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Business process modeling is important for understanding and developing business domains. There are several purposes for business process modeling including organizational design, process documentation, information systems design, and continuous improvement. The document discusses the history of business process modeling approaches including business process reengineering in the 1990s and modern business process management. It provides an overview of process modeling concepts, notations like BPMN, and relevant tools and standards.

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Business Process Modeling e- Framework Workshop Balbir Barn 12 th February 2007
Agenda Why we construct Business Process Models A historical context Approaches to business process modelling Business Process Modelling Notation Tools and standards summary
Davenport & Short (1990) define business process as "a set of logically related tasks performed to achieve a defined business outcome." A process is "a structured, measured set of activities designed to produce a specified output for a particular customer or market. Business processes as transformations of inputs to outputs Other models available: Language-Action-Perspective (LAP) (Winograd and Flores 1986) Production, coordination tasks using language for communication What is a Business Process? input output
Purposes of Business Process Modeling : Organization Design Process Documentation Process Reorganization Process Monitoring and Controlling Continuous Improvement Quality Management: ISO 9000 Benchmarking: Compare with best practice Knowledge Management:
Purposes of Business Process Modeling : Information Systems Design Selection of ERP software Model based Customizing Software Development Workflow Management Simulation
What to model of a business process Tasks Coordination between tasks synchronization decisions parallel work repetition … Organizational responsibilities Required resources and constraints Information input and output …
Historical Contexts Organizations have been structured around Adam Smith’s idea to break down work into simple discrete tasks performed by workers with basic skills (c.f. Taylorism) Organizing by Function leads to: Loss of flexibility Inability to respond to customers quickly
Business Process Re-Engineering – the first wave Business Process Re-Engineering was seen as an appropriate remedy: 1990: Davenport and Short 1990: Hammer: “Don’t automate, obliterate” Focus on the horizontal view on how things are done and not who decides…. (organizational charts) Characterised by: High failure rates Loss of knowledge Dependent on immature ERP technology
Business Process Change – the 2 nd wave 1994 – 2002: Questions on the validity of the clean slate approach Instead a focus on continuous business improvement and cross organizational processes Made possible by maturing ERP technology and interchange
Business Process Management – the 3 rd wave 2003 - now Organizations need to move away from hard coded processes (Smith and Fingar 2003) Supports both business improvement (as is – to be modelling) and process innovation (the future)
Business Process Management Business Process Management (or BPM ) refers to activities performed by organizations to manage and, if necessary, to improve their business processes Made possible by new tools, technologies and standards Activities include: Process Design Process Enactment Process Monitoring
The BPM Life cycle Technical change is accepted: Human change Assess human capability Human implications of process change Human change management Ideally performed in a single tool or a set of integrated toolsets Model based The model is the process Process is self-documenting Design is self-executing
Business Process Management scope
Process Modelling Concepts (Basic) Organizational Unit Process Activity Role Flow Lane Process Decomposition Artifact
Types of Processes Core Process Satisfy external customers Directly add value to the business They respond to a customer request and generate customer a satisfaction Supporting Process Satisfy internal customers Does not directly add value to the business Process Patterns Case Process – entity passed between roles that perform some update on the entity Event Driven Process – event is raised and a process executes in response to the event Cycle-Driven Process – single process happens periodically – only one such instance State Maintaining Process - maintain the state of one or more objects
Approaches to Process Modelling – Notational Perspective Rational Unified Process (Activity Modelling) Business Process Modelling Notation - BPMN STRIM (Ould 98) (partially LAP) IDEF0 (Functional decomposition) Others: IDEF0; Information Engineering… input output
RUP/Activity Modelling Use Case Models at the Business Process Level Business Actors Business Use Cases
Activity Decision Point Guard condition Parallel Activities Merged Activities Concepts
Using Swim lanes Swim lanes identify the role or organizational unit responsible for the activity Named Vertical columns Derived from Rummler-Brache’s Process modelling methodology
Definition of BPMN
BPMN Notation
Core Set of Notations
Complete Set - Events
Complete Set - Activities
Complete Set - Connections
Complete Set - Pools
Complete Set - Gateways
Normal Flow Example
Process modelling – how? Domain analysis – immersion in the domain Documents Systems – explore use of existing systems Interviews Interviews 3 questions: Who? Who is involved? (The roles) What do they do? (and what order do they do it?) What changes as a result of their actions? Where else do they get help from? More help (and more detailed) is available from: http://www.rational.com/rup
“ To Be” Process Modelling Guidelines Check that all steps are needed Ask why? Review Decision points Are there defined standards? Move decision points earlier Do you need them? Insert time boxes to reduce iterations Cut out the middle man Avoid multiple approvals Redesign data forms Aggregate entry information UI guidelines for forms Better to do Domain Model Review Inter-process interactions Analyse handoffs between roles, departments and individuals Automate repetitive steps Review cycle times Identify activities that take a long time Try and reduce the cycle time for these activities Look for Parallelism Review opportunities for doing work in parallel Consider training opportunities
Some common issues with business process modelling Managing collaborative activities within business process models that are derived from the “transformational” approach Canonical models and variability management Notations are stabilising but methods are lagging Process decomposition Some rules available, methodology dependent Becomes more important when coupled with Business process execution and Web Services Managing requirements from business processes, to use cases to systems Is the use case driven approach still needed? (non question) IT enablement focus – Human Interaction Management tends to be relegated to forms driven approaches
Canonical business process models Well-defined, narrowly scoped business domains can choose to agree a business process definition There will always be a need for variations from the canonical model The issue is how to manage standard models and their variations within a single model The JISC funded COVARM project presented an approach to variability management
Tools, Technologies and Standards Relevant standards BPMN 1.0 Final adopted standard – Feb 2006 UML 2.0 Specification BPEL4WS 1.1 BPEL 2.0 in process BPM Tools Enactment Technology Notations for enactment BPEL Enactment Engines ORACLE BPEL Designer IBM Websphere Intalio Specification Technology Notations for process design and specification BPMN UML 2.0 Activity Diagrams ECD Petrinets Methodology methods, techniques, guidance for process modelling Information Engineering IDEF0 RUP/Activity Modelling Relevant Tools BPMN tools See here for a list http://www.bpmn.org/BPMN_Supporters.htm Human Interaction http://humanedj.com/
Process vs Use Case Activity Diagrams provide more new info than use cases Use Case Narratives are used but provide no new information From: Dobing and Parsons (2006)
Process Modelling and e-Framework Business Process Management Tools Course Validation Main focus of e-Framework
Domain Maps – Functions and Processes Student Administration Student Enrolment Student Complaints Student Course Deferral Student Results Domain Map High Level Functions Processes
Summary Process modelling is important for SOA (and soa?) There is a new wave of technologies - toolsets and notations (model driven) business process management Processes are central to understanding and developing domains but are not sufficiently represented in the e-Framework Process modelling needs to be part of a method framework to ensure that design and development is streamlined E.g. overlap between process modelling and use case modelling
Useful References http://www.omg.org/technology/documents/bms_spec_catalog.htm www.intalio.com www.bpmn.org www.covarm.tvu.ac.uk Workflow coalition http://www-128.ibm.com/developerworks/rational/library/content/RationalEdge/sep03/f_umlbasics_db.pdf Davenport, T.H. & Short, J.E. (1990 Summer). "The New Industrial Engineering: Information Technology and Business Process Redesign," Sloan Management Review , pp. 11-27 Why Current Document Collaboration Sucks by Butler Group, a European IT research and advisory organisation Why Workflow Sucks by Jon Pyke, Chair of the Workflow Management Coalition Beyond BPM: Knowledge Intensive BPM by Jon Pyke, Chair of the Workflow Management Coalition BPM: A SystemicPerspective by Janne J. Korhonen, co-steer of the EDS BPM/Workflow Group presentation a rticle (bptrends.com) All the World is a Project by Peter Fingar, co-author, "Business Process Management - The Third Wave" The Coming IT Flip Flop: And the Emergence of Human Interaction Management Systems by Peter Fingar, co-author, "Business Process Management - The Third Wave" Re-schooling the Corporation for BPM by Ronald Aronica, co-author, "The Death of e - and the Birth of the Real New Economy" Keith Harrison-Broninski. Human Interactions: The Heart and Soul of Business Process Management . ISBN 0-929652-44-4 Peter Fingar et al. Extreme Competition: Innovation And the Great 21st Century Business Reformation . ISBN 0-929652-38-X Business Process Management Group In Search Of BPM Excellence: Straight From The Thought Leaders . ISBN 0-929652-40-1
Les week 7 BPM
Why We Model Business Processes Business Process Reengineering We model the business by defining a “Process Architecture” as a first step to defining an organizational structure aligned to new business processes. (Hammer and Champy 1993) TQM – Incremental Improvement business processes are modelled as diagnostics tool to identify areas for improvement Design of IT Systems Definition of Procedures / Business Rules Quality manuals etc
Exercise 1 – Business Process Re-engineering

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Les week 7 BPM

  • 1. Business Process Modeling e- Framework Workshop Balbir Barn 12 th February 2007
  • 2. Agenda Why we construct Business Process Models A historical context Approaches to business process modelling Business Process Modelling Notation Tools and standards summary
  • 3. Davenport & Short (1990) define business process as "a set of logically related tasks performed to achieve a defined business outcome." A process is "a structured, measured set of activities designed to produce a specified output for a particular customer or market. Business processes as transformations of inputs to outputs Other models available: Language-Action-Perspective (LAP) (Winograd and Flores 1986) Production, coordination tasks using language for communication What is a Business Process? input output
  • 4. Purposes of Business Process Modeling : Organization Design Process Documentation Process Reorganization Process Monitoring and Controlling Continuous Improvement Quality Management: ISO 9000 Benchmarking: Compare with best practice Knowledge Management:
  • 5. Purposes of Business Process Modeling : Information Systems Design Selection of ERP software Model based Customizing Software Development Workflow Management Simulation
  • 6. What to model of a business process Tasks Coordination between tasks synchronization decisions parallel work repetition … Organizational responsibilities Required resources and constraints Information input and output …
  • 7. Historical Contexts Organizations have been structured around Adam Smith’s idea to break down work into simple discrete tasks performed by workers with basic skills (c.f. Taylorism) Organizing by Function leads to: Loss of flexibility Inability to respond to customers quickly
  • 8. Business Process Re-Engineering – the first wave Business Process Re-Engineering was seen as an appropriate remedy: 1990: Davenport and Short 1990: Hammer: “Don’t automate, obliterate” Focus on the horizontal view on how things are done and not who decides…. (organizational charts) Characterised by: High failure rates Loss of knowledge Dependent on immature ERP technology
  • 9. Business Process Change – the 2 nd wave 1994 – 2002: Questions on the validity of the clean slate approach Instead a focus on continuous business improvement and cross organizational processes Made possible by maturing ERP technology and interchange
  • 10. Business Process Management – the 3 rd wave 2003 - now Organizations need to move away from hard coded processes (Smith and Fingar 2003) Supports both business improvement (as is – to be modelling) and process innovation (the future)
  • 11. Business Process Management Business Process Management (or BPM ) refers to activities performed by organizations to manage and, if necessary, to improve their business processes Made possible by new tools, technologies and standards Activities include: Process Design Process Enactment Process Monitoring
  • 12. The BPM Life cycle Technical change is accepted: Human change Assess human capability Human implications of process change Human change management Ideally performed in a single tool or a set of integrated toolsets Model based The model is the process Process is self-documenting Design is self-executing
  • 14. Process Modelling Concepts (Basic) Organizational Unit Process Activity Role Flow Lane Process Decomposition Artifact
  • 15. Types of Processes Core Process Satisfy external customers Directly add value to the business They respond to a customer request and generate customer a satisfaction Supporting Process Satisfy internal customers Does not directly add value to the business Process Patterns Case Process – entity passed between roles that perform some update on the entity Event Driven Process – event is raised and a process executes in response to the event Cycle-Driven Process – single process happens periodically – only one such instance State Maintaining Process - maintain the state of one or more objects
  • 16. Approaches to Process Modelling – Notational Perspective Rational Unified Process (Activity Modelling) Business Process Modelling Notation - BPMN STRIM (Ould 98) (partially LAP) IDEF0 (Functional decomposition) Others: IDEF0; Information Engineering… input output
  • 17. RUP/Activity Modelling Use Case Models at the Business Process Level Business Actors Business Use Cases
  • 18. Activity Decision Point Guard condition Parallel Activities Merged Activities Concepts
  • 19. Using Swim lanes Swim lanes identify the role or organizational unit responsible for the activity Named Vertical columns Derived from Rummler-Brache’s Process modelling methodology
  • 22. Core Set of Notations
  • 23. Complete Set - Events
  • 24. Complete Set - Activities
  • 25. Complete Set - Connections
  • 26. Complete Set - Pools
  • 27. Complete Set - Gateways
  • 29. Process modelling – how? Domain analysis – immersion in the domain Documents Systems – explore use of existing systems Interviews Interviews 3 questions: Who? Who is involved? (The roles) What do they do? (and what order do they do it?) What changes as a result of their actions? Where else do they get help from? More help (and more detailed) is available from: http://www.rational.com/rup
  • 30. “ To Be” Process Modelling Guidelines Check that all steps are needed Ask why? Review Decision points Are there defined standards? Move decision points earlier Do you need them? Insert time boxes to reduce iterations Cut out the middle man Avoid multiple approvals Redesign data forms Aggregate entry information UI guidelines for forms Better to do Domain Model Review Inter-process interactions Analyse handoffs between roles, departments and individuals Automate repetitive steps Review cycle times Identify activities that take a long time Try and reduce the cycle time for these activities Look for Parallelism Review opportunities for doing work in parallel Consider training opportunities
  • 31. Some common issues with business process modelling Managing collaborative activities within business process models that are derived from the “transformational” approach Canonical models and variability management Notations are stabilising but methods are lagging Process decomposition Some rules available, methodology dependent Becomes more important when coupled with Business process execution and Web Services Managing requirements from business processes, to use cases to systems Is the use case driven approach still needed? (non question) IT enablement focus – Human Interaction Management tends to be relegated to forms driven approaches
  • 32. Canonical business process models Well-defined, narrowly scoped business domains can choose to agree a business process definition There will always be a need for variations from the canonical model The issue is how to manage standard models and their variations within a single model The JISC funded COVARM project presented an approach to variability management
  • 33. Tools, Technologies and Standards Relevant standards BPMN 1.0 Final adopted standard – Feb 2006 UML 2.0 Specification BPEL4WS 1.1 BPEL 2.0 in process BPM Tools Enactment Technology Notations for enactment BPEL Enactment Engines ORACLE BPEL Designer IBM Websphere Intalio Specification Technology Notations for process design and specification BPMN UML 2.0 Activity Diagrams ECD Petrinets Methodology methods, techniques, guidance for process modelling Information Engineering IDEF0 RUP/Activity Modelling Relevant Tools BPMN tools See here for a list http://www.bpmn.org/BPMN_Supporters.htm Human Interaction http://humanedj.com/
  • 34. Process vs Use Case Activity Diagrams provide more new info than use cases Use Case Narratives are used but provide no new information From: Dobing and Parsons (2006)
  • 35. Process Modelling and e-Framework Business Process Management Tools Course Validation Main focus of e-Framework
  • 36. Domain Maps – Functions and Processes Student Administration Student Enrolment Student Complaints Student Course Deferral Student Results Domain Map High Level Functions Processes
  • 37. Summary Process modelling is important for SOA (and soa?) There is a new wave of technologies - toolsets and notations (model driven) business process management Processes are central to understanding and developing domains but are not sufficiently represented in the e-Framework Process modelling needs to be part of a method framework to ensure that design and development is streamlined E.g. overlap between process modelling and use case modelling
  • 38. Useful References http://www.omg.org/technology/documents/bms_spec_catalog.htm www.intalio.com www.bpmn.org www.covarm.tvu.ac.uk Workflow coalition http://www-128.ibm.com/developerworks/rational/library/content/RationalEdge/sep03/f_umlbasics_db.pdf Davenport, T.H. & Short, J.E. (1990 Summer). "The New Industrial Engineering: Information Technology and Business Process Redesign," Sloan Management Review , pp. 11-27 Why Current Document Collaboration Sucks by Butler Group, a European IT research and advisory organisation Why Workflow Sucks by Jon Pyke, Chair of the Workflow Management Coalition Beyond BPM: Knowledge Intensive BPM by Jon Pyke, Chair of the Workflow Management Coalition BPM: A SystemicPerspective by Janne J. Korhonen, co-steer of the EDS BPM/Workflow Group presentation a rticle (bptrends.com) All the World is a Project by Peter Fingar, co-author, "Business Process Management - The Third Wave" The Coming IT Flip Flop: And the Emergence of Human Interaction Management Systems by Peter Fingar, co-author, "Business Process Management - The Third Wave" Re-schooling the Corporation for BPM by Ronald Aronica, co-author, "The Death of e - and the Birth of the Real New Economy" Keith Harrison-Broninski. Human Interactions: The Heart and Soul of Business Process Management . ISBN 0-929652-44-4 Peter Fingar et al. Extreme Competition: Innovation And the Great 21st Century Business Reformation . ISBN 0-929652-38-X Business Process Management Group In Search Of BPM Excellence: Straight From The Thought Leaders . ISBN 0-929652-40-1
  • 40. Why We Model Business Processes Business Process Reengineering We model the business by defining a “Process Architecture” as a first step to defining an organizational structure aligned to new business processes. (Hammer and Champy 1993) TQM – Incremental Improvement business processes are modelled as diagnostics tool to identify areas for improvement Design of IT Systems Definition of Procedures / Business Rules Quality manuals etc
  • 41. Exercise 1 – Business Process Re-engineering