Paul Harmon
The Evolution of BPM
The Evolution of Business Process Management Paul Harmon Executive Editor Business Process Trends © 2005, Business Process Trends
www.bptrends.com
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Process Integration in Nineties Executive Management Strategy Committee
Sales Department
Horizonally Integrated Business Process That Delivers A Specfic Product to a Targeted Group of Customers
© 2005, Business Process Trends
DCI BPM New Orleans
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Paul Harmon
The Evolution of BPM
Today: Horizontal & Vertical Alignment Executive Management Strategy Committee
Sales Department
Horizonally Integrated Processes From Suppliers to Customers
Vertically Integrated Measures, Managers, and Resources
Employees & IT Applications and Infrastructure
© 2005, Business Process Trends
www.bptrends.com
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Why the Interest in Business Process? • Make the company more efficient and productive by improving existing processes • Allow the company to shift goals or get into new businesses by providing the company with the ability to quickly and efficiently create new business processes • Keep focused on customers • Automate where reasonable © 2005, Business Process Trends
DCI BPM New Orleans
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Paul Harmon
The Evolution of BPM
Business Process Change Initiatives Process Management System
Activity Based Cost Accounting
Senior Executive
Management Dashboard
Financial System
Business Process Architecture Business Rules Mang. System
Value Chain
Near Real-Time Monitoring and Control System
Management Dashboard Value Chain Manager
BAM & Data W arehouse Process Manager
Process Manager
Process Manager
Processes Modeled and Optimized
Suppliers Resources
Customers Markets
Aligned HR System
Employees
Employees Employees
Application & Application & Databases Databases
Employees
Application & Databases
Employees
Employees
Application & Databases
Application & Databases
Aligned IT Architecture Process Components ERP System
Application & Databases
All Processes Managed by Enterprise BPM Systems
www.bptrends.com
© 2005, Business Process Trends
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We Have Lots of Technologies to Use 1980s
1990's
Porter's Value Chains
Management Business Process Redesign Performance Improvement
Balanced Scorecard Business Process Reengineering
Activity Based Costing
2000s BPO
SCOR
VCOR
Rummler-Brache Performance Improvement
Six Sigma
Quality Control
Total Quality Management
Lean
SEI's CMM for IT Workflow BPM Information Technology
Business Rule Management Systems
EAI Packaged Software (ERP, CRM)
Software Modeling Tools and Methodologies (CASE, UML, MDA)
© 2005, Business Process Trends
DCI BPM New Orleans
www.bptrends.com
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Paul Harmon
The Evolution of BPM
The BPTrends Pyramid Strategy Level
Plans & Goals
Process Management and Measurement
Value Chain Specific Process
Process Performed by Employees
Business Process Level
Process Automated by IT Systems
Implementation Level
Physical Plant and Hardware Used.
© 2005, Business Process Trends
www.bptrends.com
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Some of the Most Important Trends • • • • • • • • •
1. BP Management System 2. BP Architecture 3. BP Process Analysis & Redesign Approach 4. Business Rules Management System 5. BP Automation (BPMS) 6. IT Components Aligned with BP 7. BP-based Enterprise Monitoring System 8. HR Support Aligned with BP 9. Significant BP Outsourcing
© 2005, Business Process Trends
DCI BPM New Orleans
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Paul Harmon
The Evolution of BPM
An Aside on the Meaning of Process Value Chain Architecture SCOR Framework Business Process
Process Redesign Projects Business Rule Projects
Six Sigma Projects IT Automation Projects SAP Process Models
Business Process
Process
Process
Process
Sub-Process
Sub-Process
Sub-Process
Sub-Sub-Process
Sub-Sub-Process
Activity
© 2005, Business Process Trends
Business Process
Activity
www.bptrends.com
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1. BP Management System • Senior Management’s Vision: The ProcessCentric Company • Senior Management’s Goal: Coordinate and Prioritize all the diverse process initiatives • Train Managers to Manage Processes • Align Manager’s Incentives with Processes • A BP Redesign Group • Teams Trained to Undertake Constant Process Improvement (6 Sigma) © 2005, Business Process Trends
DCI BPM New Orleans
www.bptrends.com
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Paul Harmon
The Evolution of BPM
Coordinating the Management of Processes CEO Process Architecture Committee
Widget Process SVP Widget Process
Process Management Team
Executive Committee
Sales Department VP Sales
Manufacturing Department VP Manufacturing
Sales Supervisor
Manf. Supervisor
Sales Process
Manufacturing Process
Delivery Department VP Delivery
Delivery Supervisor
Delivery Process
Customer
Widget Value Chain
© 2005, Business Process Trends
www.bptrends.com
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2. BP Architecture • The key tool for process management • A high-level overview of the value chains and key processes that make up the organization • An alignment of strategic goals, value chains and key processes • A clear-cut way to monitor the performance of the value chains and processes (KPIs) • A BP Architecture is NOT an IT EA Architecture © 2005, Business Process Trends
DCI BPM New Orleans
www.bptrends.com
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Paul Harmon
The Evolution of BPM
Too Many Independent Hierarchies An Aligned Hierarchy of Organization Goals
An Aligned Hierarchy of Process Measures
An Aligned Hierarchy of Business Policies/ Rules
© 2005, Business Process Trends
An Aligned Hierarchy of Job Responsibilities
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We Need to Integrate Our Hierarchies
An Aligned Hierarchy of Organization Goals
An Aligned Hierarchy of Job Responsibilities
An Aligned Hierarchy of Process Measures
An Aligned Hierarchy of Business Policies/Rules
© 2005, Business Process Trends
DCI BPM New Orleans
www.bptrends.com
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Paul Harmon
The Evolution of BPM
BP Operation Reference Frameworks • A OR Framework is a template for a BP Architecture • The Supply Chain Council’s SCOR Framework • The TeleManagement Forum’s eTOM/NGOSS Framework • Hewlett Packard’s Framework Suite • The VCOR Initiative www.bptrends.com
© 2005, Business Process Trends
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SCOR MODEL: Level 1 Supply Chain
Plan Source
Make
Deliver
Return © 2005, Business Process Trends
DCI BPM New Orleans
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Paul Harmon
The Evolution of BPM
The Level 1 SCOR Notation P1
P1
P3
P3
P2
European RM Supplier
P4
S2
P1
M2
P2
P4
P2
P4
D1
S1
D1
S1
DR1
SR1
DR1
SR1
DR3
SR3
D2 S2
DR1
Key Other RM Suppliers
S1
M1
D1
RM Suppliers
SR1
M1
S1
ALPHA
Alpha Regional Warehouse
Customer
www.bptrends.com
© 2005, Business Process Trends
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SCOR’s Level 1 Scorecard Customer Facing Attributes
Performance Attribute
Performance Attribute Definition
The performance of the supply chain in delivering: the correct product, to the correct Supply Chain Delivery place, at the correct time, in the correct Reliability condition and packaging, in the correct quantity, with the correct documentation, to the correct customer. Supply Chain The velocity at which a supply chain provides Responsiveness products to the customer. The agility of a supply chain in responding to marketplace changes to gain or maintain competitive advantage.
Supply Chain Flexibility
Level 1 Metric Delivery Performance Fill Rates Perfect Order Fulfillment Order Fulfillment Lead Times Supply Chain Response Time Production Flexibility
Internal Facing Attributes
Cost of Goods Sold Supply Chain Costs
The costs associated with operating the supply chain.
Total Supply Chain Management Costs Value-Added Productivity Warranty / Returns Processing Costs
Supply Chain Asset Management Efficiency
© 2005, Business Process Trends
DCI BPM New Orleans
The effectiveness of an organization in managing assets to support demand satisfaction. This includes the management of all assets: fixed and working capital.
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Cash-to-Cash Cycle Time Inventory Days of Supply Asset Turns
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Paul Harmon
The Evolution of BPM
SCOR Benchmarks Provide Instant ROI Supply Chain SCORcard
EXTERNAL
Overview Metrics SCOR Level 1 Metrics
Industry Benchmarks Actual
Parity
Advantage
Superior
Value from Improvements
Delivery Performance to Commit Date
50%
85%
90%
95%
Supply Chain Reliability
Fill Rates
63%
94%
96%
98%
0%
80%
85%
90%
$30M Revenue
Responsiveness
Perfect Order Fulfillment Order Fulfillment Lead Times Supply Chain Response Time
35 days
7 days
5 days
3 days
$30M Revenue
97 days
82 days
55 days
13 days
Key enabler to cost and asset improvements
Production Flexibility
45 days
30 days
25 days
20 days
Total SCM Management Cost
19%
13%
8%
3%
$30M Indirect Cost
Warranty Cost
NA
NA
NA
NA
NA NA
Flexibility
INTERNAL
Cost
Assets
Value Added Employee Productivity Inventory Days of Supply Cash-to-Cash Cycle Time Net Asset Turns (Working Capital)
© 2005, Business Process Trends
NA
$156K
$306K
$460K
119 days
55 days
38 days
22 days
NA
196 days
80 days
46 days
28 days
$7 M Capital Charge
2.2 turns
8 turns
12 turns
19 turns
NA
www.bptrends.com
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3. BP Process Analysis & Redesign • New processes need to be designed • Inefficient or ineffective processes need to be redesigned • Processes that work need to be improved • The entire effort needs to be coordinated with methodologies, software tools, and a repository © 2005, Business Process Trends
DCI BPM New Orleans
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Paul Harmon
The Evolution of BPM
The Types of BP Methodologies Mangement and Measurement Issues Involved Establishing Strategy and Goals
Strategy and Goals
Mangement and Measurement Issues Involved in Executing Actual Business Processes and Activities
Management and Measurement Issues Involved in the Implementation of BPM solutions.
Organization Performance
Broad Based BP Change Methodologies BP Architecture
Plans, Budgets, Hiring, Resource Allocation, Feedback, Consequences
Business Process Level
Business Process BP Analysis & Redesign
Narrow Specific Activity Focused BP Change Methodologies Human Resource Architecture Activity Management Plan
Strategy Level
Activity Measurement Plan Activity/ Performance Monitoring System
Implementation Level
IT Architecture
Job Design
Human-IT Interface Model
Application Architecture
Job Aids, Training Programs, Knowledge Management System
Screens and Reports
Application Designs and Code
Data Architecture
Network Architecture
Logical Level
Database Technology Physical IT Focused BPArchitecture Designs and Level Data Change Management Hardware Architecture Methodologies Systems
Physical Plant and Hardware Used.
© 2005, Business Process Trends
www.bptrends.com
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BP Methodologies • Broad BP Change Methodologies – Process Renewal Methodology (PRG) – Rummler Methodology (PDL) – xBML Methodology (Business Genetics)
• More Focused Process Change Methodologies – – – –
Balanced Scorecard Six Sigma DMAIC Proteus Business Rules Methodology (BR Solutions) ARIS Methodology (IDS Scheer)
• IT Automation Methodologies – UREP Methodology (Rational/IBM) – IDEF Methodology – Martin Ould’s RIVA Methodology © 2005, Business Process Trends
DCI BPM New Orleans
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Paul Harmon
The Evolution of BPM
Six Sigma and BPM 1. Define
2. Measure
3. Analyze
4. Improve
5. Control
Plan Project
Identify Measures
Analyze Data
Implement Measurement
Document and Maintain
1. Define project 2. Identify customer requirements 3. Document process 4. Set goal
1. Identify Measures 2. Define measures 3. Develop & test data collection methods 4. Define baseline measures
1. Analyze date 2. Explore possible causes and test hypothesises 3. Identify causes
1. Document and keep score of results
1. Select a soluton 2. Pilot test solution 3. Implement full scale solution
1-2 wks.
ongoing 1-2 wks.
4-8 wks 2 wks.
34.13%
2.14%
13.06% -3
-2
-1
0.13%
+1
mean 68.26%
+2
0.13%
+3
95.46% 99.73%
www.bptrends.com
© 2005, Business Process Trends
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An Aside: BPM Software Product Space Graphics Tools
Organization Modeling Tools
Statistics Tools
BP Modeling Tools
Business Process Architecture Tools
Process Simulation Tools
Modeling Capability + Repository
BP Languages
Business Rule Management Tools
XML DSLs and BPEL, BPML
Tool for creating, storing and using business rules.
Universal BP Repository
BPM Suites
EAI Tools
Modeling Capability + BPM Engine
Workflow Tools
Application Servers
Software Development Suites
BPM Applications Modeling Capability + BPM Engine + Application Components
BP Monitoring Tools Modeling Capability + Ability to Monitor Runtime Process+ Dashboard Capability
Database capable of storing information from all the BP tools.
Packaged/ Enterprise Application Suites
BI and Data Warehouse Products
© 2005, Business Process Trends
DCI BPM New Orleans
www.bptrends.com
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Paul Harmon
The Evolution of BPM
BP Architecture, Modeling & Simulation Tools Graphics Tools
Organization Modeling Tools
Statistics Tools
BP Modeling Tools
Business Process Architecture Tools
Process Simulation Tools
Modeling Capability + Repository
BP Languages
Business Rule Management Tools
XML DSLs and BPEL, BPML
Tool for creating, storing and using business rules.
Universal BP Repository
BPM Suites
EAI Tools
Modeling Capability + BPM Engine
Workflow Tools
Application Servers
Software Development Suites
BPM Applications Modeling Capability + BPM Engine + Application Components
BP Monitoring Tools Modeling Capability + Ability to Monitor Runtime Process+ Dashboard Capability
Database capable of storing information from all the BP tools.
Packaged/ Enterprise Application Suites
BI and Data Warehouse Products
© 2005, Business Process Trends
www.bptrends.com
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Business Process Modeling Tools • Include architecture, process modeling and simulation capabilities • Are holding their own against BPM Suites that also include modeling capabilities • Are popular with managers and redesign teams
© 2005, Business Process Trends
DCI BPM New Orleans
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Paul Harmon
The Evolution of BPM
Some BP Architecture, Modeling & Simulation Tools
• • • • • • • • • •
CACI’s SIMPROCESS Holocentric’s Holocentric IDS Scheer’s ARIS iGrafx’s iGrafx Process MEGA International’s MEGA Mi Services’ Mi SCOR Popkin Software’s System Architect Proforma’s ProVision ProModel’s Process Simulator xBPM Innovations’ xBPL 2005 Modeling Suite www.bptrends.com
© 2005, Business Process Trends
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4. Business Rule Management Tools Graphics Tools
Organization Modeling Tools
Statistics Tools
BP Modeling Tools
Business Process Architecture Tools
Process Simulation Tools
Modeling Capability + Repository
BP Languages
Business Rule Management Tools
XML DSLs and BPEL, BPML
Tool for creating, storing and using business rules.
Universal BP Repository
BPM Suites
EAI Tools
Modeling Capability + BPM Engine
Workflow Tools
Application Servers
Software Development Suites
BPM Applications Modeling Capability + BPM Engine + Application Components
BP Monitoring Tools Modeling Capability + Ability to Monitor Runtime Process+ Dashboard Capability
Database capable of storing information from all the BP tools.
Packaged/ Enterprise Application Suites
BI and Data Warehouse Products
© 2005, Business Process Trends
DCI BPM New Orleans
www.bptrends.com
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Paul Harmon
The Evolution of BPM
Business Rules Management • Goal: Abstracting business rules from policy manuals, software, and from training programs and saving them in a repository so they can be systematically managed • The effort needs to be aligned with business process efforts • OMG Business Rule Standards • Business Rules Community – www.brcommunity.com
• Business Rule Management Vendors © 2005, Business Process Trends
www.bptrends.com
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5. BP Automation: BPM Systems • The idea of using software to manage processes in something close to real time • New and confusing • Most companies are just exploring the idea and it will evolve rapidly over the course of the next 2-3 years • There are no clear winners yet: Most companies are yet sure how they’ll use this technology © 2005, Business Process Trends
DCI BPM New Orleans
www.bptrends.com
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Paul Harmon
The Evolution of BPM
What Is a BPM Suite?
Logical Description of the Process
Software Tool That Displays a Graphical View of a Process
A
B
C
D
E Software Tool (Engine) That Manages Links Between Diagram and Impelementation
BPMS Engine Software Component B
Physical Implementation of the Process
Software Component C
Enterprise Application Module D
Enterprise Application Module E
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© 2005, Business Process Trends
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The Key is Controlling the Business Process Business Analyst Interface
Logical Description of the Process Software Tool That Displays a Graphical View of a Process
C
BPMS Engine
A
B
Software Tool (Engine) That Manages Links Between Diagram and Impelementation
D User Interface Software Component C
E
Enterprise Application Module D
Software Component B
Enterprise Application Module E
Physical Implementation of the Process
© 2005, Business Process Trends
DCI BPM New Orleans
www.bptrends.com
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Paul Harmon
The Evolution of BPM
BPM Suites Graphics Tools
Organization Modeling Tools
Statistics Tools
BP Modeling Tools
Business Process Architecture Tools
Process Simulation Tools
Modeling Capability + Repository
BP Languages
Business Rule Management Tools
XML DSLs and BPEL, BPML
Tool for creating, storing and using business rules.
Universal BP Repository
BPM Suites
EAI Tools
Modeling Capability + BPM Engine
Workflow Tools
Modeling Capability + BPM Engine + Application Components
BP Monitoring Tools
Application Servers
Software Development Suites
BPM Applications
Modeling Capability + Ability to Monitor Runtime Process+ Dashboard Capability
Database capable of storing information from all the BP tools.
Packaged/ Enterprise Application Suites
BI and Data Warehouse Products
www.bptrends.com
© 2005, Business Process Trends
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A BPM Continuum Languages provide the maximum flexibility and require the most work to get to a complete BPM system. These products are invariably used by IT developers Languages
Vendors who sell languages, like BPEL or Java
BPM Servers Vendors who sell BPM server platforms
Applications provide the minimum flexibility and require the lest work to get to a complete BPM system. These products can be used by business users. Tools/Utilities
BPM Suites
BPM Suites +Frameworks
Complete BPM Applications
Vendors who sell stand alone tools or utilities.
Vendors who sell BPM Suites
Vendors who sell BPM Suites with frameworks or templates
Vendors who sell complete BPM systems or applications.
BP Modeling Vendors Business Rule Mang. System Vendors BAM Monitoring Vendors
© 2005, Business Process Trends
DCI BPM New Orleans
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Paul Harmon
The Evolution of BPM
A Layer Diagram of the BPM Space BPM System or Applications
BPMS Application
An application that implements a process that can be examined and changed dynamically.
BP Knowledge Frameworks User Interfaces to Support Specific Processes
Rules for Specific Processes
Process Measures for Specific Processes
Models for Specific Processes
Software Components or Modules
BPM Suite
BPM SUITE BPM Tools/Utilities User Interface Tools
BPM Server (Engines)
Process Modeling Tool
Business Rule Engine
Language/Platform
© 2005, Business Process Trends
Process Monitoring Tools (BAM)
BPM Engine (employees)
BPM Engine (Software)
J2EE
BPEL
Software Requirements Tool
XML
Eclipse
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Some BPM Suite Vendors • • • • • • • • • • •
Appian’s Appian Process Engine Ascentn’s AgilePoint BPMS B2B Internet’s XicoBPM Chordiant’s Straight Through Service Processing CommerceQuest’s TRAXION Enterprise BPM Suite Eg Solutions’ eg Work Manager Filenet’s Filenet Business Process Manager PegaSystems’ PegaRULES Process Commander TIBCO’s TIBCO Staffware Process Suite Ultimus’ Ultimus BPM Suite IBM’s WebSphere Business Integration suite
© 2005, Business Process Trends
DCI BPM New Orleans
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Paul Harmon
The Evolution of BPM
BPEL and BPMN • Being embraced rather than understood • BPEL is currently only a variation on EAI • Maybe a BPEL+ can support both employee and IT activities, but that is in the future • BPMN is a nice notation that hasn’t got much traction yet; ultimately it’s an extension of UML’s Activity Diagrams © 2005, Business Process Trends
www.bptrends.com
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Petri Nets and Pi Calculus • There are groups meeting to sort out the underlying basis for process automation • There will be meetings on this in 2005 • They will probably get passed up by the vendors and user companies who will select more pragmatic solutions
© 2005, Business Process Trends
DCI BPM New Orleans
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Paul Harmon
The Evolution of BPM
6. IT Components Aligned with BP • Ultimately BPM relies on software components • They will need to be developed or changed as processes change • Thus, BPM needs a clean link to Software Development technologies • UML, MDA, and components
www.bptrends.com
© 2005, Business Process Trends
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The OMG’s Model Driven Architecture ComputationIndependent Model (CIM) Created by Business Analysts to Describe Business
CIM >> PIM Mapping
PlatformIndependent Model (PIM) Created by Architect/ Designer to Describe Archtiecture
PIM >> PSM Mapping
Platform-Specific Model (PSM)
Created by Developer or Tester to Implement Solution
© 2005, Business Process Trends
DCI BPM New Orleans
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PSM >> Code Mapping
Code
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Paul Harmon
The Evolution of BPM
The OMG’s BP Metamodels MOF Meta Object Facility XMI
UML 2.0
Ontology Metamodel
Various BP Tools
BPMN
Business Rules Metamodel
Business Process Definition Metamodel
J2EE
Various BP Tools
BPEL
41
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© 2005, Business Process Trends
A BP Repository and MDA Graphics Tools Can Create Diagrams. No Repository.
Organization Modeling Tools
BP Modeling Tools
Business Process Architecture Tools
BP Languages
Statistics Tools Used to Support 6 Sigma Projects
Modeling Capability + Repository
Process Simulation Tools
Business Rule Management Tools
XML DSLs and BPEL, BPML
Tool for creating, storing and using business rules.
EAI Tools
Universal BP Repository
BPM Suites
Software Development Suites
BPM Applications
Modeling Capability + BPM Engine
Workflow Tools
BP Monitoring Tools Modeling Capability + Ability to Monitor Runtime Process+ Dashboard Capability
Adaptive IBM BEA Oracle
Database capable of storing information from all the BP tools.
Modeling Capability + BPM Engine + Application Components
Application Servers
• • • •
Packaged/ Enterprise Application Suites
BI and Data Warehouse Products
© 2005, Business Process Trends
DCI BPM New Orleans
www.bptrends.com
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Paul Harmon
The Evolution of BPM
7. BP-Based Enterprise Monitoring Systems Graphics Tools
Organization Modeling Tools
Statistics Tools
BP Modeling Tools
Business Process Architecture Tools
Process Simulation Tools
Modeling Capability + Repository
BP Languages
Business Rule Management Tools
XML DSLs and BPEL, BPML
Tool for creating, storing and using business rules.
Universal BP Repository
BPM Suites
EAI Tools
Modeling Capability + BPM Engine
Workflow Tools
Application Servers
Software Development Suites
BPM Applications Modeling Capability + BPM Engine + Application Components
BP Monitoring Tools Modeling Capability + Ability to Monitor Runtime Process+ Dashboard Capability
Database capable of storing information from all the BP tools.
Packaged/ Enterprise Application Suites
BI and Data Warehouse Products
© 2005, Business Process Trends
www.bptrends.com
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BP-Based Enterprise Monitoring Systems
• Everyone seems to think its part of BPM Systems • It’s important to discriminate between monitoring a specific process and providing information for senior managers • Business Performance Management, BAM, BI and Data Warehouses – The BPM Forum – IBM/OASIS Events Standard © 2005, Business Process Trends
DCI BPM New Orleans
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Paul Harmon
The Evolution of BPM
Process Monitoring vs. Value Chain Monitoring Strategy Level
CEO
Staff Manager
4
4
VP Line Mang
3
Manager
2
3
Process Supervisor
2
Value Chain Level
Process Level
Plan & Staff
Filtered & Summarized Information
Monitor & Control
Business Process or Activity - Execution
Activity and Implementation Levels
1
BI Application
Application that automates part of activity
Data Warehouse
4GL System Creates Inventory Report
Database for Appl. Data
Other Databases
45
www.bptrends.com
© 2005, Business Process Trends
BPM Applications Graphics Tools
Organization Modeling Tools
Statistics Tools
BP Modeling Tools
Business Process Architecture Tools
Process Simulation Tools
Modeling Capability + Repository
BP Languages
Business Rule Management Tools
XML DSLs and BPEL, BPML
Tool for creating, storing and using business rules.
Universal BP Repository
BPM Suites
EAI Tools
Modeling Capability + BPM Engine
Workflow Tools
Application Servers
Software Development Suites
BPM Applications Modeling Capability + BPM Engine + Application Components
BP Monitoring Tools Modeling Capability + Ability to Monitor Runtime Process+ Dashboard Capability
Database capable of storing information from all the BP tools.
Packaged/ Enterprise Application Suites
BI and Data Warehouse Products
© 2005, Business Process Trends
DCI BPM New Orleans
www.bptrends.com
www.bptrends.com
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Paul Harmon
The Evolution of BPM
Packaged Applications vs. BPM Apps • Traditional Packaged Applications are difficult to understand or to change • BPM applications will incorporate Process Models and BPM Enginbe based to make them easier to manage and change • Packaged application vendors will attempt to transition to BPM (SAP’s NetWeaver) • BPM Suite vendors will evolve into BPM application vendors • This is a very important part of BPM that has hardly begun © 2005, Business Process Trends
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8. HR Support Aligned with BP • BPM Suites will place more importance on analyzing employee activities and aligning them with business processes • Aligning Knowledge Management with processes • Aligning employee incentives and feedback with processes • Aligning training with processes • www.ispi.org © 2005, Business Process Trends
DCI BPM New Orleans
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Paul Harmon
The Evolution of BPM
The ISPI Human Performance Model Process Defined Activity Specifications Activity Support
Expense Reports
activity measures Activity: Enter Expense Reports
*
Updated Expense Report Ledger
Consequences
Feedback 4. Consequences
Skill, Knowledge & Capability Feedback
© 2005, Business Process Trends
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9. Business Process Outsourcing • We are going to create more decentralized organizations, using outsourcing • The key is managing BPO is to have a good BP architecture and to manage with process-oriented techniques • BPO vendors will become major advocates and consumers of BPM
© 2005, Business Process Trends
DCI BPM New Orleans
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Paul Harmon
The Evolution of BPM
Some of the Most Important Trends • • • • • • • • •
1. BP Management System 2. BP Architecture 3. BP Process Analysis & Redesign Approach 4. Business Rules Management System 5. BP Automation (BPMS) 6. IT Components Aligned with BP 7. BP-based Enterprise Monitoring System 8. HR Support Aligned with BP 9. Significant BP Outsourcing www.bptrends.com
© 2005, Business Process Trends
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SUMMARY • The challenge is the management of business process change • We have too many technologies and not enough focus on why we should do BPM in the first place • We manage processes to improve corporate performance • Companies need to set goals, develop a strategy, and then create a BP organization that can organize and coordinate their BPM resources © 2005, Business Process Trends
DCI BPM New Orleans
www.bptrends.com
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Paul Harmon
The Evolution of BPM
For More Information
www.bptrends.com The most comprehensive source of information and analysis on trends, directions and best practices in Business Process Management
[email protected] [email protected] © 2005, Business Process Trends
DCI BPM New Orleans
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