CH3: Fundamentals of business process management
=> see overview pp to link with CH2 (how to study!)
=> Exam:
- 3 questions BPMN
- 1 zachman
- 1 UTAUT
=> understand what gateways, Pools, lanes and messages, start & end events are
3.1 The BPM cycle
What is a (business) process
- collection of related events , activities and decisions that involve a number of
actors and resources, and that collectively lead to an outcome that is of value
to an organization or its customers
=> Examples
- order-to-cash (order on zalando)
- Quote-to-order (renovating bathroom)
- Procur-to-pay (buying desk, chairs… for classroom)
- Application-to-approval (international students)
- Claim-to-settlement (car accident)
- Fault-to-resolution (bug in software)
=> Every process leads to one of several outcomes
- Positive: deliver value
- Negative: reduce value
- Washing machine example: if they don’t ask you about the warranty
beforehand, you will have a negative experience, but if the process was
handled differently the outcome would have been different as well
Process architecture pyramid
Top:
- Core processes:sales, procurement, aftersale service
- Support processes: HR, training,
- Management processes: Strategy development
Middle: (more detailed)
- Quote handeling
- Product delivery
- Invoice handling
Bottom: (most detailed, exceptions)
- Detailed quote
- Handling process
1
,Why BPM?
=> If we want to create value, we first need to understand our processes and apply
IT to create value (and adjust processes to technology)
=> If you use technology in an efficient operation it will magnify the efficiency, but if
you use it in an inefficient operation, it will magnify that as well
The BPM cycle
- Process identification: first step, rule 1 of Zachman (what is in our scope),
identify big domains/ list the processes and label them (cost, time and quality)
(Top part of pyramid) => Process map with this information about the
processes (green is good, yellow is doubtful and red is bad), identify the
processes that need changing
- Process modelling: Choose a red process and dig into how it works
=> Map out how it works
=> Important because you need to know all your processes very well to have
a competitive advantage
=> Describes processes using common language, integrates processes with
other artefacts (systems, organizations, data, services, risks…), enables
revision validation and testing (e.g. simulation), can be used as a benchmark
for measuring improvements “what-if” analysis, provides blueprint for process
automation
- Process implementation
=> Lower rows in Zachmans
framework
=>Transform the business
process model to an executable
model (readable by machine)
- Process discovery
=> Additional activities: instead of
process modeling discovery (if
everything was green), Observing processes rather than through interviews,
use event logs recorded by information system to discover BP’s
- Process monitoring: After implementation, you can extract information for IT
systems and use that to monitor the processes
2
, - Process analysis: human based, look at problems mentioned by
employees/customers
=> Qualitative analysis: issue register, root-cause analysis, PICK charts
(possible, implement, challenge, kill) (examples on pp)
=> Quantitative analysis: use numbers to make e.g. a simulation, flow
analysis, queuing analysis, process simulation (examples pp)
- Process redesign: almost impossible to improve at all four dimensions at the
same time: devil’s quadrangle (time, cost, quality, flexibility) => trade-offs
=> closes the cycle
3.2 Business process identification
Process identification
- Corresponds with scoping with Zachman’s framework
- Identifying the key processes to model
- Process maps provide a high-level overview of the processes in a company
(examples see pp)
SCOR: supply chain operations reference model
- Defines the processes at different levels of abstraction
- Planning processes, sourcing processes, deliver processes, return processes
- “Make” consists of build to stock, build to order an engineer to order (they
want a specific order, so you engineer it to have that feature)
- Level 1: Sets scope and context, geographies, segments and products
- Level 2: Identifies major configurations within geographies, segments and
products
- Level 3: identifies key business activities within a configuration
- Supply chain: different companies connected to each other, your deliver can
be the source of the customer
- You can base your process map on the example map of SCOR
ITIL: Information & technology infrastructure library
- Set of practices for managing IT services
- Focuses on aligning IT services with the business needs (Divided in 5
domains (sl5))
- Service strategy: understanding organizational objectives & customer needs
- Service design: Turn strategy into plan for delivering the business objectives
- Service transition: Develops and improves capabilities for introducing new
services (If you want website, you need experts who know about that)
- Service operation: Manage incremental and large-scale improvements of
services
=> Example pp KU Leuven ICTS
=> Organizations have many processes, and a few big process areas
3
=> see overview pp to link with CH2 (how to study!)
=> Exam:
- 3 questions BPMN
- 1 zachman
- 1 UTAUT
=> understand what gateways, Pools, lanes and messages, start & end events are
3.1 The BPM cycle
What is a (business) process
- collection of related events , activities and decisions that involve a number of
actors and resources, and that collectively lead to an outcome that is of value
to an organization or its customers
=> Examples
- order-to-cash (order on zalando)
- Quote-to-order (renovating bathroom)
- Procur-to-pay (buying desk, chairs… for classroom)
- Application-to-approval (international students)
- Claim-to-settlement (car accident)
- Fault-to-resolution (bug in software)
=> Every process leads to one of several outcomes
- Positive: deliver value
- Negative: reduce value
- Washing machine example: if they don’t ask you about the warranty
beforehand, you will have a negative experience, but if the process was
handled differently the outcome would have been different as well
Process architecture pyramid
Top:
- Core processes:sales, procurement, aftersale service
- Support processes: HR, training,
- Management processes: Strategy development
Middle: (more detailed)
- Quote handeling
- Product delivery
- Invoice handling
Bottom: (most detailed, exceptions)
- Detailed quote
- Handling process
1
,Why BPM?
=> If we want to create value, we first need to understand our processes and apply
IT to create value (and adjust processes to technology)
=> If you use technology in an efficient operation it will magnify the efficiency, but if
you use it in an inefficient operation, it will magnify that as well
The BPM cycle
- Process identification: first step, rule 1 of Zachman (what is in our scope),
identify big domains/ list the processes and label them (cost, time and quality)
(Top part of pyramid) => Process map with this information about the
processes (green is good, yellow is doubtful and red is bad), identify the
processes that need changing
- Process modelling: Choose a red process and dig into how it works
=> Map out how it works
=> Important because you need to know all your processes very well to have
a competitive advantage
=> Describes processes using common language, integrates processes with
other artefacts (systems, organizations, data, services, risks…), enables
revision validation and testing (e.g. simulation), can be used as a benchmark
for measuring improvements “what-if” analysis, provides blueprint for process
automation
- Process implementation
=> Lower rows in Zachmans
framework
=>Transform the business
process model to an executable
model (readable by machine)
- Process discovery
=> Additional activities: instead of
process modeling discovery (if
everything was green), Observing processes rather than through interviews,
use event logs recorded by information system to discover BP’s
- Process monitoring: After implementation, you can extract information for IT
systems and use that to monitor the processes
2
, - Process analysis: human based, look at problems mentioned by
employees/customers
=> Qualitative analysis: issue register, root-cause analysis, PICK charts
(possible, implement, challenge, kill) (examples on pp)
=> Quantitative analysis: use numbers to make e.g. a simulation, flow
analysis, queuing analysis, process simulation (examples pp)
- Process redesign: almost impossible to improve at all four dimensions at the
same time: devil’s quadrangle (time, cost, quality, flexibility) => trade-offs
=> closes the cycle
3.2 Business process identification
Process identification
- Corresponds with scoping with Zachman’s framework
- Identifying the key processes to model
- Process maps provide a high-level overview of the processes in a company
(examples see pp)
SCOR: supply chain operations reference model
- Defines the processes at different levels of abstraction
- Planning processes, sourcing processes, deliver processes, return processes
- “Make” consists of build to stock, build to order an engineer to order (they
want a specific order, so you engineer it to have that feature)
- Level 1: Sets scope and context, geographies, segments and products
- Level 2: Identifies major configurations within geographies, segments and
products
- Level 3: identifies key business activities within a configuration
- Supply chain: different companies connected to each other, your deliver can
be the source of the customer
- You can base your process map on the example map of SCOR
ITIL: Information & technology infrastructure library
- Set of practices for managing IT services
- Focuses on aligning IT services with the business needs (Divided in 5
domains (sl5))
- Service strategy: understanding organizational objectives & customer needs
- Service design: Turn strategy into plan for delivering the business objectives
- Service transition: Develops and improves capabilities for introducing new
services (If you want website, you need experts who know about that)
- Service operation: Manage incremental and large-scale improvements of
services
=> Example pp KU Leuven ICTS
=> Organizations have many processes, and a few big process areas
3
