Business Communication

An Introduction to Business Process Management: Tools

and Techniques

An Introduction to Business An Introduction to Business Process Management: Tools Process Management: Tools

and Techniquesand Techniques

Presented by Arthur Hedge

© Copyright 2007 Castle Ventures LLC

• What is Business Process Management?

• Why it matters

• Design Tools StandStand--alonealone

IntegratedIntegrated

• Vendors

• Questions

AgendaAgendaAgenda

1. Way to Improve Operations

2. A Software Category

“Business Process Management encompasses the design, automation, management, and continuous improvement of business processes.”

What is It?What is It?What is It?

• Definition of Business Process “A business process is the complete set of

end to end activities required to complete a transaction that provides value to a customer.”

Business ProcessesBusiness ProcessesBusiness Processes

SUPPLIERSSUPPLIERS CUSTOMERCUSTOMERPROCESSPROCESSINPUTINPUT OUTPUTOUTPUT

• Total Quality Management

• Six Sigma

• Lean

• ISO 9001

Process Methodologies and BPMProcess Methodologies and BPMProcess Methodologies and BPM

Processes must be managed and improved! This involves:

• Defining the process • Measuring process performance (metrics) • Reviewing process performance • Identifying process shortcomings • Analyzing process problems • Making a process change • Measuring the effects of the process change • Communicating both ways between supervisor

and user

Process ManagementProcess ManagementProcess Management

Process embedded in code

Process easily changed

Presentation Layer

Application Layer

Data Layer

Process LayerPresentation Layer

Application Layer

Data Layer

Traditional

4-Layer Architecture

BPM ArchitectureBPM ArchitectureBPM Architecture

Gartner Survey Gartner Survey –– BPM Project SuccessBPM Project Success

Source: Gartner Research Report

Experienced >90% success rates in BPM projects9595%%

Multi-department projects (3 or over)75%75%

Projects completed in < 6 months67%67%

Projects completed in 4 months or less50%50%

Projects currently underway; 25% had 6 or more75%75%

Source: Gartner Research Report

Gartner Survey – BPM ROI StatisticsGartner Survey Gartner Survey –– BPM ROI StatisticsBPM ROI Statistics

Achieved at least >10% ROI100%100%

Greater than 15% ROI78%78%

ROI greater than $100,000 per project77%77%

ROI greater in $100,000 - $500,000 range55%55%

• Integrate applications across the entire business process

• Provide a single point of entry for related data

• Reduce or eliminate human error

• Replace people tasks with automated tasks

• Reduce or eliminate waiting time for tasks

• Provide real-time status about processes to management

BenefitsBenefitsBenefits

• Started in the 1980s as an adjunct to Imaging and Document Management systems.

• For our purposes we are using a subset of potential definitions to refer to Workflow as the set of tools necessary to route, manage, and monitor the creation of Electronic documents.

• Structured and collaborative processes

WorkflowWorkflowWorkflow

Problems Addressed by BPMProblems Addressed by BPMProblems Addressed by BPM

=Content retrieval and publishing

=XCreation of documents =Ad-hoc process flow

XXRepeatable process

=System-to-system communication

X=Human-to-system communication

XXHuman-to-human communication

BPMWF

• Procure to Pay Process Business IssuesBusiness Issues

7 Payment methods, six manual 7 Payment methods, six manual

SolutionSolution WebWeb--Based ProcurementBased Procurement FileNET Imaging SystemFileNET Imaging System SAP WorkflowSAP Workflow

• Inception to Order Process Business IssuesBusiness Issues

Lack of Clarity of RolesLack of Clarity of Roles Inconsistent schedulingInconsistent scheduling

SolutionSolution Map out Complete Business ProcessMap out Complete Business Process Define handoffsDefine handoffs

ExamplesExamplesExamples

• Casino Operations Business Issues Manual processes take too long, too many errorsManual processes take too long, too many errors

Solution Solution –– Phase 1Phase 1 Business Process AnalysisBusiness Process Analysis Improve Data IntegrationImprove Data Integration Automate individual tasksAutomate individual tasks

• Reinsurance Company Business IssuesBusiness Issues

Lack of Communication between IT and BusinessLack of Communication between IT and Business SolutionSolution

Map out Complete Business ProcessesMap out Complete Business Processes Training in ObjectTraining in Object--oriented oriented developmentdevelopment Integrated SolutionIntegrated Solution

ExamplesExamplesExamples

• Graphical Design Tool

• Integration with Analysis Tools

• Version Control

• Process Simulation

• Forms Generator

• User Management

• Business Rules

• Prebuilt templates

Design ToolsDesign ToolsDesign Tools

• Microsoft: VISIO

• EMC: ProActivity Suite

• Metastorm: ProVision

• iGrafx: iGrafx Process

• IDS Scheer: ARIS Process Platform

• Casewise: Corporate Modeler

• Telelogic Popkin System Architect

• CA: ERWin

Product Survey – Modeling ToolsProduct Survey Product Survey –– Modeling ToolsModeling Tools

• Phaon: Beacon

• Ultimus: Ultimus BPM Suite

• Captaris: Captaris Workflow

• Metastorm: e-Work

• Lombardi Software: Teamworks

• Savvion: Business Manager, Process Modeler

• Appian: Appian Enterprise

Product Survey – BPM Engines (SM)Product Survey Product Survey –– BPM Engines (SM)BPM Engines (SM)

• IBM: Wepshere Business Process Integration Suite

• IBM: FileNET P8 Business Process Manager

• Documentum: Business Process Manager

• TIBCO: iProcess Suite (From Staffware)

• BEA: BEA Aqualogic and Fuego BPM

• Intalio: Business Process Management System

• Pegasystems: Smart BPMSuite

Product Survey – BPM Engines (Large)Product Survey Product Survey –– BPM Engines (Large)BPM Engines (Large)

DEMO

BPM ToolsBPM ToolsBPM Tools

1. Have Executive Sponsorship

2. Have a Process Owner

3. Change Management Plan

4. Define Business Objectives

5. Understand Customer Objectives

6. Map out as-is process

7. Map out to-be process

8. Simulate to-be process

9. Develop iteratively

10. Be Prepared to Change

Top Ten Rules for SuccessTop Ten Rules for SuccessTop Ten Rules for Success

• BPM Recap

• The benefits

SummarySummarySummary

Contact Information

Arthur Hedge

President of Castle Ventures LLC

[email protected]

973-538-8004

QuestionsQuestionsQuestions