Modeling in the Large Keynote
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The document discusses how large organizations approach Business Process Management (BPM), focusing on modeling, collaboration, and the challenges of integrating innovative process designs while managing existing practices. It outlines common problems such as process confabulation and paper bias, and advocates for a structured enterprise process architecture. The need for effective governance, resource management, and commitment to change is emphasized as critical for successful BPM adoption.
Modeling in the Large Keynote
- 1. Process in the Large From Enterprise Process Wikis to Crowdsourced Process Designs Michael zur Muehlen, Ph.D. Center for Business Process Innovation Howe School of Technology Management Stevens Institute of Technology Hoboken NJ [email protected] 1 Sunday, September 19, 2010
- 2. 2 Sunday, September 19, 2010
- 3. Agenda How large organizations approach BPM What’s different about Process in the Large Wikis and Collaboration Some insights 3 Sunday, September 19, 2010
- 4. Part 1: How Large Organizations Approach BPM 4 Sunday, September 19, 2010
- 5. “Let’s try this out carefully” Choose a single pilot process to gain experience with BPM Good: High-value, low-medium risk business case Example: Onboarding, Claims Processing Bad: No-value, no-risk business case Example: Vacation request, Expense reimbursement 5 Sunday, September 19, 2010
- 6. Scheduled Project Time during First BPM Project Business Case Project Team Selection Process Discovery Documentation Functional and Technical Specification Tools Evaluation and Selection Implementation Testing and Debugging Deployment and Training 6 Source: BPTrends (2006) Sunday, September 19, 2010
- 7. Scheduled Project Time during First 41% BPM Project 3% 5% 8% 4% Business Case Project Team Selection Process Discovery 7% 9% Documentation Functional and Technical Specification Tools Evaluation and Selection 12% 11% Implementation Testing and Debugging Deployment and Training 6 Source: BPTrends (2006) Sunday, September 19, 2010
- 8. Problem: Process Confabulation Problem People should know why they perform tasks If they don’t, they make up explanations Consequence Accurate process discovery becomes difficult Reinforces assumptions that participants share about the process (Black Swan problem) Solution Observe rather than ask Follow the process object Rainy Day Approach: Use Specific Examples 7 Sunday, September 19, 2010
- 9. Problem: Paper Bias Problem Process designs mimic paper-based processes Consequence Innovative designs are overlooked Inefficiencies remain because technology capabilities are underutilized But: Processes are easily understood by those who are used to paper Solution Model backwards Focus on data dependencies 8 Sunday, September 19, 2010
- 10. “Let’s model everything” Need an Enterprise Process Architecture Comprehensive Process Documentation Motivation Compliance Requirements Developing Global Standards Mergers and Acquisitions “We like to model” 9 Sunday, September 19, 2010
- 11. Enterprise Process Map: APQC Operating Processes 2.0 3.0 4.0 5.0 1.0 Design and Market and Deliver Manage Develop Vision Develop Sell Products Products and Customer and Strategy Products and and Services Services Service Services Management and Support Processes 6.0 Develop and Manage Human Capital 7.0 Manage Information Technology 8.0 Manage Financial Resources 9.0 Acquire, Construct, and Manage Property 10.0 Manage Environmental Health and Safety 11.0 Manage External Relationships 12.0 Manage Knowledge, Improvement, and Change 10 Source: APQC (2007) Sunday, September 19, 2010
- 12. Enterprise Process Map: Fortune 500 Level concept Roles & Responsi- Convention handbook bilities Modeling Process Owners handbook Corporate Process Modeling Managers Service Methods Organization 11 Sunday, September 19, 2010
- 13. Process Abstraction Levels Level A Business Activities Business Activities Objectives Scorecard Level B Process Groupings Process Groupings Ownership Services Level C Core Processes Core processes Delivery Units Products Level D Business Process Flows Processes Delivery Teams Systems Level E Operational Process Flows Sub Processes Roles System Functions Level F Detailed Process Flows Detailed Processes Detailed Roles Transactions Source: British Telecommunications plc 2006 12 Sunday, September 19, 2010
- 14. Process Abstraction Levels Level A Business Activities Business Activities Objectives Scorecard Level B Process Groupings Process Groupings What Ownership Services Level C Core Processes Core processes Delivery Units Products Level D Business Process Flows Processes Delivery Teams Systems Level E Operational Process Flows Sub Processes Roles System Functions Level F Detailed Process Flows Detailed Processes Detailed Roles Transactions Source: British Telecommunications plc 2006 12 Sunday, September 19, 2010
- 15. Process Abstraction Levels Level A Business Activities Business Activities Objectives Scorecard Level B Process Groupings Process Groupings What Ownership Services Level C Core Processes Core processes Delivery Units Products Level D Business Process Flows Processes Delivery Teams Systems Level E Operational Process Flows Level F Sub Processes How Roles System Functions Detailed Process Flows Detailed Processes Detailed Roles Transactions Source: British Telecommunications plc 2006 12 Sunday, September 19, 2010
- 16. Enterprise Process Architecture Strategy IT Management Accounting Enterprise Process Map Purchasing Marketing Order Sales Receiving Warehouse Distribution Invoice Billing Accounts Accounts General Accounting and Asset Cost Accounting Human Resources Business Activities Objectives Scorecard Process Groupings Ownership Services Process Levels Core processes Delivery Units Products Processes Delivery Teams Systems Sub Processes Roles System Functions Detailed Processes Detailed Roles Transactions 13 Sunday, September 19, 2010
- 17. Modeling Levels Milestones Handoffs Decisions Procedures DWiz/DCMO/BMA CTO/CA Sunday, September 19, 2010
- 18. “We’re doing SOA, let’s figure out this BPM stuff later” Typical Procedure Analyze existing systems Establish basic services Implement Enterprise Services Bus Try to identify processes that can leverage the services Problem Without processes there is no point of reference for services abstraction granularity usage frequency 15 Sunday, September 19, 2010
- 19. SOA - What Developers See 16 Sunday, September 19, 2010
- 20. Services - What Architects See 17 Sunday, September 19, 2010
- 21. What the Customer Wants 18 Sunday, September 19, 2010
- 22. Part 2: What’s Different about Process in the Large 19 Sunday, September 19, 2010
- 23. Commitment to Change Value Proposition Governance Project Management Setup Design Maintenance Info. Tools Modelers Users Providers and Lang. Issues Framework 20 Sunday, September 19, 2010
- 24. Strategy-related Issues Top Economic Value Management Governance (economics) Support Lack of value Commit- End-goal Focus on ROI metrics (i.e., Lack of Corporate Ownership ment to Sponsorship Incentives Costs Politics perceptions Initiatives Justification Balanced Benchmarks standards of models long term Scorecard) Costs Lack of New tool associated with Lack of Training coordination acquisition updating the control point models Strategy-related Issues 21 Sunday, September 19, 2010
- 25. Process Modeling Life Cycle Issues Setup Design Maintenance Lack of Lack of Lack of Consoli- Model quality Variant modeling standards common Infrastructure Rework Timeliness dation and assurance management objectives for reuse methodology Integration Corporate Level of Model Modeling modeling abstraction maintenance guidelines standard Modeling-related Issues 22 Sunday, September 19, 2010
- 26. Resource-related Issues Process Information Tool and Model User Modeler Provider Language Level of Hierarchical Lack of Integration Lack of Limited expertise Capability BPM Level of decompo- using full with other adequate access to and to abstract education complexity sition of toolset modeling toolset repository experience models features tools Resistance Lack of good Lack of Lack of efficient Cost Turnaround to change / Knowledge Integration graphical model repository search efficiency time adoption of sharing of activities process utilization engine BPM mapping Lack of Lack of Loss of Intellectual transfer communication knowledge property Resource-related Issues 23 Sunday, September 19, 2010
- 27. Capability-Driven 24 Sunday, September 19, 2010
- 28. Goal-Driven 25 Sunday, September 19, 2010
- 29. Wikis and Collaboration 26 Sunday, September 19, 2010
- 30. Process Wiki 27 Sunday, September 19, 2010
- 31. Process Wiki (2) 28 Sunday, September 19, 2010
- 32. 29 Sunday, September 19, 2010
- 33. Collaboration 30 Sunday, September 19, 2010
- 34. Issues around Process in the Large 31 Sunday, September 19, 2010
- 35. Issues around Process in the Large Identification of Best Practices Building shared understanding of Models Federation of Process Designs Federation of Process Metrics Compliance Checking Organizational Alignment 31 Sunday, September 19, 2010
- 36. Final Thought Methods don’t matter 32 Sunday, September 19, 2010
- 37. Final Thought Methods don’t matter until you’ve picked one 32 Sunday, September 19, 2010