© 2007, Business Process Trends www.bptrends.com 1
Does the OMG Have Any Business Getting Involved in
Business Process Management?
Paul Harmon
Executive EditorBusiness Process Trends
OMG BPM Think Tank, Burlingame, CA July 2007
© 2007, Business Process Trends www.bptrends.com 2
Trends in Business Process Management
• What is BPM• Enterprise Level Concerns• Process Level Concerns• Implementation Level Concerns• Summary
© 2007, Business Process Trends www.bptrends.com 3
What is Business Process Management?
BPM is, at the moment, the generic term for a corporate concern
with how work gets done and with all aspects of changing or
improving how work gets done
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Business Process Change is a Perennial Management Concern
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What Do People Think BPM Means
100%348Total
54%187A management philosophy that focuses on organizing the business around its business processes
23%79A set of software technologies for automating and managing runtime business processes
6%21A cost-saving initiative focused on increasing productivity
18%61An approach to process redesign or improvement
Which of the following best describes what BPM means to you?
BPTrends Survey: July 2007. 356 Responses from throughout world.
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BPM Requires an Enterprise Perspective
Enterprise Level
Business Process Level
Implementation Level
.
Human Resource Development
Job DesignTraining Knowledge Management
Specific Activity
Business Process
Physical Plant and
IT Development
BPMS, BAMProcess Automation
Hardware Used
A Mix of IT and HR
Development
Architecture, Measurement, Management
Process Change Projects
ERP Implementation
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Trends in Business Process Management
• What is BPM• Enterprise Level Concerns• Process Level Concerns• Implementation Level Concerns• Summary
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Enterprise Level Concerns
Enterprise Level
Process Level
Implementation Level
• Change strategy or core business model (Reengineering)
• Coordinate & prioritize process change efforts• Standardize business processes throughout the
company/world• Create BPM group or Center of Excellence to lead &
standardize efforts• Audit company to determine where it ought to focus
its process change efforts• Create a business process architecture• Create a process performance measurement system• Create a process management / governance system
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Business Frameworks are Instant Architectures
• The Supply Chain Council’s SCOR• The best example of a popular horizontal BP
architecture is provided by the Supply Chain Council’s SCOR framework
• Created in past 5 years by consortium of some 700 companies
• Defines a top-down approach to organizing the BP architecture of a corporate supply chain process
• www.supply-chain.com
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SCOR MODEL: Level 1
SupplyChain
DeliverMakeSource
Plan
Return
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Other Business Process Frameworks
• Value-Chain Group’s VRM• TeleManagement Forum’s eTOM• ACORD Insurance Framework (Being developed)• OMG Finance Task Force Framework (Being developed)• OCG’s ITIL (Info. Tech. Infrastructure Library)• ISACA’s COBIT (Control OBjectives for IT)
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Michael Porter’s Value Chain M
arginS
uppo
rt P
roce
sses
Cor
e B
usin
ess
Pro
cess
es
From Michael Porter, Competitive Advantage, Harvard, 1985
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An Aside on the Meaning of Process
Value Chain
Business Process Business Process Business Process
ProcessProcess Process
Sub-Process Sub-ProcessSub-Process
Sub-Sub-Process
Activity Activity
Sub-Sub-Process
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Value Chains vs. Value Nets
• Value Chains tend to emphasize a set way of doing things that occur within a single enterprise
• The emphasis on Value Chains is an emphasis on tight integration (fit) and efficiency
• Value Nets (which IBM terms Component Business Models) emphasize that some companies assemble business processes in response to changing customer requests
• The emphasis on Value Nets is on flexibility and the ability to respond differently in different situations
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IBM’s Component Business Model Architecture
Stra
tegy
Tact
ics
Ope
ratio
ns
Channel Strategy
Financial PlanningMarketing Management
Information Systems
Human Resources
Supply Chain Management
Manage Customers Merchandising Supply Chain Administration
Strategic Planning
Alliances
Store Sales
Inventory
Store Display
Store Design Real Estate
Store/Channel Strategy
Customer Relationship Mang.
Customer Satisfaction
Space ManagementVendor Management
Distribution Planning
Customer Accounts
Credit Planning
Finance
Back Office Accting
Procurement
Warehousing
Distribution
Transportation
Store Management
Customer Communications
Customer Support
Inventory
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CMMI - A Business Process Maturity Model
• CMMI – Capability Maturity Model - Integrated• Originally developed by the Software Engineering
Institute at Carnegie Mellon University for the US Dept. of Defense to help them evaluate software contractors
• CMMI is derived from SEI’s original Capability Maturity Model (CMM)
• CMM emphasizes that organizations go through stages• A stage represents the achievement of a set of related
capabilities• In reality organizations don’t go through neatly defined
stages, but it’s a very convenient half-truth
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About 4% of Today’s Companies Are Really Process-Centric
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Core Processes, Support and Management Processes
Business Process (Pack Widget)
“Customer” Process(Ship Widget)
“Supplier” Process(Assemble Widget)
Support Processes(IT, HR)
Day-to-Day Management of the
Pack Widget Process
Work Unit
Senior Management(Processes)
Business Process Group
Management of Project to Improve Work Unit Process
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Level 2 BPMM “Process Areas”
Business Process Maturity Model
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Trends in Business Process Management
• What is BPM• Enterprise Level Concerns• Process Level Concerns• Implementation Level Concerns• Summary
© 2007, Business Process Trends www.bptrends.com 28
Process Level Concerns
• Redesign business processes• Improve business processes• Document business processes• Comply with government reporting requirements• Change company culture so that managers know
how to manage processes effectively• Change company culture so that managers &
employees focus on the need for constant process improvement
• Train business analysts to analyze business problems & generate requirements documentation
• Make process descriptions available on-line and training managers to read process diagrams
Enterprise Level
Process Level
Implementation Level
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Revisiting the MDA Architectural Levels
Abstract Model of a Specific Company's
Process
Concrete Model of a Company Application
J2EE/EJB Profile
EJB code
Business Analysts Create Models of Business Processes
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An BPMN DiagramBooks-OnLine: Order Fulfillment Process
Customer
Company Web Portal
Order System
Exceptions Clerk
Receive Order
Ship Order
Packaging Fill Order
Shipping
Review Order order accepted Send
workorder to shipping
Place Order
order rejected
order incomplete: Ask customer for more information
Recieve Books
Close Order
books
Revise Order
order requires special processing
Re-Review Order
Credit Card Approval Center
Review-Approve Charge
credit card approval
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A Model of Your Customer’s Process
Customer
Your Company
Review Options
Receive Orcer
Revise Order
Search for Sellers
Place Order
Inquire About Order
Exchange Order
Customer visits our Website and downloads
product description
If customer decides to phone for additional information, he/she gets answering system
that routes him/her through 3-4 levels of choices to get to automated answer, or 5 levels to get to a customer representative. (Usually a 6 minutes wait for Cust. Rep.)
Customer visits our Website and enters order and credit card information. Customer
gets email documenting order.
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Trends in Business Process Management
• What is BPM• Enterprise Level Concerns• Process Level Concerns• Implementation Level Concerns• Summary
© 2007, Business Process Trends www.bptrends.com 38
Implementation Level Concerns
• Automate business processes (bpms)• Develop training courses to teach skills required by
new processes or by process changes• Change locations of operations to facilitate
smoother supply chain flows, etc.• Automate day-to-day execution & monitoring of key
business processes (BPMS)• Install business intelligence/analytics to support
real-time monitoring & better managerial decision-making
• Create knowledge management system• Organize an “Enterprise Architecture” to keep track
of IT resources used by organization
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Process is Where Business Managers and IT Meet
What will each bring to the meeting?
© 2007, Business Process Trends www.bptrends.com 40
An Overview of a BPMS Product
Knowledge
Utilities
Engines
Process Modeling
Environment
Rules Engine EAI EngineWorkflow Engine
Middleware/Application Server
Development Environment
Management Environment
Developers
Employees Software Applications
Process Managers
Eg. J2EE Server:
WebSphere
Eg. Windows .NET Server:
BizTalk
Eg. ERP Server: NetWeaver
Specific Rule Sets or
Ontologies
Specific Business Models
Complete Process
Frameworks
BPM Repositories/Databases
Process Monitoring
Environment
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The Range of BPMS Products
• Integration-Centric– BEA, IBM, Microsoft, Oracle, SAP, Sun, TIBCO
(BusinessWorks), webMethods• Employee-Centric
– Appian, Fuego, Global 360, FileNet, HandySoft (BizFLow), Lombardi, Metastorm, Savvion, TIBCO (Staffware), Ultimus
• Document-Centric– Adobe, Captaris, Documentum, DST Systems, EMC, FileNet,
Global 360, Open Text• Decision-Centric
– PegaSystems, CA• Monitoring-Centric
– IBM, TIBCO, Lombardi/Cognos
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BPMPS, Data Warehouses, BI, Analytics & Dashboards
The Other BPM:Business
PerformanceManagement
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BPM and SOA: A Necessary Conjunction?
Figure Modified After a BPTrends Column by Mike Rosen, Jan. 2006
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Market Consolidation
• 4-07 Software AG (Platform) buys webMethods (Documentation)• 8-06 IBM (Platform) buys Filenet (Documentation) • 3-06 BEA (Platform) buys Fuego (BPM engine)• 12-05 Intalio (BPM Engine) buys FiveSight (BPEL)• 10-05 Metastorm (Workflow) merges with CommerceQuest (EAI)• 9-05 Fair Issac (Rules) buys RulesPower (Rules)• 7-05 Seagull Software (Middleware) buys Oak Grove Systems
(BPM engine)• 6-05 Sun (Platform) buys SeeBeyond (EAI)• 4-05 TeleLogic (Modeling) buys Popkin (BP modeling)• 6-04 Oracle (Platform/Database/ERP) buys Collaxa (BPEL)• 6-04 TIBCO (EAI) buys Staffware (Workflow)• 4-04 Adobe (Documents) buys Q-Link (Workflow)• 9-02 IBM (Platform) buys Holosofx (BP Modeling)
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Aligning Processes and Business Rules
Specific
Activity
Business Process
Physical Plant and
Human Resource ArchitectureIT Architecture
Data
ArchitectureApplication
Architecture
Network
Architecture
Application
Designs
and Code
Database
Designs and
Data
Management
Systems
Technology
Architecture
Hardware Architecture
JobDesignActivity
Measurement
PlanActivity
Management
Plan Job Aids,
Training
Programs,
Knowledge
Management
System
Activity/
Performance
Monitoring
SystemPlans, Budgets,
Hiring, Resource
Allocation,
Feedback,
Consequences
Human-IT
Interface
Model
Screensand
Reports
Logical
Level
Physical
Level
Hardware Used
HumanResource
Architecture
ITArchitecture
Rules Embeddedin SoftwareApplications
Rules Embeddedin Manuals and
ProcessDocumentation
Specific Setof Rules
Organization GoalsOrganization Policies
Organization Ontologyand SpecificBusiness Rules
Implementation(Uses of Rules)
Strategy or EnterpriseLevel
Organization Performance
BusinessRulesLevel
BP Architecture
BP Analysis& Redesing
ImplementationLevel
BusinessProcess
Level
The Business Rules ManagementPerspective
The Business Process ManagementPerspective
Strategy and Goals
Strategy or EnterpriseLevel
Organization Compliance
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Standardizing Processes to Standardize Instances
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Air Products Wants a Single Instance of SAP Worldwide
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Tomorrows’ Reality: A Set of ERP Modules Managed by BPMS
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Trends in Business Process Management
• What is BPM• Enterprise Level Concerns• Process Level Concerns• Implementation Level Concerns• Summary
© 2007, Business Process Trends www.bptrends.com 53
So What Business Does the OMG Have in BPM
• As a software standards organization it has a large role to play in BPMS, SOA and other software standards
• As a modeling standards organization it has a role to play in standardizing modeling notations and software tool interfaces
• Does it have a role in BPM methodologies?• Does it have a role in business process audits or
management training?• Does it have a role to play in standardizing business
process frameworks?• Can the OMG move beyond software standards and
embrace real business process management?
© 2007, Business Process Trends www.bptrends.com 54
For More Information
www.bptrends.comThe most comprehensive free source of information and
analysis on trends, directions and best practices in Business Process Management
There are whitepapers and surveys available that provide more information on everything I’ve discussed
[email protected] editor