BPM & Workflow - Process Automation, XPDL, BPMN, and More RSS

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  Taking the "Human" out of Human Resources Workflows?

  Amy 10:39 pm on March 18, 2010 | 0 Permalink | Reply
  Tags: bpm software (6), expense report process (3), hr forms (5), HR workflows (5), leave application process (2), Leave of Absence Request (2)

  By taking labor-intensive human resources processes (like a leave application process or expense report process) and automating them with BPM software, HR workflows can become more streamlined, more efficient, and best of all, nearly hands-free.

  But as I wrote about in my last blog post, employees can get confused, upset, and downright scared by workflow automation.  On one hand, management totes the efficiency benefits and savings that BPM software can provide.  On the other hand, managers say “streamline” and employees hear “layoffs.”  And the fear of being “optimized-out” is very real: as I demonstrated in my example leave application process and expense report process maps, a BPM software system can actually replace many of the administrative tasks formerly done by HR employees.

  The point of BPM is to connect people and systems and bridge the gaps between them, not replace humans with machines. That’s why it’s absolutely critical for management to dispel misconceptions and communicate to employees that the BPM software is to help make their jobs easier, quicker, and more streamlined, NOT to replace them with bots.

  Recently I was talking to someone from the human resources department of a bank that had recently installed BPM software.  Unfortunately, no one in her department actually wanted to use the HR workflow software.  Why?  First of all, the employees had not been trained to use the system.  Some were not sure how to operate it, and were reluctant to abandon their paper HR forms for fear that the BPM software would complicate their jobs.  Others feared that the new system would actually work TOO well, and the bank wouldn’t need as many HR employees.  They would be effectively optimizing themselves out of a job.

  It’s true that BPM software allows an organization to do more, faster, with less.  But its important to give employees adequate training, both on how to use the BPM software and on the big-picture goals of the BPM implementation as they fit in with the organization’s larger mission, to dispel any misconceptions and help employees get on board.  Without that orientation and understanding, the BPM software can create gaps, rather than building bridges between people and systems as intended.

  
   

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  How to Increase Employee Satisfaction with BPM Software

  Amy 9:44 pm on March 15, 2010 | 1 Permalink | Reply
  Tags: BPM (22), bpm software (6), business process management software (8), business process software, expense report process (3), hr forms (5), HR workflows (5)

  When we think about business process management software, we often focus on business process management from an administrator or manager’s perspective.  Much emphasis is placed on the benefits BPM software offers to an organization as a whole; specifically, the efficiency tools it offers to managers and the impact of BPM on an organization’s bottom line.

  Yes, those benefits are of primary importance.  But in order for a BPM initiative to be successful, it is essential to consider business process software from the end users’ perspective.  In my previous blog, I observed that “beyond its benefits to the organization as a whole, BPM software creates opportunities to make life easier for both the “end user” (in this case, the HR department) and the “client” (in this case, the employee).”

  End users are the people who will actually use the BPM software to do their jobs on a daily basis.  End users include employees, supervisors, administrators, clients, partners, or any person who interacts directly with the BPM software.  When a new BPM software is introduced to an organization, the end users are absolutely key to making sure that management’s vision is carried out.  Change can be difficult and scary, and management must work to ensure that the end users view the BPM system as a solution rather than a hassle.  When end users perceive BPM software as a helpful tool that actually makes their jobs easier, they are prepared to reap the benefits of the BPM software and support the company’s BPM goals and vision.

  Returning to the expense report process example, the benefits to employees / end users participating in human resources processes are significant, and processing the expense report is much easier with BPM software.  Everything the employees need to do their jobs quickly and efficiently is right at their fingertips.  They are free from entering redundant data, looking up information, or sending notifications.  However, if these benefits are not explicitly communicated to employees by management, the benefits risk being lost in the shuffle.

  Whether its a new BPM software or any other top-down initiative, when employees feel that management has taken their needs into account the end results tend to be much more favorable.  Considering the ways that the end users will interact with the BPM system, communicating the direct benefits to end users, and ensuring that the end user perspective is central to the organization’s larger IT goals, goes a very long way towards maximizing the success of a BPM software implementation.

  
   
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  Expense Report Process and BPM Software

  Amy 10:11 pm on March 13, 2010 | 0 Permalink | Reply
  Tags: BPM (22), bpm software (6), expense report process (3), hr forms (5), HR workflows (5)

  Business process management software can be used to automate and optimize administrative tasks, reducing waste and increasing efficiency in HR operations.  In my last blog, I walked through how BPM software could optimize a leave application process, totally eliminating the need for HR to participate in the process at all.  Now I’d like to explore how BPM software can cure another common HR headache: the expense report process.

  The expense report process is a basic administrative process found in almost every organization.  When an employee advances an expense on the organization’s behalf, she then submits an expense report to her supervisor and/or the HR department using a standard expense reimbursement form.  Someone from HR then processes the expense reimbursement form and approves or denies the request.  Accounting is updated, and reimbursement is issued to the employee.    Additional steps may be added to the customize the expense report process, but the basic “bones” are consistent across most organizations.

  It’s important to remember that beyond its benefits to the organization as a whole, BPM software creates opportunities to make life easier for both the “end user” (in this case, the HR department) and the “client” (in this case, the employee).  By automating and optimizing the expense report process, BPM software can help to increase employee satisfaction by reducing reimbursement lag times, speeding up the expense report process duration and shortening the time the employee has to wait for reimbursement. Using BPM software, the employee can easily monitor the progress of her expense report form online, and receive automatic updates as the reimbursement form advances, increasing transparency and giving peace of mind that the expense report is moving through the reimbursement process.

  Furthermore, BPM software enables the HR department to automatically store, archive, and retrieve information related to the expense report process by accessing a database or by connecting to other software systems (such as ERP or accounting systems — more on this later), eliminating the need for redundant data entry and making HR’s job significantly easier.

  
   
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  Open Source Business Process Management Software

  kurt 4:18 pm on March 11, 2010 | 0 Permalink | Reply
  Tags: BPM (22), business process management software (8), open source (6), open source software (4)

  I just completed a series of blog posts about LMS trends and what they might forecast for BPM trends. One area I did not tackle was open source software. I can’t look at the open source topic in quite the same way. Both markets have quite a few open source options. At least 50 open source learning management systems exist, and at least 30 business process management open source software systems exist. Doesn’t sound like a case where one industry is leading a trend, while the other is following.

  Open source software has appealed to smaller businesses that can’t afford the licensing costs of enterprise class software. As costs increase, larger corporations are also taking a look at open source solutions. Some IT departments also prefer open-source systems because it provides greater control over the software. They aren’t constrained by the road path of a software corporation. The open source software can customize the software to meet its business needs. Of course, this can create problems as customizations to the open source software can make future upgrades problematic.

  Others don’t like open source because they wonder what support they’ll receive. Will they post a question in a community forum and hear the sounds of crickets or receive a few unhelpful comments? Sometimes this concern is justified. Support and maintenance may require a dedicated and strong internal IT group or contracting with outside vendors. Other times the open source community can and does provide excellent support. After all, they are a group that can feel a lot of enthusiasm for a good open source product.

  These hidden costs should not be overemphasized. Open source business process management software can still be great investment. Many robust open source solutions have an array of third-party vendors that can provide training, consulting, or product add-ons. Even with the additional costs of support or third-party services, the tradeoff with expensive enterprise software licenses may still tilt heavily in favor of the open source option. When selecting business process management software, you should be careful to weigh the benefits of open source and cost of additional support against the built in support of a licensed product.

  

  Google search on "open source bpm products"

  The three packages that top a Google search on “open source bpm products” include ProcessMaker, Intalio, and Bonita. (Strangely, the link for Intalio points to their cloud computing platform, not their BPM product.)

  
   
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  Leave Application Workflow, with and without BPM

  Amy 9:10 am on March 11, 2010 | 1 Permalink | Reply
  Tags: bpm software (6), hr forms (5), HR workflows (5), human resources forms (2), Human Resources Workflows (2), leave application process (2), vacation request form

  I have been blogging recently about BPM software and opportunities for automation in a typical leave application process.  I wanted to create a visual example to show how many steps can be automated by using a BPM tool to automate the vacation request process.  Requesting a vacation should be a fairly simple and straightforward process, right?  An employee asks for vacation days, a supervisor checks the request against the employee’s HR records, the request is approved or denied, and the HR records are updated.  Simple, right?

  Not so much.  In order for that paper-based vacation request form to be processed properly, it has to pass through many steps and desks before it is ultimately approved.  Take a look at this example process diagram showing a typical paper-based leave application workflow:

  

  

  

  Each extra step wastes time and effort:  asking people to do things, sending emails, checking and updating databases by hand, and manually reviewing data are administrative tasks that could be automated and streamlined with BPM software.

  Now, let’s look at the same process, automated with the help of a BPM software suite:

  

  In the BPM-automated process, the administrative waste is cut out.   The employee’s vacation data is automatically pulled from the HR database and added side-by-side to the vacation request form, so when the Supervisor reviews the form she has all the information she needs to make the decision to approve or deny the request.

  Information is also pulled from, and pushed into the HR database.  See how the HR department staff doesn’t even participate in the automated process diagram?  By automating the administrative, communicative, and labor-intensive tasks, the BPM system trims the fat from the leave application process.

  
   
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  How to Automate Human Resources Forms with BPM Software

  Amy 11:06 pm on March 8, 2010 | 0 Permalink | Reply
  

  In my previous post I talked about the similarities of BPM software to a GPS system; namely that BPM software walks an employee step-by-step through common HR business processes (such as a leave application) just as a GPS system provides driving directions.  I’d like to highlight, however, a key difference: unlike a GPS system, BPM software can completely automate important steps of HR forms and workflows, greatly minimizing the need for inputs from the end user and reducing opportunities for error.

  Let’s examine the opportunities for process automation using my favorite example: the leave application.   In this example, an employee initiates the leave application process when she fills out a vacation request form.  If this vacation request form were paper-based, then the employee would have to enter all of her personal information from scratch, wasting time and leaving room for error.  However by leveraging the database connections of BPM software, the BPM software itself can automatically populate the vacation request form with employee information (including name, date of birth, employee ID number, department, etc).  The employee only enters the dates of her vacation request, and submits the vacation request form with a single click, reducing redundant data entry and eliminating opportunities for end user error.

  A second opportunity for automation occurs when verifying the vacation request form.  The BPM software can automatically cross-check the requested leave against a database containing the employee’s vacation data (including total vacation days, remaining vacation days, total sick days, remaining sick days, etc) to determine if the employee is actually eligible for the vacation she requested.  In a paper-based leave application process, the verification would have to be done manually by someone from the HR department, again wasting more time and creating more opportunities for errors and delays.  The BPM software eliminates the need for someone from HR to participate in the process at all!  And without the need to administratively review HR forms, the Human Resources department is free to work on other more important tasks.

  A third opportunity for automation occurs when the employee is notified of the status of her request.  Based on the automatic cross-check of the vacation requested, the BPM software can automatically generate an approval notice or denial notice advising the employee of her request status.  Automatic notifications and escalations ensure consistent results, transparent record-keeping, and again save valuable human resources.

  A final, and very important, opportunity for automation occurs when the employee returns from her leave of absence to report her actual leave taken.  A  one-click confirmation from the employee or her supervisor can automatically update the HR database, deducting the days taken from the total vacation days.

  A comprehensive business process management system does much more than guide the end user through completing HR forms; it actually automates administrative human resources tasks, and allows the human resource department to streamline the leave application process at multiple points, creating an easier end-user experience and ensuring the accuracy of leave reporting and the efficiency of the human resource department operations.

  
   
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  BPM Software: Like GPS for your HR Forms

  Amy 2:17 am on March 6, 2010 | 0 Permalink | Reply
  Tags: hr forms (5), human resources forms (2)

  As tax season once again rolls around, I was struck by the recent advertisement campaign of one of the major tax preparation software suites. This particular software claims to be “like GPS for your taxes”, the idea being that the program guides you step-by-step through the virtual twists and turns of tax preparation, just as a GPS guides you to your final destination.

  The same can be said for what a BPM software system can do for human resources forms, or any forms-based business process for that matter.  BPM software can function much like a GPS system for the human resources department, automating human resources forms and guiding employees through the completion of those HR forms from beginning to end, thereby avoiding wrong turns and eliminating wasted time and effort.

  Take a classic example: the employee leave application. The leave application begins when an employee fills out a vacation request form, including details such as type of leave requested, dates of leave, etc.  The vacation request form may then need to be routed to a Supervisor for review, who then sends the vacation request form on to the human resources department. Someone from HR then reviews the HR forms and takes the appropriate action. A database containing employee HR records is updated, and the employee who initially filled out the vacation request form is notified via alert that her leave application has been approved.

  BPM software doesn’t entirely automate the leave application for the HR department; certain inputs are still required from the end user, just as a GPS requires you to actually drive the car.  But unlike a GPS, BPM softwarecan pull information, like employee data and remaining vacation days, from a database, and update the HR database automatically based on information from the forms.  By automating certain administrative tasks, the BPM reduces error and saves valuable human resources.  BPM software also sends the leave application on the correct route, efficiently and without delay, every time.  Think of it as GPS with cruise control for the HR department.

  Now if only doing my taxes were so straightforward.

  
   
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  Cloud Computing aka SaaS for Business Process Management

  kurt 4:47 pm on March 4, 2010 | 0 Permalink | Reply
  Tags: BPM (22), business process management (5), business process management software (8), Cloud Computing (2), SaaS BPM (2), Software as Service (2), Software-as-Service BPM (2)

  
  BPM in the Cloud with SaaS

  This post is my last in a series of posts examining past trends in the learning management software market to understand future trends in business process management.

  Over the last year or so, the buzz has been over cloud computing. The online training software industry embraced cloud computing when it was called Software-as-a-Service (SaaS). Increasingly, companies began outsourcing the hosting of their leaning management systems, rather than installing and maintaining a licensed copy of software. Some companies, such as GeoLearning and Learn.com, were purely SaaS companies that only offered a hosted LMS. Other traditional LMS companies began offering an SaaS version of their software.

  One factor that drove this trend was a change in market dynamics. Many larger companies with deep pockets had already invested in an LMS and switching costs made them reluctant to switch vendors. Newcomers to the LMS market, as well as market leaders who wanted to maintain and grow market share, found small to medium sized businesses to be an attractive target. Cloud computing offered these companies, who often had little internal IT support, lower total cost of ownership and automatic software upgrades. Of course, cloud computing has its disadvantages. For example, SaaS offerings are often less customizable than licensed software.

  Does cloud computing in online training software foretell anything for the BPM industry? In 2007 Lombardi software introduced Blueprint™ as an on-demand business process management solution. Appian began funding its SaaS venture in 2008. (Learn.com, one of the leading SaaS LMS vendors began in 2001). The business process management industry’s adoption certainly seems as though it is headed in the direction of SaaS.

  However, BPM customers may not adopt SaaS as readily as LMS customers have. Ovum analyst, Surya Mukherjee, says that SaaS products tend to be strong in visualization and design but weak in workflow engine and execution (Barry). (Blueprint is a process discovery product.) Unlike online training software, business process management software in the cloud can expose more sensitive data to a security risk. For SaaS to become as ubiquitous in the BPM market, as it has in the LMS market, managers will need to feel more comfortable with the security of cloud computing.

  
   
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  LMS and BPM Trends, Part 2: Social Media Tools for Business

  kurt 12:03 am on February 26, 2010 | 0 Permalink | Reply
  Tags: business process management software (8), Social Media

  Another trend, another LMS and BPM comparison. Part 2 in my series of postings on what past trends in the learning management software industry might say about future trends in business process management software. In this post, I took a look at the trend of social media tools for business.

  Many enterprises are already using blogs and forums. In the past few years, LMS software vendors have rushed to add these social media tools to their features by providing ask the expert panels, access to mentors, and communities of best practices. Business process management hasn’t been immune to the social media hype and the possibilities that Web 2.0 tools may hold for the industry. Does it make sense for either industry?

  One of the driving factors for LMS software vendors to adopt social media tools has been to improve the efficiency of informal learning. The great majority of learning is informal, occurring between individuals in conversations and other casual communication. By adopting these tools, LMS software has hoped to demonstrate a way for corporations to facilitate this type of learning and capture that knowledge into a searchable database. Is there an analogy to informal learning in the BPM market that would validate the use of social media?

  At its surface, it would seem that social media or Web 2.0 tools are the antithesis of business process management. The purpose of BPM software is to establish predetermined, formal paths to follow when performing a task. How can social media be contained in a process diagram? I can think of at least one example—providing customer service or technical support. It is not uncommon for companies to direct customers to blogs, forums, or wikis to get support before they submit a support ticket or talk to company staff.

  Another place that social media can have a place is in process design. I recall hearing a pre-Web 2.0 story about an airline company where employees at one particular terminal transcribed best practices for processing passengers in notebooks. When discovered, these best practices were distributed throughout the company. (This is an example of informal learning in action.) Social media can facilitate this type of information exchange. For example, an automotive company could use the wisdom of the crowds to arrive at the best process to deliver customer service at dealerships.

  Of course, including these social media tools in a business process requires a lot of work. It requires community building and a customer base that can contribute to these communities. Too many companies launch the social media technology, but they don’t do the necessary community building or they don’t have the active customer base required to make the use of these tools a true business process benefit.

  If done right, however, it seems that social media can be contained in a process and the following could be true:

  

  
   
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  Workflow Software, BPM Software, and ERP Software - How does it all fit together?

  brian 9:02 pm on February 4, 2010 | 1 Permalink | Reply
  Tags: ERP (2), Great Plains Software, JD Edwards Software, openbravo (3), Purchase Request, Purchase Request Process, Workflow (9)

  It is nothing new to state that Business Process Management Software (BPM Software or Workflow Software) and ERP software go hand in hand.  In fact, I can probably count on one hand the number of meetings I have had with private companies in which ERP wasn’t discussed in the initial BPM meeting.  In private industry, the ERP and the BPM or Workflow solution are inextricably intertwined.  So much so, that the BPM consultant will end up discussing the client’s ERP within the first 30 minutes of the very first consultative meeting.

  Today I was in a meeting with a small company (100 employees) that had developed their own in house ERP software.  Present in the meeting were the executive president, numerous technical managers, and a number of different business area managers.  As is often the case, the president was not very technical.  He started the meeting by talking about the company system (he didn’t call it an ERP) at a very high level and how this system was designed to handle all of the company processes.  He hadn’t yet seen our BPM Software, but he ended his initial remarks by asking, “If we already have a main company system (i.e., ERP)  that handles all of our company processes, then why would we need BPM Software or a Workflow system?”

  This is a very good question.  The question points to a general weakness of the BPM Software Industry and a strength of the ERP industry.  ERP vendors have positioned their software as the system of systems.  They claim that this is the system that will run your business.  It manages your accounting, materials, inventory, and production process.  Once you have it installed you will have an efficient, modernized company.  And yes, it will even make your coffee.

  Of course, that sort of sales pitch is effective.  It goes to the heart of the insecurities of every General Manager or President, especially those that aren’t so familiar with the latest acronyms and systems jargon.  That is why the ERP vendor has historically been able to convince these businesses to fork over hundreds of thousands if not millions of dollars and go through a traumatizing process of installation that will usually last many months if not years.

  Of course, the ERP solution is important.   I am by no means suggesting that companies can forgo this investment.  However, the result is that when the BPM vendor or workflow software provider rolls in to town, the reception is usually one that begins with a strong bit of skepticism.  So, the question is, how does the BPM sales person now explain to this decision maker that there really is a need for a new business process system.  Hell, the BPM vendor doesn’t even have new language to describe what he/she is selling - it sounds just like the “other” system the company already has installed.

  This is a real problem when dealing with SMEs because of the limited attention span the decision makers usually have when it comes to technologies.

  I don’t have an easy answer.  I watched today as one of the sales guys on our team sloshed his way through a standard BPM explanation.  I would have kicked him under the table had I been sitting closer in order to tell him to just get on with the demo.  The description just wasn’t doing justice.  However, as is often the case, 30 minutes later as we were wrapping up the demo, the customer’s face had changed, and he was now rattling off ideas on where his business could implement BPM Software.  Why is BPM so difficult to describe yet often so easy to demonstrate?

  In the case of this customer we were demonstrating a Purchase Approval Process.  Of course, the customer’s ERP manages the purchase process - every ERP vendor will tell you that their software has a purchasing module whether it is SAP, JD Edwards, Great Plains, or Openbravo.   But it usually isn’t until many months after the ERP solution is installed that the company managers realize that an important part of their purchase process still isn’t automated.  Yes, the ERP will record the purchase of the product, create the appropriate accounting entries, produce the Purchase Order, allow for the reception of money, deduct the product from inventory, and confirm the delivery of the goods or services and receipt of payment.  But what about all the company best practices that go into the act of making the decision to make the purchase?  Ahh, that just sort of got let out as an after thought.  Or maybe it was specifically left out so that the ERP vendor could try and go back a year later to sell another product?  (I am really not a conspiracy theorist).  Either way, most businesses sooner or later come to the conclusion that their ERP still left them with a lot of Process Problems.

  This is where workflow software or BPM software (there is no difference - that was another marketing blunder) adds a much needed layer of process management to the company.  Let’s take the Purchase Process. In this company, the process went something like this -

  1. Employee makes a Request
  2. Request stake into consideration existing products and reference pricing
  3. Based on the reference pricing either one or two levels of management approval is needed
  4. Once approved, the purchasing manager sends out 3 Quote requests to approved vendors
  5. The quotes come back and need to be compared
  6. Final decision and a final approval ocurr

  Following best practices in this business process could save hundreds of thousands of dollars in the case of this company.   But time and time again the company didn’t follow best practices because the process was executed differently every time.

  I’ll let you know next week if they decided to buy the BPM Software… 

  
   
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    Shahid 4:42 pm on February 16, 2010 Permalink
    

    Hi Brian,
    Thanks for sharing. We have some clients who want to integrate ProcessMaker with an erp. What do you think about integrating openERP with ProcessMaker?
    Thanks,
    Shahid