INFO-H420

Management of Data Science and

Business Workflows
Part I: Introduction
Dimitris SACHARIDIS

2024-2025
What is a Business Process?

2
 Issue
delivery Package
receipt Load products Issue
truck invoice

Prepare
shipment Schedule Schedule
payment Check &
delivery
confirm
PO
Unload
truck
Notify
shipment
Obtain
PO
confirm.
Match
Check incoming
Request
Invoice payment
PO change

3
Business processes

Assets & Organisation

Partners
Function A Function B Function C
Financial

Human
Business Process
Resources
Business Process Customers
Technology
Business Process
Materials

4
 Check &
PO Package Load Notify Issue Match Payment
confirm
received products truck shipment invoice payment made
PO

Obtain Issue
PO Schedule Unload Check Schedule Goods
PO delivery
issued delivery truck invoice payment arrived
confirm. receipt

5
Your turn…
Serve
Load meal
dish-
washer

Bring
menu
Take
Collect order
Collect payment
laundry Unload
Brush
dish-
grills
washer
Collect
laundry
Clean
kitchen Greet &
Sweep surfaces
Present & mop seat
bill

6
Customer Greet & Take Bring Serve Present Issue Customer
arrived seat order menu meal bill invoice paid

Load Clean Unload

Kitchen Brush Collect Sweep Kitchen
dish- kitchen dish-
is dirty grills laundry & mop is clean
washer surfaces washer

7
A business process is…
a chain of events, activities and decisions
...involving a number of actors and objects,
…triggered by a need
and leading to an outcome that is of value to a customer.

Examples:
• Order-to-Cash
• Procure-to-Pay (aka Purchase-to-Pay)
• Application-to-Approval
• Issue-to-Resolution

8
 “My washing machine doesn’t work…”
Negative outcomes (value-reducing): Positive outcomes (value-adding):
• Fault not repaired in a timely manner • Fault repaired immediately with
• Fault repaired but customer pays minor intervention
more than expected • Fault repaired, covered by warranty

Insurance
Call Centre Company
Technician

Customer Customer
Parts
Service Store
Dispatch
Centre

VALUE
issue-to-resolution process
9
Your turn

• Think of an organization and a process in this organization:

• Is it order-to-cash, procure-to-pay, application-to-approval, issue-to-resolution…
• Who is/are the customer(s)?
• What value does this process deliver to its customer?
• Who are the key actors of the process?
• List at least 3 outcomes of the process.

10
What is Business
Process
Management?

And why should I

care about it?

11
 Improving Performance (Rummler’s Framework)
Business Environment
Economy Regulatory Culture

Assets & Organisation

Resources
Performance Planning Performance Management Stakeholders
Financial

Value
Human Function A Function B Function C
Resources
Business Process
Technology
Business Process Customers
Materials
Business Process

Competitors
12
Process performance

If you had to choose between two services, you would typically

choose the one that is:

• F…
• C…
• B…
Process performance

If you had to choose between two services, you would typically

choose the one that is:

• Faster
• Cheaper
• Better
Process performance

Three dimensions of process performance

• Time
• Cost
• Quality
 Improving process performance

Customer Greet & Take Bring Serve Present Issue Customer

arrived seat order menu meal bill invoice paid

16
 How would you improve this process?
Outsource to Customer Standardize
Eliminate Cooking

Automate

Invest and Build

Re-sequence

Eliminate Waiters

17
Business Process Management (BPM)
Body of principles, methods and tools to design, analyze,
execute and monitor business processes, with the aim of
improving their performance.

IT systems
Customers Employees

Business
Processes
Data Trading
Partners

IT infrastructure Suppliers

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Why BPM?

“The first rule of any technology used in a business

is that automation applied to an efficient operation
will magnify the efficiency.

The second is that automation applied to an

inefficient operation will magnify the inefficiency. ”
Bill Gates
19
In other words…

Information Yields
Technology Business
Value

Enables
Yields
Process
Change

Index Group (1982)

20
How to go about BPM?

21
The BPM lifecycle

Process
identification

Process
Process architecture
architecture

Conformance
Conformance and
and Process As-is
As-is process
process
performance
performance insights
insights discovery model
model

Process
monitoring and Process
controlling analysis

Executable
Executable Insights
Insights on
on
process
process weaknesses
weaknesses and
and
model
model their
their impact
impact

Process Process
implementation To-be
To-be process
process redesign
model
model

22
Process identification steps

1. Designation step
• Enumerate main processes Process
Architecture
• Determine process scope ‫تعیین محدوده فرآیند‬

2. Prioritization step (aka Process selection)

Prioritize processes based on: Prioritized
• Importance Process
• Health Portfolio
• Feasibility ‫امکان سنجی‬

After Davenport (1993)

Example: process architecture
Wholesaler

Strategic
Management

Logistics Suppliers
Management Management
Warehouse Demand
Management Management
Management processes

Direct
Sales Distribution
procurement

Marketing Service
Core processes
Indirect
Finance IT HR
procurement
Support processes
Prioritization (aka Process Selection)

1. Importance
Which processes have greatest impact on the organization‘s strategic
objectives?
2. Health (or Dysfunction)
Which processes are in deepest trouble?
3. Feasibility
Which processes are most susceptible to successful process
management?

Prioritized process portfolio

Hammer, Champy (1993)

Example: prioritized process portfolio
Financial institution

Short-term action
High Feasibility
Loan Rating
Low
controlling Contract
preparation Medium
Loan
decision Loan market High
evaluation
Handling of
payments Loan
planning
Loan
application
Low
Poor Health Good
Possible Strategic fit?
The BPM lifecycle

Process
identification

Process
Process architecture
architecture

Conformance
Conformance and
and Process As-is
As-is process
process
performance
performance insights
insights discovery model
model

Process
monitoring and Process
controlling analysis

Executable
Executable Insights
Insights on
on
process
process weaknesses
weaknesses and
and
model
model their
their impact
impact

Process Process
implementation To-be
To-be process
process redesign
model
model

27
Business process model
Invoice handling example

Finance ERP Invoice Report Invoice

Department
Enter Check
no
Invoice Invoice Post Invoice
mismatches
Invoice Details Mismatches
Invoice
received posted

Invoice DB Invoice
Senior Finance Officer
mismatch Block
exists Invoice
Invoice
blocked

28
The BPM lifecycle

Process
identification

Process
Process architecture
architecture

Conformance
Conformance and
and Process As-is
As-is process
process
performance
performance insights
insights discovery model
model

Process
monitoring and Process
controlling analysis

Executable
Executable Insights
Insights on
on
process
process weaknesses
weaknesses and
and
model
model their
their impact
impact

Process Process
implementation To-be
To-be process
process redesign
model
model

29
Qualitative process analysis
Root-cause analysis example

30
Quantitative process analysis
Process simulation example

31
The BPM lifecycle

Process
identification

Process
Process architecture
architecture

Conformance
Conformance and
and Process As-is
As-is process
process
performance
performance insights
insights discovery model
model

Process
monitoring and Process
controlling analysis

Executable
Executable Insights
Insights on
on
process
process weaknesses
weaknesses and
and
model
model their
their impact
impact

Process Process
implementation To-be
To-be process
process redesign
model
model

32
Process redesign

AS-IS process model TO-BE process model

Cost

Time
Flexibility

Quality
33
The BPM lifecycle

Process
identification

Process
Process architecture
architecture

Conformance
Conformance and
and Process As-is
As-is process
process
performance
performance insights
insights discovery model
model

Process
monitoring and Process
controlling analysis

Executable
Executable Insights
Insights on
on
process
process weaknesses
weaknesses and
and
model
model their impact
their impact

Process Process
implementation To-be
To-be process
process redesign
model
model

34
Process implementation

Process Process change

automation management

Executable
Job redesign
process design

IT development
Training
& configuration

Performance
Testing management
plan

... ….
35
The BPM lifecycle

Process
identification

Process
Process architecture
architecture

Conformance
Conformance and
and Process As-is
As-is process
process
performance
performance insights
insights discovery model
model

Process
monitoring and Process
controlling analysis

Executable
Executable Insights
Insights on
on
process
process weaknesses
weaknesses and
and
model
model their
their impact
impact

Process Process
implementation To-be
To-be process
process redesign
model
model

36
Process monitoring
Dashboards, alerts & reports

Event Model-based analytics (p. mining)

stream
DB logs

37
The BPM lifecycle

Process
identification

Process
Process architecture
architecture

Conformance
Conformance and
and Process As-is
As-is process
process
performance
performance insights
insights discovery model
model

Process
monitoring and Process
controlling analysis

Executable
Executable Insights
Insights on
on
process
process weaknesses
weaknesses and
and
model
model their
their impact
impact

Process Process
implementation To-be
To-be process
process redesign
model
model

38
Process Identification

39
The BPM lifecycle

Process
identification

Process
discovery

Process
monitoring and
Gover- Process
Strategy nance analysis
controlling

Culture

Process Process
implementation redesign

40
Process identification

What?
1. Identify an organization’s business processes
2. Prioritize their management based on certain criteria

Why?
1. Understand the organization
2. Maximize value of BPM projects
Process identification steps
1. Designation step
• Enumerate main processes Process
Architecture
• Determine process scope

2. Prioritization step (aka Process selection)

Prioritize processes based on: Prioritized
• Importance Process
• Health Portfolio
• Feasibility

After Davenport (1993)

Process Enumeration

“Most businesses have just three core processes:

1. Sell stuff
2. Deliver stuff
3. Making sure you have stuff to sell and deliver”

Geary Rummler
Porter: Types of processes

Management
Processes

Customers / Stakeholders
Suppliers / Partners

Core Processes

Support Processes

After Michael Porter (1985)

Example: core, support and management processes
Wholesaler
Core processes
• Sales (lead-to-quote, quote-to-order, order-to-cash)
• Purchase-to-Pay (direct procurement, e.g. supplies replenishment)
•…

Support processes
• Purchase-to-pay (indirect procurement, e.g. parts replenishment,
operational resources replenishment…)
• HR (policies update, recruitment, induction, probation…)
•…

Management processes
• Suppliers management (suppliers planning, suppliers acquisition…)
• Logistics management (logistics planning, logistics controlling…)
•…
 Relations between core, support, mgt processes

Management processes Sign

Contracts
provide direction, rules and
practices
Establish
Sourcing Plan
Evaluate
Vendors
Procedure Vendors
Process

Core processes
Fill Order Process
generate value as they
are directly linked to Receive Approve Deliver
Fill Order
external customers Order Order Order

Reorder
Supplies
Support processes provide
Stock Process Order
resources to be used by other Supplies Supplies
processes
Receive
Supplies
Example: process architecture
Wholesaler

Strategic
Management

Logistics Suppliers
Management Management
Warehouse Demand
Management Management
Process
Management processes group

Direct
Sales Distribution
procurement

Marketing Service
Core processes
Indirect
Finance IT HR
procurement
Support processes
Example: process architecture
Insurance company

Strategic
Management
Corporate Market Investor
Development Development Relations
Management processes

Risk Assessment & Management

Marketing & Sales

Underwriting Policy Claims
Management Servicing Management
Payments Collection and Disbursement
Assets Management
Core processes
Finance/ Legal/
Reinsurance IT HR
Treasury Audit
Support processes
Exercise: classify by process type
These groups of processes are typically performed at a
university. Categorize each process group as core, support or
management
Sport Indirect
HR
services procurement

Strategic Teaching
Management award courses

IP
Marketing
Management

Course Additional
Management services mgt

Language Admission IT
training

Market Teaching
management professional courses
Solution: identify process types
Process scoping

Processes are interdependent → insights into interrelations required

• Specialization: general – special product/service
• Horizontal: upstream – downstream processes and their value chains
• Vertical: main processes – sub-processes

Process architecture
 Value chain modeling
• Chain of processes an organization performs to deliver value to
customers and stakeholders
• More generally, a mechanism to group high-level business
processes according to an order relation (can be applied to
core, support and management processes)

business
process
Procure-to-service

order
relation
Guidelines to identify horizontal boundaries in
value chains
1. Change of key business object in the process
2. Change of granularity of main business object
3. Change in frequency/time
4. Change in intermediate outcome/resolution/objective
Example: value chain
Wholesaler
Core processes
Typical value chains for core processes
Think around three main steps:
• Imagine it (design new product/service)
• Build it (source, assemble, deliver product/service)
• Sell it (market, sell, service product/service)

Stocked Producer
Example:
products:

Specializations
made to order

MTO
products:

engineering to order
ETO
products:
Example: value chains for service provider
IT service provider

Design Market Sales Deliver Service

Systems Integration

Outsourcing

Network Services

Enterprise Server Technology

Example: value chain of non-core processes
Support processes

HR:

Accounting:

Management processes

Suppliers
management:

Risk
management:
Example: process architecture & value chains
Wholesaler

Strategic
Management

Warehouse Logistics
Management Management
Suppliers Demand
Management Management
Management processes
Chevron: Direct Box:
Sales Distribution
collapsed procurement
groups
Procure-to-Service
value chain processes/
Marketing Service
Core processes value chains

Indirect
Finance IT HR
procurement
Support processes
Alternative: process architecture – groups
Consultancy Firm
Manage Firm
1.1 1.2 1.3 1.4 1.5
Management Plan the Govern the (Re)design Develop Methods Change the
processes Business Business Processes & Standards Business

Expanded
Relate to Clients
Core 2.1 2.2 2.3 2.12 process
Optimize Develop Raise Awareness Evaluate Client
processes Stakeholder
Relationships
Service Offerings of Services Solution Delivery group

Optimize Portfolio Deliver Solutions

2.4 2.5 2.6 2.7 2.8
Plan Delivery of 2.13 Deliver Provide
Gain Initiative Deliver Business
Service to Service Adjust Portfolio Infrastructure Professional
Commitment System Solutions
Corp. Solutions Services

Optimize Solutions
2.9
Operate 2.10 2.11
Infrastructure & Retire Solutions Support Users
Business Systems

Support Firm
3.1 3.2 3.4 3.6
Support 3.3 3.5
Provide Expert Provide HR Acquire Goods & Provide Working
Provide IT Tools Obtain Financial
processes Advice & Capabilities Services Facilities
Services
Knowledge
 Typical artifacts for vertical scoping
Value chains
Chains of processes. Stay at a high level. Rule of thumb: 3-7 processes
• Procure-to-service, Risk management

(Root/Main) Processes
Build up value chains and affect each other. They are abstract
• Lead-to-quote, Quote-to-order, Order-to-cash

Subprocesses Typical focus of Process enumeration

Build up processes. They are detailed, involve multiple activities and can be layered on different levels of
abstraction (i.e. sub-subprocesses)
• Order shipment, invoicing

Process tasks
Build up processes and sub-processes. They are atomic and performed by human beings, IT systems or
equipment
• Approve invoice
Process architecture: hierarchical view

Level 1
Process
Landscape

Process hierarchy
Level 2
Main
Processes
(e.g. BPMN)

Level 3+
Subprocesses, Tasks
(e.g. BPMN)
How many levels in the process architecture?

62
Example: hierarchical process architecture
Insurance company

Level 1
Strategic
Management
Corporate Market Investor
Development Development Relations
Management processes

Risk Assessment & Management

Marketing & Sales

Underwriting Policy Claims
Management Servicing Management
Payments Collection and Disbursement
Assets Management
Core processes
Finance/ Legal/
Reinsurance IT HR
Treasury Audit
Support processes
Example: hierarchical process architecture
Insurance company
Level 2

Strategic Corporate Marketing Investor

Management development development relations
Process
group
Define Define offering Plan
Design & manage
business concept & and customer investor
corporate policies
long-term vision value proposition relations

Develop
Define pricing
Build Process
Manage
business investor subgroup
knowledge strategy
strategy relations

Manage Manage Manage

Define and manage
strategic change & investor
channel strategy
initiatives improvement relations

Manage Communicate
partners with stakeholders

Manage
investments &
divestments

Management processes
Example: hierarchical process architecture
Develop Define offering
business and customer Process
Insurance company strategy value proposition subgroup
Define
Develop overall
offering and
mission statement
positioning

Main
Evaluate strategic Develop value
options proposition process
Level 3
Select
Validate value
long-term business
proposition
strategy

Coordinate
Develop
functional and
new branding
operational strategies

Align
functional and
operational strategies

Create
organisational
design

Develop
organisational
goals

Formulate
business unit
strategies

Management processes
Example: hierarchical process architecture
Insurance company

Level 4

Develop overall
mission statement
Main
process
Define
current business

Formulate Subprocess
mission

Communicate
mission

Management processes
Prioritization (aka Process Selection)

1. Importance
Which processes have greatest impact on the organization‘s strategic
objectives?
2. Health (or Dysfunction)
Which processes are in deepest trouble?
3. Feasibility
Which processes are most susceptible to successful process
management?

Prioritized process portfolio

Hammer, Champy (1993)

Example: prioritized process portfolio
Financial institution

High Feasibility
Loan Rating
Low
controlling Contract
preparation Medium
Loan
decision Loan market High
evaluation
Handling of
payments Loan
planning
Loan
application
Low
Poor Health Good
Acknowledgements

• All material comes from Marlon Dumas, Marcello La Rosa, Jan Mendling,
Hajo A. Reijers, authors of the “Fundamentals of Business Process
Management” book.

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