Business analysis
&
BPM methodologies
PV207 – Business Process Management
Spring 2024 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
● Airlines scenario:
○ Strategy and vision
○ Goals, objectives and
KPIs
○ Stakeholders
identification
○ Processes and services
○ Process description
○ Process BPMN diagram
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Semestertime
Practice
Seminars
Process ModelingTechnologyBusiness
Project
PV207 helicopter view
3
BPM
Fundamentals
System
Integration I
System
Integration II
Business &
Domain analysis
BPMN modeling
L1
BPMN modeling
L2
BPMN modeling
Best practices
Project
intermezzo
Guest lecture
BPMS
Process
Architecture
Economic
Aspects
BPMS technology
Project
consultations
HW 2 modelling
HW 1 installation
HW 3 modeling
Lecture
Homework
Project
Legend:
Discipline
Seminar
NOW
Integration recap
First 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
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First lecture recap
● Processes
○ What is business
process?
○ What is BPM?
7
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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First 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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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
● "Technical" 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
Relationship of IT services and BPM
● Process can be decomposed to activities
● Many automated activities are implemented as
services (service orchestration)
● Often we want to assemble our processes from
existing services
● Integration of independent IT services provide
flexibility (services/systems can be replaced)
● Decoupling process implementation from proces logic
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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
● Summarize 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." 24
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: There will be no network outages during business hours
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
Airline scenario
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Airline travel is full of selling , requests,
instructions, rules and advertising. Traveller in
fact become a product sold to advertisers.
Example: Dreaming Airlines
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Some travellers just want to relax during travel
Example: Dreaming Airlines
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Example: Dreaming Airlines
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Vision
Turn travelling into peaceful comfort time and the best
opportunity for your relaxing and dreaming.
Mission
To offer travelers a reliable and comfort airline to
peacefully travel across entire Europe without
irritation by redundant commerce and advertising.
Example: Dreaming Airlines
Goals and objectives
Goal: Provide peaceful airtime so travelers can relax
● Objective: Do not disturb with any unwanted interaction
○ KPI: Number of unwanted interaction needed per flight
○ KRI: # of flights with more than 2 traveller interaction excess
● Objective: Provide an app to cover all customer interaction quietly
○ KPI: Number of open customer requests in airborn flights
○ KRI: Necessary traveller interactions without the app (per flight)
○ Process: onboard customer (in the app)
■ Service: User ID Verification +
■ Service: SMS/email verification
○ Process: Food order
■ Service: Payment
● Metric: Payment success rate
○ Process: Customer request
■ Metric: waiting time 32
Example: Dreaming Airlines
Stakeholders involved
● Air traffic control
● Airports
● Company management
● Company employees (staff)
● Travellers=Customers
● Banks (online payments)
● Business partners (resellers, co-sellers)
● Service providers (onboard gastronomy)
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Example: Dreaming Airlines
BPMN: Food order
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● Idea should be innovative and competitive
○ Business strategy should be complex enough
○ Just another bar in Brno doesn't fit
● There has to be enough processes to model
○ You will need 8 complex ones for your project
○ “Ice cream store”, “Private detective” doesn't fit
● IT process automation has to be relevant
○ You have to implement automated processes
○ Law firm or Scout camp doesn’t fit
How to pick a good domain
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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
37
● Idea should be innovative and competitive
○ Business strategy should be complex enough
○ Just another bar in Brno doesn't fit
● There has to be enough processes to model
○ You will need 8 complex ones for your project
○ “Ice cream store”, “Private detective” doesn't fit
● IT process automation has to be relevant
○ You have to implement automated processes
○ Law firm or Scout camp doesn’t fit
How to pick a good domain
38
● 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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