Chapter-2-Process-Identification BPM.pptx

Business process management

1. PROCESS IDENTIFICATION Chapter 2

2. Process identification is a set of activities aiming to systematically define the set of business processes of a company and establish clear criteria for prioritizing them.

3. Key Aspects of Process Identification

4. What is a Process ? At its core, a process is a series of interconnected steps or activities that transform inputs into outputs, creating value for a customer (internal or external). Think of it as a recipe 🧑‍🍳: you have ingredients (inputs), steps to follow (activities), and a finished dish (output).

5. Why is it Important?

6. Process identification is crucial because it provides a clear picture of how work gets done. Without it, organizations operate with a fragmented view, leading to:

7. Inefficiencies : Duplication of effort, bottlenecks, and wasted resources. Lack of Clarity : Employees may not understand their role in the bigger picture. Difficulty in Improvement : You can't improve what you don't understand. Compliance Issues : Challenges in meeting regulatory requirements. Poor Decision-Making : Decisions based on assumptions rather than factual process flow.

8. 1 The output of process identification is a process architecture , which represents the business processes and their interrelations. A process architecture serves as a framework for defining the priorities and the scope of process modeling and redesign projects.

9. designation phase Method for process identification that is based on two phases : 1 2 evaluation phase

10. The designation phase is the initial step in defining the scope of processes within an organization. It involves identifying and listing all existing processes, often referred to as the " as-is " processes. This phase sets the foundation for further analysis and improvement efforts.  Method for process identification that is based on two phases: 1

11. An " as-is " process refers to a detailed documentation and analysis of how a process currently operates within an organization. It's a snapshot of the current state, capturing all steps, workflows, and interactions involved, without any changes or improvements. This understanding serves as a foundation for identifying areas of improvement and planning future process changes. 

12. Example of “as-is” process

13. CATEGORIES OF PROCESSES ACCORDING TO PORTER Different categorizations for business processes have been proposed. One of the most influential is Michael Porter’s Value Chain model . It distinguishes two categories of processes: core processes (called primary activities) support processes (support activities)

14. Core Processes Core processes cover the essential value creation of a company, that is, the production of goods and services for which customers pay. Porter mentions inbound logistics, operations, outbound logistics, marketing and sales, and services.

15. Support Processes Support processes enable the execution of these core processes. Porter lists infrastructure, human resources, technology development, and procurement as such support processes.

16. As a third category, other authors extend this set of two categories with management processes . These processes are responsible for planning, controlling, and monitoring the organization's resources and performance. Strategic Planning, Performance Management, and Risk Management . 1

17. 2 The evaluation phase a stage in various processes where the effectiveness, outcomes, and impact of a project, program, or intervention are assessed. It involves collecting and analyzing data to understand what worked, what didn't, and how to improve for future iterations. Method for process identification that is based on two phases: This phase is crucial for making informed decisions, ensuring accountability, and driving continuous improvement. 

18. The Evaluation phase Process management involves commitment, ownership, investment in performance enhancement, and optimization. Therefore, processes that create loss or risk demand for consolidation, decommissioning, or outright elimination. Various criteria have been proposed to steer this evaluation. The most commonly used ones are the following.

19. Importance This criterion is concerned with assessing the strategic relevance of each process. The goal is to find out which processes have the greatest impact on the company’s strategic goals, for example considering profitability, continuity, or contribution to a public cause. Dysfunction This criterion aims to render a high-level judgment of the “health” of each process. The question here is to determine which processes are in the deepest trouble. These processes are the ones that may profit most from process centered initiatives. Feasibility For each process, it should be determined how susceptible they are to process management initiatives, either incidental or on a continuous basis. In general, process management should focus on those processes where it is reasonable to expect benefits. Criterias 1 2 3

20. BPM MATURITY ASSESSMENT

21. A more detailed approach to look at the evaluation phase is based on maturity. BPM maturity assessment is a body of techniques to determine the level of systematic process thinking in an organization. A BPM maturity assessment essentially involves two aspects . to assess to what extent a given organization covers the range of processes that are ideally expected from it. to assess to what degree these processes are documented and supported. BPM MATURITY ASSESSMENT Therefore, a maturity assessment is aimed at establishing a baseline for discussing the completeness and the quality of the set of processes executed in an organization.

22. One of the most widely used frameworks for maturity assessment is the Capability Maturity Model Integrated (CMMI) framework. This framework distinguishes a number of so-called process areas. Several of these areas are specific to a particular domain in the various CMMI specifications. The domain independent areas include: process management , project management , and support .

23. The coverage of process areas and the degree of their support provide the basis for a maturity assessment in terms of the five CMMI maturity levels: Level 1 (Initial) At this initial stage, the organization runs its processes in an ad-hoc fashion, without any clear definition of these processes. Control is missing. Level 2 (Managed) At this stage, project planning along with project monitoring and control have been put into practice. Measurement and analysis is established as well as process and product quality assurance. Level 3 (Defined) Process definitions are available and organizational training is provided to enable stakeholders across the organization to be engaged in process documentation and analysis. Integrated project and risk management are in place. Decision analysis and resolution are also in place.

24. Level 4 (Quantitatively Managed) At this stage, organizational process performance is tracked. Project management is performed using quantitative techniques. Level 5 (Optimizing) At this stage of maturity, the organization has established organizational performance management accompanied with causal analysis and resolution. The assessment of an organization in terms of these levels leads to a so-called appraisal .

25. The different levels of detail in a process architecture

26. LEVEL 1 Process Landscape This level provides a broad overview of the organization’s key processes, often group into categories like management, core and support processes. It focuses on the “what” – what the organization does to deliver value. Examples include a Value Chain Model (Michael Porter) This level helps stakeholders understand the overall structure and relationships between processes.

27. LEVEL 2 Abstract Process Model This can be represented using SIPOC diagrams (Suppliers, Inputs, Process, Outputs, Customers), illustrating inputs, outputs and key activities within a process. It focuses on the “how” – how the organization transform inputs into outputs. Level 2 provides more detail than level 1, but its still relatively abstract.

28. LEVEL 3 Detailed Process Model Visual representation that breaks down a complex process into its individual steps, activities and decision points, providing a comprehensive understanding of how a process works. It provides a detailed view of how each activity is performed. The BPMN ( Business Process Model and Notation ) can be used to model the control flow, data inputs/outputs, and participant assignments at this level.

29. Identify Case types A case type is a blueprint for handling a specific type of business situation. It outlines the steps, activities, and rules involved in resolving a particular problem. In process architecture, case types represent different categories of business problems or situations that a process aims to resolve. They define the activities, participants, and document types involved in handling a specific instance of that problem. Essentially, a case type is a template for how to deal with a particular type of situation.  What is a Case Type?

30. A classification of the types of cases that an organization handles can be developed using any number of properties. However, some of the more commonly used properties are: Product Type Service Type Channel Customer Type