Piona Hotakainen
Contents
Chapter 1 – Intro for business process management (BPM) .................................................. 2
Ingredients of a business process....................................................................................... 2
Origins and history of BPM .................................................................................................. 4
The BPM lifecycle ................................................................................................................... 4
Chapter 2: Process identification ................................................................................................ 8
The context of process identification ................................................................................. 8
Definition of the process architecture .............................................................................. 10
Process selection ................................................................................................................. 15
Handout: Chapter 2.2 from 1st edition- Designing a process architecture ..................... 18
Chapter 3 Essential Process Modeling ..................................................................................... 24
Branching and merging ...................................................................................................... 25
Rework and repetition ........................................................................................................ 28
Business objects .................................................................................................................. 28
Resources.............................................................................................................................. 28
Process model reuse ........................................................................................................... 31
Chapter 5: Process Discovery .................................................................................................... 32
Process discovery methods ............................................................................................... 33
Process modelling method ................................................................................................ 36
Process model quality assurance ...................................................................................... 38
Chapter 11: Process monitoring ............................................................................................... 41
Process performance dashboard...................................................................................... 41
Introduction to process mining ......................................................................................... 43
Event log................................................................................................................................ 44
Automated process discovery ........................................................................................... 45
Process performance mining ............................................................................................. 46
Conformance checking ....................................................................................................... 47
Variant analysis .................................................................................................................... 48
Putting it all together........................................................................................................... 49
Chapter 6: Qualitative process analysis ................................................................................... 49
Value-added analysis .......................................................................................................... 49
Waste analysis ...................................................................................................................... 50
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Stakeholder analysis and issue documentation ............................................................. 52
Root cause analysis ............................................................................................................. 54
Chapter 7: Quantitative Process Analysis ................................................................................ 57
Flow analysis......................................................................................................................... 57
Queues .................................................................................................................................. 65
Simulation ............................................................................................................................. 68
Chapter 8: Process redesign ...................................................................................................... 69
Transactional method: Heuristic process redesign (Ch 8.2 from book version 1) ..... 73
Transformational methods (book 2018, not handout) .................................................. 77
Chapter 9 Process-aware Information Systems ..................................................................... 82
Types of Process-Aware Information Systems (PAIS) ..................................................... 82
Advantages of introducing a BPMS ................................................................................... 85
Challenges of introducing a BPMS .................................................................................... 86
Chapter 10 Process Implementation with executable models ............................................ 87
Chapter 12 BPM as an enterprise capability ........................................................................... 92
Barriers to BPM success ..................................................................................................... 92
The six success factors of BPM maturity .......................................................................... 93
Measuring Process Maturity and BPM Maturity ............................................................. 95
Chapter 1 – Intro for business process management (BPM)
Business Process Management (BPM) is the art and science of overseeing how work
is performed in an organization to ensure consistent outcomes and to take advantage
of improvement opportunities.
Improvement initiatives may be one-off or of a continuous nature; they
may be incremental or radical. Importantly, BPM is not about improving the way
individual activities are performed. Rather, it is about managing entire chains of
events, activities, and decisions that ultimately add value to the organization, and its
customers. These chains of events, activities, and decisions are called processes.
business processes are what companies do
whenever they deliver a service or a product to customers. The way processes are
designed and performed affects both the quality of service that customers perceive
and the efficiency with which services are delivered.
Ingredients of a business process
business process encompasses a number of events and activities.
- Events correspond to things that happen atomically, which means that they have no duration. E.g.
equipment arriving to a site = event.. Event can trigger the execution of actions
- When an activity is rather simple and can be seen as one single unit of work, we call it a TASK e.g.
inspect if equipment arrived.
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- When activity is more complex (e.g. multiple checks), we call it ACTIVITY.
In addition to events and activities, a typical process includes decision points,
that is, points in time when a decision is made that affects the way the process is
executed. This decision affects what happens later in the process
A process also involves:
• Actors, including human actors, organizations, or software systems acting on
behalf of human actors or organizations. Actors can be internal or external. The internal actors are
those who operate inside the organization where the process is executed. These actors are called
process participants. In the example at hand, the clerk, the site engineer, and the
works engineer are process participants. On the other hand, external actors operate
outside the organization where the process is executed. For example the equipment
supplier is an external actor (a.k.a. business party).
• Physical objects, such as equipment, materials, products, paper documents.
• Informational objects, such as electronic documents and electronic records.
Finally, the execution of a process leads to one or several outcomes. Positive outcome and Negative outcome.
Among the actors involved in a process, the one who consumes the output is
called the customer. Internal customer e.g. employee in organization. External customer e.g. order-to-cash
customer (like someone who buys an ice cream in store). There can be multiple customers
Things to consider in a process:
1. Who are the actors in this process?
2. Which actors can be considered as customers in this process?
3. What value does the process deliver to its customers?
4. What are the possible outcomes of this process?
Definition of BP: we define a business process as a collection of inter-related
events, activities, and decision points that involve a number of actors and objects,
which collectively lead to an outcome that is of value to at least one customer.
Definition of BPM: we define BPM as a body of
methods, techniques, and tools to identify, discover, analyze, redesign, execute, and
monitor business processes in order to optimize their performance. This definition
reflects the fact that business processes are the focal point of BPM. It also reflects
the fact that BPM involves different phases and activities in the lifecycle of business
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processes
One of the features commonly
associated with BPM is its emphasis on the use of process models throughout the
lifecycle of business processes.
Origins and history of BPM
Taylor proposed a set of principles known as scientific management in 19th century. Workers got their roles
and hierarchy was implemented. A side effect of the ideas of Taylor and his contemporaries was the
emergence of an altogether new class of professionals—the class of managers. After the emergence of
managers, organizations became structured along the principles of labor division. However, Taylorism had
its shortcomings and caused problems such as inefficiencies in operations that affected negatively
competitiveness.
The work by Davenport and Short, as well as that of others, chiefly Michael
Hammer, triggered the emergence and widespread adoption of a management
concept that was referred to as Business Process Redesign or Business Process
Reengineering, often conveniently abbreviated as BPR. The enthusiasm for BPR faded away by the late
1990s. Many companies terminated their BPR projects and stopped supporting further BPR initiatives.
Subsequently, two key events revived some of the ideas behind BPR and laid
the foundation for the emergence of BPM.
First of all, empirical studies appeared,
showing that organizations that were process-oriented—that is, organizations that
sought to improve processes as a basis for gaining efficiency and satisfying their
customers—factually did better than non-process-oriented organizations. KevinMcCormack [107]
investigated a sample of 100 US manufacturing organizations. He found that process-oriented
organizations showed better overall performance, tended to have a better esprit de corps in
the workplace, and suffered less from inter-functional conflicts
A second important development was technological in nature. Different types of
IT systems emerged,most notably Enterprise Resource Planning (ERP) systems and
Workflow Management Systems (WfMSs). This idea of a single shared and centralized database
enables the optimization of information usage and information exchanges, which is a key enabler
of process improvement
The BPM lifecycle
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