By: Mark Treat, Editorial Director, Government, BPMInstitute.org
Friday December 8, 2006
There are literally dozens (if not hundreds) of articles, books, white papers and even entire conferences on the subject of Business Process Management (BPM), yet people I talk with still ask – “What exactly is BPM? Is it a process, technology, or management discipline?” It would seem that the answer varies depending upon whom you ask. The BPM acronym is used loosely and its meaning often varies depending upon the context. Software companies often refer to BPM to describe the capabilities of their particular technology, while practitioners, management consultants and academics typically discuss a management discipline in defining BPM. So, what really is Business Process Management (BPM)?
A. A process of managing your business processes
B. A management discipline.
C. A technology or set of technologies
D. A rapid application development framework
A process and management discipline.
First and foremost, BPM is a process and a management discipline. Enabling technology is meaningless without the processes and management disciplines for exploiting the technology - in this case the tools for managing an organization’s business processes. BPM involves managing the end-to-end work that organizations perform to create value for their customers. The performance of this work is how organizations fulfill their mission. An entire industry has emerged around BPM as organizations have recognized the importance of actively managing their business processes. Many organizations have also recognized a gap in the skills necessary to be effective at BPM. Organizations such as the BPM Institute and the Association of Business Process Management Professionals (ABPMP) have been formed to help address this gap. By identifying and sharing best practices while providing training and education opportunities, these and other organizations aid in the development of the necessary skills, knowledge and management practices for effective BPM.
The ABPMP expects to launch a comprehensive body of knowledge and a professional certification for BPM Professionals in 2007. The ABPMP definition of Business Process Management is:
"Business Process Management (BPM) is a disciplined approach to identify, design, execute, document, monitor, control, and measure both automated and non-automated business processes to achieve consistent, targeted results consistent with an organization's strategic goals. BPM involves the deliberate, collaborative and increasingly technology-aided definition, improvement, innovation, and management of end-to-end business processes that drive business results, create value, and enable an organization to meet its business objectives with more agility."
Personally I like this definition as it addresses the key activities in managing business processes, the skills required, and acknowledges the use of modern technology which enables effective business process management. This definition also references the notion of end-to-end work which creates value through a customer-centric focus. The ABPMP body of knowledge will include a framework of critical professional skills that organizations will need to posses in order to effectively manage their business processes. There will also be discussions on how Business Process Management may affect the organization structure, people’s roles and responsibilities, performance measures and various ways of thinking about how work is done.
BPM versus BPI
Many people confuse Business Process Management (BPM) with Business Process Improvement (BPI) initiatives. BPI initiatives typically imply projects, or a set of one-time unique improvements in redesigning or otherwise fixing a process. Common BPI methodologies include six sigma, lean, total quality management (TQM) and reengineering (a la Michael Hammer). BPM, on the other hand implies an ongoing organizational commitment to meeting the organization’s performance goals by managing its processes. It involves a continuous, feedback loop to ensure the organization’s business processes are aligned to its strategy and performing to expectations. Organizations practicing BPM may employ common BPI methodologies for a specific improvement; however the use of these BPI methodologies does not imply that the organization is committed to the practice of BPM.
Figure 1: A Business Process Management Framework
What about BPM technology?
Many vendors have created application suites which enable organizations to better manage their business processes. These technologies typically involve tools to visually design and model business processes; simulate and test business processes; automate, control and measure business processes; and provide feedback and reporting on process performance. Some vendors have combined these functions into business process management suites that provide a complete integrated BPM platform, commonly referred to as a BPMS.
Many organizations have a large number of legacy systems, typically designed to support specific functions such as manufacturing or sales. In order to manage the end-to-end work involved in business processes, a BPMS must be able to integrate with legacy systems across the organization in order to control work, get information or measure performance. A variety of new technologies have emerged to simplify integration efforts and the technology industry appears to be standardizing on a specific set of open technologies, commonly referred to as Web Services. A common framework for how these technologies are deployed is also being adopted, most often referred to as a Service Oriented Architecture (SOA). By leveraging web services in a service oriented architecture construct, organizations can build and manage end-to-end business processes across organizational silos and their legacy systems. Many modern BPM technology solutions include the capability to interface to legacy systems through these standard interfaces, providing the tools to automate and orchestrate work across the entire organization.
A rapid application development platform
As BPM technologies were released into the market, many IT organizations have begun to recognize that the technology can be leveraged to develop applications faster and at a lower cost than traditional methods. The visual design capabilities and standards-based interfaces create an environment where skilled software engineers can rapidly define the behavior of software which traditionally required significant effort to develop in code. A BPMS typically comes with pre-packaged functionality, such as user interface and security frameworks, is vendor supported and is easier to support than custom code. While many systems do not address end-to-end business processes, developers have found that a BPMS can be leveraged to rapidly and inexpensively develop a wide variety of software solutions for an organization’s business users.
While the BPMS market is consolidating onto a common platform capability, my observation is that BPMS vendors appear to be evolving from one of three areas:
# Vendors who have developed business process management capabilities which wrap around traditional content management technologies. These solutions are typically best deployed in document or content-centric processes, such as case management, claims management, licensing or permitting.
# Vendors who have developed business process management capabilities which wrap around traditional middleware technologies, such as connectivity, messaging and transformation services. These solutions are typically best deployed for processes which will rely heavily on orchestration and integration of legacy systems and technologies.
# So called “pure play” BPM vendors. These are typically new companies which have developed applications and application development frameworks specifically to focus on BPM capabilities. Many of these companies are being acquired by larger vendors, reducing the time to market for building a BPM capability by integrating these new technologies with legacy products. Several of these vendors, however, appear to be surviving as stand alone companies in part due to the fact that they are perceived to be “best of breed” in pure BPM capabilities. These solutions typically provide the most integrated and robust platform for rapid application development.
Conclusion
While the debate as to exactly what BPM is may continue, the industry’s awareness, knowledge and understanding of the topic is maturing. First and foremost BPM is itself a process and management discipline. Organizations such as the BPM Institute and Association of Business Process Management Professionals will help define these processes and disciplines. The acronym “BPM” will continue to be used to describe technology products which support and enable BPM. These products will continue to fuel a strong and rapidly growing segment of the information technology industry, as new capabilities and uses for this enabling set of technology are developed. BPM is an exciting space that has the promise to help organizations better fulfill their missions in creating value for their customers.
Mark Treat is currently working on a practitioner’s handbook for Business Process Management Professionals. He is a BPM Practice Manager at SAIC, a Director of the Association of Business Process Management Professionals (www.abpmp.org) and Editor of the BPM Institute’s government community. You can reach Mark at mtreat@bpminstitute.org.
Friday December 8, 2006
There are literally dozens (if not hundreds) of articles, books, white papers and even entire conferences on the subject of Business Process Management (BPM), yet people I talk with still ask – “What exactly is BPM? Is it a process, technology, or management discipline?” It would seem that the answer varies depending upon whom you ask. The BPM acronym is used loosely and its meaning often varies depending upon the context. Software companies often refer to BPM to describe the capabilities of their particular technology, while practitioners, management consultants and academics typically discuss a management discipline in defining BPM. So, what really is Business Process Management (BPM)?
A. A process of managing your business processes
B. A management discipline.
C. A technology or set of technologies
D. A rapid application development framework
A process and management discipline.
First and foremost, BPM is a process and a management discipline. Enabling technology is meaningless without the processes and management disciplines for exploiting the technology - in this case the tools for managing an organization’s business processes. BPM involves managing the end-to-end work that organizations perform to create value for their customers. The performance of this work is how organizations fulfill their mission. An entire industry has emerged around BPM as organizations have recognized the importance of actively managing their business processes. Many organizations have also recognized a gap in the skills necessary to be effective at BPM. Organizations such as the BPM Institute and the Association of Business Process Management Professionals (ABPMP) have been formed to help address this gap. By identifying and sharing best practices while providing training and education opportunities, these and other organizations aid in the development of the necessary skills, knowledge and management practices for effective BPM.
The ABPMP expects to launch a comprehensive body of knowledge and a professional certification for BPM Professionals in 2007. The ABPMP definition of Business Process Management is:
"Business Process Management (BPM) is a disciplined approach to identify, design, execute, document, monitor, control, and measure both automated and non-automated business processes to achieve consistent, targeted results consistent with an organization's strategic goals. BPM involves the deliberate, collaborative and increasingly technology-aided definition, improvement, innovation, and management of end-to-end business processes that drive business results, create value, and enable an organization to meet its business objectives with more agility."
Personally I like this definition as it addresses the key activities in managing business processes, the skills required, and acknowledges the use of modern technology which enables effective business process management. This definition also references the notion of end-to-end work which creates value through a customer-centric focus. The ABPMP body of knowledge will include a framework of critical professional skills that organizations will need to posses in order to effectively manage their business processes. There will also be discussions on how Business Process Management may affect the organization structure, people’s roles and responsibilities, performance measures and various ways of thinking about how work is done.
BPM versus BPI
Many people confuse Business Process Management (BPM) with Business Process Improvement (BPI) initiatives. BPI initiatives typically imply projects, or a set of one-time unique improvements in redesigning or otherwise fixing a process. Common BPI methodologies include six sigma, lean, total quality management (TQM) and reengineering (a la Michael Hammer). BPM, on the other hand implies an ongoing organizational commitment to meeting the organization’s performance goals by managing its processes. It involves a continuous, feedback loop to ensure the organization’s business processes are aligned to its strategy and performing to expectations. Organizations practicing BPM may employ common BPI methodologies for a specific improvement; however the use of these BPI methodologies does not imply that the organization is committed to the practice of BPM.
Figure 1: A Business Process Management Framework
What about BPM technology?
Many vendors have created application suites which enable organizations to better manage their business processes. These technologies typically involve tools to visually design and model business processes; simulate and test business processes; automate, control and measure business processes; and provide feedback and reporting on process performance. Some vendors have combined these functions into business process management suites that provide a complete integrated BPM platform, commonly referred to as a BPMS.
Many organizations have a large number of legacy systems, typically designed to support specific functions such as manufacturing or sales. In order to manage the end-to-end work involved in business processes, a BPMS must be able to integrate with legacy systems across the organization in order to control work, get information or measure performance. A variety of new technologies have emerged to simplify integration efforts and the technology industry appears to be standardizing on a specific set of open technologies, commonly referred to as Web Services. A common framework for how these technologies are deployed is also being adopted, most often referred to as a Service Oriented Architecture (SOA). By leveraging web services in a service oriented architecture construct, organizations can build and manage end-to-end business processes across organizational silos and their legacy systems. Many modern BPM technology solutions include the capability to interface to legacy systems through these standard interfaces, providing the tools to automate and orchestrate work across the entire organization.
A rapid application development platform
As BPM technologies were released into the market, many IT organizations have begun to recognize that the technology can be leveraged to develop applications faster and at a lower cost than traditional methods. The visual design capabilities and standards-based interfaces create an environment where skilled software engineers can rapidly define the behavior of software which traditionally required significant effort to develop in code. A BPMS typically comes with pre-packaged functionality, such as user interface and security frameworks, is vendor supported and is easier to support than custom code. While many systems do not address end-to-end business processes, developers have found that a BPMS can be leveraged to rapidly and inexpensively develop a wide variety of software solutions for an organization’s business users.
While the BPMS market is consolidating onto a common platform capability, my observation is that BPMS vendors appear to be evolving from one of three areas:
# Vendors who have developed business process management capabilities which wrap around traditional content management technologies. These solutions are typically best deployed in document or content-centric processes, such as case management, claims management, licensing or permitting.
# Vendors who have developed business process management capabilities which wrap around traditional middleware technologies, such as connectivity, messaging and transformation services. These solutions are typically best deployed for processes which will rely heavily on orchestration and integration of legacy systems and technologies.
# So called “pure play” BPM vendors. These are typically new companies which have developed applications and application development frameworks specifically to focus on BPM capabilities. Many of these companies are being acquired by larger vendors, reducing the time to market for building a BPM capability by integrating these new technologies with legacy products. Several of these vendors, however, appear to be surviving as stand alone companies in part due to the fact that they are perceived to be “best of breed” in pure BPM capabilities. These solutions typically provide the most integrated and robust platform for rapid application development.
Conclusion
While the debate as to exactly what BPM is may continue, the industry’s awareness, knowledge and understanding of the topic is maturing. First and foremost BPM is itself a process and management discipline. Organizations such as the BPM Institute and Association of Business Process Management Professionals will help define these processes and disciplines. The acronym “BPM” will continue to be used to describe technology products which support and enable BPM. These products will continue to fuel a strong and rapidly growing segment of the information technology industry, as new capabilities and uses for this enabling set of technology are developed. BPM is an exciting space that has the promise to help organizations better fulfill their missions in creating value for their customers.
Mark Treat is currently working on a practitioner’s handbook for Business Process Management Professionals. He is a BPM Practice Manager at SAIC, a Director of the Association of Business Process Management Professionals (www.abpmp.org) and Editor of the BPM Institute’s government community. You can reach Mark at mtreat@bpminstitute.org.
