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B USINESS PROCESS TRENDS
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NEWSLETTER
NEWSLETTER
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Volume 1, No. 1 January 2003

This issue of the Business


Processs Trends newsletter What is Business Process
provides an overview of busi-
ness process change, and con- Change?
siders how we might describe
business processes from
three different perspectives. It Our Goals
also describes the ten commu-
nities or viewpoints that read- This is the first issue of the Business Process Trends newsletter. Thus, it’s appropriate
ers can use to quickly access
information on the BTrends that I provide some sense of the scope of our coverage and lay out my editorial
portal. assumptions. Let’s start with the editorial and publication assumptions. The newsletter
will be published and posted on the BPTrends portal each month, and all issues will
be available FREE of charge to any visitor to the BPTrends portal. Each issue will be
Contents:
8-12 pages in length and will explore one topic of interest to managers involved in
•Our Goals business process change. I will assume little knowledge on the part of the reader
unless I have already written a couple of issues on the topic, in which case I’ll point to
•What We Believe the earlier newsletters, which will be available on the portal. I’ll try to be as objective
• Business Processes as I can, describing the market and the players, primarily based on discussions with
•Organizational Maturity users regarding what works and what doesn't work.
•Phases in Process Change
•Redesign, Improvement and The goals of both the newsletter and the portal are to provide business managers with
Reengineering objective information about business process change that will help them make choices
•Business Process Automation about how best to implement business process change within their own organizations.
We also want to create a community of managers with a common understanding and
•The Management of Business a common language that can be used to describe the problems we face as we move
Processes
toward conceptualizing organizations in terms of processes, improving the processes
•MajorTypes of Business
in our organizations, and developing process management and measurement systems.
Processes
•Business Process Change
What We Believe
Today

We have some strong convictions about business that we will advocate on both the
portal and in this newsletter.

We believe that the best way to understand and improve an organization is by starting
with a clear understanding of the organization's business processes. We believe
that effective business process change must be based on the following foundation:
- An organization-wide effort involving everyone from senior managers to junior
employees
- A comprehensive, enterprise-wide business process architecture,
- Process measures that are aligned with company strategies,
- An ongoing management effort that continually monitors processes and introduces
improvements,
- A common vocabulary that everyone can use to describe and understand business
Paul Harmon process change.
Executive Editor
pharmon@bptrends.com There are many ways to accomplish business process change. We don’t advocate
any specific methodology or technique, as long as it is compatible with the foundation
we just described.

© 2003 Business Process Trends 1


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NEWSLETTER What is Business Process Change?
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I hope you will find Business Process Trends informative departments are, in fact, part of a single process.
and helpful. If you do, please pass it along to your friends
and colleagues. If you don't, please let me know what I can The boxes with rounded corners, shown within the process
do to make it more relevant to your needs and interests. arrow in Figure 1, are sub-processes. Depending on how
the organization is structured, those responsible for
Having stated our editorial goals and defined my point of performing the sub-processes may report to departmental
view, I’ll spend the rest of this first issue laying out the scope managers, to a process manager, or to both. The processes
of the market and identifying important issues in business are initiated by inputs from new product development and
process change, as they appear to me today. from customers, and they ultimately produce outputs that
are consumed by customers.
Business Processes
There are many different perspectives we can use to talk
Most business managers have been thinking about business about organizations and processes. We’ll consider three
process issues since the early Nineties. Some have different perspectives.
wholeheartedly adopted the process approach and now think
of their organizations in terms of processes. Others have 1) We’ll begin from the outside, and consider how one might
used process techniques on specific projects, but have yet classify organizations in terms of how they deal with
to make a company-wide commitment. The move to a processes.
process orientation can be hard. Traditionally, most 2) Next, we’ll consider how a typical organization might work
companies were organized by functional or departmental its way through the phases in a business process change
units and departments often resist a more process-oriented effort. We'll consider three of the phases, redesign,
way of organizing a company’s tasks. automation and management and measurement in more
detail.
Figure 1 illustrates a classic overview of the difference 3) Then we’ll consider the major types of processes that
between a departmental approach to organizational almost all companies must work with, and finally, we’ll
management and a process-oriented approach. In the describe how we have organized the BPTrends portal in
background is an organization chart showing five departments terms of ten communities to make it easier for those who
in a hypothetical company that produces office chairs. visit the portal to find information most relevant to their needs.
Across all the departments is an arrow illustrating a business
process that shows how activities from each of the

Management

Engineering Production Finance Marketing Sales & Support

Business Process
promotions
new product design
Marketing of
new need New Product Ergochairs
identified Development
Sales & order
Production of Ergochairs available Customers
Service
Ergochairs

product delivered
materials

Suppliers

Figure 1. A business process cuts across traditional departments to combine departmental activities
into a single flow of work.

© 2003 Business Process Trends January 2003 2


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NEWSLETTER What is Business Process Change?
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Organizational Maturity (CMM). It was initially described in a book, The Capability


Maturity Model: Guidelines for Improving the Software
Managers have been thinking about business process Process, that was published in 1995. In essence, the CMM
change for several decades now. Some organizations are team defined five stages that organizations go through as
more sophisticated in their understanding of business they move from an immature to a mature understanding of
processes than others. Software organizations, for example, business processes. These stages were defined using
have spent quite a bit of time thinking about the software examples from software organizations, but they apply, equally
development process. In the Nineties, the Department of to any large organization.
Defense funded a major effort to determine how the software
development process could be improved. This task was The key assumption that the CMM team made is that
entrusted to the Software Engineering Institute (SEI), which immature organizations don’t perform consistently. Mature
is located at Carnegie Mellon University. The SEI/DOD effort organizations, on the other hand, do perform consistently
resulted in, among other things, a model of the stages that and produce quality products or services effectively and
organizations go through in their understanding, consistently. In the CMM book, they describe it this way:
measurement, and management of processes.
“In a mature organization, managers monitor the quality of
The SEI model is known as the Capability Maturity Model the software products and the processes that produce them.

Organizations with an mature mastery of their processes.


5. Optimizing

Continuous process
Organizations at this level routinely expect managers and employees to work together to
improvement is enabled by
improve processes. They understand their processes well enough that they can conduct
quantitative feedback for the
systematic experiments to determine if changes will be useful or not.
process and from piloting
innovative new ideals and
4. Managed technologies.
Only a few organizations have an organization wide
understanding of how processes relate and have
their corporate strategies and goals aligned, via the Detailed measures of the
management hierarchy to specific process activities. process and product quality
are collected. Both the
process and products are
quantitatively understood and
3. Defined controlled.
Most organizations are between levers 2
and 3. They have processes documented The process for both
and standardized but in many cases management and
manager's goals are only loosely linked to engineering is documented,
process goals. standardized and integrated
by an organization
2. Repeatable methodology

Basic project management


processes are established to
As organizations become more mature they begin to
track cost, schedule, and
conceptualize business processes and seek to organize
functionality. The necessary
them, repeat successes and measure results.
discipline is in place to
1. Initial repeat earlier successes

The process is ad hoc. Few


activities are explicitly Entrepreneurial organizations and new
defined and success divisions that do things any way they can to
depends on individual effort get started.
and heroics.
Organizations with an immature mastery of their processes.

Figure 2. The SEI's Capability Maturity Model (CMM)

© 2003 Business Process Trends January 2003 3


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NEWSLETTER What is Business Process Change?
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There is an objective, quantitative basis for judging product documented. Most either aren’t documented or are only
quality and analyzing problems with the product and process. documented in a cursory manner. Most companies don’t
Schedules and budgets are based on historical performance utilize process measures or organize their management
and are realistic; the expected results for cost, schedule, systems to achieve consistent process performance. And,
functionality, and quality of the product are usually achieved. in most cases, process improvement is not automatically
In general, the mature organization follows a disciplined undertaken by managers and employees, but is organized
process consistently because all of the participants as a special, onetime project.
understand the value of doing so, and the necessary
infrastructure exists to support the process.” The CMM model provides us an overview of where we want
to go. Companies need to begin with a commitment to
The five evolutionary stages or levels identified by the CMM processes. Then, they need to move beyond that to
team are illustrated in Figure 2. The CMM model defines document their existing processes, establish measures for
the evolution of a company’s maturity as follows: those processes and finally to organize management
systems that will use those measures to control the existing
Level 1. Initial The process is characterized by an ad hoc processes and improve them whenever possible. Along the
set of activities. The process isn’t defined and success way, each manager needs to become knowledgeable about
depends on individual effort and heroics. process issues and needs to understand how the processes
Level 2. Repeatable At this level, basic project or activities he or she manages fit within the larger business
management processes are established to track costs, to processes and ultimately provide value for customers.
schedule and to define functionality. The discipline is
available to repeat earlier successes on similar projects. A number of consultants are working to turn the CMM model
Level 3. Defined The process is documented for both into a Process Maturity Framework that companies can use
management and engineering activities and standards are to define and guide their evolution toward the more effective
defined. All projects use an approved, tailored version of the use of processes. We’ll be posting papers about their work
organization’s standard approach to developing and on the BPTrends portal and writing about it in future issues
maintaining software. of the newsletter.
Level 4. Managed Detailed measures of the software
process and product quality are collected. Both the software Phases in Process Change
process and products are quantitatively understood and
controlled. In Figure 3 we provide an overview of the major phases in a
Level 5. Optimizing Continuous process improvement is process change project. Different methodologies may
enabled by quantitative feedback from the process and from subdivide the project in a different manner, but the sequence
piloting innovative ideas and technologies. is usually the same.

Obviously the CMM approach was very much in the spirit of The initial phase focuses on identifying the need for change
Business Process Reengineering that was popular in the and scoping the project. We place quite a bit of emphasis
mid-Nineties and is also a product of an application of Total on working from a business process architecture that defines
Quality Management (TQM) techniques that were popular the processes the organization supports. In effect, a new
in engineering and manufacturing during the same period. strategy or new goals suggest changes in the overall
business process architecture. A specific change project is
Your organization or division is on one of these stairs or defined to accomplish the needed changes.
levels. Most software organizations studied by SEI were on
either level 2 or 3. In effect, they had processes, but in The second phase focuses on the actual redesign or
most cases they weren’t as well-defined as they could be. improvement of the existing process. One usually begins
They weren’t measuring their processes consistently and be studying the "as-is" process, considering alternatives,
their management systems were not well-aligned with their and then settling on a "to-be" process that will replace the
processes. They weren’t in a position to routinely improve current process.
their processes.
Once the new process design is approved by management,
It’s our impression that most organizations, like their software the resources necessary for the implementation of the new
groups, are between stages 2 and 3. Some processes are process must be created. Depending on the changes, new

© 2003 Business Process Trends January 2003 4


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NEWSLETTER What is Business Process Change?
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Phase I: Phase II: Phase III: Phase IV:


Identify and Scope Redesign the Develop Resources for the Deploy New Process
Needed Changes Existing Process New Process

Develop
New Human
Performance
Systems
Strategy and
- Redesign jobs, work Implement
Business Redesign
environment & Redesigned
Process Process
incentive systems, as Process
Architecture necessary
- Develop training
- Identify new goals and - Document as-is - Hire new employees, - Integrate and test
strategies workflow if necessary new process
- Define scope of - Identify problems - Start new process
changes using - Devise a general plan - Measure and
business process for the redesign
architecture
Develop New manage the
- Explore alternatives and execution of the
- Authorize process Information
choose best to-be design new process
change - Define requirements for Systems
development phase

- Hardware acquisition
- Software development
- Systems integration

Develop
Management &
Measurement
Systems

- Develop measurement
systems to monitor new
process.
- Redesign managerial &
supervisory jobs as
necessary

Figure 3. The phases and activities in a process redesign effort.

job descriptions may need to be created and employees management objectives to assure that the new processes
may need to be retrained. Similarly, job descriptions may work as expected and can be controlled by the manager's
need to be altered and new incentive programs may be responsible for their daily use.
required.
During the fourth phase, all of the new resources are
Independent of human resource changes, if the process integrated and tested and then, when ready, the new process
change requires new or modified software systems, software is put into production and managed.
requirements will need to be defined. Then, software will
need to be acquired or developed and hardware and Some readers will be interested in everything involved in
infrastructure elements will probably need to be modified to business process change. Others will be more interested
integrate the new software applications and databases that in specific activities of the redesign process. Thus, some
are developed. may be interested in the actual redesign of processes while
others may only focus on creating or integrating software
In addition to human performance and system changes, new required to automate a specific process. Still others will be
processes usually require new measurements and new primarily interested in management or measurement

© 2003 Business Process Trends January 2003 5


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NEWSLETTER What is Business Process Change?
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systems. Our portal supports six communities organized often concerned with redesign methodologies, modeling
around specific project activities. They include: tools, or Six Sigma methodologies.

1) strategy and business process architecture concerns, 3. BP Automation The focus of those interested in this
2) modeling and redesign or improvement of processes, activity is the automation of a business process. In many
3) automation of all or portions of a process, cases IT representatives will have participated in the redesign
4) improvement of human performance, effort and already have requirements for the changes. In
5) measurement and management of processes, other cases IT will need to do its own analysis. Different
6) deployment of new processes. process changes will require different techniques. This
activity is responsible for determining the exact requirements,
Those activities are derived from Figure 3 and provide an creating or acquiring the software and support resources
easy way for readers to identify the information most likely required, and testing them to assure they meet design goals.
to be useful to them. We will often classify consultants and
software tool vendors according to the activities identified in Those involved in this activity use techniques like: Workflow,
Figure 3. Each of the six subcategories is subdivided. The BP XML languages, Packaged Applications (ERP, CRM,
important thing about this classification is that it is based on SCM), UML Application Development, and EAI (Enterprise
the actual activities that organizations go through to change Application Integration)
business processes. Thus, each of the six activities we
identify use a group of tools that have a similar functionality 4. Human Performance Improvement The focus of those
in the business process change process, without regard to involved in this activity is on the analysis and improvement
the underlying technology employed. of human performance to assure that manual processes and
activities achieve their goals. Just as some changes are
Obviously, a consulting company or a tool vendor can offer a automated, others require changes in jobs, new training,
product that supports activities in more than one phase, but and new feedback or motivation systems. Those involved in
most are more specialized. Thus, many offer tools designed this activity often focus on techniques like Job Modeling,
to help automate business processes. Others offer tools Performance Improvement Methodologies, or Knowledge
designed to help with Six Sigma process improvement efforts, Management
or measuring and managing processes. We define the six
activities as follows. 5. Management and Measurement The focus of those
involved in this activity is on the measurement of process
1. Strategy and Architecture. The focus of those interested outcomes and customer satisfaction, and the ongoing
in this activity is on organizational strategy and high-level management of processes. In effect this activity is focused
business process architectures. Those involved in strategy on how managers are organized to assure that processes
determine vision, direction and goals for the organization. achieve their goals, and on the tasks that managers do to
The goals are passed to a Business Process Architecture assure processes function properly. Those involved in this
Committee, or some similar group, that determines which of activity often focus on techniques like Six Sigma, the
the organization’s processes are affected by changes in balanced scorecard, activity based costing, or matrix
goals, and prioritizes changes in the organization’s management patterns.
processes to assure implementation of its strategic goals.
6. Deployment This activity focuses on the actual
2. Business Process Redesign and Improvement. The implementation of a new process and on all of the issues
community focused on this activity is interested in the design, involved in successfully converting from an old to a new
redesign, or improvement of business processes. Process process and assuring that the new process is accepted
change is largely accomplished by means of projects that and effectively implemented.
may involve large numbers of people or may be modest and
local in scale. The process change effort usually begins Of the six activities, three deserve special comment. One
with a description of the existing process, and then considers is activity 2, where there are rival approaches for changing
alternatives that will accomplish the desired changes. Once process. The second activity that deserves special attention
a new design is agreed upon, this group hands off specific is activity 3, Process Automation, where there are a number
tasks to specialists who develop the resources required to of rather different technical approaches. The third activity
implement the changes. Those involved in this activity are that deserves some additional explanation is activity 5, which

© 2003 Business Process Trends January 2003 6


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NEWSLETTER What is Business Process Change?
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focuses on management and on


measurement. Environmental
Threats or Strategic
Opportunities
Process
Redesign, Improvement and Require that
Reengineering
Process Be
Reengineering Reconceptualized

In the course of discussing the enterprise


alignment cycle, we used different terms to
describe the actual changes to be made. Process Has
Significant Problem s
Some managers use the terms “redesign,” Process
and Needs to Be
Redesign
“reengineering,” and “improvement” as Changed in
Fundamental W ays
synonyms. Others make sharp distinctions
between them. We will generally
distinguish between process improvement,
process redesign and process
Process
reengineering. Improvement
Process
Figure 4 provides an overview of how we will Stable
distinguish between these three types of
process change. If the process is relatively Sm aller Mid-Sized Business Value Chains and
stable and the goal is to introduce Sub-Processes Processes and Core Business
Sub-Processes Process
incremental improvements, then the
preferred term is process improvement. If Figure 4. Process improvement, process redesign and process
the process is very large and we seek to reengineering.
redesign the process in a comprehensive
manner, then we will use the term process
reengineering. The key distinction is between improvement, third axis. In effect, you could create a process model for
which essentially relies on a problem-solving approach, and any process, from a small, static one, to a large, dynamic
reengineering that relies on reconceptualizing how a business one. Similarly, you could automate any of these processes
process should work. The first is tactical and the second is or install management or measurement systems to make
strategic. Most process change projects fall in between them more consistent and efficient.
these extremes, and we will use the term process redesign
to refer to these efforts. We normally think of a methodology like Six Sigma as best
for process improvement, but there are those who use it for
Once a company has organized around processes and major redesign projects. Similarly, we normally think of the
redesigned its basic processes, large, complex projects Rummler-Brache methodology as best for redesign and
should be rare. Large projects may still occur when major reengineering, but some practitioners use Rummler-Brache
new technologies or product lines are introduced. Linking for process improvement. Anyone seeking to manage
an internal supply chain into an integrated supply chain that process change projects at a company needs to learn to
includes several different companies might just call for a use all these terms consistently.
major redesign or a BPR effort. Most automation efforts are
redesign efforts. In an ideal situation, most company Business Process Automation
processes will be redesigned and thereafter, most efforts
will involve process improvement efforts. In a mature process There are many different approaches to process automation.
organization the process improvement efforts will be a more- To name two: Some companies develop software to
or-less continuous effort undertaken by the manager and automate a process, while others use packaged applications.
the process team. We currently divide business process automation
approaches into five areas:
If we wanted to show how some of the other tools, techniques
and methodologies we have discussed fit into the scheme, Workflow. There are a variety of software products that
we would make Figure 4 into a cube and add them on the automate the flow of work from one employee to another, or

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NEWSLETTER What is Business Process Change?
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that manage the assignment of tasks.


MANAGE: Job Functions of the Manager Responsible for the Process
XML Business Process Languages.
There are a number of groups working on Changes in Goals and Plans
XML languages that facilitate defining
business processes and linking them. PLAN PROCESS CONTROL PROCESS
Some allow businesses to coordinate by Goals &
using common, public processes, and y Set goals and expectations Measures y Monitor process
others allow companies to define their y Establish plans and budget y Reinforce success
processes and then exchange the y Provide resources & staff y Diagnose deviations
descriptions so that they can more y Implement process y Take necessary corrective
closely coordinate their processes. IBM, actions
Microsoft and BEA have just announced
one common initiative, and the BPMI
(Business Process Management Expectations, Data About
Initiative) consortium is working on an Plans & Resources Feedback
Results
alternative approach.
Process Output
1
Packaged Applications. There are a Measures
number of vendors selling ERP
(Enterprise Resource Planning), CRM PROCESS EXECUTED
Inputs Results
(Customer Relationship Management)
and SCM (Supply Chain Management)
applications. A company can buy
software modules from SAP, Oracle or i2 Figure 5. The Basic Process Management Model
to quickly automate a subprocess or a
whole sequence of processes.
Geary Rummler, a BPTrends Advisor and Contributor. In
Component-Based Software Development. Some essence, every process, from large scale processes like
companies prefer to create their own applications to supply chains through sub-processes like inventory and
automate critical processes. There are a variety of accounting, has a manager. Managers plan and staff
techniques that software developers use to facilitate the processes, monitor them, provide feedback, and make
development of software to support business processes. changes to assure that they function as they should.
Software modeling languages like UML (Unified Modeling Indeed, for most managers, process management is a key
Language), architectures like the Object Management part of their job.
Group’s MDA (Model Driven Architecture), business
component frameworks like those available with IBM and It’s one thing to analyze and define a process, and it’s another
BEA applications servers, and methodologies like Rational’s thing to manage it on a day-to-day basis. The former usually
Unified Process (RUP) all fall in this category. refers to a process improvement or redesign project. The
latter focuses on the daily work of managers. When we
Enterprise Application Integration (EAI). This area described the organizational maturity model (Figure 2) we
focuses on techniques used to link applications and suggested that most organizations fall between Levels 2
processes together. Some companies use middleware and and 3. They have analyzed some processes but not all.
some rely on various infrastructures or tools to achieve Even organizations that support a business architecture
integration. committee and have descriptions of all of the processes
used in the organization, have only reached Level 3. Moving
The Management of Business Processes to Level 4 requires that companies focus on establishing
process measures and monitoring them. Thus, it is the more
Figure 5 illustrates the basic management model that we sophisticated organizations that focus on controlling
described in detail in our recent book, Business Process processes as they are being executed.
Change. The model is ultimately derived from the work of

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NEWSLETTER What is Business Process Change?
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General Environmental Influences:


The national and world economies, government regulations,
and social trends

Any Organization
people information &
Labor Organization Management
Markets dividends
& Strategy Shareholders

service requests & complaints


Sales and
capital Product Design
Capital Marketing marketing
Process
Markets Process contacts
Market

technology Customers
sales
Supply Chain contacts
Research Process
Community
orders

product delivered
Enabling
materials Processes
Vendors

competitive products
Competition

Figure 6. Major Business Processes

The distinction between a process and its management also Advantage (Free Press, 1985) where he introduced the idea
lies at the root of some confusion over the nature of process of a value chain. Porter described five core processes,
automation. Some software applications are used to including: inbound logistics, operations, outbound logistics,
automate the actual execution of a process. Other marketing and sales and service. He also captured the idea
applications are used to automate the management of a of support processes, and includes procurement, technology
process. At some level in an organization, human managers development, human resources management and firm
must be responsible, but many sub-processes with their infrastructure. This probably represented an accurate enough
associated management functions can also be automated. picture in the mid-Eighties, when it was published, but the
groupings seem somewhat arbitrary today.
In future issues of the newsletter, we will focus on each of
the six activities and identify the key concerns, techniques, Figure 5 provides the overview that we currently prefer. We
and best practices common to each of the activities. divide an organization into four major business processes,
including:
Major Types of Business Processes
Product Design Process. This process usually stands
A second common way to think about business processes alone and is key to every company’s unique position.
is to conceptualize companies in terms of a few generic
business processes. In effect, these generic processes Sales and Marketing Process. Sales and marketing are
would be the top processes in a hierarchy of business usually subdivided into marketing, sales, and customer
processes. Perhaps the earliest effort in this direction was support processes. Packaged software vendors often refer
undertaken by Michael Porter is his book Competitive to the set of software applications that support this set of

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NEWSLETTER What is Business Process Change?
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processes as CRM (Customer


Communities Focused on Specific Types of Business Process
Relationship Management) applications.
Sales & Enabling
Product Design Supply Chain
Supply Chain Process. This general Marketing Processes
category is often subdivided into
procurement, manufacturing, operations, Strategy &
Architecture
and distribution and can easily be

Communities Focused on Specific


subdivided into other processes as well.

Business Process Activities


Packaged software vendors often refer to Redesign
the set of applications that support these
processes, collectively, as SCM (Supply Those interested
Automation in Supply Chain
Chain Management) applications. Automation

Enabling Processes. This general Human


category usually includes finance, Perfromance
accounting, human resources,
Manage &
procurement and other support functions,
Measure
including IS. (Obviously this analysis is
somewhat different if the company involved
is a financial organization.) Packaged Deployment
software vendors usually refer to
applications that support this set of Figure 7. The Basic Process Management Model
processes, collectively, as ERP
(Enterprise Resource Planning)
applications.
issues, and will cover the area highlighted on Figure 7.
We have described our four generic processes as if they
Business Process Change Today
occurred within a specific organization. We are well aware,
of course, that many companies are focused on multi-
Most companies spent a good deal of time and money
company or collaborative business process development,
working on business process change in the Nineties. Lots
and we have tried to use names that can refer to collaborative
has been learned about how to organize for process change,
processes as well as intercompany processes, since we
how to manage business process redesign projects, how to
will certainly be covering both types of development.
implement newly changed processes, and how to measure
and manage ongoing processes. The BPTrends portal
The BPTrends Communities Matrix
and this newsletter will continue to provide you with up to
date news and information and on recent developments. We’ll
On the BPTrends portal, and in this newsletter, we will often
consider techniques, best practices, success stories, and
refer to these activities and these processes. When
problems and opportunities organizations have encountered.
combined with the communities focused on activities that
occur during BP project phases, we create a matrix which
We’ll report on how leading companies spent the Nineties
is illustrated in Figure 7. In other words, we will classify
documenting and refining their internal processes and
information on the BPTrends portal and in future issues of
developing management and measurement techniques that
this newsletters so that readers can access material from
assure that their key processes run as efficiently as possible.
10 different viewpoints.
We’ll also report on cutting edge companies that have already
mastered their internal processes and are spending this
A reader interested in Strategy and Architecture issues can
decade defining and refining extra-company processes, like
check the BPTrends portal for articles focused on business
the supply chain process. Some management gurus are
process strategies and architectures. On the other hand, a
already predicting that the real competition of this decade
reader interested in Supply Chain systems can check for
will be between competing supply chains rather than
information on any phase of supply chain development. Our
competing companies.
next issue of BP Trends, for example will be on Supply Chain

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NEWSLETTER What is Business Process Change?
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Most companies, of course, have only begun to define their ______


processes and develop the management systems and Notes
architectures they will need to take advantage of the move
toward extra-company processes. Those companies will Readers familiar with the work of Geary Rummler will
spend the next several years playing catch-up -- struggling recognize that I have used several business process
to define and improve their internal processes and process concepts that derive from his work. Thus, for example, the
management systems -- while they simultaneously try to business process management diagram used in Figure 5
master the extra-company processes that will define the and the organization diagram used in Figure 6 both reflect
winners in the years ahead. We’ll report on these efforts as ideas derived from Dr. Rummer's work. For more information
well. on Rummler's latest work, check his web site:
www.performancedesignlab.com
From whatever perspective you approach the issue of
business process change, as a successful manager, you
are going to spend a lot of time in the coming years trying to This Business Process Trends newsletter is copyrighted
master business processes. The world is going to continue and may not be reproduced for commercial purposes, either
to change rapidly, and the successful companies will be in whole or in part, without the express written permission of
those that can change their processes to avoid threats and Business Process Trends. Business Process Trends grants
to take advantage of opportunities as they occur. individuals the right to download, print and distribute this
newsletter for non-commercial purposes only, and only in
The Business Process Trends newsletter, and its companion its entirety, and in the format in which it appears on this
BPTrends portal are designed to help keep you up to date site. All other rights to publication are strictly forbidden
on new developments, techniques, and the options that you without the express written consent of Business Process
will need to understand and to be effective in managing and Trends.
improving the business processes within your organization.

© 2003 Business Process Trends January 2003 11