Business Process Management Life Cycle

For School of Pharmacy

Business Process Management Life Cycle
Business Process Management requires a clear understanding of the processes
that would be automated.
The steps in a BPM Life Cycle are:
1. Model
2. Implement
3. Execute
4. Monitor
5. Optimize
Modeling
The first phase of BPM is to create a model. A model is an object created to
represent something else. For example, a globe is a model of the planet Earth.

During the Model Phase, we begin by creating a high-level diagram of the process.
Initially, the goal is to gather just enough detail to understand conceptually how the
process works and the main steps involved without being distracted by the fine
detail of how it will be implemented.
Process Modeling encompasses both the identification of existing processes and the
design of "to-be" processes.
Areas of focus include representation of the process flow, the factors within it, alerts
& notifications, escalations, Standard Operating Procedures, Service Level
Agreements, and task hand-over mechanisms.
Good modeling reduces the number of problems over the lifetime of the process.
Whether or not existing processes are considered, the aim of this step is to ensure
that a correct and efficient theoretical design is prepared.
The proposed improvement could be in human-to-human, human-to-system, and
system-to-system workflows, and might target regulatory, market, or competitive
challenges faced by the businesses.
Capture the business processes at a high level.
Gather just enough detail to understand conceptually how the process works.
Concentrate on ensuring the high level detail is correct without being distracted by
the detail of how its going to be implemented.

Implement
Extend the model to capture more detail required to execute the process e.g.
Recipients
Form controls and layout
Email message content
System integrations

It is at this point where decisions about how to specifically implement the
processes are made.

To continue our example, while a globe is a model of the Earth, a map provides
the detailed directions between two cities and helps you decide which route to
travel.


Execution
Instances of the process are launched and interacted with by the end users

One of the ways to automate processes is to develop or purchase an application
that executes the required steps of the process; however, in practice, these
applications rarely execute all the steps of the process accurately or completely.
Another approach is to use a combination of software and human intervention;
however this approach is more complex, making the documentation process
difficult.

Business rules have been used by systems to provide definitions for governing
behaviour, and a business rule engine can be used to drive process execution
and resolution.
Execution
The Execute Phase of BPM consists of interpreting the instructions
created during the Automate Phase to manage the flow of work from the
beginning of the process until its completion.

Within BPM software, the workflow engine is responsible for creating tasks and
automatically directing them to the right people or systems based on the
process rules much like the way a GPS system provides you with step-by-step
driving instructions to your destination.

And, while the driver could read directions manually from a map to accomplish
the same goal, GPS systems are much more efficient and allow the driver to
concentrate on driving rather than worry about navigation.
Monitoring
Monitoring encompasses the tracking of individual processes, so that
information on their state can be easily seen, and statistics on the performance
of one or more processes can be provided.

An example of the tracking is being able to determine the state of a customer
order (e.g. order arrived, awaiting delivery, invoice paid) so that problems in its
operation can be identified and corrected.

In addition, this information can be used to work with customers and suppliers
to improve their connected processes. Examples of the statistics are the
generation of measures on how quickly a customer order is processed or how
many orders were processed in the last month.

From our example, identifying that travel time has increased by 30% might
cause you to test an alternate route to avoid the new traffic signals

Optimization
Improve the business process and performance against SLAs by reducing the
bottlenecks/inefficiencies identified during monitoring.

Simulate these changes using what-if simulation. (e.g., changes in rent or
materials costs, which determine how the process might operate under different
circumstances). It also involves running "what-if analysis" on the processes:
"What if I have 75% of resources to do the same task?" "What if I want to do the
same job for 80% of the current cost?".

Determine which changes will deliver the maximum benefit. During the
Optimize Phase, managers use data and lessons learned from Manage Phase as
a foundation to change the process.

Optimization may include such things as enhancing the data collection forms,
adding or removing tasks, automating steps that were previously completed
manually, or modifying the reports generated. The goal of the Optimize Phase is
to identify changes that will improve the process.



Continuous Business Process Improvement- The Cycle Continues
Perhaps the most important aspect of BPM is the one most often overlooked
continuous improvement. As the saying goes, the only constant in life is change.
Your firm changes, your environment changes, and your technology changes.
Your processes also need to change and evolve to meet your needs.

It is best to consider the 5 steps of business process management as part of a
continuous cycle. Once potential process changes are identified, the cycle
begins again and the best suggestions are eventually implemented. In this way,
you are able to make continual and incremental improvements to the process

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