Business Process Modeling

Copyright Kemsley Design Ltd., 2007

Sandy KemsleyKemsley Design Ltd.www.column2.com

Agenda

What’s in your processes? Process modeling notation/standards Modeling for ROI Changing processes = changing job

What’s in your processes?

Kicking it off

Human intervention Scanned document External event Invoked as web service

Types of steps/tasks

Human-facing:Transactional heads-downOccasional participantCollaboration

System:Web service orchestrationLegacy application integrationContent management integration

Other considerations

External participants Process monitoring Collecting analytics data Frequency of process/rule/staff

changes

A short segue on BPM/SOA

BPM:Management practiceTools for automating processes

SOA:Architectural philosophyDesign standards-based services to

access system functionality

BPM and SOA

Service A Service B Service C

Service D Service E

LegacySystem

DatabaseERP

System

ProcessStep 1

ProcessStep 2

ProcessStep 3

ProcessStep 4

BPM and SOA together

BPM is the “killer app” for SOA; SOA is the enabling infrastructure for BPMSOA alone only allows you to design

and build a set of servicesBPM alone would require custom

coding for each system integration BPM + SOA orchestrates people and

services into a business process

SOA in process modeling

Discovering servicesWhat services already existWhether existing services meet the

needs Specifying services

What new services need to be createdWhat legacy functions need to be

wrapped in services

Simulation and optimization

Identify key performance indicators Estimate parameters:

ArrivalsTime per stepParticipantsCost per step

Run and compare scenarios

Simulation example

Process modeling standards

Graphical notation standard

BPMN (Business Process Modeling Notation) = diagramming standard for drawing business processes

Method of communicating processes:Understandable by business users

and unambiguousReduces translation errors between

business and IT Easy transition between tools

BPMN flow objects

Activity

Gateway

BPMN connecting objects

Sequence flow

Message flow

Association

BPMN swimlanes

BPMN artifacts

Data object

Annotation

BPMN example: exception handling

BPMN example: transaction

BPMN example: funds transfer

Modeling for ROI

Areas of process innovation

Automational Informational Sequential Tracking Analytical

Geographical Integrative Intellectual Disintermediating

Source: Process Innovation, Thomas H. Davenport, 1992

Improve efficiencies

Automate manual work steps Directly integrate data between

systems Provide process monitoring and

control Automate process statistics gathering

and analysis

Cut out the middle man

Provide customer self-service to initiate processes

Provide process visibility to customer

Location, location, location

Share redundant processes between business units

Identify steps that can be completed in isolation

Automate escalation and handoffs Allow remote work

ROI: reduce costs

Reduce manual tasks Reduce error rates Allow customer self-service Reduce compliance costs Reduce time to implement changes Reduce functional redundancy Allow outsourcing

ROI: increase competitive advantage

Reduce time to market Reduce end-to-end cycle time Improve customer service Increase capacity Improve decision-making

Calculating ROI

Baseline the “as-is” process Model and simulate “to-be” process Select relevant ROI metrics Select ROI calculation method Calculate best and worst case

scenarios

Common ROI pitfalls

Increased capacity does not guarantee increased revenue

Cost reduction may require FTE reductions

Providing self-service does not guarantee that customers will use it

Remote work and outsourcing can have hidden costs

Classify BPM ROI potential

Increased agility to business changes Optimized operational efficiency Process standards compliance Shortened process cycle times Better information for decision-making Reduced complexity of integrating

people, processes and existing systems

Changing job roles

BPM supports changing roles Support for change management initiatives

Model the new organization Simulate and optimize changes Measure results

Enabling more rapid changes Overarching process orchestration and

governance Real-time view of organizational processes Agile, business-driven changes

BPM causes role changes

Business function concerns and benefits: Workers

• Concerns: job loss• Benefits: better job and training

Supervisors• Concerns: loss of control• Benefits: improved team and work management

Managers• Concerns: failure to achieve ROI• Benefits: improved visibility and performance

Overcoming change resistance

Communication of plans and impacts Involvement in process modeling Demonstration of new technologies Smaller “quick hit” before tackling

radical reengineering

Summary

Dissecting your process BPMN ROI BPM and role changes

Questions?

Sandy KemsleyKemsley Design Ltd.www.column2.com

Business Process Modeling

Business

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