Business Process Management Nancy Bahrami MBA 731 11/05/07 Agenda • What is Business Process Management • BPM Lifecycle • BPM Systems/Software • BPM – A Step Further BPM Defined • Management model that manages an organization’s processes and the interactions between them over time. • Improves processes – More Effective – More Efficient – More capable of adapting to an ever-changing environment • Different than Business Process Reengineering! BPM Lifecycle Processes Link: People to People  Applications to Applications  People to Applications BPM Lifecycle 1. Capture/Document Current Processes R Y G BPM Lifecycle 2. Design ‘to-be’ process 3. Modeling o 4. Running ‘what-if’ scenarios Execution o Develop or purchase application to execute the required steps of the process BPM Lifecycle 5. Monitoring o o Track individual processes Key Performance Indicators: • • • o Example: Determine the state of a customer order: • • • o Cycle time Defect rate Productivity Ordered arrived Awaiting delivery Invoice paid Allows for operational problems to be identified and corrected BPM Lifecycle 6. Optimization o Using information from Modeling & Monitoring phases to identify: • • Bottlenecks Potential areas for cost savings BPM Systems/Software o Process Designer — Analyzes and models a process, and assigns logic to it o Process Engine — Executes the actual process flow o Rules Engine — Manages the flow of information and activities within a process o Process Analytics — Provides continual feedback on the process BPM Systems/Software BPM – A Step Further • Improves processes leading to: – Profitability – Competitive Advantage • Used to achieve Six Sigma BPM – A Step Further • Used across organizations – Sourcing & Operations • Procurement, purchasing, and supplier management – Finance • Expense reimbursement, financial analysis and planning – Human Resources • Employee Lifecycle – New Product Development • Product development lifecycle – Sales & Marketing • Marketing strategy & sales processes BPM – A Step Further • Used across all industries: – Financial Services & Insurance • Regulatory compliance, financial reporting, capital request approval, and budget management – Government • Streamline the business of government and address challenges such as budgetary constraints, policy changes, and public demands for greater accountability – Energy • Enables utility and energy providers to control spending, improve supplier management, and greatly reduce the procurement cycle time – Healthcare & Pharmaceuticals • HIPAA compliance, customer service, product development, supply-chain management, and brand management. – Manufacturing & Business Operations • Manage and automate their sourcing and operations processes, expedite the product development process, and provide solutions for support functions