Business Process Modellingdocs.business.auckland.ac.nz/Doc/CODE-Seminar-Business... · 2010. 10. 12. · Business Process Reengineering „Reengineering is the fundamental rethinking

Business ProcessModelling Seminar

Modelling in the Australian Practice- Preliminary Results from an ACS Survey -

Michael Rosemann

Queensland University of TechnologyCentre for Information Technology Innovation

Auckland, 20 February 2003

© Michael Rosemann, BPM Seminar- 20 February 2003

Survey: Modelling in Practice

• Research questions– What are the purposes of modelling?– What are popular tools and techniques?– What are success factors and major issues related to modelling?

• supported by the ACS• Online questionnaire• July / August 2002• 312 responses with demographics• 370 responses in total• 1567 (average) members interested in area• Effective relevant response rate – 23.6 percent


Online Survey


0 0.5 1 1.5 2 2.5 3 3.5 4

Database design and management

Improvement of internal business processes

Softw are development

Business process documentation

Workflow management

Improvement of collaborative business processes

Design of Enterprise Architecture

Change management

Know ledge management

End user training

Softw are configuration

Softw are selection

The Most Popular Modelling Purposes


The Top Ten Modelling Techniques- in the past

0 50 100 150 200 250

Data f low diagram

ER diagram

System flow charts

Structured charts

RAD (rapid application development)

Workflow modelling

State transition diagram

JAD (joint application development)

UML (unif ied modelling language)

Event-driven process chains


The Top Ten Modelling Techniques- currently

0 20 40 60 80 100 120 140 160

ER diagram

Data f low diagram

System flow charts

Workflow modelling

RAD (rapid application development)

UML (unif ied modelling language)

Structured charts

Event-driven process chains

JAD (joint application development)

State transition diagram

Object role modelling


0 50 100 150 200

Visio

iGrafx FlowCharter

Oracle9i Developer Suite

Rational Rose

System Architect

AllFusion ERwin Data Modeler

Advantage Developer Series

The Top Ten Modelling Tools- in the past


The Top Ten Modelling Tools- currently

0 20 40 60 80 100 120 140 160

Visio

Rational Rose

iGrafx Flow Charter

Oracle9i Developer Suite

AllFusion ERw in Data Modeler

WorkFlow Modeler

Business Process Modelling

Michael Rosemann

Queensland University of TechnologyCentre for Information Technology Innovation


Cost Development

BPLifecycle

$Influence

on costs

Actualcosts


The IT Hype Curve

Visibility

Time2000 2002 2004

Need for Business/IT Alignment


Jobs Decline

Advertisements

Time2000 2001 2002

The Australian, 10 December 2002, p. 25.

10,000

20,000

30,000

40,000

50,000

60,000

0

IT & T

Non ITSectors


Business Process Models as Communicator


Origins of Business Process Modelling

Data Modelling

Information Engineering

Business Process Reengineering

Enterprise Architectures

Object Orientation

Workflow Management

BusinessProcess

Modelling


Business Process Reengineering

„Reengineering is the fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical, contemporary measures of performance, such as cost, quality, service, and speed.“

[Hammer, Champy 1993]


What would you change ...

80656050554535353020

More attention to process optimisation

Go ahead intensively and systematically according to the company goals

Pay more attention to the area spanned cooperation within the concepts

Provide simultaneous implementation of a management information system

Recruit the project management out of the relevant department

Intensify trainings

Stronger including of the works council

Enforce changes more courageously

Better proofs of economy

Avoid big-bang implementations

selections in %

Computerweek (Germany) Nr. 49, 4. December 1998

Importance of Process Management


InvoiceInquiry

Quotation Delivery note

Customer order

A process is the self-contained, temporal andlogical order (parallel and/or serial) of thoseactivities, that are executed for the transformationof an business object with the goal ofaccomplishing a given task.

Recommended Process Definition


The Innovation of Process Management

• the innovation is the focus on processes

• increase awareness of processes

• make processes explicit → model processes

• manage processes actively

• manage processes continuously


Recent Contacts


ProcessDocumentation

WorkflowManagement Simulation

ES-Implementation/Upgrade/

Benefits Realisation

KnowledgeManagement

ProcessImprovement

Activity-basedCosting

DocumentManagement

Purposes of Process Modelling

RiskManagement

SoftwareSelection


Centrelink Call

• Purpose:– Prepare selection of a workforce management system– Understand and improve existing processes

• Deliverables:– Business framework, value chains, process models,

issue registers


Department of Defence

• Purpose: analysing and improving the change management process• Deliverables: as-is and to be models (2 mths., 12 mths),

comprehensive registers with issues andimprovement proposal

• Mode: Process Analysis Centre


Health Insurance Commission

• Purpose: redesign of the contact centre architecture• Deliverables: as-is and to be models (2005),

Comprehensive registers with issues andimprovement proposal

• Mode: Process Modelling Forum

Pharmacyvisit

Pharmacyclaim

Paymentto

Pharmacy

Claims BulkBill

PatientClaim

Prescription

Payment

Medicare

PBS

Value Chain To-Be

Enrolment

ProviderRegistration

PharmacyRegistration

SimplifiedBilling

PatientRefundClaim

Paymentto

Patient

SafetyNet

HIC

PBS

Medicare

Patient-Provider

Interaction

PM contactsHIC CC

PracticeManager

CSO

Patient

Checkeligibility

online

ConsumerDirectory

ConsumerDirectory

PM agreesto checkelligibility

Medicare Enquiry Line- eligibility check

otherchannels


Business Process Excellence


Chief Process Officer (CPO)

• Change management expert• Facilitates the management of

the entire business processlifecycle

• Provides solutions for processmodelling, process simulationand process performancemeasurement

• Is familiar with reference process models• Identifies appropriate IT solutions such as workflow

management, EAI, web services


As-Is Phase

– Change Management Improvement ManagerImprovement Manager

• Defines measures

• Collects improvement proposal

• Assigns responsibilities/ dates/priorities and status

• Monitors the conversion of measures and dates

Model UserModel User

• Discusses improvement proposal with process manager

• Enters improvement proposal into database

• Uses the process description as source of information for the required processing steps

Process ManagerProcess Manager

• Is responsible for the real processes and the conversion of modelled processes

• Discusses improvement proposal with model user

• Safeguards process execution

ModeModelllerler

• Customises models based on defined measures

• Changes status of improvement proposal


• Process identification• Process modelling (as-is)• Process analysis• Process improvement• Process implementation• Process execution• Process monitoring/controlling

Business Process Management Lifecycle


Collaborative Process Design

SCMSCMCRMCRM SCMSCM ...... CRMCRM

Enterprise Application Integration (EAI)Enterprise Application Integration (EAI)

...... ......

Business ProcessesBusiness Processes

EnterpriseEnterprise

Business Business ProcessesProcesses

SupplierSupplier

Business Business ProcessesProcesses

CustomerCustomer


Visibility of Customer Interaction Cycle

Inquiry

Quote

OrderGoods/Invoice

Payment

Customer

Company


Facets of BPM

BPMBPM

ArchitectureArchitecture MethodMethod(s)(s)

ToolsTools ContentContent


e.g. DATA

ENTERPRISE ARCHITECTURE - A FRAMEWORK

Builder

SCOPE(CONTEXTUAL)

MODEL(CONCEPTUAL)

ENTERPRISE

Designer

SYSTEMMODEL(LOGICAL)

TECHNOLOGYMODEL(PHYSICAL)

DETAILEDREPRESEN- TATIONS(OUT-OF- CONTEXT)

Sub-Contractor

FUNCTIONINGENTERPRISE

DATA FUNCTION NETWORK

e.g. Data Definition

Ent = FieldReln = Address

e.g. Physical Data Model

Ent = Segment/Table/etc.Reln = Pointer/Key/etc.

e.g. Logical Data Model

Ent = Data EntityReln = Data Relationship

e.g. Semantic Model

Ent = Business EntityReln = Business Relationship

List of Things Importantto the Business

ENTITY = Class ofBusiness Thing

List of Processes theBusiness Performs

Function = Class ofBusiness Process

e.g. Application Architecture

I/O = User ViewsProc .= Application Function

e.g. System Design

I/O = Data Elements/SetsProc.= Computer Function

e.g. Program

I/O = Control BlockProc.= Language Stmt

e.g. FUNCTION

e.g. Business Process Model

Proc. = Business ProcessI/O = Business Resources

List of Locations in which the Business Operates

Node = Major BusinessLocation

e.g. Business Logistics System

Node = Business LocationLink = Business Linkage

e.g. Distributed System

Node = I/S Function(Processor, Storage, etc)Link = Line Characteristics

e.g. Technology Architecture

Node = Hardware/SystemSoftware

Link = Line Specifications

e.g. Network Architecture

Node = AddressesLink = Protocols

e.g. NETWORK

Architecture

Planner

Owner

Builder

ENTERPRISEMODEL

(CONCEPTUAL)

Designer

SYSTEMMODEL

(LOGICAL)

TECHNOLOGYMODEL

(PHYSICAL)

DETAILEDREPRESEN-

TATIONS (OUT-OF

CONTEXT)

Sub-Contractor

FUNCTIONING

MOTIVATIONTIMEPEOPLE

e.g. Rule Specification

End = Sub-conditionMeans = Step

e.g. Rule Design

End = ConditionMeans = Action

e.g., Business Rule Model

End = Structural AssertionMeans =Action Assertion

End = Business ObjectiveMeans = Business Strategy

List of Business Goals/Strat

Ends/Means=Major Bus. Goal/Critical Success Factor

List of Events Significant

Time = Major Business Event

e.g. Processing Structure

Cycle = Processing CycleTime = System Event

e.g. Control Structure

Cycle = Component CycleTime = Execute

e.g. Timing Definition

Cycle = Machine CycleTime = Interrupt

e.g. SCHEDULE

e.g. Master Schedule

Time = Business EventCycle = Business Cycle

List of Organizations

People = Major Organizations

e.g. Work Flow Model

People = Organization UnitWork = Work Product

e.g. Human Interface

People = RoleWork = Deliverable

e.g. Presentation Architecture

People = UserWork = Screen Formate.g. Security Architecture

People = IdentityWork = Job

e.g. ORGANIZATION

Planner

Owner

to the BusinessImportant to the Business

What How Where Who When Why

John A. Zachman, Zachman International (810) 231-0531

SCOPE(CONTEXTUAL)

Architecture

e.g. STRATEGYENTERPRISE

e.g. Business Plan

TM


ControlView

OrganisationalView

FunctionView

Product/Service View

DataView

Architecture of Integrated Information Systems

34© Michael Rosemann, BPM Seminar- 20 February 2003

When?

Process

Which?

Data / Service / Product

What?Function

Who?Organisation

Method: Process Modelling Components


Events trigger functions Events trigger functions

Functions generate eventsFunctions generate events

CustomerOrder

Received

Confirmationof Customer

Order

TraceOrder

ProductionPlan

CreatedProduction

Plan

OrderConfirmation

Created

Feed-back

Received

Event Function Event

EventFunction

EventFunction

Example: Event-driven Process Chains


Data is processed in the functionsData is processed in the functionsData is processed in the functions

CustomerOrder

Received


Order

TraceOrder

ProductionPlan

CreatedProduction

Plan

OrderConfirmation

Created

Feed-back

Received

CustomerData

CustomerData Data

ProductionData

ProductionData Data

ResourcesResources Data



CustomerOrder

Received


Order

TraceOrder

ProductionPlan

CreatedProduction

Plan

OrderConfirmation

Created

Feed-back

Received

Employees are responsible for functionsEmployees are responsible for functions

Murray

Employee

Meyer

Employee

Hutchinson

Employee

CustomerData

CustomerData Data

ProductionData

ProductionData Data

ResourcesResources Data



IT-View

IT-OrgIT-App.sys

IT-HW/SW

Ex.

HW

ERM

Special term model

Data View

Subprocess Layer 1

OrgUnit

Event

Function

FBSpecial Term

IT-App.

Event

Process View

Subprocess Layer 2-n

Business Process Layer 0

OrganisationalView

Organization Chart

View Integration

SalesSales

ContentContent

Programming and Scheduling

Packaging and Delivery

Strategic Management

Marketing Management Process Management

Facilities People Technology Finance


Water Corporation

BusinessManagement

MarketDevelopment

EnviromentalManagement

ProcessManagement

Knowledge Management

Waste and Surplus Water

FinanceHR

ManagementInformation

ManagementSupportServices

Billing

CustomerServices

Land Development Management

Manage Assets

Clean Water


Portfolio StrategicLeadership Reporting

Der

rele

vant

e M

arkt

Informations-verarbeitung

Informations-verarbeitungIT Informations-

verarbeitung


MaterialManagement


Informations-verarbeitungFinancial

AccountingInformations-verarbeitung

Informations-verarbeitungLaw

Human Resource Management

Der bearbeitete M

arkt

Customer

!"§===Owner

!"§===User

User

InvestorenMarket

Owner

CIO

AssetManagement Controlling

Process Management

Marketing

Project study Planning

Consulting

!"§===Owner

!"§===User

User

Investoren

Market

Owner

Customer

RessourceManage-

ment

TechnicalServices

CommercialServices

PersonalServicesSales

Enterprise-Framework: Facility Management


Web-based Framework

Access to theunderlying

process models


Strategy andPlanning

OperationalManagement

MarketMarket MarketMarket

RessourceManagement

Reporting

CustomerCustomerCustomerCustomer

Acquisition and Provision

Service

13 14

1 2

MarketDevelopment

11

HumanResource

Management

12

9

10

Planning and Design Production Infrastructure7

Product and Innovation Management3Management of Customer Segments4Price Management5Enterprise Communication6

Working Production Infrastructure8

Example: German Telecom


Level 1 14 Core Processes

Level 2CP 3 : Produkt and Innovation Management

3.1 3.2 3.3 3.4 3.5 3.6

TEMPO-Prozess Modell

Level 3Produktideen

sind zugenerieren

Produktideeist

gefunden

Produktideensind

dokumentiert

Produktideensind wirtschaft-

lich grobeingeschätzt

Informationensammeln undanalysieren

Produktideendokumentieren

Produktideenstrukturieren

XOR

XOR

Produktideeist nichtableitbar

Produktideenmethodischgenerieren

Produktideenbewerten

FB

Vorabinformationenzur Produktidee

FB

GrobeinschätzungProduktidee

FB

Auflistung derProduktideen

PM im KGF

IV-System

KSC F&E

FB

Informationen fürProduktideen

FB

Produktidee

FB

Methoden zurIdeenfindung

FB

Produktidee

FB

KurzbeschreibungProduktidee

FB

KurzbeschreibungProduktidee

FB

Produktidee

D

B

3.1.1

3.1.4

3.1.3

3.1.2

German Telecom: Modelling Levels


Improving Processes

10

Start

E1

E2

E3

E4

E5

Minute(s)

F5

20 Minute(s)

F4

F3

F2

F1

F6

E6

Initial process

Start

E1

F1

F6

E6

E3

E4

E5

10 Minute(s)

F5

20 Minute(s)

F4

F3

Delete F2

E1

F6

E6

Start

E1

F1

E3

E4

E5

10 Minute(s)

F5

20 Minute(s)

F4

F3

Outsource F1

E1

E3

E4

20 Minute(s)

F4

F3

F6

E6

Start

E1

F1

E5

10 Minute(s)

F5

Switch F3 & F4

F7

E7

E1

E3

E4

20 Minute(n)

F4

F3

F6

E6

Start

E1

F1

E5

10 Minute(n)

F5

Expand F7


Process Models on the Web


BPM Tools - Gartner Study 2002

Source Gartner Research, June 2002


Tool Requirements

• Support for multiple view on an enterprise• standard and integrated modelling techniques• configurable• intuitive• repository• Web Export, Web Design• Reporting, Simulation, ABC, Balanced Scorecard,

Knowledge Management• Reference models• Interfaces to workflow, CASE tools• XML-based export/import


Reference Model

Reference model?


Content: Reference Models (here TOM)

Warehouse/Stores

PurchaseRequisition

Purchaserequisitionreleased

for contractrelease order

Inbounddeliveryfor POcreated

Servicesare to

be entered

Serviceis accepted

Serviceentrysheet

is transmitted

Paymentmust

be effected

Purchasing

InvoiceVerification

GoodsReceipt

Requirementfor material/

externalservicesexists

Requisitionreleased

for schedulingagreement

schedule/SA release

Purchaserequisitionreleased

for purchaseorder

Purchaseorder

created

Goodsreceived

Goodsreceiptposted

Materialis released

Invoicereceived

TO itemconfirmed

withoutdifferences

ServiceEntrySheet

Transferorderitem

is confirmed

• purpose: benefits realisation• facilitate the system upgrade• basis for end-user training• analyse the coverage of the

Enterprise System

• use color coding

© Michael Rosemann, QUT Brisbane – Leonardo Breakfast Seminar, 26 October 2001

ES coverage

unused ES functionality

add-on solution

ERP Reference Models


+ standardize process documentation+ same problem understanding+ knowledge transfer+ stress shortcomings of current situations+ supports acceptance for the project (unfreezing)+ completeness of to-be-processes can be evaluated + supports certification and audits+ shows potential/limits of reengineering

- Danger of thinking in constraints

Why Process Modelling (As-is)?

Alternative LösungenIQm-Corporate Facility Network

sind zu erarbeiten

Alternative LösungenIQm-Flächenmanagement

sind zu erarbeiten

Alternative LösungenIQm-Administrationsmanagement

sind zu erarbeiten

Alternative LösungenIQm-Property-Value-Management

sind zu erarbeiten

Alternative LösungenIQm-Betriebsmanagement

sind zu erarbeiten

Alternative LösungenIQm-Störungsmanagement

sind zu erarbeiten

Alternative LösungenIQm-Sicherheitsmanagement

sind zu erarbeiten

Alternative LösungenIQm-Energie- und

Verbrauchsmanagementsind zu erarbeiten

Alternative LösungenIQm-Kommunikationsmanagement

sind zu erarbeiten

Alternative LösungenIQm-Personal-Services-Mangement

sind zu erarbeiten

Alternative LösungenIQm-Baumanagement

sind zu erarbeiten

Zu erarbeitendealternative Lösungen

koordinieren


erarbeiten


erarbeiten


erarbeiten


erarbeiten


erarbeiten


erarbeiten


erarbeiten


Verbrauchsmanagementerarbeiten


erarbeiten


erarbeiten


erarbeiten


liegen vor


liegen vor


liegen vor


liegen vor


liegen vor


liegen vor


liegen vor

Grobkonzeptekonsolidieren


liegen vor


Verbrauchsmanagementliegen vor


liegen vor


liegen vor

Grobkonzept-Input

Grobkonzept

AlternativeVertragsmodellesind zu entwerfen

Vertragsmodellesind entworfen

Vertragsmodelleentwerfen

Beratungdurchführen

Alternative LösungIQm-Corporate Facility Network

Alternative LösungIQm-Flächenmanagement

Alternative LösungIQm-Administrationsmanagement

Alternative LösungIQm-Property-Value-Management

Alternative LösungIQm-Betriebsmanagement

Alternative LösungIQm-Störungsmanagement

Alternative LösungIQm-Sicherheitsmanagement

Alternative LösungIQm-Energie- und

Verbrauchsmanagement

Alternative LösungIQm-Kommunikationsmanagement

Alternative LösungIQm-Baumanagement

Alternative LösungIQm-Personal-Services-Mangement Standardmustervertrag

Alternative LösungIQm-Corporate Facility Network

Alternative LösungIQm-Flächenmanagement

Alternative LösungIQm-Administrationsmanagement

Alternative LösungIQm-Property-Value-Management

Alternative LösungIQm-Betriebsmanagement

Alternative LösungIQm-Störungsmanagement

Alternative LösungIQm-Sicherheitsmanagement

Alternative LösungIQm-Energie- und

Verbrauchsmanagement

Alternative LösungIQm-Kommunikationsmanagement

Alternative LösungIQm-Baumanagement

Alternative LösungIQm-Personal-Services-Mangement

Grobkonzept-Input

Grobkonzept-Input

Grobkonzept-Input

Grobkonzept-Input

Grobkonzept-Input

Grobkonzept-Input

Grobkonzept-Input

Grobkonzept-Input

Grobkonzept-Input

Grobkonzept-Input

Grobkonzept-InputGrobkonzept-

Input

Standardmustervertrag

InternenAuftrag

formulieren

InternerAuftrag

InternerAuftrag

Grobkonzept-Input

Interner Auftragwurde erteilt

Vertriebs-fachkraft

Vertriebs-Koordinator

Konzept-verantwortlicher


Konzept-verantwortlicherVertriebs-

Koordinator

AlternativeLösungen sind

zusammengefaßt

Grobkonzept

Wirtschaftlichkeitdes Auftrages

abschätzen

Controlling-fachkraft

Vertriebs-fachkraft

Kalkulationsfachkraft


Konzept-fakturierung

festlegen

Konzeptkann/soll fakturiert

werden

Konzept kann/sollnicht fakturiert

werden

Kosten desKonzepteskalkulieren

Angebot für Konzeptist zu erstellen

Leistungsbeschreibung

Kalkulationsgrundlagen

Vertriebsfachkraft

Grobkonzept

Vertriebsfachkraft

DTI-Potentialeabgleichen

Kundenbedarfkann/soll mit DTI-Ressourcen

gedeckt werden

Weitere, alternativeLösungsmöglichkeiten

sind zu erarbeiten

Angebot erstellen undVertrag abschließen

Beratungdurchführen

Zu fakturierendesGrobkonzept ist zu

erstellen

Wirtschaftlichkeits-schätzung

Kalkulationsfachkraft

Rechnungswesen

Konzeptkann/soll fakturiert

werden

Angebot erstellen undVertrag abschließen

Zuordnung der Leistungserbringung,

regionale

Auftrag ist nichtwirtschaftlich

Lost BusinessManagement

Beratung istdurchzuführen

Marktpreis

Mindestpreis

Schnittstelle zumSupport!


ResourcePerspective

Process / FunctionPerspective

ObjectPerspective

Collect Examine Archive

Process ImprovementThree Perspectives on a Process


Automating ProcessesPositioning Workflow Management

InternetInternet

Bui

ld

Bui

ld --

Tim

e Ti

me

-- Con

figur

atio

nC

onfig

urat

ion

CContinuousontinuousPProcessrocess

IImprovementmprovement

© Scheer

IV. Processing

III. Workflow

I. Process Optimisation

Business ProcessEngineering

ReferenceModels

II. Process Management

ObjectLibrary

EnterpriseSystem

InternetApplets

Database

Simulation QualityAssurance

ModellingAnalysis

Navigation

Function Modules

Folder

Executive Information Systems

Controlling Monitoring Capacity andTime Control

Call Function Document Flow Call Data


Procedure Model

Define Project Objectives

Identify Modellers

Consolidate Requirements

Select Modelling TechniqueSelect Modelling Tool

Define Modelling ConventionsConfigure Modelling Tool

Process Modelling

Identify Customers


BPM Maturity Level 1

• individual efforts• various and not consolidated approaches re methodology,

tools, techniques• single purpose• simple tool • paper intensive• minimal user involvement• reduced external support (if at all)



• importance of process modelling is recognised• elaborated use of Visio or single license of BPM tool• one main modelling purpose• first attempts re methodology, standards• increased user participation• external support required



• Centre of Excellence establishes standards re methodology, tool usage, techniques, quality assurance

• sophisticated tool (server-based, multipleand distributed users)

• merge of different modelling initiatives• process models on the web substitute existing

documentation• comprehensive user training sessions• external support for new application areas



• Business Process Modelling is a naturalpart of managers’ activities

• established business process lifecycle management• widely accepted methodologies, tool, techniques• Various and integrated modelling purposes• mandatory project component• small centre of excellence• continuous extension and consolidation of purposes• minimal external support


Business Process Modelling Maturity

ModellingMaturity

Institutionalisationof BPM

Centre ofExcellence


The Future: Three-dimensional Process Models

Jerrentrup (2000)


The Future: Runtime -> Buildtime


Final Recommendations

• recognise that processes are the infrastructure for all your initiatives

• process management has to be integrated• process modelling enables process

reengineering, but this is not an automatism• avoid process modelling as ‘L’Art pour L’Art’• process management and process modelling

are not rocket science

Business Process Modelling

Michael Rosemann

[email protected]

Documents

Business Process Modellingdocs.business.auckland.ac.nz/Doc/CODE-Seminar-Business... · 2010. 10. 12. · Business Process Reengineering „Reengineering is the fundamental rethinking