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Introduction to BPM
http://www.youtube.com/watch?v=8Gq2CfHl7fs




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Agenda
 What is BPM?


 BPM Components


 A BPM Example


 BPM Methodologies


 Where do I get more information?
What is BPM?


Business       a person, partnership, or corporation engaged in commerce,
               manufacturing, or a service; profit-seeking enterprise or concern.



               1. a systematic series of actions directed to some end.
Process        2. a continuous action, operation, or series of changes taking
                  place in a definite manner.


                            1. the act or manner of managing; handling,

Management                     direction, or control.
                            2. skill in managing; executive ability.
                            3. the person or persons controlling and directing
                               the affairs of a business, institution.

                                                                        Source: Dictionary.com
BPM Components
  A management approach to continuously improve processes
     and achieve organizational objectives through a set of
               methodologies and technologies.




   Input                                             Output




           People             Process
Input: Multiple Types of Process Input




       Input
People: Process Participants
                                  INTERNAL                        EXTERNAL




   Supplier           Finance                 Marketing           Customer
                      Manager                 Manager

               I




              Financial     Financial   Marketing    Marketing     Partner
               Analyst       Analyst    Specialist   Specialist
Different Types of Processes
Type              Continuous        Ad Hoc
Characteristics   Predictable       Unpredictable
                  Repeatable        Variable
                  Uninterrupted     Spontaneous
Example           Payroll Process   Expense Report

                                              Customer Meeting
                                              $278.94



                                              Conference
                                              $619.45
Different Types of Processes
Type              Simple                Complex
Characteristics   Minimal Steps         Multiple Steps
                  Few Participants      Many Participants
                  No or Minimal Rules   Complex Rules
                  Single System         Multiple Systems
Example           Vacation Request      Deduction Management

                                        • If [yes] AND [=<$100], then A
                           Approved     • If [yes] AND [>=$100], then B
                                        • If [no] AND [=<$100], then C
                                        • If [no] AND [>=$100], then D
                           Denied       • If [no] OR [=$0], then E
Different Types of Processes
Type              Short                        Long
Characteristics   Minutes, Hours, Days         Weeks and Months
                  Quick Tasks                  Running Processes
                  Few Dependencies             Multiple Dependencies
Example           New Account Opening          Loan Origination

                           Your account                 Your mortgage loan
                          will be ready in a            is pending approval
                            few minutes                 and should take six
                                                           to eight weeks
Output: Multiple Types of Process Output




      Output
BPM Components
  A management approach to continuously improve processes
     and achieve organizational objectives through a set of
               methodologies and technologies.




   Input                                             Output




           People             Process
BPM IT Request Management Example

Input
BPM IT Request Management Example


People

          Requester   IT Group




                      Assign to
Process   Start
                      IT Group
BPM IT Request Management Example


People

          Requester   IT Group            Manager                 IT Specialist



                                  <$100                             Issue
                                                    Approve                       End
                                                                  Hardware
                      Assign to
Process   Start
                      IT Group
                                                                     Send
                                  >$100   Manager        Denied      Email
                                          Review
BPM IT Request Management Example

Output
BPM IT Request Management Example

Input                                        Output




People

          Requester   IT Group            Manager                 IT Specialist
                                  <$100                              Issue
                                                    Approve                       End
                                                                   Hardware
                      Assign to
Process    Start
                      IT Group
                                          Manager                    Send
                                  >$100   Review         Denied      Email
BPM Methodologies
An approach with principles, procedures, and practices that provide
 guidelines for designing and executing the different components
              within Business Process Management.



                                                        RAD


                                                  MDA

                                                          Agile &
                                                          Scrum
Lean Six Sigma

•   Define the problem
                                             Define
•   Measure & map existing
    process
•   Analyze areas for         Control                      Measure
    improvement
•   Improve the process and
    implement the solution
•   Control, maintain, and
                                   Improve            Analyze
    optimize
International Standards Organization
                            Continuous Improvement of the
                             Quality Management System
Customers                                                             Customers
                                       Management
                                       Responsibility




                        Measurement,
Satisfaction                                             Resource
                         Analysis, &
                                                        Management
                        Improvement




               Output                    Product              Input
                        Product         Realization                   Requirements
IT Infrastructure Library
IT Service Management (ITSM)
•   Improve IT services quality
•   Reduce infrastructure & service
    costs
•   Improve service delivery &
    customer satisfaction
•   Improve productivity
•   Improve resource allocation
•   Improve third party service
    delivery & quality
Capability Maturity Model Integration

                                                                   • Continuous Process
                                               5. Optimized          Improvement

                                                         • Measured and Controlled
                                  4. Managed             • Manage Performance & KPIs

                                       • Proactive Process Standardization
                     3. Defined        • Program Initiatives (COE) for the Organization

                                • Manage Processes like Projects
        2. Repeatable           • Often Reactive

             • Unpredictable & Reactive
1. Initial   • Undefined & Poorly Controlled
RAD
      Rapid Application Development

                     Requirements
                       Planning


             User Design         Construction




                           Cutover
                                     Rapid Application Development (RAD) Model
Model-Driven Architecture (MDA)

•   Open Standards & Vendor-Neutral
•   Separates Business & Application
    Logic from Platform Technology
•   Platform Independent Models
•   Based on Unified Modeling
    Language (UML) & other OMG
    Modeling Standards
•   Compatible with Web Services,
    .NET, CORBA, J2EE, & Others
                                           http://www.omg.org/mda/
Agile Software Development
                         Vision, Goals, Charter, & Funding
                         Release Plan, Estimation, Backlog
                         Iteration Plan, Review, Retrospective

                         Standup Meetings, Acceptance

                         Build, Collaborate, Integrate, Refactor
Scrum Methodology
BPM Methodologies
An approach with principles, procedures, and practices that provide
 guidelines for designing and executing the different components
              within Business Process Management.

                                                  Best Practices
                                                  & Governance



                               A Compelling       Higher Team      Repeatable
                RAD         Methodology Fosters   Performance       Success


          MDA
                                                  Measurable &
                  Agile &                         Controllable
                  Scrum
                                                   Outcomes
1. Visit BPMbasics Learning Center:
   http://www.appian.com/bpmbasics/index.jsp



2. Subscribe to the BPM Newsletter:
   http://www.appian.com/campaigns/alert.jsp




3. Learn more about BPMS:
   http://www.appian.com/bpm-software/overview.jsp



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Introduction to Business Process Management

  • 2. Agenda  What is BPM?  BPM Components  A BPM Example  BPM Methodologies  Where do I get more information?
  • 3. What is BPM? Business a person, partnership, or corporation engaged in commerce, manufacturing, or a service; profit-seeking enterprise or concern. 1. a systematic series of actions directed to some end. Process 2. a continuous action, operation, or series of changes taking place in a definite manner. 1. the act or manner of managing; handling, Management direction, or control. 2. skill in managing; executive ability. 3. the person or persons controlling and directing the affairs of a business, institution. Source: Dictionary.com
  • 4. BPM Components A management approach to continuously improve processes and achieve organizational objectives through a set of methodologies and technologies. Input Output People Process
  • 5. Input: Multiple Types of Process Input Input
  • 6. People: Process Participants INTERNAL EXTERNAL Supplier Finance Marketing Customer Manager Manager I Financial Financial Marketing Marketing Partner Analyst Analyst Specialist Specialist
  • 7. Different Types of Processes Type Continuous Ad Hoc Characteristics Predictable Unpredictable Repeatable Variable Uninterrupted Spontaneous Example Payroll Process Expense Report Customer Meeting $278.94 Conference $619.45
  • 8. Different Types of Processes Type Simple Complex Characteristics Minimal Steps Multiple Steps Few Participants Many Participants No or Minimal Rules Complex Rules Single System Multiple Systems Example Vacation Request Deduction Management • If [yes] AND [=<$100], then A Approved • If [yes] AND [>=$100], then B • If [no] AND [=<$100], then C • If [no] AND [>=$100], then D Denied • If [no] OR [=$0], then E
  • 9. Different Types of Processes Type Short Long Characteristics Minutes, Hours, Days Weeks and Months Quick Tasks Running Processes Few Dependencies Multiple Dependencies Example New Account Opening Loan Origination Your account Your mortgage loan will be ready in a is pending approval few minutes and should take six to eight weeks
  • 10. Output: Multiple Types of Process Output Output
  • 11. BPM Components A management approach to continuously improve processes and achieve organizational objectives through a set of methodologies and technologies. Input Output People Process
  • 12. BPM IT Request Management Example Input
  • 13. BPM IT Request Management Example People Requester IT Group Assign to Process Start IT Group
  • 14. BPM IT Request Management Example People Requester IT Group Manager IT Specialist <$100 Issue Approve End Hardware Assign to Process Start IT Group Send >$100 Manager Denied Email Review
  • 15. BPM IT Request Management Example Output
  • 16. BPM IT Request Management Example Input Output People Requester IT Group Manager IT Specialist <$100 Issue Approve End Hardware Assign to Process Start IT Group Manager Send >$100 Review Denied Email
  • 17. BPM Methodologies An approach with principles, procedures, and practices that provide guidelines for designing and executing the different components within Business Process Management. RAD MDA Agile & Scrum
  • 18. Lean Six Sigma • Define the problem Define • Measure & map existing process • Analyze areas for Control Measure improvement • Improve the process and implement the solution • Control, maintain, and Improve Analyze optimize
  • 19. International Standards Organization Continuous Improvement of the Quality Management System Customers Customers Management Responsibility Measurement, Satisfaction Resource Analysis, & Management Improvement Output Product Input Product Realization Requirements
  • 20. IT Infrastructure Library IT Service Management (ITSM) • Improve IT services quality • Reduce infrastructure & service costs • Improve service delivery & customer satisfaction • Improve productivity • Improve resource allocation • Improve third party service delivery & quality
  • 21. Capability Maturity Model Integration • Continuous Process 5. Optimized Improvement • Measured and Controlled 4. Managed • Manage Performance & KPIs • Proactive Process Standardization 3. Defined • Program Initiatives (COE) for the Organization • Manage Processes like Projects 2. Repeatable • Often Reactive • Unpredictable & Reactive 1. Initial • Undefined & Poorly Controlled
  • 22. RAD Rapid Application Development Requirements Planning User Design Construction Cutover Rapid Application Development (RAD) Model
  • 23. Model-Driven Architecture (MDA) • Open Standards & Vendor-Neutral • Separates Business & Application Logic from Platform Technology • Platform Independent Models • Based on Unified Modeling Language (UML) & other OMG Modeling Standards • Compatible with Web Services, .NET, CORBA, J2EE, & Others http://www.omg.org/mda/
  • 24. Agile Software Development Vision, Goals, Charter, & Funding Release Plan, Estimation, Backlog Iteration Plan, Review, Retrospective Standup Meetings, Acceptance Build, Collaborate, Integrate, Refactor
  • 26. BPM Methodologies An approach with principles, procedures, and practices that provide guidelines for designing and executing the different components within Business Process Management. Best Practices & Governance A Compelling Higher Team Repeatable RAD Methodology Fosters Performance Success MDA Measurable & Agile & Controllable Scrum Outcomes
  • 27. 1. Visit BPMbasics Learning Center: http://www.appian.com/bpmbasics/index.jsp 2. Subscribe to the BPM Newsletter: http://www.appian.com/campaigns/alert.jsp 3. Learn more about BPMS: http://www.appian.com/bpm-software/overview.jsp sponsored by