1. Business Process Management Nancy Bahrami MBA 731 11/05/07

2. Agenda • What is Business Process Management • BPM Lifecycle • BPM Systems/Software • BPM – A Step Further

3. BPM Defined • Management model that manages an organization’s processes and the interactions between them over time. • Improves processes • More Effective • More Efficient • More capable of adapting to an ever-changing environment • Different than Business Process Reengineering!

4. BPM Lifecycle Processes Link: • People to People • Applications to Applications • People to Applications

5. Escalations Actors R Y G SLA Process Maps/Flow Alert/ Notification SOP BPM Lifecycle • Capture/Document Current Processes

6. BPM Lifecycle • Design ‘to-be’ process • Modeling • Running ‘what-if’ scenarios • Execution • Develop or purchase application to execute the required steps of the process

7. BPM Lifecycle • Monitoring • Track individual processes • Key Performance Indicators: • Cycle time • Defect rate • Productivity • Example: Determine the state of a customer order: • Ordered arrived • Awaiting delivery • Invoice paid • Allows for operational problems to be identified and corrected

8. BPM Lifecycle • Optimization • Using information from Modeling & Monitoring phases to identify: • Bottlenecks • Potential areas for cost savings

9. BPM Systems/Software • Process Designer — Analyzes and models a process, and assigns logic to it • Process Engine — Executes the actual process flow • Rules Engine — Manages the flow of information and activities within a process • Process Analytics — Provides continual feedback on the process

10. BPM Systems/Software

11. BPM – A Step Further • Improves processes leading to: • Profitability • Competitive Advantage • Used to achieve Six Sigma

12. BPM – A Step Further • Used across organizations • Sourcing & Operations • Procurement, purchasing, and supplier management • Finance • Expense reimbursement, financial analysis and planning • Human Resources • Employee Lifecycle • New Product Development • Product development lifecycle • Sales & Marketing • Marketing strategy & sales processes

13. BPM – A Step Further • Used across all industries: • Financial Services & Insurance • Regulatory compliance, financial reporting, capital request approval, and budget management • Government • Streamline the business of government and address challenges such as budgetary constraints, policy changes, and public demands for greater accountability • Energy • Enables utility and energy providers to control spending, improve supplier management, and greatly reduce the procurement cycle time • Healthcare & Pharmaceuticals • HIPAA compliance, customer service, product development, supply-chain management, and brand management. • Manufacturing & Business Operations • Manage and automate their sourcing and operations processes, expedite the product development process, and provide solutions for support functions