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MTAT.03.231 Business Process Management Lecture 1 – Introduction Marlon Dumas marlon.dumas ät ut. ee 1.

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Presentation on theme: "MTAT.03.231 Business Process Management Lecture 1 – Introduction Marlon Dumas marlon.dumas ät ut. ee 1."— Presentation transcript:

1 MTAT Business Process Management Lecture 1 – Introduction Marlon Dumas marlon.dumas ät ut. ee 1

2 Objective To introduce the discipline of modeling, analyzing, automating and monitoring business processes. Related courses Enterprise System Integration – Integrating applications to automate or support business processes Software Economics – Economic assessment of IT projects Data mining – Mining business process execution logs About this course 2

3 14 lecture+practice sessions covering: Process Modeling Process Analysis Process Redesign Process Automation Process Monitoring & Mining Team Project Structure of the course 3

4 8-12 hours per homework ≈ 60 hours in total Six assignments (25 points in total) ≈ 40 hours Project (25 points) Technical exam: Modelling, Analysis, Redesign, Mining Business exam: Modelling, Automation, Mining Exam (50 points), free choice between: Grading 4

5 Course material posted on course Web page Textbook Dumas, La Rosa, Mendling & Reijers: Fundamentals of Business Process Management, Springer 2013 You can download chapters or whole book if inside the university network (see “Readings” section of web site) Use message board for questions Readings and resources

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7 Obtain PO confirm. Obtain PO confirm. Prepare shipment Prepare shipment Schedule delivery Schedule delivery Issue invoice Issue invoice Check Invoice Check Invoice Load truck Load truck Check & confirm PO Check & confirm PO Notify shipment Notify shipment Unload truck Unload truck Package products Package products Issue delivery receipt Issue delivery receipt Request PO change Request PO change Match incoming payment Match incoming payment Schedule payment Schedule payment 7

8 Greet & seat Greet & seat Bring menu Bring menu Take order Take order Serve meal Serve meal Present bill Present bill Collect payment Collect payment Load dish- washer Load dish- washer Unload dish- washer Unload dish- washer Clean kitchen surfaces Clean kitchen surfaces Collect laundry Collect laundry Sweep & mop Sweep & mop Collect laundry Collect laundry Brush grills Brush grills 8

9 Financial Human Resources Technology Organisation Function A Function B Function C Assets & Partners Customers Materials Business Process Business processes 9

10 Obtain PO confirm. Obtain PO confirm. Schedule delivery Schedule delivery Unload truck Unload truck Issue delivery receipt Issue delivery receipt Check invoice Check invoice Schedule payment Schedule payment Check & confirm PO Check & confirm PO Package products Package products Load truck Load truck Notify shipment Notify shipment Issue invoice Issue invoice Match payment Match payment Payment made Payment made PO received PO received PO issued PO issued Goods arrived Goods arrived 10

11 Load dish- washer Load dish- washer Clean kitchen surfaces Clean kitchen surfaces Brush grills Brush grills Collect laundry Collect laundry Sweep & mop Sweep & mop Unload dish- washer Unload dish- washer Greet & seat Greet & seat Take order Take order Bring menu Bring menu Serve meal Serve meal Present bill Present bill Issue invoice Issue invoice Customer paid Customer paid Customer arrived Customer arrived Kitchen is dirty Kitchen is dirty Kitchen is clean Kitchen is clean 11

12 a chain of events, activities and decisions...involving a number of actors and objects, ….triggered by a need and leading to an outcome that is of value to a customer. Examples: Order-to-Cash Procure-to-Pay (aka Purchase-to-Pay) Application-to-Approval Fault-to-Resolution A business process is… 12

13 fault-to-resolution process VALUE Customer Insurance Company Parts Store Service Dispatch Centre Technician CustomerCall CentreCustomer “My washing machine doesn’t work…” Negative outcomes (value-reducing): Fault not repaired in a timely manner Fault repaired but customer pays more than expected Positive outcomes (value-creating): Fault repaired with minor intervention Fault repaired, covered by warranty 13

14 Your turn Think of an organization and a process in this organization: Is it order-to-cash, procure-to-pay, fault-to-resolution… Who is/are the customer(s)? What value does this process deliver to its customer? Who are the key actors of the process? List at least 3 outcomes of the process. 14

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16 Managing Performance (Rummler’s Framework) Financial Human Resources Technology EconomyCultureRegulatory Organisation Performance Management Performance Planning Function AFunction BFunction C Assets & Resources Business Environment Stakeholders Customers Materials Competitors Business Process Value 16

17 Process performance If you had to choose between two services, you would typically choose the one that is: F… C… B…

18 Process performance If you had to choose between two services, you would typically choose the one that is: Faster Cheaper Better

19 Process performance Three dimensions of process performance Time Cost Quality

20 Greet & seat Greet & seat Take order Take order Bring menu Bring menu Serve meal Serve meal Present bill Present bill Issue invoice Issue invoice Customer paid Customer paid Customer arrived Customer arrived Improving business process performance 20

21 How would you improve this process? Eliminate Cooking Outsource to Customer Standardize Eliminate Waiters Invest and Build Automate Re-sequence 21

22 Body of principles, methods and tools to design, analyze, execute and monitor business processes, with the aim of improving their performance. Business Process Management (BPM) 22

23 “The first rule of any technology used in a business is that automation applied to an efficient operation will magnify the efficiency. The second is that automation applied to an inefficient operation will magnify the inefficiency.” Bill Gates Why BPM? 23

24 In other words… Information Technology Process Change Yields Business Value Index Group (1982) Enables 24

25 Why BPM 25

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27 The BPM lifecycle 27

28 Process architecture Core processes Support processes Management processes Australian water supplier example 28

29 Process portfolio Y Process Health Importance (priority) High Low GoodPoor LO Q B J MR H PUV X IK AN C GW Z D ET F 0 4 Primary focus Australian retailer example 29

30 The BPM lifecycle 30

31 Business process model Invoice handling example 31

32 The BPM lifecycle 32

33 Qualitative process analysis Root-cause analysis example 33

34 Quantitative process analysis Process simulation example 34

35 The BPM lifecycle 35

36 Process redesign AS-IS process model TO-BE process model Cost Quality Time Flexibility 36

37 The BPM lifecycle 37

38 Process automation Executable process design Configuration & coding Testing... Process change management Job redesignTraining Performance management plan …. Process implementation 38

39 The BPM lifecycle 39

40 Process monitoring & controlling Dashboards, alerts & reports Model-based analytics (p. mining) Event stream DB logs 40

41 Roles in the BPM lifecycle BPM group Developer Process owner Analyst Process participants System administrator 41

42 Course structure Weeks 2-3 Weeks 4-5 Weeks 6-7 Weeks 8-10 Weeks Week 6: Lecture 12 42

43 Next Week Introduction to Process Modeling 43


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