Business Process Management Les 1: Een inleiding (Capita Selecta van de BPM) V2.3 Bron dia’s: Cordys, Euroforum, Oracle, Microsoft, TUE, Gartner e.v.a.

Waarom Slim werken Cases Baderie SOMI, ING NN verzekeringen Wehkamp 1

Snelheid van zaken doen Strategic Planning Assumption: The velocity of business processes and the related need to decrease information “float” will continue to accelerate through 2008 (0.9 probability). 6 weken 1 maand 107 106 105 104 1,000 100 10 1 Seconden 1 uur Aandelenkoers Brief … fax … e-mail 3 dagen 45 seconden Documentuitwisseling Interne opvragingen Buitenlandse order Dell PC ontvangen data warehouse info Vliegtuigtickets Kredietwaardigheid Leverancier update 24 uur 5 dagen 1 dag 30 minuten 5seconden 20 minuten 30 seconden 8 uur 10seconden 5 minuten 15 minuten GSM activatie Speed underlies many management strategies, including “the zero-latency enterprise,” “time-based competition” and “just-in-time” inventory. When an order is placed online, there is an expectation that the goods will arrive faster. When people apply for an insurance policy or submit a claim, they expect a quicker decision and more visibility into the process. These expectations require remaking supply and distribution infrastructures. An extreme example of increased business velocity is Dell. The entire process — talking to the customer, configuring a system, manufacturing, testing, shipping and transferring funds from the customer’s bank account to Dell — takes less than 24 hours (in some cases). Short “quote-to-cash” cycle times require fast, closely knit application integration. Dell demands 15-minute response from its suppliers, but suppliers also get paid faster. Similar examples abound in many other sectors. Law firms have accelerated many aspects of the legal profession merely by leveraging faster delivery and immediate turnaround of documents through e-mail. Note: “float” is the time between when new information is captured in one place and when it becomes available and usable elsewhere. Action Item: Business and IS managers must identify their unique opportunities for improving business results by accelerating the speed at which certain processes are executed.

'Aligning IT and business goals is the number 1 management priority' Business Drivers 'Aligning IT and business goals is the number 1 management priority' Research among 500 CIO's, January 2006 Revenue Cost 2006 New Business Models Rapidly shifting customer demands New Standards & Regulations The typical CEO thinks of IT simply as a black-box that needs to help him address his business challenges Chief Executive Officer 1996 Mergers & Acquisitions Competitive threads Globalization Business Processes are key in aligning Business and IT CIO’s generally agree with this, but also know that traditional IT boxes have difficulties in dealing with today’s challenges Chief Information Officer 1986 Organizational changes New Opportunities Process Automation 4

Business Process Speed and Agility Increasing the Scope and Sophistication of Integration Improves Business Performance Tactical Guidelines: The difficulty of integration increases as a multiple of the number of processing nodes, the number of application owners, the sophistication of the interactions and the rate of application changes. The business value of integration increases in proportion to its difficulty. Hard Easy Visionary Intermingle Processes Transaction With Updates Business Process Speed and Agility Immediate Look-up Send Data Sophistication Within Dept. Across Depts. Enterprise- wide Known Partners Ad Hoc Partners An agile enterprise has a competitive advantage because it can act swiftly on routine transactions and modify its processes quickly in response to changing conditions. The core principle that underlies agility is to have a comprehensive view of all participants and steps in a business process. Business units, people, application systems and automated devices in diverse locations can be viewed as subsystems in a single, holistic system. The idea of the virtual enterprise confirms business trends that have been underway for years. The boundaries of the conventional enterprise are increasingly porous as information, goods and services flow more quickly. Application integration is the common theme underlying zero-latency enterprise, real-time enterprise, on-demand enterprise, customer relationship management, supply chain management and many other modern business strategies. The scope of interactions is increasing, as connections are made not only among business units in the same company, but also to business units outside the enterprise. The sophistication of interactions is changing by modeling, managing and monitoring more aspects of each business process. Shallow, slow-moving, loose application couplings — such as file transfer — are being complemented, and sometimes replaced, by faster and richer forms of interchange, including: 1) direct interactive lookups, 2) invoking remote functions (e.g., via Web services) and 3) linking business processes (business process fusion). Action Item: IS managers, architects and developers must work with business analysts and business unit managers in every stage of an integration project because most of the costs and benefits of integration occur outside of the IS department. Scope

Hoe ziet de ideale organisatie er uit?

Doel en inrichting van de organisatie

ERP-weg ermee?

Point-to point chaos

Typical Problems with Organizations No aggregated view on business processes and objects (e.g. customers) Typical Problems with Organizations Multitude of fat client applications No single point of monitoring and management ERP Legacy Application CRM No end-to-end business processes control All these issues have a negative effect on Flexibility, Responsiveness, and Productivity Business logic is not reusable because it is not exposed through open standards Limited or poor integration between systems (stovepipes) Business logic is locked and hidden in legacy systems that are hard to change and extend

Typical Customer Scenario Highly interactive browser based user interface Typical Customer Scenario Harmonized user interface Use of open standards throughout all systems Increased business insight through central management and control of business processes Cordys Process Management Layer Create new functionality to fill the gaps Modeling and execution of business processes Existing business logic is unlocked, exposed as Web services and reusable Legacy Application ERP CRM Existing applications are leveraged

Redenen die NIET werken Strategic Imperative: Enterprises must have an application integration strategy, an integration competency center and a comprehensive middleware infrastructure to meet the escalating requirements of modern business. Business reasons Redenen die NIET werken Business Reasons Om onze datastromen te verduidelijken We willen af van al die verschillende middleware en leveranciers Betere documentatie van de ICT Zodat we flexibel zijn mbt toekomstige veranderingen Om aan IT standaarden te voldoen Om de nieuwste technology te gebruiken ICT personeel reduceren Geld besparen op de ICT afdeling Voldoen aan regelgeving Basel 2 (risk man.) HIPAA (admin.) Sarbanes-Oxley (financ.) B2B samenwerking Fusies en overnames Nieuwe applicaties inzetten Nieuwe afzetmarkten “Single view of customer” Data kwaliteit verbeteren Implementatie mogelijk van “self-service portals” Klant Werknemer Application integration is pervasive because it is required, not because it is cheap and easy (it is neither). Integration is expensive and difficult, but enterprises do it anyway because they have no choice. The motivation for integration usually comes from outside of the IS department, sometimes driven by the enterprise business strategy and sometimes by outside forces such as regulatory bodies or business partners who need certain interfaces and functions supported to enable business-to-business (B2B) relationships. Senior executives rarely spend money on integration just to clean up a messy and inefficient set of processes in the IS department. Most managers do not believe that integration technology and systematic integration design practices will save money in the IS department in the near term. A few managers do not even believe that good design and tools will make applications measurably more flexible and easier to modify in the long term. Even if they believe that integration tools and techniques can bring these benefits (which, indeed, they can), many managers are unwilling or unable to invest today to reap unquantifiable benefits several years in the future. The result is that integration is undertaken often, but usually on a piecemeal basis and only in response to urgent business needs. The single most-common motivator for integration in 1998 was installing a packaged application such as enterprise resource planning (ERP); in 2000, it was to implement customer relationship management (CRM); today, it is to respond to a law or regulation.

Business Process Modeling and Execution Multiple-Hybrid Business Process Modeling and Execution: Facilitates both system as well as human (workflow) interaction Transactional capabilities through Micro Flows (including compensating features) Supports Long living and Short living processes Graphical business flow and Rule Engine Modeling and execution in same environment Time-outs, Automatic Escalations etc are standard features

BPM Maturity Model

BPM een Hype? Groot probleem met hypes: zijn het hypes? Belanghebbenden bij ‘hyping’: Consultants Leveranciers Markt-analisten Wetenschappers Concepticide ligt op de loer: “The continuous and collective rejection of organization concepts that have been widely embraced only a short time before” Stefan Heusinkveld, Nijmegen School of Management

Hype Cycle 1: 2005

Hype Cycle 2: 2008

Hype Cycle BPM onderdelen:

Technologische vooruitgang

Enkele definities ter (dis)oriëntatie “BPM is the general term for the services and tools that support explicit process management (such as process analysis, definition, execution, monitoring and administration), including support for human and application-level interaction.” (Gartner, 2003) “Supporting business processes using methods, techniques, and software to design, enact, control, and analyze operational processes involving humans, organizations, applications, documents and other sources of information.” (W.M.P. van der Aalst, A.H.M. ter Hofstede, M. Weske, 2003) “Management van de business met de bedrijfsprocessen als centrale structuur.” (Definitie in gebruik bij Telfort)

Bizagi definitie: “BPM is a philosophy who’s objective it is to improve efficiency through process management”

Scope BPR-BPM BPM BPR Rummler & Brache, 1995 Process Output Measures Feedback Data about results Expectations, Plans & Resources Inputs Results PLAN & ORGANIZE PROCESS - Set goals and expectations - Establish plans and budget - Provide resources & staff - Implement process MONITOR & CONTROL - Monitor process - Reinforce success - Diagnose deviations - Take corrective actions EXECUTION Changes in Goals and Plans m Job Functions of a Manager Responsible for a Process Goals/Measures BPR BPM Rummler & Brache, 1995

Deelgebieden BPM Procesmodellering (enginering en re-enginering) Workflow management (WfM) + Rules Management Enterprise Application Integration (EAI) Business Activity Monitoring (BAM)

BPM Lagenmodel