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1 May 22-24, 2007 Washington Dulles Hilton The Business Transformation Conference Chris Lawrence Business Architecture Consultant Old Mutual South Africa Session Title: A Model for Process and Transformation Welcom e Welcome to Transformation and Innovation 2007 The Business Transformation Conference
44

A Model for Process Transformation

Jan 15, 2015

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This session introduces some of the principles behind a proposed Business Process Management (BPM) reference model, equivalent to the Workflow Management Coalition (WfMC) Workflow Reference Model.
There is signifi cant holistic advantage in deriving the BPM reference model not from workflow or BPM technology, but from logical and architectural analysis of what it is to be a business process. The same model
can then support technology, operational process management and business transformation. The principles address fundamental questions like:
• What is a business process? Where does it start and stop? What are its logical components?
• How can one process control structure cover both manual and automated functionality?
• Where do rules fit in?
• How to ensure process models align with data models?
Does process thinking mean rethinking requirements analysis, solution design and IT engagement and delivery models?
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Transcript
Page 1: A Model for Process Transformation

1 May 22-24, 2007

Washington Dulles HiltonThe Business Transformation Conference

Chris LawrenceBusiness Architecture ConsultantOld Mutual South Africa

Session Title:A Model for Process and Transformation

WelcomeWelcome

to Transformation and Innovation 2007 The Business Transformation Conference

Page 2: A Model for Process Transformation

2 May 22-24, 2007

Washington Dulles HiltonThe Business Transformation Conference

A Model for Process and Transformation

WfMC BPM and Workflow Handbook 2007– Paper:

• Business Process Architecture and the Workflow Reference Model

– Argument:• Derive BPM reference model not from workflow

or BPM technology, but from logical analysis of the business process

Page 3: A Model for Process Transformation

3 May 22-24, 2007

Washington Dulles HiltonThe Business Transformation Conference

A Model for Process and Transformation

Draft BPM reference model– Logical analysis of the business process– Advantages:

• Same model can support:– Technology– Process management– Transformation

– Analogy:• Relational data model

Page 4: A Model for Process Transformation

4 May 22-24, 2007

Washington Dulles HiltonThe Business Transformation Conference

WHAT versus HOW

Analogy:– Logical data model v physical data design

Process rules even if no systems were used

Process features relating to a

specific implementation

Page 5: A Model for Process Transformation

5 May 22-24, 2007

Washington Dulles HiltonThe Business Transformation Conference

Process analysis, process modelling, process mapping, process design, process improvement...

Receiveswitch

requestMedium?

SYSXValidate request

Paperor fax

SYSXEnter request

WFRoute for checking

WFCheck request

WFValidate scheme

member, populatequeue and move

to MSC

SYSXCheck request

Switch tocash

Web

Operational procedure design around given system components

‘Process’ = linking components together (procedurally or

automatically or both)

This is HOW not WHAT

Page 6: A Model for Process Transformation

6 May 22-24, 2007

Washington Dulles HiltonThe Business Transformation Conference

Draft BPM reference model

Objectives:– Understand process as WHAT– To get best available HOW

Initial scope:– ‘Administration’:

• Processing orders & applications, granting approval, carrying out instructions …etc etc

• Sales, financial services, central & local government, education, travel, tourism …etc etc etc

Page 7: A Model for Process Transformation

7 May 22-24, 2007

Washington Dulles HiltonThe Business Transformation Conference

Administration

Service to ‘end-customer’– Implicit or explicit ‘request’

Rule-governed– Right and wrong ways– Standard v exceptions– Sequence; completeness

Increasingly supported by computer systems– People deal with exceptions and special cases– People make rules rather than follow them

Page 8: A Model for Process Transformation

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Washington Dulles HiltonThe Business Transformation Conference

Administration

– Content & rules can be treated abstractly– Essence survives translation into different

formats (brain, paper, digital…)– Eg life insurance policy:

legal contract between a financial organization and

another person or organization, in relation to one or more human lives

Almost everything about it and its creation can be treated abstractly - in a

translatable (eg digitizable) way

Cannot say the same about the

process of making an armchair

Page 9: A Model for Process Transformation

9 May 22-24, 2007

Washington Dulles HiltonThe Business Transformation Conference

Administration

Concrete object– Cannot be

translated into another form and stay an armchair

Life insurance

policy

Abstract entity– Can be translated

into another form– Only has to exist

as hard copy if rules say so

Page 10: A Model for Process Transformation

10 May 22-24, 2007

Washington Dulles HiltonThe Business Transformation Conference

Process

ProcessInput(s)Input(s)Output(s)

Familiar model

Page 11: A Model for Process Transformation

11 May 22-24, 2007

Washington Dulles HiltonThe Business Transformation Conference

Process

Order process

Input(s)Received goods

Business process

Customer order

Page 12: A Model for Process Transformation

12 May 22-24, 2007

Washington Dulles HiltonThe Business Transformation Conference

Process

Addition process

2

3

5

Calculation process

Page 13: A Model for Process Transformation

13 May 22-24, 2007

Washington Dulles HiltonThe Business Transformation Conference

Process

PhotosynthesisWater

Carbon dioxide

Sunlight

Glucose

Oxygen

Natural process

Page 14: A Model for Process Transformation

14 May 22-24, 2007

Washington Dulles HiltonThe Business Transformation Conference

Process

ProcessInput(s)Input(s)Output(s)

This model is generic– Nothing special about business process

Page 15: A Model for Process Transformation

15 May 22-24, 2007

Washington Dulles HiltonThe Business Transformation Conference

Process

Process 1

Input 1

Output 1

Page 16: A Model for Process Transformation

16 May 22-24, 2007

Washington Dulles HiltonThe Business Transformation Conference

Process

Process 1

Input 1

Output 1

Input 2

Process 2

Input 3

Output 2

Output 3

=

Page 17: A Model for Process Transformation

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Washington Dulles HiltonThe Business Transformation Conference

Process

Process 1

Input 1

Output 1

Input 2

Process 2

Input 3

Output 2

Output 3

Input 4

Process 3

Output 4

=

Page 18: A Model for Process Transformation

18 May 22-24, 2007

Washington Dulles HiltonThe Business Transformation Conference

Process

Process 1

Input 1

Output 1

Input 2

Process 2

Input 3

Output 2

Output 3

Input 4

Process 3

Output 4

Page 19: A Model for Process Transformation

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Washington Dulles HiltonThe Business Transformation Conference

Process

Input 1

Input 3

Process 4 (1+2+3)

Output 4

Output 3

Page 20: A Model for Process Transformation

20 May 22-24, 2007

Washington Dulles HiltonThe Business Transformation Conference

Process

ProcessInput(s)Input(s)Output(s)

This model is also indefinite– Where does the process start and stop?

– For a business process we need something more precise

Page 21: A Model for Process Transformation

21 May 22-24, 2007

Washington Dulles HiltonThe Business Transformation Conference

Business process

Process Output(s)Input(s)

ProcessRequest Outcome

For a business process we need to identify:– A particular kind of input– A particular kind of output

Request is for the outcome Outcome = thing requestedRequest = entity changing business status through the processOutcome = last business status change

BPMN symbol for ‘data object’

BPMN symbol for ‘process’ or ‘process

component’

Page 22: A Model for Process Transformation

22 May 22-24, 2007

Washington Dulles HiltonThe Business Transformation Conference

Business process

ProcessRequest Outcome

Unambiguous start point Unambiguous

end point

At individual instance level

Paradigm case: request is from a customer (external or internal)

Paradigm case: outcome is for that customer

Achieving the requested outcome will involve following rules

‘Process’ is not arbitrary:starts with the request & =

everything which must be done to achieve the requested outcome

Page 23: A Model for Process Transformation

23 May 22-24, 2007

Washington Dulles HiltonThe Business Transformation Conference

Business process

ProcessRequest OutcomeProcessRequest Requestedoutcome

Alternativeoutcome(s)

The business process will involve following rules– Rules may or may not be satisfied

– Requested outcome may not be achieved:• Eg ordered goods unavailable; loan application unsuccessful; …

– But just like the requested outcome, any alternative outcome will also be correct in terms of the rules of the process

Page 24: A Model for Process Transformation

24 May 22-24, 2007

Washington Dulles HiltonThe Business Transformation Conference

Business processBusiness process

Order process

Input(s)Received goods

Customer order

Order Order process

+

Despatchadvice

Page 25: A Model for Process Transformation

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Washington Dulles HiltonThe Business Transformation Conference

Subprocess

– A business process can normally be broken down into a finite series of subprocesses…

Request Process

+

Outcome OutcomeRequestSubprocess

1+

Subprocess2+

Subprocess3+

Takeorder

+

Checkcreditrating

+

Matchagainststock

+

Authoriseorder

+

Despatchorder

+

Checkorder

+

Order process

Start Stop

Page 26: A Model for Process Transformation

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Washington Dulles HiltonThe Business Transformation Conference

Subprocess

OutcomeRequestSubprocess

1+

Subprocess2+

Subprocess3+

Fixed pattern: sequential; parallel…

Subprocess 1, subprocess 2 etc can be described in purely business terms, eg

‘authorise order’, ‘match against stock’. Subprocesses would need to happen

whatever system was used, or whether a system was used at all.Boundaries often =

hand-offs/breakpoints needing internal/external interaction, eg

input or authorisation.

Boundaries set by business not system constraints.

Boundaries often correspond to bottlenecks, eg x cases awaiting authorisation.

Subprocesses not arbitrary collections of actions, nor events in terms of a

particular computer system:Eg not Run job C123 but Check

customer’s credit rating.

Page 27: A Model for Process Transformation

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Washington Dulles HiltonThe Business Transformation Conference

Subprocess

Takeorder

+

Checkcreditrating

+

Matchagainststock

+

Authoriseorder

+

Despatchorder

+

Checkorder

+

Order process

Start Stop

A subprocess is not:– An arbitrary set of actions

– A piece of functionality

A subprocess is:– A transition from one business status to the next

In this example order process:– ‘Check credit rating’ = transition from ‘awaiting Check credit rating’

to ‘awaiting Match against stock’

Page 28: A Model for Process Transformation

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Washington Dulles HiltonThe Business Transformation Conference

Where are we?

So far:– Business process

• Request• Outcome

– Subprocess

Next:– Business rule– Task

Page 29: A Model for Process Transformation

29 May 22-24, 2007

Washington Dulles HiltonThe Business Transformation Conference

Business rule

Takeorder

+

Checkcreditrating

+

Matchagainststock

+

Authoriseorder

+

Despatchorder

+

Checkorder

+

Order process

Start Stop

Rules about what subprocesses

Rules about sequence of

subprocesses

Rules about what happens inside a

subprocess

Subprocess ‘Check order’:

All orders must be for a known customer

Items must be identifiable as goods the business trades in

Quantities must be specified

…etc.

Page 30: A Model for Process Transformation

30 May 22-24, 2007

Washington Dulles HiltonThe Business Transformation Conference

Business rule

NOT:– Process and subprocesses come first– Then decide what the rules are

BUT:– Rules come first– Definition of process = rule

• Where process starts and stops

– Analysis into subprocesses = rules– Some rules fit inside other rules, eg

• Rule that you have to achieve something

• Rules about what to do to achieve it

x

...which takes us to the concept of

task

Page 31: A Model for Process Transformation

31 May 22-24, 2007

Washington Dulles HiltonThe Business Transformation Conference

Task

Takeorder

+

Checkcreditrating

+

Matchagainststock

+

Authoriseorder

+

Despatchorder

+

Checkorder

+

Order process

Start Stop

Rules about what happens inside a

subprocess

Subprocess ‘Check order’:

All orders must be for a known customer

Items must be identifiable as goods the business trades in

Quantities must be specified

…etc.

Page 32: A Model for Process Transformation

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Washington Dulles HiltonThe Business Transformation Conference

Task

Take order

+

Check creditrating

+

Match againststock

+

Authoriseorder

+

Despatchorder

+

Check order

+

x

OKNot OK

Check each order against business

rules

Valid orders can pass to the next

subprocess

But what about invalid orders?

Page 33: A Model for Process Transformation

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Washington Dulles HiltonThe Business Transformation Conference

TaskAll the work of the subprocess is contained within the tasks.

‘Subprocess’ = container for the tasks.

Checkcreditrating

+

Matchagainststock

+

Authoriseorder

+

Despatchorder

+

Check order

Automaticcheck

Manualcorrecterrors

Takeorder

+

All orders go through the

automatic check task, which runs business rules

Some orders (perfect ones) only need to go through

the automatic task

Others (imperfect ones) are routed by the automatic task

to the manual task

Manual task to correct the errors

The manual task then routes them back to the automatic

task for rechecking

Page 34: A Model for Process Transformation

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Washington Dulles HiltonThe Business Transformation Conference

Match againststock

+

Authoriseorder

+

Despatchorder

+

Check credit rating

Automaticcredit check

Manual creditcheck

Automaticfollow up

Manualrecord reply

meets criteriaof 3, 4 or 5approved

(rule 3)

pass1 or 2

written to customer(rule 4 or 5)

Checkorder

+

Take order

+Task

Example of a more complex task structure for subprocess: Check

credit rating

But the principle is the same: tasks & routing derived from applying

rules to possible orders

Page 35: A Model for Process Transformation

35 May 22-24, 2007

Washington Dulles HiltonThe Business Transformation Conference

Task

Apply the concept of a

Business ruleto the

Routingneeded to achieve the work of a

Subprocessand you get the concept of a

Task

Flow at subprocess level:

- From logical sequencing of process rules

- Ignores variety of individual cases

Flow at task level:

- From logic & logistics of applying process rules to variety of individual cases

Page 36: A Model for Process Transformation

36 May 22-24, 2007

Washington Dulles HiltonThe Business Transformation Conference

Draft BPM reference model

Process architecture approach:– Three levels

• A business consists of a finite set of processes• A process consists of a finite set of subprocesses• A subprocess consists of a finite set of tasks

– Result = process model• Derived from

– Business rules

applied to

– Business data entities

Page 37: A Model for Process Transformation

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Washington Dulles HiltonThe Business Transformation Conference

Process model Business (area)

Subprocess1.2A

M

M

Subprocess1.1

Subprocess 1.3

A

Subprocess2.1+

Subprocess2.2+

Subprocess2.3+

Subprocess2.4+

Subprocess3.1+

Subprocess3.2+

Subprocess3.3+

Subprocess3.5+

Subprocess3.4+

Process 1 Process 2 Process 3 …etc

+

Model can also show how processes interact with each other:

One may initiate anotherOne may terminate anotherOne may determine outcome of another…etc

Page 38: A Model for Process Transformation

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Transformation

AS IS TO BE

Page 39: A Model for Process Transformation

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Washington Dulles HiltonThe Business Transformation Conference

Transformation

TO BEAS ISAS IS TO BE

At physical level:

HOWCurrent solution, using

current systems, people, partners etc

At physical level:

HOWProposed solution, using

proposed systems, people, partners etc

Both are HOW not WHAT:

Page 40: A Model for Process Transformation

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Washington Dulles HiltonThe Business Transformation Conference

Transformation

Need a stepping stone:

AS IS TO BELogical model

Page 41: A Model for Process Transformation

41 May 22-24, 2007

Washington Dulles HiltonThe Business Transformation Conference

Transformation

Logical model= step between TO BE and AS IS

• Implicit or explicit• = AS IS with all contingent constraints removed

(Abstract away everything that could be otherwise)

• Logical model can only be realised in physical terms

TO BE:= best available/achievable implementation of logical

model

Page 42: A Model for Process Transformation

42 May 22-24, 2007

Washington Dulles HiltonThe Business Transformation Conference

Logical model

Subprocess1.2

A

M

M

Subprocess1.1

Subprocess 1.3

A

Subprocess2.1+

Subprocess2.2+

Subprocess2.3+

Subprocess2.4+

Subprocess3.1+

Subprocess3.2

+

Subprocess3.3

+

Subprocess3.5

+

Subprocess3.4

+

Business (area)

Process 1 Process 2 Process 3 ...etc

= Process model

Account

AddressMember

Organization

OrgCategory

Category

DocTypeRule

DocumentType

Document Membership

Frequency

PaymentMethod

AccountType

AccountTrans

TransType

OrgTransType

+ Data model

BPM reference model = principles for developing a logical process model aligned with the logical data model

To support: business analysis; system selection & design; transformation; change management; process management; ...etc

Page 43: A Model for Process Transformation

43 May 22-24, 2007

Washington Dulles HiltonThe Business Transformation Conference

A Model for Process and Transformation

Draft BPM reference model– Logical analysis of the business process– Advantages:

• Same model can support:– Technology– Process management– Transformation

– Analogy:• Relational data model

More than an analogy

Page 44: A Model for Process Transformation

44 May 22-24, 2007

Washington Dulles HiltonThe Business Transformation Conference

Thank YouThank YChris LawrenceBusiness Architecture ConsultantOld Mutual South Africa

Contact Information:+27 76 610 [email protected]

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