1122013 Marcello La Rosa Queensland University of Technology Brisbane 10 October 2013 Assignment 1 Results Assignment 1 Common mistakes Models Generally good to highquality models but ID: 274874
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Slide1
Business Process Modelling-11.2/2013 -
Marcello La RosaQueensland University of Technology
Brisbane,
10 October 2013Slide2
Assignment 1 ResultsSlide3
Assignment 1 – Common mistakesModels:Generally, good to high-quality models, butLow labelling quality (event labels missing; message labels missing; issues with activity
labels)Improper vertical modularization (low-level model inconsistent with high-level one; sub-process construct not used)Format:Inconsistencies across sections (too good vs too bad models; good vs bad English)Introduction / conclusion – often too short, often lacking motivation of topic (why is this interesting? why do we do what we do?)Citations
of existing
literature (wrong or missing references)Slide4
BPM LifecycleSlide5
Process IdentificationWhat?Define an organization’s business processesEstablish criteria to prioritize the management of these processes
Why?Understand the organizationMaximize value of BPM initiativesOutput: Process ArchitectureCaptures business processes and their scopeServes as a framework for defining priorities and scope of subsequent BPM
phases (e.g. modelling
, redesign and
automation).Slide6
Designation phaseEnumerate main processesDetermine process scope: boundaries (horizontal and vertical) and interrelationships (order and hierarchical)Evaluation phase (a.k.a.
Process Selection)Evaluate processes’Alignment with strategic objectivesHealth (e.g. performance, compliance, sustainability…)Culture & politicsFeasibility to being successfully improvedRisk of not improving them
After Davenport
(1993)
Process Identification StepsSlide7
7Process EnumerationThere is no “number fits all” - it really depends on organization’s domain and size
Trade-off:ensuring process scope is manageable, sinceprocess scope determines potential impactSlide8
Process ScopingProcesses are interdependent Insights into interrelations requiredHorizontal: upstream – downstream processesVertical:
root (a.k.a. main) processes – sub-processesProcesses change over timeidentification should be exploratory and iterativeimprovement opportunities are time-constrained
Process ArchitectureSlide9
Process ArchitectureSlide10
Architecture: high level picture of an organization
After
Rummler
and
Brache
(1990)Slide11
“Process” Architecture
Value chainsSlide12
Components of a Process Architecture
Core ProcessesManagement Processes
Suppliers / Partners
Customers / Owners
Support Processes
After PorterSlide13
Core, Management and Support ProcessesSlide14
Process Architecture Example
Television New ZealandSlide15
Process Architecture Example
WA Water CorporationSlide16
Process Architecture Example
Strategic Management
Corporate
Development
Investor
Relations
Risk Assessment
and Management
Market
Development
Management Processes
Sales and Marketing
Underwriting
Management
Policy
Servicing
Claims
Management
Collections and Disbursement
Asset Management
Finance/
Treasury
Legal/
Audit
Reinsurance
IT
HR
Core Processes
Enabling Processes
An insurance companySlide17
Selected questions for scoping a processIf Process Architecture already in place: where does the process fit into the Process Architecture?On what level is the unit of analysis, i.e. end-to-end process, procedure or operation?What are the previous/subsequent
processes and what are the interfaces to them?What variants does this process have?What underlying processes describe elements of this process in more detail?Slide18
Various techniques to scope a process Identify relevant stakeholders and objectives, e.g. via a Stakeholder-Objectives MatrixIdentify relevant
context, e.g. via a SIPOC (Suppliers, Inputs, Process, Output, Customers) DiagramIdentify relevant process boundaries, e.g. via a Case/Function MatrixIdentify relevant guides and enablers, e.g. via an IGEO (Input/Guides/Enablers/Outputs) DiagramA combination of the aboveSlide19
Identify Process StakeholdersProcess owner, responsible for the effective and efficient operation of the process being modeled
Primary process participants, i.e. those who are directly involved in the execution of the process under analysisSecondary process participants, i.e. those who are directly involved in the execution of the preceding or succeeding processesSlide20
Identify Process ObjectivesPrimary (hard) process objectivesTime, cost, quality (minimise, maximise)
satisfaction, compliance, flexibility, predictabilitySecondary process objectivesTo purchase goods, to hire new staff membersAccompany with appropriate process metricsLet involved stakeholders define their priorities Slide21
Guidelines to identify horizontal boundariesChange of flow object in the processChange of multiplicity of flow object in the processChange of transactional state
Process contains logical separation in timeProcess contains logical separation in spaceProcess contains logical separation in other dimensionFollow scope in reference model (see later)Based on functions/cases coveredSlide22
A stepwise method to build process architectures
Case/function matrix (see Chap. 2 of textbook)Slide23
Identify vertical boundaries:typical artefacts in a Process HierarchyValue chainsA major line of business, has direct effect on a company's business results and strategic importance. Stays at a high level. For example: presentation of a product to the market.
(Root/Main) ProcessesProcesses build up value chains and mutually affect each other. For example: market research.Sub-processesSub-processes build up processes. They involve multiple activities and can be layered on different levels of granularity (i.e. sub-sub-processes). For example:
sales operation, preparation of sales budget, reception of customer orders.
Process tasks
Process tasks build up processes and sub-processes. These tasks are conducted by one or more individuals within the same function. For
example:
reception of customer orders involves review of these orders and incorporating them into the system.
Initial focus
of Process EnumerationSlide24
Logical
Levels
Physical
Levels
Business
Levels
Operations Levels
Process
Levels
Model structure, methodology and modelling standards
Shows groups of related business functions and standard end-to-end processes (e.g. Service Streams)
Decomposition of core processes into detailed ‘success model’ business process flows
Detailed operational process flows with error conditions and product and geographical variants (where required).
Further decomposition of detailed operational where required
Process Groupings
Business Activities
Core Processes
Business Process Flows
Detailed Process Flows
Level A
Level B
Level C
Level D
Level E
Level F
Operational Process Flows
Defines business activities
Distinguishes operational customer oriented processes from management and strategic process
Core processes that combine together to deliver Service Streams and other end-to-end processes
Meta
Level
© British Telecommunications
(
2006)
Hierarchy
Example
: British TelecomSlide25
Business Layer
Process Layer
Strategic View
Business
Value Streams
Business
Balanced Scorecard
Business
KPIs
Business Unit
Scorecard
Unit KPIs
Business Process
Value Streams
Business
Objectives
Business Unit
Objectives
Operational Unit
Objectives
Implementation
Process Groupings
Business Activities
Core Processes
Business Process Flows
Detailed Process Flows
Level A
Level B
Level C
Level D
Level E
Level F
Operational Process Flows
Davis (2005)Slide26
Process View
Service Streams
Process Service Lines
Resources
Detailed
Resources
Value Domains
Business Functions
Process Groupings
Business Activities
Core Processes
Business Process Flows
Detailed Process Flows
Level A
Level B
Level C
Level D
Level E
Level F
Operational Process Flows
Business Activities
Processes
Sub-processes
Detailed
Processes
Enabling Streams
Tasks
Steps
Operations
Business
Layer
Process
Layer
End-to-End
Processes
Core
processes
Implementation
Davis (2005)Slide27
Business Layer
Implementation
Process Layer
Operational Teams
Business
Organisation View
Operational Roles
Operational Units
Business Units
Process Groupings
Business Activities
Core Processes
Business Process Flows
Detailed Process Flows
Level A
Level B
Level C
Level D
Level E
Level F
Operational Process Flows
Davis (2005)Slide28
Business Layer
Process Layer
Data View
Business
Information
Cust
contact
Customer
Inquiry
Customer
credit
limit
Customer
Account
Customer
budget
Cust
1
cn
1
n
1
n
1
1
1
1
1
1
1
1
1
1
1
n
Customer
Offer
Corporate Data Model
Process
Information
Function Data
FunctionEntities
department
Title
Phone #
Function
Attributes
System
Entities
department
Title
Phone #
System
Attributes
Implementation
Process Groupings
Business Activities
Core Processes
Business Process Flows
Detailed Process Flows
Level A
Level B
Level C
Level D
Level E
Level F
Operational Process Flows
Procedural
Information
Davis (2005)Slide29
System
Types
System IT Functions
Screens
(System Specific)
Systems and
Modules
System Types and
Modules Types
System
Domains
Systems View
Process Groupings
Business Activities
Core Processes
Business Process Flows
Detailed Process Flows
Level A
Level B
Level C
Level D
Level E
Level F
Operational Process Flows
Business Layer
Process Layer
Implementation
Davis (2005)Slide30
Level A
Hierarchy Example: QLD Shared Service AgencySlide31
Level B
Level C
Hierarchy Example: QLD Shared Service AgencySlide32
Level D
Hierarchy Example: QLD Shared Service AgencySlide33
33Designation via Reference Models
industry-neutralenterprise modelOpen standard for benchmarkingFour levels
Categories
Process group
Process
Activity
Example: the
APQC Process Classification Framework (
PCF)Slide34
APQC PCF OverviewSlide35
35APQC Classification FrameworkSlide36
36APQC Classification Framework
Available industry sectors:Aerospace & DefenseAutomotive
Banking
Broadcasting
Consumer Electronics Just released
Consumer Products
Education
Electric Utilities
Petroleum Downstream
Petroleum Upstream
Pharmaceutical
Retail
TelecommunicationsSlide37
37The Evaluation Phase (aka Process Selection)
Importance Which processes have the greatest impact on the organization‘s strategic goals?Dysfunction Which processes are in the deepest trouble?
Feasibility
Which process is the most susceptible to successful
process management?
Process Portfolio Management
Hammer, Champy (1993)Slide38
Evaluation Example
Y
Process Health
Importance (priority)
High
Low
Good
Poor
L
O
Q
B
J
M
R
H
P
U
V
X
I
K
A
N
C
G
W
Z
D
E
T
F
0
4
Primary Focus
Process Portfolio of an Australian RetailerSlide39
Praeg
(2007)Evaluation ExampleProcess Portfolio of a bankSlide40
40The Evaluation Phase: nasty questions
Does an assessment of the importance, dysfuncioning and feasibility always point to the same processes to actively manage?Should all processes that are dysfunctional, of strategic importance and feasible to manage be subjected to BPM initiatives?Slide41
Alternative: Selection Project by ProjectProcesses are identified with every request froma line of businessEnsures high relevance for involved business unit
Reactive approach (-)Often restricted to discrete improvement (-)No conscious process selection approach (-)Slide42
Pitfalls of Process Identification (1/2)The purpose of the project is not clear enough leading to inappropriate scoping of the process.The
scope of the process is too narrow leading to the fact that later the identified root-causes are located outside the boundaries of the process under analysisThe scope of the process is too wide leading to a process improvement project that has to be compromised in its lack of detailSlide43
Pitfalls of Process Identification (2/2)The process is identified in isolation to other projects due to poor portfolio management leading to redundancies and inconsistencies between these projectsInvolved project members and stakeholders have not
been sufficiently informed about the benefits of the project leading to limited participationThe involved project members and stakeholders have not been carefully selected leading to a very limited source of knowledgeThe business process architect has poor facilitation skills and
cannot
resolve emerging conflicts between the project members and stakeholders.
Slide44
References
RequiredChapter 2 of textbook “Fundamentals of BPM”
Recommended
T.H
. Davenport,
“Process
Innovation: Reengineering Work Through Information
Technology”, Harvard
Business School Press,
1993
M. Hammer, J.
Champy
,
“Reengineering
the Corporation: A Manifesto for Business
Revolution”, HarperCollins,
1993M.E. Porter, “Competitive
Advantage: Creating and Sustaining Superior Performance”, Free Press, 1985
M. Rosemann, “Process Portfolio Management”, BPTrends, April 2006
R. Dijkman, I. Vanderfeesten
, H.A. Reijers, “The
road to a business process architecture: an overview of approaches and their use”. BETA Working Paper Series, WP 350. Eindhoven University of Technology, Eindhoven (2011)
Web-sites
http://www.value-chain.org (Value Reference Model)http://
www.mindtools.com/pages/article/newSTR_66.htm (more on value chains)http://www.apqc.org/process-classification-framework (
APQC PCF website)Slide45
A/Prof. Marcello La Rosa
IS School Academic Director(Corporate Programs and Partnerships)
BPM Discipline, IS
School
Science
& Engineering Faculty
Queensland University of Technology
p
+61 (0)7
3138 9482
e
m.larosa@qut.edu.au
w
www.marcellolarosa.com