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BPM Glossary

BPM Glossary of Terms

Action Logic In ProcessModel™, Action Logic is definable for any activity, arrival, or routing. Action logic allows you to enter simple but powerful logic statements to control the behavior of a model.
Activity The tasks performed on entities such as assembly, document approval or customer checkout. An activity is defined in terms of the activity time as well as any resource requirements.
Activity Analysis The relationships between the steps in the activity, measuring for the performance of the activity, rules used and opportunities for improvement.
Arrival Define where, when and in what quantities entities enter the system to begin processing.
Asynchronous Process In an asynchronous process, one activity sends a message to another, but does not wait until it gets a response.
Balanced Scorecard A method and technique for aligning measures from an organization’s strategic goals to specific process measures. It stresses measuring items associated with the growth and value of an organization to obtain a balanced overview of what is actually happening. By comparison, financial metrics tend to demonstrate what has happened. Developed by Robert Kaplan and David Norton.
Batch Processing In manual, operational and computer processes, a step where items are accumulated and then processed together. In contrast to continuous processing where items are processed as required.
BizTalk A Microsoft sponsored set of guidelines for how to publish schemas in XML and how to use XML messages to easily integrate software programs together in order to build rich new solutions between partner organizations.
BPM Suite A comprehensive approach to BPM, it provides all of the process management capabilities of BPM software, plus additional functionality which may include: knowledge management, document management, collaboration tools, business rules, etc.
BPM System According to Gartner, Inc., BPM is "a management practice that provides for governance of a business's process environment toward the goal of improving agility and operational performance." This more holistic view offers a structured approach for optimizing processes and takes into account the software tools discussed above as well as an organization's methods, policies, metrics, and management practices.
Business Activity Monitoring (BAM) This is a recent Gartner term that combines business process management with historical analytics. The goal is to send an alert to the appropriate person when a business process is in need of intervention, along with historical and analytical information required so the decision maker can make a faster and more informed decision
Business Analytics Aggregated information on business processes that enables managers to analyze process trends, view performance metrics, and respond to organizational change.
Business Intelligence (BI) Software systems and tools that seek to extract useful trends and conclusions from data.
Business Process (BP) Any set of activities performed by a business that is initiated by an event, and produces an output.
Business Process Analysis (BPA)  
Business Process Change Cycle The life cycle of a business process.
Business Process Executable Language (BPEL) An XML-based executable language for representing business processes. BPEL is an orchestration language (cf. choreography language, such as WS-CDL), and consequently focuses on the view of one business participant.
Business Process Integration (BPI) It’s what Steelnet does!
Business Process Management (BPM) Activities that measure and direct business processes, with the aim of enhancing their responsiveness and efficiency. It usually includes business process modeling and business activity monitoring.
Business Process Management Initiative (BPMI) Consortium of business process modeling tools vendors and user companies that are working to develop an XML-based business process language (BPMI), a notation for the language (BPMN) and a query language (BPQL).
Business Process Modeling Notation (BPMN) A graphic notation for representing business processes. BPMN defines a Business Process Diagram, which is based on flowcharting techniques customized for business process, and a mapping to BPEL executable semantics. The BPMN industry standard is maintained by the OMG.
Business Process Modeling Tool A software tool to create business process models. Simple tools only support mapping. Professional Business Process Modeling Tools store each model element in a database so that they can be reused and easily updated. Professional tools support simulation and optimization functions.
Business Process Redesign (BPR) Business Process Redesign focuses on making major changes in an existing process, or creating a new process. Depending on the size of the process, this can be a major undertaking, is done infrequently, and, once done, should be followed by continuous business process improvement
Business Rules

 

A statement describing a business policy or decision procedure. Some programming languages run business rules together into very complex algorithms. In business process analysis, each rule is usually stated independently, in the general format. Workflow tools and detailed process diagrams both depend on business rules to specify how decisions are made.
Continuous Process Improvement A strategy to find ways to improve process and product performance measures on an ongoing basis.
Document Management A system for storing and securing electronic documents, images, and other files within an organization. The term used to imply the management of documents after they were scanned into the computer. The term can include document imaging, workflow, text retrieval and multimedia.
E-Business Also "E-Biz." The use of Internet technologies, and the Web in particular, to conduct business operations.
Electronic Data Interchange (EDI) The established system for exchanging data between organizations. EDI requires that organizations standardize terms and software protocols. EDI is becoming less complex through internet protocols and XML.
Enterprise Resource Planning (ERP) Software for running a business. ERP is a suite of applications including financials, manufacturing, human resources and other modules, that together automate the back-office business administration functions of an enterprise. Tier one ERP vendors include SAP, Oracle, etc.
Entity The items or people being processed, e.g., products, documents, customers, etc.
E-Procurement Using the Internet and other open networks to perform the procurement function; a B2B application.
Extensible Markup Language (XML) XML is a syntax and a standardized set of rules for adding structure to any form of data using a system of markup tags.
F.A.S.T.A.R The acronym FASTAR is used to describe the steps to effective model building.  The initials stand for: Flow the process, Animate the model, Simplify and correct, Timing and capacities, Arrivals, and Resources.  Most of the information that goes into each of these steps can be determined by asking questions of the people involved.
Groupware A collection of technologies that allows the representation of complex processes and collaborative activities. It is a model for client/server computing based on five foundation technologies: multimedia document management, workflow, e-mail, conferencing and scheduling.
Input Queue A holding place for entities en route to an activity.
ISO 9000 (International Standards Organization) An international standard for how organizations should document their processes.
Key Performance Indicators (KPIs) Performance metrics and benchmarks that drive the financial and operational success of the company.
LEAN LEAN is the term used to describe the production system developed by the Toyota company. "Lean" comes from the ability to achieve more with less resources, by the continuous improvement and the elimination of waste. The culture of Lean is not restricted to manufacturing and can be applied to all enterprises, including the Health, government and the provision of services.
Lean Manufacturing An approach to designing and managing production processes that emphasizes minimal inventory and just-in-time delivery and the elimination of waste, to improve the efficiency of a manufacturing process.
Loop If one or several steps of a business process must be executed repeatedly, this is called a loop.
Order Signal In process modeling a connection between an activity or storage and an arrival or routing which signals the arrival or routing to order or release additional entities. The signal is triggered by a drop in inventory level at either the storage or the activity input queue.
Output Queue

A holding place where entities can wait if the next storage or activity’s input queue has no available capacity.

Parallel Process A process in which two or more sequences of activities happen simultaneously.

Process

 

A process is any business function or set of functions that includes the interaction of distributed people and disparate systems, which can be enhanced with management, coordination, automation, and decision-making information.
Push vs Pull “Pull” systems are designed to respond to real demand. “Push” systems create inventory in batches related to input criteria.
Renege

The phenomenon of dropping out of a waiting queue is referred to reneging or abandonment.

Resources Agents used to perform activities and move entities such as service personnel, operators or equipment.
Routings In process mapping and in process modeling a routing is a line from one activity to another that defines the direction and flow of the process.
Scenarios Experiments that are run with a model in which the values of scenario parameters are varied. Scenarios provide more statistically significant information from a model and identify the best alternative.
Service Oriented Architecture SOA A system for linking resources on demand. In an SOA, resources are made available to other participants in the network as independent services that are accessed in a standardized way. This provides for more flexible loose coupling of resources than in traditional systems architectures.
Simulation

 

A technique that uses a model to make predictions about a system or process. There are different types of simulation, some more informal and some more formal. Process simulation tools normally assign values to activities to see how the business process will respond. The simulation of complex processes can often reveal outcomes that cannot be anticipated.
Six Sigma A movement, method and set of techniques focused on improving business processes. Relies heavily on statistical techniques to measure success. There are multiple Six Sigma methods, some designed for process improvement and some for designing or redesigning business processes. Most Six Sigma books, however, emphasize incremental process improvement. Often associated with Mikel Harry and Motorola.
Standard Deviation A statistical measure of the dispersion or variance of a probability distribution.  It is the average deviance from the statistical mean of a population.  The standard deviation of a population is the square root of the mean squared deviation of a quantity from the population mean.
Structured Query Language (SQL) Standard toolset used to extract and present data from a relational database into a useful format for analysis and decision making.
Sub-Process Process analysis necessarily occurs on levels. A high-level process diagram shows major processes.
Supply Chain Management Supply Chain Management (SCM) is a set of skills and disciplines, including information systems, which route and schedule a product from manufacturer to consumer.
Swimlane A row on a business process diagram. A way of indicating what part of an organization is responsible for a given process or activity. In most cases swimlanes are assigned to departments, groups within departments, individuals, or to applications, systems of applications or databases.
Synchronous Process In a synchronous process, one activity sends a message to another and then waits for a response before proceeding.
Theory of Constraints (Goldratt Inst.) The core constraint of virtually every organization is that they are structured and managed in parts, rather than as a whole. The results of this are lower than expected overall performance, and conflicts between different parts of the organization. Once the barriers that block the parts from working together as an integrated system are removed, significant and sustainable improvement will follow.
Total Quality Management (TQM) A movement, an industrial discipline, and a set of techniques for improving the quality of processes. TQM emphasizes constant measures and statistical techniques to help improve and then maintain the output quality of processes. Developed by Edwards Deming.
Triangular Distribution

In probability theory and statistics, the triangular distribution is a continuous probability distribution with three parameters lower limit a, mode b and upper limit c, and a linear slope. The triangular distribution is most commonly used as an estimate when no or little data is available, but is rarely an accurate representation of a data set.

Trigger When set by a programmed logical condition, a trigger will automatically start either a new process instance or an executable of an already existing process instance
Two-Phase Commit A mechanism to synchronize updates on different machines or platforms so that they all fail or all succeed together. The decision to commit is centralized, but each participant has the right to veto. This is a key process in real time transaction-based environments.
Unified Modeling Language (UML) An international, standard notation for modeling software systems. The UML specification supports several different types of diagrams, including the Activity Diagram, which is used to model business processes and workflow diagrams. UML was created and is maintained by the OMG.
Universal Description, Discovery and Integration protocol (UDDI) A directory model for web services. UDDI is a specification for maintaining standardized directories of information about web services, recording their capabilities, location and requirements in a universally recognized format.
Use Case Diagram Often used by software developers to define the software requirements for a system. Use case diagrams focus on scenarios that describe how users use the application.
Value Chain A very large-scale business process that is initiated by a customer request and results in the delivery of a process or service to a customer. A value chain includes everything that contributes to the final output. A value chain is comprised of a number of business processes.
Value stream mapping Value Stream Mapping looks at the material and activity flows for a value stream. It identifies value-added and non-value-added components, touch time and wait time. It is a very effective tool for motivating and planning positive change.
Version Control Version control makes sure that you can always retrieve the number of existing versions, when objects were changed, what was changed, and so on.
Visualize, measure improve Concise tag line to demonstrate the value of modeling and analyzing process in order to achieve measurable and positive change.
Waste elimination Essential concept of LEAN to remove non-value-added effort, nicely.
Web Services Web services are software-powered resources or functional components whose capabilities can be accessed via internet. Standards-based web services use XML to work together.
Web Services Description Language (WSDL) The standard format for describing a web service. Expressed in XML, a WSDL definition describes how to access a web service and what operations it will perform.
Workflow Software used to automatically route events or work-items from one user or program to another. Workflow describes process flow, including person-to-person information flows.
Workflow Engine Software that defines a process, the rules governing process decisions, and routes information.


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