the responsibility of the manager
The Management Process
 internal management processes could be made up of 4 major subprocesses: Plan, Work,
Organize, Work, Communicate, Control work  they include a variety of different
activities
 best to use a standard framework in the company
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Plan Work
 when analysis of process  first figure out basic activities  then assume goals, plans..
 what resources are necessary?  maintain contracts with customers & suppliers
 Customer contract: should specify what will be delivered, how, when, quality, quantity
 The point is that planning, scheduling, budgeting are all exercises in which manager
determines what can be done within a set of constraints  the contraints are imposed
on a process by outputs, inputs and resources
Organize Work
 Definition & coordination necessary
 2 guiding principles:
o the process must meet the output requirements reflected in the contract negotiated
with the downstream process  process must be organized in a manner that
ensures that the output requirements can be achived
o once the output requirements are achieved, the process manager should focus on
improving the efficiency of the process itself
Communicate
 The process manager needs to communicate with his or her functional or unit manager
and with any process manager with responsibilities for a value stream, from up- and
downstream process
 Process managers are looking for opportunities to make changes
Control Work
 Control Process relies on the external measures to define internal process measures
(quality, quantity, timeliness), internal focus on cost & efficiency of process  more for
overall success
 Developing of leading indicators to make it possible to anticipate output problems
Evaluating the Performance of the Process Manager
 Process manager responsible for:
o Output specified, directly or indirectly with a real customer or with a
„downstream“ customer process
o Process improvements that render the process more efficient & effective
Continious Measurement & Improvement
 Any given activity may fail to produce adequate outputs for many different reasons
Management Redesign at Chevron
 Linking corporate goals with process measures
 In many cases process improvement is best undertaken by a group of employees working
with the manager to refine the process
12. INCREMENTAL IMPROVEMENT WITH LEAN & SIX SIGMA
Six Sigma
 Taylor: „Principles of Scientific Management“
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Differences Japanese and US cars:
o US companies usually measured the quality of outputs by sampling the products
that came off the end of the production line
o Japan: lean maufacturing  suppliers coordinate their schedules  parts only
delivered when needed
o 1980: quality control became popular in US
Six Sigma was created at Motorola in 1980s
Six Sigma originated as a set of statistical techniques that managers could use to
measure process performance
By using this technique a manager could then make changes in the process to see i fit
improved the process  then maintain when good
3 types of process change efforts
o Process management: developing an overview oft he company’s process, linking
it with corporate strategy, prioritize process invention
o Process improvement: refers to a set of techniques used to incrementally
improve & maintain process quality
o Process redesign
No instruction how to use it, works best with well-understoof, currently implemented
process
Six Sigma Concept
 Statisticans describe patterns of variations with a bell-shaped or gaussian curve
 Six Sigma refers to the variation on a specific process measure

Goal of most ist o reduce the deviation from the mean
Six Sigma Appreach to Process Improvement
 In an ideal company every process would already be mapped and measured by those
responsible for managing the process  in reality not
 They often start with a process architecture  focus on monitoring 2-3 measures
Sig Sigma Teams
 Six Sigma projects are usually chosen by a steering commitee that oversees all Six Sigma
efforts or by the process sponsor
 Black belt: when leader is especially knowledgeable in Six Sigma
 Green belt: when leader is a manager who has full-time responsibilities elsewhere and is
slightly less qualified
 Master black belt: consultant who is a specialist in Six Sigma (also statistical tools)
Phases in a Six Sigma Improvement Project (DMAIC)
 Define: customer requirements fort he process or service
 Measure: existing performance & compare with customer requirements
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Analyze: existing process
Improce: process design & implement it
Control: results & maintain the new performance
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Sequence of steps & times will vary widely
Define
 Usually by project sponsor or team champion, brief description
 Milestones and definition of roles & responsibilities
 Much emphasis on who the customers are & what satisfy them
 Six Sigma approach to process definition is summed up in the aacronym SIPOC (Supplier,
Input, Process, Output, Customer)
 Teams usually list potential requirements on a chart called CTQ-tree (Critical to Quality)
 left: overall output, one hypothesis what might result in the output
Measure
 Different types of data result in different types of curves  it is important that someone
understand these things and know how to analyze the data & evaluate results
 Basically thing one measures:
o Inputs
o Process measures (cost, cycle time, value)
o Outputs or measures of customer satisfaction
 Another way to think about measures: distinguish between process measures and
outcome measures
 In all cases it is ideal to tie the measure to customer satisfaction
 Some distinguis between output and service measures
o Output = refers to features oft he product or service
o Service = refers to more subjective things having to do what the customer
expects to be treated and what pleases the customer
 Dr Noriaki Kano: quality control expert  measures:
o Basic requirements: minimum that customer expects  when not fullfiled  get
away
o Satisfiers: additional output that pleases the customer  happier
o Delighters: customer doesn’t expect
 Each mesure must be carefully specified so everyone understands exactly how it is going
to be determined
Analyze
 Any tasks can be classified into 1 of 3 categories:
o Activity adds value that the customer, whether internal or ultimate customer, is
willing to pay for
o Activity is necessary to produce a value-added activity
o Activity does not add value
 Depends on view of the customer if value adding or not  eliminate non-value-adding
activities or even value-reducing
 One obvious way to analyze is to assign times to each of the tasks a waiter must do
 Six Sigma Project managers usually recommend a systematic analysis process
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Problem analysis in 2 stage process
o Open: Brainstorm to identify as many possible causes as possible
o Narrwo: Use tools or vote to reduce number of possible causes to a reasonable
number
o Close: Design measures, gather data, analyze them to determine which cause
most oft he deviation from the mean
Improve
 Often priorizes list which tells which improvements are likely to result in the largest
changes
Control
 Maintain the gains and improve process further through new initiatives  evaluation
necessary of output
 Measurement & control are main part of any manager
Lean
 Begins with Toyota Production system in 1978
 Began in manufacturing & relies on a variety of statistical & quality control techniques
 Six Sigma: focus on improving quality & consistency of process
 Lean: focus on improving flow of activities & reducing the costs of process
 Books suggest that Sig Sigma practitioners should be interested in 3 broad areas:
o Overall management of process change (BPM)
o Redesign process that require major changes (redesign)
o Improvement of existing process
Flow Kaizen
 focuses on high-level value stream  value stream mapping
 to have an impact it is important to begin by streamlining the entire value stream ( =
product line)
 often use timelines
Process Kaizen
 on elimination of waste
 drill down into specific processes to eliminate waste (non-value-adding)
 some are still required (example: accounting, taxpaying process)
 7 types of waste:
o Overproduction
o Waiting: period of inactivity
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o
o
o
o
o
Transport
Extra Processing: movement to storage & other extra operations
Inventory: which is not required for current customers orders
Motion: extra steps for employeed
Defects: unacceptable output
Management, Teams, A3 Pages
 TPS assumes that employees will be organized into teams that will take a bit of
responsibility for their own work  mentoring better than controlling
 Supervisor use A3 sheet of paper to describe the problem & a proposed solution in
conjunction with their employee team
 On it: title, backgound, current conditions, goals, analysis, proposed countermeasures,
plan, follow-up
13. THE BPTrends: REDESIGN METHOLOGY
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BPTrends suggests that companies develop a business process architecture & create
institutions that will allow the company to prioritize its subsequent process work
BPTrends Process redesign Methodology assumes a process redesign project that takes
place in 5 phases
Framework for a variety of best practices
Communication plan necessary, skilly in conducting research, project management
Recommendation of use of an experienced facilitator to actually manage a redesign
project
Why have a Methodology?
 Large processes take time & involve many different people
 Go through a change process that systematically gains the commotments of all the
relevant stakeholders
How does it all begin? What happens? Who makes it all happen?
 Planning effort results in business process redesign team with wide variety
 Consideration of many redesign options
 Ultimate decision made by executive committee  is responsble for adopting new
corporate strategies & setting corporate goals
 Someone must oversee the project
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Process redesign steering team should be established: they must approve work & make
everybody understand of the process
Project faciliator: manages day-to-day, writes formal planning document
Process redesign team chosen
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Phase 0: Corporate Process Management
o Decide to undertake a major process redesign & establish major goals for project
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Phase 1: Understanding the Project
o Ideally the goals & overall schedule of any specific process improvement should be
defined & limited by a charter or plan issued by BPM group
o Interaction between the project sponsor, the steering team and facilitator will also
help to refine the project plan & define scope  budget defined  then joint
meeting analysis effort parts determied  outcome should be an agreement
o Outcome: detailed project plan
Phase 2: Analyze Business Process
o Goal of phase: analyze and document the workings of an existing process
o Study how changes would improve efficiency of existing process
o Determination of vocabulary and charactericstics of each activity
o Faciliator reviews the plan: proposing overview over plan, conducts interviews and
drafts strawman AS-IS process  AS-IS defined in detail  redesign plan presented
and reviewed  the approved and initiated
o Outcome: set of documents and models describing the existing, a draft plan for
redesign of existing process, support of all key senior managers
Phase 3: Redesign Business Process
o Review As-is-process and improvement goals and identify specifix opportunities to
change process
o Brainstorming for innovative options  to-be process created  to-be-process,
development and implementation plans drafted, prsented and reviewed  then
approved and initiated
o Outcome: documentation describing the new process and management struccture
Phase 4: Implement Redesign Process
o Goal: to aquire the space & resources, create a job description. Train employees, set
up management systems
o Coordination development of needed resources  Create management and
measurement system for new process  new process HR infrasturcture created
o Monitor new process tests  new process tested, individually or together
o Approve final test results and implementation plan  revise until everyone is
satisfied
o Outcome: various groups developing infrastructure & resource materials
Phase 5: Roll out the Redesigned Process
o Goal: transition of the new process
o Changes are important  many don’t want them  pressure necessary
o Make sure everything is working
o Outcome: new process
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14. THE RENTAL CARS-R-US CASE STUDY
15. SOFTWARE TOOLS FOR BUSINESS PROCESS ANALYSIS &
DESIGN
Why use Business Process Software?
 Business process repository: a database designed to store information about business
process
 Possibility to simulate
 Track ongoing changes in process & subprocess
The variety of business tools
 Many products combine features from different technologies
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Organization Modeling Tools: corporate staregy, competitors, customers
BP Modeling Tools: analysis, modeling & redesign of business process
Decision Management tools: define decisions & capture information
Process Mining Tools: examine patterns & historical process events
BP Monitoring Tools: creating measurement systems
Packaged ERP Application: automate business process
Software Modeling Tool
BPMS Procucts: modelling process & automate the execution of the process at runtime
Process Mining Tools: use of event data from previous process executions
A professional BP Modeling Tool
 Interfaces in which user can create organization and business process diagrams
 Professional tools store model elements and database, usually called repository
 Simulation possible
Modeling with a Process Modeling Software Tool, Process Diagrams
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When you have an As-Is Diagram  you can choose specific activities to define it in
more detail
A modeling tool also makes it easy to keep track of when a process accesses a database
Other diagrams: can propose a set of activities & their relationship
The Use of Business Process Software Tools
 Once a process is stored in a process modeling tool & data about the process are logged
into a repository, information about the process would be available in future use
16. BUSINESS PROCESS MANAGEMENT SUITES
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Refers to software products that evolved in the past decade
BPMS procucts combine feauters previously found in
o Workflow & document management tools
o Enterprise application integration tools (EAI)
o Business process model tools
o New technologies derived from the internet
In 70/80s: every department had his own application  90s: more work together
Single EAI tool which can move information from one departmental application to
another, limit in early workflow was a lack of common infrastructure
Most companies moved to Service oriented architecture (SOA)
BPMS application describes a business process and incorporates a BPMS engine that will
execute the business process in real time, can also be modified
Process Diagrams and BPMS engines
 2 core elements:
o graphical modeling environment
o following the script implicit in the process description
 BPMS combines ability to manage human tasks (workflow) and software systems (EAI)
 BPMS does not create new components
What features might a BPM suit include?
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BPMS and BAM
 BAM = Business activity monitoring  it refers to any of several different approaches to
gathering information about processes & providing that data in some form to managers
 Most BPMS products being sold provide a limited type of monitoring
BPMS, SOA, adn the CLOUD
 SOA = service oriented architecture, it depends on the internet and a collection of
internet protocols including XML
 Most cost effective way to
organize & integrate distributed software
assets & organize infrastructure
 Clouds popular now
Choosing a BPMS Product
The Current BPMS Market & lead BPMS vendors
 Appian, HandySoft, IBM, OpenText, Oracle, Pegasystems, Software AG, Tibco Software
 Different focus, today client-server-design important
 BPMS market has shifted from a focus on process flow to business rules to analytics
Market Trends
 New technologies, accorting to Moore, are initially adopted by innovators, companies
that are focused on new technologies and are willing to work hard to make a new
technology work in order to gail an early advantage
 Adopters: are not focused on new technologies, but on new business approaches that
can give them a competitive advantage
 Early majoritiy: adopt when it is well proven
 Late majority: are reluctant to spend money or take chances on new approaches
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When a new technology is first introduced, lots of relatively small vendors rush to offer
products
Process Modeling Tools VS BPMS Suites
 Process Modeling Tools
o were developed to help businesspeople to analyze & redesign processes
o more mature than BPMS
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o simple modeling notations with lots of supporting utilities that make it easier for
business people to capture information about their processes
BPMS
o products less mature
o most have process modeling environments
o left over from when the tools were EAI or workflow tools, not as friendly for
business managers
o are designed to support the runtime execution of large business processes 
more complex
o BPMS automation is only in the earty adopter phase
Creating a BPMS Application
 Human centric BPMS (workflow) or Integration centric BPMS (EAI) or decision making
BPMS (rules-based)
 Dont start a BPMS project until you are sure that process you intend to manage with the
BPMS application is already running as you want it to run once it’s a BPMS application
17. ERP-Driven Redesign
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First off-shelf application  companies began to reposition themselves  then ERP,
CRM, EAI
Davenport argued that a packaged application approach allowed companies to integrate
and improve their software systems
Processes, Packages, Best Practices
 ERP: first you begin with the solution and proceed to modify your existing inventory
process to accomodate the in and outputs oft he new inventory application
o Represent a reasomable approach to improving a wide variety of business
processes
o Problem comes when companies try to use ERP for tasks that are not routine
o Problem when firms want to integrate applications in webportals
Closer look on SAP
 Provides overviews which it calls business maps, of processes that it offers in a number
of industry specific areas
 Components & subcomponents
 Many are using it  no competitive advantage
 Process notation used in SAP reference model by ARIS is designed to tell ist users more
about the control flow between process
Implementing an ERP-Driven Design
 Most important thing is the training of end users
 You begin with an architecture and choose components to use  then you turn to
specific process sequences and choose specific activities to implement
 You can create swimplanes for ERP application and indicate how the ERP applications
interface with existing process flows
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Using BPMS to improve ERP installations
 Once the process is standardized, it is possible to configure single instances of ERP to
support the new standard process
Enterprise resource Planning & Business Process Management Suite
 You can use the BPMS product to seperate the dependencies between the ERP modules
and to provide tayloring, within the BPMS package, without having to tailor the ERP
modules
 ERP modules can be managed by the BPMS tool rather than compiled together
 One of the most popular uses of BPMS software to date is to create process
management system that can manage ERP applications
 By keeping the ERP applications generic and doing any special tailoring in the BPMS
application, the company reduces it costs & increases its control and ability to change
rapidly
ERP VS BMPS Applications
 BPMS products rely on BPMS engines  when it runs it’s nearly impossible to change
 The heart oft he Chordiant CRM Suite is Process design Tool, in which any process can be
examined and modified
 The Chordiant BPM engine controls the execution oft he process and the invocation of
components
o 3 sets of pre-defined process:
 set to help marketing managers to plan
 retail channel
 contact center
18. THE FUTURE BUSINESS PROCESS MANAGEMENT
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Situation today: concern of companies since the industrial revoulution  global markets
grown  new technologies
No consistent patetern  some companies seem to emphasize hiring individuals, some
have a systematic approach
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2-fold challange:
o educate people in the concepts and practices of process improvement
o convince senior executives that tey will understand their organization better
it shows all oft he departmental activities are tied together in cross-departmental
processes that ultimately deliver value to customers and other stakeholders
idea = organizations are systems
each activity should generate data on in- and outputs, on time and cost
when enterprise becomes more mature in their understanding and use of processes ,
they learn to constantly adjust their process & to align the activities within a process in
response to changes in their external environment
the process organization is constantly monitoring its externam environment for changes
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