JIM / Master: Business Process Engineering (BPE)

Transcription

1 Geschäftsleitung Materialwirtschaft Vertrieb Org Disposition 5 Einkauf JIM / Master: Business Process Engineering (BPE) Anfrage ist Angebot ET 1 Anfrage E 1 Vertriebsabwicklung F 1 ET 2 eingegangen Anfragebearbeitung 2 F 11 VertriebF 11 Angebotsbearbeitunbearbeitung F 12 Anfrage- Anfrage ET Bonität Anfrage ist F 111 Kunde ET 3 bearbeitet E 2 prüfen Liefertermin F 112 Angebotsbearbeitung F ermitteln 12 Chapter 1 - Introduction: Objectives and overview - Fundamentals of business process engineering Author: Andelfinger Last change: 18th May 2007 version 1.0

2 Agenda Introduction: Objectives and overview All rights reserved. 2

3 Lecture Business Process Engineering Overview - SS07 lecture: Oral exam.: to be defined in the timeframe from HISPOS Number (JIM), (Master) - 1 Assignment + presentation - Grading - 30% Assignment - 70% Exam. All rights reserved. 3

4 Lecture Business Process Engineering Goals - Introduction to an important trend in modern enterprises: the shift from functional orientation towards process orientation - Introduction to technical means how to engineer business processes: - Business Process Modelling with eepc s (ARIS) - From Business Process Modelling to Executable Business Process Models with WS-BPEL and WSDL (Oracle Business Process Manager) - Introduction to the business management background of BPE (HBR-articles) - Further perspectives and upcoming trends of BPE All rights reserved. 4

5 Lecture Business Process Engineering Topic overview Schedule for the Lecture and Labs May Introduction - Organizational information (lecture & lab sessions, assignment, oral exam etc.), Curriculum overview, Presentation of assignment topics, Fundamentals of Business Process Engineering - Two perspectives on enterprises: functional versus processoriented, The key role of IT for business Processes 25. May Group formation for assignments, Introduction to Business Process Modelling with eepc, Introduction to the eepc-exercise 01 June 2007 Lab 1 (1): Introduction to ARIS-Tool, First steps of eepc-exercise From Business Process Modelling to Business Process Execution (1): The Process-oriented Enterprise, Web- Services and SOA, Relevant Business Process Standards - Executable Business Processes From Business Process Modelling to Business Process Execution (2): Building Standards-based Business Processes with Web Services (WS-BPEL, WSDL, SOAP) 08. June 2007 (y1) Lab 1 (completion): Business Modelling with eepc (ARIS) Lab 2 (1) : Introduction to Oracle Business Process Manager, Business Process Modeling with BPEL How to do a research paper (assignment) and the presentation? 15. June 2007 Lab 2 (completion) : Business Process Modelling and Execution with Oracle Business Process Manager Review of HBR-articles on Business Process Engineering (pre-course assignment!) Review of HBR-articles on Business Process Engineering (pre-course assignment!) 22. June Future directions and trends of Business Process Engineering 29. June 2007 Student presentations (1) Student presentations (2) Wrap-up and Q & A session for the oral exam All rights reserved. 5

6 Lecture Business Process Engineering The BPE-Assignment BPE Assignment Goal - To gain experience in Steps - writing a professional report (training for your Master thesis and for your future job) - basic standards for executable business processes (WS-BPEL, WSDL) and their interplay - Literature research - Outline of Proposal (abstract, TOC, research questions & objectives) - Write an assignment (hand-in at due date) - Presentation - Mini-paper (ca. 10 pages) and presentation (ca. 15 min. ) - You will work in pairs of two All rights reserved. 6

7 Lecture Business Process Engineering BPE-Assignment Two Topics (Research Areas) you select one until the next lecture (i.e. May 25, 2007) Topic 1: WS-BPEL: The role of an executable process modelling language for Processoriented enterprises (including an answer to the question: how does WS-BPEL relate to WSDL and SOAP) Topic 2: WSDL: The role of the Webservices standard WSDL for Process-oriented enterprises (including an answer to the question: what are the shortcomings of WSDL from a business process perspective?) Schedule for the Assignments (i.e. mini-papers) 15. June 2007 proposal (1-2 pages) - Feedback until June 22, June 2007 presentations (15 minutes + 5 minutes Q&A) handing in of final mini-paper (10 real text 13. July 2007 pages + title page etc.) All rights reserved. 7

8 Agenda Fundamentals of business process engineering All rights reserved. 8

9 It all started with that book... Michael Hammer, James Champy: Reengineering the Corporation. A Manifesto for Business Revolution. Harper Business, New York, 1993 All rights reserved. 9

10 Agenda The client-centric economy of the information age Two perspectives on business enterprises The business process concept The key role of IT From business process to business process engineering All rights reserved. 10

11 The economy in the information age is driven by client expectations ANYHOW ONE-STOP NON-STOP EVERYTHING EVERYWHERE ONE-TO-ONE All rights reserved. 11

12 This trend is reflected by increasing awareness in the business world that organizations are solution providers Zumtobel Staff in Switzerland has undergone a re-organization from a technology-driven company towards a provider of illumination solutions. Zumtobel now provides its solutions for e.g. architects building owners end-users All rights reserved. 12

13 Agenda The client-centric economy of the information age Two perspectives on business enterprises Functional perspective Process perspective The business process concept The key role of IT From business process to business process engineering All rights reserved. 13

14 Two different perspectives on a business enterprise are available to cope with the challenges ahead Function-oriented organizational perspective: Board R & D Commercial Accounting Marketing Distribution Service Process-oriented organizational perspective: Structure and process are complementary to each other. The key question is which perspective is considered as primary. Client requirem. Process steps Product All rights reserved. 14

15 The function-oriented perspective is focused on functional competencies Understanding an organization as a static entity: Creation of function-oriented organizational entities (jobs, groups, departments) Clear hierarchical relationships with regard to information flow and control flow In function-oriented organizations, the structure is prescribed by hierarchy levels and by functional specialization the processes are dominated by the structure and not by clientorientation process follows structure All rights reserved. 15

16 The function-oriented organization paradigm originates from Taylorism Frederick W. Taylor ( ): Founder of scientifc management with the seminal work The principles of scientific management (1911) Core idea: Improvement in productivity can be achieved by functional and hierarchical division of labour Basic principles of Taylorism: separation of planning and execution act making the work process independent from the qualification of the workers (decompose in small single process steps) introduction of scientific management (standardization of work processes, standard execution times per step etc.) introduction of monetary incentives (bonus payments for exceeeding standard work loads) Area of application: originally in industrial production Most famous success story: Ford T-Model ( available in black only ) All rights reserved. 16

17 Case study: tayloristic work process in Manhattan Bank Financial Advisor Request department Organizational entitities Loan Department Contract department Loan request from client Check creditworthiness Activities Commercial Conditions of of Loan Legal Conditions of of Loan contract Final contract closure with client Organizational Interfaces All rights reserved. 17

18 Analysis of the loan process at the Manhattan Bank: the problem is the interface Current situation: At Manhattan Bank, the processing of a loan request takes 7 days on average, sometimes up to two weeks Clients are complaining about delays and errors Nobody is able to precisely monitor the actual degree of completion of any given loan request Findings: Each loan request is handled by many hands Pure processing time is 1 ½ hours, the remaining seven days are idle waiting times at interfaces Doubling processing speed can only reduce processing time by 45 minutes in relation to seven days waiting time Bottom line: The problem is not the execution of the work process but the functional division of labour with a multitude of interfaces (e,g, department boundaries, different media etc.) All rights reserved. 18

19 Agenda The client-centric economy of the information age Two perspectives on business enterprises Functional perspective Process perspective The business process concept The key role of IT From business process to business process engineering All rights reserved. 19

20 Process-oriented thinking leads to dynamic, process-oriented organizations Understanding a business enterprise as a dynamic entitiy The process of product / service delivery is considered the focus integration of all activities into one clear process flow to execute a task: seamless process from input to delivery of output clear responsibilities for the process and for the process results minimisation of interfaces and changes of people in charge The whole organization is aligned according to optimized customer satisfaction structure follows process All rights reserved. 20

21 Proposed resolution: shifting from function-oriented perspective towards process-oriented perspective Tayloristic processing of loan request Input Output Process-oriented processing of loan request All rights reserved. 21

22 Re-structured sample process at the Manhattan-Bank: process-oriented loan request organization Process owner: Loan processing group Loan request form Client data Process chain for loan requests Loan contract Input Process-oriented processing of loan request Output All rights reserved. 22

23 Comparison of tayloristic with business-process oriented organizations Tayloristic (functional) organization the static structure is key high degree of functional division of labour and of specialization many hierarchical levels many low-level skilled employees with atomized tasks suitable for stable, highly predictable business environment Business process-oriented organization delivering the business process or the service is key broad scope of responsibility fewer hierarchical levels broadly skilled employees with client-centric tasks suitable for dynamic, complex business environment All rights reserved. 23

24 Agenda The client-centric economy of the information age Two perspectives on business enterprises The business process concept The key role of IT From business process to business process engineering All rights reserved. 24

25 Business Process is the key concept in the process-oriented perspective A business process is isa collection of of related activities to to convert a specific set setof of inputs (Information, Products or or Services) into intoa desired output which is isof of value to to the theultimate customer, directly or orindirectly. [Hammer & Champy, 1995] Input Related activities ( Value chain ) Output of value to the customer Business processes normally draw upon a related collection of resources, e.g. men, material, machinery and money All rights reserved. 25

26 Interim result The business process concept is interesting, but why do we care about it being computer scientists? All rights reserved. 26

27 Agenda The client-centric economy of the information age Two perspectives on business enterprises The business process concept The key role of IT From business process to business process engineering All rights reserved. 27

28 The answer is: information systems are crucial for business processes in modern enterprises Business information systems support and enable business processes Client Order Manufacturing Delivery Invoicing Payment Processes are intrinsically accompanied by a corresponding data flow Integrated business information systems improve the efficiency by e.g reducing and avoiding interfaces simultaneous process steps through common data pools All rights reserved. 28

29 Illustration: Sample process before process-oriented reorganisation of related business information systems Supplier Production Purchasing dep. Accounting material requirements Quantity of required material Order of material Order material Order delivery receipt Control incoming material booking of new material delivery receipt Journal invoice account to products copy of invoice copy of invoice check invoice and assign to account copy of invoice recording of invoice payment of invoice Invoice Many data silos due to organizational silos All rights reserved. 29

30 Illustration: Sample process after process-oriented reorganisation of related business information systems Supplier Production Purchasing dep. Accounting material requirements and accounting information Order of material Execute order of material delivery receipt control of incoming material booking of new material invoice Control and payment of invoice Data silos have been replaced by a central enterprise-wide database -> informational networking (e.g. used in ERP-systems, SAP R/3) Data integration minimizes redundancy and interfaces, trade-off w/r to dependency IT-enabled processes are the key for process-oriented reorganization All rights reserved. 30

31 Agenda The client-centric economy of the information age Two perspectives on business enterprises The business process concept The key role of IT From business process to business process engineering All rights reserved. 31

32 Business processes are the connecting element between enterprise strategy and IT-system level Enterprise / Business strategy Business processes Information systems Business processes are at the core of any business in the middle between strategy and available information systems a business strategy can only become effective if implemented by business processes available information systems are the enabler and set the constraints for business processes and the business strategy All rights reserved. 32

33 Business process engineering implements the enterprise strategy by leveraging the potentials of Information systems Strategic rules and areas of operation Roadmap Process oriented adoption Strategic Business Objectives Business Process engineering Information technology Implements Enables and constrains All rights reserved. 33 Constraints for realistic strategies of operation Business process engineering is concerned with continually and deliberately re-organizing and optimizing business processes to implement the business strategy. In particular, business process engineering systematically leverages IT-capabilities for business processes Business process engineering is an interdisciplinary approach making use of distinct disciplines such as Process Modeling, Simulation, Workflow, Enterprise Application Integration (EAI) and Business-to-Business (B2B) integration

34 Business process engineering may be instantiated in a revolutionary as well in an evolutionary way Evolution Design Implement Evolution Analyze Revolution Analysis (Re)-Design Implement Operate Business process engineering may start with a revolutionary project caused by management / technological cycles analyzes basic opportunities and fundamental requirements for change basic re-thinking and conception of new solutions prepare for change adopt changed processes evolutionary, continuous improvements stemming from operations analyze ongoing operations design continuous improvement stepwise implementation of improvements All rights reserved. 34

35 Business process engineering in practice: From strategy via process models to execution Business strategy Design Geschäftsprozessmodell (Fachkonzept) Reengineering Analyze & Re-Design Modelling real world business processes Mapping to and implementing by executable programs Implementation Execution Execution model (Workflows, application programs, database schemes,... ) Program1 Program2 Program3 Data Data Data All rights reserved. 35

36 Summary of lecture 1 The economy in the information age requires efficient and flexible organizations Functionally specialized organizations are not very likely to meet current needs: organizations are considered as static entities A process-oriented perspective is needed: organizations are considered as dynamic entities delivering output which is of value to a customer Business process is a collection of activities that yield value to a customer In the information age, IT enables and drives process-oriented organizations Business process engineering (BPE) is the key concept for linking business strategy, business processes and IT to sustain competitive advantage Homework for May 25, 2007: Choose one of the two topics for the assignment. Hint: to learn more about the two topics, check out the following webpages: Topic 1: Topic 2: All rights reserved. 36

37 Preview to lecture 2 Process analysis and process modeling are the starting point for BPE -> lecture 2 will present a common modeling approach: Business process modeling with eepc All rights reserved. 37