Patrick from ACME is advocating for a structured approach to business process management (BPM) implementation. He outlines a framework that includes establishing organizational, process, and technology foundations first before elaborating on current processes, developing improvements, deploying solutions, and instituting continuous monitoring and improvement. Patrick's message is that BPM requires close collaboration between business and IT and following a rigorous methodology to minimize risks and ensure success. He is seeking help to further refine the BPM implementation framework.
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Business Process Management: Implementing Continuous Improvement in Your Organization
1. Business Process Management:
Implementing Continuous Improvement in
Your Organization
Henry Chandra
Solution Architect
VP Relationship, IASA Indonesia
http://www.linkedin.com/in/henrychandra
+62 856 138 58 98, henry@iasahome.org
Hotel Menara Peninsula, Jakarta
14 November 2008
2. Why am I standing here?
Meet Patrick of ACME
Patrick’s Structured Approach
What Patrick’s trying to tell you
From here…
3. Why am I standing here?
Meet Patrick of ACME
Patrick’s Structured Approach
What Patrick’s trying to tell you
From here…
11. In ACME…
Business People Think IT People are from Mars
IT People need to be more than a ‘Librarian’
12. In ACME…
Business People Think IT People are from Mars
IT People need to be more than a ‘Librarian’
IT needs to convert from Cost Center into providing
Information Leadership for Business
Information
Cost Center
Leadership
13. Patrick’s Mission:
Increased
Competition
Faster Time-
Budget Cuts
to-Market
ACME
Deliver IT without fuss, get involved in
business improvement and give
business good leadership
(Terry White, What Business Really Wants from IT)
14. Patrick is looking at
Business Process Management
The achievement of an organization’s objectives through the
improvement, management and control of essential
business processes.
(Jeston and Nelis)
BUSINESS PROCESS MANAGEMENT IS NOT AN IT “TOY”
IT HAS TO CLOSE THE DISTANCE BETWEEN IT AND BUSINESS
IT HAS TO INVOLVE BUSINESS AND IT TOGETHER
BPM IS ABOUT
MAKING
BPM IS NOT ABOUT BPM IS NOT ABOUT BUSINESS
TECHNOLOGY DIAGRAMS RUNS FASTER AND
MORE EFFICIENT
15. BPM: Through the years
No
BPM
Monolithic Enterprise Application
UI UI UI UI
Enterprise Application
(internal and proprietary protocols,
program and logic in monolithic
programs)
16. BPM: Through the years
No BPM:
BPM 1990
Workflow in the Brain
UI UI UI UI
Enterprise Application
(program and logic in
monolithic programs)
17. BPM: Through the years
No BPM: BPM:
BPM 1990 1993
Task Management
UI UI UI UI
Enterprise Application
(program and logic in
monolithic programs)
18. BPM: Through the years
No BPM: BPM: BPM:
BPM 1990 1993 1996
Workflow Routing
UI UI UI UI
Enterprise Application
(program and logic in
monolithic programs)
19. BPM: Through the years
No BPM: BPM: BPM: BPM:
BPM 1990 1993 1996 2002
Services Integration
UI UI
Svc Svc Svc
Enterprise
Application
Logic and SOA
20. BPM: Through the years
No BPM: BPM: BPM: BPM: BPM:
BPM 1990 1993 1996 2002 2007
Composite Services
UI UI
ESB
Svc Svc Svc
Enterprise
Application
Logic and SOA
21. Patrick understands
The first rule of any technology is that automation applied to an
efficient operation will magnify the efficiency.
The second is that automation applied to an inefficient operation
will magnify the inefficiency.
(Bill Gates, Microsoft Corporation)
Black Box Syndrome
Looking at the edges
Syndrome
22. He knows what’s critical and
what he needs to do
Regatta Speed ↔ Effectiveness
Being the fastest ↔ make processes more effective and efficient
Metaphor
Efficiency
Use energy + enthusiasm to realized desired result
↕
Everyone is contributing towards realizing desired result
Balance
Make sure boat doesn’t lean sideways or tip over
↕
Make sure all implementation aspects are considered
Cohesion
Team rows as one, same rhythm and technique
↕
All implementation elements are in alignment
Process
1st Oar, dictates speed to other rowers
↕
Business leads implementation, technology follows
Management
Steers the boat in a straight line to finish, do not go off course
↕
Sets and maintains trajectory to meet desired results
24. Why am I standing here?
Meet Patrick of ACME
Patrick’s Structured Approach
What Patrick’s trying to tell you
From here…
25. Patrick’s Structured Approach
BPM Implementation Framework
Organization Foundation
Process Foundation
Technology Foundation
BPM Foundation
Elaboration
Improvement
People and Technology Development
Deployment
Monitor and Benefit Realization
Continuous Improvement
26. The Foundations
What does the organization strive to ‘be’?
What is the organization in business to ‘do’?
How are we going to achieve the goals and objectives?
etc..
How do the processes in your organization support it’s vision and
mission?
How well organized are they?
How well do we understand the processes?
etc..
Have we identified the required technology to support our BPM?
How proficient are we with them?
What do we need to do to prepare the technology skills and knowledge?
etc..
27. The Foundations
What does the organization strive to ‘be’?
What is the organization in business to ‘do’?
UNDERSTANDING YOUR ORGANIZATION,
How are we going to achieveVISION, and objectives?
IT’S the goals MISSION, STRUCTURE, ETC.
etc..
How do the processes in your organization support it’s vision and
mission?
How well organized are they?
How well do we understand the processes?
etc..
Have we identified the required technology to support our BPM?
How proficient are we with them?
What do we need to do to prepare the technology skills and knowledge?
etc..
28. The Foundations
What does the organization strive to ‘be’?
What is the organization in business to ‘do’?
UNDERSTANDING YOUR ORGANIZATION,
How are we going to achieveVISION, and objectives?
IT’S the goals MISSION, STRUCTURE, ETC.
etc..
How do the processes in your organization support it’s vision and
mission?
How well organized are they?
UNDERSTANDING THE PROCESSES INSIDE
YOUR ORGANIZATION, END – TO – END
How well do we understand the processes?
etc..
Have we identified the required technology to support our BPM?
How proficient are we with them?
What do we need to do to prepare the technology skills and knowledge?
etc..
29. The Foundations
What does the organization strive to ‘be’?
What is the organization in business to ‘do’?
UNDERSTANDING YOUR ORGANIZATION,
How are we going to achieveVISION, and objectives?
IT’S the goals MISSION, STRUCTURE, ETC.
etc..
How do the processes in your organization support it’s vision and
mission?
How well organized are they?
UNDERSTANDING THE PROCESSES INSIDE
YOUR ORGANIZATION, END – TO – END
How well do we understand the processes?
etc..
Have we identified the required technology to support our BPM?
How proficient are we with them?
UNDERSTANDING THE TECHNOLOGY TO SUPPORT
YOUR BPM INITIATIVE
What do we need to do to prepare the technology skills and knowledge?
etc..
30. Ready to Launch –
BPM Foundation
Launch Pad for all BPM projects in the
organization
Project Launch Pad
Business
Project Team Project Plan
Case
31. Executing BPM Project
Understanding and
Monitor and Elaboration of Current
Solutions and Process Benefit Process
Improvements are
brought to life Realization
Realizing
Deployment benefits Elaboration
and
getting
lessons
Prepare and develop learned Make the process(es)
people and within the scope of the
technology solution project as efficient and
effective as possible.
People and
Technology Improvement
Development
32. Elaboration – The ‘What is’ Phase
Workshops
Metrics Analysis and Gathering
Root Cause Analysis
People Capability Matrix
Always ask when is the right time to
stop, if it is, then stop!
33. Improvement – The ‘What if’ Phase
Analysis Creative
Improvement Workshops
Simulations
People Capability Matrix and Capacity
Planning
Business Case
Get the process ‘right’ before
automating it
34. Development – People and Technology
People Strategy Presentation
Orchestration
Activity Definition and
Role Redesign
Integration
RASCI Model
And lotsa testing…
…if you put a good performance against a bad system, the
system will win almost every time.
(Keen, 1997: 65)
35. Development – People and Technology
People Strategy Presentation
Orchestration
Activity Definition and
Role Redesign
Integration
RASCI Model
And lotsa testing…
…if you put a good performance against a bad system, the
system will win almost every time.
(Keen, 1997: 65)
36. Deployment – Live!
Deployment Strategy
Marketing Strategy
Training
Roll Out
37. Monitor and Benefit Realization –
A look back
Project Results and
Performance Measurements
Lessons Learned and
Corrective Actions
Feedback Loop for Future
Implementations
38. Business as Usual
What happens after project has gone life and handed over to
Business??
Project
Visibility Line
Business As Usual
39. Business as Usual
What happens after project has gone life and handed over to
Business??
Project Project
Management
Visibility Line
Business As Usual People Change
Management
40. Business as Usual
What happens after project has gone life and handed over to
Business??
Project Project
Management
Visibility Line Leadership
Business As Usual People Change
Management
41. Business as Usual
What happens after project has gone life and handed over to
Business??
Project Project
Management
Visibility Line Leadership
We had improvement programs. But the real difference came when we
decided it was no longer a program, it was a business strategy.
Business As Usual People Change
(Stephen Schwartz, IBM)
Management
42. Continuous Improvement
Continuous
Improvement
Process The considerable Processes must
improvements investment made continuously be
without in any project improved and
sustainability is must be redesigned
not worth the maintained and
effort enhanced over
time
Process Governance
Continuous Improvement Monitoring
Maintain Process Models
44. Technology Perspective of Things:
BPM and SOA
Business Process Management Service Oriented Architecture
Business and Management Process Architectural Philosophy for Standard-
Improvement Practice based Services Design
BPM without SOA SOA without BPM
would require allows design and
custom coding for building of
system integration services
45. Technology Perspective of Things:
BPM and SOA
Business Process Management Service Oriented Architecture
Business and Management Process Architectural Philosophy for Standard-
Improvement Practice based Services Design
SOA +BPM unifies and orchestrates
BPM without SOA SOA without BPM
business processes with underlying
would require allows design and
standard-based service infrastructure
custom coding for building of
system integration bring services process
It is a concert that will agility and
efficiency to business audience
47. Why am I standing here?
Meet Patrick of ACME
Patrick’s Structured Approach
What Patrick’s trying to tell you
From here…
48. He can do it, you should too!
Structured Approach to BPM Implementation
49. He can do it, you should too!
Structured Approach to BPM Implementation
Business As Usual
Execution Phases
Understand
Improve
Develop
Monitor
BPM Foundation
Foundation Phases
50. What Patrick is trying to tell you…
Business Process Management brings IT and Business
together
• It is not an IT toy
• It has to be lead by Business and supported by IT
A Structured Approach to BPM Implementation is required to
minimize risks and help to ensure success
• Process improvement is paramount prior to process automation
• All implementation aspects of BPM needs to work together achieving
common goal
• BPM is supported by pillars of People, Process and Technology
• BPM Implementation Structured Approach includes solid foundations, proper
execution methodology and continuous improvement phase to ensure
process improvement is sustainable
BPM and SOA are aligned to bring seamless integrated
business process platform to support agility and process
efficiency
51. Why am I standing here?
Meet Patrick of ACME
Patrick’s Structured Approach
What Patrick’s trying to tell you
From here…
52. Help Patrick refine the framework
Business Process Management Implementation
Framework is a work-in-progress that still needs further
fine-tune and adjustments
Call to action to all IASA members or IT practitioners in
general to work together in formalizing and crystallizing
an implementation framework for BPM
Contact IASA Indonesia to contribute
http://indonesia.iasahome.org
henry@iasahome.org