Business Process Management (BPM)

Lecture 2
Business Process Modeling / Repository Management
 Business Process Repository as Enabler for Process Assets

To gain the aimed outcome of business Business Process Repository Illustration

transparency, efficiency and agility it is required
to capture and document processes in the format of
process models.
A business process repository is a vehicle to
store process models and process-related
information as a basis for Business Process
Management, e.g. to enable
• rollout to other locations
• definition of IT requirements
• operational risk analysis
• quality improvement initiatives
Business
• third party collaboration activities Process
Repository
• …

Source: Kirchmer, High Performance Through Process Excellence; Springer 2008; page 22
Typical Scenario of Business Process Standardization

Modeling Tool

Business Process Business Process Localization/Deployment

“Template” Design

80% standard

80% standard
20% local specifics

Business 20% local specifics

Process
Repository 80% standard

20% local specifics

Reference • Industry References

• Standards & Compliance
Models References (ITIL, ISO, …)
 Big Difference: Drawing versus Modeling

Drawing Tool: Repository Tool:

• allows user to create graphical • allows user to create graphical representations of
representations of processes processes

plus

• provides a repository for storing models, objects and

further information/attributes
• enables users to query and report on stored content
• allows consistency checks to be performed on
models to ensure modeling standards are followed
• provides dynamic views of processes, allowing the
flexibility to show different aspects of the processes
based on audience
• creates a centralized place for accessing process
information and allows multi-user access and
collaboration
 Different Types of BPM Tools

Different types of BPM tools are available

• BPA-Tools to support Business Process Analysis

• BAM / Process Mining -Tools to support Business BPA
Activity Monitoring
• EAM-Tools to support Enterprise Architecture
Management
• BPM-Suites to support several activities of Business
Process Management-Lifecycle BPMS
EAM

BAM /
The depth and breath of functionality and features vary
by type of tool. Several tools provide functionality in Process Mining
more than one category…
Business Process Technology Usage

Core Use Cases BPA EA BRMS BPMS BAM

Process Analysis (cost, time, others)

Comprehensive Process Modeling
Business Process Architecture Design
Application, Hardware, Information Architecture
Design
Application, Hardware, Information Architecture
Monitoring / Management
Design and store business rules
Execute business rules
Process Execution
Determine whether a process performs up to
expected metrics / KPIs
 BPM Tool Types – Description & Key Characteristics

• Description: Business Process Analysis tools provide capability to model, analyze, compare and streamline
complex business processes. They may also act as a process repository for an organization.
BPA • Key Characteristics: visual business process modeling, standard BPM modeling methodologies & notations,
process decomposition and Integration, content export and import, content publishing and reporting, extensible
process repository, simulation

• Description: Enterprise Architecture Management tools store, integrate and structure information which
systematically and completely defines an organization’s current (baseline) or desired (target) environment. EAM
EAM tools must also support the creation, collection, analysis and presentation of this information.
• Key Characteristics: multiple methodologies and modeling approaches, visual and automated modeling interface,
automated development capability, extendibility and customization, simulation and analysis

• Description: Business Activity Monitoring tools provide event-driven, real-time access to critical business
performance indicators via dashboard. BAM is used to improve the speed and effectiveness of business operations
BAM /
by raising awareness about issues as soon as they can be detected.
Process Mining • Key Characteristics: dashboard for the display of real-time metrics and alarms, rules editor to configure, historical
data store for trend analysis, integration with process modeling, enterprise service bus tools for real time input

• Description: BPM-Suites support the complete business process management-lifecycle, from initial analysis and
modeling activities over implementation towards continuous process performance improvement.
BPM-Suites • Key Characteristics: complete BPM lifecycle development and management capability, code free BPM design,
development and execution, integration capabilities within various components as well as external vendors,
business rules management capabilities, supports both human-centric and system-centric scenarios
 Different Ways of Business Process Documentation
Presentation as text
“Car reservations are done by Service Agent in the system CAR RESERVE. He uses customer data as well
as booking data for input.”

Presentation as table

Process Step Role IT System Input Output

customer data,
Reserve car Service Agent CAR RESERVE car reservation
booking data

Presentation as process model

Business Process Modeling with ARIS -
ARchitecture of Integrated Information Systems

ARIS
 ARchitecture of Integrated
Information Systems
 general concept used to describe
business, processes and application software
 developed by Professor
Dr. Dr. h.c. mult. August-Wilhelm Scheer
 ARIS is both process modeling tool
and process modeling methodology
 Views of the ARIS House

Organizational View
Who is involved in the process?

Roles, Departments, ...

Control View
How do all those views fit together?
Who is doing what by means of which
Data View data to produce which deliverables and Function View
What information is needed in which logical sequence are the Which functions are carried
or produced in the process? activities carried out? out in the process?

Documents, Data, ... Activities, Tasks, ...

Process

Deliverable View
What are the deliverables of the process,why do I need it?

Products, Services, ...

Source: Kirchmer, High Performance Through Process Excellence; Springer 2008; page 5-6
 ARIS House with Model Types *
Organizational Chart

Technical Terms Value-Added Application System

Model Chain Diagram (VACD) Type Diagram

Technical term Technical term

Technical term Technical term Event-Driven

Process Chain (EPC)
Technical term Technical term

Technical term Technical term

Product Tree

*selection of some frequently used ARIS model types

Levels of Business Process Modeling

Process Supply
Management
Map

Level 1

Process Inventory
Management
Area
Level 2

Goods
Process Receipt

Level 3

Receive
shipping
Process Step notification

Level 4
Purpose and Basic Objects of the Event-Driven Process
Chain (EPC)
• EPC is used to represent the control flow, i.e.,
the logical and temporal flow of the individual
functions of a process
Event
Object type: Event

Function
Object type: Function

AND

Object type:
XOR (either/or)
Rule/Connector

OR (and/or)
Principle of the Event-driven Process Chain (EPC)

 Events trigger functions

 Functions generate events

Book Flight
flight booked

Function Event
Booking Check Booking
inquiry booking Inquiry is
received inquiry complete

Event Function Event

Book Hotel
hotel booked

Function Event
Example Control Flow of an EPC

Start Booking inquiry

received

F1 Check
booking inquiry

E1 Booking inqiry
complete

F2 F3 Book flight Book hotel

E2 E3 Flight booked Hotel booked

F4 Create invoice

End Invoice created

 Function: Definition and Naming Convention

• A function is a business task performed on an (information) object to

support one or more corporate objectives
• Typical synonyms for a function are: activity, process step, operation, etc.

• Naming convention for functions in an EPC is:

• verb (infinitive) +
• information object (noun)

Release
customer Verb / Task
order Information object
Function: Naming Conventions

Release Customer order Verb is

cust._order
abbreviations! release missing

Carry out
Release Unclear
order
customer order Nominalization
information release

Release
custumer order
wrong typing
 Event: Definition and Naming Convention

• Event is used when an information object has reached a business-relevant state

that controls or influences the subsequent steps of the process

• Naming convention for “standard” events is:

• information object (noun) +
• status change (past participle of verb)

Customer Information
order object
released
Status change
(past participle)
 Event: Naming Convention after Decision

• Specify the possible results of the check instead of typing “check performed”
• As a rule, a check function has at least two mutually exclusive events

Check Check
creditworthiness creditworthiness XOR:
Precisely one option

Creditworthiness
checked

Creditworthiness Creditworthiness
is given is not given
EPC: Example of “AND” Rule

• “AND” rule is used to split the process flow into parallel, independent paths.

Cancel
customer
order
AND:
All options must occur

Customer Customer
order informed about
canceled cancellation
EPC: Merging Paths
Start Start

F1 F1
Paths must return to the connector
from which they branched

E1

E1 E2

F2 F3
F2 F3

E2 E3
E2 E3

F4

F4

Ende

Ende
EPC: Example of OR Connector

Determine
costumer
requirement

OR = and/or:
At least one of the options

Costumer Costumer Costumer

requirement = requirement = requirement =
hotel reservation flight booking reserve hire car
EPC: Connectors

E1 E1

F1 F2 F1 F2

Who decides which path is used?

no “XOR” or “OR” after one SINGLE event!
EPC: Connectors

Multiple incoming/outgoing lines

for a single connector

An additional connector is needed!

Process Interface: Purpose

• The process interface is an additional symbol for the function object type in the EPC.

• Process interfaces are used to:

• represent predecessors and following processes
• Navigate to predecessors or followers directly from an EPC
(by opening the assigned model)

Process interface symbol

(object type: Function)
Process Assignments
Model level: n
P1 P2 P3

Model level: n+1

P1 P2 P3
P1 P2
E1

F1 E3 E5

F3
E2

F5 F6

E4
F2

E6 E7

F4
E3

F7
E5

P2

E8

P3
EPC Modeling Rules

• Every EPC begins with at least one start event (or a process interface)
• Every EPC ends with at least one end event (or a process interface)
• An event is followed by either a function or an “and” connector
(exception: end of an EPC)
• A function is followed by either an event or a connector
• Every function has exactly one incoming and one outgoing line in the process flow
• Every event has exactly one incoming and one outgoing line
(exception: start and end of an EPC)
• A connector has either
• multiple incoming lines and one outgoing line
• or one incoming line and multiple outgoing lines
“Process Weak Point Analysis” to analyze and improve
processes achieving “Quick Wins” – repository based 1/2
Inquiry to
Inquiry
create from
received

•
contact

Define objectives for the process improvements, e.g. cost reduction,

Inquiry
improved customer services, reduced cycle times, shorter call
Register Employee
customer
inquiry
Sales

durations, increased yields, improved employee satisfaction, etc.

Sales System
(SAP) Customer
inquiry

• Define KPIs to measure process objectives (frequency, customer

registered

Inquiry
Configure
product
Employee
Sales
impact, # of users, cycle time)
Sales System
(SAP) Product
configured
• Determine highest priority processes
Client Profile Define
customer
discount
Employee
Sales
• Areas to examine
Customer
discount
defined • Organization
Produkt List Define
price for
product
Employee
Sales
• Are there too many organizational units involved causing
Boykott List Perform
Employee
inefficiencies?
export
Export
control

• Should additional organizational units be involved?

Export
allowed
Export
not allowed
• Should external organizational units be involved?
Export Confirmation
Form Create
customer
inquiry
Secretary
Sales
Export Refusal Form
Reject
inquiry
Secretary
Sales • Functions
• Are some of the functions redundant?
Sales System Sales System
(SAP) Customer (SAP) Inquiry
inquiry
rejected
created

Employee
Sales

• Is the execution quality sufficient?

Production Check product
System availability
Employee
Production

Offer to be
defined
Inquiry
positions
• Are functions executed efficiently?
canceled

Customer offer
processing
• Do we need additional functions?
BPM Repository Management
 Defining the Repository Strategy

What content What

should be repository
included in Content Format structure and
the Process format should
Repository? be used?

Value:
Usage
Scenarios
What are the
What policies,
process organizational
repository Tool/ structures, and
tools should Usability Governance processes to
deployed and govern the
how? process
repository?
Source: Value-Driven Business Process Management; Franz, Kirchmer
Process Reference Models
 What are Process Reference Models?

Process Reference Models are generic conceptual models that formalize

recommended practices for a special domain.

Reference Models

Representation Universal
of Best Practices Applicability

Reusability
Examples of Process Reference Models

APQC VRM

Reference Models

Accenture BPM
SCOR
Reference Models

SAP BPR …
 Usage of Process Reference Models

Repository
design and build

Reference Models

Business
Software selection,
process design
implementation,
and
development
improvement

Change management, Best practice analysis

training, documentation and benchmarking
 35

Benefits of Process Reference Models

Starting point and

accelerator for
repository creation
Accelerator for Support of group
Reference Models
business process, facilitation
functional, &
technical design
Common language

Risk reduction
Support of
business process
Standardization improvement

Time and cost savings Reusability

Why do Organizations adopt Process Frameworks?

APQC 2010 Survey Answer Distribution

(76 Companies Surveyed) (can check multiple answers)

Performance management and metrics 61%

Definition of key processes requiring cross functional owners 45%

Content management system/knowledge management 30%

Reorganization/reengineering project, merger, divestiture, etc. 29%