How to go about BPM?

1
The BPM lifecycle

Process
identification

Process
Process architecture
architecture

Conformance
Conformance and
and Process As-is
As-is process
process
performance
performance insights
insights discovery model
model

Process
monitoring and Process
controlling analysis

Executable
Executable Insights
Insights on
on
process
process weaknesses
weaknesses and
and
model
model their
their impact
impact

Process Process
implementation To-be
To-be process
process redesign
model
model
Process identification steps

1. Designation step
• Enumerate main processes Process
Architecture
• Determine process scope

2. Prioritization step (aka Process selection)

Prioritize processes based on: Prioritized
• Importance Process
• Health Portfolio

• Feasibility

After Davenport (1993)

Example: process architecture
Wholesaler

Strategic
Management

Logistics Suppliers
Management Management

Warehouse Demand
Management Management
Management processes

Direct
Sales Distribution
procurement

Marketing Service
Core processes

Indirect
Finance IT HR
procurement
Support processes
Prioritization (aka Process Selection)

1. Importance
Which processes have greatest impact on the organization‘s strategic objectives?

2. Health (or Dysfunction)

Which processes are in deepest trouble?

3. Feasibility
Which processes are most susceptible to successful process management?

Prioritized process portfolio

Hammer, Champy (1993)

The BPM lifecycle

Process
identification

Process
Process architecture
architecture

Conformance
Conformance and
and Process As-is
As-is process
process
performance insights
performance insights discovery model
model

Process
monitoring and Process
controlling analysis

Executable
Executable Insights
Insights on
on
process
process weaknesses
weaknesses and
and
model
model their
their impact
impact

Process Process
implementation To-be
To-be process
process redesign
model
model
Business process model
Invoice handling

Finance ERP Invoice Report Invoice

Department
Enter Check
no
Invoice Invoice Post Invoice
mismatches
Invoice Details Mismatches
Invoice
received posted

Invoice DB Invoice
Senior Finance Officer
mismatch Block
exists Invoice
Invoice
blocked
The BPM lifecycle

Process
identification

Process
Process architecture
architecture

Conformance
Conformance and
and Process As-is
As-is process
process
performance insights
performance insights discovery model
model

Process
monitoring and Process
controlling analysis

Executable
Executable Insights
Insights on
on
process
process weaknesses
weaknesses and
and
model
model their
their impact
impact

Process Process
implementation To-be
To-be process
process redesign
model
model
Qualitative process analysis
Root-cause analysis example
Quantitative process analysis
Process simulation
The BPM lifecycle

Process
identification

Process
Process architecture
architecture

Conformance
Conformance and
and Process As-is
As-is process
process
performance insights
performance insights discovery model
model

Process
monitoring and Process
controlling analysis

Executable
Executable Insights
Insights on
on
process
process weaknesses
weaknesses and
and
model
model their
their impact
impact

Process Process
implementation To-be
To-be process
process redesign
model
model
Process redesign

AS-IS process model TO-BE process model

Cost

Time
Flexibility

Quality
The Process Redesign Orbit
The Process Redesign Orbit

These approaches are not mutually exclusive, and organizations

may choose to combine elements from each approach based on
their specific goals, challenges, and organizational culture. The
key is to select the approach or combination of approaches that
best aligns with the organization's objectives and resources while
driving sustainable process improvement.
The Process Redesign Orbit

• The creative approach to process redesign involves thinking

outside the box and coming up with innovative ideas to improve
processes.
• It often involves brainstorming sessions, idea generation, and
experimentation with new methods or technologies.
• The focus is on generating novel solutions that can lead to
significant improvements in efficiency, effectiveness, or customer
satisfaction.
The Process Redesign Orbit

• The transactional approach focuses on streamlining and

optimizing existing processes to make them more efficient and
cost-effective.
• It involves analyzing each step of the process, identifying
bottlenecks or inefficiencies, and implementing changes to
simplify or automate tasks.
• The goal is to make incremental improvements to the process
by eliminating waste, reducing cycle times, and improving
resource utilization.
The Process Redesign Orbit

• The analytical approach emphasizes data-driven decision-

making and relies on quantitative analysis to identify process
improvement opportunities.
• It involves collecting and analyzing data related to process
performance, such as throughput, error rates, and customer
feedback.
• By leveraging analytics tools and techniques, organizations can
gain insights into process performance and identify areas for
optimization or refinement.
The Process Redesign Orbit

• The transformational approach involves making fundamental

changes to the organization's processes, systems, and culture.
• It often requires a shift in mindset and a willingness to challenge
existing norms and practices.
• Transformational process redesign initiatives may involve
reengineering entire processes, adopting new technologies, or
restructuring the organization to better align with strategic
objectives.
The BPM lifecycle

Process
identification

Process
Process architecture
architecture

Conformance
Conformance and
and Process As-is
As-is process
process
performance
performance insights
insights discovery model
model

Process
monitoring and Process
controlling analysis

Executable
Executable Insights
Insights on
on
process
process weaknesses
weaknesses and
and
model
model their impact
their impact

Process Process
implementation To-be
To-be process
process redesign
model
model
Process implementation
Process
Process
change
automation
management

Executable
Job redesign
process design

IT development
Training
& configuration

Performance
Testing management
plan

... ….
The BPM lifecycle

Process
identification

Process
Process architecture
architecture

Conformance
Conformance and
and Process As-is
As-is process
process
performance insights
performance insights discovery model
model

Process
monitoring and Process
controlling analysis

Executable
Executable Insights
Insights on
on
process
process weaknesses
weaknesses and
and
model
model their
their impact
impact

Process Process
implementation To-be
To-be process
process redesign
model
model
Process monitoring
Dashboards, alerts & reports

Event Model-based analytics (p. mining)

stream
DB logs
Roles in the BPM lifecycle

Process
identification
BPM group
Process
Process architecture
architecture

Conformance
Conformance and
and Process As-is
As-is process
process
performance
performance insights
insights discovery model
model

System
admin/operati Process Process
monitoring and Process
ons team owner Analyst
controlling analysis

Executable
Executable Process Insights
Insights on
on
process
process participants weaknesses
weaknesses and
and
model
model their
their impact
impact

Process Process
Developer
implementation To-be
To-be process
process redesign
model
model
Further Readings & Resources

• Fundamentals of Business Process Management

• Chapter 1 – Introduction
• Short quiz
• http://www.proprofs.com/quiz-school/story.php?title=introduction-to-bpm