1. BPM Techniques and Tools
A Quick 360° Tour of the BPM Lifecycle
Marlon Dumas
University of Tartu
marlon.dumas@ut.ee
1

2. Body of principles, methods and tools to
• analyze,
• (re-)design,
• execute and
• monitor
business processes, with the aim of improving
their performance.
What is BPM?

3. Improving Performance (Rummler’s Framework)
Financial
Human
Resources
Technology
Economy CultureRegulatory
Organisation
Performance ManagementPerformance Planning
Function A Function B Function C
Assets &
Resources
Business Environment
Stakeholders
Customers
Materials
Competitors
Business Process
Business Process
Business Process
Value
3

4. Efficiency
Integration
Compliance
Internal
Quality
Networking Agility
External
The Seven Values of BPM – Rosemann et al. 2011
Transparency
M. Rosemann et al., “Value-Driven BPM: Which Values Matter for BPM?”, 2011

5. The BPM lifecycle
Process
identification
Conformance and
performance insights
Conformance and
performance insights
Process
monitoring and
controlling
Executable
process
model
Executable
process
model
Process
implementation To-be process
model
To-be process
model
Process
analysis
As-is process
model
As-is process
model
Process
discovery
Process architectureProcess architecture
Process
redesign
Insights on
weaknesses and
their impact
Insights on
weaknesses and
their impact
5

6. What?
1. Identify an organization’s business processes
2. Prioritize their management based on certain criteria
Why?
1. Get a broad picture of processes in the org and relations
2. Maximize value of BPM initiatives
Process Identification

7. 1. Designation
• Enumerate main processes
• Determine process scope
2. Prioritization
Process Identification
After Davenport (1993)
Process
Architecture
Prioritized
Process
Portfolio

8. Process Enumeration
“Most businesses have just three core processes:
1. Sell stuff
2. Deliver stuff
3. Making sure you have stuff to sell and deliver”
Geary Rummler

9. Porter: Components of a process architecture
Core Processes
Management
Processes
Suppliers/Partners
Customers/Stakeholders
Support Processes
After Michael Porter (1985)

10. Strategic
Management
Logistics
Management
Warehouse
Management
Suppliers
Management
Management processes
Finance
Indirect
procurement
IT HR
Core processes
Support processes
Wholesaler
Example: Process Landscape
Demand
Management
Sales
Direct
procurement
Distribution
ServiceMarketing

11. Process Scoping
Processes are interdependent  insights into interrelations
required
• Horizontal: upstream – downstream processes
• Vertical: main processes – sub-processes
• Specialization: general – special product/service
Process architecture

12. • Chain of core processes an organization performs to deliver
value to customers and stakeholders
Horizontal Scoping: Value Chains
Procure-to-service

13. Vertical Scoping: Process Hierarchies
Processhierarchy
Level 1
Process
Landscape
Level 2
Main
Processes
(e.g. BPMN)
Level 3+
Subprocesses, Tasks
(e.g. BPMN)
Transparency

14. Financial institution
Example: Prioritized Process Landscape
Health
High
Low
GoodPoor
Short-term action
Rating
Contract
preparation
Loan market
evaluation
Handling of
payments
Loan
application
Loan
planning
Loan
controlling
Loan
decision
Feasibility
Low
High
Medium
Possible Strategic fit?
Transparency

15. The BPM Lifecycle
Process
identification
Conformance and
performance insights
Conformance and
performance insights
Process
monitoring and
controlling
Executable
process
model
Executable
process
model
Process
implementation To-be process
model
To-be process
model
Process
analysis
As-is process
model
As-is process
model
Process
discovery
Process architectureProcess architecture
Process
redesign
Insights on
weaknesses and
their impact
Insights on
weaknesses and
their impact
15

16. Modeling
notations
BPMN
DMN
Tools Syntax & style checking
Model repository management
Dictionary & ontologies
Process Discovery
16

17. Discovery
techniques
Interviews, walkthroughs
Observation
Document analysis, automated process discovery
Workshops (e.g. sticky-notes)
Modeling
guidelines
and quality
frameworks
7PMG
Silver’s BPMN style guidelines
SEQUAL framework
Process Discovery
17

18. Business process model
ERP
Senior Finance Officer
Finance
Department
Check
Invoice
Mismatches
Enter
Invoice
Details
mismatch
exists
no
mismatches
Block
Invoice
Invoice
received
Invoice
posted
Post Invoice
Invoice
blocked
Invoice InvoiceReport
InvoiceInvoice DB
18
Transparency

19. The BPM lifecycle
Process
identification
Conformance and
performance insights
Conformance and
performance insights
Process
monitoring and
controlling
Executable
process
model
Executable
process
model
Process
implementation To-be process
model
To-be process
model
Process
analysis
As-is process
model
As-is process
model
Process
discovery
Process architectureProcess architecture
Process
redesign
Insights on
weaknesses and
their impact
Insights on
weaknesses and
their impact
19

20. Process analysis techniques
Lean
Waste
analysis
Six big
losses
Bottleneck
analysis
Six Sigma
Value-
added
analysis
Root-
cause
analysis
Pareto
analysis
Business
Analysis
SWOT
Stakeholder
analysis
Issue
Register
Operations
Mgnt.
Flow
Analysis
Queuing
Analysis
Simulation
Quality Efficiency

21. The BPM lifecycle
Process
identification
Conformance and
performance insights
Conformance and
performance insights
Process
monitoring and
controlling
Executable
process
model
Executable
process
model
Process
implementation To-be process
model
To-be process
model
Process
analysis
As-is process
model
As-is process
model
Process
discovery
Process architectureProcess architecture
Process
redesign
Insights on
weaknesses and
their impact
Insights on
weaknesses and
their impact
21

22. Transactional Redesign
• Doesn’t put into question the current process structure
• Seeks to identify problems and resolve them incrementally,
one step at a time
• E.g. Business Process Reengineering (BPR)
Transformational Redesign
• Puts into question the fundamental assumptions and
principles of the existing process structure
• Aims to radically change the process structure
• E.g. Heuristic process redesign
Process Redesign Styles

23. Capture information once and at the source
Subsume information-processing work into the real work
that produces the information
Have those who use the output of the process drive the
process
Put the decision point where the work is performed, and
build control into the process
…
Business Process Reengineering (Hammer)
23
Quality Efficiency

24. • Task elimination
• Task composition/decomposition
• Triage
Task-level
• Re-sequencing
• Parallelism enhancement
Flow-level
• Specialization & standardization
• Resource optimization
• Communication optimization
• Automation
Process-level
Redesign heuristics (Reijers et al.)
24
Cost
Quality
Time FlexibilityQuality Efficiency Agility

25. The BPM lifecycle
Process
identification
Conformance and
performance insights
Conformance and
performance insights
Process
monitoring and
controlling
Executable
process
model
Executable
process
model
Process
implementation To-be process
model
To-be process
model
Process
analysis
As-is process
model
As-is process
model
Process
discovery
Process architectureProcess architecture
Process
redesign
Insights on
weaknesses and
their impact
Insights on
weaknesses and
their impact
25

26. Process
automation
Executable
process design
BPMS
Implementation
Enterprise
system
configuration
API Design...
Process change
management
Job redesign
Change
resistance
Performance
management
planning
Training….
Process implementation
26
Quality
Efficiency
Compliance
Transparency
Integration

27. The BPM lifecycle
Process
identification
Conformance and
performance insights
Conformance and
performance insights
Process
monitoring and
controlling
Executable
process
model
Executable
process
model
Process
implementation To-be process
model
To-be process
model
Process
analysis
As-is process
model
As-is process
model
Process
discovery
Process architectureProcess architecture
Process
redesign
Insights on
weaknesses and
their impact
Insights on
weaknesses and
their impact
27

28. Process monitoring
Dashboards & Reports
Process MiningEvent
stream
DB
28

29. Process Mining
29
/
event log
discovered model
Discovery
Conformance
Deviance
Difference
diagnostics
Performance
input model
Enhanced model
event log’
Quality Efficiency Compliance
Transparency

30. Efficiency
Integration
Compliance
Internal
Quality
Networking Agility
External
Quo Vadis
Transparency
M. Rosemann et al., “Value-Driven BPM: Which Values Matter for BPM?”, 2011
1980-…
TQM
Six Sigma
1980…
BPR
Lean
2000…
ISO 9001
Sarbanes-Oxley
1990…
Workflow Mngt.
SOA
RPA
2000-…
BPO
Open Innovation
Customer Journey
2010-…
Case Mgnt.
Digital Transf.
Vertical Integration
1990-…
Process Modeling
Decision Modeling
Customer Journey Mapping

31. Networking Customer intimacy Customer journey
analysis
Privacy, trust, integrity Blockchain
Agility /
adaptability
Vertical integration Integrated product &
process management
Offline-to-online
integration
Digital transformation
Rapid lifecycle iteration NESST
Personalized
conversations
Predictive BPM
Challenges & Opportunities
31

32. Want to know more?
Starts 10 October 2016
Register at:
http://moocs.qut.edu.au