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Design Principles for Process-driven Architectures Using Oracle BPM and SOA Suite 12c
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Process optimization offers huge opportunities for each company to distinguish itself from its competitors and focus more closely on customer wishes and requirements. Customers assess the whole shopping experience and not just the product or service. Therefore, it makes sense to optimize processes at all levels, from handling a sales inquiry to processing an order, product or service, production, delivery, and support.
Process optimization can increase revenue and profits considerably if done the right way.
A systematic approach to process optimization, which should include all end-to-end processes, has multiple positive effects on a company. It can help increase the competitive advantage of a company in several ways. The following are some of the most important effects of process optimization:
From a technical perspective, process optimization is about developing optimized process models, which we will look at in the next section.
Process optimization is the final phase in the BPM cycle. The objective of this phase is to develop the optimized process models called TO-BE models.
Developing the TO-BE process model is a challenging task because we must balance different factors. First, we have to define the objectives that we want to realize through process optimization. The most obvious objective can be that the process performs faster with less utilization of resources and people. The other objective can be to improve visibility into the process execution. Knowing the stage at which the process execution currently is can be helpful to the management as well as to the customers, who might even be able to track the process online. The objective of optimization can also result in improvements in the quality of products/services, better working conditions for employees, reduced impact on the environment, and so on.
Then, we have to identify where to start the optimization. To identify this, we use the data gathered in the process execution and control phases. The data gathered by BAM tools can be very helpful in identifying process bottlenecks in real time and in identifying activities or sets of activities that would be suitable for optimization.
Another way of identifying process optimization points is process simulation, which we mentioned earlier in this chapter. It is important to understand that BPM provides tools that propagate the data from BAM (process execution and control) into the process-modeling tool, where this real data can be used for process simulation. This is important because the tedious work of estimating process runtime parameters (activity execution, resource utilization, number of requests in a given period of time, and so on) is eliminated. At the same time, data gathered through BAM is much more accurate than estimates.
An important aspect of process optimization is new ideas. In closed organizational structures, the people involved in process optimization may be blinkered and may lack the ability to look at the process from a broader perspective. It would, therefore, be useful to recruit external consultants or other people from outside the organization, who can generate fresh ideas. Only in this way can we realize the full potential of process optimization.
However, when we gather new ideas, we should be careful to assess each new idea and find out whether it is realizable. We have to find a balance between new ideas and the level of changes a company's existing organizational structure can accommodate.
As employees do not like changes, we have to be careful in deciding how much change we want to introduce at one go. Ideally, we could change the process model considerably and try to implement changes in one large step. However, in many organizations, this has proved to be a failure because employees were unable to accommodate such changes overnight. If we do not invest enough time in communication with employees, they could start showing resistance to the changes. Therefore, it is often better to optimize in smaller steps and reach complete optimization over several stages.
On the other hand, we also have to be aware that process optimizations require modifications in the applications. Software modifications can be costly and they require time and resources. Therefore, from the IT perspective, it might be better to modify the applications at one go, that is, to optimize all at once.
Process optimizations often require changes in a company's organizational structure. We have to think about these changes too and obtain the necessary support from the top management. Otherwise, we will not be able to change the organizational structure.
Finally, we have to check whether the optimizations have been successful and whether we have achieved our goals. We do this by process simulation before it goes into production and after the process has been deployed to production through process control and monitoring.
Process optimization is not an easy task. The following are some common problems that you might face during optimization:
With this, we have concluded our discussion on the BPM life cycle.
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