the evolution of business process management - bptrends bpm wed 9am keynote new... · the evolution...
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The Evolution of BPM Paul Harmon
DCI BPM New Orleans www.bptrends.com 1
© 2005, Business Process Trends www.bptrends.com 1
The Evolution of Business Process Management
Paul Harmon
Executive EditorBusiness Process Trends
© 2005, Business Process Trends www.bptrends.com 2
Process Integration in Nineties
SalesDepartment
ExecutiveManagement
Horizonally Integrated Business Process
That Delivers A Specfic Product to a Targeted Group ofCustomers
StrategyCommittee
The Evolution of BPM Paul Harmon
DCI BPM New Orleans www.bptrends.com 2
© 2005, Business Process Trends www.bptrends.com 3
Today: Horizontal & Vertical Alignment
SalesDepartment
ExecutiveManagement
StrategyCommittee
VerticallyIntegrated
Measures,Managers, and
Resources
Employees & IT Applications andInfrastructure
Horizonally IntegratedProcesses
From Suppliers to Customers
© 2005, Business Process Trends www.bptrends.com 4
Why the Interest in Business Process?
• Make the company more efficient and productive by improving existing processes
• Allow the company to shift goals or get into new businesses by providing the company with the ability to quickly and efficiently create new business processes
• Keep focused on customers• Automate where reasonable
The Evolution of BPM Paul Harmon
DCI BPM New Orleans www.bptrends.com 3
© 2005, Business Process Trends www.bptrends.com 5
Business Process Change Initiatives
ValueChain
CustomersMarkets
SuppliersResources
Application &Databases
Employees
Value ChainManager
Senior Executive
Employees Employees Employees Employees Employees
Application &Databases
Application &Databases
Application &Databases
Application &Databases
Application &Databases
Process Manager Process Manager Process Manager
AlignedHR System
AlignedIT Architecture
Process ComponentsERP System
Activity BasedCost Accounting
BAM & DataWarehouse
Business RulesMang. System
Financial System
BusinessProcess
Architecture
Near Real-TimeMonitoring andControl System
All Processes Managed by Enterprise BPM Systems
ManagementDashboard
ManagementDashboard
Processes Modeled and Optimized
ProcessManagement
System
© 2005, Business Process Trends www.bptrends.com 6
We Have Lots of Technologies to Use
Business RuleManagement Systems
SEI's CMM for IT
1980s 1990's 2000s
Management
BusinessProcess
Redesign
InformationTechnology
Workflow
Software Modeling Tools and Methodologies (CASE, UML, MDA)
QualityControl Total Quality
Management
Porter's ValueChains
Business ProcessReengineering
Rummler-BrachePerformance Improvement
PerformanceImprovement
Activity BasedCosting
Six Sigma
Lean
BPMEAI
Packaged Software(ERP, CRM)
BalancedScorecard
SCOR VCOR
BPO
The Evolution of BPM Paul Harmon
DCI BPM New Orleans www.bptrends.com 4
© 2005, Business Process Trends www.bptrends.com 7
The BPTrends Pyramid
StrategyLevel
Business ProcessLevelSpecific Process
Value Chain
Plans & Goals
ImplementationLevel
Process Automatedby IT Systems
Process Performedby Employees
Physical Plant and Hardware Used.
ProcessManagement and
Measurement
© 2005, Business Process Trends www.bptrends.com 8
Some of the Most Important Trends
• 1. BP Management System• 2. BP Architecture• 3. BP Process Analysis & Redesign Approach• 4. Business Rules Management System• 5. BP Automation (BPMS)• 6. IT Components Aligned with BP• 7. BP-based Enterprise Monitoring System• 8. HR Support Aligned with BP• 9. Significant BP Outsourcing
The Evolution of BPM Paul Harmon
DCI BPM New Orleans www.bptrends.com 5
© 2005, Business Process Trends www.bptrends.com 9
An Aside on the Meaning of Process
Value Chain
Business Process Business Process Business Process
ProcessProcess Process
Sub-Process Sub-ProcessSub-Process
Sub-Sub-Process
Activity Activity
Sub-Sub-Process
ArchitectureSCOR Framework
Process Redesign ProjectsBusiness Rule Projects
Six Sigma ProjectsIT Automation Projects
SAP Process Models
© 2005, Business Process Trends www.bptrends.com 10
1. BP Management System
• Senior Management’s Vision: The Process-Centric Company
• Senior Management’s Goal: Coordinate and Prioritize all the diverse process initiatives
• Train Managers to Manage Processes• Align Manager’s Incentives with Processes• A BP Redesign Group• Teams Trained to Undertake Constant Process
Improvement (6 Sigma)
The Evolution of BPM Paul Harmon
DCI BPM New Orleans www.bptrends.com 6
© 2005, Business Process Trends www.bptrends.com 11
Coordinating the Management of ProcessesCEO
Executive Committee
ProcessManagementTeam
DeliveryDepartment
ManufacturingDepartment
SalesDepartment
Customer
Process ArchitectureCommittee
Sales Supervisor Manf.Supervisor
DeliverySupervisor
Widget Value Chain
SalesProcess
DeliveryProcess
ManufacturingProcess
VPDelivery
VPManufacturing
VPSales
SVP WidgetProcess
WidgetProcess
© 2005, Business Process Trends www.bptrends.com 12
2. BP Architecture
• The key tool for process management• A high-level overview of the value chains and
key processes that make up the organization• An alignment of strategic goals, value chains
and key processes• A clear-cut way to monitor the performance of
the value chains and processes (KPIs)
• A BP Architecture is NOT an IT EA Architecture
The Evolution of BPM Paul Harmon
DCI BPM New Orleans www.bptrends.com 7
© 2005, Business Process Trends www.bptrends.com 13
Too Many Independent Hierarchies
An Aligned Hierarchyof Business Policies/
Rules
An Aligned Hierarchyof Process Measures
An Aligned Hierarchy ofJob Responsibilities
An Aligned Hierarchyof Organization Goals
© 2005, Business Process Trends www.bptrends.com 14
We Need to Integrate Our Hierarchies
An Aligned Hierarchy ofBusiness Policies/Rules
An Aligned Hierarchy ofProcess Measures
An Aligned Hierarchy ofJob Responsibilities
An Aligned Hierarchy ofOrganization Goals
The Evolution of BPM Paul Harmon
DCI BPM New Orleans www.bptrends.com 8
© 2005, Business Process Trends www.bptrends.com 15
BP Operation Reference Frameworks
• A OR Framework is a template for a BP Architecture
• The Supply Chain Council’s SCOR Framework
• The TeleManagement Forum’s eTOM/NGOSS Framework
• Hewlett Packard’s Framework Suite• The VCOR Initiative
© 2005, Business Process Trends www.bptrends.com 16
SCOR MODEL: Level 1
SupplyChain
DeliverMakeSource
Plan
Return
The Evolution of BPM Paul Harmon
DCI BPM New Orleans www.bptrends.com 9
© 2005, Business Process Trends www.bptrends.com 17
The Level 1 SCOR Notation
S1 M1 D1 S1
S1 D1 S1M1 D1
Key OtherRM Suppliers
EuropeanRM Supplier
RMSuppliers ALPHA
AlphaRegional
WarehouseCustomer
DR1 SR1 DR1 SR1
SR3DR3
P1
P2
P3
P4
P1
P2
P3
P4
P1
P2 P4
S2 M2
DR1
D2
SR1
S2
© 2005, Business Process Trends www.bptrends.com 18
SCOR’s Level 1 ScorecardPerformance
Attribute Performance Attribute Definition Level 1 Metric
Supply Chain DeliveryReliability
The performance of the supply chain indelivering: the correct product, to the correctplace, at the correct time, in the correctcondition and packaging, in the correctquantity, with the correct documentation, tothe correct customer.
Delivery Performance
Fill Rates
Perfect Order Fulfillment
Supply ChainResponsiveness
The velocity at which a supply chain providesproducts to the customer. Order Fulfillment Lead Times
Supply ChainFlexibility
The agility of a supply chain in responding tomarketplace changes to gain or maintaincompetitive advantage.
Supply Chain Response Time
Production Flexibility
Supply Chain Costs The costs associated with operating thesupply chain.
Cost of Goods Sold
Total Supply Chain ManagementCosts
Value-Added Productivity
Warranty / Returns ProcessingCosts
Supply Chain AssetManagementEfficiency
The effectiveness of an organization inmanaging assets to support demandsatisfaction. This includes the managementof all assets: fixed and working capital.
Cash-to-Cash Cycle Time
Inventory Days of Supply
Asset Turns
Cus
tom
er F
acin
g A
ttrib
utes
Inte
rnal
Fac
ing
Attr
ibut
es
The Evolution of BPM Paul Harmon
DCI BPM New Orleans www.bptrends.com 10
© 2005, Business Process Trends www.bptrends.com 19
SCOR Benchmarks Provide Instant ROI
50%
$30M Revenue
$30M Indirect Cost
35 days
97 days
0%
63%
Supply Chain SCORcard Industry Benchmarks
Overview Metrics SCOR Level 1 Metrics Actual Parity Advantage Superior Value from Improvements
Delivery Performanceto Commit Date 85% 90% 95%
Fill Rates 94% 96% 98%
EXTE
RN
AL
Supply ChainReliability
Perfect OrderFulfillment 80% 85% 90%
Order FulfillmentLead Times 7 days 5 days 3 days
Flexibility
Responsiveness
Production Flexibility 30 days 25 days 20 days
Total SCMManagement Cost 19% 13% 8% 3%
INTE
RN
AL
Cost Warranty Cost NA NA NA NA NA
Value Added EmployeeProductivity NA $156K $306K $460K NA
Inventory Days ofSupply 119 days 55 days 38 days 22 days NA
Assets Cash-to-Cash CycleTime 196 days 80 days 46 days 28 days
Net Asset Turns(Working Capital) 2.2 turns 8 turns 12 turns 19 turns NA
Supply ChainResponse Time 82 days 55 days 13 days
45 days
$7 M Capital Charge
Key enabler to cost andasset improvements
$30M Revenue
© 2005, Business Process Trends www.bptrends.com 20
3. BP Process Analysis & Redesign
• New processes need to be designed• Inefficient or ineffective processes need to
be redesigned• Processes that work need to be improved
• The entire effort needs to be coordinated with methodologies, software tools, and a repository
The Evolution of BPM Paul Harmon
DCI BPM New Orleans www.bptrends.com 11
© 2005, Business Process Trends www.bptrends.com 21
The Types of BP Methodologies
Strategyand Goals
SpecificActivity
StrategyLevel
BusinessProcess
LevelBusiness Process
ImplementationLevel
Physical Plant and Hardware Used.
BP Architecture
BP Analysis& Redesign
OrganizationPerformance
Management andMeasurement Issues
Involved in theImplementation of BPM
solutions.
Mangement andMeasurement IssuesInvolved Establishing
Strategy and Goals
Mangement andMeasurement Issues
Involved inExecuting Actual
Business Processesand Activities
Human Resource Architecture IT Architecture
DataArchitecture
ApplicationArchitecture
NetworkArchitecture
ApplicationDesigns
and Code
DatabaseDesigns and
DataManagement
Systems
TechnologyArchitecture
Hardware Architecture
JobDesign
ActivityMeasurement
Plan
ActivityManagement
Plan
Job Aids,Training
Programs,Knowledge
ManagementSystem
Activity/PerformanceMonitoring
System
Plans, Budgets,Hiring, Resource
Allocation,Feedback,
Consequences
Human-ITInterface
Model
Screensand
Reports
LogicalLevel
PhysicalLevel
IT Focused BPChange
Methodologies
NarrowFocused BP
ChangeMethodologies
Broad BasedBP Change
Methodologies
© 2005, Business Process Trends www.bptrends.com 22
BP Methodologies• Broad BP Change Methodologies
– Process Renewal Methodology (PRG)– Rummler Methodology (PDL)– xBML Methodology (Business Genetics)
• More Focused Process Change Methodologies– Balanced Scorecard– Six Sigma DMAIC– Proteus Business Rules Methodology (BR Solutions)– ARIS Methodology (IDS Scheer)
• IT Automation Methodologies– UREP Methodology (Rational/IBM)– IDEF Methodology– Martin Ould’s RIVA Methodology
The Evolution of BPM Paul Harmon
DCI BPM New Orleans www.bptrends.com 12
© 2005, Business Process Trends www.bptrends.com 23
Six Sigma and BPM 3. Analyze 4. Improve 5. Control2. Measure
ImplementMeasurement
Document andMaintain
PlanProject
IdentifyMeasures Analyze Data
1. Define
1. Define project2. Identify customerrequirements3. Documentprocess4. Set goal
1. Identify Measures2. Define measures3. Develop & testdata collectionmethods4. Define baselinemeasures
1. Analyze date2. Explore possiblecauses and testhypothesises3. Identify causes
1. Select a soluton2. Pilot test solution3. Implement full scalesolution
1. Document andkeep score of results
1-2 wks.
1-2 wks.
2 wks.
4-8 wks
ongoing
-1-2-3 +1 +2 +368.26%95.46%99.73%
0.13%
0.13%
mean
34.13%
13.06%2.14%
© 2005, Business Process Trends www.bptrends.com 24
An Aside: BPM Software Product Space
BPM SuitesModeling Capability
+ BPM Engine
BPMApplications
Modeling Capability+ BPM Engine
+ Application Components
BPLanguages
EAI Tools
ProcessSimulation
Tools
BI and Data WarehouseProducts
UniversalBP Repository
Database capable ofstoring information
from all the BP tools.
OrganizationModeling Tools
Business ProcessArchitecture Tools
Packaged/EnterpriseApplication
Suites
StatisticsTools
GraphicsTools
Tool for creating, storingand using business rules.
Business RuleManagement Tools
BPModeling
ToolsModeling Capability
+ Repository
Modeling Capability +Ability to Monitor Runtime Process+
Dashboard Capability
BPMonitoring
Tools
XML DSLs andBPEL, BPML
Software DevelopmentSuites
Application Servers
WorkflowTools
The Evolution of BPM Paul Harmon
DCI BPM New Orleans www.bptrends.com 13
© 2005, Business Process Trends www.bptrends.com 25
BP Architecture, Modeling & Simulation Tools
BPM SuitesModeling Capability
+ BPM Engine
BPMApplications
Modeling Capability+ BPM Engine
+ Application Components
BPLanguages
EAI Tools
ProcessSimulation
Tools
BI and Data WarehouseProducts
UniversalBP Repository
Database capable ofstoring information
from all the BP tools.
OrganizationModeling Tools
Business ProcessArchitecture Tools
Packaged/EnterpriseApplication
Suites
StatisticsTools
GraphicsTools
Tool for creating, storingand using business rules.
Business RuleManagement Tools
BPModeling
ToolsModeling Capability
+ Repository
Modeling Capability +Ability to Monitor Runtime Process+
Dashboard Capability
BPMonitoring
Tools
XML DSLs andBPEL, BPML
Software DevelopmentSuites
Application Servers
WorkflowTools
© 2005, Business Process Trends www.bptrends.com 26
Business Process Modeling Tools
• Include architecture, process modeling and simulation capabilities
• Are holding their own against BPM Suites that also include modeling capabilities
• Are popular with managers and redesign teams
The Evolution of BPM Paul Harmon
DCI BPM New Orleans www.bptrends.com 14
© 2005, Business Process Trends www.bptrends.com 27
Some BP Architecture, Modeling & Simulation Tools
• CACI’s SIMPROCESS• Holocentric’s Holocentric• IDS Scheer’s ARIS• iGrafx’s iGrafx Process• MEGA International’s MEGA• Mi Services’ Mi SCOR• Popkin Software’s System Architect• Proforma’s ProVision• ProModel’s Process Simulator• xBPM Innovations’ xBPL 2005 Modeling Suite
© 2005, Business Process Trends www.bptrends.com 28
4. Business Rule Management Tools
BPM SuitesModeling Capability
+ BPM Engine
BPMApplications
Modeling Capability+ BPM Engine
+ Application Components
BPLanguages
EAI Tools
ProcessSimulation
Tools
BI and Data WarehouseProducts
UniversalBP Repository
Database capable ofstoring information
from all the BP tools.
OrganizationModeling Tools
Business ProcessArchitecture Tools
Packaged/EnterpriseApplication
Suites
StatisticsTools
GraphicsTools
Tool for creating, storingand using business rules.
Business RuleManagement Tools
BPModeling
ToolsModeling Capability
+ Repository
Modeling Capability +Ability to Monitor Runtime Process+
Dashboard Capability
BPMonitoring
Tools
XML DSLs andBPEL, BPML
Software DevelopmentSuites
Application Servers
WorkflowTools
The Evolution of BPM Paul Harmon
DCI BPM New Orleans www.bptrends.com 15
© 2005, Business Process Trends www.bptrends.com 29
Business Rules Management
• Goal: Abstracting business rules from policy manuals, software, and from training programs and saving them in a repository so they can be systematically managed
• The effort needs to be aligned with business process efforts
• OMG Business Rule Standards• Business Rules Community
– www.brcommunity.com• Business Rule Management Vendors
© 2005, Business Process Trends www.bptrends.com 30
5. BP Automation: BPM Systems
• The idea of using software to manage processes in something close to real time
• New and confusing• Most companies are just exploring the
idea and it will evolve rapidly over the course of the next 2-3 years
• There are no clear winners yet: Most companies are yet sure how they’ll use this technology
The Evolution of BPM Paul Harmon
DCI BPM New Orleans www.bptrends.com 16
© 2005, Business Process Trends www.bptrends.com 31
What Is a BPM Suite?
A B EDC
Software Tool That Displays a Graphical View of a ProcessLogical
Description ofthe Process
PhysicalImplementationof the Process
SoftwareComponent
B
SoftwareComponent
C
EnterpriseApplicationModule D
EnterpriseApplicationModule E
Software Tool (Engine)That Manages Links
Between Diagram andImpelementation
BPMSEngine
© 2005, Business Process Trends www.bptrends.com 32
The Key is Controlling the Business Process
A B E
D
C
Software Tool That Displays a Graphical View of a Process
Logical Description of the Process
PhysicalImplementationof the Process
SoftwareComponent
C
SoftwareComponent
B
EnterpriseApplicationModule E
Software Tool(Engine) That
Manages LinksBetween Diagram
and Impelementation
BPMS Engine
EnterpriseApplicationModule D
UserInterface
Business AnalystInterface
The Evolution of BPM Paul Harmon
DCI BPM New Orleans www.bptrends.com 17
© 2005, Business Process Trends www.bptrends.com 33
BPM Suites
BPM SuitesModeling Capability
+ BPM Engine
BPMApplications
Modeling Capability+ BPM Engine
+ Application Components
BPLanguages
EAI Tools
ProcessSimulation
Tools
BI and Data WarehouseProducts
UniversalBP Repository
Database capable ofstoring information
from all the BP tools.
OrganizationModeling Tools
Business ProcessArchitecture Tools
Packaged/EnterpriseApplication
Suites
StatisticsTools
GraphicsTools
Tool for creating, storingand using business rules.
Business RuleManagement Tools
BPModeling
ToolsModeling Capability
+ Repository
Modeling Capability +Ability to Monitor Runtime Process+
Dashboard Capability
BPMonitoring
Tools
XML DSLs andBPEL, BPML
Software DevelopmentSuites
Application Servers
WorkflowTools
© 2005, Business Process Trends www.bptrends.com 34
A BPM Continuum
Languages BPMServers Tools/Utilities BPM
SuitesBPM Suites
+FrameworksComplete BPMApplications
Vendors whosell languages,
like BPEL orJava
Vendors whosell BPM server
platforms
Vendors who sellstand alone tools
or utilities.
Vendors whosell BPM
Suites
Vendors whosell BPM
Suites withframeworks or
templates
Vendors whosell completeBPM systems
or applications.
Languages provide the maximumflexibility and require the most workto get to a complete BPM system.These products are invariably usedby IT developers
Applications provide the minimumflexibility and require the lest workto get to a complete BPM system.
These products can be used bybusiness users.
BP Modeling Vendors
BAM MonitoringVendors
Business Rule Mang.System Vendors
The Evolution of BPM Paul Harmon
DCI BPM New Orleans www.bptrends.com 18
© 2005, Business Process Trends www.bptrends.com 35
A Layer Diagram of the BPM Space
Language/PlatformJ2EE
BPM Server(Engines)
BPM Suite
BPM System or Applications
BP KnowledgeFrameworks
BPMS Application
Rules forSpecific
Processes
Models forSpecific
Processes
SoftwareComponents or
Modules
User Interfacesto Support
SpecificProcesses
An application that implements aprocess that can be examinedand changed dynamically.
ProcessModeling Tool
BPM Engine(Software)
XMLBPEL
BPM Engine(employees)
Business RuleEngine
ProcessMonitoring
Tools (BAM)
SoftwareRequirements
Tool
User InterfaceTools
BPM SUITE
BPM Tools/Utilities
ProcessMeasures for
SpecificProcesses
Eclipse
© 2005, Business Process Trends www.bptrends.com 36
Some BPM Suite Vendors• Appian’s Appian Process Engine• Ascentn’s AgilePoint BPMS• B2B Internet’s XicoBPM• Chordiant’s Straight Through Service Processing• CommerceQuest’s TRAXION Enterprise BPM Suite• Eg Solutions’ eg Work Manager• Filenet’s Filenet Business Process Manager• PegaSystems’ PegaRULES Process Commander• TIBCO’s TIBCO Staffware Process Suite • Ultimus’ Ultimus BPM Suite• IBM’s WebSphere Business Integration suite
The Evolution of BPM Paul Harmon
DCI BPM New Orleans www.bptrends.com 19
© 2005, Business Process Trends www.bptrends.com 37
BPEL and BPMN
• Being embraced rather than understood• BPEL is currently only a variation on EAI• Maybe a BPEL+ can support both
employee and IT activities, but that is in the future
• BPMN is a nice notation that hasn’t got much traction yet; ultimately it’s an extension of UML’s Activity Diagrams
© 2005, Business Process Trends www.bptrends.com 38
Petri Nets and Pi Calculus
• There are groups meeting to sort out the underlying basis for process automation
• There will be meetings on this in 2005• They will probably get passed up by the
vendors and user companies who will select more pragmatic solutions
The Evolution of BPM Paul Harmon
DCI BPM New Orleans www.bptrends.com 20
© 2005, Business Process Trends www.bptrends.com 39
6. IT Components Aligned with BP
• Ultimately BPM relies on software components
• They will need to be developed or changed as processes change
• Thus, BPM needs a clean link to Software Development technologies
• UML, MDA, and components
© 2005, Business Process Trends www.bptrends.com 40
The OMG’s Model Driven Architecture
Code
Computation-Independent Model
(CIM)
Platform-SpecificModel(PSM)
Platform-Independent Model
(PIM)
Created by BusinessAnalysts to Describe
Business
Created by Architect/Designer to Describe
Archtiecture
Created by Developer or Testerto Implement Solution
CIM >> PIMMapping
PIM >> PSMMapping
PSM >> CodeMapping
The Evolution of BPM Paul Harmon
DCI BPM New Orleans www.bptrends.com 21
© 2005, Business Process Trends www.bptrends.com 41
The OMG’s BP Metamodels
UML 2.0 VariousBP ToolsBPMN
J2EE VariousBP ToolsBPEL
Business Process Definition MetamodelOntologyMetamodel
Business RulesMetamodel
XMI
MOFMeta Object
Facility
© 2005, Business Process Trends www.bptrends.com 42
A BP Repository and MDA
BPM Suites
Modeling Capability+ BPM Engine
BPMApplications
Modeling Capability+ BPM Engine+ ApplicationComponents
BPLanguages
EAI Tools
WorkflowTools
ProcessSimulation
Tools
Application Servers
BI and Data WarehouseProducts
UniversalBP
RepositoryDatabase capable ofstoring information
from all the BP tools.
OrganizationModeling Tools
Business ProcessArchitecture Tools
Packaged/EnterpriseApplication
Suites
StatisticsTools
GraphicsTools
Can Create Diagrams.No Repository.
Tool for creating, storingand using business rules.
Business RuleManagement Tools
BPModeling
ToolsModeling Capability
+ Repository
Modeling Capability +Ability to Monitor Runtime Process+
Dashboard Capability
BPMonitoring
Tools
Used to Support 6 SigmaProjects
XML DSLs andBPEL, BPML
Software DevelopmentSuites
• Adaptive• IBM• BEA• Oracle
The Evolution of BPM Paul Harmon
DCI BPM New Orleans www.bptrends.com 22
© 2005, Business Process Trends www.bptrends.com 43
7. BP-Based Enterprise Monitoring Systems
BPM SuitesModeling Capability
+ BPM Engine
BPMApplications
Modeling Capability+ BPM Engine
+ Application Components
BPLanguages
EAI Tools
ProcessSimulation
Tools
BI and Data WarehouseProducts
UniversalBP Repository
Database capable ofstoring information
from all the BP tools.
OrganizationModeling Tools
Business ProcessArchitecture Tools
Packaged/EnterpriseApplication
Suites
StatisticsTools
GraphicsTools
Tool for creating, storingand using business rules.
Business RuleManagement Tools
BPModeling
ToolsModeling Capability
+ Repository
Modeling Capability +Ability to Monitor Runtime Process+
Dashboard Capability
BPMonitoring
Tools
XML DSLs andBPEL, BPML
Software DevelopmentSuites
Application Servers
WorkflowTools
© 2005, Business Process Trends www.bptrends.com 44
BP-Based Enterprise Monitoring Systems
• Everyone seems to think its part of BPM Systems
• It’s important to discriminate between monitoring a specific process and providing information for senior managers
• Business Performance Management, BAM, BI and Data Warehouses– The BPM Forum– IBM/OASIS Events Standard
The Evolution of BPM Paul Harmon
DCI BPM New Orleans www.bptrends.com 23
© 2005, Business Process Trends www.bptrends.com 45
Process Monitoring vs. Value Chain MonitoringCEO
VP Line Mang
Manager
Staff Manager
ProcessSupervisor
Databasefor Appl.
DataOtherDatabases
DataWarehouse
BIApplication
Business Process orActivity - Execution
Monitor & ControlPlan & Staff
1
Application thatautomates part of
activity
4GL SystemCreates Inventory
Report
2
2
Strategy Level
Process Level
Activity andImplementation
Levels
Filtered &SummarizedInformation
Value ChainLevel
4
4
3
3
© 2005, Business Process Trends www.bptrends.com 46
BPM Applications
BPM SuitesModeling Capability
+ BPM Engine
BPMApplications
Modeling Capability+ BPM Engine
+ Application Components
BPLanguages
EAI Tools
ProcessSimulation
Tools
BI and Data WarehouseProducts
UniversalBP Repository
Database capable ofstoring information
from all the BP tools.
OrganizationModeling Tools
Business ProcessArchitecture Tools
Packaged/EnterpriseApplication
Suites
StatisticsTools
GraphicsTools
Tool for creating, storingand using business rules.
Business RuleManagement Tools
BPModeling
ToolsModeling Capability
+ Repository
Modeling Capability +Ability to Monitor Runtime Process+
Dashboard Capability
BPMonitoring
Tools
XML DSLs andBPEL, BPML
Software DevelopmentSuites
Application Servers
WorkflowTools
The Evolution of BPM Paul Harmon
DCI BPM New Orleans www.bptrends.com 24
© 2005, Business Process Trends www.bptrends.com 47
Packaged Applications vs. BPM Apps
• Traditional Packaged Applications are difficult to understand or to change
• BPM applications will incorporate Process Models and BPM Enginbe based to make them easier to manage and change
• Packaged application vendors will attempt to transition to BPM (SAP’s NetWeaver)
• BPM Suite vendors will evolve into BPM application vendors
• This is a very important part of BPM that has hardly begun
© 2005, Business Process Trends www.bptrends.com 48
8. HR Support Aligned with BP
• BPM Suites will place more importance on analyzing employee activities and aligning them with business processes
• Aligning Knowledge Management with processes
• Aligning employee incentives and feedback with processes
• Aligning training with processes• www.ispi.org
The Evolution of BPM Paul Harmon
DCI BPM New Orleans www.bptrends.com 25
© 2005, Business Process Trends www.bptrends.com 49
The ISPI Human Performance Model
ExpenseReports
Updated ExpenseReport Ledger Consequences
Feedback
Activity Support
4. Consequences
Feedback
Activity:Enter Expense
Reports
Process Defined
activitymeasures
Activity Specifications
Skill, Knowledge & Capability
*
© 2005, Business Process Trends www.bptrends.com 50
9. Business Process Outsourcing
• We are going to create more decentralized organizations, using outsourcing
• The key is managing BPO is to have a good BP architecture and to manage with process-oriented techniques
• BPO vendors will become major advocates and consumers of BPM
The Evolution of BPM Paul Harmon
DCI BPM New Orleans www.bptrends.com 26
© 2005, Business Process Trends www.bptrends.com 51
Some of the Most Important Trends
• 1. BP Management System• 2. BP Architecture• 3. BP Process Analysis & Redesign Approach• 4. Business Rules Management System• 5. BP Automation (BPMS)• 6. IT Components Aligned with BP• 7. BP-based Enterprise Monitoring System• 8. HR Support Aligned with BP• 9. Significant BP Outsourcing
© 2005, Business Process Trends www.bptrends.com 52
SUMMARY
• The challenge is the management of business process change
• We have too many technologies and not enough focus on why we should do BPM in the first place
• We manage processes to improve corporate performance
• Companies need to set goals, develop a strategy, and then create a BP organization that can organize and coordinate their BPM resources
The Evolution of BPM Paul Harmon
DCI BPM New Orleans www.bptrends.com 27
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