Business

Process
Management
Business Process Management (BPM) is a
broad term that refers to the way your
company manages its business processes.
BPM helps you discover, visualize, analyze,
improve, and automate your processes.

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 Key Concepts
Business Process Management
Business Process Management (BPM) is a systematic approach that is used
to make an organization's workflow effective, efficient and responsive to
changing environment.

Purpose of BPM
To reduce human error and avoid miscommunication. Link operational
processes to corporate strategies. Measure performance indicators
from processes for evaluation of business success.

Business Process Model

A Business Process Model (BPMd) typically consists of workflow diagrams,
descriptions, inputs and outputs, KPIs and data that provide both overview
and detailed information about an organization’s business processes.
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 Key Concepts
Utility of Business Process Model
It helps to measure process requirements and eliminates the risk of
losing value through inefficient or inappropriate activities.

BPM Software
Software that allows users to create BPM diagrams and integrate process
content with critical business entities (departments, resources, etc.)

Business Process Re-engineering (BPR)

The realignment of business process strategies through an analytic tool and
an intense consultation process. BPR is an off-shoot of BPM
implementation that involves a great deal of risk due to change
management.

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 Key Concepts
Business Process Design (BPD)
BPD is the systematic working by which an organization understands, defines and
documents the business activities that enable it to function efficiently, effectively
and economically.

Business Process Model (BPMd)

Illustrated description of business processes, usually created with flow diagrams.
The model contains the relationship between activities, processes, sub-processes
and information, as well as roles, the organization and resources. It is also termed
as Business Process Mapping.

Workflow Simulation & Analysis

An executable specification of a workflow that is used to simulate the behavior of
the workflow under different circumstances. This application is a typical example
of decision support in matters as BPR and operational control. Various qualitative
and quantitative analytical methods have been developed to assess the
effectiveness of
existing or new workflows. 5
 Important Terms
Process
Sequence of interdependent and interlinked activities which, at every stage, consume one or
more resources (employee time, energy, machines, money) to convert inputs
(data, material, parts, etc.) into outputs.

Sub-process
A sub-process is a compound activity that is included within a task (process). Each task may
have its own sub-processes. Each sub-process can also contain other sub-processes.

Activities
Activities are the lowest-level process steps in modeling software where actual work is
performed. Activities cannot be broken down into further steps.

Process Owner
The person (Resource) responsible for the process.

Key Performance Indicators (KPIs)

KPIs are descriptive time, cost or quality indicators used to capture the performance of a
process.
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 Important Terms
Job Description or Roles
Roles represent specific skill sets, responsibilities or positions in a business
environment. Roles allow the modeler to define criteria required for performing
the activity, rather than the specific individuals who will perform the activity.

Scope of a Process
It describes the boundaries of a process and includes start and end points, the
context in which the process is performed and elements excluded from that
context.

Workflow Diagram
It refers to a simple form of flowchart depicting the flow of tasks or actions
from one person or group to another. It typically consists of a set of symbols
representing actions or individuals connected by arrows indicating the flow
from one to another.

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 Benefits of BPM
1. Improves process quality, reliability, and output.
2. Helps for continuous process improvement that provides foundations for BPR.
3. Maximizes process visibility that helps in reducing costs.
4. Improves strategic decision-making by providing the correct information at the
correct time. It provides end-to-end performance visibility and resource
optimization.
5. Improves operational efficiency that results in the avoidance of wastage
and loss of company resources.
6. Consistent execution reduces process cycle time.
7. Improves customer satisfaction by delivering better and enhanced value.
8. Promotes organizational flexibility and business agility.
9. Promotes communication and collaboration between departments.
10. Helps in standardization of procedures.
11. Helps in measuring KPIs and thus improves accountability.
12. Promotes safe working conditions that protect company resources.
13. Defines roles and responsibilities that increase employee efficiency and
satisfaction.
14. Simplifies regulatory compliance.
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 Process Composition
Process

Sub-process 1 Sub-process 2 Sub-process 3 Sub-process 4 Sub-process N

Activity 1 Activity 2 Activity 3 Activity 4 Activity N

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 BPM Life-Cycle
Following are stages in BPM
Life-Cycle:
 Designing,
 Modeling,
 Executing,
 Monitoring &
 Optimizing

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 1. Designing
BPD is the systematic working by which an organization understands, defines and
documents the business activities that enable it to function efficiently, effectively and
economically.

The purpose of BPD is to ensure that processes are optimized, effective, meet
customer requirements, support and sustain organizational development and growth.

Designing a process that improves corporate performance is a challenging task that

requires multi-disciplinary expertise and a plethora of inputs (for instance,
organizational strategies, goals, constraints, human and technical capabilities, etc.).

The most common requirements of a BPD are:

 Customer and supply chain management
 Operational performance improvement
 Business process integration and automation
 Cost reduction
 New business opportunities.
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 2. Modeling
The output of a BPD project is a streamlined, comprehensive, easy-to-use
model of the ways in which a business delivers output to its customers. One
of the key purposes of process modeling is to provide a “process view” of the
business.

BPMd typically consists of a set of diagrams, textual descriptions and

data elements that provide both overview and detailed information about
the business processes in a format that is easily understood by everyone.

The key components of a typical BPMd are as given below:

 The set of processes and activities that take place within an
organization
 A written description of each process or activity or task
 Workflow diagrams
 Inputs & outputs
 KPIs
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 3. Executing
It refers to automating processes by using BPM application
software that executes the required steps of a process. BPM
soft-wares are either purchased or developed to fit to the
requirements of a company.

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 4. Monitoring
Monitoring refers to tracking of individual so that
processes, information about them can be checked.

An example of the tracking is being able to determine the stage of a

customer order (e.g. order arrived, awaiting delivery, invoice paid) so
that problems in its operation can be identified and corrected.

The degree of monitoring depends on what information a business

requires to evaluate and analyze and how that business needs it to be
monitored, in real-time, near real-time or ad-hoc. Here, business
activity monitoring extends and expands the tools
generally
monitoring provided by Business Process Management
(BPMS). Suites

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 5.
Optimizing
Refers to retrieving process performance information
from
monitoring phase, identifying the potential or
actual problems, recognizing the opportunities cost
cuttings
for or further improvements and then, applying those
enhancements in the design of the process. In more specific
terms, optimizing may include the following activities:

 Improve processes and performance by reducing

inefficiencies identified during monitoring.
 Simulate these changes using “what-if” simulation.
 Determine which changes will deliver the maximum
improvement.

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Business Process Reengineering (BPR), as
defined by the U.S. Government Accountability
Office (GAO), is a systematic, disciplined
improvement approach that critically examines,
rethinks, and redesigns mission-delivery
processes to achieve dramatic improvements in
performance in areas important to customers and
stakeholders.

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 Brief Background
Hammer and Champy (1990s) felt that the design of workflow in
most large companies was based on facts about
technology, people, practices, and organizational goals that were no
longer
applicable.
They suggested seven principles of re-engineering to streamline the
work process and, thereby, achieve significant levels of improvement in
quality, time management, and cost:
1. Organize around outcomes, not tasks.
2. Identify all the processes in an organization and prioritize them in order
of redesign urgency.
3. Integrate information processing work into the real work that produces
the information.
4. Treat geographically dispersed resources as though they were centralized.
5. Link parallel activities in the workflow instead of just integrating their
results.
6. Put the decision point where the work is performed, and build control into
the process.
7. Capture information once and at the source. 20
 Methodology
BPR involves the redesign of business processes to achieve improvements
in productivity, cycle time, quality and cost.

BPR review starts with the description of existing business processes to

deliver more value to the customers.

BPR typically adopts a new value system that places emphasis on

customer needs. They remove unnecessary organizational layers and
eliminate unproductive activities in two key areas.

First, BPR redesigns functional organizations into cross-functional teams.

Second, BPR uses technology to improve data dissemination and

decision making process.

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Case Study -- Taco Bell
Taco Bell (founded in 1962, California) created K-Minus Program
(Kitchen-less Restaurant) based on the fact that they are a retail service
company, not a manufacturing company. In the new process, meat, beans,
corn shells, lettuce, tomatoes and cheese for their products are prepared
outside of the restaurants in central commissaries. At Taco Bell
restaurants, the food ingredients are prepared when ordered for customer
consumption. Taco Bell has produced the following results: greater quality
control, better employee morale, fewer employee accidents and injuries, big
savings and more time to focus on the customer satisfaction. Currently,
they are redefining how to deliver their food services, by taking their food
service to public gathering places such as dining centers, schools,
universities, airports, and stadia. Taco Bell has progressed from a $. 500
million regional company in 1982 to a $. 1.9 billion in 2009 a national
company. (Hammer & Champy 1993, pg. 178-
179)
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 Abbreviations
Abbreviatio
# Complete Term
n s
1 IT Information Technology
2 BPD Business Process Design
3 BPM Business Process Management
4 BPMd Business Process Model
5 BPMS Business Process Management Suites
6 KPIs Key Performance Indicators

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 Appendix A: List of BPM soft-wares
# BPM Software Website

1 Accu Process Modeler http://www.accuprocess.com

2 RunMyJobs http://www.runmyjobs.com

3 BPMS http://www.sydle.com

4 BPM from IBM http://www-142.ibm.com

5 ProcessMaker http://www.processmaker.com

6 Appian BPM Suite http://www.appian.com

7 webMethods BPMS http://www.softwareag.com

8 Ultimus BPM & Workflow Solution http://www.ultimus.com

Software
9 Progress® Savvion®, http://www.progress.com

10 Sequence KineticsTM BPM Software http://www.pnmsoft.com/

11 Oracle Business Process Management http://www.oracle.com/us/technologies/bp

Suite m
12 Skelta BPM & Workflow Software http://www.skelta.com

13 SharePoint 2010 https://www.microsoft.com

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Appendix B: Books on BPM
# Title of Book Publisher

1 BusinessProcess M a n ag e m e Springler
nt
2 B u s i n e s sP r o c e s sM a n a g e m E m e r e o Pt y Lt d
ent BPM 100 Success
Secrets
3 D e l i v e r i n gt h e V a l u e o f B P M A ccent ure
4 H andbook on BPM 2 Springler
5 BPM: Practical G BH
u i d e l i n e s fo r S u c c e s s f u lI
mplementation
6 BusinessProcess M a n ag e m e E d e n h o v e n U n i v e r s
nt ity
D e m y s t i fi e d :A T u t o r i a l on of T echnology
Models 25