BPM analysis
and development
methodologies
PV207 – Business Process Management
Spring 2014 Jiří Kolář
Last lecture recap
● Process Execution Behind the Scene
● Best Practise of Process Modelling
● Basic Design Mistakes
● 7 Guidelines of Process Modelling
● From Abstract to Runnable
● Process Redesign
● Conclusion
Lecture overview
● Why a methodology for
BPM development?
● BPM and SOA again
● CBM in a nutshell
● Methodologies
○ Top down
○ Bottom up
○ Meet in the middle
● Library scenario:
○ Strategy and vision
○ Goals, objectives and
KPIs
○ CBM heat map
○ Stakeholders
identification
○ Business components
○ Processes and services
○ Process description
○ Process BPMN diagram
Why we need a methodology for
BPM-oriented development?
● BPM differ significantly from traditional
data-based approach to system design
○ Special anlysis & design steps needed
○ Traditional methodologies do not fit
● BPM oriented SW solutions depend on
proper organisation structure
● BPM discipline has impact both on
business structure and EIS
● Organisation changes are often necessary
● Processes have to be aligned with business
● process can be decomposed to activities
● Many automated activities are implemented
as services (service orchestration)
● We want to assemble our processes from
many independent services
● At least a basic SOA infrastructure is useful
for well implemented BPM solution
● SOA infrastructure provide flexibility we need
to achieve process evolution and improvement
Relationship of SOA and BPM
Relationship of SOA and BPM (cont.)
Relationship of SOA and BPM (cont.)
● Component Business Modeling is a technique
introduced by IBM for business modeling and
analysis
● CBM splits enterprise to separate ”buliding
blocks” - business components
”A business component is a grouping of the people, technology, and
resources delivering specific business value and able to operate
independently” --Principal architect for SOA, IBM
● Example: Marketing department
● CBM is primary Business modeling concept
● Very important in outsourcing context
CBM in a nutshell
● Each Business Component provide certain
business competencies
● Ex.: Competencies of marketing
department
○ Advertising
○ Product promotion
● We map our processes to competencies
CBM in a nutshell (cont.)
● Sum business strategy and vision
● Identify/Define business goals and obejctives
● Identify business components and
competencies
● Define/Identify processes and roles
● Map to component
competences
● Reuse/Implement
required services
and
SW components
Top down BPM development
Bottom up BPM development
● Identify services on lowest level (code)
● Identify composed services
● Discover processes (by hand, algorthmic)
● Refine processes
● Map processes to Business Components
(CBM output)
● Align with goals
and strategy
3 meanings of word "service"
● "Business" service
○ Restaurant owner can register his restaurant to
Google database and be shown in Google Maps
○ Defined by contract / service offering
● "Technical" service
○ Users can search for their favourite restaurant in
Google Maps
○ User interface for "Human task"
● "Web" Service
○ Google provide Web Service API for retrieving
location of certain address
○ WSDL interface definition
Reality: Meet in the middle
● Top down
○ Define/refine strategy
and vision
○ Identify/refine goals
and components
○ Define KPI/KRI
○ Identify components
○ Identify/define
processes
● Bottom up
○ Identify existing
services and SW
components
○ Identify composed
services
○ Assign to processes
In parallel:
● Every organisation should state clearly it's
purpose and it’s goals
○ This is important for outside world as much for the
company itself
● There should be a mechanism for evaluation
of success in achievement of those goals
● Such evaluation should be performed regularly
and it's results should be used as an input for
continuous business improvement
● Organisation should reflect changes in
Business environment by adjusting it's
Business strategy:
"A way we want to go"
Business strategy:
Mission and vision
Simple and clear statements:
● Vision:
○ Desired future state of the organisation
○ Guiding, motivating, Inspiring, Long term
Alzheimer's Association: "Our Vision is a world without Alzheimer's
disease."
Microsoft: "Empower people through great software anytime, anyplace,
and on any device."
● Mission:
○ Define current state and purpose
○ Answer: what, who, how questions
○ Short term, direct relation to Goals and objectives
NatureAir: "To offer travelers a reliable, innovative and fun airline to travel
in Central America."
Business strategy:
Goals and objectives
Desired outcomes, things we want to achieve:
● Goals
○ The purpose toward which an effort is directed.
○ Long term, general intentions, hard to measure
Goal: Students will gain a greater appreciation for poetry.
● Objectives
○ Narrow, concrete easy to measure
○ Achievable in mid-to-short term
○ Related to a goal
Objective: read at least 10 poems
Objective: attend 2 live poetry readings
Objective: identify 4 different poems used in lyrics of modern music
Objective: write a poem containing 3 verses
Performance measurement
● Metric
○ Standard measurement
○ Related to one instance of object/process/service
Metric: Incident resolution time
Metric: Incident severity
● Performance Indicator/ Key PI ~ KPI
○ Actual/short term measurement = input for action
○ Indicator of actual business performance
KPI: Number of incidents in progress, number of incidents waiting for input
● Result Indicator/ Key RI ~ KRI
○ Result from the past = input for planning
○ Indicator of recent busness performance
KRI: Unresolved incidents this mont, quartal average incident solving time
Measurement guidelines
● Make sure you are able to compute or
estimate values for your indicators
● Make sure you give a frame to your
indicators
○ Time frame, milestone, limit
○ Wrong: number of logged incidents
○ Correct: number of logged incidents per week
● Make sure you have a driver for
measurement ~ reltion of your indicator to a
goal/ objective / SLA / contract..
Questions?
Break 10mins
Strategy and vision:
We want to provide best library services in town by
offering easily accessible book rentals through simple
time saving rental process.
We help people to extend their knowledge in modern
way by offering access to all major electronic
information sources and provide 24/7 support to
information consumers..
Example: Library scenario
Library scenario:
Goals and objectives (cont.)
● Goal: Provide access to all major forms of
modern electronic information sources
○ Objective: Provide access to common internet sources
and to 40 major digital libraries
■ KRI: Number of accesses per library / month
○ Objective: Sell electronic books and reading devices
■ RI: Turnover and profit in devices sold / Quartal
■ KRI: Number of electronic books sold per sold device
○ Objective: Provide separate high-speed access for
mobile devices
■ KPI: average response time of service today
■ PI: number of simultaneously connected users
Library scenario:
CBM heat map
Library scenario:
Stakeholders involved
● State administrative (Regulations,state
funding)
● Library management
● Library employees (staff)
● Readers
● Banks (online payments)
● Business partners (device resellers)
● Service providers (digital libraries)
Library scenario:
Processes and services
● Objective:
Provide full-featured 24/7 online IS for readers
○ Process: Register new reader
■ Service: Create reader's record
■ Service: Update reader's details
■ Service: Subscribe reader for service
○ Process: Book reservation
■ Service: Find book according to name or ISBN
■ Service: Retrieve book rental state
■ Service: Reserve book for certain period of time
Library scenario:
Processes and services (cont.)
● Objective: Introduce 3-steps-3-minutes epayment
method
○ Process: Direct electronic payment
■ Service:Verify payment creditals
● Composed service: Create invoice
● Metric: Manual corrections necessary
○ Service: Retrieve payment details
■ Metric: processing time
○ Service: Retrieve order details
■ Metric: processing time
Library scenario:
Process: Charge internal credit
Library scenario:
BPMN: Charge internal credit
Analysis structure recap
Strategy and vision (Clean and simple text)
● Goal
● Goal
○ Objective
○ Objective
■ KPI/KRI PI/RI
■ Process
■ Process
● Service
○ Metric
● Composed Service
○ Service
○ Service
■ Metric
FIN
Questions?
PV207 – Business Process Management
Spring 2012 Jiří Kolář