Introduction to BPM

Sandy Kemsley l www.column2.com l @skemsley

Introduction To BPM

Copyright Kemsley Design Ltd., 2011 1

My History in BPM

l Mid-late 80’s: from satellite imaging to

document imaging to workflow

l Early 90’s: built desktop imaging/workflow

product

l Mid-late 90’s: integrate custom imaging,

workflow, EAI and e-commerce systems

l 2000-1: FileNet BPM evangelist

l 2002-now: BPM and Enterprise 2.0

consulting, blogger and industry analyst

2 Copyright Kemsley Design Ltd., 2011

Agenda

l Defining BPM l The methodology and the technology

l The value of BPM

l Evolution of the BPMS

l Trends in BPM and BPMS

l Implementing a BPMS l Use cases and BPMS characteristics

l Started and growing a BPM initiative

Defining BPM

Part 1

Methodology AND Technology

What is BPM?

BPM is a management practice that provides for

governance of a business’ process environment

toward the goal of improving agility and

operational performance.

BPM is a structured approach employing methods,

policies, metrics, management practices and

software tools to manage and continuously

optimize an organization’s activities and

processes.

Gartner

BPM Defined

l A management discipline for improving

cross-functional business processes

l The methods and technology tools used to

manage and optimize business processes

The Value of BPM

BPM Goals

l Efficiency l Automating steps and handoffs

l Integrating systems and data sources

l Compliance l Achieving and proving standardization

l Agility l Changing processes quickly and easily

l Visibility l See what’s happening in a process

Benefits of BPM

l Process improvement l Cost savings

l Increased revenue

l Improved time-to-market

l Additional business opportunities

l Business agility through process agility

l Self-documenting processes

The Evolution of BPMS

Part 2

History of BPM to mid-2000’s

BPM Suite

“Integration-focused” BPM “Pure-play” BPM

Administrative BPM Collaborative BPM Embedded BPM

Simple workflow (build)

Lightweight EAI (OEM)

Workflow

(person-to-person)

EAI/IBS

(system-to-system)

Business activity monitoring

Process governance

Process simulation

Business rules

Process modeling

From 2005 To Now

l Model-driven development

l Emergence of standards

l Integration of key related technologies

l Social software impacts

l Composite development environment

l Market convergence and consolidation

What’s In Today’s BPMS?

l Process modeling

l Execution engine

l User interfaces,

including social

and collaborative

l Integration

l Business rules

l Monitoring and

governance

l Dashboards,

reporting and

analysis

l Simulation and

optimization

l Application

templates

The BPM Cycle

Discover

Design

Execute

Analyze

Optimize

Importance of Model-Driven BPM

l Reduces need for custom development l Graphical model auto-translates to executing

process: “zero code” BPM

l IT resistance to ceding control

l Enables business-IT collaboration l Business people can create and view process

models

l Business resistance to participation

BPM Standards

Why BPMN?

l OMG-supported standard

l Support by many tool vendors

l Training and certification programs

l Ongoing enhancements in BPMN 2.0: l Advanced event modelling

l Serialization for model interchange

l Execution semantics

BPMN: The Rosetta Stone of

Process

l Enables

communication

between different

audiences: l Business users

l Business analysts

l Technical

implementers

BPMN Is Simple...

l Activity

l Gateway

l Event

l Data

lSource: http://bpmb.de/poster

The BPMN 2.0 Problem

l More than 100 elements

l Unlikely to be fully understood by most

experts, much less users

l Unlikely to be fully supported by most

vendors

l Has led to rejection of BPMN in favor of

“simpler” modeling paradigms

lSource: M. zur Muehlen,

lStevens Institute of

lTechnology

The BPMN 2.0 Solution

l Not everyone needs to learn everything

l Group BPMN elements into sets used by

different personas l Business user

l Business analyst

l Architect/developer

l Each level adds more detail to model

BPMN 2.0 Subclasses

Executable

Analytic

Descriptive

Simple

l Simple: start, end,

task, sequence flow,

AND, OR, subprocess

l Descriptive: add task

types, event types,

swimlanes, message

flows, data objects

l Analytic: full enterprise

architecture modelling

l Executable: complete

set for executable

models Copyright Kemsley Design Ltd., 2011 25

BPM and SOA

BPM And SOA

Process Step 1

Process Step 2

Process Step 3

Process Step 4

Service A

• Call legacy system

Service B

• Call database

Service C

• Call ERP system

Service D

• External web service

Service E

• Internal web service

BPM And SOA Together

l BPM is the “killer app” for SOA; SOA is the

enabling infrastructure for BPM l SOA alone only allows you to design and build

a set of services

l BPM alone would require custom coding for

each system integration

l BPM + SOA orchestrates people and

services into a business process

SOA And Process Modeling

l Discovering services l What services already exist

l Whether existing services meet the needs

l Specifying services l What new services need to be created

l What legacy functions need to be wrapped in

services

Implementing BPM And SOA

l Two basic approaches l Bottom-up — SOA then BPM

l Generate services from existing apps

l Consume services in processes

l Top-down — BPM drives SOA

l Model processes

l Identify and build services required

l In practice, a combination of both

approaches

Issues And Challenges

l Different vendors and products

l SOA and BPM seen as competitive

l Competing standards

l Separate initiatives within end-user

organizations l Developed independently in different

departments

l Different sponsors and champions

Trends in BPM and BPMS

Part 3

Business-Driven Trends in BPM

Business Driver Resulting Change in BPM

Knowledge work is replacing

routine work

More agile to allow flexible

business processes

The value of collaboration in

business is recognized

More social to allow

collaboration within BPM

Need to respond quickly to

changing events

Event-driven intelligent

processes

Business demands greater

control over processes

End-user tools for business-

led design

The Impact of Social Software

What Is Enterprise 2.0?

l Enterprise-facing social software

l Business purpose, not purely social: l Social interaction to strengthen weak ties

l Social production to collaboratively produce

content

l SaaS or on-premise

Drivers For BPM + Enterprise 2.0

l Changing user expectations

l Trends towards greater collaboration

l Lack of agility in many current BPMS

implementations

Social Software Impacts:

The Four C’s

l Collaboration

l Configurability

l Cloud

l Community

Design-Time Collaboration

l Multiple people participate in process

discovery l Internal and external

l Technical and business

l Captures “tribal knowledge”

Runtime Collaboration

l User adds new participants to leverage

knowledge and relationship

l User discussions linked to process

instance l Threaded discussions

l Wiki pages

l Instant messaging

l Tags and categories

Process Event Streams

l Publish and subscribe model for process

events l Changes to models

l Runtime process instances

l Increases visibility

l Increases participation

l Supports wider variety of devices, including

mobile

BPM Configurability

l Composite development environments now

included with many BPMS l UI forms development

l Container-based portal environment

l Ready-made BPM widgets

l Wiring interfaces between widgets

BPM in the Cloud

l Reduce capital costs

l Full capabilities of on-premise version

l Design and run from anywhere

l Key targets: l Business process outsourcers

l Small and medium business

l Business-to-business processes

Online BPM Communities

l External communities of practice l Provide idea exchange, tools

l Augment or replace internal BPM center of

excellence

l May be vendor specific/sponsored

l Internal center of excellence l Discussion forums

l Collaboration linked to process models

l Collaboration linked to process instances

Agile/Dynamic BPM

Work: Taylor vs. Drucker

l Scientific

management

l Standardize

processes to

increase efficiency

l Management by

objectives

l Participants choose

actions to meet goals

The Extremes Of Work

Routine Work

Knowledge Work

From Structured BPM to ACM

Structured BPM Adaptive Case

Management

Repeatability Highly repeatable Unpredictable

Focus Process

transactions

Assist human

knowledge

Goal Efficiency and

automation

Problem resolution

and documentation

Example Back-office financial

transactions

Patient chronic care

management 47 Copyright Kemsley Design Ltd., 2011

Characterizing The Extremes

Routine Work

l Predefined process

l Controlled participation

l Automatable, especially

with service integration,

rules and events

Knowledge Work

l No predefined model

l Collaboration on demand

l Little automation, but

guided by rules and

events

The Structured/Unstructured

Debate

If you can’t model it up front, you just don’t understand

the process

Exceptions are the new normal: every process is different

It’s Not That Simple

Structured Work

l Some process are that

repeatable, especially

automated processes

l Ad hoc process

exceptions already exist,

they’re just off the grid

Unstructured Work

l Some processes have

sufficient variability that

modelling is inefficient

l Instrumentation of

unstructured processes

provides value

A Spectrum Of Structure

Structured

• e.g., automated regulatory process

Structured with ad hoc exceptions

• e.g., financial back-office transactions

Unstructured with pre-defined fragments

• e.g., insurance claims

Unstructured

• e.g., investigations

Dimensions Of Work

l Structured to unstructured

l Controlled to collaborative

l Internal to external

participation

l Not strictly independent

Collaboration

Structure

External

Socialization

What’s Required For Agile BPM?

l Modify structured process models during

runtime

l Manage unstructured/unpredictable and

semi-structured work

l Provide real-time process intelligence to

identify future problems and inform

decision-making

Event-Driven BPM

What Are Events?

l Events are how the “real world” interacts

with processes and systems

l An action outside a process that impacts

that process l Real-time information

l Instructions

l Originating with people, sensors or other

systems

Why Do Events Matter?

l Events make processes more responsive

to internal and external situations

l Allow processes to respond to changing

conditions

l Asynchronous information or control

provided to process

Combining Events and Processes

l Event triggers a process l System or sensor

l User action

l Process creates an event l Process log

l Explicit message or signal

l Event interrupts or diverts process l External error or cancellation

Event-Driven Financial Process

l Scenario: loan origination documents

l Customer documents created or gathered

in front office

l Transactions created by front office

l Back office verifies documents against

transactions

Event-Driven Process

Implementing BPM

Part 4

Types of BPMS

Gartner’s BPM Use Cases

l Implementation of company-specific

process application

l Support for continuous process

improvement

l Business transformation initiative

l Redesign for process-based SOA

Gartner MQ for BPMS, 2009

Gartner Use Case Characteristics

(a.k.a. “Functions”)

l Business perspective on models

l Orchestration of end-to-end processes

l Rules engine

l Pre-built industry-specific content

l Management visibility and control

l Model-driven development

l …and more

Forrester Market Divisions

l Dynamic case management

= document-centric BPM

l Comprehensive integration solutions

= integration-centric BPM

l BPMS

= human-centric BPM

Forrester Wave for BPMS, 2010

Characteristics of

Dynamic Case Management

l Strong enterprise content management

(ECM) requirements l Records management

l Search

l Content analytics

l Human-centric BPM capabilities l Document approval workflow

l Ad hoc BPM centered on case file

Characteristics of Comprehensive

Integration Solutions

l Heavy integration requirements l ESB

l Service registry, repository and governance

l SOA development environments

l Human-centric BPM capabilities l Exception handling and escalation

Characteristics of BPMS

l Web service and other lighter-weight

integration

l Lighter-weight content management

l Focus on process application development l Process modeling and design collaboration

l Process development and composition

l Collaborative work environment

Evaluation Criteria for BPM

BPM Evaluation Criteria

l BPM “style”: integration, human-centric,

document-centric

l Collaborative modeling

l Process design

l Application composition/development

l Business rules

l ESB/SOA

BPM Evaluation Criteria

l Collaborative/dynamic execution

l User-configurable user interface

l Analytics and reporting

l Simulation

l Process optimization

Starting and Growing a BPM

Initiative

Picking The Right First Process

l Small enough to be manageable l Minimum “useful” functionality in 1st iteration

l Minimize customization, breadth before depth

l Big enough to be relevant l Line of business

l Expected return on investment (ROI) l Improved user experience, automation, tracking

l Opportunity for future reusability l Related to future plans

Gaining Business Buy-In

l Collaborative process discovery and

design

l Ongoing involvement during agile

prototyping and implementation

l Control over production runtime

environment

l Methodology and corporate culture

Ensuring User Adoption

l Build a user-centric solution l Different interfaces for different personas

l Configurable by user to their work style

l Provide benefits to individual users l Integration to reduce rekeying information

l Automated work auditing

l Incentives tied to appropriate system usage

Measuring Success

Hard ROI

l Reduced headcount due

to improved efficiency

l Reduced skill levels due

to automation

l Reduced SLA violations

l Reduced time to change

l Reduced monitoring

overhead

Soft ROI

l Improved customer

satisfaction

l Increased revenue based

on increased capacity

l Increased competitive

advantage due to

reduced time to market

l Outsourcing/offshoring

l Customer self-service

Expanding the Initiative

l Find an internal evangelist

l Measure and understand ROI

l Deeper integration l Increase benefits via integration and automation

l Wider adoption across the organization l Generalizing the benefits

l Expand initial processes into adjacent areas

BPM Center Of Excellence

l Vision for enterprise BPM

l Overall BPMS architecture

l Process redesign to expand existing BPM

processes to new participants

l Training and mentoring on tools and

methodology

l Governance

l Repository of reusable artifacts

From BPM Project To Program

1st BPM project

Plan Core team Expand team

BPM project

ResourcesResources

Resources

Summary

l The history and evolution of BPM

l Current trends in BPM

l Types of processes and BPMS

l Starting and growing a BPM initiative

Questions?

Sandy Kemsley

Kemsley Design Ltd.

email: sandy@kemsleydesign.com

blog: www.column2.com

twitter: @skemsley

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