整合企業流程管理架構與系統開發方法之行動研究/尚孝純 吳雅玲
Building a Composite Model of Business Process Management with System Development Life Cycle: An Action Research on Multiple Systems Shari S. C. Shang Assistant Professor Department of Management Information System, National Chengchi University
[email protected]
Ya-Ling Wu Doctoral Student Department of Management Information System, National Chengchi University
[email protected]
Abstract Business process management (BPM) methods are used to analyze, assess, and design business processes. Although they are praised for business alignment and adaptability, this kind of methodology is in its initial stage and has its shortcomings with regard to detailed system development and execution. On the other hand, system development life cycle (SDLC) methods, though lacking a cautious consideration of business strategies, carefully examine functional goals and provide detailed guidelines for system development and implementation. To operationalize the BPM methods and to enhance the applicability of SDLC methods at a higher business level, it would be beneficial to examine features of these two methods and propose a proper model with complementary features being incorporated. By applying action research, this study empirically validated and enhanced the proposed integrated BPM/SDLC method through detection, planning, action, and monitoring, as well as the reflection and evaluation processes. During this action research, a spiral cycle of model development, modification, and enhancement was adopted with the installation of three different kinds of systems. The research result is a composite model that elaborates upon both the BPM and SDLC methods and focuses on business process management success. Study findings reveal that the most significant benefit of the involvement of SDLC for business process management is to provide a complete and practical framework with instruments and guidelines for an executable process system. Keywords: Business Process Management, System Development Life Cycle, Action Research
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資訊管理展望 第 9 卷 第 2 期 民國 96 年 12 月
整合企業流程管理架構與系統開發方法之行動研究 尚孝純
吳雅玲
國立政治大學資訊管理學系 助理教授
國立政治大學資訊管理學系 博士班研究生
[email protected]
[email protected]
摘要 企業流程管理(BPM)的目的在將傳統管理理論的規劃、組織、協調、管理、控制等 分散的思維模式加以整合並融入商業環境中，促使企業快速而有效的完成各項商業流程 的設計、整合與再造。然而，這樣的架構雖有宏觀的視野，但在細部的執行規劃上卻顯 不足，若無法與資訊技術資源相輔相成，這套企業作業規劃將無法實際開發並落實執 行，難以達到企業流程最佳化之目的。此外，系統開發生命週期(SDLC)方法詳細規劃了 系統開發目的與步驟，以確實執行系統開發與安裝，但在落實企業策略目標上卻較缺乏 慎密的考量。因此，本研究提出整合二者的方法論，並使用行動研究方法，進行整合BPM 架構與SDLC方法的驗證與強化。透過行動研究「偵察或觀察」、「計畫」、「行動與 監看」以及「反省與評鑑」四大歷程，以螺旋循環的形式在「預支請款流程系統」、「專 案管理流程系統」以及「保險契約流程系統」三種不同性質系統進行開發與安裝，反覆 地測試與調整本研究之整合性方法。研究結果可以發現SDLC的嵌入，對於流程系統開 發最大的助益在於流程設計與流程實作上，提供了一個完整且實際的作法，亦加速了流 程改善與系統開發的效益，使得BPM架構因SDLC嚴謹方法而落實執行。SDLC方法則在 BPM架構之下較能有效支應企業目標。目前BPM的發展多止於理論發表，需要實務案例 落實該方法的應用，本研究在進行三個案例的實作後，發現應可有助BPM架構與系統開 發方法發展成更完善的理論實踐。 關鍵詞：企業流程管理、系統開發生命週期、行動研究
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整合企業流程管理架構與系統開發方法之行動研究/尚孝純 吳雅玲
1. Introduction Businesses today are confronting the challenge of managing highly responsive and flexible practices in a constantly changing environment. Instead of passively supporting business needs, information technology, with its increasing speed of advancement, must play a more proactive role in assisting firms in building dynamic capabilities for the competitive marketplace. Business process management (BPM) methods have the objective of providing process adaptability, including planning, design, and management of business processes in a changing environment (Nurcan and Edme, 2005; Logan and Sinur, 2003; Burlton, 2001; Poirier et al., 2003). The central focus of the BPM method is on business objectives and the needs of key stakeholders (Hammer and Champy, 1993; Davenport, 1992). BPM provides frameworks for designing and managing processes with the business structure and stakeholders defined, process flow depicted and automated, and related programs formulated. The output formulates process design and system installation in a graphical and automated format, with the capability of extension into internal and external processes (May, 2002). Although many studies (e.g., Burlton, 2001; Butler Group, 2002; Khan, 2004) perceive the adaptive and influential power of the BPM approach in organizational management, at present BPM application remains in the initial stages of concept building and clarification. Numerous methods and functions are still under development (Shang, 2005). Though modern technology is sufficiently mature to carry out data analysis and operational integration with a BPM methodology; there has been a lack of linkage with system development and implementation. Traditional system development life cycle (SDLC) methodology has been widely applied in designing and implementing information systems for various kinds of organizations. However, although an SDLC method is capable of analyzing and designing processes from a functional view, it cannot accomplish the goal of alignment of processes with overall business objectives. That is, systems designed under SDLC methodology tend to lack managerial and strategic applications. Given the complementary potential of BPM and SDLC methods and the mutual goal of designing executable business processes with advanced information technology, there is a need for a thorough study of the integration of these two methods. This study seeks to compare and integrate the BPM and SDLC methods with the objective of building a practical methodology for a business process management system. The study employs action research (Kemmis and McTaggart, 1988; Pan, 2005) to examine insufficient features of the BPM method in redesigning a lengthy operational process, and to test the proposed integrated BPM/SDLC method in two different systems with iterative modification and enhancement. Through the processes of “detection or observation,” “planning,” “action and monitoring,” and “reflection and evaluation” in action research (Ebbutt, 1985; Elliott, 1991; Kemmis and McTaggart, 1988; McNiff, 1988; Somekh, 1995), we used a BPM system to implement in business three systems: a payment application 3
資訊管理展望 第 9 卷 第 2 期 民國 96 年 12 月
process in a university, a project management process in a consulting firm, and a new policy process in an insurance company. Our research results were fed back into the BPM implementation, which in turn affected the next iteration of research and implementation, creating a cycle of positive feedback. The result was a refined BPM implementation method with analysis of its applicability in business process management. Section 2 contrasts the BPM and SDLC methods. Section 3 presents the process of action research. Section 4 describes the implementation of the BPM in the three systems. Then section 5 discusses the usability of the proposed integrated method, with the conclusion in the last section.
2. Business Process Management and System Development Methods 2.1 Business Process Management (BPM) Michael Hammer (1990) and Tom Davenport (1992) first proposed what is now a growing wave of fundamental business process change through the use of information technology. The world has begun to take into account the importance of customer and stakeholder-focused process management. Changes prompted by IT and Communication technologies (ICTs) such as the Internet, advanced databases, analytic tools for businesses, business integration interfaces, and enterprise systems (such as Enterprise Resource Planning (ERP) systems, Supply Chain Management (SCM) systems and Customer Relationship Management (CRM) systems, etc.) have revolutionized business practice. These ICTs, along with different forms of industry competition, have triggered different patterns of innovation in business processes, and have led to the development of different products and services. Although businesses adopt different methods of process management for the different processes they must control, they continue to invest, design, improve, and bring innovations to these processes in order to sustain competitive advantages. In general, business process is a procedure for transforming the resources of an organization into a product or service to comply with all stakeholders’ requirements (Rakich et al., 1992; Hammer and Stanton, 1995). To satisfy stakeholders, business processes have specific goals of organizing processes through an interrelated network of actor, activity and artifact (Davenport and Short, 1990). From the view of work procedure, Logan and Sinur (2003) argue that BPM is the technology that deals with commercial affairs and manages related resources in the business process, from end to end. In other words, the BPM framework is a method for improving specific processes and establishing business goals and managerial strategies (Poirier et al., 2003). We see BPM as a kind of managerial technique which implements the goals of the business process through tracing and negotiating related information among stakeholders. The most important function of BPM is to assist enterprises with various parallel operations such as problem-finding, design, execution, planning, and innovation. Although BPM, to date, is still in its early stages, its development has been quite rapid. Users can 4
整合企業流程管理架構與系統開發方法之行動研究/尚孝純 吳雅玲
comprehend BPM based on its graphical format that displays business process flows and pattern, whereas MIS professionals can understand the process logic and its links with business objectives (Nurcan and Edme, 2005). The core of BPM is a set of related activities that are of value to a customer. In the BPM business processes are basically networks in which a number of roles collaborate and interact to achieve an organizational object (Melao and Pidd, 2000). Several contemporary methodologies and tools contribute to the BPM framework, such as the Integration Definition (IDEF) (Maker et al., 1992; Hunt, 1996), Flow Chart (Kock and McQueen, 1996; Harrington et al., 1997), and the Workflow Management System (WfMS) (Bae and Kim, 2002). The IDEF3 has two dimensions, the procedure embodying proven practices and the language, which is expressively powerful in Process Description Capture. These work together to focus user attention on relevant aspects of a given process and provide the expressive power necessary for representing information about the nature and structure of that process. The flow chart is a frequently used technique, often referred to as product flow or the flow of activities. Its basic elements – activities and decisions – make it easy to realize and communicate. WfMS, by contrast, is a software system that supports an automatic, efficient execution of business processes and functions as an enabling infrastructure for object-oriented methodology. The objectives of WfMS are to flexibly describe business rules for autonomous service tasks, and support implementation of large-scale business processes. Much research (e.g., Chang, 2006; Harmon, 2002; Grover and Kettinger, 1995) has investigated developing the approaches that comprise the BPM framework: analysis of business goals and current processes, future process redesign, and improvement of execution. Since Burlton’s (2001) BPM method has provided guidelines with respect to ‘best practice’ of the business process management and incorporated concepts adopted from the above mentioned BPM tools and methodologies, this study analyzes the BPM methodology based on Burlton’s (2001) framework. Details of the framework are given in Table 1.
2.2 BPM Framework and System Development Methods A number of system development and implementation models have been developed, including the waterfall model (Royse, 1970), the spiral model (Boehm, 1988), the V model (Jensen and Tonies, 1979), and the saw-tooth model (Rowen, 1990). However, in general, SDLC prescribes the process of system development which starts with feasibility analysis and then progresses through system analysis, system design, system development, system implementation, and ends with system evaluation (Silver and Silver, 1989; Hoffer et al., 2002). Under this framework, from problem-finding to solution implementation (Monarchi and Puhr, 1992), mature analytic and design tools have been developed. Hence, SDLC methods have been used as the fundamental methods for MIS professionals in developing systems. Nevertheless, with the speedy development of technology and complicated business 5
資訊管理展望 第 9 卷 第 2 期 民國 96 年 12 月
environment, the request of all enterprises for system development has also reached highly flexible, speedy, and adaptable levels. Since passive responses to customer requirements for developing and renewing systems no longer permits business to match the speed of business change, SDLC became outmoded (Wu and Lin, 2004). Meanwhile, the BPM method provides the enterprise-wide view on processes and connects process flows with a higher level of organizational objectives. To sum up, the BPM and SDLC methods are distinctly different in terms of goals, scale, process, output, impact, and management (summarized in Table 1).
Purpose Process
Output Influence
Scale
Target Possible difficulties
Table 1 Analysis of BPM Framework and SDLC SDLC BPM Framework To develop an information system To optimize and adapt business processes 1. Planning development project 1. Defining the business context for and selecting the final project change 2. Analyzing the selected project 2. Architecting processes and 3. Designing the project aligning business strategies 4. implementing and operating 3. Creating the vision for change Specific project 4. Understanding the existing process 5. Renewing the process design 6. Developing enablers and support mechanisms 7. Implementing the change 8. Operating process and continuing to improve Information system In the long term, BPM is a model which can constantly respond to change The range of influence is directly The most critical influence is to allow related to the proportion of the enterprises greater flexibility when specific function to overall facing changes in the external organizational operation. environment. The scale depends on the range of 1.Actor: organizational employees, activities intersected by the suppliers, customers, organizations function, which might extend to of the same industry, and partners the whole organization or 2.Activity: a process mechanism that cross-organizational integration. is continually checked. 3.Artifact: without the limitations of industry Direct and indirect system users. IT staffs of BPM, BPM teams, managers, and stakeholders 1. Conflict of interests and 1.Process management might be crowding effectiveness of the biased when being implemented cost from top to the bottom. 2. the adaptation period might 2.Resistant behavior extend and influence 3.The practical aspect is too broad. organizational operations 4.Trying hard to involve BPM in 3. Resistant behavior corporate culture.
3. Research methods Integrating the BPM framework and SDLC methods is a new approach. We need to 6
整合企業流程管理架構與系統開發方法之行動研究/尚孝純 吳雅玲
explore features of both and test the methodology by repetitive validations and refinements. The methodology applied in this research is a multi-case study due to the need to investigate, in depth, the contextual adaptability of the proposed model in practical settings. In addition, for the purpose of advancing actionable knowledge in model practice we chose action research (Lewin, 1946) as the research approach. Table 2 The Process of BPM System Development Process figure
Why How Focusing and analyzing Exploring the facts problem and clarifying research problems Planning possible Reading and analyzing solutions the related information
1. Finding the lack of BPM
Result The gap between the BPM framework and methods SDLC and BPM can complement each other
1.Implementing the fee 1. Can expect the result application process of revolution system 2.Implementing the 2.Cannot completely project management reveal the process process system aspect of the system
2. Confirming if our composite methodology can completely record the related information 3.Confirming if the 3.Implementing the 3. Can completely modified methodology new policy process reveal each stage of can be applied to more system the system complicated development enterprises Confirming if the The research examines By taking action in the problem is solved the completeness of third system, this study the action as the had validated the criterion of recycle feasibility of this planning method Showing the whole Writing the research This methodology can context of the research report efficiently assist with system development The action research approach was selected based on the following criteria: (1) There is a need to enhance the usability of the model based on the established observational richness and practical experience. (2) It emphasizes collaborative work between the researchers and practitioners in the theoretical inquiry and practical application. (3) There is a need to build the model with a dynamic process of concept learning and 7
資訊管理展望 第 9 卷 第 2 期 民國 96 年 12 月
modification. The value of the action research lies in its “systematic exploration” with respect to an obstacle encountered in a real work situation (depicted in Table 2). The research design focuses on developing innovations, and it employs a systematic method to accumulate practical knowledge and experience (Altrichter et al., 1993). During the process, the researcher plans and executes solutions and then further evaluates and modifies the proposed solutions. This approach provides a means for both refuting and extending existing concepts (Tang et al., 2004), and its goal is to develop the dual outcomes of action (practical application) and research (deep understanding) of the model. Through the four processes in action research; “reconnaissance or observation”, “planning”, “acting and monitoring” and “reflection and evaluation” (Ebbutt, 1985; Elliott, 1991; Kemmis and McTaggart, 1988; McNiff, 1988; Somekh, 1995), this study used the reflective-spiral cycle to test and validate the design and implementation of three process systems, a fee application process, a project management process, and a new insurance policy process. The reason for the selection of these particular cases is that they reveal various patterns of business processes (described in Table 3). The first system focuses on the process of fee application of a non-profit organization. Since it only involves the internal staff, BPM method was applied in the administrative process. The second system is the process of project management of a small enterprise. Since the internal staff interacts with each other, the process is supported by several enterprise systems, such as ERP and CRM. Finally, the third system focuses on the process of new policy management of a large insurance company. In addition to internal operations, it involves interaction with customers. Table 3 Descriptions of Three Process Systems System The fee application process The project management process The new policy process
Organization
Industry
Process
Non-profit Educational Sequential organization industry Small and medium enterprise Large-scale organization
Software consulting industry Insurance industry
Technology applied Internal Functional operational staff application Stakeholders
Sequential Interaction Connecting and among internal with ERP reciprocal staff applications Sequential, Interaction Connecting reciprocal among internal with customers and and external through the network stakeholders Web The tool used in this study for implementing the three systems was Ultimus (2005, ver. 7). This software tool is a workflow system, which provides BPM-methodology-compatible functions for business analysis, process design, and process configuration. The software provides an interface for linking with Microsoft’s standard database and applications, and its process simulation function provides a mechanism for analyzing the efficiency of different 8
整合企業流程管理架構與系統開發方法之行動研究/尚孝純 吳雅玲
process designs.
4. Process of BPM System development 4.1 The First Stage: The Fee Application Process System This process is a sequential process designed with multiple levels of approval, located in a university. Through structured analysis and in-depth observation of the linkage between business objective and actual procedure, we discovered paper work redundancies in the workflow. Since the reimbursement application must be delivered through official documents and verified by all executive units and accounting units, the applicants must physically visit several administrative offices and deliver the document in person. The computer thus became a mere copy machine for printing the electronic document for different offices. The process was long and time-consuming, while containing repetitive procedures and unneeded information. After discussions with relevant stakeholders, namely, the staff of the finance department, the administrative staff of the process and the key users: the applicants of the process, the study group proposed a streamlined process with the steps of official document printing and verification removed and combined (Figure 1). The simulation function revealed that the new process time was considerably reduced. Guidelines and tables of BPM methodology were helpful in analyzing business issues, business barriers of implementation, critical factors for process success, and user reaction to the new process.
Figure 1 Process Design of the First Stage We then analyze the applicability of BPM methodology (Table 4). When the BPM framework implemented this system, it provided a complete logical framework for analysis of the current situation, including: external business changes, understanding of the internal process, and the relationships between all of the processes. However, the stages of process design and implementation were still too conceptual and lacked concrete components to transform abstract process analysis into specific process design. Presently, the BPM framework was only focused on the exploration of the business process and neglected the fact that it should collect the functional requirements and analyze them during the development of 9
資訊管理展望 第 9 卷 第 2 期 民國 96 年 12 月
the business process. Thus, it was difficult for developers to transform the problems found in the business process into functional analysis, and this led to the disconnection between process analysis and system development. Hence, the gap between the process and stakeholder requirements remained unsolved. This disparity has revealed the need for a meticulous analysis of data and operational needs for proper system design. Table 4 Findings of the First System Eight stages of BPM (Burlton, 2001) The parts of actual development 1.Defining the business context for change None 2.Architecting processes and aligning business Understanding requirements and strategies defining the scale of the system 3.Creating the vision for change None 4.Understanding the existing process Data analysis, functional analysis, and security analysis 5.Renewing the process design Database design, functional design, and security design 6.Developing enablers and support mechanisms None 7.Implementing the change Installation and test 8.Operating process and continuing to improve None With the insufficiencies of the BPM method in mind, this study proposed the integration of BPM and SDLC and took apart the waterfall model of SDLC into individual components (shown in Table 5). The study proceeded with the application of the composite model to the second system. Table 5 The composite Methodology of BPM System Development BPM framework Used SDLC components Implementation content Defining the business Project charter Detecting the change and accessing the context for change business environment and goals Architecting processes Project charter Adjusting and analyzing the differences and aligning business among stakeholder requirements, strategies organizational strategies and process Creating the vision for This stage did not use the Proposing the final goal of improvement change SDLC component based on present problem Understanding the Business requirements Integrating the current process and existing process Data requirements discovering the improvement of the Functional requirements process Access/Security requirements Renewing the process Application design Combining a change of vision and design System design proposing the renewal process Technical design Developing enablers andThis stage did not use the Developing the guidelines, techniques and support mechanisms SDLC component capacities of process renewal General Implementing the Using logic design and physical design change Screen layout patterns to accomplish the implementation Menu construction of BPM system Operating process and Vendor testing Executing and maintaining all systems to continuing to improve User acceptance test keep on strengthening the whole process 10
整合企業流程管理架構與系統開發方法之行動研究/尚孝純 吳雅玲
4.2 The Second Stage: The Project Management Process System The project management process of a software consulting firm was in a semi-automatic form. Activities, such as filling in forms, dispersed asset management, and the visit record tool of sales representatives, were based on paper. These data were not connected with the enterprise resource planning (ERP) system, meaning that project members were only exposed to their own related functions. Therefore, this study divided current processes into sub-processes and re-designed the process system with regard to extra, non-electronic, or dispersed processes (Figure 2). With the SDLC method the redesigned process system was able to be integrated with the ERP system with data shared and operations connected. After the implementation of system, this study proposed process management plans, such as integrating the independent systems, adding performance examination, and the components of customer relationship.
Figure 2 Process Design of the Second Stage We then analyzed the completeness and compatibility (Table 6) of this integrated methodology. Since SDLC methodology complements BPM methodology in the area of system development, the SDLC components were easily merged into the BPM framework and did not cause conflict in the implementation process. SDLC components could lead to systematic records in terms of the analysis and design during the system development process, enhancing completeness. However, the greatest difference between the process system and general information system was that information system development was function-oriented, whereas the process system focused on processes across functions. Thus, the system analysis of SDLC methodology could not provide a complete view of the process with organizational structure and stakeholder issues addressed. Therefore, from the results of implementation of the second system, we found that current methodology would need to be enhanced with a complete view of the process. The following was the modified version of this methodology.
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資訊管理展望 第 9 卷 第 2 期 民國 96 年 12 月
Table 6 Completeness and Compatibility of the Second System BPM Framework SDLC Components Defining the business context Project charter for change Architecting processes and Project charter aligning business strategies Creating the vision for This stage did not use the change SDLC component Understanding the existing Business requirements process
Completeness Description Compatibility Description The description of the process change is too brief, and it Compatibility level is low. still cannot exactly control business change. Can only record independent process, cannot produce an Compatibility is medium. efficient description of the interaction among processes. The two cannot be compatible with each other.
Can completely reveal the overall requirements, but it cannot respectively access stakeholders’ requirements in depth. Data requirements Can completely reveal the static information, but the expression of dynamic information was less sufficient. Functional requirements Can completely reveal the needs of the functional aspect.
Access/Security requirements Renewing the process design Application design System design Technical design
Developing enablers and support mechanisms Implementing the change
This stage did not use the SDLC component General Screen layout Menu construction
Operating processes and continued improvement
Vendor testing User acceptance test
Compatibility is medium.
SDLC components can be completely compatible with the BPM framework. SDLC components can be completely compatible with the BPM framework Can completely reveal the needs of security of authority. SDLC components can be completely compatible with the BPM framework. Can completely reveal the design of interface and SDLC components can be completely compatible application programs. with the BPM framework. Can only manage system design from functional aspect, Compatibility is low. but cannot design from the process aspect. Can completely reveal the physical design of the SDLC components can be completely compatible system. with the BPM framework. The two cannot be compatible with each other. Can completely reveal general practice points of the system. Can completely express the practice points of system interface. Can completely express the practice framework of the system functional table. Only reveals the final result of tests and cannot completely show the whole test process. Can completely express the users’ test content. 12
SDLC components can be completely compatible with the BPM framework. SDLC components can be completely compatible with the BPM framework. SDLC components can be completely compatible with the BPM framework. Compatibility is low. SDLC components can be completely compatible with the BPM framework.
整合企業流程管理架構與系統開發方法之行動研究/尚孝純 吳雅玲
Modified Methodology This study has modified our integrated methodology and mainly focused on increasing the seven components of the process aspect (Table 7). Table 7 Modified BPM System Development Methodology BPM Framework SDLC Components Increased Components Defining the business Project charter (1) Business change evaluation context for change Architecting processes and Project charter (2) Business process relation aligning business strategies figures Creating the vision for This stage did not use the (3) Change vision plan change SDLC component Understanding the existing Business requirements (4) Process analysis Data requirements process Functional requirements Access/Security requirements Application design Renewing the process (5) Process design design System design Technical design Developing enablers and This stage did not use the (6) Equipment renewal list support mechanisms SDLC component Implementing the change General (7) System test log Screen layout Menu construction Operating processes and Vendor testing continued improvement User acceptance test The seven added items are: (1) Business Change Evaluation This component is for collecting the information on changes and trends which may influence the business process. Business change evaluation included: influence period, level, aspect, matter, and the involved process. Using this, managers can prepare in advance for a business change that might trigger process management. (2) Business Process Relationship Figure This study used Microsoft Visio to draw the business process relationship figure. This component could also use hand-drawing or other drawing tools (such as Word). The intention was to generalize the involved process in the record of business change evaluation. Thus, this study used a cross-process figure or a basic process figure to express the correlation among business processes. (3) Change Vision Plan Using information from the above two components, we negotiated with the top executives and set up the change vision of this process management. Under this vision, we planned the short, medium, and long-term milestones of this process management. Thus, change vision included business-triggered change, change vision and the objective plan. 13
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(4) Process Analysis This study used the analytical tools in BPMS to simulate detailed process figures and analyze the stakeholders, related documents, time spent, and other descriptions in each process. Through process analysis, the improvement opportunity can be structurally formed. (5) Process Design This component is for defining the overall process, scale of process system, process figures and cross-process figures, according to the complexity of the process. Subsequently, it can link with BPM software, such as AgentFlow, XXX of SAP, and Ultimus to manage the detailed process design upon the system aspects, with respect to the input, output, stakeholders, and forms of each process. Hence, it dispersed the system functions to each process for accomplishing the process-oriented system design. (6) Equipment Renewal List This component is for evaluating the support mechanisms such as the techniques, equipments and capacities for executing the process system based on the current business situation. The equipment renewal list included the priority and names of equipments, executive work content and time spent. Managers can efficiently accomplish the pre-development work of process system implementation via this list. (7) System Test Log This component is designed in order to manage the testing process throughout the process system development phase. It contains records of system tests, business and system issues, problems and solutions, and follow-up improvements.
4.3 The Third Stage: The New Insurance Policy Process System The third system is a reciprocal and network process of policy management in a large-scale insurance company. The involved organizations and users were greater in number, and the systems correspondingly more complicated. Through the observation of this organization, we discovered that its process consumed excessive labor resources in examine the correctness of each form, which went through departments many times for double-checking different sections of the policy. Given this, the goals of the process management are to ensure accuracy and reliability as well as increase efficiency for customers, defined as, directly, the insurance agents and, indirectly, the insurers. In the redesigned process, we created a web-enabled contact center linking administrative units with sale agents, and insurers. This hub of stakeholder contacts controlled the refined procedures (depicted in Figure 3) of the policy evaluation and provided complete information on the policy. Figure 6 gives the detailed process design figure. The ideas of the design included the following three points: (1) use web forms to replace the insurance policy papers to create unified and convenient data formats that are helpful for the subsequent examination of the insurance cases; (2) a trial balance tool of triggered processes, which is helps sales agents provide suitable insurance policies for 14
整合企業流程管理架構與系統開發方法之行動研究/尚孝純 吳雅玲
customers; and (3) change of the roles of sales representatives who no longer undertook the jobs as the file deliverers, making them professional insurance planning personnel. After the implementation of the refined process, researchers of this study monitored the process efficiency and reported that the labor resource and process time was considerably reduced, and that the administrative staff could focus more on their own specialties to ensure the quality of the policy. We re-evaluated this methodology (Table 7) from the aspects of completeness, compatibility, and efficiency of system development.
Figure 3 Process Design of the Third Stage (the front-half)
Figure 3 Process Design of the Third Stage (the back-half) (1) Completeness After the implementation of the third system with respect to the related components of the process, we found that this methodology was able to completely cover the scale of actual development. Compared with the initial components (Table 5), which merely focused on the requirement analysis of static functions, the modified methodology (Table 7) considered the process from diverse dimensions and increased the dynamic process aspect of the system analysis. Therefore, when facing a more complicated system, the various needs and roles of the stakeholders at each point in the process should be analyzed. Hence, using this methodology to completely analyze the business context is helpful for the completeness and practicability of a system design that is able to successfully accomplish system development and installation. 15
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The data collection processes of the system are the basis of successful system development. A complete analysis of the business context is beneficial for mastering an effective process design and improvement. The SDLC components (Table 5) used by the integrated methodology allow system developers to collect and record complete information. The SDLC components are useful for analyzing dispersed information on a particular function. However, the initial methodology may proceed merely with design by function, data, and interface. With the framework of an overall process map, the modified methodology organizes functional processes under the structure with a detailed system process analysis. It provides a close link with the data and defines interfaces between sub-processes according to different users. Additionally, when there was a change during the system development process, it recorded the change, and did not mix the framework of system development documents. Each stage of the system development was completely revealed and the environmental changes and relationships among business processes conveniently evaluated. Hence, this integrated methodology strengthens the responsiveness to business changes and controls the integration of business and systems. (2) Compatibility Although the initial SDLC components (Table 5) recorded the information at different stages, the components in each stage were actually independent and dispersed. In the third system implementation, we designed a variety of specific components of process development into the BPM framework (Table 7). Through the implementation of the third system, the two distinct methodologies were found to be more compatible in achieving the goal of process management success. The components designed by this methodology all started from the overall process and were elaborated with consideration of system design in the sub-processes. They seem to work in concert in the process system implementation. (3) Efficiency of System Development Figure 4 shows the duration of development for the three systems. We can see that the increasing duration of process system development primarily refers to the observation and analysis stages. For example, the development duration of the second stage increased from 13% to 23%. Through more definite and concrete requirement analysis, the study noted that the process design can be implemented more rapidly. In the life cycle of traditional system development, the implementation stage is the most expensive and time-consuming. However, in Figure 4, there is a reducing trend from the fifth to seventh stages. Although the third system is more complicated, the duration of the design and implementation stages in the process development is reduced. We suppose that the integrated methodology of the BPM framework and SDLC components allows the analysis of data to be more concrete. Hence, the duration of data collection and analysis in the system development stage is reduced, leading to an overall reduction in development times. System developers can focus on process design and implementation to efficiently and rapidly develop proper process system, which will be helpful in proposing a more complete solution for the current business situation. 16
整合企業流程管理架構與系統開發方法之行動研究/尚孝純 吳雅玲
Stage1: Defining the business context for change Stage2: Architecting processes and aligning business strategies Stage3: Creating the vision for change Stage4: Understanding the existing process Stage5: Renewing process design Stage6: Developing enablers and support mechanisms Stage7: Implementing the change Stage8: Operating the process and continuing to improve
Figure 4 Relative Percentage of Process System Development Duration Learning from these systems implementation, the duration of observation and analysis stages of process system development was gradually increased. In other words, the stages of creating the vision for change vision and understanding the existing process take more time. Meanwhile, the time taken for process system design and implementation was reduced. The business analysis stage appears to be helpful in the implementation of the system and future maintenance. BPM methodology is managed from a high level in the organization, making the resulting system more aligned to business strategies and extendible to further areas of the business. Because the composite methodology actively reviews stakeholder positions and requirements, and plans the organizational reformation for the transition, user acceptance can be expected to be higher. Therefore, this methodology can facilitate cross-organizational process integration.
5. Discussion Throughout each step of the iterative process of action research, the participants learned important points and made improved actions in the next step based on accumulated experience (Table 8). In addition to learning how to apply the composite model in the development of an effective process system, we also discuss the advantages and disadvantages of the two methodologies. BPM and SDLC methodologies have different conceptual views and cover different scales. SDLC is short-term, functionally-oriented, and focuses on the technical aspect of system development; thus, it tends to target information systems with specific functions for independent processes. However, the BPM framework is long-term, theoretically-orientated, and focuses on the continuous improvement of organizational processes. Thus, it tends to target the review of overall processes. The BPM methodology starts from business process and its goal is to achieve process effectiveness, while SDLC methodology starts from system 17
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function for achieving operational efficiency. We have proposed a composite methodology of the BPM method, within which essential SDLC methods are incorporated, whose common purpose is to design useful business operations and support business requirements and offset the disadvantages of SDLC. Table 8 Learning Points in the Action Research Process Figure Learning Points The participants learned how to ask focused questions, define terms, and collect relevant data Learned how to plan and use an analysis process that rules out bias
Stage 1: Learned the insufficiencies of process design and implementation Stage 2: Learned to incorporate SDLC components into BPM method Stage 3: Learned how to modify BPM system development methodology and apply to large-scale organization Learned how to analyze and yield validity and reliability Learned how to apply the findings to individual situations
6. Conclusion The objective of this study was to propose a composite methodology for the BPM method, with essential SDLC methods incorporated. Through action research, this study concretely implemented and installed systems for three different kinds of processes in order to repetitively adjust and strengthen this methodology. Empirical testing of the BPM methodology on the fee application system uncovered the insufficiency of the BPM methodology and led to the proposed preliminary model combining the BPM/SDLC methodologies. For the second system, we tested the compatibility of the SDLC components with the BPM framework. The functional nature of the SDLC methodology was highlighted and improved with the business vision and process environment examined. In the third system, we tested the modified methodology and evaluated the completeness, compatibility and efficiency of the model. 18
整合企業流程管理架構與系統開發方法之行動研究/尚孝純 吳雅玲
The BPM and SDLC methodologies have different conceptual views and cover different scales. The BPM methodology starts from business processes, with the goal of achieving process effectiveness, while the SDLC methodology starts from system functions and aims at achieving operational efficiency. Their common purpose is to design useful business operations and support business requirements. The action research of the composite model of the BPM/SDLC methodology reveals that the value of the involvement of the SDLC methodology lies in its provision of a complete guideline for design of a process system that can accelerate the efficiency of business process system implementation. The documentation discipline of the SDLC methodology is another useful contribution to the composite model. Furthermore, through observing iterative phases, the study formulated theory, planed action, took action, and evaluated the action. This process can promote collaboration by the subjects and support subjects’ learning cycles, and than we obtain information and generate knowledge to enhance the development of models. Consequently, the complete track of process design, linking system design and testing, and implementation, is helpful for the knowledge management of the process system. On the other hand, process system development focused on the understanding and analysis of the current process, and created the vision for a process revolution through process analysis. This view of organizational processes permits SDLC methodology to be enhanced. Consequently, this methodology integrates different stakeholder requirements, increasing the efficiency of system development, providing process extension, and upgrading business capacities for contingencies. It is expected that this composite methodology can be tested and further enhanced in future research, to make BPM theory more applicable and relevant to the changing business environment.
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