UGENT BUSINESS INFORMATICS

BUSINESS PROCESS
MANAGEMENT
Introduction
OUTLINE
̶ Course Info
̶ Introduction Business Process Management (BPM)
̶ Enterprise Applications
̶ BPM in Practice
̶ BPM Research
COURSE INFO
Ufora > Course Info > Practical Information
̶ Lectures with some guest lectures as 2nd part
̶ ‘Fundamentals of Business Process Management’
̶ Group projects
̶ BPM project
̶ DXC Digital Masterclass
̶ BPM research analysis
COURSE INFO
Ufora > Course Info > Practical Information
̶ Evaluation
̶ 50% group project (+peer assessment)
̶ 50% written exam
‒ MC & open questions
‒ Digital submission
OUTLINE
̶ Introduction BPM
̶ Processes Everywhere
̶ Ingredients of Business Processes
̶ Definition
̶ Related disciplines
̶ Origin and History BPM
̶ BPM lifecycle
̶ Stakeholders in the BPM lifecycle
̶ Enterprise Applications
̶ BPM in Practice
̶ BPM Research
̶ The future of BPM
PROCESSES EVERYWHERE
̶ Order-to-cash
A consumer who wants to buy a certain product, he
orders it & it’s paid for —> the end of the process. (All the
steps in between: it can be delivered, bought in a store,
̶ Quote-to-order checking if it is in stock)
Step that typically precedes in order-to-cash: someone
̶ Procure-to-pay asks if I am interested in this product or service and we
need to check whether or not it fits our purpose. We want

̶ Issue-to-resolution
to actually pay that amount for it, so give me a quote so
that it acutally goes to the ordering step & then start the
order-to-cash.
̶ Application-to-approval The business needs a certain service or a product, and
they want to buy that product. So these are the steps in
between there.

As restaurant, you need a license to actually open a food-

related business here in Ghent. You have to apply for a
Customer service departments: there are problems with a license with the city government. This can be denied or
certain product that was sold. How do we get to a granted: this is the last part of the process.
resolution such that our customer will actually accept.
EXAMPLE BOOK Based that the company needs a certain service
that is willing to pay for it. (Renting the equipment)
=> PROCURE-TO-PAY PROCESSES

̶ Case description page 3 – Chapter 1

̶ Questions Events: things that atomically happen, (that don’t have a
duration). Something tha pops up during the process. At
̶ Type of process? least from the point of view from the processowner: so the
person within the company. It can even be ‘the machine

̶ Activities of the process? can’t be delivered because it is snowing outside’. = event

̶ Events of the process? The clerc can decide which equipment he

wants to capple: which supplier you want to
̶ Decision points of the process? capple with a request. Also approval steps.
= it changes how the process runs, changes

̶ Participants of the process?

how the path runs towards the outcome.

Site engineer, the clerc, the work engineer, the supplier

 INGREDIENTS OF BUSINESS PROCESS
Tasks & steps you need to do to execute the business process. (Business process
consists of at least 1 activity: otherwise your aren’t really doing anything. ) Points at which the
Activity = lower-level things = tasks: vb pick up this & put it there, sorting can also be execution of the
grouped into bigger chunks = activity where you still can zoom in to see the lower- process can change.
level steps. Every task separately can be grouped into 1 big activity. (cancel the process,
alternative path..) —
The one
> change what
who
happens & still try to
consumes
get to the outcome
the
that the process
outcome =
wants to deliver on
customer
different kind of
ways.
negative
outcome =
avoid this!
but must be
modelled
because it
can happen Points at which the execution of the
process can change.(cancel the
process, alternative path..) —> change
what happens & still try to get to the
outcome that the process wants to
deliver on different kind of ways.
DEFINITION BUSINESS PROCESS MANAGEMENT

BPM
=
A body of methods, techniques and tools
to discover, analyse, redesign, execute and monitor
business processes
Relationship between BPM and the following:
1. Total Quality Management (TQM)
Focus: Quality improvement.
Relation to BPM: Both aim to enhance product/service quality, but TQM
focuses more on quality control, while BPM optimizes entire processes.
2. Operations Management
Focus: Efficiency of physical and technical operations.
Relation to BPM: Both target operational efficiency; Operations
Management is broader, including resource and supply chain management, 9
whereas BPM specifically improves workflows.
RELATED DISCIPLINES
̶ Total Quality Management
̶ Continuously improving and sustaining the quality of products
and services The difference isn’t really there, it is more that total quality
management has evolved Into a form of business process
̶ Different from BPM ? management where TQM is mostly focused on the products & the
̶ Operations Management products & services towards your customer.
services itself while BPM focusess on the processes of getting those

̶ Managing the physical and technical functions of a firm of an

organisation
̶ Probability theory, queuing theory, decision analysis,
mathematical modelling How to efficiently Get the processes running. How to
̶ Different from BPM ? support current processes. (Focus on the process as
is)

BPM doesn’t say you need to keep the process, you can as well change it. The
process can be dynamic based on how it needs to change to get to the best
outcomes.
RELATED DISCIPLINES
̶ Lean
̶ Origin: engineering philosophy of Toyota
̶ Elimination of waste, i.e. activities that do not add value to
the customer
Something (LEAN) that is absorbed by BPM, you have a redesign step
̶ Different from BPM ? where you can apply something like lean in a business process
management environment.
̶ Six Sigma
̶ Origin: engineering and production practices of Motorola
̶ Focus: minimization of defects
Relationship BPM with:
3. Lean
Focus: Elimination of waste to add value.
Relation to BPM: Both streamline operations to increase efficiency; Lean
specifically targets waste reduction, BPM involves process redesign.
4. Six Sigma
Prevent certain quality issues before they happen, so Focus: Minimization of defects.
Relation to BPM: Both reduce process errors and enhance efficiency; Six
that you don’t need the whole department to handle Sigma focuses on quality control using statistical methods, BPM uses
problems later. broader process management strategies.
 THE ROLE OF IT IN BPM
“The first rule of any technology used in a business is that automation
applied to an efficient operation will magnify the efficiency.
The second is that automation applied to an inefficient operation will
magnify the inefficiency.” – Bill Gates

Yields
Information Business
Technology Value
Takeaway: The
effectiveness of IT in BPM
hinges on the pre-existing IT is an enabler for process
efficiency of business change, for which process
processes; technology change yields value for the
enhances what is already business. This does not mean
working well but on the Enables Process Yields that IT directly yields value to a
downside also amplifies business, it does it indirectly
existing problems.
Change
through the mean of changes in
processes: Process change is
effectively implemented through
IT to create business value

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ORIGINS AND HISTORY OF BPM
Includes usually a certain hierarchy.

HR departments
Procurement department
The Functional Organisation Cleaning department…

̶ Taylor FW (1911) Principles of Scientific

Management
̶ Emergence of Managers and Functional
Organisation —> Extreme form of specialization: people need to exactly know
only their single part of the process. There is no direct employees
=> at the eind of the 1980s: the realization that know the exact process. They have to do their exact part of
came that these functional units might the process & hand in to the next person.
have been getting a little bit out of hand. => you also need someone to coordinate those people. (The birds
People were putting everything in a box. of managers) —> someone checks whether everything happens,
Functional units were living next to each whether the whole chain is still moving; those people don’t need to
other. => this was creating inefficiencies. be experts in any o those tasks themselves. (They are completely
(Not good for the competitiveness) separate) = you need an overseer (coordinator)
ORIGINS AND HISTORY OF BPM

The Birth of Process Thinking

̶ Case study by Michael Hammer
̶ Ford’s acquisition of Mazda
̶ Tom Davenport and James Short
—> how ford uses it whole supply chain to get to making car compared with Mazda.
Mazda: only 5 people in a certain unit
Ford: 500 people in that same unit

Why was this? Mazda had a different kind of way of looking at the process.
Certain efficiency of what is needed & what not. Ford thought that they might overuse
their functional unit. = START OF BUSINESS REDESIGN AREA.
 PURCHASING PROCESS AT FORD BEFORE REDESIGN
Lack of Integration: Each department operates in silos, with information not being shared
efficiently, leading to a lack of process visibility and coordination.

Mazda streamlined their

documentation process
by only accepting items
that matched the
purchase order in their
warehouse department.
They consolidated the
purchase order and
invoice into a single
document, eliminating the
need for separate checks
and reducing errors. This
Current process: requires
efficiency allowed them to the purchasing order and
handle operations with shipment notice to be
just five people, as the communicated across
multiple departments
verification of multiple without a centralized
documents was no longer Complex and inefficient system, leading to potential
delays and 15
necessary. miscommunication.
 PURCHASING PROCESS AT FORD AFTER REDESIGN
Streamlined
Communication: more
direct information flow
(the purchasing order,
goods and shipment
notice and payment all
being streamlined
through the purchasing
database).

New central purchasing

database that connects the
departments —> reduction of
paperwork and need for
multiple copies of orders and
notices.

Reduced Personnel: The Accounts Payable

Department now involves 120 people instead
of 500, indicating a more efficient process.

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ORIGINS AND HISTORY OF BPM
̶ The Rise and Fall of BPR
̶ Beginning 90’s Rise of Business Process Reengineering
‒ A lot of books, papers appeared about BPR
‒ Companies all over the world assembled BPR teams
̶ Late 90’s fall of BPR
‒ Concept misuse BPR (Business Process Reengineering) is about radically redesigning
business processes for big improvements, often implemented once and
dramatically. BPM is an ongoing approach to incrementally improve and

‒ Over-radicalism manage business processes. BPR had a rise and fall due to its drastic
methods, while BPM focuses on continuous, sustainable process
optimization.

‒ Support immaturity
ORIGINS AND HISTORY OF BPM
̶ Emergence BPM
̶ Empirical studies investigating a large sample of organisations found
that process-oriented organisations showed better overall
performance
̶ Information Technology
‒ Business Applications have changed
‒ Process-oriented, ERP, WFMS
‒ Application development has changed
‒ Case Tools, Model Driven Development
‒ Enterprise application integration has changed
‒ SOA, Web services
BPM LIFECYCLE
BPM LIFECYCLE
̶ Process Identification
̶ Business Problem is identified
̶ Processes relevant to the problem are identified,
delimited and related to each other
̶ (Performance Measure Identification)
̶ Output: process architecture
̶ Process Discovery (as-is process modelling)
̶ Current state of relevant process is documented
̶ Output: As-IS process models
It doesn’t look at changes, doesn’t look at how effiently they work, this
is purely getting a model of what are the steps currently being done to
get to a certain outcome. (=the current state of how the organization
does things.)
AS-IS PROCESS MODEL BUILDIT
BPM LIFECYCLE
̶ Process Analysis How well is this going? What is the efficiency?
̶ (Performance Measures identification)
̶ Identify and document issues associated to as-is processes
̶ Quantify issues using Performance Measure
̶ Output: analysis report and prioritized list of issues
̶ Process Redesign Changing the process in order to improve your model
̶ Based on analysis propose a redesigned version of the
process
̶ Output: To-Be process models
Models that are not yet applied but that could have better effects.
BPM LIFECYCLE
̶ Process Implementation
̶ Organisational change management
‒ Explain changes to process participants
‒ Training
̶ Process automation
‒ System must support process participants in the performance of
the tasks of the process
‒ Several ways to implement such a system  Selection
implementation platform
‒ Integration with other systems
̶ Output: To-Be becomes As-Is process models irl
BPM LIFECYCLE
̶ Process Monitoring and Controlling
̶ Business process is running
̶ Relevant data is collected and analysed in order to
determine how well the process performs with respect to
‒ Performance measures
‒ Performance objectives
̶ Output: verification of performance, while bottlenecks,
recurrent errors or deviations are identified
 Cycle is repeated continuously
STAKEHOLDERS IN THE BPM LIFECYCLE
̶ Management Team: CEO, CIO, COO (CPO), CFO, HR
director
̶ Process Owner
̶ Process Participants
̶ Process Analysts
̶ System engineers
̶ (The BPM group)
OUTLINE
̶ Introduction BPM
̶ Enterprise Applications and their integration
̶ Enterprise applications
̶ Evolution EA and their Integration
̶ BPM in practice
̶ BPM Research
ENTERPRISE APPLICATIONS
Enterprise applications
= the display, manipulation, and storage of large amounts of
often complex data and the support or automation of business
processes with that data

Different types:
̶ ERP
̶ CRM
̶ SCM

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ENTERPRISE APPLICATIONS Show all the information for everyone involved

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ENTERPRISE APPLICATIONS

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ENTERPRISE APPLICATIONS

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ENTERPRISE APPLICATIONS

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ENTERPRISE APPLICATIONS: EHR

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EVOLUTION EA AND THEIR INTEGRATION
Separate interface

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EVOLUTION EA AND THEIR INTEGRATION
Teacher info

You will both have data about the same people!

There can be differences etc —> how to integrate all
of this?
EVOLUTION EA AND THEIR INTEGRATION

Enterprise Resource Planning

(ERP):
ERP systems integrate and
manage core business
processes such as finance,
human resources, supply chain,
manufacturing, procurement, and
more.
They provide a centralized
database that enables
departments to share information
and collaborate more efficiently.
ERP systems streamline
processes, improve data
accuracy, and provide real-time
insights into business operations.
Examples of ERP systems
include SAP, Oracle ERP Cloud,
Microsoft Dynamics 365, and
NetSuite.
EVOLUTION EA AND THEIR INTEGRATION

But still within that system we had functional

units that still worked separately. Each of them
still had their own database. Even though it was
about the same things, they still had separate
data.
EVOLUTION EA AND THEIR INTEGRATION

Evolved into a data warehouse

where a whole organization its data
is stored & managed separately.
1 system that stores all the
organizational data.1 place, 1
access point.
EVOLUTION EA AND THEIR INTEGRATION
EVOLUTION EA AND THEIR INTEGRATION
This means that you can change your
CRM system enterprise architecture from being all
SCM system separate silos to a spoke & weal
ERP system representation where there are adaptors to
every part.

Centralized Enterprise
Application Integration
Middleware (Hub)
Vb if a want to change my data warehouse, it
doesn’t really need to change anything else in the
Inventory application. It just needs to change my data
Data Warehouse
Management warehouse & the adaptor will make sure that the
Human Resources requests are still being processed in the same
Application way. The other systems don’t notice the
difference.
EVOLUTION EA AND THEIR INTEGRATION

These systems also process

aware, meaning that they
understand what is going on.
Meaning that if these step if
being done, the next step is in
this machine so i will notify: vb
send a request from the ERP
to the supply chain
management system so they
can interact within each other.
EVOLUTION EA AND THEIR INTEGRATION
OUTLINE FOUNDATIONS
̶ Introduction BPM
̶ Enterprise Applications and their integration
̶ BPM in practice
̶ BPM Research
BPM RESEARCH
̶ In the past:
̶ Hajo A. Reijers (2021) Business Process Management: The
evolution of a discipline, Computers in Industry, 103404
̶ In the future:
̶ Jesus, L., Rosemann,M., (2017) The Future BPM: Seven
Opportunities to Become the Butcher and not the Turkey,
BpTrends
̶ Jan Mendling, Brian T. Pentland & Jan Recker (2020) Building a
complementary agenda for business process management and
digital innovation, European Journal of Information Systems, 29:3

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THE FUTURE OF BPM
BPM in the Industrial Age BPM in the Digital Age
Business Processes Customer Processes What does customer want to buy?
Change process based on that
Mass produced process Mass individual process
Single resourcing (man or machine) Hybrid resourcing ChatGPT becoming co-pilot

Problem-driven BPM Opportunity-driven BPM

Process Time Process latency
Corporate-Minded BPM professions Intrapreneurial process analysts
Profit-driven BPM Purpose-driven BPM

Not only looking at

Looking now not only at business itself, we
reducing cost, we also
look at customers actions & businesses
look at societal impact
response time
etc
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