Business Process Analysis

Stakeholders, Relevancy for process, Risk/Potential, Measures, Done by, Until

Name - ID - Description - Calculation - Unit - Measurement - Escalaction

Implementing an ERP system, many processes have to be adapted to the ERP. This is okay for standard processes but is a challenge for the processes creating a competitve advantage. Service Oriented Architecture helps adjusting the software to the process. This also helps change management in the company. SOA is more powerful because of its flexibility.

Two main categories of innovation:

Business model innovation: modified value proposition, new processes (e.g. supply chain), new target customers or markets
New technologies: new products and services, process technologies

BPM important facilitator for innovation, some companies regard innovation as permanent goal
Management of Process Excellence (MPE) 

combination of information, communication, and training regarding changes in existing business processes or the creation of new processes

change management ensures that all the necessary steps are executed asap

change management is a process in itself so it can also be managed as such

An integrated set of best-practice processes for delivering IT services to customers; contains detailed process descriptions, flows, success factors, metrics and implementation guidance that organizations can adapt to work in their environment.

1. Service Strategy – focusing on understanding customer needs, directions, requirements, helping improve IT over time
2. Service Design – focusing on turning strategies for services into a detailed Service description, not just the technology.
3. Service Transition – focusing on building, validating, and delivering new and changed services to customers
4. Service Operations – focusing on the day-to-day care and feeding of services
5. Continual Service Improvement – focusing on identifying and managing incremental improvements to services

Emergent business processes are knowledge-intensive processes in which the outcomes are unpredictable

Participants in emergent processes must continuously make sense of their situation
and decide, in real time, on the next steps to take

An infrastructure supporting emergence is clearly critical.

Inter-enterprise processes are business processes that are distributed across two or more organizations that are independent legal units
require special integration and coordination activities
allows the organization to focus on its core competencies, while benefiting from key strengths of other organizations
can lead to “collaboration innovation”
challenge: not one company can make the necessary decisions, so third-party service providers may be used

country specific factors (e.g. culture) has to be taken into account when designing processes -> country-specific variants of processes

one “master processes” to develop process variants for decentralized countryspecific processes

process of process management is affected by that

1 - Initial: Process unpredictable, poorly controlled, and reactive
2 - Managed: Process characterized for projects and is often reactive
3 - Defined: Process characterized for the organization and is proactive
4 - Quantitatifely managed: Process measured and controlled
5 - Optimizing: Focus on continuous process improvement

Six sigma: 6 standard deviations = max. 3.4 errors per million occurences

Lean: get rid of waste -> what the customer is not paying for

From the perspective of the actor (subject).
Formulate easy to understand steps with Subject - Predicate - Object (an employee submits her travel request)
 

organizations have traditionally focused on economic imperatives in terms of time, cost, efficiency, and quality
In order to lessen their impact on the natural environment, organizations must design and implement environmentally sustainable processes
only through process change, and the application of process-centred techniques, such as process analysis,
process performance measurement, and process improvement, can the transformative power of IS be fully leveraged in order to create environmentally sustainable organizations and, in turn, an environmentally sustainable society.

Social BPM is a discipline which combines traditional Business Process Management techniques with Web 2.0 "social" tools and technologies, to facilitate business improvement efforts.

Coordination issues
Low transparency on what is really done
Low customer involvement
Redundant data
Errors
Inconsistent product/service quality
Unclear procedures, competences …
Media breaks
Unnecessary waiting times

Trigger to start the process
Input such as customer data
Guides - company rules
Enablers - tools, manpower to fulfill the process
Output - what the process produces
Outcome - the benefit created
Blackbox itself is a sequence of actions

a collection of activities that takes one or more kinds of input
and creates an output that is of value to the customer

Process design (model, analyze, simulate)
Process implementation (change the organization, implement processes in IT systems)
Process controlling (check the actual status of the processes using predefined measures, going for continuous improvement)
Strategic process management (define goals, objectives, strategically change the organization, and the processes … )

performance issues
quality issues
e-business integration
Software integration
multiple distribution channels
quicker time-to-market
customer satisfaction improvement
single face to the customer
certification need

Reach consistency
Decrease cost
Increase speed
Maintain/ improve quality of process
Maintain/ improve quality of product

Mix between process- and functional organization
Process owner are responsible for process performance
Departments provide resources, services, …
Processes extend the functional organization
Different degrees of the “leading” form of organization possible
Conflicts towards responsibility, priorities, resources

Functional organization: Clearly arranged, Budgets, targets, etc. can be set for a department, Human resources are department-based, Knowledge towards a topic is held within a department, Each department has its “boss” - but interfaces between departments cost time and money
Process organization: not 100% possible (HR, Controlling)

Resources used
Complexity
Number of interfaces to other business units
Relevancy for the business strategy
Number/impact of risks

Value chain - Business Process - Subprocess - Process activity - Process task - Work instruction

- Core business processes: these processes understand, create, communicate,
deliver, reach, and ensure customer’s benefit (this is where you put the value
chain(s))
- Management processes: they develop goals, strategies, plan, lead; it’s about
establishing goals, controlling them and finally reaching them.
- Support processes: they are not visible to the customer, they support other
processes, they are required for running other processes

1. Strategy and governance
2. Process documentation and –design
3. Process controlling
4. Optimization and implementation of processes

What is BPM?
What is a process? - process worthiness criteria
Which standards are used?
Description of process lifecycle
Macro process management
- Classification and choice of processes in enterprise process model
Micro process management
– Template for process documentation
– Modeling notations preferred
– Frameworks used
Process organization – roles in BPM and basic descriptions
Definitions, contacts, abbreviations, feedback cycles, …

Leadership: engaged management, makes it a company-wide topic
Culture: customer first, not fearing change, embrace empowerment, foster learning, company goal
Governance: process manager / owner / team / office is needed
Expertise: in documenting / modeling / implementing processes, change management, program management