267515_Marlon Dumas, Marcello La Rosa, Jan Mendling, Hajo A. Reijers - Fundamentals of Business Proc - Fundamentals of Business Process Management

267515_Marlon Dumas, Marcello La Rosa, Jan Mendling, Hajo A. Reijers - Fundamentals of Business Proc

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Unformatted text preview: Fundamentals of Business Process Management Marlon Dumas · Marcello La Rosa Jan Mendling · Hajo A. Reijers Second Edition Fundamentals of Business Process Management Marlon Dumas • Marcello La Rosa • Jan Mendling • Hajo A. Reijers Fundamentals of Business Process Management Second Edition 123 Marlon Dumas Institute of Computer Science University of Tartu Tartu, Estonia Marcello La Rosa School of Computing and Information Systems The University of Melbourne Melbourne, Australia Jan Mendling Institute for Information Business Vienna University of Economics and Business Vienna, Austria Hajo A. Reijers Department of Computer Sciences Vrije Universiteit Amsterdam Amsterdam, The Netherlands ISBN 978-3-662-56508-7 ISBN 978-3-662-56509-4 (eBook) Library of Congress Control Number: 2018934715 © Springer-Verlag GmbH Germany, part of Springer Nature 2013, 2018 This work is subject to copyright. All rights are reserved by the Publisher, whether the whole or part of the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfilms or in any other physical way, and transmission or information storage and retrieval, electronic adaptation, computer software, or by similar or dissimilar methodology now known or hereafter developed. The use of general descriptive names, registered names, trademarks, service marks, etc. in this publication does not imply, even in the absence of a specific statement, that such names are exempt from the relevant protective laws and regulations and therefore free for general use. The publisher, the authors and the editors are safe to assume that the advice and information in this book are believed to be true and accurate at the date of publication. Neither the publisher nor the authors or the editors give a warranty, express or implied, with respect to the material contained herein or for any errors or omissions that may have been made. The publisher remains neutral with regard to jurisdictional claims in published maps and institutional affiliations. Cover illustration: M.C. Escher’s “Drawing Hands” © 2017 The M.C. Escher Company-The Netherlands. All rights reserved. Printed on acid-free paper This Springer imprint is published by the registered company Springer-Verlag GmbH, DE part of Springer Nature. The registered company address is: Heidelberger Platz 3, 14197 Berlin, Germany To Inga and Maia – Marlon To Chiara, Lorenzo, and Valerio – Marcello To Stefanie – Jan To Maddy, Timon, and Mayu – Hajo Foreword Business processes represent one of the core assets of organisations for many reasons. They have direct impact on the attractiveness of products and services, influence customer experiences and ultimately revenue in case of corporations. Processes orchestrate corporate resources to fulfil these external demands and therefore are a key factor determining the cost-to-serve and operational efficiency. In particular, they determine tasks, jobs, and responsibilities and by this, shape the future work of every employee and machine along a business process. Processes are the arterial system within organisations and in inter-organizational supply networks. Consequently, any process failure can bring corporate life and the entire process ecosystem to a standstill. Processes determine the potential and speed of an organization to adapt to new circumstances and to comply with a fast-growing number of legislative requirements. However, unlike other corporate assets such as products, services, workforce, brand, physical or monetary assets, the significance of business processes had not been appreciated for a long period. Despite the fact that processes are the lifeblood of an organization, they did not develop the status of a primary citizen in boardroom discussions and managerial decision-making processes until the very end of the twentieth century. The growing demands for globalization, integration, standardization, innovation, agility, and operational efficiency, coupled with the opportunities raised by digital technologies, have finally increased the appetite for reflecting on and ultimately improving existing as well as designing entire new business processes. In response, a comprehensive body of tools, techniques, methods, and entire methodologies to support all stages of the business process lifecycle has emerged over the past two decades. It is called Business Process Management (BPM), and it consolidates a plethora of tools and approaches coming from diverse disciplines, including Industrial Engineering, Operations Management, Quality Management, Human Capital Management, Corporate Governance, Computer Science, and Information Systems Engineering. “Fundamentals of Business Process Management” takes on the challenge of distilling the current landscape of BPM methods and tools succinctly and vii viii Foreword pedagogically. It brings meaningful order and consistency into approaches that often have been developed, discussed, and deployed in isolation. It derives its merits from its firm foundation in the latest applied BPM research. Relying on scientifically sound practices means capitalizing on evidence rather than depending on confidence. This clearly differentiates this much-needed publication from many of its predecessors. In particular, it gives BPM the credibility that a still growing discipline requires. The book itself is also a compelling showcase for the importance of a new class of processes, i.e. internationally distributed, complex, and flexible business processes. In this case, it is the process of jointly writing a book involving four authors in four different countries. The team has addressed this challenge brilliantly and the outcome is an impressive compilation of the individual strengths of each author grounded in a shared understanding of the essential BPM fundamentals and a common passion for the topic. It has been no surprise that the first edition of the book had a tremendous uptake and gained rapid adoption worldwide. The hundreds of institutions that have adopted the book in their teaching, and the tens of thousands of students and professionals who have taken the Massive Open Online Course (MOOC) developed on the basis of this book, are a testimony of both the growing demand for BPM education and the technical and pedagogical value of the book. As the field evolves and matures, a second updated and extended edition is most welcome. The second edition significantly expands the reach of the first one with a more in-depth coverage of process architecture, process discovery, process innovation, process analytics, BPM strategic alignment, and governance, all of which are essential ingredients in a sustainable BPM program. I have no doubts that this second edition will contribute to shaping the toolset, and even more the mindset, of the current and future generations of BPM professionals. The book will continue to be the standard reference for everyone who is keen to learn more about and to embrace the fascinating discipline of Business Process Management. Brisbane, Australia February 2018 Michael Rosemann Preface “Get the fundamentals down and the level of everything you do will rise.” Michael Jordan (1963–) Almost 5 years ago, we decided to join forces and deliver a textbook on Business Process Management (BPM). Since then, BPM has grown more important than ever. Businesses around the world are carrying out BPM initiatives with the aim to outperform their competitors or meet the demands of regulatory authorities. At the same time, a lively academic community is pushing the boundaries of the discipline: computer scientists, management scientists, and engineers add new elements to its repertoire, which are eagerly being picked up by practitioners. We felt that having a textbook available that organizes the broad spectrum of the topic would help us teaching at our institutions about the fascinating concepts, methods, and technologies behind BPM. What is more, we hoped that a textbook on BPM would also enable a broader audience beyond the students in our own classrooms to learn about its marvels. When the first edition of the book hit the shelves in early 2013, it became clear to us that our textbook met an unsaturated demand. The book quickly became the basis for BPM courses at around 200 universities across the continents. Lecturers around the world reached out to us to discuss the material and a community of BPM educators evolved from these interactions. We traveled to various institutions ourselves to deliver guest lectures on the basis of the book and, from time to time, also stepped into the corporate world to preach the BPM gospel. The demand was such that we were compelled to produce a Massive Open Online Course (MOOC) based on the textbook, which brought together over 7,500 participants in its first delivery and over 25,000 in total after several deliveries. In a sense, our mission seemed to be accomplished. But then again, we knew it was not. After all, BPM is a cross-disciplinary field that is continuously evolving. The boundaries of what we previously saw as the fundamentals of the discipline have moved in the five years since the first edition of our book appeared. On the positive side, we could see the emergence of new methods, the evolvement of important standards, and a maturation of BPM technology. However, we also saw how difficult some organizations found it to successfully apply BPM, as accentuated by a number ix x Preface of failed BPM projects. In other words, it was time to carry out a major update to our book to reflect on such developments and insights. The result of our efforts in this direction is this second edition. Compared to the first edition of the book, the new edition incorporates a range of extensions and improvements. The highlights are as follows: • The roots of BPM are more thoroughly discussed, in particular the relationship with the concept of Adam Smith’s division of labor; • Major rework took place to better illustrate the design of a process architecture and the way performance measures can be integrated in such an architecture; • We extended our treatment of process modeling with the modeling standards CMMN and DMN; • We enhanced the coverage of process discovery and modeling methods; • To the wide range of process analysis techniques already present in the first edition, we added waste analysis, stakeholder analysis, capacity analysis, and the critical path method; • The treatment of redesign methods has been vastly expanded with a range of methods, both old and new, that were not covered in the previous edition; • A new chapter has been added to provide an overview of both domain-specific (ERP, CRM) and domain-agnostic process-aware information systems; • The overview of process monitoring techniques has been substantially revised and enhanced to incorporate recent developments in the field of process mining; • A new chapter has been added to introduce BPM as an enterprise capability. This chapter expands the scope of the book to encompass topics such as the strategic alignment and governance of BPM initiatives. Some things have not changed. Every chapter of the textbook still contains a number of elaborated examples and exercises. Some of these exercises are spread throughout the chapter and are intended to help the reader to incrementally put into action, via concrete scenarios, concepts and techniques exposed in the chapter. These “in-chapter” exercises are paired with sample solutions at the end of the chapter. In addition, every chapter closes with a number of further exercises for which no solution is provided. Instructors may wish to use these latter exercises for assignments. We are happy to announce that through the various extensions, over 40 additional examples and exercises have become part of this second edition. The reader will also note that most chapters contain “highlighted boxes” that provide complementary insights into a specific topic, some of them brand new in comparison to the first edition. These boxes are tangential to the flow of the book and may be skipped by readers who wish to concentrate on the essential concepts. Similarly, every chapter closes with a “Further Readings” section that provides external pointers for readers wishing to deepen their understanding of a specific topic. These sections have been updated to include the most recent developments in the various areas. What is also still around is our website, which has the primary aim to collect course materials: . This website includes slides, lecture recordings, sample exams, links to related resources, and additional Preface xi exercises. The interested reader can also find in the website a list of institutions where the book is used in class. There is an active community of instructors who have adopted the book and who regularly share their insights via a message forum. New instructors who adopt this book in their classes can request to be added to this community. By joining the community, instructors get access to a wealth of instructors-only material. This book draws from the work of many of our colleagues in the BPM field. We would like to thank Han van der Aa, Wil van der Aalst, Adriano Augusto, Thomas Baier, Saimir Bala, Wasana Bandara, Alistair Barros, Anne Baumgraß, Boualem Benatallah, Jan vom Brocke, Cristina Cabanillas, Fabio Casati, Raffaele Conforti, Claudio Di Ciccio, Gero Decker, Remco Dijkman, Boudewijn van Dongen, Dirk Fahland, Avigdor Gal, Paul Harmon, Arthur ter Hofstede, Henrik Leopold, Fabrizio Maria Maggi, Monika Malinova, Fredrik Milani, Michael zur Muehlen, Markus Nüttgens, Fabian Pittke, Johannes Prescher, Artem Polyvyanyy, Manfred Reichert, Jan Recker, Stefanie Rinderle-Ma, Michael Rosemann, Stefan Schönig, Matthias Schrepfer, Priya Seetharaman, Sergey Smirnov, Andreas Solti, Lucinéia Heloisa Thom, Peter Trkman, Irene Vanderfeesten, Barbara Weber, Ingo Weber, Matthias Weidlich, Mathias Weske, and J. Leon Zhao, who all provided constructive feedback on drafts of earlier versions of this book or inspired us in other ways while we were writing it. Last but not least, we are grateful to the numerous instructors and students who reported errata in the first edition of the book and who made useful suggestions. Our thanks, in particular, go to Ahmad Alturki, Anis Charfi, Dave Chaterjee, Manfred Jeusfeld, Worarat Krathu, Ann Majchrzak, Shane Tomblin, Phoebe Tsai, Inge van de Weerd, and Chris Zimmer. Tartu, Estonia Melbourne, Australia Vienna, Austria Amsterdam, The Netherlands February 2018 Marlon Dumas Marcello La Rosa Jan Mendling Hajo A. Reijers Contents 1 Introduction to Business Process Management . . . . .. . . . . . . . . . . . . . . . . . . . 1.1 Processes Everywhere . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . 1.2 Ingredients of a Business Process . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . 1.3 Origins and History of BPM . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . 1.3.1 The Functional Organization . . . . . . . . .. . . . . . . . . . . . . . . . . . . . 1.3.2 The Birth of Process Thinking.. . . . . . .. . . . . . . . . . . . . . . . . . . . 1.3.3 The Rise and Fall of BPR . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . 1.4 The BPM Lifecycle . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . 1.5 Recap . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . 1.6 Solutions to Exercises . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . 1.7 Further Exercises.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . 1.8 Further Readings .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . 1 1 3 8 8 11 13 16 27 28 30 32 2 Process Identification.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . 2.1 The Context of Process Identification .. . . . . . . . .. . . . . . . . . . . . . . . . . . . . 2.2 Definition of the Process Architecture . . . . . . . . .. . . . . . . . . . . . . . . . . . . . 2.2.1 Process Categories . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . 2.2.2 Relationships Between Processes . . . .. . . . . . . . . . . . . . . . . . . . 2.2.3 Reuse of Reference Models.. . . . . . . . . .. . . . . . . . . . . . . . . . . . . . 2.2.4 Process Landscape Model . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . 2.2.5 The Example of SAP’s Process Architecture . . . . . . . . . . . . 2.3 Process Selection.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . 2.3.1 Selection Criteria . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . 2.3.2 Process Performance Measures .. . . . . .. . . . . . . . . . . . . . . . . . . . 2.3.3 Process Portfolio . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . 2.4 Recap . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . 2.5 Solutions to Exercises . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . 2.6 Further Exercises.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . 2.7 Further Readings .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . 35 35 41 41 42 45 48 55 56 56 59 64 65 66 69 72 xiii xiv Contents 3 Essential Process Modeling .. . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . 3.1 First Steps with BPMN . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . 3.2 Branching and Merging.. . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . 3.2.1 Exclusive Decisions . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . 3.2.2 Parallel Execution . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . 3.2.3 Inclusive Decisions. . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . 3.2.4 Rework and Repetition .. . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . 3.3 Business Objects . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . 3.4 Resources.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . 3.5 Process Decomposition .. . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . 3.6 Process Model Reuse . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . 3.7 Recap . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . 3.8 Solutions to Exercises . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . 3.9 Further Exercises.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . 3.10 Further Readings .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . 75 75 79 80 82 86 90 93 96 102 105 107 108 112 114 4 Advanced Process Modeling .. . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . 4.1 More on Rework and Repetition . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . 4.1.1 Parallel Repetition .. . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . 4.1.2 Uncontrolled Repetition . . . . . ....
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