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 Find out more at
Deliver more business www.processintelligence
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Process Intelligence!

Gain visibility into your

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than ever before
your key business processes!
Discover opportunities
Process Intelligence (PI) gives you the insight and ability for business process
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can use your business processes to improve quality,
productivity, and profitability, all by making process Understand how
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lifecycle. Learn why leading organizations are using Process Make business
Intelligence and how you can use it in your organization! decisions with the
right information at
the right time

ial Edition Get smart

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ISBN: 978-0-470-87620-6
Book not for resale Bruce Williams
Software AG is a global leader in Business Process Excellence.
Their 40 years of innovation include the invention of the first
high-performance transactional database, Adabas; the first
business process analysis platform, ARIS; and the first B2B
server and SOA-based integration platform, webMethods.

They are unique in offering the world’s only end-to-end

business process management (BPM) solutions, with a low
Total-Cost-of-Ownership. Their brands, ARIS, webMethods,
Adabas, Natural, and IDS Scheer Consulting, represent a
unique portfolio for: process strategy, design, integration
and control; SOA-based integration and data management;
process-driven SAP implementation; and strategic process
consulting and services.

Software AG had revenues of 847 million euros (IFRS, unaudited)

in 2009 and has more than 6,000 employees serving 10,000
enterprise and public institution customers across 70 countries.
Their comprehensive software and services solutions allow
companies to continuously achieve their business results faster.

The company is headquartered in Germany and listed on the

Frankfurt Stock Exchange (TecDAX, ISIN DE 0003304002 / SOW).

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 Process
Intelligence
FOR

DUMmIES
‰

SOFTWARE AG SPECIAL EDITION

by Tobias Blickle, Helge Hess,

Joerg Klueckmann, Mike Lees, and
Bruce Williams

Foreword by Dr. Carsten Bange

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 Process Intelligence For Dummies®
, Software AG Special Edition
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 About the Authors
Dr. Tobias Blickle is Director of Product Management for
Process Intelligence at Software AG. Dr. Blickle studied
Electrical Engineering in Saarbrücken and received his diploma
in 1993. His PhD on Evolutionary Algorithms was awarded with
the prize medal of the Swiss Federal Institute of Technology
Zurich in 1996. He has published several articles about
Process Intelligence.
Dr. Helge Hess is Senior Vice President of Product & Solutions
Management at Software AG and has over 20 years of experi-
ence in the consulting and software business. In parallel to
different management positions within the product division,
he was in charge of IDS Scheer’s BPM Consulting and Academy
for some years. Dr. Hess graduated from the Universität des
Saarlandes in Germany with an MSc in Computer Science and
was a fellow of the Studienstiftung des Deutschen Volkes. He
obtained his PhD in Economics and was the recipient of the
Dr.-Eduard-Martin Award from the department of Business
Administration for his research concerning the reusability of
software components. He is a frequent speaker at BPM confer-
ences and events and has written numerous articles and co-
authored books about Business Process Management, Process
Intelligence, Performance Management, and Organizational
Analysis.
Joerg Klueckmann is Director of Product Marketing for
Process Intelligence Solutions at Software AG. He studied
Sociology, Business Administration, and Intercultural
Communication at FSU, Jena, Germany, and LSU, Baton Rouge,
USA, graduating with distinction. Prior to joining Software AG,
he was Head of Product Marketing at Intershop and IDS
Scheer. He has written numerous articles about Business
Process Management, Business Innovation, and Process
Intelligence.
Mike Lees is Vice President of Enterprise BPM Solutions at
Software AG and was previously responsible for the BPM
Business Line at webMethods/Software AG. Prior to joining
webMethods he was Founder and CEO of the market-leading
metadata and knowledge management vendor Cerebra, Inc.,
which was acquired by webMethods in 2006. He has held
senior positions in technology analysis and fund management
organizations. Michael is a qualified UK Chartered Accountant

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01_876206-ffirs.indd iii 6/1/10 10:25 AM

 (ACA) and has a degree in Business Economics from Durham
University, England. He is co-author of BPM Basics For
Dummies.
Bruce D. Williams is Senior Vice President and General
Manager of Strategic Programs for Software AG and was previ-
ously the Vice President of BPM Solutions for webMethods. He
has graduate degrees in Engineering Computing and Technical
Management from Johns Hopkins University and the University
of Colorado and a BS in Physics also from Colorado. Bruce fre-
quently writes and speaks on topics about business and tech-
nology trends. He is co-author of Six Sigma For Dummies, The
Six Sigma Workbook For Dummies, Lean For Dummies, and BPM
Basics For Dummies.

Dedications
Tobias Blickle: To my family.
Helge Hess: To my wife, Anette, and my children, Jana and
Henri.
Joerg Klueckmann: To my parents Baerbel and Gerd.
Mike Lees: To those I love.
Bruce Williams: To everyone with the vision and dedication to
unite process improvement with information technology.

Authors’ Acknowledgments
The authors acknowledge Nancy Beckman, Mike Burns, Ruth
Ann Femenella, Aleksandra Georgieva, Kevin Iaquinto, Bryan
Quinn, and Annette Rebellato for their guidance and assistance
in the preparation of this work.
We thank Wolfram Jost, Susan Ganeshan, Markus von den
Driesch, Frank Gahse, Andreas Kronz, Ricardo Passchier, Matt
Green, Andrea Nygren, Patrik Hachmann, Andreas Koch,
Winfried Barth, Michael Timpe, and Ian Walsh for their sup-
port in the development of the book.

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 Table of Contents
Foreword . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . vii

Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1
About This Book ........................................................................ 1
Icons Used in This Book ............................................................ 2

Chapter 1: Get Smart about Process Intelligence . . . . . .3

Understanding Process Intelligence ........................................ 3
Making the Process-Driven Organization a Reality ............... 6
The Three Levels of Process Intelligence ............................... 7
The Cycle of Business Process Excellence (BPE) .................. 9

Chapter 2: What Process Intelligence Can Do for You . . . 11

Think Process — See Process ................................................ 11
Black Box and White Box: Two Views of a Process ............. 12
Process Intelligence Revealed ................................................ 13
Intelligence Capabilities ......................................................... 25

Chapter 3: The Information Architecture of Process

Intelligence . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .31
The Process Intelligence Information Architecture ............ 31
Process Intelligence Collection .............................................. 33
Process Intelligence Processing............................................. 34
Process Intelligence Visualization ......................................... 37

Chapter 4: Developing Your Process Intelligence . . . .39

Learning about Process .......................................................... 39
From Knowledge to Intelligence............................................. 43
Implementing Process Intelligence Technology .................. 43

Chapter 5: Process Intelligence in Action . . . . . . . . . . .49

Sales Challenges at UMG ........................................................ 49
Sales Process Intelligence at UMG ......................................... 51

Chapter 6: Ten Application Scenarios for Process

Intelligence . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .57
Contact-to-Order ..................................................................... 57
Procure-to-Pay .......................................................................... 58

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 vi Process Intelligence For Dummies, Software AG Special Edition

Order-to-Cash ........................................................................... 59
Problem-to-Resolution............................................................. 60
Logistics — Order Processing ............................................... 61
Process Intelligence in Financials .......................................... 62
Transaction Banking ................................................................ 62
Straight-Through Processing .................................................. 63
Risk and Compliance ............................................................... 63
Insurance................................................................................... 64

Chapter 7: Ten Best Practices of Process Intelligence . . .67

Get Process Savvy ................................................................... 67
Create Value ............................................................................. 67
Engage the Stakeholders ......................................................... 68
Establish the Wellspring of Knowledge................................. 68
Intelligence Is for Everyone .................................................... 68
Measure First ............................................................................ 69
Keep Things Simple ................................................................. 69
Sync Up with Strategy ............................................................. 70
SOA It Goes ............................................................................... 70
Intelligence Is Forever ............................................................. 70

Chapter 8: Ten Process Intelligence Pitfalls to Avoid . . . 71

Taking Your Eye Off the Ball................................................... 71
Lonesome Cowboy................................................................... 71
We Already Have This ............................................................. 72
It’s an IT Thing.......................................................................... 72
It’s a Secret Weapon ................................................................ 73
You Forgot the K in KPI ........................................................... 73
Baaad Data ................................................................................ 74
Measure Everything! ................................................................ 74
IT Doesn’t Know Process ........................................................ 75
Being Scatterbrained ............................................................... 75

Appendix A: Glossary . . . . . . . . . . . . . . . . . . . . . . . . . . . . .77

Appendix B: Resources . . . . . . . . . . . . . . . . . . . . . . . . . . .83

Web Resources ......................................................................... 83
Blogs and Community Forums ............................................... 84
Books ......................................................................................... 84
Conferences .............................................................................. 85
Technology Vendors ............................................................... 85
Analyst Firms ............................................................................ 85
Look around You! ..................................................................... 86
Software AG .............................................................................. 86

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 Foreword
P rocess Intelligence is the answer to the organization’s
need for timely process information and the ability to
make the rapid decisions demanded by today’s dynamic eco-
nomic developments.

Traditionally, business intelligence concepts focused on inter-

nal and external reporting. Most notably, data warehouses
were developed in the early 1990s to provide integrated and
consistent data to support management decisions. At about
the same time, technology for On-Line Analytical Processing
(OLAP) started to gain mainstream adoption to enable
end-users with fast, interactive analysis of their business
data. Both concepts form the foundation of many Business
Intelligence systems today but are limited to report on infor-
mation from the past.

Ten years later, around the year 2000, there was a growing
understanding that the collection and creation of strategic
planning data reflecting an organization’s future is also an
important part of Business Intelligence. Planning was added
to reporting and analysis applications that mostly reported on
the deviations between plan and actual data.

Now in 2010, the unpredictable and ever-changing economy

also forces organizations to look at the present. Processes
are now under closer scrutiny and need to be monitored and
analyzed in real time to enable organizations to react more
quickly to business events. Organizations also want to auto-
mate decision making when possible during process execu-
tion. Process Intelligence systems offer a solution to this by
combining the technologies for monitoring past and present
performance, planning support for the future, and supporting
the immediate operational needs of processes.

Both from a conceptual and technological point of view, the

emergence of Process Intelligence has just begun. Research at
the Business Application Research Center (BARC) shows that
many organizations lack the fundamental prerequisites to be

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 viii Foreword

in a position to implement Process Intelligence. This starts

with defining and measuring Key Performance Indicators for
processes and ends with the implementation of the neces-
sary technology, for example, the ability to quickly integrate
and analyze business process data. But the need to integrate
Process Intelligence into Business Intelligence and process
management strategies will grow quickly, so it is essential to
start looking at it today.

This book provides a good starting point for companies

that want to adopt the concepts and technology for Process
Intelligence. It provides an excellent overview on Process
Intelligence concepts and technology and will help you to
take the first steps into an exciting new chapter of Business
Intelligence and decision support. I hope you enjoy reading this
book and wish you every success in implementing its ideas.

Dr. Carsten Bange

Founder and CEO
Business Application Research Center (BARC)

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 Introduction
I t’s a process world. In 21st-century business, you must
have a process-oriented view of your enterprise. You must
have access to process information and make it comprehen-
sible and applicable because the very essence of business
performance is based on the effectiveness of your processes.
Hundreds or even thousands of processes are active across
your business enterprise; how well you understand and
manage them defines your success.

To excel in this environment, you have to have more than

just an education and some skills. Those will get you started,
but you need to be process-smart and process-aware. Even
process smarts aren’t quite enough, though. You have to be
instantly up-to-the-minute knowledgeable. And even with all
this, you’ve got to be able to apply this process savvy with
insightful reasoning and goal-directed problem-solving ability.

Putting all this together means you need to have intelligence

in a process-driven enterprise. In other words, you have to
have Process Intelligence.

Process Intelligence (PI) has quickly emerged on the busi-

ness landscape as the way for people to excel in the modern
process-oriented world. PI is a well-designed and engineered
set of tools and techniques for understanding an enterprise
from a process perspective, characterizing active processes,
and knowing what’s happening within and around them.

About This Book

We wrote this book as a primer and as a reference for you.
You may be a business manager, or an IT practitioner, or
maybe an ambitious career individual who wants to know
what Process Intelligence is and how to apply it. This book is
for you!

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 2 Process Intelligence For Dummies, Software AG Special Edition

Process Intelligence For Dummies, Software AG Special Edition

is more than just an overview or survey of Process Intelligence.
It describes both the business management and information
technology sides of the story and delves into the process-
centric foundation upon which Process Intelligence is built. As
a basics book, it is necessarily brief, so you’ll want to follow up
in some of the areas that are most interesting or important to
you. This book is also a reference book that’s organized into
chapters, so you can flip right to what you need.

We use some business management, process improvement,

and information technology concepts and language in this
book. To get extra smart on some of these aspects, check
out BPM Basics For Dummies by Kiran Garimella, Mike Lees,
and Bruce Williams; SOA Adoption For Dummies by Miko
Matsumura, Bjoern Brauel, and Jignesh Shah; Six Sigma For
Dummies by Craig Gygi and Bruce Williams; and Lean For
Dummies by Bruce Williams and Natalie Sayer. Also check
out Balanced Scorecard Strategy For Dummies by Charles
Hannabarger, Frederick Buchman, and Peter Economy (all
published by Wiley).

Icons Used in This Book

In the margins of this book, you will see some helpful little icons
that can help you pinpoint particular types of information:

Key points for implementing Process Intelligence successfully.

Caution — a risk or pitfall could get you into trouble.

When you see this, it’s an indication of a technical detail.

This is where we’ve summarized a concept for you.

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 Chapter 1

Get Smart about Process

Intelligence
In This Chapter
▶ Defining Process Intelligence
▶ Discussing why companies use Process Intelligence
▶ Understanding the three stakeholders
▶ Looking at the cycle of Business Process Excellence

P rocess Intelligence is a special combination of savvy

and information. You learn the savvy part through edu-
cation, training, mentoring, and continuously applied experi-
ence (refer to Chapter 4). The information part is captured
and brought to you by information systems and technologies
(see Chapter 3 for more on this). These systems are part of
the information infrastructure of your business. They’re also
part of the information universe that includes systems within
the businesses of your customers and suppliers, and even
other information and systems out across the Internet.

Process Intelligence satisfies your hunger for knowledge

about your business by feeding you the information you need,
anytime you need it, in the way you can digest it and turn it
into energy going forward.

Understanding Process
Intelligence
Process Intelligence (PI) is the ability to understand business
processes and knowing how to use them effectively. When you

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 4 Process Intelligence For Dummies, Software AG Special Edition

have Process Intelligence, you can use your business processes

to improve product and service quality, productivity, and prof-
itability by making process information more accessible and
comprehensible, and then directly applying it to your business
activities. Process Intelligence is a cornerstone of Business
Process Excellence (BPE), enabling you to better leverage your
investments in management methods, information systems,
and technology infrastructure to improve operational perfor-
mance at every level and more precisely execute on your stra-
tegic intent. In short, Process Intelligence helps to adjust and
apply your processes to compelling business advantage.

Process Intelligence assists everyone involved in a process

to make better decisions every day — including process
engineers, managers, operations folks, and technical staff. PI
includes technologies that use intelligent software to enable
better and faster reasoning about process data. PI software
applies sophisticated tools to tasks such as knowledge acqui-
sition, data analysis, system control, and process optimiza-
tion. PI tools gather process data, provide interpretations,
and make both historic and real-time results available across
your enterprise and even to your suppliers and customers.

Process Intelligence is enabled through technologies and

practices that are the culmination and evolution of tools like
Business Intelligence (BI), Business Activity Monitoring (BAM),
and Process Discovery, combined with analytical methods like
Six Sigma, and enabled through Business Process Management
(BPM) solutions. In PI solutions, the technologies are seam-
lessly integrated, rapidly deployed, and easy to use, leading to
dramatic improvements in business performance.

With Process Intelligence, you can

✓ Discover opportunities for savings by seeing precisely

where waste and loss is occurring in your business
✓ Know immediately when a business process, activity, or
transaction encounters a delay or commits an error
✓ Uncover weaknesses and areas of exposure in any part of
a process or activity
✓ Understand the connections between high-level strategy
and operational activities
✓ See the how value streams between you, your customers,
and your suppliers are working

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 Chapter 1: Get Smart About Process Intelligence 5
Because Process Intelligence is so powerful, you can apply
it to any business process or function. People use Process
Intelligence for everything from order processing, service
management, transaction banking, sales, insurance, health
care, energy and utilities, logistics, and more. In a process
world, everyone seeks Process Intelligence.

Outcomes like revenues, profit, and customer turnover are the

visible results of the many intermediate activities and events
within a business. Figure 1-1 paints the picture. Countless influ-
encers lurk beneath the surface of your business to affect these
outcomes. Of the many operational activities and business pro-
cesses active in an enterprise, what’s the connection between
these few lagging financial indicators and the many leading
process-oriented indicators? When you have the ability to
understand these connections, interpret the leading indicators,
and derive the proper immediate concrete actions to improve
your results, you have Process Intelligence.

Revenue
Profit Turnover

Productivity
Error Rates Cycle Times
Customer Satisfaction
Capabilitie sts
s Process Co

Reliability Levels

Figure 1-1: The tip of the performance iceberg.

Process Intelligence is sought by every corporate manager so

they can effectively interpret operational Key Performance
Indicators (KPIs) in the context of their real-world business
processes. You want process efficiencies and operational
performance to be transparent at all times. If your KPIs aren’t
where you need them to be, you want to immediately identify
and resolve the anomalies. People can’t wait until the end of
the quarter, the end of the day, or sometimes even another
ten minutes to know whether the factors influencing their

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 6 Process Intelligence For Dummies, Software AG Special Edition

targets are on track. With Process Intelligence, you can con-

stantly check how all the pieces of your enterprise are per-
forming. Replace crisis management with the intelligence to
correct errors before problems become serious.

Tools of the past, such as traditional Business Intelligence (BI)

software, are too cumbersome and time-consuming. They don’t
allow you to see the direct link between KPIs and the end-to-
end processes causing these indicators, or immediately take
action to improve your business processes and outcomes.

Making the Process-Driven

Organization a Reality
Successful process-driven organizations share a sense of
purpose and priority. They can translate strategy into action,
define the key indicators of performance at every level within
a coherent hierarchy, and manage the processes that drive
performance. Successful enterprises can synchronize their
long-term strategic goals with the everyday tactical execution
of their related processes. And they accomplish this by apply-
ing Process Intelligence.

Intelligence is power
With Process Intelligence, you can assess your business pro-
cesses in terms of speed, cost, quality, quantity, and other key
measures, and turn your business into a higher-performing
enterprise. You have the power to continuously adjust and
improve the way your internal and external business processes
perform. By understanding KPIs as they happen in live business
processes, you can make objective decisions and realize your
improvement potential. Just imagine the impact you can have
by easily identifying the factors that impact process effective-
ness, and by discovering and reusing best practices.

What’s in it for me?

You aren’t born with Process Intelligence, and you don’t just
suddenly wake up one day with a towering process IQ. You

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05_876206-ch01.indd 6 6/1/10 10:25 AM

 Chapter 1: Get Smart About Process Intelligence 7
develop your process knowledge and analytical capabilities
over time. And what do you get as a result?

✓ Better performance: Improved processes lead to

improved business performance; you’re more competi-
tive and make more money.
✓ An efficient early-warning system: Get out from under
reactive responses by seeing critical key indicators of
performance (quantity, time, cost, quality) in real time —
or even predict potential outcomes.
✓ Faster and better decisions: Identify process deficien-
cies more quickly, and take immediate corrective action
before things get out of hand.
✓ More with less: Get more out of your people, time, and
money by reducing waste and eliminating mistakes in
how work gets done.
✓ Informative benchmarks: Understand what’s happening
now. Benchmark your processes so you know where to
apply improvements and best practices.

Developing Process Intelligence is the best and fastest way to

achieve these benefits. But you don’t have to train to become
a Six Sigma Black Belt or hire a bevy of programmers to make
this happen! The methods and tools of Process Intelligence
are now available to everyone.

The Three Levels of Process

Intelligence
Orient your perspective on processes according to three
levels: strategic, tactical, and operational, which naturally
align to three classes of stakeholders: strategic, tactical and
operational.

The strategic stakeholders

The senior-most managers need easy-to-interpret KPIs that
deliver relevant facts to help them make informed decisions.

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 8 Process Intelligence For Dummies, Software AG Special Edition

Strategic stakeholders need to answer questions like:

✓ Where are we now, relative to plan?

✓ What’s working? What isn’t working?
✓ Will we achieve our goals?

Top managers respond best to visuals like dashboards, so

they can assimilate information easily. For them, Process
Intelligence is how all the tactical and operational processes
roll up to these top-level outcomes. A view that provides
interactive traffic lights, trend charts, and deviations from
planned performance levels (such as time, cost, quality, quan-
tity, risk) is what managers need in order to understand the
status of their performance-driven organization.

The tactical stakeholders

Process owners need end-to-end detailed information. They
must ensure process efficiency and effectiveness — which
they can only achieve by continuously monitoring whole live
processes and evaluating them in terms of quantity, time,
cost, quality, and risk.

Process owners seek Process Intelligence in order to rig-

orously analyze their processes — even down to a single
instance. An average process cycle time of 15 days from ten
processes might be caused by two of the processes needing
10 days while eight processes needed just 5 days. Process
owners must be able to find out what causes the two pro-
cesses to need 10 days. After identifying the root cause, they
can then address the causes and fix the running processes.

What tactical stakeholders want to know is:

✓ Where do we need to intervene?

✓ Are our interventions, changes, and improvements
working?
✓ What further changes do we need to make?

Looking just at the KPIs won’t identify the nature of weak-

nesses and areas for improvement. You have to see and
understand the structure of your processes and find out
which activities are performed, in what order, who is

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05_876206-ch01.indd 8 6/1/10 10:25 AM

 Chapter 1: Get Smart About Process Intelligence 9
involved, and what’s happening. Every individual process
instance can be processed in its own way, so you need to see
each process instance and have the ability to examine the
precise details to discover the real issues.

You don’t learn much from looking at averages. You need to

see the whole landscape — the ranges, the distributions, and
the individual instances. Most often, it’s the outliers that drive
your overall performance, so be sure you see the big picture.

The operational stakeholders

The largest group of stakeholders is the operations staff. They
need to know what’s happening within their individual work
processes right now, in real-time, on an event-by-event basis.
They also need to know where they stand in the end-to-end
value stream. People in operational roles need to manage
current transactions and respond to critical issues as they
happen. They need the knowledge of incoming events and
downstream results, and to be aware of critical situations in a
way that frees them to perform their work but also to respond
to important exceptions and take immediate action. The oper-
ational stakeholders seek answers to questions like:

✓ How well is everything working right now?

✓ What’s going wrong? What action should I take to fix it?
✓ What’s coming next? What do I need to be ready for?

Truly understanding a process isn’t simple. Gaining the insight

needed for Process Intelligence takes time and skill. Managers
need to ensure the operations staff have the support and assis-
tance they need to be successful “process engineers.”

The Cycle of Business Process

Excellence(BPE)
The continuous cycle of improvement, may be a phrase you’ve
heard again and again. But you’ve heard it many times
because it’s important. Take a moment to examine the life-
cycle diagram in Figure 1-2.

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 10 Process Intelligence For Dummies, Software AG Special Edition

Strategize Design

Business
Monitor
Implement
& Control
IT

Execute Compose

Figure 1-2: The life cycle of Business Process Excellence.

You can’t have one

without the other
Everyone used to look at improvement cycles as being con-
tained within either a business area or confined to the IT
world. But these days, you can’t do one without the other.
Process improvement life cycles are part business and part
IT, and there’s a synergy in how they work together. Figure 1-2
shows the lead responsibility lies with the business, but it’s
collaboration between business and IT, all the way through.

Staying on point
Life-cycles go round and round, but change isn’t really sup-
posed to be constant. Just like the rest of us, processes need
stability, too. The result of process improvement is in achiev-
ing a point of stability; you then stay on point to monitor and
control the improved process. That’s why this phase appears
largest in Figure 1-2. Process Intelligence lives at this point
of performance. During the improvement life cycle, you must
design-in the intelligence capabilities (See Chapter 4), but you
apply Process Intelligence most as you monitor and control.

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05_876206-ch01.indd 10 6/1/10 10:25 AM

 Chapter 2

What Process Intelligence

Can Do for You
In This Chapter
▶ Seeing the process
▶ Examining two dimensions of Process Intelligence
▶ Describing the capabilities of Process Intelligence
▶ Looking at some of the tools

O nce you can see your enterprise from a process per-

spective and have the intelligence to really know what’s
happening with your business processes, you can boost per-
formance in every corner of the enterprise.

Think Process — See Process

Process Intelligence is partly in the ability to think about your
business in process terms and partly in the ability to see
those processes in action. You have to grow beyond what we
were all taught to do, which was to think in functions and look
for outcomes. And you have to really see your processes — in
all their depth and detail, in aggregate and in pieces, individu-
ally and connected — to gain the insight and have the intel-
ligence to know how they affect your business.

If you haven’t been exposed to process-centric business

models, you’re in for a change. Look up some of the refer-
ences on process management in Appendix B to better under-
stand what Business Process Management is all about.

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06_876206-ch02.indd 11 6/1/10 10:26 AM

 12 Process Intelligence For Dummies, Software AG Special Edition

Process Intelligence gives you the ability to distinguish what’s

wrong from what’s right. Once you set a limit, a threshold,
a goal, or a boundary condition for any Key Performance
Indicator (KPI) on any process, it’s clear from that moment
forward whether the process is misbehaving.

✓ When a process is behaving, you want the comfort of

knowing everything is all right.
✓ When a process is misbehaving, you want to know every-
thing about what’s gone wrong.

For this reason, most of your focus in Process Intelligence

is around understanding what’s happening when things go
wrong, so you can take corrective action.

Black Box and White Box:

Two Views of a Process
Process Intelligence enables you to understand both the
external and the internal workings of a process. The external
or black-box view of a process tells us about the process: how
the process is interacting with the outside world and how it
is performing as a member of the value stream. The internal
or white-box view of a process reveals its inner workings and
enables you to detect critical failures and make fast adjust-
ments down to a single instance.

Knowing about processes

Everyone must have constant up-to-date information about
performance in their area of responsibility. This includes
the people who are stakeholders in the performance of tacti-
cal and operational process, along with the process owners.
Process Intelligence provides an objective performance
assessment of the business: speed, cost, quality, quantity,
and risk, and identifies areas for improvement. Two classes of
insight are:

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06_876206-ch02.indd 12 6/1/10 10:26 AM

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