Business Process Management

By Darshini Darwin on August 22, 2016

Business Process Management (BPM) is the art and science of monitoring how work is performed in an organization to ensure consistent outcomes and to take advantage of improvement opportunities. BPM is the process of 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.

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        Business Process Management

Business Process

            A business process encompasses a number of events and activities. Events correspond to things that happen atomically, i.e. they have no duration. When an activity is rather simple and can be seen as one single unit of work, it is known as task. A typical process involves decision points, that is, points in time when a decision is made that affects the way the process is executed. A process also involves a number of actors (human actors, organizations, or software systems acting on behalf of human actors or organizations), physical objects (equipment, materials, products, paper documents) and immaterial objects (electronic documents and electronic records). The execution of a process leads to one or several outcomes. Outcome delivers value to the actors involved in the process. The actor who consumes the output of the process is known as customer.

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                        Ingredients of a business process

BPM Life Cycle

             BPM Life Cycle is the set of activities which constitutes the foundation of business process management methodology.

Process Identification

In this phase, a business problem is posed, processes relevant to the problem being addressed are identified, delimited and related to each other. The outcome of process identification is a new or updated process architecture that provides an overall view of the processes in an organization and their relationships.

Process Discovery or As-Is Process Modeling

            In this phase, the current state of each of the relevant processes is documented, typically in the form of one or several as-is process models.

The major steps involved in this phase includes:

  • Identify the right people.
  • Ask the right questions.
  • Depict the “As-If” Process.
  • Sunny-day Vs Rainy-day scenario i.e. Happy and exceptions paths.

Process Analysis

In this phase, issues associated to the as-is process are identified, documented and whenever possible quantified using performance measures. The output of this phase is a structured collection of issues. These issues are typically prioritized in terms of their impact, and sometimes also in terms of the estimated effort required to resolve them.

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                                          BPM lifecycle

 Process Redesign or Process Improvement

The goal of this phase is to identify changes to the process that would help to address the issues identified in the previous phase and allow the organization to meet its performance objectives. To this end, multiple change options are analyzed and compared in terms of the chosen performance measures. This entails that process redesign and process analysis go hand-in-hand: As new change options are proposed, they are analyzed using process analysis techniques. The output of this phase is typically a to-be process model, which serves as a basis for the next phase. The major areas to be focused include: representation of process flow and actors, alerts and notifications, escalations, standard operating procedures, service level agreements and task hand over mechanisms.

The steps involves in this phase are:

  • Modelling
    • BPMN & Web-based Collaboration.
  • Simulation
    • Resource Allocation
    • Flow branches and events probability.
    • What-if Analysis.
    • Historical Data use.
  • Implementation
    • Workflow Modelling & Data.
    • Participant Management.
    • User Interface Design.
    • Application Integration.

 Process Implementation

In this phase, the changes required to move from the as-is process to the to-be process are prepared and performed. Process implementation covers two aspects: organizational change management and process automation. Organizational change management refers to the set of activities required to change the way of working of all participants involved in the process. Process automation refers to the development and deployment of IT systems that support the to-be process. The basic features of this phase includes Process Instance Management, Worklist Management, and Web Form Interaction.

 Process Monitoring and Controlling

Once the redesigned process is running, relevant data are collected and analyzed to determine how well the process is performing with respect to its performance measures and performance objectives. Bottlenecks, recurrent errors or deviations with respect to the intended behavior are identified and corrective actions are undertaken. New issues may then arise, in the same or in other processes, requiring the cycle to be repeated on a continuous basis.

Source

http://otgo.tehran.ir/Portals/0/pdf/Fundamentals%20of%20Business%20Process%20Management_1.pdf

https://www.ingegneria.unisalento.it/c/document_library/get_file?folderId=22317741&name=DLFE-74044.pdf

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