Business Process Modelling 28 February 2013

Transcription

1 Business Process Modelling 28 February 2013

2 2 Purpose The workshop aims at stimulating dialogue, answering questions and providing practical demonstrations to enhance your business and process modelling skills.

3 3 Points Covered Introduction BPM Mandate BPM Business Modelling Process Inventory Process Modelling

4 4 The heart of managing a business is managing its processes. Beyond Reengineering by Dr Michael Hammer

5 5 Introduction Process modelling is useful, powerful and potentially very accessible. But, with so many analysts, consultants, publications and vendors weighing in with their own perspective and opinions, it can be very confusing.

6 6 BPM Mandate White Paper on Transforming Public Service Delivery (Batho Pele White Paper) Visioning of a single Public Service BPM Mandate in Public Sector Outcomes based approach and in specific outcome 12 output 3 Government s approved framework for service delivery improvement

7 7 Batho Pele White Paper This White Paper is directly applicable to those parts of the public sector, both national and provincial, which are regulated by the Public Service Act, 1994 However, it is relevant to all areas and employees of the public sector regulated by other legislation, such as local government and parastatals, teachers in education departments, as well as the South African Police Service, South African National Defence Force and the Intelligence Services it is expected, therefore, that all sectors of public administration will agree to follow the principles set out in this White Paper

8 8 Outcomes-based Approach Outcome 12 of the outcomes-based approach as adopted by Government aims to establish an efficient, effective and development oriented Public Service and an empowered, fair and inclusive Citizenship.

9 9 Outcome 12, Output 3 This output deals with business processes, systems, decision rights and accountability management In the case of business processes the DPSA stipulates that indicators must be identified for measuring the efficiency and effectiveness of business processes Targets for improvements in this regard must be set, the indicators must be measured, and plans for improving business processes must be developed and implemented

10 10 BPM Defined BPM is a management approach for creating an agile organisation capable of transforming business processes in pursuit of extraordinary results

11 11 Functions of BPM BPM includes the broad collection of activities concerned with: identifying classifying modelling measuring analysing improving and controlling of processes with the ultimate goal of servicing the customer better.

12 12 Dimensions of BPM Strategy (Business Modelling) Process (Process Modelling) People Technology Information External Environment

13 13 Business Modelling A business model describes the rationale of how an organization creates, delivers and captures value - Alexander Ostwalder & Yves Pigneur -

14 14 Business Model Benefits Facilitates description & discussion Provides a shared understanding Simple, relevant & intuitively understandable Does not oversimplify complexities of how enterprises function

15 Business Model Canvas 15

16 16

17 17 Business Model Canvas Key Controls (KC) Key Partners (KP) Key Activities (KA) Value Proposition (VP) Customer Relationships (CR) Customer Segments (CS) Key Resources (KR) Channels Cost Structure (C$) Revenue Streams (R$)

18 18 Exercise Develop a Business Model for the HR Function of an Organisation

19 19 Key Activities (KA) The KA building block describes the most important processes an organisation must perform to make its business model work These are the most important core and support processes required to operate successfully KA differ depending on business model type

20 20 Key Activities (KA) Categories of KA: Production designing, making and delivering a product in substantial quantities and/or superior quality Services designing and delivering a service of superior quality Problem Solving coming up with new solutions to customer problems Platform/Network networks, matchmaking platforms, software and even brands can function as a platform

21 21 Process Defined The word process is defined in the dictionary as a series of actions, changes, or functions bringing about a result.

22 22 What is a Business Process?... a process is simply a structured, measured set of activities designed to produce a specified output for a particular customer or market... A process is thus a specific ordering of work activities across time and place, with a beginning, an end and clearly defined inputs and outputs: a structure for action. - Thomas H. Davenport -

23 Process Characteristics 23 Suppliers A process always has a name and occurs over time Inputs Business Rules Resources Output Value-added transformation Customers

24 24 Process Characteristics Is triggered by an external business event. Is comprised of all the activities necessary to provide the appropriate business outcomes in response to the triggering business events. Transforms inputs of all types into outputs, according to guidance (policies, standards, procedures, rules etc.) employing reusable resources of all types. Contains activities which usually cross functions and often organizational units. Has performance indicators for which measurable objectives can be set and actual performance evaluated. Delivers a product or service to an external stakeholder or another internal process. Usually connects to other processes.

25 25 Process Inventory Fairly easy to manage HR and assets Process are mainly hidden and invisible Can t manage the unknown Conduct a process census Develop a process inventory

26 26 Example: Process Inventory Process Name Leave Admin: Application Updated System Type Output Customers Frequency Performance Indicators S Updated Leave System Full-time Employees 84 pm Time: 12 days CSI: 90% Strategic Planning: Instruction Approved Plan M Approved Strategic Plan Minister, DG, DDG s & CD s 1 pa Time: 3 months Costs: R1.2m ID Doc: Application Issued ID C ID Document RSA Citizens > pa Time: 6 weeks Costs: R325 CSI: 70% Driver s License: Application Issued License C Driver s License RSA Citizens > pm Time: 6 weeks Costs: R180 CSI: 75% (Note: Include additional headings according to requirements

27 27 Process Classification Core Processes Support Processes Management Processes

28 28 Process Classification Core processes constitute the main business and create the primary value stream. Typical operational processes are purchasing, manufacturing, marketing, and sales. Management processes govern the operation of a system. Typical management processes include corporate governance and strategic management. Supporting processes support all other processes. Examples include accounting, recruitment, and technical support. Suitable for outsourcing.

29 29 Sources for Process Inventory Structures, both organisational and functional Business forms Applications and databases Legislation, policies, frameworks Performance agreements Job descriptions Norms and standards Business model

30 30 Exercise Develop a process inventory for the HR function of an organisation Identify at least 15 processes Use the Business Model case study as input document

31 31 Process Modelling The activity of modelling a business process usually predicates a need to change processes or identify issues to be corrected. Process modelling has always been a key aspect of business process reengineering, and continuous improvement approaches seen in Six Sigma, Kaizen, LEAN, etc This transformation may or may not require IT involvement, although that is a common driver for the need to model a business process. Change management programmes are desired to put the processes into practice.

32 32 History Techniques to model business process such as the flow chart, functional flow block diagram, control flow diagram, Gantt chart, PERT diagram, and IDEF have emerged since the beginning of the 20th century. The Gantt charts were among the first to arrive around 1899, the flow charts in the 1920s, Functional Flow Block Diagram and PERT in the 1950s, Data Flow Diagrams and IDEF in the 1970s. Among the modern methods are Unified Modeling Language and Business Process Modeling & Notation. Still, these represent just a fraction of the methodologies used over the years to document business processes.

33 33 History The term "business process modeling" itself was coined in the 1960s in the field of systems engineering by S. Williams in his 1967 article "Business Process Modeling Improves Administrative Control". His idea was that techniques for obtaining a better understanding of physical control systems could be used in a similar way for business processes. In the 1990s the term "process" became a new productivity paradigm.

34 34 What is Process Mapping? Process mapping is a technique of diagrammatical modelling. The diagram represents a series of activities and how they are related. Process mapping provides a representation of who does what and in what order.

35 35 Process Modelling A business process can be decomposed into several subprocesses, which have their own attributes, but also contribute to achieving the goal of the parent-process. The analysis of business processes typically includes the mapping of processes and sub-processes down to activity level. A business process model is a model of one or more business processes, and defines the ways in which operations are carried out to accomplish the intended objectives of an organisation. Such a model remains an abstraction and depends on the intended use of the model. It can describe the workflow or the integration between business processes. It can be constructed in multiple levels.

36 36 Process Modelling Get the big picture Drill down Go back to the big picture

37 37 Process Models There are three main types of process models: Diagrammatical models: a static diagram that shows the processes and the relationships between them (eg. process maps and flowcharts.) Descriptive models: written explanations of the processes Active models: a working model that represents the processes (eg. computer simulations)

38 38 Modelling Standards Different stakeholders need to interpret model content in the same way. That s where modelling standards come in. Modelling standards define process model elements and their meaning. They enable efficient and collaborative BPM across corporate boundaries and disciplines.

39 39 Modelling Standards BPEL Business Process Execution Language BPMN EPC UML WSDL Business Process Modelling & Notation Event-driven Process Chains Unified Modelling Language Web Services Description Language XPDL XML Process Definition Language (XPDL XSD IDEF XML Schema Definition (XSD) Integrated Definition Language

40 Why BPMN? 40

41 41 Process Modelling Tools BizAgi Process Modeler ( Questetra BPM Suite Tibco Business Studio Aris Express (soon to be released) Process Maker Open ModelSphere Visual Paradigm for UML (Community Edition) Archimate Facilis BPMN Designer FreeModeler (

42 42 BPMN Business Process Model and Notation (BPMN) is a graphical representation for specifying business processes in a business process model. It was previously known as Business Process Modelling Notation. Business Process Management Initiative (BPMI) developed BPMN, which has been maintained by the Object Management Group since the two organizations merged in As of March 2011, the current version of BPMN is

43 43 BPMN The primary goal of BPMN is to provide a standard notation readily understandable by all business stakeholders. These include the business analysts who create and refine the processes, the technical developers responsible for implementing them, and the business managers who monitor and manage them. Consequently, BPMN serves as a common language, bridging the communication gap that frequently occurs between business process design and implementation.

44 44 BPMN Elements BPMN models consist of simple diagrams constructed from a limited set of graphical elements. For both business users and developers, they simplify understanding business activities' flow and process. BPMN's four basic element categories are: Flow objects Events, activities Gateways Connecting objects These four categories enable creation of simple business process diagrams.

45 45 Diagram Elements Events Activities Gateways Connectors

46 46 BPMN Event Types An Event is something that happens during the course of a business process. These Events affect the flow of the Process and usually have a trigger or a result. They can start, interrupt, or end the flow Events are circles The type of boundary determines the type of Event

47 47 BPMN Activity Types An activity is work that is performed within a business process. The types of activities that are a part of a Process Model are Sub-Process and Task Activities are rounded rectangles They can be performed once or can have internally defined loops

48 48 BPMN Gateway Types Gateways are modelling elements that are used to control how Sequence Flows interact as they converge and diverge within a Process All types of Gateways are diamonds Different internal markers indicate different types of behaviour All Gateways both split and merge the flow If the flow does not need to be controlled, then a Gateway is not needed Thus, a diamond represents a place where control is needed

49 Different Types of BPMN Connections 49 A Sequence Flow is used to show the order that activities will be performed in a Process A Message Flow is used to show the flow of messages between two entities that are prepared to send and receive them An Association is used to associate data, information and artifacts with flow objects

50 BPMN Process Model 50

51 51 Benefits of Modelling Align Operations with Business Strategy Improve Process Communication Increase Control and Consistency Improve Operational Efficiencies Gain Competitive Advantage

52 52 Summary BPM Mandate Alignment between strategy and operations bmo business modelling BPM includes, amongst others the identifying, classifying and modelling of business processes Process inventory Process modelling standard e.g. BPMN Process modelling tool e.g. Bizagi

53 Cobus Terblanche