A Model Driven Methodology for Business Process Engineering

Having competitive processes has become as important (if not more) as having competitive products. Simply designing good products is not enough to gain competitive edge. Business processes have grown complex and fragmented in an ad-hoc manner. They span several departments and are very inefficient. Often the work being performed conflicts with the organizations’ goals and strategic objectives. Traditional practices and policies tend to encourage this, resulting in being part of the problem instead of being part of the solution. This paper presents a model driven methodology for Business Process Engineering (BPE) to support an organization’s migration to effective, agile and efficient processes. The essential elements of the methodology are process modeling, process analysis, and process execution by utilizing an array of information technologies. The methodology steps depend on process models for understanding, analyzing, simulating, improving, innovating, and implementing the business processes. The methodology starts by defining the goals and objectives of the BPE project. Candidate business processes are identified. The selected strategic “As-Is” business processes are analyzed to find where problems exist. Several techniques are employed to engineer the "To-Be" process. The new process may be a radical departure from the old process. The alternatives are evaluated using cost/benefit analysis. The selected processes are then implemented using a phased approach that relies on information technology solutions alongwith the implementation of recommended organizational and cultural changes. A continuous improvement program is put into place to ensure long term success. INTRODUCTION “I have seen hundreds of organizations that by all rights should have crumbled under the inefficiency of their redundant, over-specialized, compartmentalized, costly business processes. There is only one reason they survive -the same inefficiencies run rampant throughout their industry" -Thomas Koulopoulos The quotation from Koulopoulos (1994) sounds harsh till one realizes that the actual working time in an average process is typically less than 1% of the total elapsed time. This is because business processes have grown complex and fragmented in an adhoc manner. They span several departments and are very inefficient. No one completely understands or is responsible for the whole process; everyone knows and takes care of their own little piece. Often the work being performed conflicts with the organizations’ goals and strategic objectives. Traditional practices and policies tend to encourage this, resulting in being part of the problem instead of being part of the solution. Such process inefficiency leaves a lot of room for improvement, and thus is receiving considerable attention in industry. This becomes significant if you ascribe to Thurow’s (1992) prediction that, "In the twenty-first century there will be high-tech and low-tech products, but almost every product will be produced with high-