Business Process Management Tampereen Teknillinen Yliopisto

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1 Business Process Management Tampereen Teknillinen Yliopisto Kimmo Kaskikallio IT Architect IBM Software Group

2 IBM SOA Kimmo Kaskikallio IT Architect IBM Software Group

3 Service Oriented Architecture Different Things to Different People Roles Capabilities that a business wants to expose as a set of services to clients and partner organizations Business An architectural style that requires a service provider, requestor and a service description. It addresses characteristics such as loose coupling, reuse and simple and composite implementations Architecture A programming model complete with standards, tools, methods and technologies such as Web services Implementation A set of agreements among service requestors and service providers that specify the quality of service and identify key business and IT metrics Operations

4 CEO s cite Innovation as top priority for business Business Model Innovation delivers the greatest returns Results of 765 CEO interviews worldwide: Out Performers place 2X emphasis on Business Model innovation than under performers CEOs are under intense pressure to innovate Corporate culture is critical to sustained innovation Business model innovation is the new strategic differentiator 65% will make fundamental changes to their business over next 2 years Over half have found it difficult to manage change in the past Source: IBM 2006 Global CEO Study

5 What is flexibility It s All About the Business Division

6 What is flexibility It s All About the Business Customer Division Change: Customer Order Entry

7 What is flexibility It s All About the Business Customer Division Shared Service Change: Shared Service Marketing, Billing, Receivables

8 What is flexibility It s All About the Business Customer Division Shared Service Supplier Change: Supplier Handles Inventory (VMI)

9 What is flexibility It s All About the Business Customer Division Shared Service Supplier Outsourced Change: Shipping by FedEx, DHL, or UPS

10 What is flexibility It s All About the Business Customer Division Shared Service Supplier Outsourced Change: Collections Outsourced

11 What is flexibility It s All About the Business Customer Division Shared Service Supplier Outsourced Change: Process Optimization

12 What s stopping you? Lack of business process standards Architectural policy limited Point application buys to support redundant LOB needs Infrastructure built with no roadmap

13 Interaction among services for higher business value People (Service consumers) Web Collaboration Device Business Process External Services (Application & Information) Operational Systems (Application & Information Assets) Application Application Content Data Registry Connectivity (Enterprise Service Bus) Infrastructure and Management for SOA SOA Governance and Lifecycle Management

14 SOA Reference Architecture Supporting the SOA Lifecycle Business Services Supports enterprise business process and goals through businesses functional service Interaction Services Process Services Information Services Development Services Enables collaboration between people, processes & information Orchestrate and automate business processes Manages diverse data and content in a unified manner Management Services Integrated environment for design and creation of solution assets Enterprise Service Bus Manage and secure services, applications & resources Partner Services Business App Services Access Services Connect with trading partners Build on a robust, scaleable, and secure services environment Facilitate interactions with existing information and application assets Apps & Info Assets Infrastructure Services Optimizes throughput, availability and utilization

15 SOA Operating Environment Mapping to IBM Offerings WebSphere Portal WebSphere Process Server WebSphere Information Server Business Innovation & Optimization Services Facilitates better decision-making with real-time business information WebSphere ESB WebSphere Message Broker Development Services Interaction Services Process Services Information Services Enables collaboration between people, processes & information Orchestrate and automate business processes Manages diverse data and content in a unified manner IT Service Management DataPower WebSphere Service Registry & Repository Integrated environment for design and creation of solution assets Partner Services Business App Services Access Services Connect with trading partners Facilitates communication ESB between services Build on a robust, scaleable, and secure services environment Facilitates interactions with existing information and application assets Apps & Info Assets Manage and secure services, applications & resources Infrastructure Services Optimizes throughput, availability and performance WebSphere Partner Gateway WebSphere Application Server WebSphere Adapters WebSphere XD

16 BPM Enabled by SOA Kimmo Kaskikallio IT Architect IBM Software Group

17 Evolution of BPM The ability to change is far more prized than the ability to create in the first place. Business Process Management The Third Wave Howard Smith & Peter Fingar 1 st Wave: Taylorism 2 nd Wave: Business Process Reengineering 3 rd Wave: Business Process Management (BPM) Frederick Taylor s Scientific Management theory Division of labour Managerial control of the workplace Cost accounting based on systematic time-and-motion study Processes manually reengineered (typically a one time event) Processes implemented via ERP software Business & process logic hard-coded Led to EAI (application to application focused) Facilitating the ability to change Extract business processes from the applications which run them Source: David Knight

18 Business Process Management is a discipline BPM Is: Business Process Management is a discipline combining BPM Solves: 1 Process aren t documented 2 Bottlenecks prevent efficiency 3 Limited visibility into performance software capabilities and business expertise to accelerate process improvement and facilitate business innovation BPM Includes: 4 Complex integration 5 Process change 6 across multiple processes is cumbersome KPIs not defined Integration Modeling Monitoring Models and Maps Process Knowledge Software that Enables BPM Workflow Forms SOA Expertise that Delivers BPM Methodology Policies Rules

19 Services are the building blocks for business processes Business Process Management enabled by SOA SOA improves how you design, manage, and optimize your business processes by enabling: People (Service consumers) SOA at the core of BPM: Web Collaboration Device Services are building blocks Reuse of existing assets Flexibility to change Business Process Services (Application & Information) Operational Systems (Application & Information Assets) Application Connectivity (Enterprise Service Bus) Application Infrastructure and Management for SOA SOA Governance and Lifecycle Management Content Data Registry External

20 IBM delivers the full set of integrated BPM capabilities in a SOA Designed to Start Anywhere in the Cycle, Use Only What You Need Collaborative Development Business Modeling and Simulation Workflow and Choreography Business Monitoring, Dashboards and Analytics Content Management

21 An integrated role in SOA environments WebSphere Integration Developer Easy-to-use integration to simplify and speed the assembly of composite applications WebSphere Process Server Flexible deployment of business processes, making plug-and-play of components a reality WebSphere Business Modeler Simple to use process modeling for the business analyst to help maximize process and business resource re-use WebSphere Business Monitor WebSphere ESB Connectivity infrastructure for integrating applications and services to power your SOA Real-time visibility into process performance enabling process intervention and continuous improvement

22 How to Build a Process Integration solution using BDD Rational RequisitePro Rational Portfolio Manager CIO Project Manager Understand Risk, Project Costs, and ROI Identify and Manage Projects and Resources Rational Data Architect (4Q05) Data Architect Model Relational Database Schemas RDB Mapping WebSphere Business Modeler Create, Simulate & Analyze As-Is Business Model Business Analyst Create & Manage System Requirements Trace Requirements & Create System Use Case Realizations Architect Create, Simulate, Analyze and Optimize To-Be Business Model UML Rational Software Architect Create Observation Model with KPIs & export to Monitor Create Financial Reports & ROI Estimates Test Model & Implement Services, & expose as Web Services Java Developer BPEL WSDL Rational Functional & Performance Tester Tester Develop Portlets (App UI and Monitor) Portal Developer IBM Rational Team Unifying Platform Choreograph services using BPEL, WSDL, etc. WebSphere Integration Developer Configure Human Task Manager (including Ad-Hoc) & Client WSDL EAR DBA Run-time Statistics Business Measures Model Deploy/Run Monitor Integration Developer Assemble Solution (BPEL, Human Task Manager, Business Rules, etc) Runtime WebSphere Process Server WebSphere Portal WebSphere Business Monitor WSDL EAR Business Operations Analyst

23 Model Capture, Simulate, Analyze & Hand-off to Implementation Graphically Model Processes Define: Goal, Scope, Perspective, Audience, Level-of-detail, Content Introduce naming conventions for all process objects (costs, time, resources, decision points, actions, etc) Agree on a maximum number of process levels (3-4) and number of activities per process diagram (15-20) Simulate and Analyze Simulate execution with statistical analysis tools Run "what if" scenarios to predict outcomes Identify bottlenecks and workload imbalances Isolate projects that will generate the greatest returns Hand off to Implementation Export business and data models for use in IT deployment Direct export of models to IT such as WS-BPEL for execution, XSD for data definitions, WSDL for services interfacing, UML for IT architect refinement WebSphere Business Modeler

24 Assemble Orchestrate a set of services that support a business process Java Application Human Task WS-BPEL Business Process Business State Machine Imported EIS System Business Rules If Approved then Send letter offering gold If NOT Approved Send letter offering Credit counseling service WebSphere Integration Developer and Rational Application Developer

25 Deploy Implement the solution into a production environment A Process Server Integrated runtime for all SOA based process automation Runtime engine for all the components defined in Assemble (Assemblies, BPEL, State Machines, Business Rules ) Fully leverage the breadth and capability of IBM WebSphere Application Server Business Processes Human Tasks Business State Machines Business Rules Reliable, scaleable, secure Interface Maps Data Maps Relationships Mediation (ESB) Selectors Integrated ESB For Range And Reach Provides seamless access to all available services Adapters provide the service on-ramp for existing applications B2B to interoperate with your extended partner network Service Components Business Objects WebSphere Application Server (J2EE Runtime) WebSphere Process Server with embedded WebSphere ESB WebSphere Portal for Rich User Interaction Common Event Infrastructure

26 Manage Provide the ability to monitor and evaluate events and activities Assemble dashboards from different views Views include Monitor, Report, Dimensional, KPI, Scorecard, Gauge, Alert, and Organizational Combine standard and custom portlets to meet various business needs Enable business event triggers and notifications via , pager, SMS messages Intervene based on business events and trends as they emerge by redirecting workload or changing process flows based on real needs Generate preprogrammed responses Automatic corrective action based on pre-defined business triggers leveraging BPEL process and Web Service Analyze business metrics over time to identify trends Discover previously hidden patterns using dimensional analysis Use analytics and business intelligence technologies Populate a business performance warehouse WebSphere Business Monitor IBM Dashboard Solutions

27 Thank You! Kimmo Kaskikallio IT Arkkitehti IBM Software Group GSM: Oy International Business Machines Ab PL 265, Helsinki Y-tunnus

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