Strategic process optimization

A webinar going on right now on BPM, BAM and SOA: Optimizing both Business and IT focussing on the ROI of process integration. Beth Gold-Bernstein contrasted the tactical versus strategic approaches to process integration:

  • Tactical approach requires defining underlying integration infrastructure
  • Strategic approach — enterprise integration architecture defines infrastructure, business defines the process

This goes back to one of the key ideas that I’ve been working with lately, namely the role of process and BPM in an enterprise architecture framework.

She also made a distinction between web services orchestration and business process management, where she sees WSO as providing a graphic way to design and control flow between web services, but without all the process governance (monitoring, analytics, management and simulation) that you would find in BPM. Given the role being assigned to BPEL, is this just another artificial distinction in the process marketplace?

BPM and measuring performance

A week ago today, I was in a tutorial by Roger Burlton of the Process Renewal Group on Enterprise Business Architecture: Strategy, Process and Capabilty Alignment while at the BPMG conference in London. He made a great analogy regarding performance measures: knowing the final score doesn’t tell you if it was a good game. (Although after once watching the Blue Jays lose 22-2, I posit that you could have told that it was a crappy game by the score alone.) Roger was one of many people at the conference who spoke about BPM in the context of measuring business goals. To quote Terry Schurter, who I heard speak the following day at his session BPMS – Selection by Business Value, “goals that can’t be measured aren’t goals”.

All this shows that BPM is finally creeping out of departments and into the mainstream of the enterprise. I read a post about a CEO’s view of BPM as discussed at a recent CEO roundtable today on the Milestone Group’s Thoughts On The Tech Industry blog that really nailed it:

BPM, or Business Process Management is the fasting growing segment in the BI / Data Management market sector. Growing out of departmental process management initiatives, the key driver now is to integrate across the enterprise, and to provide scorecards, reports, and other “C Level” deliverables with more confidence, so that predictive modeling and optimization initiatives are really based on the most complete and highest quality set of data available in the enterprise.

The CEOs consider BPM as a feed for enterprise BI/performance management, which is completely accurate — after all, why else would you be doing BPM if not to improve performance, and why would you be doing anything to improve performance if you weren’t also including it in your enterprise performance measures?