BPM - Gartner

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GARTNER CONSULTINGVersion #1Engagement: EngagementAlias

The role of technology in a BPM project is to provide the process visibility, accountability and adaptability to better manage this work, and to improve business outcomes.

BPM is not just a technology. Because it fundamentally changes how people work, BPM is about transformation and skills.

Peter HidasSenior ConsultantGartner [email protected]

Prepared for

Engagement: EngagementAlias 2012 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. or its affiliates. 1

The Five Major BPM Pursuits

Business processautomation (BPA)

Documenting rules and workflows so that they can be executed by computers

Business processimprovement (BPI)

Monitoring process execution and pursuing incremental process improvements within a business functional silo

Business process reengineering(BPR)

Fostering cross-functional discussions to make major efficiency changes to processes

Business improvement Encouraging a measurement, monitoring, and improvement mindset within a single business unit

Business optimization Examining and promoting changes to business models, capabilities,organizational structure, processes, and information across organizational entities

All of them needs process modeling as an early step


The Challenge According to Gartner

Business processes run an enterprise, but most business processes execute in an ad hoc and informal manner as people exchange telephone calls, pieces of paper, email, unstructured documents, and spreadsheets as they interact with information systems. Only a fraction of an organization's business processes are modeled, managed, or measured in any way.

BPM is a discipline for managing business processes explicitly as strategic assets. Executives state "improving business processes" as a strategic priority. Achieving this goal implies that a BPM discipline should permeate their organizations. This is easier said than done.

BPM infrastructure is a suite of tools that supports an enterprise's development of a BPM discipline. A comprehensive BPM infrastructure is not a prerequisite for BPM. BPM infrastructure can support a maturing BPM discipline, but it cannot be a substitute for one.

Confusion reigns in the market about whether BPM is a business-led process-improvement initiative or a new way of developing model-driven applications. Most organizations treat BPM as an infrastructure- or application-development initiative. Lines of business tend to use BPM infrastructure as a development tool often outside IT and very few organizations actually practice the discipline well.

Most current BPM infrastructure platforms do not fit well in a post-modern, heterogeneous application platform. Enterprise IT does not need yet another technical silo contributing to complexity. But only IT teams see the BPM

suites as part of the complexity problem. Business owners see them as the solution for their broken processes.


Distribution of Business Processes Phases

At each phase of the life cycle, infrastructure sophistication increases, but the number of processes reaching that phase decreases dramatically.


BPM Worst Practice


BPM Worst Practice: Treating BPM as Just a Technology and Ignoring BPM as a Discipline

It is easy for companies to focus on implementing a tool when doing business process management. However, organizations that focus on BPM technology and ignore the management discipline side will fail.

Although BPM technologies are crucial to advancing BPM maturity, they are not essential when starting out in BPM, and focusing just on technology when initiating a BPM program is a recipe for disaster.


Recognize the impact of organizational politics

Recognize the impact of organizational politics or else your BPM program is doomed to fail. Organizations doing BPM struggle more with managing people and politics than they do with mastering the technology.

The majority of organizations still operate within functional silos that impede the visibility of end-to-end process performance and inhibit a more process-centric way of thinking.

If people don't understand what's in it for them, they won't buy into your BPM vision.


Address the lack of transformational skills

Address the lack of transformational skills or else it will inhibit successful BPM project execution and increase the likelihood of not delivering results.

Many organizations view process skills as primarily meaning process modeling and analysis. However, the reality is that a broader and more comprehensive skill set is required across the BPM team to deliver a successful BPM project.

Skills such as project management and organizational change techniques are particularly crucial to BPM project success.


Improve process visibility to reveal BPM blind spots

Improve process visibility to reveal BPM blind spots or risk misidentification of process pain points.

Parts of the process will happen outside the system, especially manual workarounds and shadow processes that might conceal process pain points. Engage with end users to discover how they really interact with the process and what they need to carry out a given task.

Follow an end-to-end process, such as raising a customer invoice, and observe how users interact with the process and what their specific tasks are.


Establish effective ownership for process performance

Establish effective ownership for process performance to avoid reducing the benefits of BPM. Organizations are struggling to make process ownership effective, because they fail to find the right type of person to fill the role.

If you don't measure how your processes are performing, then you won't know which ones are operating poorly.


Necessary Skills


Gartner has identified 15 business process management skills that arecritical to the success of any business process improvement project

A key challenge facing many organizations is a shortage of the skills required for BPM success. Most have expertise in a variety of BPI* approaches. BPM can leverage this expertise, but achieving the visibility, accountability and adaptability needed for BPM success requires more competencies.

The top 15 BPM skills fall into three critical skill sets, which we refer to as "competencies": Transformational competence supports BPM execution. Operational competence identifies what has to change and how. Technical competence enables this change to be achieved.

Organizations often focus on the obvious skills for BPM, such as process modeling, without considering "softer" ones, such as project management and organizational change skills.

While some organizations recognize the importance of process modeling, they often do not provide sufficient training for it.

*BPI = Business Process Improvement


Top 15 BPM Skills


Levels of BPM Competencies


Five Pitfalls


Five pitfalls

Pitfall no. 1: Being caught unprepared to demonstrate value delivered The BPM team may well have delivered some value to the organization, but if it did, it failed to keep a record of these

achievements or routinely communicate them to those who matter. Benefits achieved but not demonstrated and communicated are as good as no benefits at all.

Pitfall no. 2: Deploying a BPMS without understanding BPM as a discipline Gartner advises clients to go to where the work is done and follow an actual instance of the process from beginning to end. This

will reveal all the delays, loops, approvals and shadow processes that actually exist. Often, the act of process mapping can reveal a rich trove of improvement opportunities before automation is even considered.

Pitfall no. 3: Launching a BPM effort based on perceived problems, without validating the facts BPM activities must be based on facts and data, rather than reactions to who shouts the loudest. This imperative for

improvement initiatives is reflected in the DMAIC (define, measure, analyze, improve, control) cycle of Six Sigma process improvement methodology.

Pitfall no. 4: Developing BPM capabilities without delivering business value Many people have lost sight of why they are doing BPM, and are focusing instead on the mechanics of getting set up.

Improving business performance is the goal, BPM is just a vehicle to help get there. Pitfall no. 5: Focusing on mapping processes instead of improving processes

BPM teams can get lost in the process of mapping processes, acting under the assumption that this mapping activity amounts to "doing BPM." However, if these process maps are not used as a tool for bringing about actual business improvements or if such productive use cannot be demonstrated they have no inherent value.


BPM Sweet Spot


BPMTs

BPMTs include simple diagramming and process mapping tools, business process analysis (BPA) tools, business rule engines, business rule management systems, business activity monitoring (BAM), BI tools, workflow and process execution, optimization and simulation, BPM suites (BPMSs) and intelligent BPMSs (iBPMSs).

The role of technology in a BPM project is to provide the process visibility, accountability and adaptability to better manage this work, and to improve business outcomes.

The BPM Sweet Spot Framework uses two key factors the organization most responsible for process change, and the frequency of that change as the basis for analyzing BPM suitability. Some BPMTs are better than others at supporting each of the four corners of this framework.

A suite of well-integrated BPMTs (such as iBPMS) that supports business and IT process participants throughout the business process life cycle is a better choice than a collection of best-in-breed BPM tools in situations where (1) the frequency of process change is high, (2) rapid process change is required in response to unexpected events or (3) processes are unstructured (i.e., the process path cannot be determined upfront).


BPM Sweet Spot Framework

IT needs to be primarily responsible for developing BPM solutions in

processes where business continuity is critical, and when

processes involve many system-to-system interactions, as in straight-

through processing.

Different processes in the same company can end up in different

corners

1

2

3 4

Gartnerestimates that nearly 50% of large

enterprises and 75% of midsize organizations are still using

spreadsheets to support planning, forecasting and budgeting

processes, a practice that creates a fragmented approach to

managing overall corporate performance management


The Degree to Which Individual BPMTs Satisfy the Requirements of the BPM Sweet Spot Framework


The four corners

Technologies for the BPM Sweet Spot Foster Business

Agility

BPM for IT Agility Technologies Speed Time to

Solution

Technologies for BPM Standardization and

Manageability Drive Visibility and Accountability

Where BPM Is Questionable, Enterprise Applications (ERP, ESB)

May Be a Better Fit


Magic Quadrant for Intelligent Business Process Management Suites

Leading organizations are seeking to make their business operations more intelligent byintegrating analytics into their processes and

the applications that enable them. Gartner hasidentified this trend as a new usage scenario

"intelligent business operations.

Gartner's iBPMS Magic Quadrant positions 13 vendors focused on real-time

agility, process optimization and other hallmarks of intelligent business operations.

Early adopters are implementing IBO now; however, all

organizations should factor iBPMS into their BPM planning horizon.


Gartner has identified the following core capabilities of an iBPMS:

1. A process orchestration engine to drive the progression of work in structured and unstructured processes or cases

2. A model-driven composition environment for designing processes and their supporting activities and process artifacts

3. Content interaction management to support the progression of work, especially cases, based on changes in the content itself (such as documents, images and audio)

4. Human interaction management to enable people to naturally interact with the processes theyare involved in5. Connectivity to link processes to the resources they control, such as people, systems, data, event streams,

goals and key performance indicators (KPIs)6. Active analytics (sometimes called continuous intelligence) for monitoring activity progress, and analyzing

activities and changes in and around processes7. On-demand analytics to provide decision support or decision automation using predictive analytics or

optimization technology8. Business rule management to guide and implement process agility and ensure compliance9. Management and administration to monitor and adjust the technical aspects of the iBPMS10. A process component registry/repository for process component leverage and reuse


Supporting Slides


No single product can (or should) encompass all the template's capabilities (1 of 2)

BPM suites (BPMSs): These products supply an integrated collection of design-time and runtime components that support an entire process life cycle using a common meta-model. Product examples are Appian, IBM Business Process Manager, Oracle BPM Suite 11g, and Progress Savvion.

Process modeling tools: Also called process mapping or business process analysis (BPA) tools, these products typically provide visual modeling and process simulation capabilities, as well as artifact repositories. Product examples are iGrafx, Mega Suite, Metastorm Provision, Microsoft Visio, and Software AG/IDS Scheer ARIS. Web-based modeling tools include IBM BlueworksLiveand Software AG ARISalign. Microsoft Visio and Unified Modeling Language tools are widely used for modeling processes, but do not provide the same level of repository-based process semantics as the other products in this category.

Process simulation and optimization tools: Simulation tools allow the user to create statistical models to represent the behavior of systems (e.g., processes) and perform experiments or scenarios without committing resources to the analysis. Examples of standalone simulation and optimization products are FICO Xpress Optimization Suite, Lanner WITNESS, and SIMUL8.


No single product can (or should) encompass all the template's capabilities (2 of 2)

Business rules management systems (BRMSs): Process engines can delegate complex work-routing decisions to external BRMSs using proprietary or standards-based integration. BRMS products include rule authoring environments, rule repositories, and rule-firing execution engines. Example BRMS products are Corticon, FICO Blaze Advisor, IBM Ilog, JBoss Drools, and Oracle Business Rules.

Service-oriented architecture (SOA) orchestration engines: BPM infrastructure relies on service containers such as enterprise service buses (ESBs) and application servers for providing access to services and legacy systems. Many ESBs support Business Process Execution Language (BPEL)-based orchestration of business processes via workflow-driven invocation of services. Example products are IBM WebSphere ESB, Oracle SOA Suite, and Tibco ActiveMatrixServiceGrid.

Collaboration and content platforms: Platforms for creating business activity coordination functionality (e.g., IBM Lotus Notes or Microsoft SharePoint) allow teams to configure simple content-centric workflows.


BPM Infrastructure Template Diagram the Big Picture Classification

Runtime

Runtime Hosting

Data Sources/Enterprise Systems

Design-Time

User Interaction

BPM Governance

Interaction Channels: Web, Mobile Devices, Doc Capture and OCR, IVR, Email

User/SocialCollaboration

Process ParticipantInterface

Business DashboardKPI/BAM/Alerting

IT OperationsDashboard

ProcessDesign

PrebuiltModels andSolutions

KPI Definition

RulesAuthoring

SimulationDesign

UIDesign

Solution Development Tasks

Process Executionand Orchestration

ProcessSimulation

Business Rules

ExecutionConstraint

OptimizationComposite UI Delivery

Event Processingand Correlation

Messaging and Integration

Adapters

LegacySystemsS S

ExternalEvents/

Data

Process MetadataManagement

Enterprise DataECM

Service Registry/Repository

DirectoryServices

MessageStore

BAM/Analytics

Functionally, process stakeholders require BPM Infrastructure

capabilities and services for:

1. Design-Time2. User Interaction

3. Runtime4. BPM Governance

5. Data Sources/ Enterprise Systems

S means Service


Model a Process to Create a Visual Representation

Runtime

Runtime Hosting


Design-Time

User Interaction

BPM Governance




BusinessDashboardKPI/BAM/Alerting


ProcessDesign


KPI Definition

RulesAuthoring

SimulationDesign

UIDesign



ProcessSimulation

Business RulesExecution

ConstraintOptimization

Composite UIDelivery



Adapters

LegacySystemsS S

ExternalEvents/Data


Enterprise DataECM


DirectoryServices

MessageStore

BAM/Analytics


Simulate a Process to Experiment With Process Behavior Under Various Conditions

Runtime

Runtime Hosting


Design-Time

User Interaction

BPM Governance






ProcessDesign


KPI Definition

RulesAuthoring

SimulationDesign

UIDesign



ProcessSimulation






Adapters

LegacySystemsS S

ExternalEvents/Data


Enterprise DataECM


DirectoryServices

MessageStore

BAM/Analytics


Build a Complete Process Automation Solution Based on Process Metadata

Runtime

Runtime Hosting


Design-Time

User Interaction

BPM Governance




Business DashboardKPI/BAM/Alerting


ProcessDesign


KPI Definition

RulesAuthoring

SimulationDesign

UIDesign



ProcessSimulation



Composite UI Delivery



Adapters

LegacySystemsS S

ExternalEvents/Data


Enterprise DataECM


DirectoryServices

MessageStore

BAM/Analytics


Deploy the Process Solution Into a Runtime Environment

Runtime

Runtime Hosting


Design-Time

User Interaction

BPM Governance






ProcessDesign


KPI Definition

RulesAuthoring

SimulationDesign

UIDesign



ProcessSimulation






Adapters

LegacySystemsS S

ExternalEvents/Data


Enterprise DataECM


DirectoryServices

MessageStore

BAM/Analytics


Execute the Process Using Runtime Engines While Harvesting Operational Data

Runtime

Runtime Hosting


Design-Time

User Interaction

BPM Governance






ProcessDesign


KPI Definition

RulesAuthoring

SimulationDesign

UIDesign



ProcessSimulation






Adapters

LegacySystemsS S

ExternalEvents/Data


Enterprise DataECM


DirectoryServices

MessageStore

BAM/Analytics


Monitor the Process to Gain Visibility Into Operations and Potential Optimizations

Runtime

Runtime Hosting


Design-Time

User Interaction

BPM Governance






ProcessDesign


KPI Definition

RulesAuthoring

SimulationDesign

UIDesign



ProcessSimulation






Adapters

LegacySystemsS S

ExternalEvents/Data


Enterprise DataECM


DirectoryServices

MessageStore

BAM/Analytics

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