Introduction to Business Process Management
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1 Introduction to Business Process Management Matthieu LAURAS BINUS University, Jakarta June 2017 Contact:
2 Agenda The Modelling Concept Enterprise & Business Processes Modelling Business Process Management Optimizing Processes through BPM 2
3 Modelling Illustrations Modeling is a critical skill of human-being. It is the basis of our intelligence: Making your own opinion about a stranger depending on the context Designing the plan of a building / city depending on the objective Anticipating the trajectory of a ball based on physical rules Driving or parking a car modeling to guide actions Explaining an idea with a sketch based on implicit conventions 3
4 Fundamental concepts Concept 1 : «Building» modelling consists in producing something concrete (picture, text, formula, etc.) Concept 2 : «Abstraction» modelling consists in building a simplified image of something concrete. Concept 3 : «Sharing» modelling consists in sharing a view of a system in ordet to exploit it. 4
5 Modelling: How does it work? 2 : Modelling point of view 1 : Boundaries of the subject But Other points of view may be useful for an optimal coverage of the subject 3 : Projection plan (= modelling language) Connexions? Relevance? of the model views 5 : Granularity level of the model 4 : Projection (= modelling) of the subject on the plan (=language) 5
6 Objectives of Modelling There should always be a clear and well-defined objective to any modeling activity: Modeling to manage = SIMULATION Modeling to design = CONCEPTION Modeling to understand = COMMUNICATION Modeling for? =? 6
7 Agenda The Modelling Concept Enterprise & Business Processes Modelling Business Process Management Optimizing Processes through BPM 7
8 Enterprise Modelling Two main visions: Information System Decision System Physical System Information System Processes Functions Information Data Appli. Workflows Humain
9 Enterprise Modelling: The ISO standard Organization / Enterprise Data Informational Functional Competencies, Capabilities and processes Hierarchical diagram Organisational Resources Machines, people, buildings 9
10 Business Process Highest behavioral level to represent an organization Representing the functional view of ISO A set of activities organized and structured to satisfy one or several objectives A process may schematically use "inputs" to produce "outputs" according to "objectives" and by using "resources" 10
11 Business Process Standard ISO 9001:2015 indicates that 4 categories of business process exist: Decisional processes (management): design and monitoring of the strategy (politics) Operational processes (realization): providing product(s) or service(s) (lifecycle) Support processes: improving and providing other processes with the required means (resources) Continuous improvement processes: structuring and ensuring the improvement of the added value and customer satisfaction 11
12 Agenda The Modelling Concept Enterprise & Business Processes Modelling Business Process Management Optimizing Processes through BPM 12
13 What BPM means? Business Process Management The whole step Business Process Modelling The main tool Business Performance Management The main objective 13
14 Why BPM is so important? An enterprise must evolve not to die... It is required to improve the enterprise... Understanding/managing an enterprise is a very complex activity... BPM 14
15 Service 1 Actor Service B Decisional BPM : Modeling the organization as a business process cartography to improve Level it 1 Operational Support Level 2 Level 3 Inputs Instructions Resources Outputs OK Activity E Activity A Document Activity D!OK Activity F... Information Activity B Activity C Message 15
16 Level 1 cartography... What else? Decisional Operational Support Two main comments: Coverage: All activities and functions of the organization must be included into the business process cartography Relevance: All criteria used for classifying processes (as decisional, operational and support) must be justifiable 16
17 Level 2 cartography... What else? Inputs Instructions Outputs Resources Two main comments: Granularity: There should be as much level 2 processes as required to absorb the complexity of the organization Floor criterion: The last layer of level 2 should be one step upper the atomic capabilities of resources 1 7
18 Producer Customer Direction Supplier Pool Direction Producer Lane Start-Event Order Level 3 cartography... What else? Production order Launch the production Produce Message flow Intermediate-Event Send + sending Send Close notice invoice order Payment Gateway End-Event Send order Facture Wait for notice of recepion OK!OK Send payment Start procedure... Information about order Waiting for reception Evaluate reception Evaluation product Activity Sequence flow 1 8
19 Why should you use BPM? Modeling an organization as a business process cartography to improve it. Certification of the organization ISO, CMMI, etc. based on process cartography (existing, understanding, applying, optimizing, etc.) Improvement of the processes of the organization Simulation, V&V, KPI, to improve the whole behavior Specification of an IS Extraction of requirements 19
20 Agenda The Modelling Concept Enterprise & Business Processes Modelling Business Process Management Optimizing Processes through BPM 20
21 The BPM Lifecycle (Vernadat, 1996) 21
22 The Performance Issue Relevance Inputs Instructions Process Effectiveness Outputs Resources Efficiency 22
23 Conclusions on BPM 23 02/09/2013
24 Introduction to Business Process Management Matthieu LAURAS BINUS University, Jakarta June 2017 Contact:
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