| I am often asked “What’s the difference | | | | With the “AS IS” discovered the next step |
| between workflow and BPM? Are they not the same | | | | is to develop an improved future state process |
| thing?” | | | | design. The future state design is referred to as the |
| | | | | “TO BE”. The end goal of the business |
| Vendors typically offer either workflow or Business | | | | analyst is to evolve the AS IS to a TO BE design |
| Process Management software. Some larger | | | | using various optimization techniques. |
| software vendors offer both. Workflow is standard | | | | |
| functionality included in many Enterprise Content | | | | Identifying issues and opportunities for improvement |
| Management (ECM) software systems. Once you | | | | within the existing process is often a goal of the |
| understand workflow you’ll understand why. | | | | business analyst throughout their interviews with the |
| | | | | subject matter experts. By understanding the |
| A Business Process Management suite of tools | | | | properties of the AS IS process along with capturing |
| (BPMS) is an alternative to workflow. A BPMS can | | | | any issues or opportunities for improvement, the |
| be used in lieu of workflow where additional | | | | business analyst will gain an understanding of what |
| functionality is required. It’s important to | | | | process design changes are required.. |
| understand how these two products differ. | | | | |
| What is Workflow? | | | | Another goal of the business analyst is to |
| Unstructured content, better known as an electronic | | | | substantiate any process design changes by |
| image of paper document, has a specific lifecycle | | | | performing a gap analysis. The gap analysis compares |
| within a business. In this case we define a | | | | the AS IS with the TO BE process model. A |
| “lifecycle” as the period of time a piece of | | | | quantitative gap analysis involves process properties. |
| content is useful to a business operation. An example | | | | Common properties used in a gap analysis are cycle |
| of unstructured content might be the electronic | | | | time and process costs. |
| image of a purchase order. A purchase order is a | | | | |
| common document used by many businesses. | | | | Let’s assume using our purchase order example |
| | | | | the office supply vendor has completed their |
| Electronic document images flow between the | | | | discovery of the order entry AS IS process. Then |
| various workers of a business. The workers need to | | | | they performed a gap analysis of the AS IS versus |
| reference the document images to accomplish their | | | | the TO BE process designs. Their analysis determined |
| work. Workflow is nothing more than the work tasks | | | | the order entry process can be streamlined by |
| a piece of content is involved in over its lifecycle. | | | | eliminating two unnecessary activities, by doing |
| | | | | another two activities in parallel and by fully |
| Let’s use as an example a purchase order | | | | automating three manual activities. |
| scenario. If we follow the steps a purchase order | | | | |
| takes throughout its lifecycle we can understand | | | | Before the business analyst gives the TO BE process |
| what “workflow” is. Imagine a company | | | | design requirements to the development group for |
| needs to replenish their stock of office supplies. They | | | | implementation, the business analyst might perform |
| send a purchase order to an office supply vendor for | | | | simulations of the TO BE design. Simulations might be |
| the supplies they require. The office supply vendor | | | | run to determine how the new process design will |
| receives the customer’s order. The office supply | | | | react to increases in the order volume. Using a |
| vendor’s subsequent processing of the order is | | | | variety of “what if” scenarios the TO BE |
| an example of a workflow. | | | | order entry process design is proven out as an |
| | | | | optimum new process design. The development |
| Once received and prepared, the purchase order is | | | | group then creates a new order entry application |
| scanned to create an electronic image of it. This is | | | | from the business analyst’s TO BE process |
| where the purchase order document workflow | | | | design. |
| begins. After the image is created it is sent to the | | | | |
| order entry clerk’s work queue of orders to be | | | | Now, when the office supply vendor receives a |
| processed. The clerk views the purchase order | | | | purchase order it is immediately scanned and specific |
| image. From the image the clerk enters the products | | | | information is automatically recognized and extracted |
| and quantities into an order processing application. | | | | from the paper document. Once extracted the data |
| The application forwards the order and the | | | | is used to validate customer information on the |
| supporting purchase order image to the warehouse | | | | purchase order directly with information from a |
| for fulfillment. | | | | Customer Relationship Management (CRM) application. |
| | | | | Based on the TO BE order entry process, if the |
| The entered order and purchase order image are | | | | purchase order is from a new customer the |
| routed to the work queue of a warehouse clerk. The | | | | customer information will be automatically added to |
| clerk will have the items on the order picked from | | | | the CRM database. This newly automated step was |
| warehouse stock. Once collected the office products | | | | proven during analysis to save not only time but also |
| are packaged by a shipping clerk to be sent to the | | | | money. Another aspect of the TO BE design is that |
| customer. Using the order management application | | | | the office supply vendor can now accept orders |
| the shipping clerk manually confirms the order has | | | | directly from their web site. |
| been completed and it is ready for shipment. As one | | | | |
| last check the clerk views the packaged order and | | | | Product information on the purchase order is |
| compares it to the products listed on the image of | | | | automatically recognized and extracted and input |
| the original purchase order. | | | | directly to the order management application. The |
| The next step in the workflow is the shipping clerk | | | | order is validated for completeness and correctness |
| releasing the package for shipment. The shipping clerk | | | | now in a fully automated manner. If the order passes |
| then forwards the order along with the purchase | | | | all checks an electronic message is generated for the |
| order image to the billing department. The billing | | | | items being ordered to be picked from warehouse |
| department generates an invoice which will be sent | | | | stock. Once picked the products are packaged and |
| to the customer. The billing clerk electronically marks | | | | shipped to the customer. An invoice is automatically |
| the order as completed and archives the purchase | | | | generated and delivered electronically to the |
| order image in an electronic folder. This is the final | | | | customer who placed the order as soon as the order |
| step of our purchase order workflow example. Our | | | | is shipped. The customer also receives an email with |
| example shows workflow as the automation of | | | | a delivery status. |
| paper flowing through a process. Instead of moving | | | | |
| paper physically, we’re moving images of that | | | | Using BPMS our office supply vendor will also |
| paper electronically through a sequence of work | | | | implement monitoring of their new order entry |
| tasks. Now let’s look at Business Process | | | | process. They can closely manage the cycle time of |
| Management. | | | | their process from order receipt to shipment. They |
| What is Business Process Management? | | | | implement Business Activity Monitoring (BAM) to |
| Business Process Management (BPM) is a business | | | | instrument their new order entry application. |
| discipline. It encompasses a methodology which is | | | | |
| used to continuously optimize the way a business | | | | Using BPM the office supply vendor has the ability to |
| operates. To satisfy comprehensive BPM | | | | re-analyze their order entry process model anytime |
| requirements a suite of integrated business process | | | | their business environment changes. Now instead of |
| tools (a BPMS) is required. A BPMS enables the | | | | analyzing process metrics gained during interviews, |
| understanding, management and optimization of | | | | process analysis will be based on metrics measured |
| business processes. Let’s again use our purchase | | | | during process execution. This is why a truly |
| order example but this time let’s put it in the | | | | integrated BPMS is important. |
| context of BPM. | | | | |
| | | | | An integrated BPMS ensures any re-analysis will be |
| The objective of workflow is to replace the physical | | | | based on real world execution statistics. Execution |
| movement of documents with the electronic | | | | data is collected during the monitoring (BAM) of the |
| movement of documents in a pre defined sequence. | | | | order entry application. |
| The objective of BPM is overall business | | | | Conclusion |
| management and optimization using process centric | | | | BPM is understandably mistaken as workflow and visa |
| technology. | | | | versa. Typically companies start with the |
| | | | | implementation of an Enterprise Content Management |
| BPM starts with the quantitative analysis of existing | | | | (ECM) system. The goal of which is to reduce their |
| business processes. This type of process analysis is | | | | overall use of paper documents. A subsequent phase |
| referred to as Business Process Analysis (BPA). To | | | | of an ECM implementation is to replace the physical |
| perform BPA you first need to establish a baseline of | | | | movement of documents with an electronic |
| characteristics for your existing processes. The | | | | orchestration of document images. This is workflow. |
| baseline is established by discovering in depth details | | | | |
| of the current state of the business processes. | | | | BPM provides more than electronic document |
| | | | | movement. BPM is a technology-based approach for |
| This current state, referred to by business analysts | | | | understanding, managing, and optimizing business |
| as the “AS IS”, is discovered by the business | | | | processes. Some companies that start with workflow |
| analyst interviewing various subject matter experts | | | | and then graduate to BPM. Some start with BPM. |
| who are responsible for specific business processes. | | | | What did you do? |
| | | | | |