Business Process Engineering Release 3.0 E20216-03
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Oracle® Practitioner Guide Business Process Engineering Release 3.0 E20216-03 December 2010 Business Process Engineering, Release 3.0 E20216-03 Copyright © 2010, Oracle and/or its affiliates. All rights reserved. Primary Author: Mark Wilkins Contributing Author: Dave Chappelle, Bob Hensle, Stephen Bennett, Anbu Krishnaswamy, Cliff Booth, Jeff McDaniel Contributor: Meera Srinivasan, Barry O’Reilly Warranty Disclaimer THIS DOCUMENT AND ALL INFORMATION PROVIDED HEREIN (THE "INFORMATION") IS PROVIDED ON AN "AS IS" BASIS AND FOR GENERAL INFORMATION PURPOSES ONLY. ORACLE EXPRESSLY DISCLAIMS ALL WARRANTIES OF ANY KIND, WHETHER EXPRESS OR IMPLIED, INCLUDING, BUT NOT LIMITED TO, THE IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE AND NON-INFRINGEMENT. ORACLE MAKES NO WARRANTY THAT THE INFORMATION IS ERROR-FREE, ACCURATE OR RELIABLE. ORACLE RESERVES THE RIGHT TO MAKE CHANGES OR UPDATES AT ANY TIME WITHOUT NOTICE. As individual requirements are dependent upon a number of factors and may vary significantly, you should perform your own tests and evaluations when making technology infrastructure decisions. This document is not part of your license agreement nor can it be incorporated into any contractual agreement with Oracle Corporation or its affiliates. If you find any errors, please report them to us in writing. Third Party Content, Products, and Services Disclaimer This document may provide information on content, products, and services from third parties. Oracle is not responsible for and expressly disclaim all warranties of any kind with respect to third-party content, products, and services. Oracle will not be responsible for any loss, costs, or damages incurred due to your access to or use of third-party content, products, or services. Limitation of Liability IN NO EVENT SHALL ORACLE BE LIABLE FOR ANY DIRECT, INDIRECT, INCIDENTAL, SPECIAL OR CONSEQUENTIAL DAMAGES, OR DAMAGES FOR LOSS OF PROFITS, REVENUE, DATA OR USE, INCURRED BY YOU OR ANY THIRD PARTY, WHETHER IN AN ACTION IN CONTRACT OR TORT, ARISING FROM YOUR ACCESS TO, OR USE OF, THIS DOCUMENT OR THE INFORMATION. Oracle is a registered trademark of Oracle Corporation and/or its affiliates. Other names may be trademarks of their respective owners. The Process Classification FrameworkSM (PCF) was developed byAPQC and member companies as an open standard to facilitate improvement through process management and benchmarking regardless of industry, size, or geography. The PCF organizes operating and management processes into 12 enterprise-level categories, including process groups and over 1,500 processes and associated activities. The PCF and associated measures and benchmarking surveys are available for download and completion at no charge at www.apqc.org/OSBCdatabase. ABOUT APQC APQC is the leading resource for performance analytics, best practices, process improvement, and knowledge management worldwide. APQC’s research studies, benchmarking databases and renowned Knowledge Base provide managers with intelligence that they can use to transform their organizations for better results. A member-based nonprofit founded in 1977, APQC currently serves over 750 of the Fortune Global 1000 companies as well as hundred of education and government organizations. Learn more by visiting www.apqc.org or calling 800-776-9676 or 1-713-681-4020 Contents Send Us Your Comments ....................................................................................................................... vii Preface ................................................................................................................................................................. ix IT Strategies from Oracle............................................................................................................................ ix Purpose of This Document......................................................................................................................... x Audience....................................................................................................................................................... xi Document Structure.................................................................................................................................... xi Conventions ................................................................................................................................................. xi 1 Key Concepts 1.1 Business Process Management (BPM) ..................................................................................... 1-1 1.2 Definition of a Business Process ............................................................................................... 1-1 1.3 Business Architecture................................................................................................................. 1-1 1.4 EPM versus BPM......................................................................................................................... 1-2 1.5 Process Model States / “Levels”............................................................................................... 1-2 1.6 Roles.............................................................................................................................................. 1-3 1.6.1 Business Participants........................................................................................................... 1-3 1.6.2 IT Participants ...................................................................................................................... 1-5 1.6.3 Supporting Roles.................................................................................................................. 1-6 2 Introduction to Business Process Engineering 2.1 Motivation for Adopting a BPM Methodology...................................................................... 2-3 2.2 Objectives for a BPM Methodology ......................................................................................... 2-3 2.3 Top-down versus Bottom-up .................................................................................................... 2-4 2.4 Scope ............................................................................................................................................. 2-4 2.5 Business Process Engineering Lifecycle................................................................................... 2-5 2.5.1 Detailed Business Process Engineering States................................................................. 2-7 2.6 The Oracle Business Process Engineering Framework ......................................................... 2-8 2.6.1 Strategic Analysis and Business Process Selection ......................................................... 2-8 2.6.2 Process Discovery and Definition ..................................................................................... 2-9 2.6.3 Business Process Refinement ............................................................................................. 2-9 2.6.4 Technical Analysis and Business Process Design ........................................................... 2-9 2.6.5 Business Process Application Composition..................................................................... 2-9 2.6.6 Integration Testing ........................................................................................................... 2-10 2.6.7 Deployment Planning ...................................................................................................... 2-10 iii 2.6.8 Approval ............................................................................................................................ 2-10 2.6.9 Commissioning ................................................................................................................. 2-10 2.6.10 Monitoring and Analysis................................................................................................. 2-10 2.7 Incremental and Iterative........................................................................................................ 2-11 2.8 Related Software Engineering Activities.............................................................................. 2-11 3 Business Process Identification and Selection (Analysis Phase) 3.1 Strategic Approach ..................................................................................................................... 3-2 3.1.1 Functional models ............................................................................................................... 3-3 3.1.2 Functional Decomposition ................................................................................................. 3-8 3.1.3 Business Motivation Models .............................................................................................. 3-9 3.2 Tactical Approach .................................................................................................................... 3-10 3.3 Process Selection ...................................................................................................................... 3-10 3.3.1 Process Candidates Evaluation Criteria ........................................................................ 3-11 3.3.1.1 Business Process Information .................................................................................. 3-12 3.3.1.2 Benefit Parameters..................................................................................................... 3-12 3.3.1.3 Inhibitor Parameters.................................................................................................