process identification -...

Process IdentificationFundamental of Business Process [IS611083]

Lecturer : 1. Dwi Mustika K, S.Kom., M.Kom (DMK)

2. Yudha Saintika, S.T., M.T.I (YUS)

Sub Capaian Pembelajaran MK

“Mahasiswa mampu memahami langkah – langkah proses identifikasi yang fokus kepada kunci proses”

“Mahasiswa mampu melakukan perancangan arsitektur proses”

Sub Capaian Pembelajaran MK

Process identification

Conformance and performance insights

Conformance and performance insights

Processmonitoring and

controlling

Executable processmodel

Executable processmodel

Processimplementation To-be process

model

To-be process model

Processanalysis

As-is processmodel

As-is processmodel

Process discovery

Process architectureProcess architecture

Processredesign

Insights onweaknesses and

their impact

Insights onweaknesses and

their impact

What?1. Define an organization’s business processes

2. Establish criteria to prioritize the management of these processes

Why?1. Understand the organization

2. Maximize value of BPM initiatives

Output: Process Architecture• Captures business processes and their scope

• Serves as a framework for defining priorities and scope of subsequent BPM phases (e.g. modelling, redesign and automation).

Process Identification

Process Identification Steps

1. Designation phase• Enumerate main processes

• Determine process scope: boundaries (horizontal and vertical) and interrelationships (order and hierarchical)

2. Evaluation phase (a.k.a. Process Selection)Evaluate processes’

• Alignment with strategic objectives

• Health (e.g. performance, compliance, sustainability…)

• Culture & politics

• Feasibility to being successfully improved

• Risk of not improving them

• There is no “number fits all” - it really depends on organization’s domain and size

• Trade-off:

• ensuring process scope is manageable, since• process scope determines potential impact

Process Enumeration

• Processes are interdependent

Insights into interrelations required• Horizontal: upstream – downstream processes• Vertical: root (a.k.a. main) processes – sub-processes

• Processes change over time• identification should be exploratory and iterative• improvement opportunities are time-constrained

Process Scoping

Process Architecture

Process Architecture

Architecture: high level picture of an organization

Customers

Capital

Markets

Labor

Markets

Research

Community

Shareholderspeople

technology

capital

Vendors

sales contacts

products & services

delivered

information &

dividends

requests for new products

materials

Competitorscompetitive products

General Environmental Influences:

Local and global economies, government regulations,

and social trends

Your Organization

Customers

orders

marketing

contacts

Markets

support requests

Suppliers & Partners Customers & Owners

“Process” Architecture

people

technology

capital

information

& dividends

materials

competitive products

BPT Delivery

Southern US and Central

AmericaDeliver Packages via Air & Ground

Vendors

Research

Community

Capital

Markets

Labor

Markets

Suppliers & Partners Customers & Owners

Shareholders

The US and world economies, government regulations, and social trends

UPS, FedEx. US & Mexican Postal Services

Manage Outsourced Supply Chain

OperationsSouthern US and Central

America

Businesses that want

to Outsource Delivery

Operations

Finance Supply Chain Operations

Individuals &

Businesses that want

on site pickup &

delivery

Businesses that

need transport

financing

Value chains

Components of a Process Architecture

Core Processes

Management

Processes

Supplie

rs /

Part

ners

Custo

mers

/ Ow

ners

Support Processes

After Porter

Core, Management and Support Processes

Core processes

generate value as they

are directly linked to

external customers

Management processes

provide direction, rules and

practices

Support processes provide

resources to be used by other

processes

Deliver

Order

Receive

Order

Approve

OrderFill Order

Stock Supplies

Receive Supplies

Order Supplies

Establish Sourcing

Procedure

Sign Contracts

Evaluate Vendors

Reorder

Supplies

Process

Fill Order Process

Plan

Vendors

Process

Process Architecture ExampleTelevision New Zealand

Process Architecture ExampleWA Water Corporation

Process Architecture ExampleAn insurance company

Strategic

Management

Corporate

Development

Investor

Relations

Risk Assessment

and ManagementMarket

Development

Management Processes

Sales and Marketing

Underwriting

Management

Policy

Servicing

Claims

Management

Collections and Disbursement

Asset Management

Finance/

Treasury

Legal/

AuditReinsurance IT HR

Core Processes

Enabling Processes

Process Architecture Example

Contoh Value Chain Pertamina GAS

Internal Audit

Bussines Support (Human Resource,Corporate Support, ICT)

Planning & Portofolio

Finance

Corporate Secretary

Supply Chain Management

QM & HSE

Pengembangan Usaha Penyaluran Gas

Margin

SUP

PO

RT

AC

TIV

ITIE

S

PRIMARY ACTIVITIES

• Identify relevant stakeholders and objectives, e.g. via a Stakeholder-Objectives Matrix

• Identify relevant context, e.g. via a SIPOC (Suppliers, Inputs, Process, Output, Customers) Diagram

• Identify relevant process boundaries, e.g. via a Case/Function Matrix

• Identify relevant guides and enablers, e.g. via an IGEO (Input/Guides/Enablers/Outputs) Diagram

• A combination of the above

Various techniques to scope a process

• Process owner, responsible for the effective and efficient operation of the process being modeled

• Primary process participants, i.e. those who are directly involved in the execution of the process under analysis

• Secondary process participants, i.e. those who are directly involved in the execution of the preceding or succeeding processes

Identify Process Stakeholders

• Primary (hard) process objectives• Time, cost, quality (minimise, maximise)

• satisfaction, compliance, flexibility, predictability

• Secondary process objectives• To purchase goods, to hire new staff members

• Accompany with appropriate process metrics

• Let involved stakeholders define their priorities

Identify Process Objectives

Process Identification Hierarchy

Core processes

Support processes

Management processes

Quote handling

Product delivery

Invoice handling

Detailed quote

handling process

Hierarchy Example: British Telecom

Logical

Levels

Physical

Levels

Busin

ess L

eve

lsO

pera

tions

Levels

Pro

cess L

evels

Model structure, methodology and

modelling standards

Shows groups of related business

functions and standard end-to-end

processes (e.g. Service Streams)

Decomposition of core processes

into detailed ‘success model’

business process flows

Detailed operational process

flows with error conditions and

product and geographical

variants (where required).

Further decomposition of detailed

operational where required

Process Groupings

Business Activities

Core Processes

Business Process Flows

Detailed Process Flows

Level A

Level B

Level C

Level D

Level E

Level F

Operational Process Flows

Defines business activities

Distinguishes operational customer

oriented processes from

management and strategic process

Core processes that combine

together to deliver Service Streams

and other end-to-end processes

Meta

Level

© British Telecommunications (2006)

Strategic View

Busin

ess L

ayer

Pro

ce

ss L

aye

r

Business

Value Streams

Business

Balanced Scorecard

Business

KPIs

Business Unit

ScorecardUnit KPIs

Business Process

Value Streams

Business

Objectives

Business Unit

Objectives

Operational Unit

Objectives

Imple

me

nta

tion

Process Groupings

Business Activities

Core Processes



Level A

Level B

Level C

Level D

Level E

Level F


Davis (2005)

Process View

Service Streams

Process Service Lines

Resources

Detailed Resources

Value Domains

Business FunctionsProcess Groupings

Business Activities

Core Processes



Level A

Level B

Level C

Level D

Level E

Level F


Business

Activities

Processes

Sub-processes

Detailed Processes

Enabling Streams

Tasks

Steps

Operations

Busin

ess L

aye

rP

rocess L

ayer

End-to-End

Processes

Core

processes

Imple

me

nta

tion

Davis (2005)

Organization View

Busin

ess L

aye

rIm

ple

me

nta

tion

Pro

cess L

ayer

Operational Teams

Business

Operational Roles

Operational Units

Business UnitsProcess Groupings

Business Activities

Core Processes



Level A

Level B

Level C

Level D

Level E

Level F


Davis (2005)

Data View

Busin

ess L

ayer

Pro

cess L

ayer

Business

Information

Custcontact

CustomerInquiry

Customercreditlimit

CustomerAccount

Customerbudget Cust

1

cn

1

n

1

n

1

1

1

11

1

1

1

1 1 1 n

CustomerOffer

Corporate Data Model

Process

Information

Function

Data

Function

Entities

department

Title

Phone #

Function

Attributes

System

Entities

department

Title

Phone #

System

Attributes Imple

menta

tion

Process Groupings

Business Activities

Core Processes



Level A

Level B

Level C

Level D

Level E

Level F

Operational Process FlowsProcedural

Information

Davis (2005)

System View

System

Types

System IT FunctionsScreens

(System Specific)

Systems and

Modules

System Types and

Modules Types

System

DomainsProcess Groupings

Business Activities

Core Processes



Level A

Level B

Level C

Level D

Level E

Level F


Busin

ess L

ayer

Pro

cess L

ayer

Imple

me

nta

tion

Davis (2005)

Hierarchy Example: QLD Shared Service Agency

Level A


Level B

Level C


Level D

1. Importance• Which processes have the greatest impact on the organization‘s

strategic goals?

2. Dysfunction• Which processes are in the deepest trouble?

3. Feasibility• Which process is the most susceptible to successful

process management?

Process Portfolio Management

The Evaluation Phase (aka Process Selection)

Evaluation ExampleProcess Portfolio of an Australian Retailer

Y

Process Health

High

Low

GoodPoor

L O

Q

B J M R

H P U V X

I K A N

C G W Z

D E T

F

0 4

• The purpose of the project is not clear enough leading to inappropriate scoping of the process.

• The scope of the process is too narrow leading to the fact that later the identified root-causes are located outside the boundaries of the process under analysis

• The scope of the process is too wide leading to a process improvement project that has to be compromised in its lack of detail

Pitfalls of Process Identification (1/2)

• The process is identified in isolation to other projects due to poor portfolio management leading to redundancies and inconsistencies between these projects

• Involved project members and stakeholders have not been sufficiently informed about the benefits of the project leading to limited participation

• The involved project members and stakeholders have not been carefully selected leading to a very limited source of knowledge

• The business process architect has poor facilitation skills and cannot resolve emerging conflicts between the project members and stakeholders.

Pitfalls of Process Identification (2/2)

Latihan Soal

1. Mengapa kita harus mengidentifikasi proses??

2. Sebutkan beberapa teknik untuk membuat ruang lingkupproses!!

3. Apa yang dilakukan saat kita mengidentifikasi proses stakeholder (Stakeholder Process)??

4. Sebutkan langkah-langkah identifikasi proses!!

• Identifikasi Proses adalah mendefinisikan proses bisnis yang ada dalamperusahaan dan menentukan kriteria untuk memprioriritaskanmanajemen proses tersebut

• Identifikasi proses dibutuhkan untuk mengerti perusahaan secaramenyeluruh dan memaksimalkan nilai inisiatif BPM

• Output dari identifikasi proses adalah memotret proses bisnis organisasidan ruang lingkupnya.

• Langkah-langkah proses identifikasi adalah fase desain dan evaluasi.

• Pada fase desain yang dilakukan adalah menentukan proses-proses utama dan lingkup

• Sedangkan pada fase evaluasi hal-hal yang dievaluasi adalah keselarasandengan tujuan strategis, kesehatan proses, politik&budaya, dan risiko

• Beberapa kegagalan identifikasi proses antara lain adalah tujuan proyektidak jelas, lingkup proses terlalu sempit, lingkup proses terlalu luas, proses teridentifikasi terisolasi kepada proyek lainnya, anggota member dan stake holder tidak ada informasi, dll

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process identification -...

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