Keynote delivered at the 1st International Workshop on Process in the Large (IW-PL), September 13, 2010, Hoboken, NJ in conjunction with the BPM 2010 conference.
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Modeling in the Large Keynote
1. Process in the Large
From Enterprise Process Wikis to
Crowdsourced Process Designs
Michael zur Muehlen, Ph.D.
Center for Business Process Innovation
Howe School of Technology Management
Stevens Institute of Technology
Hoboken NJ
Michael.zurMuehlen@stevens.edu
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Sunday, September 19, 2010
3. Agenda
How large organizations approach BPM
What’s different about Process in the Large
Wikis and Collaboration
Some insights
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4. Part 1:
How Large Organizations
Approach BPM
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5. “Let’s try this out
carefully”
Choose a single pilot process to gain
experience with BPM
Good: High-value, low-medium risk
business case
Example: Onboarding, Claims Processing
Bad: No-value, no-risk business case
Example: Vacation request, Expense
reimbursement
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6. Scheduled Project
Time during First
BPM Project
Business Case
Project Team Selection
Process Discovery
Documentation
Functional and Technical Specification
Tools Evaluation and Selection
Implementation
Testing and Debugging
Deployment and Training
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Source: BPTrends (2006)
Sunday, September 19, 2010
7. Scheduled Project
Time during First 41%
BPM Project 3%
5%
8% 4%
Business Case
Project Team Selection
Process Discovery 7% 9%
Documentation
Functional and Technical Specification
Tools Evaluation and Selection
12% 11%
Implementation
Testing and Debugging
Deployment and Training
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Source: BPTrends (2006)
Sunday, September 19, 2010
8. Problem: Process
Confabulation
Problem
People should know why they perform tasks
If they don’t, they make up explanations
Consequence
Accurate process discovery becomes difficult
Reinforces assumptions that participants share
about the process (Black Swan problem)
Solution
Observe rather than ask
Follow the process object
Rainy Day Approach: Use Specific Examples
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9. Problem: Paper Bias
Problem
Process designs mimic paper-based processes
Consequence
Innovative designs are overlooked
Inefficiencies remain because technology
capabilities are underutilized
But: Processes are easily understood by those
who are used to paper
Solution
Model backwards
Focus on data dependencies
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10. “Let’s model
everything”
Need an Enterprise Process Architecture
Comprehensive Process Documentation
Motivation
Compliance Requirements
Developing Global Standards
Mergers and Acquisitions
“We like to model”
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11. Enterprise Process Map: APQC
Operating Processes
2.0
3.0 4.0 5.0
1.0 Design and
Market and Deliver Manage
Develop Vision Develop
Sell Products Products and Customer
and Strategy Products and
and Services Services Service
Services
Management and Support Processes
6.0 Develop and Manage Human Capital
7.0 Manage Information Technology
8.0 Manage Financial Resources
9.0 Acquire, Construct, and Manage Property
10.0 Manage Environmental Health and Safety
11.0 Manage External Relationships
12.0 Manage Knowledge, Improvement, and Change
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Source: APQC (2007)
Sunday, September 19, 2010
12. Enterprise Process Map: Fortune 500
Level
concept Roles &
Responsi-
Convention
handbook bilities
Modeling Process
Owners
handbook
Corporate Process
Modeling Managers
Service
Methods Organization
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13. Process Abstraction Levels
Level A
Business Activities Business Activities Objectives Scorecard
Level B
Process Groupings
Process Groupings Ownership Services
Level C
Core Processes
Core processes Delivery Units Products
Level D
Business Process Flows
Processes Delivery Teams Systems
Level E
Operational Process Flows
Sub Processes Roles System Functions
Level F
Detailed Process Flows
Detailed Processes Detailed Roles Transactions
Source: British Telecommunications plc 2006
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Sunday, September 19, 2010
14. Process Abstraction Levels
Level A
Business Activities Business Activities Objectives Scorecard
Level B
Process Groupings
Process Groupings What Ownership Services
Level C
Core Processes
Core processes Delivery Units Products
Level D
Business Process Flows
Processes Delivery Teams Systems
Level E
Operational Process Flows
Sub Processes Roles System Functions
Level F
Detailed Process Flows
Detailed Processes Detailed Roles Transactions
Source: British Telecommunications plc 2006
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Sunday, September 19, 2010
15. Process Abstraction Levels
Level A
Business Activities Business Activities Objectives Scorecard
Level B
Process Groupings
Process Groupings What Ownership Services
Level C
Core Processes
Core processes Delivery Units Products
Level D
Business Process Flows
Processes Delivery Teams Systems
Level E
Operational Process Flows
Level F
Sub Processes How Roles System Functions
Detailed Process Flows
Detailed Processes Detailed Roles Transactions
Source: British Telecommunications plc 2006
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Sunday, September 19, 2010
16. Enterprise Process Architecture
Strategy
IT
Management Accounting
Enterprise Process Map
Purchasing Marketing
Order Sales
Receiving Warehouse Distribution
Invoice Billing
Accounts Accounts
General Accounting and Asset
Cost Accounting
Human Resources
Business Activities Objectives Scorecard
Process Groupings Ownership Services
Process Levels
Core processes Delivery Units Products
Processes Delivery Teams Systems
Sub Processes Roles System Functions
Detailed Processes Detailed Roles Transactions 13
Sunday, September 19, 2010
18. “We’re doing SOA, let’s
figure out this BPM
stuff later”
Typical Procedure
Analyze existing systems
Establish basic services
Implement Enterprise Services Bus
Try to identify processes that can leverage
the services
Problem
Without processes there is no point of
reference for
services abstraction
granularity
usage frequency 15
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19. SOA - What Developers See
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20. Services - What Architects See
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22. Part 2:
What’s Different about
Process in the Large
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23. Commitment
to Change
Value Proposition Governance
Project Management
Setup Design Maintenance
Info. Tools
Modelers Users
Providers and Lang.
Issues Framework 20
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24. Strategy-related Issues
Top
Economic Value
Management Governance
(economics)
Support
Lack of value
Commit-
End-goal Focus on ROI metrics (i.e., Lack of Corporate Ownership
ment to Sponsorship Incentives Costs Politics
perceptions Initiatives Justification Balanced Benchmarks standards of models
long term
Scorecard)
Costs
Lack of
New tool associated with Lack of
Training coordination
acquisition updating the control
point
models
Strategy-related Issues
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25. Process Modeling
Life Cycle Issues
Setup Design Maintenance
Lack of Lack of Lack of Consoli-
Model quality Variant
modeling standards common Infrastructure Rework Timeliness dation and
assurance management
objectives for reuse methodology Integration
Corporate
Level of Model Modeling
modeling
abstraction maintenance guidelines
standard
Modeling-related Issues
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26. Resource-related Issues
Process Information Tool and
Model User
Modeler Provider Language
Level of Hierarchical Lack of Integration
Lack of Limited
expertise Capability BPM Level of decompo- using full with other
adequate access to
and to abstract education complexity sition of toolset modeling
toolset repository
experience models features tools
Resistance Lack of good
Lack of Lack of efficient
Cost Turnaround to change / Knowledge Integration graphical
model repository search
efficiency time adoption of sharing of activities process
utilization engine
BPM mapping
Lack of Lack of Loss of Intellectual
transfer communication knowledge property
Resource-related Issues
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35. Issues around Process in the Large
Identification of Best Practices
Building shared understanding of Models
Federation of Process Designs
Federation of Process Metrics
Compliance Checking
Organizational Alignment
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36. Final Thought
Methods don’t matter
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37. Final Thought
Methods don’t matter
until you’ve picked one
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