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Summary Data-driven Business Processes
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Fundamentals of Business Process Management Summary
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Summary Data-driven Business
Processes
Made by: Alexander Maatje
,Contents
Chapter 1: Introduction to Business Process Management....................................................................3
1.1 Processes everywhere..................................................................................................................3
1.2 Ingredients of a Business Process.................................................................................................3
1.3 origins and history of BPM............................................................................................................4
1.4 The BPM lifecycle..........................................................................................................................5
Chapter 2: process identification............................................................................................................6
2.1 The context of process identification............................................................................................7
2.2 Definition of Process Architecture................................................................................................8
2.3 Process selection........................................................................................................................11
Chapter 3: Essential Process Modelling................................................................................................13
3.1 First steps with BPMN.................................................................................................................13
3.2. Branching and Merging..............................................................................................................13
3.3 business objectives.....................................................................................................................16
3.4 Resources....................................................................................................................................16
3.5 process decomposition...............................................................................................................17
3.6 process Model Reuse..................................................................................................................18
Chapter 5: Process Discovery................................................................................................................18
5.1 The setting of Process Discovery.................................................................................................18
5.2 Process Discovery Methods........................................................................................................19
5.3 Process Modelling Method.........................................................................................................21
5.4 Process Model Quality Assurance...............................................................................................22
Chapter 6: Qualitative Process Analysis................................................................................................25
6.1 Value-Added Analysis..................................................................................................................25
6.2 Waste analysis............................................................................................................................25
6.3 Stakeholder analysis and issue documentation..........................................................................26
6.4 Root Cause Analysis....................................................................................................................28
Chapter 7: Quantitative Process Analysis..............................................................................................30
7.1 Flow analysis...............................................................................................................................30
7.2 Queues........................................................................................................................................35
7.3 Simulation...................................................................................................................................37
Chapter 8: Process Redesign.................................................................................................................39
8.1 The Essence of Process Redesign................................................................................................39
8.2 Transactional Methods...............................................................................................................42
8.3 Transformational Methods.........................................................................................................44
,Chapter 10: Process Implementation with Executable Models.............................................................46
10.1 Identify the Automation Boundaries........................................................................................46
10.2 Review Manual Tasks................................................................................................................47
10.3 Complete the Process Model....................................................................................................49
10.4 Bring the Process Model to an Adequate Granularity Level......................................................50
10.5 Specify Execution Properties.....................................................................................................51
Chapter 11: Process Monitoring...........................................................................................................52
11.1 The Context of Process Monitoring...........................................................................................53
11.2 Process Performance Dashboards.............................................................................................53
11.3. Introduction to Process Mining................................................................................................54
11.4. Automated Process Discovery..................................................................................................56
11.5. Process Performance Mining...................................................................................................59
11.6. Conformance Checking............................................................................................................61
11.7 Variant Analysis.........................................................................................................................62
11.8. Putting it all together: Process Mining in Practice....................................................................63
Chapter 12: BPM as an Enterprise Capability.......................................................................................63
12.1. Barriers to BPM Success...........................................................................................................63
12.2. The Six Success Factors of BPM Maturity.................................................................................64
12.3. Measuring Process Maturity and BPM Maturity......................................................................69
, Chapter 1: Introduction to Business Process
Management
Business process management the art of science of overseeing how work is performed in an
organization to ensure consistent outcomes and to take advantage of improvement opportunities. It
about managing the entire change of events, activities and decisions that ultimately add value to the
organization and its customers.
Processes: chains of events, activities, and decisions
1.1 Processes everywhere
Typical examples of processes that can be found in most organizations include:
- Order-to-cash: a type of process performed by a vendor, which starts when a customers
submits an order to purchase a product or a service and ends when the customer has
received it and the customer has made the corresponding payments. It encompasses
activities related to purchase order verification, shipment (for physical products), delivery,
invoicing, payment receipt, acknowledgement.
- Quote-to-order: it precedes an order-to-cash process. It start from the point when a supplier
receives a Request for Quote (RFQ) from a customer and ends when the customer in question
places a purchase order based on the received quote. From that point on order-to-cash.
Combination of these two → Quote-to-cash
- Procure-to-pay: starts when someone in an organization determines what a given product or
service needs to be purchased. It ends when the product or service has been delivered and
paid for. Activities like: obtaining quotes, approving the purchase, selectin a supplier, issuing a
purchase order, receiving the goods and paying the invoice.
- Issue-to-resolution: start when a customer raises a problem or issue (a complaint for
example). The process continues until the customer, the supplier, or both of them agree that
the issue has been resolved. A variant of this process → insurance companies, where the
have to deal with claims → claim-to-resolution.
- Application-to-approval: starts when someone applies for a benefit or privilege and ends
when the benefit or privilege in question is either grander or denied. For example,
government agencies, citizens apply for building permits.
The way process are designed and performed affects both
- Quality of service that customers perceive
- Efficiency with which services are delivered
1.2 Ingredients of a Business Process
Events: things that happen automatically and have no duration
Activities: takes time. Refer to both fine-grained or coarse grained unites of work.
Task: when an activity is simple and can be seen as one single unit of work. → fine-grained unit of
work performed by a single process participant.
Decision points: points in time when a decision is made that affects the way the process is executed.
Processes also involve:
- Actors: human actors, organizations, software system (action on behalf of human actors or
organizations).
Internal actors: operate inside the organization.
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