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Cracking the Cultural Competence Code.pptx
Cracking the Cultural Competence Code.pptx
Business Process Design 2008
1.
Business Process
Analysis and Design Utilizing Toolsets Business Process Modeling Utilizing Toolsets Michael Paskevicius © 2008
2.
Agenda
Introduction to process analysis Introduction to various toolsets Toolsets for process modeling Some examples Business Process Modeling Utilizing Toolsets Michael Paskevicius © 2008
3.
What are organizations
for? Principles for an Organization 1. The mission of an organization is to create value for its stakeholders 2. It's a company's processes that create value for its stakeholders 3. Business success comes from superior process performance 4. Superior process performance is achieved by having a superior process design, the right people to perform it, and the right environment for them to work in Source: Michael Hammer, Beyond Re-engineering:- How the Process-Centred Organization is Changing Our Work and Our Lives Business Process Modeling Utilizing Toolsets Michael Paskevicius © 2008
4.
The Traditional Organization
Typical Classic / Hierarchical / Typical Functional Organization Attributes CEO Service / Customer Facing / Back Office / Front Office / Support Operations Departments Departments Finance HR Marketing Sales Department Department IS / IT Manufacturing Distribution Department Purchasing Business Process Modeling Utilizing Toolsets Michael Paskevicius © 2008
5.
The Process Focused
Organization Typical Network / Horizontal / Typical Process Oriented Organization Attributes Business Process Modeling Utilizing Toolsets Michael Paskevicius © 2008
6.
What is a
Process? An organized group of related tasks that together reliably create stakeholder value Or One or more tasks that add value by transforming a set of inputs into a specified set of outputs (goods or services) for a customer by a combination of people, methods, and tools Or How Things Gets Done! Business Process Modeling Utilizing Toolsets Michael Paskevicius © 2008
7.
Tasks vs. Processes A
task is a business activity performed by one or several employees regularly and repetitively In a task-oriented organization, employees may be very efficient in what they do, but the efficiency may not translate into result. A process consists of a group of related tasks which together creates a result or value for the customer In a process-oriented organization, unnecessary tasks are eliminated, and the remaining tasks are re-grouped or streamlined to optimize business objectives, often through the use of information technology. Business Process Modeling Utilizing Toolsets Michael Paskevicius © 2008
8.
Process Elements Effort
Expended by people, machines, etc. Tasks / Work Transforms “inputs” into “outputs” incurring a “cost” Process Structure (Manual) Organizes tasks to reliably deliver value to stakeholders Stakeholders Receive value Whether they are consciously defined / documented or not processes exist in all organizations Business Process Modeling Utilizing Toolsets Michael Paskevicius © 2008
9.
Core Processes
Strategic weapons Core processes are “owned” – accountability Owner has responsibility & authority Redefines organizational structure Failure of a core process can critically affect operation Stakeholders: people affected by outcome of process Business Process Modeling Utilizing Toolsets Michael Paskevicius © 2008
10.
Value Chain Business Process
Modeling Utilizing Toolsets Michael Paskevicius © 2008
11.
What is Process
Analysis and Design? Removal of all work / tasks that don’t contribute to the value proposition Analysis – understand / measure the work done today and whether it adds value Design – describe and organize a set of tasks that all contribute directly to the generation of value Why? Maximizes an organization’s ability to satisfy the needs of its stakeholders (customers) May lead to strategic advantage Implies changing what and how work is done (this requires leadership) Business Process Modeling Utilizing Toolsets Michael Paskevicius © 2008
12.
What Benefits come
from Utilizing a Business Process Strategy? Continuous successful strategic management Continuous change management Risk Management Business Process Modeling Utilizing Toolsets Michael Paskevicius © 2008
13.
Measures Process
Measures of resources consumed Output Ability to deliver product/service according to specification Outcome How well the product/service meets customer expectation What cannot be measured cannot be evaluated. Business Process Modeling Utilizing Toolsets Michael Paskevicius © 2008
14.
Image Credit: Brian
Van Kessel 2005 Business Process Modeling Utilizing Toolsets Michael Paskevicius © 2008
15.
Efficiency vs. Effectiveness Efficiency:
Doing things right Increases productivity Effectiveness: Doing the right things Creates value Business Process Modeling Utilizing Toolsets Michael Paskevicius © 2008
16.
Measures
Peter Drucker’s Effectiveness/Efficiency Matrix High SURVIVE THRIVE Effectiveness DIE SLOWLY DIE QUICKLY Low Low High Efficiency Business Process Modeling Utilizing Toolsets Michael Paskevicius © 2008
17.
Business Process Change
Model Information and Technology Strategy •Data & Information •Information Technology Why •Decision, Simulation & Modeling Tools Change? What to Change? •Environmental Products, Services & Factors Management Business Processes People Performance •Customer & •Style •Inter-Organizational •Skills •Cost Supplier Power •Systems •Cross-Functional •Behavior •Quality •Economic Conditions •Measures •Intra-Functional •Culture •Customer Satisfaction •Cultural Factors •Risk Propensity •Values •Flexibility/Innovation •Industry •Shareholder Value Competitiveness •Political Factors Structure •Technological •Formal/ Informal Organization Innovation •Teams/Work Groups •Coordination/Control Strategy Adapted from Kettinger & •Jobs Grover 1995 Business Process Modeling Utilizing Toolsets Michael Paskevicius © 2008
18.
Process Maps
A drawing that shows a sequence of steps, events and activities from beginning to the end of a process A “Road map” for how to get from “here” to “there” A good tool for identifying improvement opportunities Use a process Confused Back on track! map! Business Process Modeling Utilizing Toolsets Michael Paskevicius © 2008
19.
Why Use Process
Maps? Help a team come to a common understanding of a process Educate a team on the steps in the process Find unnecessary or redundant steps in the current process Find missing steps in the process Find efficiencies in the process flow Look in more detail at the current methods being used in each part of the process Identify the supplier and customers of the process (both internal and external) A powerful communication tool Business Process Modeling Utilizing Toolsets Michael Paskevicius © 2008
20.
Process Interaction Example Business
Process Modeling Utilizing Toolsets Michael Paskevicius © 2008
21.
Lets try an
example A salesperson calls in with a proposed deal The call is taken by one of 6 people Whoever takes the call logs it and document it on paper A clerk then carries the paper documentation to a second person who checks the customer’s credit worthiness The result of the credit check together with the original documentation is given to a loan officer who would then modify the standard agreement All information is then passes to another person who determines the interest rate Another person prepares a quote letter The quote letter is then sent to the salesperson Each step involves a different computer system Business Process Modeling Utilizing Toolsets Michael Paskevicius © 2008
22.
Software to the
Rescue Current prediction on world-wide expenditure on business process management software 2001 2.1 billion US$ 2002 2.3 billion US$ 2003 3.0 billion US$ 2004 4.5 billion US$ 2005 6.2 billion US$ (source: Aberdeen Group) Business Process Modeling Utilizing Toolsets Michael Paskevicius © 2008
23.
Process Mapping Key
Players Business Process Modeling Utilizing Toolsets Michael Paskevicius © 2008
24.
Toolsets Available for
Process Mapping A.R.I.S. Architecture of Integrated Information Systems Framework or concept for describing companies and business application systems Microsoft Visio www.gliffy.com Pen and Paper/Whiteboard Business Process Modeling Utilizing Toolsets Michael Paskevicius © 2008
25.
House of Embedded Engineering
Approach 1. Business Process Design Describes the business processes with models and visual guides Lays the groundwork for a qualitative approach to process management Presents opportunities to identify key performance indicators 2. Business Process Management Provides procedures for time and capacity controlling as well as cost analysis 3. Process Control Implement new and more efficient procedures 4. Process Application Implementation of the newly refined business processes Business Process Modeling Utilizing Toolsets Michael Paskevicius © 2008
26.
Process Engineering/Reengineering with the
Toolsets The most frequently used model type of the process view is the Extended Event-Driven Process Chain (eEPC) This model allows for degrees of complexity As simple and lean as process steps only As complex as to include data, function, organization views Generally accepted as they are simplistic and use easy-to-understand notation Business Process Modeling Utilizing Toolsets Michael Paskevicius © 2008
27.
Extended Event-driven Process Chain
(eEPC) Business Process Modeling Utilizing Toolsets Michael Paskevicius © 2008
28.
Basic Elements of
the eEPC •A function is a technical task, a procedure, and/ or an activity performed on an (information) object to support one or more company goals. Function •A function uses time and/or has a cost associated with it. •An event represents a business relevant occurrence which either controls or influences the continuation Event of a business process. •Events act as triggers for activities, but are also based on preceding functions and therefore describe an event Business Process Modeling Utilizing Toolsets Michael Paskevicius © 2008
29.
Business Process Components Business
Process Modeling Utilizing Toolsets Michael Paskevicius © 2008
30.
Business Process Components Business
Process Modeling Utilizing Toolsets Michael Paskevicius © 2008
31.
Business Process Components Business
Process Modeling Utilizing Toolsets Michael Paskevicius © 2008
32.
Business Process Components Business
Process Modeling Utilizing Toolsets Michael Paskevicius © 2008
33.
Business Process Components Business
Process Modeling Utilizing Toolsets Michael Paskevicius © 2008
34.
Toolset Views Business Process
Modeling Utilizing Toolsets Michael Paskevicius © 2008
35.
Strategic Perspective: Value
Chain Business Process Modeling Utilizing Toolsets Michael Paskevicius © 2008
36.
Organizational Perspective: Organigram Business Process
Modeling Utilizing Toolsets Michael Paskevicius © 2008
37.
Functional Perspective: Function Tree Business
Process Modeling Utilizing Toolsets Michael Paskevicius © 2008
38.
Data Perspective: Entity Relationship
Diagram Business Process Modeling Utilizing Toolsets Michael Paskevicius © 2008
39.
Database Structure The Database
Structure of ARIS All information is stored in a database The database helps to avoid redundancy in the models design Business Process Modeling Utilizing Toolsets Michael Paskevicius © 2008
40.
Occurrence Copy Reuse
of existing objects •Helps to identify interdependencies between processes •Redundancy free data storage •Allows for easy update of an objects attributes Business Process Modeling Utilizing Toolsets Michael Paskevicius © 2008
41.
Definition Copy
When you copy the object a separate entry is created in the database The new object has no reference to the original object Business Process Modeling Utilizing Toolsets Michael Paskevicius © 2008
42.
Variant Copy
When you create a variant, a separate entry in created in the database which references its original definition Allows the user to compare and contrast the new object against the existing object Business Process Modeling Utilizing Toolsets Michael Paskevicius © 2008
43.
Logical Link Operators
Significance when Significance when Name Symbol paths are separating paths are converging The following process Only one of the flow will be initiated from Exclusive OR possible process paths only one of the possible must be followed process paths The following process At least one of the flow will initiated by at Open OR possible process paths least one of the must be followed possible process paths All incoming process paths trigger the following process flow. If one of the paths has All outgoing process not been fully AND paths must be followed completed, then the process pauses at this point until all incoming process paths have been completed. Business Process Modeling Utilizing Toolsets Michael Paskevicius © 2008
44.
Logical Link Operators
AND A+B Open OR A, B, or A+B XOR A or B Business Process Modeling Utilizing Toolsets Michael Paskevicius © 2008
45.
Logical Link Operators
Loan application received Verify loan application details Loan application Loan application approved rejected Business Process Modeling Utilizing Toolsets Michael Paskevicius © 2008
46.
Event and Function
Triggers Business Process Modeling Utilizing Toolsets Michael Paskevicius © 2008
47.
Summary: eEPC Modeling
Rules An eEpc begins and ends with an event(s) (or with process interface(s)). The sequential order Event-Function-Event-Function must be followed and can only be interrupted by logical link operators Trivial events are to be omitted (events in a sequence in the middle of the process flow) Logical link operators can only be used for multiple process paths Logical link operators have either one incoming connection and several outgoing connections, or several incoming connections and one outgoing connection. No OR operator or exclusive OR (XOR) operator may follow an individual event Any number of paths is possible for branches Business Process Modeling Utilizing Toolsets Michael Paskevicius © 2008
48.
Model Assignments
An assignment is a model that describes an object in more detail Various degrees of modeling – top level, lowest level Business Process Modeling Utilizing Toolsets Michael Paskevicius © 2008
49.
Model View of
Assignments HR / Support Research and Development Procurement Production Sales Accounting Production Sales Business Process Modeling Utilizing Toolsets Michael Paskevicius © 2008
50.
Linked Procurement Model
Identify need for raw materials Verify purchase order against delivery Create purchase requisition Send requisition for approval Order fullfilled Order flawed Process payment Contact supplier to supplier Requisition Requisition approved rejected Procurement process complete Create purchase order for supplier Goods delivered Business Process Modeling Utilizing Toolsets Michael Paskevicius © 2008
51.
Link to Physical
Sales eEPC Order follow-up Feedback received Order confirmation created Customer order entered Order confirmation Production planning Production plan created Order Rejected Business Process Modeling Utilizing Toolsets Michael Paskevicius © 2008
52.
Benefits of Process
Mapping Help a team come to a common understanding of a process Find unnecessary, missing or inefficient steps in a current process Look in more detail at the current methods being used in each part of the process Identify the supplier and customers of the process (both internal and external) As a powerful communication tool Business Process Modeling Utilizing Toolsets Michael Paskevicius © 2008
53.
Exercise
When an article inquiry is received the process begins. After the inquiry has been recorded, the inquiry data is transferred to the offer to be issued by the order handling secretary using MS Word. She will use the customer inquiry, customer data and customer conditions in issuing the offer. The order handling employee will check the availability of the desired articles. This is done in the SAP R/3 System using the article data and the customer inquiry. If delivery is not possible, the order handling employee must agree on an alternative delivery date with the customer. If the delivery is possible then the delivery date can be defined. Only then can the articles be reserved in the SAP R/3 System. Of course, a customer rejection can also result when an alternative shipping date is offered if the customer is not willing to accept another delivery date. When the products are reserved, the offer is generated by the order handling secretary in MS Word. The department apprentice monitors the offer in Applix. While the offer is being monitored it may still be cancelled in process by the customer. When the customer order is received, the process customer order process is started. If may also happen that the customer offer is rejected. Business Process Modeling Utilizing Toolsets Michael Paskevicius © 2008
54.
Identify the Events
& Events and Functions When an article inquiry is received the process begins. After the inquiry has been recorded, the inquiry data is transferred to the offer to be issued by the order handling secretary using MS Word. She will use the customer inquiry, customer data and customer conditions in issuing the offer. The order handling employee will check the availability of the desired articles. This is done in the SAP R/3 System using the article data and the customer inquiry. If delivery is not possible, the order handling employee must agree on an alternative delivery date with the customer. If the delivery is possible then the delivery date can be defined. Only then can the articles be reserved in the SAP R/3 System. Of course, a customer rejection can also result when an alternative shipping date is offered if the customer is not willing to accept another delivery date. When the products are reserved, the offer is generated by the order handling secretary in MS Word. The department apprentice monitors the offer in Applix. While the offer is being monitored it may still be cancelled in process by the customer. When the customer order is received, the process customer order process is started. If may also happen that the customer offer is rejected. Business Process Modeling Utilizing Toolsets Michael Paskevicius © 2008
55.
Events and Functions
When an article inquiry is received the process begins. After the inquiry has been recorded, the inquiry data is transferred to the offer to be issued by the order handling secretary using MS Word. She will use the customer inquiry, customer data and customer conditions in issuing the offer. The order handling employee will check the availability of the desired articles. This is done in the SAP R/3 System using the article data and the customer inquiry. If delivery is not possible, the order handling employee must agree on an alternative delivery date with the customer. If the delivery is possible then the delivery date can be defined. Only then can the articles be reserved in the SAP R/3 System. Of course, a customer rejection can also result when an alternative shipping date is offered if the customer is not willing to accept another delivery date. When the products are reserved, the offer is generated by the order handling secretary in MS Word. The department apprentice monitors the offer in Applix. While the offer is being monitored it may still be cancelled in process by the customer. When the customer order is received, the process customer order process is started. If may also happen that the customer offer is rejected. Business Process Modeling Utilizing Toolsets Michael Paskevicius © 2008
56.
Article inquiry
Enter inquiry data into offer Reserve article Check availability of article Article reserved Delivery NOT Delivery possible Generate offer possible Agree on alternative Offer created delivery date M onitor offer Customer offer Delivery date rejected defined Customer order Customer offer received cancelled Business Process Modeling Utilizing Toolsets Michael Paskevicius © 2008
57.
Identify the Applications
When an article inquiry is received the process begins. After the inquiry has been recorded, the inquiry data is transferred to the offer to be issued by the order handling secretary using MS Word. She will use the customer inquiry, customer data and customer conditions in issuing the offer. The order handling employee will check the availability of the desired articles. This is done in the SAP R/3 System using the article data and the customer inquiry. If delivery is not possible, the order handling employee must agree on an alternative delivery date with the customer. If the delivery is possible then the delivery date can be defined. Only then can the articles be reserved in the SAP R/3 System. Of course, a customer rejection can also result when an alternative shipping date is offered if the customer is not willing to accept another delivery date. When the products are reserved, the offer is generated by the order handling secretary in MS Word. The department apprentice monitors the offer in Applix. While the offer is being monitored it may still be cancelled in process by the customer. When the customer order is received, the process customer order process is started. If may also happen that the customer offer is rejected. Business Process Modeling Utilizing Toolsets Michael Paskevicius © 2008
58.
Applications
When an article inquiry is received the process begins. After the inquiry has been recorded, the inquiry data is transferred to the offer to be issued by the order handling secretary using MS Word. She will use the customer inquiry, customer data and customer conditions in issuing the offer. The order handling employee will check the availability of the desired articles. This is done in the SAP R/3 System using the article data and the customer inquiry. If delivery is not possible, the order handling employee must agree on an alternative delivery date with the customer. If the delivery is possible then the delivery date can be defined. Only then can the articles be reserved in the SAP R/3 System. Of course, a customer rejection can also result when an alternative shipping date is offered if the customer is not willing to accept another delivery date. When the products are reserved, the offer is generated by the order handling secretary in MS Word. The department apprentice monitors the offer in Applix. While the offer is being monitored it may still be cancelled in process by the customer. When the customer order is received, the process customer order process is started. If may also happen that the customer offer is rejected. Business Process Modeling Utilizing Toolsets Michael Paskevicius © 2008
59.
Article inquiry
Reserve article Enter inquiry data into offer SAP R/3 MS Word Article reserved Check availability of article SAP R/3 Generate offer MS Word Delivery NOT Delivery possible Offer created possible Agree on alternative Applix Monitor offer delivery date Customer offer Delivery date Customer offer Customer order rejected defined cancelled received Business Process Modeling Utilizing Toolsets Michael Paskevicius © 2008
60.
Identify the Organizational
Elements When an article inquiry is received the process begins. After the inquiry has been recorded, the inquiry data is transferred to the offer to be issued by the order handling secretary using MS Word. They will use the customer inquiry, customer data and customer conditions in issuing the offer. The order handling employee will check the availability of the desired articles. This is done in the SAP R/3 System using the article data and the customer inquiry. If delivery is not possible, the order handling employee must agree on an alternative delivery date with the customer. If the delivery is possible then the delivery date can be defined. Only then can the articles be reserved in the SAP R/3 System. Of course, a customer rejection can also result when an alternative shipping date is offered if the customer is not willing to accept another delivery date. When the products are reserved, the offer is generated by the order handling secretary in MS Word. The department apprentice monitors the offer in Applix. While the offer is being monitored it may still be cancelled in process by the customer. When the customer order is received, the process customer order process is started. If may also happen that the customer offer is rejected. Business Process Modeling Utilizing Toolsets Michael Paskevicius © 2008
61.
Organizational Elements
When an article inquiry is received the process begins. After the inquiry has been recorded, the inquiry data is transferred to the offer to be issued by the order handling secretary using MS Word. They will use the customer inquiry, customer data and customer conditions in issuing the offer. The order handling employee will check the availability of the desired articles. This is done in the SAP R/3 System using the article data and the customer inquiry. If delivery is not possible, the order handling employee must agree on an alternative delivery date with the customer. If the delivery is possible then the delivery date can be defined. Only then can the articles be reserved in the SAP R/3 System. Of course, a customer rejection can also result when an alternative shipping date is offered if the customer is not willing to accept another delivery date. When the products are reserved, the offer is generated by the order handling secretary in MS Word. The department apprentice monitors the offer in Applix. While the offer is being monitored it may still be cancelled in process by the customer. When the customer order is received, the process customer order process is started. If may also happen that the customer offer is rejected. Business Process Modeling Utilizing Toolsets Michael Paskevicius © 2008
62.
Article inquiry
Employee Reserve article Enter inquiry Order handling order handling data into offer secretary SAP R/3 M S Word Article reserved Check availability Employee of article order handling SAP R/3 Order handling Generate offer secretary MS Word Delivery NOT Delivery possible Offer created possible Agree on Employee alternative Applix Monitor offer Apprentice order handling delivery date Customer offer Delivery date Customer offer Customer order rejected defined cancelled received Business Process Modeling Utilizing Toolsets Michael Paskevicius © 2008
63.
Identify the Data
Stores When an article inquiry is received the process begins. After the inquiry has been recorded, the inquiry data is transferred to the offer to be issued by the order handling secretary using MS Word. She will use the customer inquiry, customer data and customer conditions in issuing the offer. The order handling employee will check the availability of the desired articles. This is done in the SAP R/3 System using the article data and the customer inquiry. If delivery is not possible, the order handling employee must agree on an alternative delivery date with the customer. If the delivery is possible then the delivery date can be defined. Only then can the articles be reserved in the SAP R/3 System. Of course, a customer rejection can also result when an alternative shipping date is offered if the customer is not willing to accept another delivery date. When the products are reserved, the offer is generated by the order handling secretary in MS Word. The department apprentice monitors the offer in Applix. While the offer is being monitored it may still be cancelled in process by the customer. When the customer order is received, the process customer order process is started. If may also happen that the customer offer is rejected. Business Process Modeling Utilizing Toolsets Michael Paskevicius © 2008
64.
Data Stores
When an article inquiry is received the process begins. After the inquiry has been recorded, the inquiry data is transferred to the offer to be issued by the order handling secretary using MS Word. She will use the customer inquiry, customer data and customer conditions in issuing the offer. The order handling employee will check the availability of the desired articles. This is done in the SAP R/3 System using the article data and the customer inquiry. If delivery is not possible, the order handling employee must agree on an alternative delivery date with the customer. If the delivery is possible then the delivery date can be defined. Only then can the articles be reserved in the SAP R/3 System. Of course, a customer rejection can also result when an alternative shipping date is offered if the customer is not willing to accept another delivery date. When the products are reserved, the offer is generated by the order handling secretary in MS Word. The department apprentice monitors the offer in Applix. While the offer is being monitored it may still be cancelled in process by the customer. When the customer order is received, the process customer order process is started. If may also happen that the customer offer is rejected. Business Process Modeling Utilizing Toolsets Michael Paskevicius © 2008
65.
Article inquiry Customer data
Customer inquiry Customer conditions Enter inquiry Order handling data into offer secretary Article data Employee MS Word Reserve article order handling SAP R/3 Article data Customer inquiry Article reserved Check availability Employee of article order handling Customer offer SAP R/3 Order handling Generate offer secretary MS Word Delivery NOT Delivery possible Offer created possible Agree on Employee alternative Applix Monitor offer Apprentice order handling delivery date Customer offer Delivery date Customer offer Customer order rejected defined cancelled received Business Process Modeling Utilizing Toolsets Michael Paskevicius © 2008
66.
The End
Thank you for your attention Special thanks to: Brian Van Kessel @ Ryerson University Toronto Business Process Modeling Utilizing Toolsets Michael Paskevicius © 2008