Lecture 1: Introduction - 4 Perspectives On Business Processes Flashcards
Elements of Business Process Management
Modelling
Analysis
Change
Modelling
Goal: formal documentation of existing business processes
Methods/Techniques: UML, EPK, BPMN,Petrinets, System Dynamics
Analysis
Goal: Identification of potentialimprovement in formally described processes
Methods: Deterministic processflows, queuing systems, simulation
Change
Goal: Improving real world
Methods: BPR, Quality Management
Theories: Routines, organizational learning, resistance
Historical Backdrop of Business Processes
Prehistoric times: worker’s focus on entire process for allproducts, worker’s capabilities pure generalist
Ancient times/Middle ages: worker’s focus on entire process fora single product, capabilities intermediate specialist
Industrial times: single part of a process for a single product,capabilities equal pure specialist
What is a Business Process?
- Multiple diverse definitions depending onworld-view
- Different views reveal different aspects
However:
- Business processes can be quantified – instances canbe counted, e.g. employee hires, items produced
- Business functions (in Taylor’s sense) are commonlymistaken for business processes, but cannotnecessarily be quantified, e.g. marketing, finance, logistics
4 perspectives on BPM 1/2
Deterministic Machines:
- Metaphor of the organization as bureaucratic machines
- Modelling notation: Static modelling (BPMN/DCR Graph/SD)
- Keyreference: Morgan (1997)
Dynamic Complex Systems:
- Metaphor of the organization as an organism
- Modelling notation: Discrete event simulation (BPMN/DCR Graph)
- Keyreference: Morgan (1997)
4 perspectives on BPM 2/2
Interacting feedback loops:
- Extendsthe complex dynamic system viewpoint by highlighting feedback structures
- SystemDynamics
- Keyreference: Sterman (2000)
Social Constructs:
- Processesas enacted by subjects with different valuesm norms, etc.
- Modellingnotation: Soft business process modelling
- Keyreference: Checkland (1981; 1990; 1998), Langley (1999)
Processes as Deterministic Machines
-Builds on Smith’s and Taylor’s scientific management and Porter’s functional organizational view
- Business processes are static sequences of well-defined activities or tasks
- Activities are performed by “human machines” that convert inputs into outputs in order to accomplish clear objectives
- Emphasis on:
- Structure(tasks, activities, and areas of responsibilities)
- Procedures(constraints and rules of the work)
- Goals(nature of the output to be obtained)
Processes as Deterministic Machines
- Main critiques
- Mechanistic view of processes as rational and technical neglects human and organizational issues: Strong evidence that this causes project failure
- Provides only static models =>simplification of process behavior by providing only an idealized snapshot
Processes as Complex Dynamic Systems
- Focus on the complex, dynamic and interactive behavior in business processes
- Metaphor of the organization as an organism, i.e. as open systems interacting with their environment
- Effectiveness (e.g.quality and service level) is more important design criteria than efficiency (optimizing task structure)
- Discrete event simulation models dynamic behavior in terms of entities (e.g.items and resources) and discrete events(e.g. begin task and end task)
Processes as Complex Dynamic Systems
-Main critiques
- Rational approach to business processes means social and political issues might be neglected => humans are only resources for performing tasks
- Time and skill cost of building computer models of simple systems might outweigh the value of modelling
Processes as Interacting Feedback Loops
- From discrete sequences of events to continuous flows => higher level of abstraction
- Adding feedback loops through System Dynamics (Sterman, 2000) can be done in two ways:
- Qualitative: explicating structural features of the process through 1) causal loop diagrams and 2) stack-and-flow diagrams
- Quantitative: Turning diagrams into integral equations to simulate quantitative estimates of system effects
- long term effects of feedback insystem structure rather than efficiency of linear sequences of discrete events
Processes as Interacting Feedback Loops
-Main critiques
- Formalising human behaviour could lead to de-humanisation of BPM -> SD models can be built collaboratively and with great sensitivity
- System dynamics approaches are easy to understand at a superficial level, but may be difficult to use properly =>best applied both qualitatively and quantitatively
Processes as Social Constructs (not relevant for this course)
- Business processes are enacted by people with different values, expectations and possibly hidden agendas
- Business processes do not exist in any objective or concrete sense, but are a product of judgement and (inter-)subjective construction by
- Focus on uncovering the subjectivevalues, agendas etc underlying the construction of the notion of a business process
- As we deal with business processesin the context of information systems, we will not go into depth with this view
