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The Future of BPM

The Future of BPM. Understanding where the discipline is going and where to get information on the latest trends . Status of BPM Implementation in 2009.

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The Future of BPM

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  1. The Future of BPM Understanding where the discipline is going and where to get information on the latest trends

  2. Status of BPM Implementation in 2009 • The results of the indicate that although the majority of the participating companies follow BPM initiatives, many companies still have weaknesses in “living” BPM and that there is a large potential for further improvement • Almost all of the participants believe that BPM is important but their understanding of the concept of BPM is still not very mature • The survey shows that the companies do not know about the advantages of BPM and why/how they should perform it. Nevertheless, the majority of the interviewees believe that BPM is rapidly gaining importance in business life which implies that the topic BPM is still on the top of decision makers’ agenda • However, the survey showed that only a small part of the participating companies can be determined to be process-focused organizations according to the criteria taken from literature. The vast majority of companies are still on their way towards becoming process-focused organizations that include the design of end-to-end business processes, measuring and managing of process level results rather than tasks, and thinking in terms of customer goals rather than localized functional goals This slide and the next: Neubauer, T. (2009). An empirical study about the status of business process management. Business Process Management Journal, vol. 15 no. 2, pp. 166-183. BA 553: Business Process Management

  3. Status of BPM Implementation (Cont’d.) • The most important fields that companies need to address in order to realize efficient BPM comprise: • the association of the business strategy with the business processes and the systematical integration of BPM into long-term business objectives; • the use of management methods in order to support the better alignment between strategy and processes and allow the continuous improvement of these processes; • the controlling of process-based risks, as security hazards pose major threats to the efficient execution of corporate business processes and the consideration of new legal requirements; • having an executive manager who has both IT and business knowledge – the CPO; • the introduction of a process team including all necessary roles such as process owner, CPO, process controller, and process auditor; and • the selection and implementation of process-oriented IT-applications in line with the business processes and thus with the business strategy. BA 553: Business Process Management

  4. Envisioning the Future • New strategies, methods, and tools are being identified and developed all the time • New strategies for establishing the desired company culture, new strategies for achieving competitive advantage • New approaches to understanding and managing an organization’s processes • New IT tools, made possible by advances in technology • Some of these will impact the implementation of BPM • It’s important to identify the next wave of changes that may support your BPM efforts BA 553: Business Process Management

  5. Recently Developed Tools Related to BPM • SOA (makes task automation applications available to process designers for speedy implementation) • ECM (manages the lifecycle of information and documents used in the process) • SaaS (hosts software and information) • Cloud computing (supports many of the other items listed here) • Social media and collaboration tools, Web 2.0 and Enterprise 2.0 (enable better and faster interactions regarding process design and process changes) • ACM (models dynamic, knowledge-based processes) As you will see, many of these tools are interdependent BA 553: Business Process Management

  6. SOA • Service-oriented architecture (SOA): a set of principles and methodologies for designing and developing software in the form of interoperable services. These services are well-defined business functionalities that are built as software components (discrete pieces of code and/or data structures) that can be reused.1 • In the future, as businesses want their processes to be much more adaptable to changing market conditions, the technology and infrastructure has to change to support this paradigm of composition and assembly rather than code development. That requires what we call a business services registry-repository where you keep your library or reusable technology assets. You have to decide, based on things you have in your application portfolio, which ones should be exposed as reusable assets, and then you have new composition environment that lets you assemble those Lego-like building blocks into end-user-facing solutions.2 1 http://en.wikipedia.org/wiki/Service-oriented_architecture, accessed 27 March 2012. 2 http://www.informationweek.com/news/software/bi/205210280, accessed 27 March 2012. BA 553: Business Process Management

  7. ECM and SaaS • Enterprise Content Management (ECM) is the strategies, methods and tools used to capture, manage, store, preserve, and deliver content and documents related to organizational processes. ECM covers paper documents, electronic files, database print streams, and even emails • ECM is an umbrella term covering document management, web content management, search, collaboration, records management, digital asset management (DAM), workflow management, capture and scanning • ECM is primarily aimed at managing the life-cycle of information from initial publication or creation all the way through archival and eventually disposal. ECM applications can be delivered through Software as a Service (SaaS) • SaaS is a software delivery model in which software and its associated data are hosted centrally (typically in the cloud) and are accessed by users using a web browser • SaaS has become a common delivery model for most business applications, including accounting, collaboration, customer relationship management (CRM), management information systems (MIS), ERP, human resource management (HRM), enterprise content management (ECM) and service desk management.SaaS has been incorporated into the strategy of all leading enterprise software companies Wikipedia definitions, accessed 27 March 2012. BA 553: Business Process Management

  8. The SaaS BPM Maturity Model “SaaS BPM: Silencing the Skeptics”, http://www.cordys.com/saas_bpm_datamonitor_report, accessed 27 March 2012. BA 553: Business Process Management

  9. SaaS Benefits • Reduce project risk by minimizing up-front captial investment requirements • Rapid ROI from fast deployment and “pay as you go” pricing • No ongoing human capital costs for data center operatons • No ongong software and hardware maintenance fees • Freedom for scare IT resources to focus on core business • Frequent sotware updates/patches without business disruptions • Lower training costs, lower desktop configuration management costs • Consistently lower total cost of ownership • Typically better reliability, security, and interoperability This slide and the next: Barlow, G. (2009) “How Cloud Computing Will Change Business Process Management”, referenced on http://bpmfundamentals.wordpress.com/2010/01/03/cloud-computing-bpm-whats-it-all-about/accessed 27 March 2012. BA 553: Business Process Management

  10. BPM in the Cloud: Business Operations Platform BA 553: Business Process Management

  11. Social Media and Collaboration Tools • Social Process Design: A hospital that gets nurses (all of them) heavily involved in collaborating to design and modifying the processes they execute every day. The nurses “own” their processes. • Process Change Socialization: A hotel chain that has grown a community of hotel managers who collaborate on propagating, refining and executing business process improvements rapidly in hotels across the globe. • Process Support for Social: Social media and community collaboration can’t thrive outside of the rest of the business. Organizations that are really serious about social media success recognize that some business processes must be altered to create a more conducive environment for community collaboration to thrive. • Social Support for Process:  This is the whole structured v. unstructured process discussion. Where can social media as an enabler for unstructured processes benefit your organization? How can you use social media to support and shed light on unstructured business processes? Bradley, A. (2011) “Social Media and Business Process Management Make Strange Bedfellows”, accessed 27 March 2012. http://blogs.gartner.com/anthony_bradley/2011/03/07/social-media-and-business-process-management-make-strange-bedfellows/ BA 553: Business Process Management

  12. Web 2.0, Enterprise 2.0 • Web 2.0: a “second generation” Web representing a transition from static Web pages to dynamic, interactive, application-rich sites that typically encourage user participation. Web 2.0 also refers to providing improved ability for people to meet, network, collaborate and share information online. This approach makes it easier for users to collaborate on business process management (BPM) and process-improvement initiatives. Blogs, wikis, video-sharing and social networking are among the many examples of Web 2.0 technologies.1 • Enterprise 2.0: the integration of Web 2.0 technologies into a company's intranet, extranet and business processes. The Enterprise 2.0 approach is expected to apply an increasingly strategic role in business process management (BPM). Enterprise 2.0 initiatives are often intended to increase productivity and innovation by allowing users to easily share information and collaborate on tasks and projects. Such initiatives may be in-house or Web-based, and they may involve a company’s partners or customers as well as its employees.2 1 http://www.ebizq.net/topics/web_20, accessed 27 March 2012. 2 http://www.ebizq.net/topics/enterprise_20, accessed 27 March 2012. BA 553: Business Process Management

  13. Adaptive Case Management (ACM) and BPM • ACM is “the optimization of long-lived collaborative processes that require secure coordination of knowledge, content, correspondence, and human resources and require adherence to corporate and regulatory policies/rules to achieve decisions about rights, entitlements or settlements. The path of execution cannot completely be predefined; human judgment and external events and interactions will alter the flow.” (Gartner definition) • ACM diagrams are created by the flow of the process in a specific instance, while BPM diagrams are created beforehand and control the flow of the process • ACM solutions fit a specific business process requirement – dynamic routing. They’re not meant for well-structured or compliance-processes like finance and legal processes • ACM solutions work well for health care, call center processes and internal organizational communications where you want to allow the end-users to have the flexibility to change the process route BA 553: Business Process Management

  14. Key Points Regarding the Future of BPM • Fast, Agile, Results-driven BPR - When Business Process Reengineering (BPR) started in the early 90s, it quickly got swept up into the world of big projects, long time-spans and far too often, economic value destruction. Some estimate that as many as 75% of BPR projects failed to create value. The new BPM is fast, agile and results-driven. Projects that would have taken a year in the past are new delivered in 100 days. • Capabilities, Not Just Processes or Systems - One of the key reasons BPR failed in the past was the over-emphasis on processes and particularly, on systems. Put in SAP or some other all-encompassing system and all your problems are solved was the mantra. The new BPM recognizes that businesses have value-creating capabilities comprised of a mixture of processes, business rules, supporting systems, information flows, work climates, and organizational structures. All the components are required if BPM is to deliver any value. • Customer Co-creators - The new BPM not only starts with customer-facing processes but involves customers intimately in the process of reengineering itself. Whether through customer communities, lead-customers or customer advisory boards, customers are now firmly part if the BPR team. This slide and the next: Hill, G. (2008). “The Future of Business Process Management”, http://www.customerthink.com/blog/future_business_process_management, accessed 27 March 2012. BA 553: Business Process Management

  15. Key Points (Cont’d.) • Structured Approaches like Lean Six Sigma – Organizations are using lean to remove non-value-adding waste from processes and six sigma to remove unnecessary variation… There was a consensus that starting with lean to create customer-centric, efficient and effective processes and then applying six sigma in specific areas with a process variation problems is the best way forward. The new BPM is driven by lean six sigma. • Social Collaboration Tools - Traditional BPR produced reams of paper documentation that was never read and that quickly became obsolete. The new BPM uses social media to maintain project documentation and blogs for internal project communication. The same tools can be used to maintain process documentation so that it is always current and always available. • Process Automation, Activity Monitoring & Event Detection - Once you have reengineered your processes, they need automating. Today's BPM tools allow you to automate your business processes, to monitor their health and spot unusual events that need attention. Process automation isn’t for everyone, but if you have many complex processes, large volumes of transaction running through them, and customers who can easily switch to your competitors, you cannot afford not to automate. BA 553: Business Process Management

  16. Gartner: Thoughts on the Future of BPM At the 2010 Gartner Business Process Management Summit, Gartner analysts shared five predictions about the future of BPM: • By 2012, 20 per cent of customer-facing processes will be knowledge-adaptable and assembled just in time to meet the demands and preferences of each customer, assisted by BPM technologies • By 2013, dynamic BPM will be an imperative for companies seeking process efficiencies in increasingly chaotic environments • Through 2014, the act of composition will be a stronger opportunity to deliver value from software than the act of development (SOA, ICE) • By 2014, business process networks (BPNs) will underpin 35 per cent of new multi-enterprise integration projects • By 2014, 40 per cent of business managers and knowledge workers in Global 2000 enterprises will use comprehensive business process models to support their daily work, up from 6 per cent in 2009 “Gartner Reveals Five Business Process Management Predictions for 2010 and Beyond”, http://www.gartner.com/it/page.jsp?id=1278415, accessed 27 March 2012. BA 553: Business Process Management

  17. Harmon: Thoughts on the Future of BPM Enterprise Level Process Work • Although most organizations currently lack well-designed business process architectures, there has been a lot of interest in defining what a good business architecture might be like and developing tools to help companies create good Architectures • The Object Management Group (OMG) has also launched standards efforts to better define concepts like value chains and business architecture • A few mature organizations made significant efforts to develop and align senior managers with business processes in 2010, and we expect more will make similar efforts in 2011 Standards Efforts and Certification • 2010 may go down in history as the year of certification exams. Several existing associations put a lot of emphasis on certification offerings in 2010: several associations were formed, seemingly just to make money offering “professional” certifications This slide and the next: Harmon, P. (2010). ”BPM in 2011”accessed 27 March 2012. http://www.bptrends.com/deliver_file.cfm?fileType=publication&fileName=01-11-2011-ADV-BPM%20IN%202011-HARMON.pdf BA 553: Business Process Management

  18. Harmon: Thoughts on the Future of BPM Academic BPM • Whatever may be happening in the commercial BPM arena, BPM in academia is well and growing rapidly: there are more university BPM programs every year and the best of them are doing very well • Most graduates of university BPM programs are probably going to work in research labs and at other universities, but they are, at the same time, doing research that will advance our understanding of process technologies Process Redesign and Improvement Projects • Lots of organizations pursued projects to cut process costs in 2010 and many will continue to do so in 2011 • The integration of business rules and business process continues to pick up momentum • Another interesting discussion within the BPM community that got a lot of attention in 2010 was where one gets people to do process work: some process people lost jobs in 2010, but overall the job market for process people continued to be strong as other companies launched new cost savings initiatives BA 553: Business Process Management

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