business process silo Archives

What is business process modeling (BPM)? A visual representation of what your business does and how it does it. Why is having this picture important?

According to Gartner, BPM links business strategy to IT systems development to ensure business value. It also combines process/ workflow, functional, organizational and data/resource views with underlying metrics such as costs, cycle times and responsibilities to provide a foundation for analyzing value chains, activity-based costs, bottlenecks, critical paths and inefficiencies.

Every organization—particularly those operating in industries where quality, regulatory, health, safety or environmental issues are a concern—must have a complete understanding of its processes. Equally important, employees must fully comprehend and be accountable for appropriately carrying out the processes for which they are responsible.

BPM allows organizations to benefit from an easily digestible visualization of its systems and the associated information. It makes it easier to be agile and responsive to changes in markets and consumer demands,

This is because the visualization process galvanizes an organization’s ability to identify areas of improvement, potential innovation and necessary reorganization.

But a theoretical understanding of business process modeling will only get you so far. The following use cases demonstrate the benefits of business process modeling in real life.

Business process modeling (BPM) is a practice that helps organizations understand how their strategy relates to their IT systems and system development.

Business Process Modeling Use Cases

Compliance:

Regulations like the E.U.’s General Data Protection Regulation (GDPR) and the California Consumer Privacy Act (CCPA) are requiring businesses across industries to think about their compliance efforts. Business process modeling helps organizations prove what they are doing to meet compliance requirements and understand how changes to their processes impact compliance efforts (and vice versa).

The visualization process can aid in an organization’s ability to understand the security risks associated with a particular process. It also means that should a breach occur, the organization’s greater understanding of its processes and related systems means they can respond with greater agility, mitigate the damage and quickly inform affected parties as required specifically by GDPR.

In the case of an audit, BPM can be used to demonstrate that the organization is cognizant of compliance standards and is doing what is required.

This also extends to industry-specific other compliance mandates such as those in healthcare, pharmaceutical and the financial services industries.

The Regulatory Rationale for Integrating Data Management & Data Governance

The Democratization of Information:

Increasing an organizations ability to retain knowledge is another cross-industry use case for business process modeling. This use case benefits organizations in two key areas:

1. Democratization of information.

By documenting processes, organizations can ensure that knowledge and information is de-siloed and that the organization as a whole can benefit from it. In this case, a key best practice to consider is the introduction of role/user-based access. This way an organization can ensure only the necessary parties can access such information and ensure they are in keeping with compliance standards.

2. Knowledge retention.

By documenting processes and democratizing information, process-specific knowledge can be retained, even when key employees leave. This is particularly important in the case of an aging workforce, where an organization could suffer a “brain drain” as large numbers of employees retire during a short span of time.

Digital Transformation:

Once in a while, a technological revolution turns the nature of business on its head. The most recent and arguably most significant of which – although at this point it’s hard to argue – is the rise of data-driven businesses.

In a relatively short amount of time, the leaders in data-driven businesses were launched and stormed their way to the forefront of their respective industries – think Amazon, Netflix and Uber.

The result? Data is now considered more valuable than oil and industries across the board are seeing digital transformation en masse.

There’s a clear connection between business process modeling and digital transformation initiatives. With it, an organization can explore models to understand information assets within a business context, from internal operations to full customer experiences.

This practice identifies and drives digital transformation opportunities to increase revenue while limiting risks and avoiding regulatory and compliance gaffes.

Organizations that leverage BPM in their digital transformation efforts can use their greater

understanding of their current processes to make more informed decisions about future implementations.

And the use cases for business process modeling don’t stop there.

A better understanding of your organizations processes can also ease software deployments and make mergers and acquisitions (M&A) far easier to handle. Large organizations grow through M&A activity, and the combining of business processes, software applications and infrastructure when two organizations become one is very complex.

Business process modeling offers visibility into existing processes and helps design new processes that will deliver results in a post-merger environment.

The latest guide from the erwin Experts expands on these use cases and details how best to use business process modeling to tame your organization’s complexity and maximize its potential and profits.

With business process modeling (BPM) being a key component of data governance, choosing a BPM tool is part of a dilemma many businesses either have or will soon face.

Historically, BPM didn’t necessarily have to be tied to an organization’s data governance initiative.

However, data-driven business and the regulations that oversee it are becoming increasingly extensive, so the need to view data governance as a collective effort – in terms of personnel and the tools that make up the strategy – is becoming harder to ignore.

Data governance also relies on business process modeling and analysis to drive improvement, including identifying business practices susceptible to security, compliance or other risks and adding controls to mitigate exposures.

Choosing a BPM Tool: An Overview

As part of a data governance strategy, a BPM tool aids organizations in visualizing their business processes, system interactions and organizational hierarchies to ensure elements are aligned and core operations are optimized.

The right BPM tool also helps organizations increase productivity, reduce errors and mitigate risks to achieve strategic objectives.

With insights from the BPM tool, you can clarify roles and responsibilities – which in turn should influence an organization’s policies about data ownership and make data lineage easier to manage.

Organizations also can use a BPM tool to identify the staff who function as “unofficial data repositories.” This has both a primary and secondary function:

1. Organizations can document employee processes to ensure vital information isn’t lost should an employee choose to leave.

2. It is easier to identify areas where expertise may need to be bolstered.

Organizations that adopt a BPM tool also enjoy greater process efficiency. This is through a combination of improving existing processes or designing new process flows, eliminating unnecessary or contradictory steps, and documenting results in a shareable format that is easy to understand so the organization is pulling in one direction.

Silo Buster

Understanding the typical use cases for business process modeling is the first step. As with any tech investment, it’s important to understand how the technology will work in the context of your organization/business.

For example, it’s counter-productive to invest in a solution that reduces informational silos only to introduce a new technological silo through a lack of integration.

Ideally, organizations want a BPM tool that works in conjunction with the wider data management platform and data governance initiative – not one that works against them.

That means it must support data imports and integrations from/with external sources, a solution that enables in-tool collaboration to reduce departmental silos, and most crucial, a solution that taps into a central metadata repository to ensure consistency across the whole data management and governance initiatives.

The lack of a central metadata repository is a far too common thorn in an organization’s side. Without it, they have to juggle multiple versions as changes to the underlying data aren’t automatically updated across the platform.

It also means organizations waste crucial time manually manufacturing and maintaining data quality, when an automation framework could achieve the same goal instantaneously, without human error and with greater consistency.

A central metadata repository ensures an organization can acknowledge and get behind a single source of truth. This has a wealth of favorable consequences including greater cohesion across the organization, better data quality and trust, and faster decision-making with less false starts due to plans based on misleading information.

Three Key Questions to Ask When Choosing a BPM Tool

Organizations in the market for a BPM tool should also consider the following:

1. Configurability: Does the tool support the ability to model and analyze business processes with links to data, applications and other aspects of your organization? And how easy is this to achieve?

2. Role-based views: Can the tool develop integrated business models for a single source of truth but with different views for different stakeholders based on their needs – making regulatory compliance more manageable? Does it enable cross-functional and enterprise collaboration through discussion threads, surveys and other social features?

3. Business and IT infrastructure interoperability: How well does the tool integrate with other key components of data governance including enterprise architecture, data modeling, data cataloging and data literacy? Can it aid in providing data intelligence to connect all the pieces of the data management and governance lifecycles?

For more information and to find out how such a solution can integrate with your organization and current data management and data governance initiatives, click here.