Business Process Modeling Across the Life ... - Modern Analystmedia.modernanalyst.com/2013-02-12 SLIDES-Howard... · Business Process Modeling Across the Life Cycle ... •Unified

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Business Process Modeling Across the Life Cycle

Howard Podeswa

Principal Consultant, Process Impact

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Featured Speaker

Howard Podeswa

CEO, Noble Inc.

(416) 532-2205

[email protected]

www.nobleinc.ca

Since 1998, Noble Inc. has been providing Business Analysis training and consulting services to clients across the globe in a broad range of sectors including finance, government, insurance, new technology, resources, telecom, health and media with an illustrious client list that includes the International Standards Organization (ISO), the Mayo Clinic, Bell Nexia and Thomson Reuters.

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© 2012 by Noble Inc. All rights reserved.

[email protected]

www.nobleinc.ca

Noble Inc. Official Curriculum

All rights reserved. The material contained in this presentation is

protected under the copyright laws of Canada and the United States.

This material may not be reproduced in any form or by any means

without the written permission of Noble Inc. Any infringement of these

copyrights or trademarks will be prosecuted to the full extent of the

law.

mailto:[email protected]

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Session Objectives


Understand what Business Process Modeling

(BPM) is and the rationale for doing it.

Understand how BPM is applied across the project

lifecycle.

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Part 1

The Business Case for BPM


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Business Process Modeling What?


The representation of current ("as is") and proposed ("to be") enterprise processes, so that they may be compared and contrasted.

Used for:

- Business process improvement

- Business impact analysis in preparation for an IT project.

Standards used in this context include:

- BPMN

- UML

- Use Cases

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Evolution of BPM


1960’s

– Business process automation drove the need for

understanding how a system would implement a

business process

• Flowcharts

1970’s, 1980’s, 1990’s

– Increasing complexity of business process

automation demanded new tools and techniques

• IDEF models, data flow diagrams, …

• Statechart diagrams

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Evolution


1989: OMG (Object Management Group) founded

– Owns the UML (Unified Modeling Language) standard for OO (Object Oriented) systems.

1990’s: OO Analysis and Design matures • Unified Modeling Language standard gains wide acceptance. Includes

activity diagrams and state-machine diagrams for modeling sequencing rules

2005

– BPMI (Business Process Management Initiative) and OMG merge business process management activities.

– OMG becomes owner of BPMN (Business Process Modeling Notation), an alternative to UML activity diagram for modeling workflow

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More than a Diagram


Any business process model is usually

expressed as:

– One or more diagrams

• Different processes, different perspectives, different

levels of detail

– Supporting text

• Definitions

• Explanations

– Decisions, algorithms, detailed business rules

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Business Process Workflow Model


A business process workflow model depicts

– Activities and their sequence

– Transitions

– Decisions

– How it begins and ends

– Optionally:

– Who does what

– Business objects created, altered or required at each step

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Business Process Modeling Why?


By comparing and contrasting current and proposed enterprise processes, business analysts and managers can identify specific process transformations that can result in quantifiable improvements to their businesses.

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So why bother with the picture?


Better than text for depicting complex workflows.

Well-suited for comparison of alternatives, scope definition and gap analysis.

Enables BA to consolidate partial stakeholder views of a process into one end-to-end picture.

‘Straw man’ to stimulate discussion.

Aids identification of bottlenecks.

Enables standardization of processes across the organization.

Visual training aid for new process workers.

End-to-end models used to design integration tests.

May be used to run simulations and to generate code

Modeling is simpler, faster and cheaper than building the real thing

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Business Process Modeling Contexts for BPM


Business merger or takeover Introduction of new products or services Other transformational change:

– Elimination of redundant processes – Automation of services and processes (reduce manual elements) – Centralization of common business processes – Change to underlying software systems or how they are used; system

migration Process improvement:

– Identify and remove bottlenecks – Reduce double entry – Role changes

IT change: — To ensure impact on end-to-end business process is taken into consideration

Exit interviews Operations training

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Important step in ensuring IT development supports the business process.

Provides clear path from business needs to IT requirements: • Business process is decomposed using BPM.

• Process models are used to identify and define IT tasks (system use cases) required to support the business process

Business Process Modeling Relevance for IT projects


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Initiation: To model As-Is and To-Be business

processes.

Discovery: To model user tasks and the

corresponding interactions with the IT system.

Construction: Developers use BA models as

input to interface and software design.

Final V & V: QA uses BA models as input to

integration test design.

Overview of BPM Across the SDLC


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Business Process Modeling


Case Studies

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A state-level government client has decided to

centralize the delivery of services.

MyFile is to be a single point of entry for all

services offered by the government:

- Automobile licences, grants, fines, etc.

Noble is currently working with this client on

analyzing the As-Is and To-Be workflow for

affected processes.

BPM to Centralize Processes

Case

Study:

MyFile


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BPM to Reduce Inefficiencies

Case Study:

CRM


Noble worked with one of the Big Four financial services

companies on a project to change their Customer

Relations Management (CRM) processes.

As-Is:

- Uses 2 systems – one for prospects; another for ‘wins’.

- Requires wasteful double entry

To-Be:

- One of the current systems to be expanded to handle

full cycle.

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BPM to Decrease Turnaround

Case Study:

Insurance


International insurance company has launched a

transformational change initiative.

Has determined that most insurance applications could be

fast-tracked.

As-Is:

- Applications filled out and adjudicated manually

To-Be

- Automated end-to-end processing for most insurance

applications

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Part 2

Business Process Modeling Toolkit

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BPMN


What? - Business Process Modeling Notation - Popular standard for Business Process Modeling (BPM) - Overseen by the Object Management Group (OMG)

- URL: www.omg.org

- External process view modeled as public process - Internal workflow modeled as private process

Why? - Widely used and understood within BPM community - Well-supported by model-driven process modeling,

simulation and automation tools - Nuanced symbols allow for accurate modeling of

workflow subtleties

Toolbox

http://www.omg.org

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Public Business Process (BPMN)


Public

Process:

Manage

claim

As-Is To-Be

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Private Business Process (BPMN)


Private

Process:

Manage

claim

As-Is To-Be

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Activity Diagram


What? - UML alternative for depicting workflow

Why? - UML-compliance - Much can be conveyed using a basic set of intuitive

symbols - Easy to learn and interpret

When? - Initiation: May be used to model business processes

instead of BPMN for UML compliance - Discovery: Appendix to system use cases to model

complex flows

Toolbox

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Example of Business Process using an Activity Diagram with Swimlanes (UML)

National Client

Acceptance

Pursuit TeamLocal OfficeMarketing

Identify Target Client Select Pursuit Team

Enter Opportunities & Contacts

Create Pursuit Plan Validate Pursuit Plan

Record Pursuit Evaluation

Launch Pursuit

[Accepted]

[Rejected]

Plan Pursuit

Abandon Pursuit

Toolbox

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Functional Decomposition Diagram


What?

- Indicates decomposition of business functions into processes, activities and low-level tasks

- Does not indicate sequencing

Why?

- Useful first step in creating new functions and processes:

- Focuses on what must be done without worrying about sequencing

- Helps navigate through more detailed models:

- Workflow models: FDD provides overview of decomposition of processes and activities appearing in the workflow models

- Data Flow Diagrams: FDD summarizes decomposition of processes across DFD levels

Toolbox

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Functional Decomposition Diagram Format


Function

Process 1

Activity 1.1

Activity 1.2

Process 2

Activity 2.1

Activity 2.2

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Example of FDD to describe a

business area Toolbox

(Source, The Business Analyst’s Handbook – Chapter 4, Page 178)

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Context Diagram Toolbox

What?

- High-level model describing how the entity under discussion (business area or IT system) interacts with its environment.

- Defines the border between what is in the system and what is outside of it—its scope.

- Does not indicate sequencing

Why?

- Focuses on big picture:

• What business areas or IT systems are inside and outside of scope?

• What stakeholders and/or external systems are impacted by the initiative?

• What is the nature of the communication between the area under discussion and external players and systems

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Context Diagram

Looks at business/system in context of its environment

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Data Flow Diagram

What is a DFD model? - Set of leveled diagrams that describe the way that data

moves through a system. - Level 0 DFD is context diagram; Level 1 DFD depicts the main

processes; Further levels provide successively increasing degrees of detail.

- May be business or system; logical or physical

Why? - Often used in legacy documentation. - Enables top-down analysis - Effective means for analyzing the informational needs

of processes. - Effective in checking for completeness: Formal standard

violations often point to missing requirements.

Toolbox

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DFD Levels


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State Diagram What?

Used to model the rules that govern how an object passes from state (status) to state over its lifecycle

Included as part of the UML standard

May be used to model lifecycles of wide array of business objects, such as:

- Application (for Credit, Insurance, etc.)

- Change Request

- Incident Report

- Insurance Claim

Toolbox

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Provides an overview of the life cycle of business objects across business processes and user requirements

Helps identify ‘holes’ in business processes

- Enables a visual check that the object transitions from status to status as required by the business

Helps identify bottlenecks

- E.g., metrics can be gathered for each state to determine where a business object is getting “stuck.”


State Diagram Why?

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The State-Machine Diagram: Lifecycle of a Purchase

transition

state

guard

event

Initial

Paid Payment Pending

Royalties applied

[successful] [payment denied]

Customer makes alternative payment

Make purchase

Apply royalties

Created

choice

Final

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Business Use Case

What? • An interaction with a business area that provides

value to those outside the business area (a customer, a vendor, another sector, an external system…)

Why? - Provides a basis for discussion about the scope

of the business improvement project.

- Identifies which stakeholders will be impacted by current and subsequent changes.


Toolbox

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Business Use-Case Diagram


Customer

Manage claim

Finance

Policy

Management

Customer Service Rep

Manager Customer Services Adjuster

As-Is To-Be

Toolbox

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System Use Case What?

Definition: - Use Case: “The specification of a sequence of

actions, including variants, that a system (or other entity) can perform, interacting with actors of the system.” (UML 2)

- System Use Case: a use case for which the system is an IT system

Describes all of the ways that the interaction could possibly play out.

Toolbox

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System Use Case Why?

Focuses on user’s experience

Separates true user needs from implementation

considerations by excluding design issues

Narrative style and short length makes it suitable for

verification by business stakeholders

Separation into flows eases identification of test cases

Style well-suited for deriving test scripts

Well-suited for planning what functionality

increments to include in each iteration of an

iterative/agile project


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(System) Use Case Diagram

Customer Transfer funds

Verify funds Pay bills

<<include>>

<<include>>

Manager

Add Payee

Customer

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Part 3

BPM Over the Course of a Project



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Case Study

The following case study pulls together some of

the tools and guidelines used by the BA over the

course of a project:

– An insurance company is proposing changes to the way

Insurance Claims are managed.

– The BA has been brought in to facilitate the business

process improvement initiative and see it through IT

system requirements analysis.

– Here is how the tools and standards are used as the

project progresses:


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Initiation

During Initiation:

– High Level Requirements Documentation

is created.

– It provides the business context for the

initiative and enough detail to estimate

the size of the IT effort.


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High Level Requirements Documentation

Documentation contains the following

elements:

– Business use-case diagram

– Public Business Process Models (Facades)

– Private Business Processes (Cross-functional

workflow)

– System Use-Case Diagrams

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Business use-case diagram


Customer

Manage claim

Finance

Policy

Management

Customer Service Rep

Manager Customer Services Adjuster

As-Is To-Be

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Public Business Process (Business Use-Case Specification)

As-Is To-Be

Public

Process:

Manage

claim


48 Noble Inc. Official Curriculum

Business Use Case: Manage a Claim

Description

Process a claim against an insurance policy.

Actors Business actors: Customer, Policy Management, Finance

Post-conditions

Metrics Claims per day

% errors

Repeatability

Claim Resolution sent to Customer.

Successful Claims result in Payment request sent to Finance.

As-Is To-Be

Business Use-Case Description (Specification)

more …

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Business Use-Case Description (Specification)

Business Use Case: Manage a Claim

Basic Flow

1. Customer submits claim.

2. Claims receives the claim.

3. Claims verifies policy coverage.

1. Claims sends ‘Check coverage’ message (request) to Policy Management and waits for a response.

4. Claims approves the claim.

1. Claims sends ‘issue payment’ message to Finance.

2. Claims sends ‘approved’ message (claim resolution) to Customer.

The use case ends.

As-Is To-Be

Alternate Flows

4a) Claim denied:

.1 Claims sends ‘denied no coverage’ message (claim resolution) to Customer.

The use case ends.

Open issues: 1. What happens if claim is denied at later stage?

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Private Business Process (Business Use-Case Realization)

Private

Process:

Manage

claim

As-Is To-Be

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From Business to IT System Requirements

As-Is To-Be

Circled

activities

represent

IT tasks

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System Use-Case Diagram

As-Is To-Be

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Detailed Requirements Specification

System use cases are detailed according to

the level of risk associated with each one:

– Low-risk use cases require a brief description

only.

– Medium risk use case require a description of the

Basic (Normal) Flow and a list of Alternate

Flows (scenarios) and how they are to be dealt

with.

– High-risk use cases require full documentation.


System Use Case: Resolve a Claim

Description

Make final resolution on claim.

Actors Manager Customer Services

Customer

Finance

Pre-conditions

Post-conditions

Metrics 50 claim resolutions per day

80% claims approved with no changes

10% claims approved with changes

10% claims denied

Adjuster’s Report has been submitted.

An authorized Manager Customer Services user has been identified.

Claim Resolution sent to Customer.

Successful Claims result in Payment request sent to Finance.

As-Is To-Be

System Use-Case Description (Specification)

more …

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System Use-Case Description (Specification)

System Use Case: Resolve a Claim

Basic Flow: Approve claim with no changes 1. System displays claims awaiting final approval.

2. User selects claim.

3. System displays adjuster’s report.

4. User approves report with no changes.

5. System sends message to Finance to Issue payment.

6. System sends Claim Resolution (approved) to Customer.

The use case ends.

As-Is To-Be

Alternate Flows

4a) Override selected:

.1 User changes adjustment amount.

Continue at step 5.

4b) Claim denied:

.1 System sends Claim Resolution (denied) to Customer

The use case ends.

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System Use-Case Appendix: Activity Diagram

As-Is To-Be

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Part 4

Guidelines for BPM


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Guidelines and best practices Don’t over-analyze

Be only as formal as necessary

– Hand-drawn diagrams are sufficient for agile life cycles

Perform BPM regardless of formality of the SDLC and documentation

Diagrams for stakeholders use should be as simple as possible

– Stick to basic set of symbols

– Use notes instead of complex flows for hard-to-model sequencing rules

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Guidelines and best practices

Keep # activities on a diagram down by rolling up smaller activities into higher-level activities

Don’t expect to get it right the first time; develop models iteratively

– Begin with a ‘best guess’

– Refine through stakeholder feedback

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Both stakeholders and developers are in the room as model is developed

– BA is facilitator of communication, not an intermediary between both sides

BA role is not likely to be played by a dedicated

individual

Just-in-time analysis (vs. all upfront)

More frequent feedback

Less formal documentation

Estimation performed at lowest level available at the

time; refined as project proceeds


Adapting BPM for agile life cycles

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Top-Down Approach to Requirements Analysis

As-Is To-Be

Adjust inventory

Receive productReceiver

Sell productSales

<<include>>

<<include>>

Business Goals

User Goals

Detailed User Req’s

Detailed Specifications

1. Customer inserts card

2. Customer enters PIN

[ invalid PIN ]

[ up to 4 attempts ]

A1.1 System destroys card

[ 4th attempt ]

4. Customer enters transactions details

[ else ]

Basic Flow

Alternate Flow: A1

Alternate Flow: A2

3. System verifies PIN

5. System verifies transaction

A2.1 System displays funds available

[ insufficient funds in account ]

6. System ejects ATM Card

7. System dispenses funds

8. System debits source account

System use case: Withdraw Funds [ Basic Flow 1. The customer inserts a card. 2. The customer enters a PIN. 3. The system verifies the PIN. (A1) 4. The customer enters transactions details. 5. The system verifies the transaction. (A2) Alternate Flows A1 Invalid PIN: A1.1 The system gives the customer 3 chances to supply a correct PIN,

after which the system destroys the card. A2 Insufficient funds in account: A2.1 The system displays the funds available for withdrawal. Continue at Step 4.

Alistair Cockburn, 2000

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End-to-end business processes entered into the Product Backlog as epic user stories by Chief Product Owner (CPO)/ Portfolio Manager.

BPM models created for high to medium priority/risk epic user stories modeled to derive small user stories (system use case scenarios)

User stories entered into Product Backlog; divided amongst teams

Lower-level models are created as development nears

“Integration/Gap” Team focuses on interfaces between Teams

– Dedicated members or virtual team

– Looks for requirements that have fallen between teams

– Responsible for integration testing


Adapting BPM for large scrum projects

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Any questions?

Interest in Noble Courses?

For more information, please

contact Noble Inc. at:

[email protected]

Or visit our Web-site at

www.nobleinc.ca

The Leader in Open Source

Business Process Management

Mac McConnell

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Documents

Business Process Modeling Across the Life ... - Modern Analystmedia.modernanalyst.com/2013-02-12 SLIDES-Howard... · Business Process Modeling Across the Life Cycle ... •Unified