The Process Of Bpm

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Technology

Published on February 16, 2009

Author: gvanantwerp

Source: slideshare.net

Description

A webinar I gave back in 2007 on business process management.

THE PROCESS OF BPM George Van Antwerp April 6, 2007

BUSINESS PROCESS MANAGEMENT IS… TECHNOLOGY ENABLED CONTINUOUS IMPROVEMENT A strategy A management philosophy An approach A technique Enabled by technology FOR Reducing cycle time Building agility Increasing process visibility Improving performance Increasing consistency

A strategy

A management philosophy

An approach

A technique

Enabled by technology

Reducing cycle time

Building agility

Increasing process visibility

Improving performance

Increasing consistency

AS TOYOTA POINTED OUT, PROCESS CAN BE A COMPETITIVE ADVANTAGE “ We get brilliant results from average people managing brilliant processes. We observe that our competitors often get average (or worse) results from brilliant people managing broken processes.” Sources: “Decoding the DNA of the Toyota Production System,” Steven Spear and Kent Bowen, Harvard Business Review , September-October 1999

“ We get brilliant results from average people managing brilliant processes. We observe that our competitors often get average (or worse) results from brilliant people managing broken processes.”

Sources: “Decoding the DNA of the Toyota Production System,” Steven Spear and Kent Bowen, Harvard Business Review , September-October 1999

DETERMINE YOUR BASELINE AND OBJECTIVES 0 1 2 3 4 5 Acknowledge Business Inefficiencies Directly link process model and rules to execution Process Automation and Control Compare alternatives driven by various optimization techniques in real time Craft process automation and control across the enterprise, customers and trading partners Interprocess Automation and Control Create a business performance framework that links business valuation (near real time) to process execution Enterprise Valuation Control Innovate new businesses, products and services through agile business architecture Agile Business Structure Model and analyze business processes Process-Aware Generally, where companies are today Source: Gartner BPM Maturity Model Measure and monitor business activities

CREATING A BPM SOLUTION Continuous Improvement Strategy Adapted from Gartner graphic on BPM Organizational Change Management Measure Model Analyze Prioritize Control Automate BPM Improve Pilot

PRIORITIZE WHERE TO START Revenue Cost Customer Satisfaction Cycle Time Compliance Large numbers of process steps, integration points, exceptions, transaction, participants and/or organizations A short window for development & deployment Frequent process change and/or high number of exceptions Need for process level metrics and ability to audit process transactions Distressed Shipments Employee On boarding Automated Returns Benefits Administration SOX Compliance Billing Disputes Incentive Compensation Management PO Mgt / Approval Manager Self Service Invoice Reconciliation Source: modified based on Lombardi Software slide Product Development and Mgmt ITSM Channel Mgmt Procurement Proposal Mgmt Process Complexity Process Impact L H

Revenue

Cost

Customer

Satisfaction

Cycle Time

Compliance

Large numbers of process steps, integration points, exceptions, transaction, participants and/or organizations

A short window for development & deployment

Frequent process change and/or high number of exceptions

Need for process level metrics and ability to audit process transactions

Distressed Shipments

Employee On boarding

Automated Returns

Benefits Administration

SOX Compliance

Billing Disputes

Incentive Compensation Management

PO Mgt / Approval

Manager Self Service

Invoice Reconciliation

Product Development and Mgmt

ITSM

Channel Mgmt

Procurement

Proposal Mgmt

DEFINE YOUR MEASURES AND CAPTURE YOUR CURRENT STATE Identify key drivers (revenue, cost, market share) What drives those metrics Look at correlation between metrics Based on the Balanced Scorecard TM framework. Financial Customer Internal / Business Process Learning & Growth Mail Profit Customer Satisfaction Mail Rxs Days-in- House Plan Design Alignment 1 st Call Resolution Voluntary Turnover Benefit Education Employee Satisfaction

Identify key drivers (revenue, cost, market share)

What drives those metrics

Look at correlation between metrics

MODEL YOUR PROCESS - SIPOC Suppliers Inputs Process Customers Requirements MD Patient Client / Payor Call center agent RPh Pharmacy tech Robotics Pharma Order entry clerk Step 1: Get Rx and payment Outputs Step 2: Enter order into system Step 3: Check eligibility and patient info Step 4: Resolve exceptions See Below Prescription Drug monograph Savings opportunity Client bill Patient Client / Payor MD USPS Pharma 2 days-in-house 1 st call resolution 99.999% accuracy Lowest cost drug Step 5: Ship Rx to patient Valid prescription Patient information Payment Drugs Mailing supplies

MD

Patient

Client / Payor

Call center agent

RPh

Pharmacy tech

Robotics

Pharma

Order entry clerk

See Below

Prescription

Drug monograph

Savings opportunity

Client bill

Patient

Client / Payor

MD

USPS

Pharma

2 days-in-house

1 st call resolution

99.999% accuracy

Lowest cost drug

Valid prescription

Patient information

Payment

Drugs

Mailing supplies

ANALYZE AND IMPROVE TWO DIME FRAMEWORK FOR REDUCING MUDA Transport Waiting Overproduction Defect Inventory Motion Extra Processing Source: Image from Lombardi Software Source: TWO DIME framework from The Power of Process by Kiran Garimella

Transport

Waiting

Overproduction

Defect

Inventory

Motion

Extra Processing

AUTOMATE AND PILOT Reduces Time to Develop New Process-Based Applications with Simple Drag-and-Drop Design Enables Organization to Rapidly Apply Changes to Rules and Process Flow Extensible and Based on a Service Oriented Architecture for Rapid Integration into Existing Systems Simple to Use for Non-Developers and Standards Based Source: Appian

Reduces Time to Develop New Process-Based Applications with Simple Drag-and-Drop Design

Enables Organization to Rapidly Apply Changes to Rules and Process Flow

Extensible and Based on a Service Oriented Architecture for Rapid Integration into Existing Systems

Simple to Use for Non-Developers and Standards Based

BUSINESS ACTIVITY MONITORING FOR CONTROL

WHAT IS DIFFERENT Yesterday Today Focus on Current State No Yes Solutions Paper Technical Governance Functional End-to-end Process Project Duration 6-24 months 90-120 days IT and Business Collaboration Optional Critical Results BPR = Layoffs BPM = Asset Optimization Implementation Methodology Waterfall / SDLC Agile / RAD Technology EAI / Workflow BPM

CONCLUSIONS Business Process Management is part strategy and part technology You have to focus on end-to-end processes Agility is key – iterate Change your framework Use BPM versus Visio Process abstraction Link Six Sigma / Lean and BPM Everything is a process

Business Process Management is part strategy and part technology

You have to focus on end-to-end processes

Agility is key – iterate

Change your framework

Use BPM versus Visio

Process abstraction

Link Six Sigma / Lean and BPM

Everything is a process

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