Bpm nuts & bolts

Business Process Management Nuts and Bolts

Murali Darapureddy

Contents

1 What is BPM ?

Industry Areas that need BPM

BPM Flavors

Components description

3

4

7

2 Why do you need BPM ?

BPM Life cycle

5

BPM Product suite components & Architecture 6

What is BPM ?

BPM is an endeavor that automate, execute and monitor business processes from beginning to end for connecting people to people, applications to applications and people to applications across different functional areas, imposing appropriate Rules, responsibilities, approval levels, SLAs, communications, escalations, etc

Why do you need BPM ?

Do your processes cross departmental and organizational boundaries making ownership responsibilities less clear ?

BPM maps inter-departmental or inter-organizational relationships clearly modeling the ownerships and accountabilities

Do you have process inefficiencies due to lack of accountability and clear ownership ?

BPM suites enable a way to configure who is responsible for what

Are you worried about employees inconsistently completing assignments

BPM suites encapsulates best practices and enforce management policies using a built in rule engine

Why do you need BPM ? ( Continued.. 2 )

Do you fear that your processes are not adapting to changing business requirements and hence lacking the agility

BPM suites enable in-flight process modifications so that managers can change the business processes and underlying rules very quickly

Do your processes frequently involve documents and forms as well as other structured and unstructured content ?

BPM suites ship with documentation and forms management capabilities

Do you lack clear, measurable, metrics for gauging for employee performance ?

BPM suites provide real time analytics capabilities for assessing task completion time and other performance metrics

BPM Benefits in Nutshell

Streamline Operations & Processes

Improved Operational efficiency

Compliance and Control

Create accountability in processes

Agility / Facilitate change

Drive policies, practices and business constraints

End to End performnace visibility and Optimizaiton

Business Process Management System Life Cycle

Industry areas that need BPM

Health Care Case Management Admittance processes Compliance with federal and state regulations Managing physician productivity Streamlining customer support services Clinical trails management Case Report form ( CRF ) routing and tracking HIPPA and patient protections compliance FDB & IRB regulatory monitoringContract research and alliance management

Travel and Hospitality Reservations and back office automation

Cross process top percentile loyalty Scheduling and capacity Management Customer call center operations

Industry areas that need BPM ( Continued .. 2)

Pharmaceutical Industry Clinical Trails Management Case Report form ( CRF ) routing and tracking Mutli-channel client service Event marketing Logistics

Government Case Management / Audit Management eGrants Budget Approvals Dispute and Exception Management Call Center Services

Industry areas that need BPM ( Continued .. 3)

Financial Services Loan Origination Account Opening Statement Presentment Deal Management Credit and Suspense Mgt Automated correspondence and advice generation Payments investigations and exception Mgt Securities Investigations and exception Mgt

Insurance New business acquisition Underwriting Claims processing Event based marketing All contact center operations

Industry areas that need BPM ( Continued .. 4)

Retail Order Management Inventory and Replenishment Management Supply chain optimization Sales promotion management Customer call center operations

Manufacturing Product Life cycle management Procurement Vendor Management Supply chain management Certifications compliance ( such as ISO 9000 )

Legal Matter Management Case Management

• Integration Intensive BPM• Automating processes that integrate systems and applications. Few exceptions and limited human participation. Often used for externally

focused processes linking two or more enterprises or systems • Typical features that are required for this flavor include, transaction

management, process modeling, trade partner management, embedded Portal Capabilities and SOA capabilities

• Typical process examples that need this flavor are – Any processes that requiring integration between multiple systems with number of checks and rules while in the integration , order fulfillment etc

BPM Flavors – Integration Intensive

• People Intensive BPMs• Strong focus on automating people intensive activities such as servicing

customers, operating call centers, managing sales operations, Supporting field based agents, employee services and customer claims and applications

• Typical features that are required for this flavor include, Tasks List / Work List capabilities, strong UI development, SLA, Work routing and bulk processing capabilities, integration with third party portals and e-forms

• Typical process examples that need this flavor are – employee onboarding, claims processing, exception handlings, customer service request handling and IT Requests etc

BPM Flavors – People Intensive

• Decision Intensive BPMs• Strong focus on automating processes that require employees to make

mission-critical decisions using information and business rules. Also to automate the processes in which the decision criteria and the process rules change frequently.

• Typical features that are required for this flavor include, business rules management, procedural and declarative business rules, business analytics, nit just the process analytics , integration with BI tools etc

• Typical process examples that need this flavor are – mortgage loan origination, insurance underwriting, retail inventory management, sales promotions and rebates etc

BPM Flavors – Decision Intensive

• Document Intensive BPMs• Strong focus on automating processes that require to track and obtain

information from documents. • Typical features that are required for this flavor include, documentation

imaging, document management, record management, task list / work list, portal integration with desktop applications and event management for changes to the documents

• Typical process examples that need this flavor are – Paper based claims processing, contract management, proposal management, mortgage loan origination etc

BPM Flavors – Document Intensive

BPM Product Architecture and Components

• Process Engine • Process Engine executes the business processes defined by the Process

Modeler. • Process Models are stored in the database and the process is run and move

forward by Process Engines in accordance with action from external people and systems

• Process Engine executes the processes, escalating unresolved issues, ensuring process integrity, and collecting data necessary to resolving exceptions as they occur.

• Process Engine also provides a complete history and audit trail of user interactions, which can be used to improve processes and retaining best practices.

BPM Components – Process Engine

• Process Modeler • Business process modeling tools provide business users with the ability to

model their business processes, so that the these processes can be executed by process engines

• Typical Process Modeler capabilities should include • Ability to model collecting data from forms• Ability to set thresholds and send alerts or take automated actions• Ability to model required approvals and verifications• Apply Business Rules in the process paths• Input and Retrieve Data from ODBC Databases within process paths • Interact with e-mail within process paths• Ability to build process by drag and drop of components• Ability to reuse process templates across multiple functions

BPM Components – Process Modeler

• Business Rule Engine • Acts as central repository of the business rules at your organization / division

level • Promotes high reuse of rules across different LOBs and divisions • Business rules from rule repository are frequently called and used in the

process flows. • Typical Business Rule Engine capabilities should include

• Ability to define the rules in the form based configurations • Ability to delegate rules to the managers so as they make in flight

changes at business run times • Versioning of rules • Rule bulk change and movements utilities.

BPM Components – Business Rule Engine

• Rule Categories that a BRE handles• Inferred Knowledge Rules

• Examples : If a Customer Spending per month is > $5K and the average account balance is >$20K, Customer = “Gold”

• Computation Rules • Examples : Examples include definitions, declarative and procedural

computations ( Ex : Salary = Basic + HRA + Travel Allowance )• Constraint / Guidelines / Process Rules

• Examples : Decisions in the flows, form validations, routing rules, claims auto adjudication rules, exception handling rules etc

• Event Correlation Rules• Examples : SLA management, Threshold value management ( Ex : Notify

the distributor for replenishment when the stock level comes down below the stock level

BPM Components – Business Rule Engine ( Continued)

• Business Activity Monitoring • BAM provides performance management dashboards • Graphs to show metrics versus their target • Provides Business Process visibility for managers • They also provide real-time alerts and automated escalation procedures

when the KPIs go off the track• Actual performance data can be fed back to refine process models and begin

a new cycle of incremental process improvement.

BPM Components – Business Activity Monitoring

Thank You

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