Business Process Modeling and BPMN Training

1. Business Process Modeling andBPMN Training

2. Business Process Modeling An Introduction Getting Started BPMN Overview Graphical Elements Diagram views with BPMN Agenda

3. Business Process Modeling

4. A set of related tasks or activities which produce a specific service or product for a customer or group of customers The field of Business Process Management (BPM) attempts to optimize business processes Business Processes

5. What is a Business Process? • A collection of related, structured activities--a chain of events--that produce a specific service or product for a particular customer or customers.www.gao.gov/policy/itguide/glossary.htm • The complete response that a business makes to an event. A business process entails the execution of a sequence of one or more process steps. It has a clearly defined deliverable or outcome. ...www.georgetown.edu/uis/ia/dw/GLOSSARY0816.html • A business process is a recipe for achieving a commercial result. Each business process has inputs, method and outputs. The inputs are a pre-requisite that must be in place before the method can be put into practice. When the method is applied to the inputs then certain outputs will be created. en.wikipedia.org/wiki/Business_process What PEOPLE do to meet the needs and expectations of their CUSTOMERS, whether they be internal or external consumers of a product or service.

6. A Brief History of Business Process Early 1900’s: Breaking a job into individual tasks. Fredrick Taylor, Principles of Scientific Management Early 90’s: Reorganize the business and business processes to cut across traditional corporate silos and deliver on customer value chain. Champy & Hammer, Reengineering the Corporation Mid 90’s: Our business processes need to be completely documented, consistently followed and regularly audited. ISO9000 certification 90’s & 00’s: Pull many of the previous techniques into a comprehensive framework focused on quantitative measures and process improvement. Six Sigma Future Trends: Maturation of modeling & workflow tools into full process management systems. Integration of business process improvement and measurements into corporate strategic goals. Additional emphasis on the human side of business change. Integration of process management systems with business rules engines and application development tools. 90’s & 00’s: Application-centric workflow tools used to automate business processes. Some include integrated process modeling & metric reporting. Mid 90’s: Radical reengineering is hard, maybe we should focus on incrementally improving our processes. Harrington, Business Process Improvement 70’s & 80’s: Focus on quality management and statistical measures. (Total Quality Management: TQM) W. Edwards Deming, Fourteen Points of Management for Quality

7. What is a Business Process Model? • Documentation of a business process using a combination of text and graphical notation. • Depicts the Process that People employ to provide value to their Customer with a strong emphasis on how the work is done. • Defines a process as a specific ordering of work activities across time and place with a beginning, an end, and clearly defined inputs and outputs. • A component of the overall Business Architecture that serves as a reference for Business Analysis activities.

8. Why Business Process Modeling? • (1) Align Operations with Business Strategy • Implementing a business strategy or a new business model requires changes in the operations and in how people perform their work. This can be affected only by operationalizing the business changes to the actual business processes, business rules and decisions that are made on a day to day basis by all the people in the organization. • (2) Clear Communication of Processes and Procedures • One area that distinguishes successful businesses and teams is that they have a very clear idea of what they are supposed to do, how they are supposed to do it and what is the exact role of every team member. Clear communication of the operational processes is critical to facilitate a smooth functioning of a team. • (3) Control and Consistency • Organizations and companies that succeed are ones that ensure their business processes and rules are well designed and that they are consistently applied the same way every single time. This process control and consistency is key for success in organizations ranging from fast-food chains to hospitals to NASA Space Shuttle operations. • (4) Operational Efficiencies • In today's business environment, every business and every manager wants to ensure that they are achieving the best possible results with the resources available to them. There is no room for inefficiencies and wastage. • (5) Gain Competitive Advantage • All the benefits mentioned above lead to a significant competitive advantage for an organization that has invested the time and effort to document, simulate and improve its business processes. A business that has aligned its operations to its strategy, is agile, that has control over its processes, is running efficiently and has well trained staff is indeed at the top of its game.

9. Business Process Methodology – The Basics • The most basic approach consists of developing an As-Is model and using it to build the desired To-Be model • Here are a few of examples…

10. Business Process Modeling – 3 Steps • Process Design & Mapping • Create a visual diagram representing the flow. • Process Documentation • Capture the business rules, routing rules and errors. • Process Analysis • Analyze and improve the process using simulation.

11. Step 1: Process Design & Mapping – Using BPMN

12. Step 2: Process Documentation

13. Step 3: Process Analysis and Simulation

14. How to get started with Process Modeling? Start with a Plan – What am I going to do? • Identify what tangible value (product or service) is being produced that you need to understand • Start at the top of the value chainand work downward and work downward to identify thePeople andEntities involved in theProcess • Start at the bottom of the value chainand work upward and work upward to fully understand the accomplishments of each step that lead to the desired results • Setup and completeInterviewsof thePeople(or a fair representation of large groups) • Interviews may also uncover newPeopleor peripheralProcessesthat you had previously not detected • Set a course and work methodically • Don’t set out to boil the ocean from the outset • Work in a progression that makes sense to you and/or your project End with a Plan – what am I going to do now?

15. Start Simple Even when a “basic” BPM format is used, if the information from this example is included, it is likely a successful format!

16. Process Modeling Layers Start at the Top, and work Down! • Enterprise Value Chain Layer • The highest level describing the overall functions of the organization • Great for management “overview” for everyone, too vague for much use • Enterprise Processes Layer • Describes the major processes within a part of the value chain and how they relate to each other • Ideal for understanding overall Business Architecture, Strategy and Goals/Vision but too broad for requirements Vision & Strategy SubscriptionMarketing Ad Sales Customer Care SubscriptionMaintenance Identify Prospects Build Ad Partners Process New Subscriptions ProcessRenewals Acquire NewCustomers Business Processes & Tasks Print Procedures 1. Open MS Word 2. Open the document 3. Select File | Print 4. Select a printer 5. Press the OK button

17. Process Modeling Layers Start at the Bottom, and work Up! • Business Processes/Activities Layer • Describes the main activities, decisions and variations with a process • Critical to defining areas of improvement, feature statements and Use Cases but too detailed for strategic planning and too open to interpretation for requirements steps • Procedural/Tasks Layer • Describes the detailed steps done to complete an activity (can be many layers deep) • Necessary for detailed Use Case Steps, Business Rules, Validation Criteria, etc. but loses the attention of management at Strategic level Vision & Strategy SubscriptionMarketing Ad Sales Customer Care SubscriptionMaintenance Identify Prospects Build Ad Partners Process New Subscriptions ProcessRenewals Acquire NewCustomers Business Processes & Tasks Print Procedures 1. Open MS Word 2. Open the document 3. Select File | Print 4. Select a printer 5. Press the OK button

18. Conduct Interviews • Schedule enough time to ask questions about what a Person does but to also watch them perform their duties for a period of time • Document everything that is said and pay special attention to the specific order of events, pre-requisites, inputs and outputs, constraints, things that work well vs. things that need improvement • Ask Questions and begin Analyzing on the spot

19. Analyze! • The deliverable of a Business Analyst conducting Business Process Modeling is rarely to document the “status quo” process. Do something with the knowledge, you may be the only person in an organization with both the big picture and details! • Analyze the process and INVENT ways to improve or modify the process with a new or modified ‘system’ (not always a computerized system!)… even during the interview! • What did the People like that should continue? • What did the People dislike that could be fixed? • Where was the Process inefficient or constrained in a way that could be improved? • Were any opportunities to automate repetitive functions identified?

20. BPMN – Business Process Modeling Notation

21. Business Process Modeling Notation (BPMN) Defines a standard way of representing business processes in Business Process Mapping Goals: Standard graphical notation Intuitive and understandable Bridge the gap between business analysts and developers BPMN

22. Purpose: Symbolic Instant recognition Differentiate Four categories: Flow Objects Connecting Objects Swimlanes Artifacts Graphical Elements

23. These are the core elements of a BPD. Three types: Event Activity Gateway Flow Objects

24. What is an event? Represented by a circle. Three different types: Start Event: Intermediate Event: End Event: Can have a trigger or a result. Used to start, interrupt or end a flow. Flow Objects - Event

25. What is an activity? Represented by a rounded edge rectangle. Two different types: Task: Sub-Process: Sub-Process can be included by other processes. Flow Objects - Activity

26. What is a gateway? Helps diverge or converge the sequence flow. Represented by a diamond. Branching. Forking. Merging. Joining of paths. Flow Objects - Gateway

27. Helps connect the flow objects. Three types: Sequence Flow Depicts the order of execution of the flow objects. Message Flow Depicts the flow of messages between two process participants. Associations Associates data, text and artifacts with flow objects. Used to show inputs and outputs of activities. Connecting Objects

28. Illustrates different functional capabilities or responsibilities. Two types: Swim Lanes • Pool: • Depicts different business entities/participants. • Sequence flow cannot cross the boundary of the pool. • Message flow used for communication with another pool. • Lanes: • Depicts closely related but distinct participants. • Sequence flow can cross over lane boundary. • Message flow cannot be used between two lanes. Name Name Name Name

29. Help specify details. Do not alter sequence flow. Three pre-defined types are: Data Objects Show how data is required or produced by activities. Group Grouping for better analysis/documention. Annotations Artifacts Annotation provides extra information. Analogous to comments.

30. Additional details can be added to core elements. Adds higher level of precision to the model. Example of internal markers to the events. Internal Markers

31. Internal business processes Focus on the point of view of a single business organization. Defines activities that are not visible to the public Can be developed in parallel with other business elements Views of BPMN

32. Collaborative B2B Processes Interaction between two or more business entities only Defines interactions that are public for each participant Shows less internal detail of the entities Views of BPMN

33. Sub-Processes

34. BPM Best Practices • Ensure a high-level Champion or Steering Group is formed to provide executive sponsorship and definition of goals in a large process-modeling exercise. • Start small, demonstrate success and build on the success. Start with a narrow scope before trying to choreograph an entire enterprise business process model. • Ensure business persons’ expectations are set appropriately at the outset; otherwise they will assume that this project is “just like all of the other projects that came before” and produced few tangible results. Make sure you deliver on those expectations! • To be successful, BPM must be a way of thinking of the enterprise and building a process into the overall business architecture rather just a way of documenting steps in a process that appears to be independent of the business.

35. BPM Best Practices (continued) • Build Re-Usable Process Components when possible • Business Objects/Entities • Customer (Name, Address, E-Mail address, Phone Number) • Customer Report (Name, Date Added, Last Sale Date, Credit Rating) • Loan (Loan Name, Loan Type, Interest Rate) • Interfaces and Systems • System Notation, Name, Description • Interface Name, Description, Purpose, Input/Output formats, etc. • Processes and Activities • Retrieve Customer Data • Update Address • Organizational Structure descriptions • Department/Division Name, Description, etc.

36. Other Resources • BPMN.org – Standards Body • Introduction to BPMN – White Paper • http://www.bpmn.org/Documents/Introduction_to_BPMN.pdf • BPMN Fundamentals • http://www.bpmn.org/Documents/BPMN_Fundamentals.pdf • Another Tutorial • http://www.bpmn.org/Documents/OMG_BPMN_Tutorial.pdf

37. Thank You! Please also visit: www.AccuProcess.com