Business analysis
&
BPM methodologies
PV207 – Business Process Management
Spring 2021 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
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Last lecture recap
● Processes
○ What is business
process?
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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
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
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Last lecture recap
● Processes
○ What is business
process?
○ What is BPM?
○ What is BPM adoption?
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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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9
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
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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
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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
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Relationship of IT services and BPM
(cont.)
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Relationship of IT services and BPM
(cont.)
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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
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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
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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:
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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
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● 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"
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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." 23
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: Users will get flexible support for their IT devices
● Objectives
○ Narrow, concrete easy to measure
○ Achievable in mid-to-short term
○ Related to a goal
Objective: Any PC related issues resolved in 2 days
Objective: Average incident resolution will be less than 6hrs
Objective: Network problems will be resolved in 24 hrs
Objective: First reply for reported incident will be less than 2 hrs
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Performance measurement
● Metric
○ Related to one instance of object/process/service
Metric: Incident resolution time
Metric: Incident severity
● Performance Indicator 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 KRI
○ Result from the past = input for planning
○ Indicator of recent business performance
KRI: Unresolved incidents this month, quartal average incident solving time
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Measurement guidelines
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● 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
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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
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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
■ KRI: 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
■ KPI: number of simultaneously connected users
■ KRI: Monthly service downtime 29
Library scenario:
Stakeholders involved
● State administrative (Regulations,state
funding)
● Library management
● Library employees (staff)
● Readers = Customers
● Banks (online payments)
● Business partners (device resellers)
● Service providers (digital libraries)
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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
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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
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Library scenario:
Process: Charge internal credit
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Library scenario:
BPMN: Charge internal credit
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● Company name
○ “What do we do”
○ Goal
■ Objective
● KPI/KRI PI/RI
● Process
○ Metric
● Process
■ Objective
● KPI/KRI PI/RI
● Process
○ Service
■ Metric
○ Service
■ Metric
Analysis structure recap
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FIN
Questions?
PV207 – Business Process Management
Jiří Kolář
36