Digitalization of the Process of Process Management
The BPM-D
®
Application
Mathias Kirchmer
1
, Peter Franz
2
and Rakesh Gusain
3
1
Managing Director and Co-CEO, BPM-D; Affiliated Faculty, University of Pennsylvania, U.S.A.
2
Managing Director and Co-CEO, BPM-D
3
Director, BPM-D
Keywords: BPM, Business Process Management, Digitalization, Process of Process Management, Execution, Strategy,
Process Design, Strategy Execution, Business Processes, Digital Technology, BPM-Discipline,
Implementation, Enterprise Architecture, Process Modelling, Value-Driven BPM.
Abstract: Business Process Management (BPM) has become a key manage discipline that translates strategy into people
and technology based execution. It helps organizations to realize the full potential of their digitalization
initiatives. BPM is implemented through the “process of process management” (PoPM). To assure continuous
improvements of the PoPM an appropriate digitalization approach for the PoPM itself is essential. However,
little work has been done in this field and companies are failing to recognise the importance of an integrated
digitalization of the PoPM. This paper presents a successful approach for the digitalization of the PoPM to
enable a powerful BPM-Discipline. It includes experiences from a first pilot implementation of the developed
prototype, the BPM-D Application.
1 INTRODUCTION
Business Process Management (BPM) is increasingly
seen as a management discipline that has significant
impact on an organization (von Rosing et al., 2015).
It provides value by transforming strategy into people
and technology based execution – at pace with
certainty (Franz and Kirchmer, 2012). BPM plays a
key role in realizing the full potential of digitalization
initiatives (Kirchmer and Franz, 2016; Kirchmer,
2017). The discipline of process management enables
ongoing strategy execution and digitalization in our
volatile business environment.
The BPM-Discipline is also implemented through
a process of its own, the process of process
management (PoPM). The increasing importance of
the BPM-Discipline for the success of an organization
requires an appropriate performance improvement of
the PoPM. First progress in this area has been made
through the appropriate design of the PoPM
(Kirchmer, 2015). In order to achieve the next
performance level we apply digitalization
systematically to the PoPM itself.
2 BPM FOR STRATEGY EXECU-
TION AND DIGITALIZATION
In a recent research study, the Gartner Group showed
that only 13% of organizations reach their yearly
strategic goals (Cantara, 2015). This situation can
even get worse with more and more organizations
starting their digitalization journey and thus
increasing the requirement for and pace of change.
According to the same study only 1% of business
have their processes sufficiently under control to
realize the full potential of digitalization. So the gap
between expectations and reality grows even more.
This is where the BPM-Discipline helps. It closes the
gap between strategic expectation and reality.
2.1 Discipline of Strategy Execution
BPM has become the management discipline that
enables an effective strategy execution across the
organization (Swenson and von Rosing, 2015). It
operationalizes strategy so that it can be executed
through the appropriate combination of people and
technology, fast and at minimal risk (Franz and
Kirchmer, 2012). This is visualized in the BPM-D
®
Framework shown in Figure 1. This patent-pending
89

framework summaries key aspects of a
comprehensive definition of BPM and
operationalizes them by an appropriate management
of the process lifecycle from design, implementation,
execution to control of the process.
Figure 1: BPM-D
®
Value Framework.
It is possible to leverage the BPM-Discipline for
enterprise-wide strategy execution mainly because of
the transparency it creates as well as its organization-
wide customer and outcome-oriented approach. The
discipline of BPM enables cross-departmental
initiatives to achieve values like quality and
efficiency, agility and compliance, integration into
enterprise networks and internal alignment as well as
innovation and conservation of existing practices
(Kirchmer, 2015). These typical values the discipline
of BPM delivers are shown in the BPM-D Value-
Framework in Figure 2.
Figure 2: The BPM-D Value-Framework.
These values or a sub-set of them are
systematically combined through the BPM-
Discipline to make strategy happen. The supporting
methods and models enable an efficient and effective
approach to this strategy execution.
2.2 Value-Switch for Digitalization
A rapidly increasing number of organizations makes
digitalization a part of their strategy. Digitalization is
defined as the integration of physical products, people
and processes through the internet of things (IoT) and
related information technology (IT) (McDonald,
2012; Scheer, 2015). This definition is visualized in
Figure 3.
Figure 3: Definition of Digitalization.
Business normally have a solid management
discipline around products they produce or buy, e.g.
as equipment. Examples are product or asset
management disciplines. They normally also have a
good discipline around their people and their
information technology. However, in many cases the
discipline around their business processes is missing
(Cantara, 2015). The BPM-Discipline closes this gap.
It uses the opportunities of digitalization to create
new or improved business processes which realize the
strategy of the organization.
BPM provides the answers to the main issues
business struggle with in their digitalization
initiatives. Figure 4 shows key challenges
organizations encounter – all of them addressed
through the BPM-Discipline.
Figure 4: Key challenges of Digitalization Initiatives.
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2.3 The Process of Process
Management
The BPM-Discipline is implemented, just as any
other management discipline: through the appropriate
business processes. We refer to those processes
realizing the BPM-Discipline as the “process of
process management” (PoPM) (Franz and Kirchmer,
2012). This PoPM consists of project-related sub-
processes, focused on improving the organization and
realizing the targeted value, and asset-related
processes, enabling efficient and effective
improvements. In both groups we can distinguish
planning and realization related sub-processes. A
definition of the PoPM is described in the BPM-D
Process Framework, represented in Figure 5
(Kirchmer, 2015; Kirchmer, 2017).
Figure 5: The BPM-D Process Framework.
To support the implementation and continuous
improvement of this PoPM we have described this
business process from all relevant views (Scheer,
1998): organization, functions, data, deliverables and
control view (Kirchmer, 2015). In over 40 business
transformation and improvement initiatives we have
proven that this PoPM definition delivers significant
value - adjusted and applied in the specific business
context (Kirchmer, 2016). It is sufficiently complete
and consistent.
The PoPM helps to focus on what really matters,
improves or transforms processes in the specific
context of an organization and sustains those
improvements.
The high importance of the BPM-Discipline for
strategy execution and digitalization requires and
justifies and even more accelerated improvement of
the PoPM and its application to specific
organizations. This can be achieved by digitalizing
the PoPM itself. This is illustrated in Figure 6.
Especially the “focus” and “sustain” effects of the
PoPM are often underestimated and underdeveloped
in traditional companies so that the BPM-Discipline
helps here to move existing practices to the next level
of performance. It becomes the key means that help
the “Chief Process Officer” (Kirchmer and Franz,
2014a) guide his journey of ongoing strategy
execution and digitalization.
Figure 6: Digitalization of the Process of Process
Management.
3 OBJECTIVES OF THE
DIGITALIZATION OF THE
PROCESS OF PROCESS
MANAGEMENT
There are a large number of digital tools supporting
the PoPM, such as process modelling and repository
tools, process automation and workflow engines,
robotic process automation, block chain, or process
analytics and mining tools. Most of them target the
execution or design of processes or some other small
components of the PoPM. Those digital enablers are
often not or only loosely integrated. In order to get
best possible results, the digitalization of the PoPM
needs to be more comprehensive. We have identified
three core objectives:
• Focus on what matters most
• Don’t re-invent the wheel
• Make process management fun
These objectives are realized based on the BPM-D
Process Framework as an example. They can be
applied the same way to other PoPM reference
models and frameworks.
3.1 Focus on What Matters Most
An analysis of the different sub-processes of the
BPM-D Process Framework based on over 200
process initiatives has shown that there are nine areas
which are currently not well covered through digital
Digitalization of the Process of Process Management - The BPM-D® Application
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tools. The operationalization of a company strategy
through an appropriate process strategy is one
important area that is not well supported. An
organization only competes with about 15-20% of its
processes (Franz and Kirchmer, 2012). All the others
are commodity processes that do not really impact the
competitive positioning provided that they are
performed at least at an industry average level. It is
key for an organization to know its high impact
processes, align the process management capabilities
with those and define a BPM agenda or roadmap
consistent with these findings (Kirchmer and Franz,
2014b). The systematic support of this development
of a value-driven process strategy is crucial for a
successful BPM-Discipline and has to be adjusted
with every major change of strategy or market. We
have not identified any existing focused digital tools
supporting this part of the PoPM, hence this should
be part of a new more holistic digitalization approach.
While the management of improvement projects
is normally well captured through project
management systems, the value-realization after the
project and the related process and data governance
are not sufficiently covered. This is another area
where an enhancement of digital support can lead to
significant improvements of the PoPM.
In practice, the whole “people dimension” of
process management is also not given adequate
digital support in many BPM approaches. In most
process transformation and improvement approaches
the challenges are less on the technology side but
rather on the people side (Spanyi, 2003). Since only
some processes can be fully automated, people and
their skills are often the bottleneck. While there is
good progress made with digitally enabled change
management approaches (Ewenstein et al., 2015),
such as the use of eLearning or various
communication tools, the active management of
process communities and their integration with
change management is still not sufficiently covered.
Hence, this is another area for an improved
digitalization of the PoPM. Figure 7 shows all the
focus areas for an advanced digitalization of the
PoPM.
Figure 7: Functional focus of PoPM Digitalization.
In addition, there is a lack of integration between
the different existing digital tools. Hence, a next
generation digitalization of the PoPM needs to
address this and deliver the right degree of integration
enabling best performance of the overall PoPM.
3.2 Don’t Re-invent the Wheel
This clearly defined functional focus of the PoPM
digitalization initiative also prepares for the second
objective. Existing digital process management tools
and applications need to be re-used and integrated in
the new digital BPM environment. This saves time
and cost which is key in our fast-changing business
environment. In addition, it makes the adoption easier
for organization who often have already made
significant investments into existing process
management tools.
An important aspect is to re-use data available in
other applications. The knowledge about processes
stored in a repository as part of an enterprise
architecture, for example, is excellent master-data for
other digital tools. This data can be used to identify
high impact processes, support the value-realization
of a process improvement or guide the management
of process communities.
The new PoPM digitalization needs to be
complementary to existing tools and provide an
integration environment to optimise the overall
support of the PoPM – as efficiently as possible.
3.3 Make Process Management Fun
The acceptance of a PoPM with a significant higher
degree of digitalization is again dependent on the
people who have to use it. To motivate them and
make the PoPM part of a positive process-oriented
culture it is important that the new digital components
are fun for the users to deal with.
This requires a simple and nice to work with user
interface. It needs to make people feel familiar and
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comfortable with it by copying behaviours from
existing widely used applications. On the other hand
it must also bring innovations to the table that make
it interesting to migrate, for example from the use of
a spreadsheet, to the new PoPM application.
The integration of gamification, self-learning and
data analytics components is another way to get
people excited and make dealing with the new set of
tools fun while improving PoPM performance. This
is especially important when it comes to community
management and application functionality that is used
on a daily basis.
To make the use of the tool fun, its administration
has to be efficient. Hence, a cloud-based approach is
required. The cloud has become a main driver of
digitalization. The PoPM digital initiative is not an
exception to this (Abolhassan, 2016).
4 APPROACH OF THE
DIGITALIZATION OF THE
PROCESS OF PROCESS
MANAGEMENT
In line with these objectives, work has progressed on
the design and implementation of an integrated BPM-
D Application that aims to properly support and
digitalize the Process of Process Management
(PoPM). The approach, initial implementation and
early pilots demonstrate considerable progress in
regard to the defined objectives.
4.1 Design of the BPM-D Application
To effectively digitalize the PoPM and achieve the
defined objectives appropriate software must be
developed. We call it the BPM-D Application. In
order to meet the objectives, the following functional
requirements have been identified, using a design
science approach (Nixon, 2013):
1. Digitally manage Strategy execution
• Centrally document business strategy and the
process impacted by it
• Translate strategy into executable value driven
work packages using required process and BPM
capabilities
• Define, manage, track and improve maturity level
of BPM capability in an organization
• Track and continuously manage business process
impact on projects
• Define, Track and manage role based controls,
metrics and measurable outcomes of past project
activities
2. Apply Analytics to a process and its execution
• Analyse maturity of PoPM and operational
processes, visualize results in dashboards
• View, analyse, and manage selected process
knowledge
• Leverage process knowledge to support various
use case scenarios, for example the enforcement
of process standards
3. Enable Gamification based collaboration of the
BPM community
• Setup and manage the required process and data
governance
• Enable and encourage collaboration across the
BPM Community
• Support focused training of BPM community
4. Integration with existing technologies
• Track and manage a portfolio of business process-
related technologies
• Identify integration-scenarios and solutions
4.2 Implementation of the BPM-D
Application
The BPM-D Application is an intuitive tool that is
being developed in an agile approach to meet these
requirements (Sims and Johnson, 2014). It is a web-
based platform delivering the defined objectives.
Hence, it becomes an enabler of ongoing strategy
execution and digitalization for the next generation
enterprise.
The BPM-D Application provides the
functionality in the key priority areas identified above
in figure 7 and then integrates where appropriate with
a series of other tools that currently digitalize other
functional areas of the PoPM. The integration of the
application to other modules is enabled by the
prevalence of XML as a standard for data
communication. Hence, the BPM-D Application
supports from the first prototype on focused
integration with existing tool, enhancing the value
that those tools deliver and avoiding re-inventing
existing digital solutions.
The application consists of a set of modules as
shown in Figure 8. In a following commercialization
phase of this prototype those modules could be
licensed separately.
Digitalization of the Process of Process Management - The BPM-D® Application
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Figure 8: BPM-D Application Module.
The key develop tenets of the BPM-D Application
are:
• Cloud based for easy access
• Mobility enabled (access through mobile phones,
tablets)
• Intuitive user interface
• Open Source Architecture to facilitate ongoing
development and improvement
• Service Based Architecture enabling integration
and layered modular architecture that supports
plug and play approaches for agile
implementation
The Application modules are based on the BPM-D
framework which segments into six main sections;
• BPM-S Strategy
• BPM-D Assets
• BPM-D Project Execution
• BPM-D People Enablement
• BPM-D Management
• BPM-D Technology Enablement
The overall architecture of the BPM-D application is
shown in figure 9 in Figure 9. This is a high level
view, stressing the importance of the integration into
an existing PoPM-realted software environment.
Figure 9: BPM-D Application Architecture.
The basis of the BPM-D Application is the
effective management of process knowledge. The
definition of business processes in form of process
models are typically well supported through
modelling and repository tools. The BPM-D
Application focuses on contextual and management
information about the processes as shown in the
Process Master module in Figure 10. This has been
developed using the comprehensive BPM-D Data
Framework (Kirchmer, 2015), describing the data
view of the PoPM.
Figure 10: BPM-D Process Master Module.
On basis of this master data, the BPM-D
Application systematically fills the PoPM gaps
identified earlier. The starting point is the connection
of business strategy to the process hierarchy using the
Value-Driver Tree and Process Impact Assessment
(Kirchmer, 2015). The easy to us value-tree creation
page is shown in Figure 11.
Figure 11: BPM-D Application Value Tree creation.
This intuitive interface helps to gather
information relevant for process impact and maturity
very collaboratively and then identifies the high
impact and low maturity processes. Based on the
ever-changing strategy, these priorities will also
change. The BPM-D Application offers the process
professional the ability to react to these changes in an
agile manner, being well informed about possible
impacts of this strategy change.
Another key component of the BPM-D
Application is the Process Governance module.
Identifying process performance gaps is only useful if
it is clear who has responsibility and accountability
for taking any process improvement action. Process
governance is multi-dimensional as it needs to reflect
three key organisational realities:
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• Functional responsibility: Which processes can I
touch?
• Organisational responsibility: What actions am I
entitled to execute?
• Process management responsibility: Whom do I
collaborate with from the BPM organization?
These realities need to be applied to all modules of
the BPM-D Application to enable an effective support
of the PoPM. This is a pre-condition for a holistic
integrated digitalization approach.
Translating the identified process performance
gaps (high impact, low maturity processes) into
improvement actions is achieved through the
definition of work packages in the Process Agenda
module. Here the responsible process owner can
review the work packages that are already in progress
and check how well they address the performance
gaps. As shown in Figure 12, a graphical interface
assists in identifying how many current work
packages are in progress in support of each process.
It is clearly shown where there are misalignments in
the focus of interventions. Where there are a number
of work packages in progress impacting lower
priority processes, these can be assessed and possibly
stopped. High impact low maturity processes with no
active work packages identify the need for initiating
new action and where there are a number of
overlapping work packages, these can be assessed for
consolidation opportunities.
Figure 12: BPM-D Application work package analysis.
In early discussion with a number of organisations
that are evaluating the use of the BPM-D Application
they consistently mention that this approach has
numerous benefits in better focusing and aligning the
portfolio of improvement initiatives in an
organisation. It also provides the capability to much
better identify and manage the value realisation of
initiatives. Each work package is assessed in terms of
its impact on delivering process improvements. Then
through the process impact assessment KPIs can be
identified. The impact that work packages therefore
have on the KPIs can be quantified into a much more
representative business case. This also provides the
basis for an effective value realisation approach.
5 EXPERIENCES WITH THE
FIRST PILOT
The Beta version of the BPM-D Application is being
developed with trial customers and some features are
already live and used by the same clients.
5.1 Pilot Client Overview
One of the early adopters of the BPM-D Application
is a large shipping company headquartered in Europe
with offices globally. They manage over 100 vessels
and live under a very robust regulatory and control
environment. Their finance organisation is structured
in a hybrid way with a combination of a corporate
oversight, individuals in each business unit to support
their management and a centralised global business
services team executing many of the transactional and
reporting tasks.
Alignment of processes and the necessary
controls across these finance entities is important to
ensure that actions are not overlooked and that there
is the proper segregation of responsibilities. These
controls were managed in a very manual way and
were thus not as robust as was required. Their
business processes were mapped in a diagramming
tool which was little more than a pictorial
representation of the workflow. The controls were
highlighted on the workflow and they used a
combination of a worksheet and email to manage the
compliance and audit of these controls.
Changes to the processes and the controls were
also difficult to implement as they were kept on a
local server and not integrated. The controls team
attempted to keep these up to date and then needed to
distribute changes through email notifications.
The organisation required a much more integrated
and accessible solution to achieve the controls
objectives effectively.
5.2 Leveraging the BPM-D Application
The organisation therefore embarked on a programme
of implementing a cloud-based full functional process
modelling and repository tool. All of their financial
processes were duly converted into this tool and
verified through a collaborative on-line process. It
proved to be a great opportunity for them to bring
their process models up to date and to ensure that all
Digitalization of the Process of Process Management - The BPM-D® Application
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of the globally-dispersed finance team had access to
the same process information.
This only provided half the solution and they
recognised the need for controls and compliance
management that was more tightly coupled with these
processes. An enlightened process professional
helped them recognise that this was the first step
towards more effectively digitalizing their process of
process management, with controls simply being one
of the many management requirements.
They therefore agreed to be one of the pilot
adopters of the BPM-D Application. The financial
process hierarchy was loaded into the application
with integrated references back into the process
repository to the detailed process information. The
process models were developed in BPMN 2.0 (Fisher,
2012) notation and included references to the required
controls. This is shown in Figure 13.
Figure 13: Process Model in BPMN 2.0 with Controls
marked in Red.
These controls are accessed through the BPM-D
Application and managed against the control
objectives hierarchy. All of the context information
related to the controls and their management
responsibility was then managed using the BPM-D
Application governance module. The controls could
thus be seamlessly managed by the controls
administrator as shown in Figure 14. The control
related information is then instantly available through
the cloud-based environment to the finance users
globally.
Figure 14: BPM-D Application Process Controls
Management in the Process Governance Module.
Finance users then are assigned control related
tasks that need to be performed periodically. These
tasks are simply added into the BPM-D Application
task management module alongside all other process
management tasks. The application filters the tasks
based on their governance profile and then makes it
easy for them to display their tasks and capture their
actions against these tasks. This is shown in Figure
15.
Figure 15: BPM-D Application Task Management.
A central control manager then manages their area
of responsibility and checks on the progress of the
periodic tasks. The BPM-D application has a
graphical representation of the controls status and the
ability to easily identify and act on delayed or
outstanding actions, as shown in Figure 16.
Figure 16: BPM-D Application Task Status Monitoring.
While the examples shown here for this pilot
project are specific to controls management, the
BPM-D application simply recognises control
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compliance to standards as one of the numerous
process management tasks and these same modules
cater for the effective process management activity
across the organisation for a range of other PoPM
usage scenarios.
5.3 Learnings and Further
Development of the BPM-D
Application
The integrated and intuitive nature of the BPM-D
Application proved to be very popular with the pilot
organisation’s finance users. The compliance
activities now require less time to execute and are
thus more diligently performed. The fact that the user
community works on-line ensures that they are
executing the latest version of the controls and there
is an excitement to apply the same approach in other
parts of the group.
A very exciting by-product of the implementation
was that the related process models now more
accurately reflect the business operations and there is
an incentive to ensure that they are properly
understood and kept current. The ownership for these
models has moved from being with one lonely
process owner to being much more effectively
managed in a collaborative way by the broader
stakeholder community.
This has made the finance team much more aware
of the benefits of value-driven process management.
They are looking to extend their capability and
simultaneously extending their adoption of the BPM-
D Application functionality.
In the next steps of the agile development of the
BPM-D Application the following modules will be
added:
• Target Value – strategy-driven process impact
assessment
• BPM Capability Assessment – capability
assessments report maintenance
• Process Data – Managing and maintaining further
process context
• Governance – the setup of user roles,
responsibilities and content access rights
• Process Agenda – the ability to create business
case reports as a result of assessments
These developments will be combined with the
launch of the implementation of new usage scenarios
for the process control related modules and the
integrated support of people change management and
process-oriented community management. In that
way more and more of the discovered PoPM gaps will
be closed while already creating benefits through
existing BPM-D Application components.
6 CONCLUSION
The first step of the digitalization of the PoPM has
proven the initial hypothesis that this will
significantly increase the performance of the process
management discipline. The continued development
of the BPM-D Application will lead to a more
efficient and far more effective approach to
establishing a value-driven BPM-Discipline in an
organization.
The permanent change of our business
environment also impacts the PoPM. Hence, this
process also changes continuously and with it the
requirements for the BPM-D Application. Therefore,
an agile ongoing development approach is required.
Ongoing research about the change of the PoPM
in our digital world needs to deliver the requirements
for this ongoing development. This makes the BPM-
Discipline the execution engine for strategy execution
and business digitalization, delivering fast results at
minimal risk.
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