ISIT332 Business Process

Management

What is a business process model?

Documentation of a business process using a
combination of text and graphical notation.
Depicts the Process that People employ to
provide value to their Customer with a strong
emphasis on how the work is done.
Establish the interdependencies, prerequisites,
inputs and outputs, and conditional branches to
create a process flow

Why model a business process?

BABOK: Describe the functions associated with the business

activities... and the inputs, controls, outputs, and
mechanisms/resources used of those activities.
Understand how labor and resources are used to create products or
services for a companys Customers. Identify areas that could be
improved, made more efficient and re-engineered
Create an understanding of where Systems/Applications can or do
automate or streamline human or mechanized processes capture
requirements
Integrate activities between departments/companies especially
necessary after a merger of different groups of People producing
similar or dependent products/services
Assist in implementation and acceptance of Six Sigma, ISO, CMM
or other standards
What other uses can you see? The list is endless

What does a business process

model look like?

It Depends

Strengths
(Client Name) Service Excellence
Department Name

(Flow Name Here)

Use ICONS to
show the process
when possible

Use blue ink to

identify process

Identify
strengths on
green post-it
notes

Attach
documents,
reports, etc.

Diamonds
ICONS are
used for
decision
points

Rectangular
ICONS are used
for activity

Opportunities

1
Identify
opportunities on
yellow post-it notes
with red ink

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1.
2.
3.

%
Quantify
opportunities,
loops, lags, etc.

Show detail
when
necessary

Show linkages to
other process flows

Common methods of modeling

BPML Business Process Modeling Language

An Extensible Markup Language (XML)-based meta-language
developed by the Business Process Management Initiative (BPMI) as a
means of modeling business processes

BPEL Business Process Execution Language

An XML-based language designed to enable task-sharing for a
distributed computing or grid computing environment - even across
multiple organizations - using a combination of Web services.

BPMN Business Process Modeling Notation

A standard graphical notation used to facilitate the understanding of
business transactions between organizations.

UML Unified Modeling Language

A notation that allows the modeler to specify, visualize, and construct
the artifacts of software systems, as well as business models.

Business Process Methodology

The Basics
The most basic approach consists of developing
an As-Is model and using it to build the desired
To-Be model
Here is an example

Planning
And
Preparation

Evaluate
the Current
Environment
(AS IS)

Develop the
Future
Vision
(TO BE)

Perform
GAP
Analysis

Develop
Findings and
Path Forward

Business process maturity steps

It is normal and expected to learn as you go and progress in
maturity at both the individual and enterprise levels

g
vin
o
r
I mp

Doing what it takes to get

the job done

li
a
u
q
ty,
i
l
i
ag

e
nd
a
ty

Process flow pictures

Defined business and IT
change implementations
Periodic metric gathering
and evaluation

ncy
e
i
ffic

Function-specific
workflow applications
Workflow & applicationspecific process models
Changes implemented
by IT modifications to
applications
Regular metrics published
from workflow tools

Advanced process
modeling and simulation
tools
Process models are tied
directly to workflow
application
Integration of workflow
applications and other IT
systems
Changes implemented by
changing process
models
Continuous monitoring of
process metrics and
results

I cannot say whether things will get better if we change; what I can say is they
must change if they are to get better. --Georg Christoph Lichtenberg

Process modeling layers

Enterprise Value Chain Layer

The highest level describing the
overall functions of the organization
Great for management overview
for everyone, too vague for much
use
Enterprise Processes Layer
Describes the major processes
within a part of the value chain and
how they relate to each other
Ideal for understanding overall
Business Architecture, Strategy and
Goals/Vision but too broad for
requirements

Vision & Strategy

Subscription
Marketing

Customer
Care

Ad Sales

Build Ad
Partners

Identify
Prospects

Subscription
Maintenance

Process New
Subscriptions

Process
Renewals

Acquire New
Customers

Print Procedures
1.
2.
3.
4.
5.

Open MS W ord
Open the document
Select File | Print
Select a printer
Press the OK button

Business Processes & Tasks

Process modeling layers

Business Processes/Activities Layer

Describes the main activities,
decisions and variations with a
process
Critical to defining areas of
improvement, feature statements
and Use Cases but too detailed for
strategic planning and too open to
interpretation for requirements steps
Procedural/Tasks Layer
Describes the detailed steps done
to complete an activity (can be
many layers deep)
Necessary for detailed Use Case
Steps, Business Rules, Validation
Criteria, etc. but loses the attention
of management at Strategic level

Vision & Strategy

Subscription
Marketing

Customer
Care

Ad Sales

Build Ad
Partners

Identify
Prospects

Subscription
Maintenance

Process New
Subscriptions

Process
Renewals

Acquire New
Customers

Print Procedures
1.
2.
3.
4.
5.

Open MS W ord
Open the document
Select File | Print
Select a printer
Press the OK button

Business Processes & Tasks

Integrated process improvement

As-Is modeling & analysis
As-Is verification
Process simulation
Improvement opportunities
To-Be vision design
Implementation planning

Process
Process
Design
Design

Process
Process
Evaluation
Evaluation

Metric gathering (manual & automated)

Scorecard/Dashboard publishing
Metric goal vs. actual analysis
Issue identification and trending

Business
Business
Strategy
Strategy&&
Goals
Goals
Strategy mapping
Metric framework development
Goals & incentives design
Initiative identification

Process
Process
ImplemenImplementation
tation
Procedure and guidelines updates
Training
Organizational change management
Tool & technology improvements
Workflow implementation

Configure business process and

align other strategies

Identify business processes

Match processes to criteria and prioritize
Identify information and knowledge needs
Identify strategic technologies
Identify facility requirements
Determine organisation strategy
Determine human capabilities
Determine alignment opportunities and
constraints

Identify business processes

Identify the organisations core processes
and support processes
Architecture mapping by categorization of
process types: core, guiding, and enabling
Event/outcome analysis
Interviews
Workshops

Tactics
Always start process analysis with the customer
segments
Conduct interviews and information gathering
workshops for each significant customer type
Conduct interviews and then run workshops to
gather input from managers
Involve the customer or a knowledgeable proxy
to define customer values and important
performance indicators

Conduct interviews

Schedule enough time to ask

questions about what a Person
does but to also watch them
perform their duties for a period
of time

Document everything that is said

and pay special attention to the
specific order of events, prerequisites, inputs and outputs,
constraints, things that work well
vs. things that need improvement

Ask Questions and begin

Analyzing on the spot

Downloadable sample at www.mentortek.com/bpm/

Matching processes to criteria and

prioritizing
Gather existing process performance
measurements, benchmarks that
performance against similar processes in
other organisation
Matrices to cross-reference the stakeholder
criteria from the business context phase to the
processes identified

Tactics
Link processes to the reasons for their
existence
Examine each process for its degree of
importance, potential contribution, and
opportunity for improvement
Use matrices to keep the analysis and
presentation simple
Consider redoing the exercise

Identifying information and

knowledge needs
Determine the nature of the information
required to support the priority processes
Identify the types of tacit knowledge and
explicit knowledge required to guide the
organisations processes
Information architecture
Knowledge categorization
Scoring and matrix analysis

Tactics
Consider the help of people with
experience in categorizing and classifying
concepts
Information-to-process and knowledge-toprocess can be developed to show
priorities in the areas to be dealt with first

Identifying strategic technologies

Ensure we understand at a high level
which technologies exist today or are
promised in the future
Technology watch
Technology principles definition
Application architecture development
Technology infrastructure definition
Scoring and matrix analysis

Tactics
Understand the business values first
Establish a technology watch team
Business and process based way to
define or redefine technology architecture
Use process-to-technology grids for
simplicity of tracking

Identifying facility requirements

Gather knowledge of the physical facilities
that support existing processes
Determine the impact of possible process
changes on the physical facilities
Trigger physical working environment
construction, acquisitions, or
enhancements, if required
Facility needs analysis
Acquisition planning and budgeting

Tactics
Dons ignore it!
Get facility professionals involved
Look for opportunities to close unneeded
space, eliminate storage facilities, combine
locations, etc.
Consider remote offices,
telecommunication, and mobile workforces
Consider using process-to-facility grids

Determining organization strategy

Understand the existing roles and
organizational responsibilities as well as
the potential new roles, jobs, and
organizational designs
Process-to-organization matrices
Swim lane diagramming
Collective bargaining issue review

Tactics
Start with major roles, determine logical
groups of roles, and then begin to design
logical organization units
Consider carefully the organizations need
to adapt and maneuver quickly
User HR development professionals
Consider implementing the broadest
cross-functional team structures
Involve the collective bargaining units

Determining human capabilities

Determine the core competencies of the
organizations staff, including the skills,
strengths, weaknesses, and so on
Core competency analysis
HR skills assessment

Tactics
Dont go too details
Dont delay or avoid change. If possible,
train rather than replace
A key requirement to do a job isnt simply
the ability to learn a new skills

Determining alignment
opportunities and constraints
Make the opportunity visible
Identify constraints that will hinder or
prevent changes within the processes
Document analysis
Root-cause analysis
Workshops
Negotiation
Communication
Program management

Tactics
Be creative!
Pay attention to understanding the root
causes of constraints and problems
Consider establishing a program
management office (PMO) to ensure that
the architecture and strategies become a
reality

BPM Best Practices

Ensure a high-level Champion or Steering Group is formed
to provide executive sponsorship and definition of goals in a
large process-modeling exercise.
Start small, demonstrate success and build on the success.
Start with a narrow scope before trying to choreograph an
entire enterprise business process model.
Ensure business persons expectations are set appropriately
at the outset; otherwise they will assume that this project is
just like all of the other projects that came before and
produced few tangible results. Make sure you deliver on
those expectations!
To be successful, BPM must be a way of thinking of the
enterprise and building a process into the overall business
architecture rather just a way of documenting steps in a
process that appears to be independent of the business.

BPM Best Practices (continued)

Build Re-Usable Process Components when possible
Business Objects/Entities
Customer (Name, Address, E-Mail address, Phone Number)
Customer Report (Name, Date Added, Last Sale Date, Credit
Rating)
Loan (Loan Name, Loan Type, Interest Rate)

Interfaces and Systems

System Notation, Name, Description
Interface Name, Description, Purpose, Input/Output formats, etc.

Processes and Activities

Retrieve Customer Data
Update Address

Organizational Structure descriptions

Department/Division Name, Description, etc. (e.g.

Recap and Close

Start Simple
Do what you know. Learn to do more!
Educate as you implement (yourself, your
business partners, others in the enterprise)
Look for the details in the big picture
Share your knowledge
Experiment with formats
Your primary goal is to COMMUNICATE

Holocentric Modeler
Holocentric is a sydney-based company
specialising in business modelling
www.holocentric.com
Holocentric modeler is its flagship product
which provides organization modeling
capabilities. Current version is 6.2
Support role-based process modeling
(RBPM)

Model elements defined

Model: the container for a set of items
Library: provides a physical separation of groups
of items within a model
Catalog: provide a simple way of logically and
physically structuring information within a model
Items: elements used the describe business
processes
Diagram: the drawing panel that contains
graphical icons depicting business processes

Model elements defined

Actor: a role that someone or something
plays
Use case: a unit of work which can be a
sequence of actions
Relationship: a link between elements
Process: a collection of actors, user cases
and relationships depicted through a
process diagram
Process area: a container for processes