The Evolution of Business
Process Management
Paul Harmon
Executive Editor
Business Process Trends
© 2005, Business Process Trends
www.bptrends.com
1
Process Integration in Nineties
Executive
Management
Strategy
Committee
Sales
Department
Horizonally Integrated Business Process
That Delivers A Specfic Product to a Targeted Group of
Customers
© 2005, Business Process Trends
www.bptrends.com
2
Today: Horizontal & Vertical Alignment
Executive
Management
Strategy
Committee
Sales
Department
Horizonally Integrated
Processes
From Suppliers to Customers
Vertically
Integrated
Measures,
Managers, and
Resources
Employees & IT Applications and
Infrastructure
© 2005, Business Process Trends
www.bptrends.com
3
Why the Interest in Business Process?
• Make the company more efficient and
productive by improving existing
processes
• Allow the company to shift goals or get
into new businesses by providing the
company with the ability to quickly and
efficiently create new business processes
• Keep focused on customers
• Automate where reasonable
© 2005, Business Process Trends
www.bptrends.com
4
Business Process Change Initiatives
© 2005, Business Process Trends
www.bptrends.com
5
We Have Lots of Technologies to Use
1980s
1990's
Porter's Value
Chains
Management
Business
Process
Redesign
Performance
Improvement
Balanced
Scorecard
Business Process
Reengineering
Activity Based
Costing
2000s
BPO
SCOR
VCOR
Rummler-Brache
Performance Improvement
Six Sigma
Quality
Control
Total Quality
Management
Lean
SEI's CMM for IT
Workflow
BPM
Information
Technology
Business Rule
Management Systems
EAI
Packaged Software
(ERP, CRM)
Software Modeling Tools and Methodologies
(CASE, UML, MDA)
© 2005, Business Process Trends
www.bptrends.com
6
The BPTrends Pyramid
Strategy
Level
Plans
& Goals
Process
Management and
Measurement
Value Chain
Specific Process
Process Performed
by Employees
Business Process
Level
Process Automated
by IT Systems
Implementation
Level
Physical Plant and Hardware Used.
© 2005, Business Process Trends
www.bptrends.com
7
Some of the Most Important Trends
•
•
•
•
•
•
•
•
•
1. BP Management System
2. BP Architecture
3. BP Process Analysis & Redesign Approach
4. Business Rules Management System
5. BP Automation (BPMS)
6. IT Components Aligned with BP
7. BP-based Enterprise Monitoring System
8. HR Support Aligned with BP
9. Significant BP Outsourcing
© 2005, Business Process Trends
www.bptrends.com
8
An Aside on the Meaning of Process
Value Chain
Architecture
SCOR Framework
Business Process
Process Redesign Projects
Business Rule Projects
Six Sigma Projects
IT Automation Projects
SAP Process Models
Business Process
Process
Process
Process
Sub-Process
Sub-Process
Sub-Process
Sub-Sub-Process
Sub-Sub-Process
Activity
© 2005, Business Process Trends
Business Process
www.bptrends.com
Activity
9
1. BP Management System
• Senior Management’s Vision: The ProcessCentric Company
• Senior Management’s Goal: Coordinate and
Prioritize all the diverse process initiatives
• Train Managers to Manage Processes
• Align Manager’s Incentives with Processes
• A BP Redesign Group
• Teams Trained to Undertake Constant Process
Improvement (6 Sigma)
© 2005, Business Process Trends
www.bptrends.com
10
Coordinating the Management of Processes
CEO
Process Architecture
Committee
Widget
Process
SVP Widget
Process
Process
Management
Team
Executive Committee
Sales
Department
VP
Sales
Manufacturing
Department
VP
Manufacturing
Sales Supervisor
Manf.
Supervisor
Sales
Process
Manufacturing
Process
Delivery
Department
VP
Delivery
Delivery
Supervisor
Delivery
Process
Customer
Widget Value Chain
© 2005, Business Process Trends
www.bptrends.com
11
2. BP Architecture
• The key tool for process management
• A high-level overview of the value chains and
key processes that make up the organization
• An alignment of strategic goals, value chains
and key processes
• A clear-cut way to monitor the performance of
the value chains and processes (KPIs)
• A BP Architecture is NOT an IT EA Architecture
© 2005, Business Process Trends
www.bptrends.com
12
Too Many Independent Hierarchies
An Aligned Hierarchy
of Organization Goals
An Aligned Hierarchy
of Business Policies/
Rules
© 2005, Business Process Trends
An Aligned Hierarchy
of Process Measures
An Aligned Hierarchy of
Job Responsibilities
www.bptrends.com
13
We Need to Integrate Our Hierarchies
An Aligned Hierarchy of
Organization Goals
An Aligned Hierarchy of
Job Responsibilities
An Aligned Hierarchy of
Process Measures
An Aligned Hierarchy of
Business Policies/Rules
© 2005, Business Process Trends
www.bptrends.com
14
BP Operation Reference Frameworks
• A OR Framework is a template for a BP
Architecture
• The Supply Chain Council’s
SCOR Framework
• The TeleManagement Forum’s
eTOM/NGOSS Framework
• Hewlett Packard’s Framework Suite
• The VCOR Initiative
© 2005, Business Process Trends
www.bptrends.com
15
SCOR MODEL: Level 1
Supply
Chain
Plan
Source
Make
Deliver
Return
© 2005, Business Process Trends
www.bptrends.com
16
The Level 1 SCOR Notation
P1
P1
P3
P2
European
RM Supplier
S2
P3
P4
M2
P1
P2
P4
P2
P4
D1
S1
D1
S1
DR1
SR1
DR1
SR1
DR3
SR3
D2
S2
DR1
Key Other
RM Suppliers
S1
M1
RM
Suppliers
© 2005, Business Process Trends
D1
SR1
M1
S1
ALPHA
www.bptrends.com
Alpha
Regional
Warehouse
Customer
17
SCOR’s Level 1 Scorecard
Customer Facing Attributes
Performance
Attribute
Performance Attribute Definition
The performance of the supply chain in
delivering: the correct product, to the correct
Supply Chain Delivery place, at the correct time, in the correct
Reliability
condition and packaging, in the correct
quantity, with the correct documentation, to
the correct customer.
Supply Chain
The velocity at which a supply chain provides
Responsiveness
products to the customer.
Supply Chain
Flexibility
The agility of a supply chain in responding to
marketplace changes to gain or maintain
competitive advantage.
Level 1 Metric
Delivery Performance
Fill Rates
Perfect Order Fulfillment
Order Fulfillment Lead Times
Supply Chain Response Time
Production Flexibility
Internal Facing Attributes
Cost of Goods Sold
Supply Chain Costs
The costs associated with operating the
supply chain.
Total Supply Chain Management
Costs
Value-Added Productivity
Warranty / Returns Processing
Costs
Supply Chain Asset
Management
Efficiency
© 2005, Business Process Trends
The effectiveness of an organization in
managing assets to support demand
satisfaction. This includes the management
of all assets: fixed and working capital.
www.bptrends.com
Cash-to-Cash Cycle Time
Inventory Days of Supply
Asset Turns
18
SCOR Benchmarks Provide Instant ROI
Supply Chain SCORcard
EXTERNAL
Overview Metrics SCOR Level 1 Metrics
Industry Benchmarks
Actual
Parity
Advantage
Superior
Delivery Performance
to Commit Date
50%
85%
90%
95%
Supply Chain
Reliability
Fill Rates
63%
94%
96%
98%
0%
80%
85%
90%
$30M Revenue
Responsiveness
Perfect Order
Fulfillment
Order Fulfillment
Lead Times
Supply Chain
Response Time
35 days
7 days
5 days
3 days
$30M Revenue
97 days
82 days
55 days
13 days
Key enabler to cost and
asset improvements
Production Flexibility
45 days
30 days
25 days
20 days
Total SCM
Management Cost
19%
13%
8%
3%
$30M Indirect Cost
Warranty Cost
NA
NA
NA
NA
NA
NA
$156K
$306K
$460K
NA
119 days
55 days
38 days
22 days
NA
196 days
80 days
46 days
28 days
$7 M Capital Charge
2.2 turns
8 turns
12 turns
19 turns
NA
Flexibility
INTERNAL
Cost
Assets
Value Added Employee
Productivity
Inventory Days of
Supply
Cash-to-Cash Cycle
Time
Net Asset Turns
(Working Capital)
© 2005, Business Process Trends
www.bptrends.com
Value from Improvements
19
3. BP Process Analysis & Redesign
• New processes need to be designed
• Inefficient or ineffective processes need to
be redesigned
• Processes that work need to be improved
• The entire effort needs to be coordinated
with methodologies, software tools, and a
repository
© 2005, Business Process Trends
www.bptrends.com
20
The Types of BP Methodologies
Mangement and
Measurement Issues
Involved Establishing
Strategy and Goals
Mangement and
Measurement Issues
Involved in
Executing Actual
Business Processes
and Activities
Activity
Management
Plan
Plans, Budgets,
Hiring, Resource
Allocation,
Feedback,
Consequences
Broad Based
BP Change
Methodologies
BP Architecture
Business
Process
Level
Business Process
Narrow
Specific
Activity
Focused BP
Change
Methodologies
Human
Resource Architecture
Management and
Measurement Issues
Involved in the
Implementation of BPM
solutions.
Organization
Performance
Strategy
and Goals
Strategy
Level
Activity
Measurement
Plan
Activity/
Performance
Monitoring
System
BP Analysis
& Redesign
Implementation
Level
IT Architecture
Job
Design
Human-IT
Interface
Model
Application
Architecture
Job Aids,
Training
Programs,
Knowledge
Management
System
Screens
and
Reports
Application
Designs
and Code
Data
Architecture
Network
Architecture
Logical
Level
Database
Technology
Physical
IT Focused
BPArchitecture
Designs and
Level
Data
Change
Management
Hardware Architecture
Methodologies
Systems
Physical Plant and Hardware Used.
© 2005, Business Process Trends
www.bptrends.com
21
BP Methodologies
• Broad BP Change Methodologies
– Process Renewal Methodology (PRG)
– Rummler Methodology (PDL)
– xBML Methodology (Business Genetics)
• More Focused Process Change Methodologies
–
–
–
–
Balanced Scorecard
Six Sigma DMAIC
Proteus Business Rules Methodology (BR Solutions)
ARIS Methodology (IDS Scheer)
• IT Automation Methodologies
– UREP Methodology (Rational/IBM)
– IDEF Methodology
– Martin Ould’s RIVA Methodology
© 2005, Business Process Trends
www.bptrends.com
22
Six Sigma and BPM
1. Define
2. Measure
3. Analyze
4. Improve
5. Control
Plan
Project
Identify
Measures
Analyze Data
Implement
Measurement
Document and
Maintain
1. Define project
2. Identify customer
requirements
3. Document
process
4. Set goal
1. Identify Measures
2. Define measures
3. Develop & test
data collection
methods
4. Define baseline
measures
1. Analyze date
2. Explore possible
causes and test
hypothesises
3. Identify causes
1. Document and
keep score of results
1. Select a soluton
2. Pilot test solution
3. Implement full scale
solution
1-2 wks.
ongoing
1-2 wks.
4-8 wks
2 wks.
34.13%
2.14%
0.13%
13.06%
-3
0.13%
© 2005, Business Process Trends
-2
-1
mean
68.26%
95.46%
99.73%
www.bptrends.com
+1
+2
+3
23
An Aside: BPM Software Product Space
Graphics
Tools
Organization
Modeling Tools
Statistics
Tools
BP
Modeling
Tools
Business Process
Architecture Tools
Process
Simulation
Tools
Modeling Capability
+ Repository
BP
Languages
Business Rule
Management Tools
XML DSLs and
BPEL, BPML
Tool for creating, storing
and using business rules.
EAI Tools
Universal
BP Repository
BPM Suites
BPM
Applications
Modeling Capability
+ BPM Engine
Workflow
Tools
Modeling Capability
+ BPM Engine
+ Application Components
Application Servers
Software Development
Suites
BP
Monitoring
Tools
Database capable of
storing information
from all the BP tools.
Packaged/
Enterprise
Application
Suites
Modeling Capability +
Ability to Monitor Runtime Process+
Dashboard Capability
BI and Data Warehouse
Products
© 2005, Business Process Trends
www.bptrends.com
24
BP Architecture, Modeling & Simulation Tools
Graphics
Tools
Organization
Modeling Tools
Statistics
Tools
BP
Modeling
Tools
Business Process
Architecture Tools
Process
Simulation
Tools
Modeling Capability
+ Repository
BP
Languages
Business Rule
Management Tools
XML DSLs and
BPEL, BPML
Tool for creating, storing
and using business rules.
EAI Tools
Universal
BP Repository
BPM Suites
BPM
Applications
Modeling Capability
+ BPM Engine
Workflow
Tools
Modeling Capability
+ BPM Engine
+ Application Components
Application Servers
Software Development
Suites
BP
Monitoring
Tools
Database capable of
storing information
from all the BP tools.
Packaged/
Enterprise
Application
Suites
Modeling Capability +
Ability to Monitor Runtime Process+
Dashboard Capability
BI and Data Warehouse
Products
© 2005, Business Process Trends
www.bptrends.com
25
Business Process Modeling Tools
• Include architecture, process modeling
and simulation capabilities
• Are holding their own against BPM Suites
that also include modeling capabilities
• Are popular with managers and redesign
teams
© 2005, Business Process Trends
www.bptrends.com
26
Some BP Architecture, Modeling & Simulation Tools
•
•
•
•
•
•
•
•
•
•
CACI’s SIMPROCESS
Holocentric’s Holocentric
IDS Scheer’s ARIS
iGrafx’s iGrafx Process
MEGA International’s MEGA
Mi Services’ Mi SCOR
Popkin Software’s System Architect
Proforma’s ProVision
ProModel’s Process Simulator
xBPM Innovations’ xBPL 2005 Modeling Suite
© 2005, Business Process Trends
www.bptrends.com
27
4. Business Rule Management Tools
Graphics
Tools
Organization
Modeling Tools
Statistics
Tools
BP
Modeling
Tools
Business Process
Architecture Tools
Process
Simulation
Tools
Modeling Capability
+ Repository
BP
Languages
Business Rule
Management Tools
XML DSLs and
BPEL, BPML
Tool for creating, storing
and using business rules.
EAI Tools
Universal
BP Repository
BPM Suites
BPM
Applications
Modeling Capability
+ BPM Engine
Workflow
Tools
Modeling Capability
+ BPM Engine
+ Application Components
Application Servers
Software Development
Suites
BP
Monitoring
Tools
Database capable of
storing information
from all the BP tools.
Packaged/
Enterprise
Application
Suites
Modeling Capability +
Ability to Monitor Runtime Process+
Dashboard Capability
BI and Data Warehouse
Products
© 2005, Business Process Trends
www.bptrends.com
28
Business Rules Management
• Goal: Abstracting business rules from policy
manuals, software, and from training programs
and saving them in a repository so they can be
systematically managed
• The effort needs to be aligned with business
process efforts
• OMG Business Rule Standards
• Business Rules Community
– www.brcommunity.com
• Business Rule Management Vendors
© 2005, Business Process Trends
www.bptrends.com
29
5. BP Automation: BPM Systems
• The idea of using software to manage
processes in something close to real time
• New and confusing
• Most companies are just exploring the
idea and it will evolve rapidly over the
course of the next 2-3 years
• There are no clear winners yet: Most
companies are yet sure how they’ll use
this technology
© 2005, Business Process Trends
www.bptrends.com
30
What Is a BPM Suite?
Logical
Description of
the Process
Software Tool That Displays a Graphical View of a Process
A
B
C
D
Software Tool (Engine)
That Manages Links
Between Diagram and
Impelementation
BPMS
Engine
Physical
Implementation
of the Process
© 2005, Business Process Trends
E
Software
Component
B
Software
Component
C
www.bptrends.com
Enterprise
Application
Module D
Enterprise
Application
Module E
31
The Key is Controlling the Business Process
Business Analyst
Interface
Logical Description of the Process
Software Tool That Displays a Graphical View of a Process
C
BPMS Engine
A
B
Software Tool
(Engine) That
Manages Links
Between Diagram
and Impelementation
D
User
Interface
Software
Component
C
E
Enterprise
Application
Module D
Software
Component
B
Enterprise
Application
Module E
Physical
Implementation
of the Process
© 2005, Business Process Trends
www.bptrends.com
32
BPM Suites
Graphics
Tools
Organization
Modeling Tools
Statistics
Tools
BP
Modeling
Tools
Business Process
Architecture Tools
Process
Simulation
Tools
Modeling Capability
+ Repository
BP
Languages
Business Rule
Management Tools
XML DSLs and
BPEL, BPML
Tool for creating, storing
and using business rules.
EAI Tools
Universal
BP Repository
BPM Suites
BPM
Applications
Modeling Capability
+ BPM Engine
Workflow
Tools
Modeling Capability
+ BPM Engine
+ Application Components
Application Servers
Software Development
Suites
BP
Monitoring
Tools
Database capable of
storing information
from all the BP tools.
Packaged/
Enterprise
Application
Suites
Modeling Capability +
Ability to Monitor Runtime Process+
Dashboard Capability
BI and Data Warehouse
Products
© 2005, Business Process Trends
www.bptrends.com
33
A BPM Continuum
Languages provide the maximum
flexibility and require the most work
to get to a complete BPM system.
These products are invariably used
by IT developers
Languages
Vendors who
sell languages,
like BPEL or
Java
BPM
Servers
Vendors who
sell BPM server
platforms
Applications provide the minimum
flexibility and require the lest work
to get to a complete BPM system.
These products can be used by
business users.
Tools/Utilities
BPM
Suites
BPM Suites
+Frameworks
Complete BPM
Applications
Vendors who sell
stand alone tools
or utilities.
Vendors who
sell BPM
Suites
Vendors who
sell BPM
Suites with
frameworks or
templates
Vendors who
sell complete
BPM systems
or applications.
BP Modeling Vendors
Business Rule Mang.
System Vendors
BAM Monitoring
Vendors
© 2005, Business Process Trends
www.bptrends.com
34
A Layer Diagram of the BPM Space
BPM System or Applications
BPMS Application
An application that implements a
process that can be examined
and changed dynamically.
BP Knowledge
Frameworks
User Interfaces
to Support
Specific
Processes
Rules for
Specific
Processes
Process
Measures for
Specific
Processes
Models for
Specific
Processes
Software
Components or
Modules
BPM Suite
BPM SUITE
BPM Tools/Utilities
User Interface
Tools
BPM Server
(Engines)
Process
Modeling Tool
Business Rule
Engine
Process
Monitoring
Tools (BAM)
Software
Requirements
Tool
BPM Engine
(employees)
BPM Engine
(Software)
Language/Platform
J2EE
© 2005, Business Process Trends
BPEL
www.bptrends.com
XML
Eclipse
35
Some BPM Suite Vendors
•
•
•
•
•
•
•
•
•
•
•
Appian’s Appian Process Engine
Ascentn’s AgilePoint BPMS
B2B Internet’s XicoBPM
Chordiant’s Straight Through Service Processing
CommerceQuest’s TRAXION Enterprise BPM Suite
Eg Solutions’ eg Work Manager
Filenet’s Filenet Business Process Manager
PegaSystems’ PegaRULES Process Commander
TIBCO’s TIBCO Staffware Process Suite
Ultimus’ Ultimus BPM Suite
IBM’s WebSphere Business Integration suite
© 2005, Business Process Trends
www.bptrends.com
36
BPEL and BPMN
• Being embraced rather than understood
• BPEL is currently only a variation on EAI
• Maybe a BPEL+ can support both
employee and IT activities, but that is in
the future
• BPMN is a nice notation that hasn’t got
much traction yet; ultimately it’s an
extension of UML’s Activity Diagrams
© 2005, Business Process Trends
www.bptrends.com
37
Petri Nets and Pi Calculus
• There are groups meeting to sort out the
underlying basis for process automation
• There will be meetings on this in 2005
• They will probably get passed up by the
vendors and user companies who will
select more pragmatic solutions
© 2005, Business Process Trends
www.bptrends.com
38
6. IT Components Aligned with BP
• Ultimately BPM relies on software
components
• They will need to be developed or
changed as processes change
• Thus, BPM needs a clean link to Software
Development technologies
• UML, MDA, and components
© 2005, Business Process Trends
www.bptrends.com
39
The OMG’s Model Driven Architecture
ComputationIndependent Model
(CIM)
Created by Business
Analysts to Describe
Business
CIM >> PIM
Mapping
PlatformIndependent Model
(PIM)
Created by Architect/
Designer to Describe
Archtiecture
PIM >> PSM
Mapping
Platform-Specific
Model
(PSM)
Created by Developer or Tester
to Implement Solution
© 2005, Business Process Trends
www.bptrends.com
PSM >> Code
Mapping
Code
40
The OMG’s BP Metamodels
MOF
Meta Object
Facility
XMI
UML 2.0
Ontology
Metamodel
Various
BP Tools
Business Process Definition Metamodel
J2EE
© 2005, Business Process Trends
BPMN
BPEL
www.bptrends.com
Business Rules
Metamodel
Various
BP Tools
41
A BP Repository and MDA
Graphics
Tools
Can Create Diagrams.
No Repository.
Organization
Modeling Tools
Used to Support 6 Sigma
Projects
BP
Modeling
Tools
Business Process
Architecture Tools
BP
Languages
Statistics
Tools
Modeling Capability
+ Repository
Process
Simulation
Tools
Business Rule
Management Tools
XML DSLs and
BPEL, BPML
Tool for creating, storing
and using business rules.
EAI Tools
BPM Suites
Software Development
Suites
BPM
Applications
Modeling Capability
+ BPM Engine
Modeling Capability
+ BPM Engine
+ Application
Components
Application Servers
Workflow
Tools
BP
Monitoring
Tools
Universal
BP
Repository
•
•
•
•
Adaptive
IBM
BEA
Oracle
Database capable of
storing information
from all the BP tools.
Packaged/
Enterprise
Application
Suites
Modeling Capability +
Ability to Monitor Runtime Process+
Dashboard Capability
BI and Data Warehouse
Products
© 2005, Business Process Trends
www.bptrends.com
42
7. BP-Based Enterprise Monitoring Systems
Graphics
Tools
Organization
Modeling Tools
Statistics
Tools
BP
Modeling
Tools
Business Process
Architecture Tools
Process
Simulation
Tools
Modeling Capability
+ Repository
BP
Languages
Business Rule
Management Tools
XML DSLs and
BPEL, BPML
Tool for creating, storing
and using business rules.
EAI Tools
Universal
BP Repository
BPM Suites
BPM
Applications
Modeling Capability
+ BPM Engine
Workflow
Tools
Modeling Capability
+ BPM Engine
+ Application Components
Application Servers
Software Development
Suites
BP
Monitoring
Tools
Database capable of
storing information
from all the BP tools.
Packaged/
Enterprise
Application
Suites
Modeling Capability +
Ability to Monitor Runtime Process+
Dashboard Capability
BI and Data Warehouse
Products
© 2005, Business Process Trends
www.bptrends.com
43
BP-Based Enterprise Monitoring Systems
• Everyone seems to think its part of BPM
Systems
• It’s important to discriminate between
monitoring a specific process and providing
information for senior managers
• Business Performance Management,
BAM, BI and Data Warehouses
– The BPM Forum
– IBM/OASIS Events Standard
© 2005, Business Process Trends
www.bptrends.com
44
Process Monitoring vs. Value Chain Monitoring
Strategy Level
4
CEO
Staff Manager
4
VP Line Mang
3
Manager
Value Chain
Level
2
Process Level
Process
Supervisor
3
Filtered &
Summarized
Information
Plan & Staff
2
Monitor & Control
Business Process or
Activity - Execution
Activity and
Implementation
Levels
1
BI
Application
Application that
automates part of
activity
Data
Warehouse
Other
Databases
© 2005, Business Process Trends
4GL System
Creates Inventory
Report
Database
for Appl.
Data
www.bptrends.com
45
BPM Applications
Graphics
Tools
Organization
Modeling Tools
Statistics
Tools
BP
Modeling
Tools
Business Process
Architecture Tools
Process
Simulation
Tools
Modeling Capability
+ Repository
BP
Languages
Business Rule
Management Tools
XML DSLs and
BPEL, BPML
Tool for creating, storing
and using business rules.
EAI Tools
Universal
BP Repository
BPM Suites
BPM
Applications
Modeling Capability
+ BPM Engine
Workflow
Tools
Modeling Capability
+ BPM Engine
+ Application Components
Application Servers
Software Development
Suites
BP
Monitoring
Tools
Database capable of
storing information
from all the BP tools.
Packaged/
Enterprise
Application
Suites
Modeling Capability +
Ability to Monitor Runtime Process+
Dashboard Capability
BI and Data Warehouse
Products
© 2005, Business Process Trends
www.bptrends.com
46
Packaged Applications vs. BPM Apps
• Traditional Packaged Applications are difficult to
understand or to change
• BPM applications will incorporate Process
Models and BPM Enginbe based to make them
easier to manage and change
• Packaged application vendors will attempt to
transition to BPM (SAP’s NetWeaver)
• BPM Suite vendors will evolve into BPM
application vendors
• This is a very important part of BPM that has
hardly begun
© 2005, Business Process Trends
www.bptrends.com
47
8. HR Support Aligned with BP
• BPM Suites will place more importance on
analyzing employee activities and aligning
them with business processes
• Aligning Knowledge Management with
processes
• Aligning employee incentives and
feedback with processes
• Aligning training with processes
• www.ispi.org
© 2005, Business Process Trends
www.bptrends.com
48
The ISPI Human Performance Model
Process Defined
Activity Specifications
Activity Support
Expense
Reports
activity
measures
Activity:
Enter Expense
Reports
*
Updated Expense
Report Ledger
Consequences
Feedback
4. Consequences
Skill, Knowledge & Capability
Feedback
© 2005, Business Process Trends
www.bptrends.com
49
9. Business Process Outsourcing
• We are going to create more decentralized
organizations, using outsourcing
• The key is managing BPO is to have a
good BP architecture and to manage with
process-oriented techniques
• BPO vendors will become major
advocates and consumers of BPM
© 2005, Business Process Trends
www.bptrends.com
50
Some of the Most Important Trends
•
•
•
•
•
•
•
•
•
1. BP Management System
2. BP Architecture
3. BP Process Analysis & Redesign Approach
4. Business Rules Management System
5. BP Automation (BPMS)
6. IT Components Aligned with BP
7. BP-based Enterprise Monitoring System
8. HR Support Aligned with BP
9. Significant BP Outsourcing
© 2005, Business Process Trends
www.bptrends.com
51
SUMMARY
• The challenge is the management of business
process change
• We have too many technologies and not enough
focus on why we should do BPM in the first
place
• We manage processes to improve corporate
performance
• Companies need to set goals, develop a
strategy, and then create a BP organization that
can organize and coordinate their BPM
resources
© 2005, Business Process Trends
www.bptrends.com
52
For More Information
www.bptrends.com
The most comprehensive source of
information and analysis on trends,
directions and best practices in Business
Process Management
pharmon@bptrends.com
cwolf@bptrends.com
© 2005, Business Process Trends
www.bptrends.com
53