Enabling Operational Excellence
Enabling Operational Excellence
Enabling Operational Excellence
Enabling Operational Excellence

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Posts Tagged ‘intellectual capital’

BPM and the Knowledge Economy: White-Collar Work

Make no mistake, the future lies with automation of white-collar work. Fewer and fewer business problems these days focus on manufacturing and production processes, i.e., the nothing-but-widgets category. For all the non-widget-centric business activity in the world – which includes just about all every conceivable form of white-collar work – the following needs become paramount.
  1. Ensuring the quality of meta-data.
  2. Demonstrating compliance based actual rules, rather than the artifacts and effects that IT systems produce.
  3. Retaining, teaching and repurposing intellectual capital.
What would I do to correct the shortcomings of BPM for non-widget-centric business activity? Our answer is to become more why-centric, as opposed to narrowly how-centric.[1] You should focus on business capabilities, not just business processes. That shift has several essential features:
  • Understanding business strategy as something distinct from business processes (and BPM). Business goals and business risks should be drivers of business process design – not the other way around. You need to be strategy-driven, not simply process-driven.
  • Designing core metrics around business goals and business risks – the things that concern C-suite executives the most.
  • Realizing that for white-collar work the 3-D world of widgets has vanished, and that tolerances and quality can be expressed only in terms of business rules.
  • Treating business rules as a first-class citizen, externalized from process models.[2]
  • Identifying operational business decisions (based on encoded business rules) as a crucial focal point in re-engineering business processes.
  • Including a Why Button as part of every business solution. Pressing the Why Button leads immediately to the business rules that produced the results you see from any process.
~~~~~~~ Read more about the future for processes: BPM and the Knowledge Economy: Nothing But Widgets? http://www.brsolutions.com/2015/11/16/bpm-and-the-knowledge-economy-nothing-but-widgets/ What is the Future for Processes? http://www.brsolutions.com/2015/11/09/what-is-the-future-for-processes/ Are Processes and BPM Relevant in the Digital Economy? http://www.brsolutions.com/2015/10/19/are-processes-and-bpm-relevant-in-the-digital-economy/ Measuring Quality and Defects in the Knowledge Economy: http://www.brsolutions.com/2015/10/27/measuring-quality-and-defects-in-the-knowledge-economy/ Quality and Tolerances in the Knowledge Economy: http://www.brsolutions.com/2015/10/29/quality-and-tolerances-in-the-knowledge-economy/ ~~~~~~~~~~~~~~~ www.BRSolutions.com


[1] Refer to: Ronald G. Ross, “The Why Engineer™,” Business Rules Journal, Vol. 14, No. 11 (Nov. 2013), URL:  http://www.BRCommunity.com/a2013/b727.html
[2] Refer to the Business Rules Manifesto, now in almost 20 languages: http://www.businessrulesgroup.org/brmanifesto.htm

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BPM and the Knowledge Economy: Nothing But Widgets?

BPM often overreaches. Understanding, modeling and managing a business capability effectively requires a balanced view of six basic questions, not just one, as given in the table below. I follow Zachman in these matters, so yes, the table is Zachmanesque.

Interrogative

Basic Business Question

Kind of Model

1. What What inventory of things needs to be managed to support business activity? structural model (e.g., concept model[1], data model)
2. How How do transforms of things in business activity need to take place to add value? process model
3. Where Where does business activity occur? network model
4. Who Who collaborates with whom to undertake business activity? interaction model (e.g., organizational chart, use case)
5. When When does business activity take place? temporal model (e.g., schedule, event model, milestone model)
6. Why Why are results of business activity deemed appropriate or not? strategy model (e.g., Policy Charter[2], constraint model)
  If your business does nothing but manufacture or produce physical widgets (forget all the meta-data about those widgets), you will probably emphasize question 2 (i.e., process) above the others. Your overall approach and architecture will reflect that. You will naturally gravitate toward BPM. That tendency has at least three basic risks, even for organizations that do fall into the nothing-but-widgets category:
  • Your metrics will largely focus on process productivity (e.g., throughput, bottlenecks, latency), rather than strategic goals and alerts centered on external risks. E-suite executives tend to be much more focused on the latter.
  • Your mindset will be procedural, rather than declarative, which can cause you to embed business rules in process flows rather than externalize them. As a result your process models will be unnecessarily complex and your overall solutions un-agile.
  • You approach will fall woefully short in addressing the intellectual capital that underlies your processes. Such operation business knowledge ranges from simple meta-data, to the business logic that underlies operational business decisions.
Fewer and fewer business problems these days fall into nothing-but-widgets category. Even for widget-centric businesses, at least three needs are increasingly urgent:
  1. Ensuring the quality of meta-data.
  2. Demonstrating compliance based actual rules, rather than the artifacts and effects that IT systems produce.
  3. Retaining, teaching and repurposing intellectual capital.
These are not strengths of common BPM practices. ~~~~~~~ Read more about the future for processes: What is the Future for Processes? http://www.brsolutions.com/2015/11/09/what-is-the-future-for-processes/ Are Processes and BPM Relevant in the Digital Economy? http://www.brsolutions.com/2015/10/19/are-processes-and-bpm-relevant-in-the-digital-economy/ Measuring Quality and Defects in the Knowledge Economy: http://www.brsolutions.com/2015/10/27/measuring-quality-and-defects-in-the-knowledge-economy/ Quality and Tolerances in the Knowledge Economy: http://www.brsolutions.com/2015/10/29/quality-and-tolerances-in-the-knowledge-economy/ ~~~~~~~~~~~~~~~ www.BRSolutions.com


[1] Refer to Refer to Business Rule Concepts:  Getting to the Point of Knowledge (4th ed), by Ronald G. Ross, 2013, Chapter 1 and Part 2.  http://www.brsolutions.com/b_concepts.php 
[2] Refer to Building Business Solutions:  Business Analysis with Business Rules by Ronald G. Ross and Gladys S.W. Lam, 2nd ed. (Sept, 2015), an IIBA Sponsored Handbook, Chapter 4.  http://www.brsolutions.com/b_building_business_solutions.php 

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What is the Future for Processes?

To understand the future of processes, you must dig a little deeper than many people do. Process thinking goes back well over a 100 years, to the origin of modern iron and automobile production. The raw materials and finished goods of such manufacturing and production processes are literally spatial – 3-dimensional. What can you do to significantly improve productivity in a 3-dimensional world? The answer these days is simple: You build robots. Robotization has literally changed the world during the past 30-40 years. Rather than manufacturing and production processes, however, the world is now increasingly focused on white-collar and digital processes. What 3-dimensional presence do the raw materials and finished goods of these processes have? Well, exactly none. The raw materials and finished goods of these processes aren’t physical and simply have no spatial presence whatsoever (except maybe for paper artifacts). Robots (at least physical ones) aren’t an option. That fact of life makes a huge difference in how you have to think about automation for such processes. Instead, the raw materials and finished goods of such processes are all about your operational business knowledge – your intellectual capital – and your capacity to express and apply it. That capability, in turn, depends directly on your business terminology and business language. For white-collar processes you have no choice – the world is semantic. So you must deal with the subject matter semantically. That takes us in a very different direction than most professionals currently foresee. For one thing it takes us toward natural language and away from diagrams-for-everything. That’s a huge shift in mindset. Imagine having a business conversation with your smart phone about gaps and ambiguities in business policies and in the meanings of the vocabulary you use to talk about subject matter knowledge. Don’t think that’s possible? Have you watched your kids talking to their smart phones lately? Sooner or later businesses will realize that operational business knowledge differentiates their product/services and enables their ever-more-automated processes to function. Capturing, managing and re-using that intellectual capital puts a premium on structured business vocabulary (concept models[1]) and on business rules expressed in structured natural language[2]. Those business rules are the only way you have to ensure quality from white-collar and digital processes. ~~~~~~~ Read more on this topic: Are Processes and BPM Relevant in the Digital Economy? http://www.brsolutions.com/2015/10/19/are-processes-and-bpm-relevant-in-the-digital-economy/ Measuring Quality and Defects in the Knowledge Economy: http://www.brsolutions.com/2015/10/27/measuring-quality-and-defects-in-the-knowledge-economy/ Quality and Tolerances in the Knowledge Economy: http://www.brsolutions.com/2015/10/29/quality-and-tolerances-in-the-knowledge-economy/ ~~~~~~~~~~~~~~~ www.BRSolutions.com
[1] Refer to “What Is a Concept Model?” by Ronald G. Ross,  Business Rules Journal, Vol. 15, No. 10 (Oct. 2014), URL:  http://www.BRCommunity.com/a2014/b779.html
[2] e.g., in RuleSpeak®. Refer to http://www.rulespeak.com/en/

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