This presentation highlights the importance of Business Process Management in creating next-generation business process applications. This webinar highlights the value of business process applications, and how to create and use them to improve operations and outcomes. Topics include: • How BPM suites became recognized as business problem solvers • The critical componentry of high-value BPM suites • How to analyze, design and manage business processes and create business process applications

1. Creating Modern Business Process Driven Applications
with BPM
Carl Lehmann
Research Manager | 451 Research | Boston, Massachusetts

2. About
 One company with 3 operating  200+ staff
divisions  1,300+ client organizations:
 Syndicated research, advisory, enterprises, vendors, service
professional services, datacenter providers, and investment firms
certification, and events  Organic and growth through
 Global focus acquisition
2

3. Applications are changing
From task driven … …to process driven
What’s the difference?
3

4. Applications are changing
From task driven … …to process driven
What’s the difference?
• Rules, policies
• Decisions
• Options
• Metrics
• Customization
• Adaptability
4 • Complexity

5. Applications are changing
From task driven … …to process driven
What’s the difference?
• Rules, policies
• Decisions
• Options And because that’s the way the
• Metrics customer wants to do business!
• Customization
• Adaptability
5 • Complexity

6. Creating Process Driven Applications with BPM
 How BPM suites became recognized as
business problem solvers
 Anatomy of a business process application
 The critical componentry of BPM suites
 How to analyze, change and manage
business processes and create business
process applications
 Conclusion: Creating Process Driven
Applications with BPM
6

7. Creating Process Driven Applications with BPM
 How BPM suites became recognized as
business problem solvers
 Anatomy of a business process application
 The critical componentry of BPM suites
 How to analyze, change and manage
business processes and create business
process applications
 Conclusion: Creating Process Driven
Applications with BPM
7

8. How BPM gets started
 A problem that IT can’t fix
 No time, no resources, too costly
 Group leaders look elsewhere for:
 Process improvement
 Ways to do more with less
 Ways to manage compliance
 Process standardization across
departments, groups, regions, etc.
 Improved visibility
 Quick changes, at less cost
 Hey! BPM solves problems! Let’s do
more!
 BPM suites are becoming next
generation AppDev and DevOp
platforms
8

9. How to think about BPM, processes and applications
 Misconceptions about BPM…
• A methodology
• A cost cutting initiative
• New technologies
 BPM is a managerial discipline focused on execution, adaptation and
consistent performance
 Processes are assets and must be managed as such
 A new definition emerges…
• Process – an asset of execution that affects the quality of a product, service or
brand to uniquely satisfy customer needs and differentiates its executor from
competitors
 BPM requires transaction-oriented software applications to yield to
business process applications
9

10. Creating Process Driven Applications with BPM
 How BPM suites became recognized as
business problem solvers
 Anatomy of a business process application
 The critical componentry of BPM suites
 How to analyze, change and manage
business processes and create business
process applications
 Conclusion: Creating Process Driven
Applications with BPM
10

11. What is a business process application?
The system created after careful design, analysis and redesign of a
complex set of activities that manage resources required to achieve a
business objective. It enables stakeholder collaboration, governs
execution through polices and rules, and measures the achievement of
specific performance, compliance and outcomes.
11

12. In other words…
A business process application turns this...
Into something like this…
12

13. In other words…
Or this...
Into something like this…
13

14. Anatomy of a business process application
1. Capture/manage data, content, activities, tasks and workflow
2. Create/manage roles
3. Capture KPI set(s), policies, business rules, performance threshold(s),
compliance
4. Assemble/aggregate information from distributed disparate sources,
internal and external
5. Execute work, monitor events, states, sense variation and trends
6. Alert relevant systems and stakeholders (role based)
7. Interpret information (exceptions, resolutions, cases) based on strategic
objectives, performance measures and rules of engagement
8. Negotiate (adapt) and record commitments based on roles,
empowerment, motivation, accountability, responsibility
9. Disseminate information to all relevant systems and stakeholders
10. Track and report commitments and results against KPI Set(s) and strategic
objectives
14

15. Creating Process Driven Applications with BPM
 How BPM suites became recognized as
business problem solvers
 Anatomy of a business process application
 The critical componentry of BPM suites
 How to analyze, change and manage
business processes and create business
process applications
 Conclusion: Creating Process Driven
Applications with BPM
15

16. Components of a BPM suite
Process design, Application development
modeling and simulation User experience
Connect, integrate
User access
Task management Test, execute, monitor
16

17. Components of a BPM suite
1. A modeling environment for process design, collaboration, analysis and
simulation
2. Business rules management to define KPIs, ‘controls’ and ‘bounds’
necessary to assure compliance
3. A process engine to orchestrate structured processes and unstructured
cases
4. Integration technology for resource connectivity (internal and external)
5. Data and content management for capture, quality management and
context and role-based sensitive controls
6. Stakeholder user experience to enable people to execute processes
7. Operational intelligence for real-time monitoring of process
execution, KPI management and rules compliance
8. Business analytics for decision support and decision automation
(predictive analytics)
9. An administration console for system monitoring and control
10. A repository for models, data, content, metadata, registry and reuse
17

18. How is a BPM suite used?
Strategic Level
Objectives and Organization
Traditional
transaction-oriented
application architecture
Source: Adapted from the Value Stream Group
18

19. How is a BPM suite used?
BPM suite
process-oriented
application capability
Traditional
transaction-oriented
application architecture
Source: Adapted from the Value Stream Group
19

20. How is a BPM suite used?
Enterprise
architecture Strategic Level
Objectives and Organization
management
BPM suite
process-oriented
application capability
The link between
strategy and execution
Traditional
transaction-oriented
application architecture
Source: Adapted from the Value Stream Group
20

21. Creating Process Driven Applications with BPM
 How BPM suites became recognized as
business problem solvers
 Anatomy of a business process application
 The critical componentry of BPM suites
 How to analyze, change and manage
business processes and create business
process applications
 Conclusion: Creating Process Driven
Applications with BPM
21

22. Motivations and approaches for BPM
A Problem
• Strategy and KPI Set
• Process team
• Process selection
• Methodology
• Modeling and simulation
• Implementation and control
BPM
Business Process
Portfolio Management
A Strategic Initiative Continuous Transformation
• Strategy and KPI Set(s) • Strategy and KPI Sets
• Program and BPM team(s) • Center of Excellence (BPM Teams)
• Process set • Process portfolio and audit
• Methodology(ies?), PMO? • Multiple methodologies, PMO
• Redesigns and new designs • Multiple tools
• Modeling and simulations • Governance
• Execute, manage and control • Continuous improvement
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23. Example of a cross-functional process model
Source: ABPMP Chicago Speaker Series - The Process Enterprise: How Process Transformation Changes the Business.
Tom Coleman Chief Information and Process Officer for Sloan Valve Company, 10/2009
23

24. How to assess process management maturity
The Process Audit
• Enterprise capabilities
• Leadership, Culture, Expertise, Governance
• Process enablers
• Design, Performers, Owner, Infrastructure, Metrics
Source: Software Engineering Institute, Carnegie Mellon
Source: The Process Audit, Michael Hammer, Harvard Business School Publishing
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25. How to inventory processes and evaluate quality
 Use a classification model to ‘take stock’ of processes
 Create evaluation criteria
• Used by management teams for qualitative evaluation, example criteria…
CRITERIA DESCRIPTION (Qualitative Assessment)
1. Value Core, Secondary, Low, Outsourced, Not Applicable
2. Asset type Operating, Support, Management, Exception Control, Resolution Control
3. Use Routine, Periodic, Occasional, Not Used, Unknown, New
4. Complexity Simple, Low, Moderate, Complex, Highly Complex
5. Discipline Formal, Informal, Rely on 3rd Party
6. Automation Manual, Semi-automated, Fully-automated, Rely on 3rd Party
7. Documentation Detailed, Satisfactory, Unsatisfactory, Undocumented, Rely on 3rd Party
8. Training Sufficient, Insufficient, Not Available, Not Necessary, Rely on 3rd Party
9. Effectiveness Very Effective, Effective, Adequate, Not Very Effective, Not At All Effective
10. Efficiency Very Efficient, Efficient, Adequate, Not Very Efficient, Not At All Efficient
Action Improve, Consolidate, Eliminate, Benchmark, Re-evaluate, Design, Outsource, Insource, None
Timing Immediately, Near-Term, Long-Term, Unspecified
Source: BPMethods
25

26. How to document and model processes
 Identify process components (Process Components Model)
3. What governs execution and value creation?
1. What is needed Process Design 4. What value
to begin? “How” is created?
2. What is needed to execute and create value?
26

27. How to measure performance
 Select KPI Set(s) – Balanced Scorecard meets Six Sigma
Source: Strategy and Business Process Management, Taylor & Francis 2012
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28. How to improve processes
 Create project: select artifact set, elicitation techniques, analytic
techniques (e.g. Lean, Six Sigma, etc.), requirements management
tools
Source: Corporate Education Group
 Skills include project management and business analysis
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29. Can your in-place systems support process change?
 Perform an IT readiness assessment
• Determine the effort, time, resources and costs required to adapt in-place IT
systems to support process change – prior to engagement
• Understand capabilities and limitations of IT systems
• Capture baseline data for ROI analysis
• Test feasibility and accurately determine financial returns
• Helps justify IT investment if needed
 For example, what effort, time, resources and costs are required to...
29

30. Can your in-place systems support process change?
 Perform an IT readiness assessment
• Determine the effort, time, resources and costs required to adapt in-place IT
systems to support process change – prior to engagement
• Understand capabilities and limitations of IT systems
• Capture baseline data for ROI analysis
• Test feasibility and accurately determines financial returns
• Helps justify IT investment if needed
 For example, what effort, time, resources and costs are required to...
• Install and configure the software • Design and route workflow
• Populate it with data • Generate or limit access to data, reports
• Assure data accuracy and reliability • Establish and track key performance indicators
• Integrate with other systems or • Define threshold levels of performance
applications, internal and external • Configure messaging and alerts
• Allow or restrict access by other applications • Structure reports
or users based on role • Perform ad-hoc analysis
• Securely extend access via • Reconfigure all of the above when change occurs
loud, wireless, mobile, other
If in-place systems and resources cost too much then it’s time to consider a BPM suite
30

31. Creating Process Driven Applications with BPM
 How BPM suites became recognized as
business problem solvers
 Anatomy of a business process application
 The critical componentry of BPM suites
 How to analyze, change and manage
business processes and create business
process applications
 Conclusion: Creating Process Driven
Applications with BPM
31

32. Conclusion: Creating Process Driven Applications with BPM
 Applications are changing from task-driven to
process-driven
 BPM is a managerial discipline focused on
execution, performance and outcomes
 BPM suites have become recognized as problem
solving technology and are evolving to become
next generation AppDev and DevOp platforms
 Transaction-oriented software applications will
yield to business process applications
 Processes should be managed as strategic assets or
they will become liabilities
 Consider a formal audit and inventory approach to
continuous process management
 Emphasize KPI sets as a performance management
system for process execution
 Assess readiness of in-place IT to establish baseline
justification for change
 Initiate BPM as a strategic business and IT initiative
32

33. Questions? Comments?
Carl Lehmann
Research Manager
451 Research
Boston, Massachusetts
carl.lehmann@451research.com
Desk: +1.781.319.0599