Business Process Modeling
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1 Business Process Modeling Association of Business Process Management Professionals (ABPMP) Kellie Witt, IDS Scheer, Solutions Engineer June 28,
2 Agenda Business Process Modeling Overview Business Process Modeling Tools / Benefits Standards / Governance Summary / Questions IDS Scheer AG KW 2-KW
3 What is a Business Process? "We "We define define a business business process process as as a collection collection of of activities activities that that has has one one or or more more "inputs" "inputs" and and generates generates one one or or more more results results that that represent represent added added value value for for the the customer." customer." Source: Hammer and Champy, Reengineering the Corporation, 1993, p.35 "In "In general, general, a business business process process is is a coherent coherent sequence sequence of of commercial commercial activities activities with with the the purpose purpose of of performing performing a service. service. The The output output and and result result of of the the business business process process is is a service service that that is is requested requested and and consumed consumed by by an an internal internal or or external external 'customer'." 'customer'." Source: Scheer, August-Wilhelm: ARIS From Business Process to Application System. 3. edition, Berlin et al IDS Scheer AG KW 3-KW
4 Business Process Management Questions about Questions Why do I need to analyze (business) processes? How to go about How to I go about Business Process Business Process Management? Management?? What is What is a (business) process? (business) process? What is Business What is Business Process Management? Process Management? Why use Business Why use Business Process Management? Process Management? IDS Scheer AG KW 4-KW
5 Why Have Business Processes? Improve product quality Improve delivery performance Speed up product innovation Improve efficiency Utilize customer potential Realize cost reduction potential Reduce costs Increase sales/profits Cut delivery / provision times Increase market shares Improve customer service Open up new markets Increase employee satisfaction Increase quality of customer order processing IDS Scheer AG KW 5-KW
6 What is Business Process Management? What with? Who? (Business) Process Management Process Strategy Process Design Process Implementation Process Controlling How? Why? IDS Scheer AG KW 6-KW
7 Agenda Business Process Modeling Overview Business Process Modeling Tools / Benefits Standards / Governance Summary / Questions IDS Scheer AG KW 7-KW
8 Business Process Modeling Suite of Tools What is a Business Process Modeling (Business Process Modeling) Suite of Tools? Provides a toolset of capabilities to plan, assess, optimize, or adapt business processes to meet organizational needs Why is it critical to support your vision? Business Process Managers need to be able to monitor the health of their business processes, view metrics and receive feedback to sustain and improve them Helps to answer some of the key questions: Monitor the health of their business processes: Are they performing as they should? Are they enabling the strategy? Are they promoting our critical success indicators? What will a change impact? To whom do we need to communicate? View metrics: How long did that process take? Are there bottleneck / areas for improvement? Receive feedback: Is the documented process correct / current? Are there gaps / inconsistencies across organizations? IDS Scheer AG KW 8-KW
9 Business Process Modeling Needs What the business wants to know: Who > Who/Role is performing the functions? Where do they fit in the organization? What > What is being done (process)? How does it interface/impact/support other company deliverables? Why > Why is this important? How does it tie to our strategic deliverables or key performance indicators? How > What applications/tools/methodologies are being used? What the users wants: Ease of use Ability to support standards Ability to show interfaces between processes Ability to show ownership / some history Ability for customers/stakeholders to view Ability for customers/stakeholders to provide input IDS Scheer AG KW 9-KW
10 Addressing the Business Questions How > What applications, data, methodologies are being used? What > What is being done (process)? How does it interface/impact/support other company deliverables? Why > Why is this important? How does it tie to our strategic deliverables or key performance indicators? Who > Who/Role is performing the functions? Where do they fit in the organization? IDS Scheer AG KW 10 - KW
11 Tying All of the Key Pieces Together Corporate center valid until valid from Wage bracket Tax table Position belongs to Time account Salaries Finance/controlling staff division Human resources staff division Risk management staff division Information and communication staff division Innovation staff division Calculation rule RuleCollective allocation agreement Staffing Time assignment Social insurance Employee Time result Wage calculation regulation Account/employee assignment Time event type Time CFO CHR CRO CCO CIO Payroll accounting Payroll account Industrial employee Performance account belongs to Organizational structure H. Miller A. Baker N. Harris F. Moore F. Brown Operating resources group Employee association (SME) Pay slip Operating resources Employee occupancy Functions Planning information required Gathering relevant knowledge Information gathered Market research analyses Finance/ controlling Data Processes Project definition Perform analysis Formulating strategy Functions Management processes Inbound logistics processes Outbound logistics processes Marketing and sales processes Customer service processes Supporting processes Application systems Analysis performed Strategy formulated Sales Marketing Gather results Process customer inquiry Marketing plan Marketing plan created Process customer offer Process customer order Products and services Standard Office systems ERP systems Commercial systems Backend systems Development tools Banking MS Office 2003 SAP ECC 5.0 DATEV Windows Server 2003 Microsoft Visual Studio Credit business Investments Accounts MS Outlook 2003 Siebel CRM KHK Oracle (DBMS) Windows XP Workstation USUS IBM DB2 Bill guaranty Credit line Mortgage loan Consumer credit Checking account Securities account IDS Scheer AG KW 11 - KW
12 Addressing the User Needs Tool Capabilities Ease of Use: Web-based and intuitive handling Ability to support standards Filters which provide systematic guidelines to promote standards Multilevel security capabilities Access to thousands of reference models and templates Central Repository Ability to show interfaces between processes Process interfaces Links to external source documents Interfaced capabilities (SAP, Oracle, etc) Ability to show ownership / some history Created info: Who created, when created Update info: When last changed, who last changed Ability for customers/stakeholders to view and provide input Web based viewer IDS Scheer AG KW 12 - KW
13 Characteristics of a Good Business Process Modeling Tool Value Proposition Full Business Process Modeling (Business Process Modeling) Suite capabilities What should your suite do for you: Enable reduction in implementation time Drive increased quality Improve visibility to out of the box processes (to reduce system customization) Promote Enterprise Architecture (EA) emergence Enable management / monitoring of processes end-to-end via metrics Enable management / monitoring for all core components (business, data, architecture and technology needs) Provide cross visibility for stakeholder/customer interaction Promote standardized methodology Key characteristics of the provider: Mature Company Mature Partnerships (ex: interfaces, strategic, etc) IDS Scheer AG KW 13 - KW
14 Example: Potential Benefits of Business Process Modeling Reduced process costs % Increased process quality/reduced number of errors % Reduced process throughput times % Reduced training time/expenses % Reduced number of (internal) support requests % Reduced number of customer complaints % Increased forecast accuracy % >> The processes in the individual work areas could be streamlined and shortened considerably. For example, processing time dropped drastically ( ). In the Dealer Service Center (DSC), process costs dropped by 58 percent and staff requirement by 67 percent. << IS Report, 7+8/2005, BMW Financial Services Switzerland project report on the use of ARIS IDS Scheer AG KW 14 - KW
15 Agenda Business Process Modeling Overview Business Process Modeling Tools / Benefits Standards / Governance Summary / Questions IDS Scheer AG KW 15 - KW
16 Standards and Governance Overview Why define Standards and Governance processes? Faster time to market Standardized training Comprehensive cross-project/program/organizational documentation Consistent objects/format for transition change management analysis Promote reuse within your environment Reuse objects, models, and key attribute data Transparency between models Common Terminology Promote quality published models Ensure quality via a certification program Ensure diligence via roles (approvers) / teams (body who manages standards/governance) IDS Scheer AG KW 16 - KW
17 Agenda Business Process Modeling Overview Business Process Modeling Tools / Benefits Standards / Governance Wrap Up IDS Scheer AG KW 17 - KW
18 Wrap Up What we covered today: What is Business Process Modeling? What are the characteristics of a good Business Process Modeling Suite (Tools)? What are the benefits of Business Process Modeling? Why are standards and governance processes important? IDS Scheer AG KW 18 - KW
19 Questions? IDS Scheer AG KW 19 - KW
20 Backup IDS Scheer AG KW 20 - KW
21 ARIS Platform Overview ARIS Platform 7.02 Business Process Modeling & EA, Single Repository The ARIS (Architecture for Integrated Information Systems) Platform provides integrated content, tools, and standards that you need to document, ratify and synchronize your process modeling and SAP environments. ARIS Process Performance Manager ARIS Audit Manager ARIS BSC ARIS Business Optimizer ARIS Business Simulator ARIS for SAP NetWeaver ARIS BI Modeler ARIS SOA Architect ARIS Business Rules Designer ARIS UML Designer For questions or a demo on the ARIS Suite of products, please contact Kellie Witt, or kellie.witt@ids-scheer.com ARIS Business Architect ARIS Business Designer ARIS Business Publisher ARIS IT Architect ARIS QM Scout IDS Scheer AG KW 21 - KW
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