lOMoAR cPSD| 2744568
Summary 1BM05
Business proces management (Technische Universiteit Eindhoven)
, lOMoAR cPSD| 2744568
Lecture 1
BPM is a science and an art.
Definitions BPM:
- A systematic, structured approach to analyze, improve, control, and manage
processes with the aim of improving the quality of products and services (Elzinga,
Horak, Lee, and Bruner (1995)).
- A customer-focused approach to the systematic management, measurement and
improvement of all company processes through cross-functional teamwork and
employee empowerment. (Lee and Dale (1998)).
- Supporting business processes using methods, techniques, and software to design,
enact, control, and analyze operational processes involving humans, organizations,
applications, documents and other sources of information (van der Aalst, ter
Hofstede, and Weske (2003)).
Key observations:
- BPM is about processes and for customers
- There is a lot that can be done with those processes: design, analysis, …
- It’s at the intersection of management and information technology
History BPM
Second industrial revolution (1865-1900)
- Taylor’s scientific management:
o Rationalization
o Observe it, measure it, analyze it.
o Division of labor (makes more efficient and less faults in work)
o Specialist
o Manager
o Functional units
▪
▪ We group people that do similar jobs
o Extremely effective, tenfold improvements!
▪ We still work this way but…
▪ Contemporary effects
• Departmental sub optimization
• Client dissatisfaction is abundant
• Lack of workforce commitment
, lOMoAR cPSD| 2744568
• Inflexible organizations (people are so specialist that it takes a
lot of time when they have to do something else to do it good)
The process wave of the 90s:
- Improve customer service by improving cross-functional processes using IT, and
redesigning/reengineering/innovating process structures.
Substantial good news:
- 100 American production companies Measurement of “Business Process Orientation”
(BPO) (business process reengineering in EU)
o Focus of coordination, language, improvement projects, responsibilities,
customer focus etc.
o
So now there is BPM
- Improving business processes, while focusing on the customer, by performing actions
on these processes.
- BPM is the rebranding of process thinking of the 90s, with two important
developments
o BPM is the rise of process-aware technology;
o BPM takes a much broader scope than previous process approaches.
- BPM life-cycle
, lOMoAR cPSD| 2744568
o
Process architecture
Process identification:
- This consists in a set of activities aimed to systematically derive the set of
organization processes and their relations.
o Outcome: process architecture.
- Designation phase
o Identifying organization processes and their relationships
- Evaluation phase
o Prioritizing the identified processes for process management activities.
How to identify processes:
- Enumerate organization processes
- Find the right balance between impact and manageability
Large collections of process models
- Require structure!
Summary 1BM05
Business proces management (Technische Universiteit Eindhoven)
, lOMoAR cPSD| 2744568
Lecture 1
BPM is a science and an art.
Definitions BPM:
- A systematic, structured approach to analyze, improve, control, and manage
processes with the aim of improving the quality of products and services (Elzinga,
Horak, Lee, and Bruner (1995)).
- A customer-focused approach to the systematic management, measurement and
improvement of all company processes through cross-functional teamwork and
employee empowerment. (Lee and Dale (1998)).
- Supporting business processes using methods, techniques, and software to design,
enact, control, and analyze operational processes involving humans, organizations,
applications, documents and other sources of information (van der Aalst, ter
Hofstede, and Weske (2003)).
Key observations:
- BPM is about processes and for customers
- There is a lot that can be done with those processes: design, analysis, …
- It’s at the intersection of management and information technology
History BPM
Second industrial revolution (1865-1900)
- Taylor’s scientific management:
o Rationalization
o Observe it, measure it, analyze it.
o Division of labor (makes more efficient and less faults in work)
o Specialist
o Manager
o Functional units
▪
▪ We group people that do similar jobs
o Extremely effective, tenfold improvements!
▪ We still work this way but…
▪ Contemporary effects
• Departmental sub optimization
• Client dissatisfaction is abundant
• Lack of workforce commitment
, lOMoAR cPSD| 2744568
• Inflexible organizations (people are so specialist that it takes a
lot of time when they have to do something else to do it good)
The process wave of the 90s:
- Improve customer service by improving cross-functional processes using IT, and
redesigning/reengineering/innovating process structures.
Substantial good news:
- 100 American production companies Measurement of “Business Process Orientation”
(BPO) (business process reengineering in EU)
o Focus of coordination, language, improvement projects, responsibilities,
customer focus etc.
o
So now there is BPM
- Improving business processes, while focusing on the customer, by performing actions
on these processes.
- BPM is the rebranding of process thinking of the 90s, with two important
developments
o BPM is the rise of process-aware technology;
o BPM takes a much broader scope than previous process approaches.
- BPM life-cycle
, lOMoAR cPSD| 2744568
o
Process architecture
Process identification:
- This consists in a set of activities aimed to systematically derive the set of
organization processes and their relations.
o Outcome: process architecture.
- Designation phase
o Identifying organization processes and their relationships
- Evaluation phase
o Prioritizing the identified processes for process management activities.
How to identify processes:
- Enumerate organization processes
- Find the right balance between impact and manageability
Large collections of process models
- Require structure!
