Business analysis
&
BPM methodologies
PV207 – Business Process Management
Spring 2019 Jiří Kolář
1
Lecture overview
● Why a methodology for
BPM development?
● Methodology overview
● BPM and SOA again
● BPM development
approaches
○ Top down
○ Bottom up
○ Meet in the middle
● Library scenario:
○ Strategy and vision
○ Goals, objectives and
KPIs
○ Stakeholders
identification
○ Business components
○ Processes and services
○ Process description
○ Process BPMN diagram
2
Last lecture recap
● Processes
○ What is business
process?
3
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
4
Last lecture recap
● Processes
○ What is business
process?
○ What is BPM?
5
Is a Management discipline, focused on
systematic definition and execution
measurement of processes in organizations
● An effort to describe processes in
organisation measure results and manage
process changes towards higher efficiency
Business Process Management
6
Last lecture recap
● Processes
○ What is business
process?
○ What is BPM?
○ What is BPM adoption?
7
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
8
Why we need specific methodologies
for BPM-oriented development?
● BPM differ significantly from traditional
data-based approach to system design
○ Special analysis & 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
9
Some BPM methodologies
● General BPM methodology (Mathias Weske)
○ Rather general, End-to-end, very complete
● CBM-BPM-SOMA
○ IBM specific, proprietary, tight with IBM technologies
● IBPM
○ Focused on general organization of a BPM project
○ Emphasis on SOA-based implementation
● BPM4SME
○ End-to-end
○ Focused on small scale BPM adoptions
10
3 meanings of the word "service"
● "Business" service
○ Google offers paid advertising to restaurants
○ Defined by contract / service offering
3 meanings of the word "service"
● "Business" service
○ Google offers paid advertising to restaurants
○ Defined by contract / service offering
● "Technical" service
○ Google provides a search for addresses of
restaurants in neighbourhood
○ Defined by a User Interface / Programming interface
3 meanings of the word "service"
● "Business” service
○ Google offers paid advertising to restaurants
○ Defined by contract / service offering
● “IT” service
○ Google provides a search for addresses of
restaurants in neighbourhood
○ Defined by a User Interface / Programming interface
● Web Service
○ Google provides Web Service API for retrieving GPS
coordinates of particular address
○ Defined by a WSDL/REST methods definition
○ Request - response model
● 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
● IT services are ke building stones of an
automated BPM solution
● IT services provide flexibility we need to
achieve process evolution and improvement
Relationship of IT services and BPM
14
Relationship of IT services and BPM
(cont.)
15
Relationship of IT services and BPM
(cont.)
16
Top down BPM development
approach
● Sumarize business strategy: vision&mission
● Identify/Define business goals and objectives
● Define/Identify processes and roles
● Implement executable processes
● Reuse/Implement required services
and SW components
17
Bottom up BPM development
approach
● Identify services on lowest level (code)
● Identify composed services
● Discover processes (by hand, algorthmic)
● Refine processes
● Align with goals
and strategy
18
Reality: Meet in the middle
● Top down
○ Define/refine strategy
and vision
○ Identify/refine goals
and components
○ Define KPI/KRI
○ Identify/define
processes
● Bottom up
○ Identify existing
services and SW
components
○ Identify composed
services
○ Assign to processes
In parallel:
19
Recap (Lecture 1):
BPM adoption phases
0. Business analysis
○ Roles
○ Goals
○ Objectives
○ AS-IS processes
○ Process architecture
○ Reengineering plan
○ KPIs/Business Metrics
1. Process definition
○ Process boundaries
○ Business value
○ Inputs/Outputs
○ Process metrics
○ Process Owner
○ Roles
2. Process modeling
○ Process models L1+L2
○ (BPMN + text)
3. Implementation
○ Executable models
○ BPMN L3, BPEL, other
4. Monitoring
○ Fault/error detection
○ Performance measurement
○ Tracking goal fulfillment
5. Process Improvement
○ Process changes
Image from: http://www.what-is-bpm.com/get_started/bpm_methodology.html
20
● An organisation should state clearly it's
purpose and business goals
○ This is important for outside world as much for the
company itself
● There has to be a mechanism of goal
achievement evaluation
● Evaluation has to be performed regularly
● Results are used as an input for continuous
business improvement
● Organisation reflects changes in Business
environment by adjusting its strategy
Business strategy:
"A way we want to go"
21
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
○ Answers: 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." 22
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
23
Performance measurement
● Metric
○ Related to one instance of object/process/service
Metric: Incident resolution time
Metric: Incident severity
● Performance Indicator/ Key PI ~ KPI
○ Current/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 business performance
KRI: Unresolved incidents this month, quartal average incident solving time
24
Measurement guidelines
25
● An indicator has to have a discrete value in
each moment in time
● Targets have to be set and justified
● Give a frame to your indicators
○ Time frame, milestone, limit
■ Wrong: number of logged incidents
■ Correct: number of logged incidents per week
● Indicators has to be related to a
goal / objective / SLA / contract..
Example
Library scenario
26
Business Strategy:
● Vision
We foster knowledge of people by providing ultimate
library services. We make book rental process easy
and accessible to anybody.
● Mission
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
27
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 (DL)”
■ KRI: Number of accesses per DL / 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 high-speed WIFI for mobile devices
■ KPI: average response time of service today
■ PI: number of simultaneously connected users
■ KRI: Monthly service downtime 28
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)
29
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
30
Library scenario:
Processes and services (cont.)
● Objective: Introduce 3-steps-3-minutes
e-payment method
○ Process: Direct electronic payment
■ Service:Verify payment credentials
● Composed service: Create invoice
● Metric: Manual corrections necessary
○ Service: Retrieve payment details
■ Metric: processing time
○ Service: Retrieve order details
■ Metric: processing time
31
Library scenario:
Process: Charge internal credit
32
Library scenario:
BPMN: Charge internal credit
33
● Goal
○ Objective
■ KPI/KRI PI/RI
■ Process
● Metric
■ Process
○ Objective
■ KPI/KRI PI/RI
■ Process
● Service
○ Metric
● Service
○ Metric
Analysis structure recap
34
FIN
Questions?
PV207 – Business Process Management
Jiří Kolář
35