Lecture 01 - Introduction to BPM MPHACMS Business Process Management Michal Krcal Department of Corporate Economics 16. 9. 2013 Michal Krcal (KPH ESF MU) Lecture 01 - Introduction to BPM 16.9.2013 1/33 Table of contents Q Good manners first Q Today's Agenda Q Course organization Q Nowadays economy view on the companies Q Business Process Management Q Business Process Michal Krcäl (KPH ESF MU) Lecture 01 - Introduction to BPM Who am I? • Assistant at the Department of Corporate Economics • Master degree in Applied Informatics (specialization: Information Systems) • Master degree in Business Administration • Thesis topic: Intangible Benefits of Enterprise Information Portals Michal Krcäl (KPH ESF MU) Lecture 01 - Introduction to BPM 16.9.2013 3/33 Who am I? • Assistant at the Department of Corporate Economics • Master degree in Applied Informatics (specialization: Information Systems) • Master degree in Business Administration • Thesis topic: Intangible Benefits of Enterprise Information Portals • Research and teaching interests: BPM, modeling, simulation, measuring of IS/ICT benefits, reverse logistics, knowledge management Michal Krcäl (KPH ESF MU) Lecture 01 - Introduction to BPM 16.9.2013 3/33 Who am I? • Assistant at the Department of Corporate Economics • Master degree in Applied Informatics (specialization: Information Systems) • Master degree in Business Administration • Thesis topic: Intangible Benefits of Enterprise Information Portals • Research and teaching interests: BPM, modeling, simulation, measuring of IS/ICT benefits, reverse logistics, knowledge management • English is not my first language! I apologize for (m)any mistake(s) :-) Michal Krcäl (KPH ESF MU) Lecture 01 - Introduction to BPM 16.9.2013 3/33 Who am I? • Assistant at the Department of Corporate Economics • Master degree in Applied Informatics (specialization: Information Systems) • Master degree in Business Administration • Thesis topic: Intangible Benefits of Enterprise Information Portals • Research and teaching interests: BPM, modeling, simulation, measuring of IS/ICT benefits, reverse logistics, knowledge management • English is not my first language! I apologize for (m)any mistake(s) :-) • And of course, I don't mind you making mistakes... ;-) Michal Krcäl (KPH ESF MU) Lecture 01 - Introduction to BPM 16.9.2013 3/33 Me and BPM • Have been dealing with BPM for about 6 years: ► Studied the topic at Fl ► Consulting and grading students projects for 4 years ► Participated on few seminars abroad ► Read lots of books :-) ► Discussed BPM issues with professionals Michal Krcäl (KPH ESF MU) Lecture 01 - Introduction to BPM 16.9.2013 4/33 Me and BPM • Have been dealing with BPM for about 6 years: ► Studied the topic at Fl ► Consulting and grading students projects for 4 years ► Participated on few seminars abroad ► Read lots of books :-) ► Discussed BPM issues with professionals ► But still I must learn a lot... as we all have to. Michal Krcäl (KPH ESF MU) Lecture 01 - Introduction to BPM 16.9.2013 4/33 What about You? • I have already done my introduction, now it's your turn! Michal Krcal (KPH ESF MU) Lecture 01 - Introduction to BPM 16.9.2013 5/33 What about You? • I have already done my introduction, now it's your turn! • Little warm-up exercise: ► name, country, faculty, year of study ► experience and knowledge about BPM ► motivation and expectations about this course ► something interesting about You... Michal Krcal (KPH ESF MU) Lecture 01 - Introduction to BPM 16.9.2013 5/33 Table of contents Good manners first Q Today's Agenda Q Course organization Q Nowadays economy view on the companies Q Business Process Management Q Business Process Michal Krcäl (KPH ESF MU) Lecture 01 - Introduction to BPM Table of Contents Q Good manners first Q Today's Agenda Q Course organization Q Nowadays economy view on the companies Q Business Process Management Q Business Process Michal Krcäl (KPH ESF MU) Lecture 01 - Introduction to BPM Table of contents %p Good manners first Q Today's Agenda Q Course organization Q Nowadays economy view on the companies Q Business Process Management Q Business Process Michal Krcäl (KPH ESF MU) Lecture 01 - Introduction to BPM Teaching methods Methods of teaching in this course: read, hear, demonstrate, discuss, apply... Michal Krcal (KPH ESF MU) Lecture 01 - Introduction to BPM Teaching methods • Methods of teaching in this course: read, hear, demonstrate, discuss, apply... • not necessarily in that order. Michal Krcal (KPH ESF MU) Lecture 01 - Introduction to BPM 16. 9. 2013 Teaching methods • Methods of teaching in this course: read, hear, demonstrate, discuss, apply... • not necessarily in that order. • The difference between lectures and seminars will be relative (first half - more lectures, second half - more seminars) Michal Krcal (KPH ESF MU) Lecture 01 - Introduction to BPM 16.9.2013 9/33 Detailed description • Read: books in sylabus; articles Michal Krčál (KPH ESF MU) Lecture 01 - Introduction to BPM Detailed description • Read: books in sylabus; articles • Hear: 'lectures', videos; brief introduction to concepts etc. Michal Krcal (KPH ESF MU) Lecture 01 - Introduction to BPM 16.9.2013 10/33 Detailed description • Read: books in sylabus; articles • Hear: 'lectures', videos; brief introduction to concepts etc. • Demonstrate: software demonstrations, role plays, case study Michal Krcal (KPH ESF MU) Lecture 01 - Introduction to BPM 16.9.2013 10/33 Detailed description • Read: books in sylabus; articles • Hear: 'lectures', videos; brief introduction to concepts etc. • Demonstrate: software demonstrations, role plays, case study • Discuss: active discussion and participation expected! Michal Krcal (KPH ESF MU) Lecture 01 - Introduction to BPM 16.9.2013 10/33 Detailed description • Read: books in sylabus; articles • Hear: 'lectures', videos; brief introduction to concepts etc. • Demonstrate: software demonstrations, role plays, case study • Discuss: active discussion and participation expected! • Apply: final project and defense Michal Krcal (KPH ESF MU) Lecture 01 - Introduction to BPM 16.9.2013 10/33 Detailed description • Read: books in sylabus; articles • Hear: 'lectures', videos; brief introduction to concepts etc. • Demonstrate: software demonstrations, role plays, case study • Discuss: active discussion and participation expected! • Apply: final project and defense • Questions? Michal Krcal (KPH ESF MU) Lecture 01 - Introduction to BPM 16.9.2013 10/33 Assessment • Completion - examination but no usual exam ► A = 92%; B = 84%; C = 76%; D = 68%; E = 60% ► Final mark = 25% mid-term test, 65% project defense, 10% active participation. Michal Krcal (KPH ESF MU) Lecture 01 - Introduction to BPM 16.9.2013 11/33 Assessment • Completion - examination but no usual exam ► A = 92%; B = 84%; C = 76%; D = 68%; E = 60% ► Final mark = 25% mid-term test, 65% project defense, 10% active participation. • Mid-term test - minimum is 60%; mixed questions (closed, open), based on first seven weeks and associated reading ► Date: 7th week, not during the lecture (holidays), needs to be discussed now. Michal Krcal (KPH ESF MU) Lecture 01 - Introduction to BPM 16.9.2013 11/33 Assessment • Completion - examination but no usual exam ► A = 92%; B = 84%; C = 76%; D = 68%; E = 60% ► Final mark = 25% mid-term test, 65% project defense, 10% active participation. • Mid-term test - minimum is 60%; mixed questions (closed, open), based on first seven weeks and associated reading ► Date: 7th week, not during the lecture (holidays), needs to be discussed now. Michal Krcal (KPH ESF MU) Lecture 01 - Introduction to BPM 16.9.2013 11/33 Assessment • Completion - examination but no usual exam ► A = 92%; B = 84%; C = 76%; D = 68%; E = 60% ► Final mark = 25% mid-term test, 65% project defense, 10% active participation. • Mid-term test - minimum is 60%; mixed questions (closed, open), based on first seven weeks and associated reading ► Date: 7th week, not during the lecture (holidays), needs to be discussed now. • Project: next slide • Active participation - your 'value-added' discussion activity will be valued by + (max 5%); reading summaries (max 5%, 2.5% each) Michal Krcal (KPH ESF MU) Lecture 01 - Introduction to BPM 16.9.2013 11/33 Assessment • Completion - examination but no usual exam ► A = 92%; B = 84%; C = 76%; D = 68%; E = 60% ► Final mark = 25% mid-term test, 65% project defense, 10% active participation. • Mid-term test - minimum is 60%; mixed questions (closed, open), based on first seven weeks and associated reading ► Date: 7th week, not during the lecture (holidays), needs to be discussed now. • Project: next slide • Active participation - your 'value-added' discussion activity will be valued by + (max 5%); reading summaries (max 5%, 2.5% each) • Questions? Michal Krcal (KPH ESF MU) Lecture 01 - Introduction to BPM 16.9.2013 11/33 Assessment, project Requirements and further details will be introduced during 6th lecture. • Requirements and further details will be introduced during 6th lecture. • Group projects, 1 group = 4 people. □ ► 4 fi) ► 4 = Assessment, project • Requirements and further details will be introduced during 6th lecture. a Group projects, 1 group = 4 people. • You can use your effort made in EKRR Michal Krcal (KPH ESF MU) Lecture 01 - Introduction to BPM 16.9.2013 12/33 Assessment, project • Requirements and further details will be introduced during 6th lecture. a Group projects, 1 group = 4 people. • You can use your effort made in EKRR • Consultation and presentation of drafts during last two weeks in seminars. Michal Krcal (KPH ESF MU) Lecture 01 - Introduction to BPM 16.9.2013 12/33 Assessment, project • Requirements and further details will be introduced during 6th lecture. a Group projects, 1 group = 4 people. • You can use your effort made in EKRR • Consultation and presentation of drafts during last two weeks in seminars. • Defense of the project during exam period (early term before Christmas will be available). Michal Krcal (KPH ESF MU) Lecture 01 - Introduction to BPM 16.9.2013 12/33 Assessment, project • Requirements and further details will be introduced during 6th lecture. a Group projects, 1 group = 4 people. • You can use your effort made in EKRR • Consultation and presentation of drafts during last two weeks in seminars. • Defense of the project during exam period (early term before Christmas will be available). • You will define few processes, define measures, make simple simulation and try to optimize processes • Questions? Michal Krcal (KPH ESF MU) Lecture 01 - Introduction to BPM 16.9.2013 12/33 List of course topics I O Introduction to BPM - context, definitions, scope, purpose. O BPM frameworks and models - basic description of frameworks and models. 0 Governance of BPM versus strategy - how to manage and control BPM. O Cultural and people aspects of BPM - the soft side of BPM. Q Modeling in BPM and IT support - the core part of BPM. O Business process - basic part of BPM + Business Process Model and Notation - how to model business processes. Michal Krcal (KPH ESF MU) Lecture 01 - Introduction to BPM 16.9.2013 13/33 List of course topics II O National Holidays O Modeling of business processes - retrieving of information and requirements. O Modeling of business processes - modeling in teams, brown-paper session. O Modeling of business processes - modeling tools and BPMS. O Designing of business processes - how to design a measurable business process. O Process optimization techniques. O BPM implementing and critical success factors. Michal Krcal (KPH ESF MU) Lecture 01 - Introduction to BPM 16.9.2013 14/33 Table of contents Ida Q Nowadays economy view on the companies KPH ESF ML)) Lecture 01-Introduction to BPM 16. 9. 2013 15 / 33 What's important about today's economy? Any guesses? Michal Krčál (KPH ES F MU) Lecture 01 - Introduction to BPM What's important about today's economy a Any guesses? • What about globalization? What's important about today's economy? • Any guesses? • What about globalization? • Is the customer the most important 'thing'? Michal Krcal (KPH ESF MU) Lecture 01 - Introduction to BPM 4 □ ► 4 fi> ► 4 What's important about today's economy? • Any guesses? • What about globalization? • Is the customer the most important 'thing'? • What are new trends in management and business? Michal Krcal (KPH ESF MU) Lecture 01 - Introduction to BPM 16.9.2013 16/33 What's important about today's economy? • Any guesses? • What about globalization? • Is the customer the most important 'thing'? • What are new trends in management and business? • What is important for customers? Michal Krcal (KPH ESF MU) Lecture 01 - Introduction to BPM 16.9.2013 16/33 What's important about today's economy? • Any guesses? • What about globalization? • Is the customer the most important 'thing'? • What are new trends in management and business? • What is important for customers? • What about quality? Michal Krcal (KPH ESF MU) Lecture 01 - Introduction to BPM 16.9.2013 16/33 What's important about today's economy? • Any guesses? • What about globalization? • Is the customer the most important 'thing'? • What are new trends in management and business? • What is important for customers? • What about quality? • How do we ensure quality? Michal Krcal (KPH ESF MU) Lecture 01 - Introduction to BPM 16.9.2013 16/33 Functional Organizational Structure Y Re sea re h & Development Product Marketing Michal Krcäl (KPH ESF MU) Lecture 01 - Introduction to BPM Is it OK? Michal Krčál (KPH ESF MU) Lecture 01 - Introduction to BPM 16.9.2013 18/33 Is it OK? Michal Krčál (KPH ESF MU) Lecture 01 - Introduction to BPM 16.9.2013 18/33 Is it OK? Michal Krčál (KPH ESF MU) Lecture 01 - Introduction to BPM 16.9.2013 18/33 Process view on the company R*D RÄD R&D Marketing Marketing Marketing Finance Finance Finance Michal Krcäl (KPH ESF MU) Lecture 01 - Introduction to BPM 16.9.2013 19/33 Process view on the company R*D RÄD R&D Marketing Marketing Marketing Finance Finance Finance • Is this a solution? Michal Krcäl (KPH ESF MU) Lecture 01 - Introduction to BPM 16.9.2013 19/33 Why not? Michal Krčál (KPH ES F MU) Lecture 01 - Introduction to BPM ► < * ► s -00.0 16.9.2013 20/33 Why not? • double activities Michal Krcal (KPH ESF MU) Lecture 01 - Introduction to BPM ► < * ► « -00.0 16.9.2013 20/33 Why not? • double activities • fighting between process (product) departments Michal Krcal (KPH ESF MU) Lecture 01 - Introduction to BPM 4 □ ► 4 & Solution is in balance • No extreme is usually good. Michal Krcäl (KPH ESF MU) Lecture 01 - Introduction to BPM 16.9.2013 21 /33 Solution is in balance • No extreme is usually good. • And how to make it work? Michal Krcäl (KPH ESF MU) Lecture 01 - Introduction to BPM 16.9.2013 21 /33 Table of contents ida O Coi Q Business Process Management Q Bu siness Process 4 □ ► 4 flP ► 4 •0 0.0 Introduction • Business introduction to BPM • Listen, take notes, there will be discussion Michal Krcal (KPH ESF MU) Lecture 01 - Introduction to BPM Introduction • Business introduction to BPM • Listen, take notes, there will be discussion • Q1: What is BPM? Michal Krcal (KPH ESF MU) Lecture 01 - Introduction to BPM Introduction • Business introduction to BPM • Listen, take notes, there will be discussion • Q1: What is BPM? • Q2: What is it good for? Michal Krcal (KPH ESF MU) Lecture 01 - Introduction to BPM Introduction • Business introduction to BPM • Listen, take notes, there will be discussion • Q1: What is BPM? • Q2: What is it good for? • Q3: Which example of BPM can you provid Michal Krcal (KPH ESF MU) Lecture 01 - Introduction to BPM Definition 1 • A holistic management approach focused on aligning all aspects of an organization with the wants and needs of clients. It promotes business effectiveness and efficiency while striving for innovation, flexibility, and integration with technology. BPM attempts to improve processes continuously. It can therefore be described as a "process optimization process." Michal Krcal (KPH ESF MU) Lecture 01 - Introduction to BPM 16.9.2013 24/33 Definition 2 • Business process management (BPM) is a systematic approach to making an organization's workflow more effective, more efficient and more capable of adapting to an ever-changing environment. • The goal of BPM is to reduce human error and miscommunication and focus stakeholders on the requirements of their roles. BPM is a subset of infrastructure management, an administrative area concerned with maintaining and optimizing an organization's equipment and core operations. Michal Krcal (KPH ESF MU) Lecture 01 - Introduction to BPM 16.9.2013 25/33 Definition 3 • A management discipline that treats business processes as assets that directly contribute to enterprise performance by driving operational excellence and business agility. • The most critical disciplines for BPM success are related to nontechnical issues, such as changing people's attitudes and assumptions based on building a new frame of reference or perspective (that is, the process perspective) for evaluating business performance of government agencies. • These essential elements consist of: ► Comprehending processes through business process modeling for visualization ► Evaluating process performance through attention to the right process metrics ► Generating options for performance improvements through process analysis ► Gaining the willingness to change the processes from the stakeholders involved Michal Krcäl (KPH ESF MU) Lecture 01 - Introduction to BPM 16.9.2013 26/33 Definition 4 - common characteristics • holistic, systematic approach or discipline (depends on POV); • business processes, effectiveness, efficiency, improvement • clients Michal Krcäl (KPH ESF MU) Lecture 01 - Introduction to BPM Evolution I • First wave of BPM - F. Taylor's theory of management, 1920s • Second wave of BPM - ERP systems, workflow, 1990s • BPR - Don't automate, obliterate! ► Micheal Hammer: Reengineering Work: Don't Automate, Obliterate, Harvard Business Review, vol. 68, is. 4, 1990. • Third wave of BPM - today's BPM - further reading • Influenced also by: Six Sigma, TQM (i.e. quality 'movement') Michal Krcäl (KPH ESF MU) Lecture 01 - Introduction to BPM 16.9.2013 28/33 Evolution II - Paul Harmon's view Fig. 1 Ann v of approaches to business process, change • More during discussion.. Michal Krcäl (KPH ESF MU) Lecture 01 - Introduction to BPM 16.9.2013 29/33 Table of contents O Today's Agenda 0 Course organization ©Nowadays economy, ©Business Process M Q Business Process Examples • Try to name at least one business process. Michal Krcal (KPH ESF MU) Lecture 01 - Introduction to BPM 16.9.2013 31 /33 Definition • A business process or business method is a collection of related, structured activities or tasks that produce a specific service or product (serve a particular goal) for a particular customer or customers. It often can be visualized with a flowchart as a sequence of activities. • The systematic activities by which an enterprise conducts its affairs. • Processes in non-manufacturing environments. Examples include order entry, engineering changes, purchasing, financial closings, request for quotes, etc. • At its most generic, any set of activities performed by a business that is initiated by an event, transforms information, materials or business commitments, and produces an output. Value chains and large-scale business processes produce outputs that are valued by customers. Other processes generate outputs that are valued by other processes. Michal Krcal (KPH ESF MU) Lecture 01 - Introduction to BPM 16.9.2013 32/33 Process categorization Management process (areas) Support process (areas) Strategic Performance Business Product alignment mgmt planning development Core process I Core process II Core process III Core process VI Logistics Program and project mgmt Marketing Accounting a More regarding this topic will be discussed during 6th week... Michal Krčál (KPH ESF MU) Lecture 01 - Introduction to BPM 16.9.2013 33/33