Identifikasi Proses

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I Made Ardwi Pradnyana

1
 Process Identification in the BPM
Lifecycle
Process
Management Processes

Define Vision Develop Strategy Implement Manage Risk

Strategy

Examples for BPM lifecycle and process mining identification Core Processes

Procure Procure Market Deliver

Manage
Customer
Materials Products Products Products
Service

35h B 30h Support Processes

15h Process architecture Manage Personnel

Manage
Information Manage Assets

A E
D
5m 3m 5m 10m 30m 2h 10m

15m
C
1.5h 10min
Conformance and Process As-is process
performance
discovery model
insights

A B C D E

Process Process
monitoring analysis

Executable Insights on
process weaknesses and
model their impact

Process Process
implementation To-be process redesign
model
Process identification
What?
1. Identify an organization’s business processes
2. Prioritize their management based on certain criteria

Why?
1. Understand the organization
2. Maximize value of BPM projects
1. Designation step
• Enumerate main processes Process
• Determine process scope Architecture

2. Prioritization step (aka Process selection)

Prioritize processes based on:
Prioritized
• Importance
Process
• Health Portfolio
• Feasibility

After Davenport
(1993)
Process Enumeration
“Most businesses have just three core processes:
1. Sell stuff
2. Deliver stuff
3. Making sure you have stuff to sell and deliver”

Geary Rummler
Porter: Types of processes

Management
Processes

Customers / Stakeholders
Suppliers / Partners

Core Processes

Support Processes

After Michael Porter (1985)

Example: core, support and management processes
Wholesaler
Core processes
• Sales (lead-to-quote, quote-to-order, order-to-cash)
• Purchase-to-Pay (direct procurement, e.g. supplies
replenishment)
•…
Support processes
• Purchase-to-pay (indirect procurement, e.g. parts
replenishment, operational resources replenishment…)
• HR (policies update, recruitment, induction, probation…)
•…
Management processes
• Suppliers management (suppliers planning, suppliers
acquisition…)
• Logistics management (logistics planning, logistics
controlling…)
•…
Relations between core, support, mgt
processes
Example: process architecture
Wholesaler

Strategic
Management

Logistics Suppliers
Management Management

Warehouse Demand
Management Management
Process
Management processes
group

Direct
Sales Distribution
procurement

Marketing Service
Core processes

Indirect
Finance IT HR
procurement
Support processes
Example: process architecture
Insurance company

Strategic
Management

Corporate Market Investor

Development Development Relations
Management processes

Risk Assessment & Management

Marketing & Sales

Underwriting Policy Claims

Management Servicing Management

Payments Collection and Disbursement

Assets Management
Core processes

Finance/ Legal/
Reinsurance IT HR
Treasury Audit
Support processes
Exercise: classify by process type
These groups of processes are typically performed at a
university. Categorize each process group as core,
support or management
Sport Indirect
HR
services procurement

Strategic Teaching
Management award courses

IP
Marketing
Management

Course Additional
Management services mgt

Language Admission IT
training

Market Teaching professional

management courses
Solution: identify process types
Process scoping
Processes are interdependent insights into
interrelations required
• Specialization: general – special product/service
• Horizontal: upstream – downstream processes and their value chains
• Vertical: main processes – sub-processes

Process architecture
 Value chain modeling
• Chain of processes an organization performs to
deliver value to customers and stakeholders
• More generally, a mechanism to group high-level
business processes according to an order relation
(can be applied to core, support and management
processes) business
process

Procure-to-service

order
relation
Guidelines to identify horizontal boundaries in value
chains
1. Change of key business object in the process
2. Change of granularity of main business object
3. Change in frequency/time
4. Change in intermediate outcome/resolution/objective
Example: value chain
Wholesaler
Core processes
Typical value chains for core processes
Think around three main steps:
• Imagine it (design new product/service)
• Build it (source, assemble, deliver product/service)
• Sell it (market, sell, service product/service)

Example:
Stocked Producer
products:

Specializations
MTO
products:

ETO
products:
Example: value chains for service provider
IT service provider
Example: value chain of non-core processes
Support processes

HR:

Accounting:

Management processes

Suppliers
management:

Risk
management:
Example: process architecture & value chains
Wholesaler

Strategic
Manage
WarehousmentLogistics
e Manage
Managem
Suppliers ment
Demand
ent
Managem Manage
ent ment
Management processes
Chevron: Direct
Distribu Box:
collapsed procurem Sales
tion groups
ent Procure-to-Service
value chain processes/
Marketi
Service
Core processes ng value chains
Indirect
Finance procurem IT HR
ent
Support processes
Alternative: process architecture – groups
Consultancy Firm

Expanded
process
group
Typical artifacts for vertical scoping
Value chains
Chains of processes. Stay at a high level. Rule of thumb: 3-7 processes
• Procure-to-service, Risk management

(Root/Main) Processes
Build up value chains and affect each other. They are abstract
• Lead-to-quote, Quote-to-order, Order-to-cash

Subprocesses Typical focus of Process enumeration

Build up processes. They are detailed, involve multiple activities and can be layered on
different levels of abstraction (i.e. sub-subprocesses)
• Order shipment, invoicing

Process tasks
Build up processes and sub-processes. They are atomic and performed by human beings, IT
systems or equipment
• Approve invoice
Process architecture: hierarchical view

Level 1
Process
Landscape

Process hierarchy
Level 2
Main
Processes
(e.g. BPMN)

Level 3+
Subprocesses, Tasks
(e.g. BPMN)
How many levels in the process architecture?

24
Example: hierarchical process architecture
Insurance company

Level 1
Strategic
Management
Corporate Market
Developm Investor
Developme Relations
nt ent
Management processes

Risk Assessment & Management

Marketing & Sales
Underwriting Policy Claims
Management Servicing Management
Payments Collection and Disbursement
Assets Management
Core processes
Finance/ Legal/
Reinsurance IT HR
Treasury Audit
Support processes
Example: hierarchical process architecture
Insurance company
Level 2

Strategic Corporate Marketing Investor Process

Management development development relations
group
Define
Define offering Plan
business concept Design & manage
and customer investor
& corporate policies
value proposition relations
long-term vision
Develop Build Process
Manage Define pricing
business investor subgroup
knowledge strategy
strategy relations

Manage Manage Define and Manage

strategic change & manage investor
initiatives improvement channel strategy relations

Manage Communicate
partners with stakeholders

Manage
investments &
divestments

Management processes
Example: hierarchical process architecture
Develop Define offering
Process
Insurance company business
strategy
and customer
value proposition subgroup
Define
Develop overall
offering and
mission statement
positioning

Main
Evaluate strategic Develop value
options proposition process
Level 3
Select
long-term Validate value
business proposition
strategy
Coordinate
functional and Develop
operational new branding
strategies
Align
functional and
operational
strategies
Create
organisational
design

Develop
organisational
goals

Formulate
business unit
strategies

Management processes
Example: hierarchical process architecture
Insurance company
Level 4
Develop overall
mission Main
statement process
Define
current business

Formulate Subprocess
mission

Communicate
mission

Management processes
Designation via reference models
A reference model is used as a template to design the process architecture

Examples:
• Information Technology Infrastructure Library (ITIL)
• Supply Chain Operations Reference Model (SCOR)
• Process Classification Framework (PCF)
• Control Objectives for Information Technology (COBIT)
• Value Reference Model (VRM)
• Voluntary Interindustry Commerce Solutions (VICS)
• eTOM Business Process Framework
• Performance Framework
Example: APQC Process Classification Framework (PCF)
• Industry-neutral enterprise model
• Open standard for benchmarking
• Four levels
• Categories
• Process group
• Process
• Activity
APQC PCF Overview

Categ
ory
 APQC Classification Framework

Group

Activity

Process
Prioritization (aka Process Selection)
1. Importance
Which processes have greatest impact on the organization‘s strategic
objectives?
2. Health (or Dysfunction)
Which processes are in deepest trouble?
3. Feasibility
Which processes are most susceptible to successful process
management?

Prioritized process portfolio

Hammer, Champy (1993)

Example: prioritized process portfolio
Financial institution

Short-term action Feasibil

High
Loan Rating ity
Low
controlling Contract
preparation Medium
Loan
decision Loan market High
Importa

evaluation
nce

Handling of
payments Loan
planning
Loan
application
Low
Poor
Heal Good
Possible th Strategic fit?
Prioritization
1. Importance
Which processes have greatest impact on the organization‘s strategic
objectives?
2. Health (or Dysfunction)
Which processes are in deepest trouble?
3. Feasibility
Which processes are most susceptible to successful process
management?

Prioritized process portfolio

Hammer, Champy (1993)

Example: prioritized process PICK
chart
Financial institution

Short-term action
High Feasibility
Loan Rating
Low
controlling Contract
preparation Medium
Loan
decision Loan market High
Importance

evaluation
Handling of
payments Loan
planning
Loan
application
Low
Poor Good
Possible Strategic fit?
Health