Process design
& BPMS
PV207 – Business Process Management
Spring 2017 Jiří Kolář
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Lecture overview
● About course
● BPM discipline
○ What is business
process?
○ What is BPM?
○ What is BPM adoption?
○ Why BPM ?
○ Roles in BPM
○ Process life-cycle
○ Phases of process
based development
● Business Process
Management
Systems (BPMS)
○ BPMS components
○ Architecture
○ Human Tasks
○ Business Rules
○ BAM
○ Existing BPMS1
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● Introduce the BPM (motivation, use cases..)
● Explain BPM in context of services integration
● Deep dive in business process modeling
● Explain basics of Business Analysis
● Explain how to adopt BPM in organisation
● Introduce Process Monitoring & Measurement
● Hands-on-experience with BPM technologies
● Lead students to the elaboration of a simplified
end-to-end BPM project in a TEAM
Course goals
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Course organization: 3 rules
1) Fair and equal conditions to everybody
2) Everything is in the course manual !
https://docs.google.com/document/d/1y0hIr1VrK7s2O4fMoHayqogJ_ur6YOwmiNyJf1aAW4Q/edit#
3) Questions resolved by comments to the
manual document (Highlight the topic, Ctrl-M;)
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Big fat warning:
This course is no kindergarden !!!
● The course is mandatory and difficult
● Come to lectures and pay attention
● Seminars are mandatory to attend
● Build your team first week and work in team
● Follow the schedule and instructions
● Do homeworks (or you get F in 1/2 semester)
● Cheating = faculty expellation, not just F
In other words:
Behave like professionals.. 5
And now on BPM
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Is a Management discipline, focused on
systematic definition, execution and
measurement of processes in organizations
Alternative defintion:
An effort to describe processes in
organisation, measure results and manage
process changes towards higher efficiency
Business Process Management
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Typical motivation for BPM:
● Business Reengineering
○ Enterprise growth
○ Acquisitions
○ Organisational and cultural changes
● Quality Management & Measurement
● Legal compliance, certifications
● Technology for IS development
○ High level platforms
○ Integration
○ Agile system development
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● Large enterprises
○ Banking,
○ Insurance Business
○ Telco
○ Retail
○ ++
● Health Care (developed countries)
● Public organisations (developed countries)
○ Courts, State administrative, Governmental
organisations (ex. EU bureaucrats:)
● "Smart" SMEs
○ Smaller companies, where efficiency matters
Where do we find BPM?
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● XX BC Division of labour
● Beginning of 20th century
○ Bata, Ford
● 80' – Total Quality Management
○ Toyota
● 80'/90' – Workflow management
● 90' – Business Process Reengineering
○ Davenport etc..
● 2002 – Business Process Management
○ First BPM technologies Pioneers of BPM
● 2009 ++ AI in process mining, Social BPM, Dynamic
BPM, Case Management
History of BPM
Picture downloaded from http://www.what-is-bpm.com/bpm_primer/bpm_primer.html
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Business process definition
Definition:
Series of logically related activities or tasks (such as
planning, production, sales) performed together to
produce a defined set of results.
-- Business Dictionary:
A repeatable sequence of logically related activities,
which contributes to fulfilment of one or more business
objectives
-- Jiří Kolář
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1. Customer creates an Order
2. Order is reviewed by Sales
2.1. If price of the Order is lower than 40 000$, it
is accepted
2.2. If price is over 40 000$ it have to be
confirmed by Financial department
2.3. Order can be rejected by the department
3. Otherwise the order is processed
Process Example: Order
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Business Process Management
Management discipline for systematic
definition, execution and measurement of
processes in organizations
Picture downloaded from http://www.what-is-bpm.com/bpm_primer/bpm_primer.html
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BPM adoption - definition
A change in target organization towards the
establishment of a process-driven management
model.
This can, but does not necessarily have to, lead
to the automation of some processes in a
process-oriented Information Systems.
Such systems can be eventually based on
a Business Process Management Suite
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BPM adoption in practice
● Organisational and management changes
towards a process-oriented approach
○ Rengineering
○ Efficiency & quality measurement
○ Certifications, standards & legal compliance
● Tailoring organisation's Information Systems
towards process-oriented principles
○ Business integration (direct link business <-> IT)
○ High level technologies
○ Integration of legacy systems
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● Know-how codification
○ Value of processes as a know-how is increasing in
today's knowledge economy
○ Less vulnerability caused by employee fluctuation
● Performance and costs measurement
● Better business-change management
○ Changes can be performed easier
○ Impact of change can be measured
○ Important to choose good level of process rigidity
● Increased transparency
Why to adopt BPM?
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● Outsourcing and business services integration
○ Measurement of outsourced services quality
● Increase of quality
○ Better error detection and exception handling
○ Detection of bottlenecks & weak points of
organisation
○ Compliance with ISO standards (2000X, 9001)
● Better organisation of work-flow /process
○ Higher efficiency = reduction of costs
○ Early detection of problems
Why to adopt BPM? (cont.)
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Why to adopt BPM? (cont.)
● Flattening organisation's
hierarchy
○ Elimination of "silo effect"
○ Horizontal job character
Picture downloaded from http://www.what-is-bpm.com/bpm_primer/bpm_primer.html
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BPM adoption drawbacks :(
● High initial costs
○ Technologies & tools are expensive and not widely
available
○ Change is always expensive
● Change in people's mindset is necessary
(it hurts ;)
● Changes in organization structure
○ Fear of the change
○ Fear of job loss
● Agreement of all major decision-makers is
crucial (not so easy)
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Potential risks of BPM adoption
● Loss of business flexibility
○ Too high process rigidity
● Demotivated/Annoyed employees
● High investments in BPM solution
● Inefficient management changes
● Technological overkill
● Non-realistic process definitions
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Basic roles in BPM adoption
● Organisation's stakeholders (Owners,
Management, Customers, Partners etc.)
● Business analyst
○ Identifies and define processes that fulfil goals
● Process specialist
○ Model and implement processes, design service
integration
● System developer (Integration specialist)
○ Implements services and underlying system
components
● Process participants (Business workers)
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Questions?
Break 10mins
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BPM lifecycle
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Business
Process
analyst
Process
developer
Process
participant
● Roles identification
● Business Goals definition
● Objectives definition
● Identification of existing processes
● Process architecture (relationships)
● Reengineering of existing processes and
definition of new ones
● Metrics/KPI/KRI definition
(Key Performance/Result Indicators)
for Goals/Objectives
0. phase:
BUSINESS ANALYSIS
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● Goal: Identify/define valid and measurable
processes
○ Which objective is being fulfilled by the
process?
○ What is the value created by the process?
○ What are Inputs and Outputs of the
process?
○ Which metrics should be on the process?
○ Who is Process owner?
○ Which roles participate on process?
1. phase: DEFINE
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2. phase: MODEL
● Model logical structure of the process
○ Readable by all lifecycle participants
● (BPMN) Business Process Modeling
Notation
○ Graphical notations
○ Portability (Standard)
○ Based on Petri-Nets formalism
● Modeling tools
○ Stand-alone modeler
○ Modeler BPMS component
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3. phase: IMPLEMENT
● Implement human tasks
○ Forms, user interface
● Implement integrations
○ Connect integrated systems
○ Web services ,
○ REST
○ other service tasks
● Implement data model, data structures
○ Connect to data sources (databases)
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4. phase: MONITOR
● Reasons for process monitoring
○ Fault/Error detection
○ Performance measurement
○ Information for process improvement
● Business Activity Monitoring
○ Real-time process monitoring
○ Measurement of process metrics
● Key Performance/Result Indicators
○ Business performance
○ Derived from process metrics
Tracking of business goals fulfillment
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● Reasons:
○ Measured gaps in performance
○ Changes of process in real world
● Continuous process improvement:
○ Detection of inefficient parts of process
○ Bottlenecks, cost inefficiency
○ Design and validation of change (simulation)
○ Process modification
○ Deployment of optimised version
○ Monitoring
○ <> repeat until dead;
5.phase : OPTIMIZE
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BPM lifecycle
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Business
Process
analyst
Process
developer
Process
participant
Business Process Management System
“A suite of tools and software components
supporting the whole BPM lifecycle”
Usual BPMS components:
○ Process modeller
○ Process simulator
○ Execution engine
○ Process console (admin interface)
○ Human tasks engine (process user interface)
○ Business Rule engine
○ Business activity monitoring interface
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BPM lifecycle again
Picture downloaded from: http://docs.oracle.com/cd/E23943_01/user.1111/e15175/bpmug_intro_bpm_suite.htm 32
Human tasks
Process activities with necessary human
interaction
● Filling a form with data
○ Notifications, escalations, timeouts, delegation ..
● Common implementations
○ Portal style interface, Web 2.0 form frameworks
○ Proprietary BPMS vendor interfaces
● Often embeddable in other interfaces
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● Rules stored aside from process
● Specific rule language for evaluation
● Evaluated by Business Rules Engine
● Rule + Input data => Output
● Typically IF – THEN
● Rules types
○ Validation rules
○ Transformation rules
● Business Rule Engine often exposed as
an API REST/Web Service
Business Rules
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● Rules decision in Order process:
○ Rule has parameter (40 000$)
○
○
○
○
○
○
○ We change parameter or replace rule
○ Rules can be changed dynamically
Business Rules – Example
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Business Rules Management
system
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● Business object: Order
○ id – of an order
○ itemPrice – price of one item of order
○ quantity – quantity of item
● finDirDecisionNeeded – boolean identyfying if CFO's
decesion is necessary
● Rule evaluation language:
○ order_price = Order(eval( quantity * itemPrice ) )
● Rule itself
■ WHEN order_price > 40.000 THEN set
finDirDecisionNeeded = true
Business Rules example:
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Business Activity Monitoring
● Monitoring is important part of BPM lifecycle
○ Monitoring data are inputs for process
improvement
○ Early detection of problems
● Process metric examples
○ Order processing time, Order total price, Order state
● KPI examples:
○ Average time of order processing per day
○ Sum of prices of all Orders for this week
○ Number of cancelled Orders this week
○ Percentage of Orders with delayed payment
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Business Activity Monitoring -
Dashboards
● Monitoring of process data in real time
● Actions triggered when certain metric
value is reached
○ On screen, Email, SMS
Trigger action/process
● Custom set of figures on one page
● Configurable for every user
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BAM Dashboard
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Existing BPMS products
● Open source
○ JBoss BPM Suite
○ Activiti / Cammunda
○ PVM based
■ JBPM 3
■ Bonita
■ Orchestra
○ ApacheODE based
■ Project Levi
○ ++
● Proprietary
○ IBM BPM
○ Bizagi
○ Appian
○ Opentext/Metastorm
○ Pegasystems
○ Savvion
○ Signavio
○ TIBCO iProcess Suite
○ Oracle BPM suite
○ ARIS enterprise BPMS
○ ++
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○ BPMN method and style
Bruce Silver, 20099780982368107
○ Business Process Management: Practical
Guidelines to Successful Implementations
○ Business Process Management: A Rigorous
Approach
○ Business Process Management: Concepts,
Languages, Architectures
○ Essential Business Process Modeling
○ Smith, H. and Fingar, P.: Business process
management: the third wave
○ "Schedlbauer, M.: The Art of Business Process
Modeling: The Business Analyst’s Guide to Process
Modeling with UML and BPMN"
Extended books
(beyond course border)
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FIN
Questions?
PV207 – Business Process Management
Spring 2012 Jiří Kolář
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