Business Process

Management
2022/2023

Frederico Cruz Jesus

[email protected]

Joana Neves
[email protected]

João Gomes
[email protected]
 What is BPM? Why are you here?

• A body of methods, techniques and tools to discover, analyze, redesign, execute

and monitor business processes.

• The art and science of overseeing how work is performed in an organization to

ensure consistent outcomes and to take advantage of improvement opportunities

• BPM is not about improving the way individual activities are performed. Rather, it
is about managing entire chains of events, activities and decisions that ultimately
add value to the organization and its customers. These “chains of events, activities
and decisions” are called processes.

Dumas, et al. (2013)

Why BPM? It enables change in business process, enabling business value. It enables
process change
 Business Process

Points when a decision that affects the execution of a

process is taken. They affect the outcome of processes Events

Things that occur automatically

(no intervention; no duration) Activities

May be multiple. Characterized as either positive or negative,

dependent if that same process brought value to the actor(s) Task
involved in the process

Entities that range from individuals, to organizations, Decision

information systems, physical objects points

Do not occur automatically (require intervention), Actors

is consisted of many steps and take time

A very simple activity that can be seen as one Outcomes

single unit of work
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 Business Process

What is a Business Process?

“a complete set of activities end-to-end that creates value for the customer”
(Michael Hammer, Harper Business, 1996)

or,

“a collection of inter-related events, activities and decision points that involve a

number of actors and objects, and that collectively lead on an outcome that is of
value to at least one customer” (Dumas et al., 2013)

Types of Processes

Quote-to-order Order-to-cash Procure-to-pay Issue-to- Application-to-

resolution approval

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 Historic Perspective of BPM

1 The functional organization

• taylor’s approach

2 Process thinking
• Do it cheaper (cut costs);
• Do it faster (reduce turnaround times);
• Do it better (reduce error rates).

3 BPR

BPM
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The BPM Lifecycle

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 The BPM Lifecycle

1- Process Identification
• start identifying the processes that are relevant
Process to the problem
Identification • delimiting their scope
• identifying relationships with other processes
• Identification of performance measures

Output
Process Architecture

Performance metrics or measures

Cost-related Assess the (financial) costs that a given process yields to a company
Time-related Focus on the time spent between the beginning and the end of a
given process. Are also know as cycle time
Error-related Focus on quality of business processes
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 The BPM Lifecycle

2- Process Discovery
• understand the business process in detail (the
current state of each of the relevant processes
is documented)

Output
Process
Discovery

As-is processes

should reflect the understanding that people in

the organization have about how work is done

use diagrams in order to model business processes

In general a diagrammatic process model consists of:

• Activity nodes
• Control nodes
• Event nodes 8
 The BPM Lifecycle

There are several languages to process modelling. One of them is Business Process
Model and Notation (BPMN), and BPMN 2.0.

Activities are represented as

Participants rounded rectangles

Activities and control nodes are connected

by means of arcs (called flows)

Control nodes (called gateways) are

represented using diamond shapes
Pool

Lane

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 The BPM Lifecycle

3- Process Analysis
• analysis of the as-is process
• assessment of performance’s potential issues
and space for improvement
• define the suitable performance measures
mentioned earlier
Process
• quantify them in the as-is process
Analysis
• take the appropriate actions to solve possible
issues

Quantitative and qualitative analysis

Output
Insights on weaknesses and their impact

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 The BPM Lifecycle

4- Process Redesign
• identifying and analyzing potential solutions for
the problems identified previously

Output
To be process model
Process
Redesign

important cost of the changes VS expected benefits that changes would give

Note that:
• Solving one issue in a process may potentially cause other issues afterwards;
• Changing the way processes are conducted its not easy (people often resist changes);
• If the change involves also changing the IS, its cost may be significant, and affect and/or depend upon
other third-party organizations 11
 The BPM Lifecycle

5- Process Implementation

• implementation of the necessary changes so that the

to-be process can eventually be put into execution

Output
Process
Implementation
Executable process model

May comprise two complementary substages:

Organizational Set of activities required to change the way of working

of all participants involved in the process
Process Change Management
Implementation Configuration/re-configuration or implementation of a
Process Automation IT/IS to support the “to-be” process

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 The BPM Lifecycle

6- Process Monitoring and Controlling

• Monitor the implemented to be process

• Monitor the process in order to identify
needed adjustments
Process
Monitoring and • Control the execution of the process
Controlling

Output
Conformance and performance insights

Managing a process requires a continuous effort. Lack of continuous monitoring

and improvement of a process leads to degradation. For this reason, BPM lifecycle
should be seen as being circular.
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 The BPM Lifecycle

Stakeholders in the BPM Lifecycle

Management Depending on how the management of a company is organized, one

Team might find the following positions: CEO, COO, CIO, CFO, HR director
Responsible for the efficient and effective operation of a given process
Process
(planning, organizing, monitoring, controlling, define performance
Owners
measures and objectives)
Process Human actors who perform the activities of a business process on a
Participants day-to-day basis
Process Conduct process identification, discovery (in particular modeling),
Analysts analysis and redesign activities
Are involved in process redesign and implementation. They interact
System
with process analysts to capture system requirements. Then, they
Engineers
translate requirements into a system design
Responsible for maintaining a BPM culture and ensuring that this BPM
BPM Group
culture is supporting the strategic goals of the organization

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Thank you!

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