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Sandy Kemsley l www.column2.com l @skemsley
BPM 101
Everything You Ever Wanted To Know About BPM*
*But Were Afraid To Ask
My History in BPM Mid-late 80’s: from satellite imaging to
document imaging to workflow Early 90’s: built desktop imaging/workflow
product Mid-late 90’s: integrate custom imaging,
workflow, EAI and e-commerce systems 2000-1: FileNet BPM evangelist 2002-now: BPM and Enterprise 2.0
consulting and industry analyst
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My BPM Calling Card Column2.com: “a blog about BPM,
Enterprise 2.0 and technology trends in business”
Community of up to 3,000/day Best known for:
Conference blogging Product reviews Independent opinions
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Agenda Defining BPM
The methodology and the technology The value of BPM
Evolution of the BPMS Trends in BPM and BPMS Fit-to-purpose BPM
Use cases in BPM Getting started and growing a BPM initiative
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Defining BPMPart 1
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Methodology AND Technology
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What Is AnEnterprise Business Process?
Chain of activities producing a business result
Usually spans functional silos Requirement to “manage the white space”
between functional groups
Target of high-value BPM efforts
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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
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BPM Defined A management discipline for improving
cross-functional business processes The methods and technology tools used to
manage and optimize business processes
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Business Process Maturity Model
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Source: OMG BPMM specification
How BPMM Works
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Source: OMG BPMM specification
The Value of BPM
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BPM Goals Efficiency
Automating steps and handoffs Integrating systems and data sources
Compliance Achieving and proving standardization
Agility Changing processes quickly and easily
Visibility See what’s happening in a process
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Benefits of BPM Process improvement
Cost savings Increased revenue Improved time-to-market Additional business opportunities
Business agility through process agility Self-documenting processes
The Evolution of BPMSPart 2
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History of BPM to mid-2000’s
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BPM Suite
“Integration-focused” BPM“Pure-play” BPM
Administrative BPM Collaborative BPM Embedded BPM
exte
ndex
tendextend
Simple workflow (build)
Lightweight EAI (OEM)
exte
nd
Workflow(person-to-person)
EAI/IBS(system-to-system)
Business activity monitoring
Process governance
Process simulation
Business rules
Process modeling
B2Bi
From 2005 To Now Model-driven development Emergence of standards Integration of key related technologies Social software impacts Composite development environment Market convergence and consolidation
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What’s In Today’s BPMS? Process definition/
modeling tool Execution engine User interfaces Integration
capabilities incl. web services
Business rules
Monitoring and governance
Dashboards, reporting and analysis
Simulation and optimization
Application templates
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Importance of Model-Driven BPM Reduces need for custom development
Graphical model auto-translates to executing process: “zero code” BPM
IT resistance to ceding control
Enables business-IT collaboration Business people can create and view process
models Business resistance to participation
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BPM Standards
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Source: http://bpmb.de/poster
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BPM and SOA
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BPM and SOA
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Service A Service B Service C
Service D Service E
LegacySystem
DatabaseERPSystem
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 BPM SOA alone only allows you to design and build a
set of services BPM alone would require custom coding for
each system integration
BPM + SOA orchestrates people and services into a business process
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SOA and Process Modeling Discovering services
What services already exist Whether existing services meet the needs
Specifying services What new services need to be created What legacy functions need to be wrapped in
services
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Implementing BPM and SOA Two basic approaches
Bottom-up — SOA then BPM Generate services from existing apps Consume services in processes
Top-down — BPM drives SOA Model processes Identify and build services required
In practice, a combination of both approaches
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Issues and Challenges Different vendors and products SOA and BPM seen as competitive Competing standards Separate initiatives within end-user
organizations Developed independently in different
departments Different sponsors and champions
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Trends in BPM and BPMSPart 3
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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
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The Impact of Social Software
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What Is Enterprise 2.0? Enterprise-facing social software Business purpose, not purely social:
Social interaction to strengthen weak ties Social production to collaboratively produce
content
SaaS or on-premise
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Drivers For BPM + Enterprise 2.0 Changing user expectations Trends towards greater collaboration Lack of agility in many current BPMS
implementations
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Social Software Impacts:The Four C’s
Collaboration Configurability Cloud Community
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Design-Time Collaboration Multiple people participate in process
discovery Internal and external Technical and business
Captures “tribal knowledge”
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Runtime Collaboration User adds new participants to leverage
knowledge and relationship User discussions linked to process
instance Threaded discussions Wiki pages Instant messaging Tags and categories
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BPM Configurability Composite development environments now
included with many BPMS UI forms development Container-based portal environment Ready-made BPM widgets Wiring interfaces between widgets
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BPM in the Cloud Reduce capital costs Full capabilities of on-premise version Design and run from anywhere Key targets:
Business process outsourcers Small and medium business Business-to-business processes
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Process Event Streams Publish and subscribe model for process
events Changes to models Runtime process instances
Increases visibility Increases participation Supports wider variety of devices, including
mobile
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Online BPM Communities External communities of practice
Provide idea exchange, tools Augment or replace internal BPM center of
excellence May be vendor specific/sponsored
Internal center of excellence Discussion forums Collaboration linked to process models Collaboration linked to process instances
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Agile/Dynamic BPM
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Work: Taylor vs. Drucker
Scientific management
Standardize processes to increase efficiency
Management by objectives
Participants choose actions to meet goals
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Routine Work
Routine work can be analyzed and a common pattern derived...it can be automated by traditional process automation means.
Mastering The Unpredictable
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Knowledge Work
Knowledge work...does not have the level of repeatability found in routine work. When it comes to work automation, any advantage gained from similarities is overwhelmed by the additional costs of having to accommodate the differences.
Mastering The Unpredictable
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What’s Required For Agile BPM? Modify structured process models during
runtime Manage unstructured/unpredictable and
semi-structured work Provide real-time process intelligence to
identify future problems and inform decision-making
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From Structured BPM to ACM
Structured BPM Adaptive Case Management
Repeatability of process instances
Highly repeatable Unpredictable
Focus of process Transactions Knowledge
Goal of system Efficiency and automation
Problem resolution
Example Data processing of financial transactions
Patient chronic care management
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ACM and BPM Together Process spawns
exception case
Case invokes process fragments
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Event-Driven BPM
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What Are Events? Events are how the “real world” interacts
with processes and systems An action outside a process that impacts
that process Real-time information Instructions
Originating with people, sensors or other systems
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Why Do Events Matter? Events make processes more responsive
to internal and external situations Allow processes to respond to changing
conditions Asynchronous information or control
provided to process
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Combining Events and Processes Event triggers a process
System or sensor User action
Process creates an event Process log Explicit message or signal
Event interrupts or diverts process External error or cancellation
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Event-Driven Financial Process Scenario: loan origination documents Customer documents created or gathered
in front office Transactions created by front office Back office verifies documents against
transactions
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Events and Process
Inbound Events Process initiation from
LOB system Document received from
ECM system Manual override of
documentation requirements
Outbound Events Fraud detection Feedback and requests
to front office Exceptions and
escalations to tracking systems
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Event-Driven Process
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Business-Led Design
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How Business Leads BPM Efforts Process discovery/modeling
Analysts capturing process models Users reviewing and modifying models
Customization of composite applications Users optimizing their own work environment Analysts creating shared views without IT
Dynamic BPM Users changing processes on the fly
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Fit-To-Purpose BPMPart 4
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Types of BPMS
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Gartner’s BPM Use Cases Implementation of company-specific
process application Support for continuous process
improvement Business transformation initiative Redesign for process-based SOA
Gartner MQ for BPMS, 2009
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Gartner Use Case Characteristics(a.k.a. “Functions”)
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Business perspective on models Orchestration of end-to-end processes Rules engine Pre-built industry-specific content Management visibility and control Model-driven development …and more
Forrester Market Divisions Dynamic case management
= document-centric BPM Comprehensive integration solutions
= integration-centric BPM BPMS
= human-centric BPM
Forrester Wave for BPMS, 2010
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Characteristics of Dynamic Case Management
Strong enterprise content management (ECM) requirements Records management Search Content analytics
Human-centric BPM capabilities Document approval workflow Ad hoc BPM centered on case file
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Characteristics of Comprehensive Integration Solutions
Heavy integration requirements ESB Service registry, repository and governance SOA development environments
Human-centric BPM capabilities Exception handling and escalation
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Characteristics of BPMS Web service and other lighter-weight
integration Lighter-weight content management Focus on process application development
Process modeling and design collaboration Process development and composition Collaborative work environment
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Evaluation Criteria for BPM
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BPM Evaluation Criteria BPM “style”: integration, human-centric,
document-centric Collaborative modeling Process design Application composition/development Business rules ESB/SOA
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BPM Evaluation Criteria Collaborative/dynamic execution User-configurable user interface Analytics and reporting Simulation Process optimization
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Starting and Growing a BPM Initiative
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Getting Started With BPM Picking the right first process
Small enough to be manageable Big enough to be relevant Expected return on investment (ROI)
Gaining business buy-in Collaborative process discovery and design Ongoing involvement during prototyping and
implementation Control over production runtime environment
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Making It Work Ensuring user adoption
Building a user-centric, user-configurable solution
Providing benefits to individual users
Measuring success Before and after comparisons Post-implementation reviews Hard and soft ROI Understanding disruptive benefits
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Expanding the Initiative Deeper integration
Increase benefits through integration and automation
Wider adoption across the organization Generalizing the benefits Finding points of integration with initial
processes
BPM Center of Excellence Skills and resources Shared artifacts
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Summary
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Summary The history and evolution of BPM Current trends in BPM Types of processes and BPMS Starting and growing a BPM initiative
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Questions?
Sandy Kemsley
Kemsley Design Ltd.
email: [email protected]
blog: www.column2.com
twitter: @skemsley
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