REVIEWER ON BPM

1. Definition of Business Process Management (BPM)

• BPM is a discipline that improves business processes through continuous evaluation and
optimization.
• It focuses on enhancing efficiency, effectiveness, and flexibility in process execution.
2. Key Ingredients of a Business Process
• Input: What starts or triggers the process.
• Output: The result or goal the process aims to achieve.
• Activities: Tasks performed to reach the goal.
• Resources: People, systems, and data required to complete the tasks.
• Events: Triggers or milestones in the process.
3. Origins of BPM
• Emerged from the concept of Business Process Reengineering (BPR).
• BPR was focused on radical process change, while BPM emphasizes continuous,
incremental improvements.
• Functional Organization: Pre-BPM organizations structured by functions, which created
silos, slowing down cross-functional tasks.
• Process Thinking: Shifted focus from functional areas to end-to-end processes that cut
across departments.
4. The BPM Lifecycle
BPM follows a cyclical process that ensures continuous improvement:
• Process Identification: Define which business processes need to be improved.
• Process Discovery: Map out the "As-Is" state of processes, documenting how they
currently operate.
• Process Analysis: Identify bottlenecks or inefficiencies within the "As-Is" process.
• Process Redesign: Design the "To-Be" process that resolves identified issues.
• Process Implementation: Execute the redesigned process.
• Process Monitoring: Track and evaluate the new process's performance.
5. Business Process Modeling Notation (BPMN)
• BPMN is a graphical representation of business processes used during the discovery and
redesign phases.
• Key BPMN Symbols:
o Event: Circles that represent triggers or milestones.
o Activity: Rounded rectangles that represent tasks.
o Gateway: Diamonds that represent decision points.
o Flow: Arrows that connect events, activities, and gateways.
6. Process Identification
• The first phase of the BPM lifecycle.
• Involves identifying which processes are relevant to the problem and need improvement.
• Results in a Process Architecture, which maps out all identified processes and their
relationships.
7. Process Architecture
• A structured view of an organization’s processes and how they interact.
• Identifies core, management, and supporting processes.
• Helps prioritize processes for improvement.
8. Process Discovery
• The "As-Is" process is documented in this phase, usually through interviews, workshops,
and existing documentation.
• Focuses on understanding how the process currently operates.
9. Process Analysis
• Identifies problems like bottlenecks, waste, and inefficiencies in the "As-Is" process.
• Techniques include root cause analysis and performance measurement.
10. Process Redesign
• Develops the "To-Be" process by eliminating inefficiencies found during analysis.
• Goals include reducing costs, speeding up cycle times, and improving quality.
11. Process Implementation
• The redesigned process is put into action.
• Implementation can involve changes in technology, staffing, or workflows.
12. Process Monitoring and Controlling
• After implementation, performance is tracked to ensure the process achieves its goals.
• Key Performance Indicators (KPIs) are used to measure success.
13. BPMN Advanced Concepts
• Parallel Execution (AND Gateway): Multiple branches can be executed simultaneously.
• Exclusive Gateway (XOR): A decision point where only one path is followed.
• Inclusive Gateway (OR): Allows one or more paths to be followed.
14. Workflow Management Systems (WfMS)
• Early systems used to automate workflows by routing tasks to people.
• Evolved into Business Process Management Systems (BPMS), integrating with ERP
and monitoring tools.
15. Technological Drivers of BPM
• Enterprise Resource Planning (ERP): Systems that centralize data, helping
organizations streamline operations.
• BPMS: Software that helps manage and automate processes from start to finish.

16. Historical Evolution of BPM

• BPR (Business Process Reengineering): Radical, top-down redesign of processes,
introduced in the 1990s.
• BPM: A more incremental, continuous approach to process improvement.
17. Challenges in BPM Implementation
• Resistance to change from employees.
• Difficulty in aligning BPM efforts with business strategy.
• Ensuring continuous monitoring and process improvement over time.

Key Concepts and Examples for Review:

1. Input-Output Model: Understand how inputs are transformed into outputs through
processes.
2. Exclusive vs. Parallel Gateways: Know the difference between decision-making paths
and parallel execution.
3. KPI (Key Performance Indicator): Understand how KPIs are used to track the success
of a process.
 4. "As-Is" vs. "To-Be" Models: Recognize the importance of documenting current
processes before designing improvements.

Business Process Management (BPM)

1. Definition of BPM:
o BPM is a method to improve the efficiency and effectiveness of business
processes through continuous analysis, redesign, and monitoring.
2. Importance of BPM:
o It helps streamline workflows, reduce costs, improve customer satisfaction, and
ensure compliance with regulations.
3. BPM Lifecycle:
o Process Identification: Determine which processes need to be improved.
o Process Discovery: Understand and document the current "As-Is" processes.
o Process Analysis: Identify inefficiencies or issues in the current processes.
o Process Redesign: Create an improved "To-Be" version of the process.
o Process Implementation: Put the redesigned process into action.
o Process Monitoring and Controlling: Measure and track the performance of the
process and make necessary adjustments.
4. Process Ingredients:
o Input: Resources or data required to start the process.
o Output: The end product or result of the process.
o Activities: Tasks or steps performed to complete the process.
o Resources: People, systems, and tools used during the process.
o Events: Triggers or points where something happens in the process (e.g.,
customer order).

Key BPM Concepts

 5. Process Architecture:
o A structured overview of all the business processes within an organization and
their interrelationships.
6. Business Process Modeling Notation (BPMN):
o A standardized visual language used to map business processes.
o Key BPMN symbols:
▪ Events (Circles): Start and end points.
▪ Activities (Rectangles): Tasks or actions.
▪ Gateways (Diamonds): Decision points.
7. As-Is Process:
o The current version of the process, before any improvements or changes are
made.
8. To-Be Process:
o The redesigned or improved version of the process after changes are made.
9. Process Reengineering (BPR):
o A radical approach to process change, focused on dramatic improvements in
performance.
10. Process Redesign Goals:
o Reduce cycle time: Make processes faster.
o Reduce costs: Minimize resource expenditure.
o Improve quality: Ensure higher standards for outcomes.
11. Workflow Management Systems (WfMS):
o Early tools to manage task routing between individuals.
12. Business Process Management Systems (BPMS):
o Comprehensive systems that automate, monitor, and manage business
processes.
13. KPI (Key Performance Indicators):
o Metrics used to measure the success of a process, such as time to complete tasks
or error rates.

The BPM Lifecycle Detailed

14. Process Identification:
 o Identify which processes are most critical for improvement.
15. Process Discovery:
o Gather detailed information about how current processes function through
methods like interviews and workshops.
16. Process Analysis:
o Evaluate the "As-Is" process to identify inefficiencies, bottlenecks, or areas for
improvement.
17. Process Redesign:
o Develop the "To-Be" process, which aims to fix the problems found during analysis.
18. Process Implementation:
o Implement the new design, which could involve technology upgrades, workflow
changes, or training.
19. Process Monitoring and Controlling:
o Continuously track the performance of the new process using KPIs.

Advanced BPMN Concepts

20. Exclusive Gateway (XOR):
o A decision point where only one path can be followed.
21. Parallel Gateway (AND):
o A point where multiple paths can be followed simultaneously.
22. Inclusive Gateway (OR):
o A point where one or more paths can be followed depending on the situation.
23. Start Event:
o The trigger that begins a process (e.g., a customer order).
24. End Event:
o Marks the conclusion of the process.

Process Monitoring Tools

25. Event Logs:
o Capture data about process execution, such as when a task starts and ends.
26. Balanced Scorecard:
 o A tool used to evaluate process performance across multiple dimensions, such as
financial, customer, and operational metrics.
27. Root Cause Analysis:
o A method to identify the underlying reasons for problems within a process.

Key BPM Benefits

28. Improved Efficiency:
o BPM helps streamline processes, reducing wasted time and resources.
29. Better Compliance:
o BPM ensures that processes meet regulatory standards and are transparent.
30. Increased Flexibility:
o BPM allows for easier adjustments to processes when business needs change.
31. Enhanced Customer Satisfaction:
o By improving process quality and speed, BPM leads to better customer
experiences.

Historical Context of BPM

32. Functional Organization:
o Organizations were once structured by function, creating silos that slowed down
cross-functional work.
33. The Rise of Process Thinking:
o Moving from functional silos to an integrated process-focused approach that
considers the entire flow of work.
34. BPM vs. BPR:
o BPM focuses on continuous, incremental improvements, while BPR aimed at
radical, large-scale changes.

Process Modeling
35. Swimlane Diagrams:
o A visual tool that shows who is responsible for each part of a process, divided by
roles or departments.
36. Process Map:
 o A detailed flowchart showing all the steps and decisions in a process.

Challenges in BPM Implementation

37. Resistance to Change:
o Employees may be reluctant to adopt new processes.
38. Alignment with Business Strategy:
o BPM efforts must be aligned with broader business goals to be successful.
39. Continuous Improvement:
o Processes must be continuously monitored and adjusted to maintain performance.
40. Integration with Technology:
o Successful BPM often requires integrating new systems and automating tasks.

Technological Aspects of BPM

41. ERP (Enterprise Resource Planning):
o Systems that integrate data and streamline business operations across an
organization.
42. BPMS (Business Process Management System):
o Software that manages the full BPM lifecycle, automating processes and
monitoring performance.

Types of Business Processes

43. Order-to-Cash:
o A process that starts when a customer places an order and ends when the payment
is received.
44. Procure-to-Pay:
o A process that starts when a business orders goods or services and ends when
the supplier is paid.
45. Issue-to-Resolution:
o A process where customer complaints or issues are handled until resolved.
46. Application-to-Approval:
o A process where an individual or business applies for a permit or approval, and the
decision is granted or denied.
Process Improvement Techniques
47. Value-Added Analysis:
o A method to identify tasks that add value to the customer and eliminate those that
do not.
48. Pareto Analysis:
o Focuses on finding the few causes that are responsible for the majority of process
problems.
49. Cause and Effect Diagram:
o Also known as a fishbone diagram, it identifies the root causes of problems in a
process.
50. Cycle Time:
o The total time it takes for a process to be completed from start to finish.