Oracle Application Integration Architecture: Business Process Modeling and Analysis. An Oracle White Paper April 2009

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1 Oracle Application Integration Architecture: Business Process Modeling and Analysis An Oracle White Paper April 2009

2 Note: The following is intended to outline our general product direction. It is intended for information purposes only, and may not be incorporated into any contract. It is not a commitment to deliver any material, code, or functionality, and should not be relied upon in making purchasing decisions. The development, release, and timing of any features or functionality described for Oracle s products remains at the sole discretion of Oracle. Oracle Application Integration Architecture: Business Process Modeling and Analysis Page 2

3 Table of Contents Oracle Business Process Modeling and Analysis Overview... 4 Our Understanding of Business Process Management... 4 What is the Challenge?... 4 What is the Answer?... 4 What is a Business Process?... 5 Modeling Approach and Methodology... 6 Oracle s Approach to Business Process Modeling and Analysis (BPA) 6 Methodology and Organization... 6 Model Types... 7 Modeling Standards and Notation... 8 Level Level Level Level Level Functional and Composite Business Process Views Modeling Tool and Viewer Integration with Business Services Repository Integration Scenario Enterprise Business Object Enterprise Business Service Authoritative and Guiding Sources for Industry Process Best Practices 19 Overview of Delivered Models Communications Industry Insurance Industry Utilities Industry Financial Services Industry Retail Industry Cross-Industry Cross-Industry Composite Business Processes Industry-Specific Composite Business Processes Inventory of Delivered Models How Can Oracle Help? Oracle Business Process Analysis Suite Delivered Business Process Models Conclusion Oracle Application Integration Architecture: Business Process Modeling and Analysis Page 3

4 Oracle Application Integration Architecture: Business Process Modeling and Analysis Process management is not another form of automation, a new killer-app or a fashionable new management theory. Process management discovers what you do and then manages the lifecycle of improvement and optimization, in a way that translates directly to operation. Whether you wish to adopt industry best practices for efficiency or pursue competitive differentiation, you will need process management. -Howard Smith, Peter Fingar ORACLE BUSINESS PROCESS MODELING AND ANALYSIS OVERVIEW Our Understanding of Business Process Management Business Process Management (BPM) includes a set of activities that organizations perform to either optimize their business processes or adapt them to new organizational needs. Important elements include business process modeling and analysis (BPA), orchestration (BPEL), and business activity monitoring (BAM). This whitepaper focuses on the BPA element, outlines Oracle's approach and methodology, and describes the business process models delivered with Oracle Application Integration Architecture (AIA) solutions. What is the Challenge? Coordinating business processes is not simple or linear as might be portrayed in the world of traditional task management. Business is constantly changing, messy, unordered and chaotic; work activities and tasks have to be processed in parallel. Coordination requires the spawning and asynchronous execution of nested tasks and parallel activities. And it is not just tasks that occur in parallel, but decision-making, distributed computation, and the movement of information within the company and across the value chain What is the Answer? The best way to understand how your business is running - is to understand your processes. Oracle Application Integration Architecture: Business Process Modeling and Analysis Page 4

5 The first step in doing that is to model your business processes. A business process is a structured, measured set of activities designed to produce a specific output for a particular customer or market. It implies a strong emphasis on how work is done within an organization, in contrast to a product focus s emphasis on what. A process is thus a specific ordering of work activities across time and space, with a beginning and an end, and clearly defined inputs and outputs: a structure for action.... Taking a process approach implies adopting the customer s point of view. Processes are the structure by which an organization does what is necessary to produce value for its customers. -Thomas H. Davenport 1993 Oracle has created and delivered business process models for those processes supported by Oracle AIA products. These business process models will enable you to see and understand how Oracle AIA provides application integration solutions for your business processes. What is a Business Process? A business process is a set of coordinated tasks and activities, involving both human and system interactions, that will lead to accomplishing a set of specific organizational goals. Characteristics of business processes include the following: Large, complex, and long running Widely distributed and customized Dynamic Automated Both business and technical in nature Cross boundaries within and between businesses Dependent on and supportive of human intelligence and judgment Difficult to recognize Oracle Application Integration Architecture: Business Process Modeling and Analysis Page 5

6 MODELING APPROACH AND METHODOLOGY Oracle s Approach to Business Process Modeling and Analysis (BPA) We combine the business view of the business analyst with a glimpse of the technical view of the technical analyst. We use a standard modeling method and add technical artifacts to the models at the lowest level of decomposition. Methodology and Organization We use accepted standard modeling methods and notation and add Oracle-specific information on the most detailed level of the models. Following are characteristics of our models: Horizontal, role-based, swimlane workflow modeling method based on the Rummler-Brache diagramming technique. Lowest level is Business Process Modeling Notation (BPMN) compliant Includes both human and system lanes We have organized our model content using four hierarchical levels of decomposition. Top three levels are conceptual Conceptualization of service-oriented architecture (SOA) services can be observed on the third level Fourth level is implementation-specific Process integration points and AIA artifacts appear on the lowest level Figure 1: Model Taxonomy and Hierarchical Organization of Model Content Oracle Application Integration Architecture: Business Process Modeling and Analysis Page 6

7 We have created many sets of the lowest level models that correspond to particular implementation solutions. AIA provides solutions that quilt together pieces of application functionality between two or more Oracle product families. We have also created industry-specific variations of our models for many of the industries that Oracle supports. Figure 2: Multiple Sets of Implementation-Specific Models Model Types We create and deliver the following types of models: Reference Process Models (RPMs) Horizontal, functionally scoped business process models that depict all of the aspects of the processes supporting a particular function (Marketing, Sales, and Order Fulfillment, for example). Industry Reference Process Models Industry-specific business process models that combine industry processes with relevant horizontal processes and variations of horizontal processes. Composite Business Flows End-to-end processes that are comprised of parts of several functional business processes (Order to Cash, Procure to Pay, and Design to Release, for example). Oracle Application Integration Architecture: Business Process Modeling and Analysis Page 7

8 MODELING STANDARDS AND NOTATION Following are examples of models at each level, as well as a list of the symbols and annotation used on each level. Level 0 Figure 3: Sample Level 0 Model Logical Group Box Value-added chain Figure 4: Level 0 Model Notation Oracle Application Integration Architecture: Business Process Modeling and Analysis Page 8

9 Level 1 Figure 5: Sample Level 1 Model Figure 6: Level 1 Model Notation Level 2 Figure 7: Sample Level 2 Model Oracle Application Integration Architecture: Business Process Modeling and Analysis Page 9

10 Figure 8: Level 2 Model Notation Level 3 Figure 9: Sample 1 Level 3 Model Oracle Application Integration Architecture: Business Process Modeling and Analysis Page 10

11 Figure 10: Sample 2 Level 3 Model Figure 11: Level 3 Model Notation Oracle Application Integration Architecture: Business Process Modeling and Analysis Page 11

12 Level 4 Level 4 is not a model level. It is the tasks that appear on the models at level 3. Think of level 4 as the leaves on the lowest branch of the tree. Functional and Composite Business Process Views Our Reference Process Models depict functionally scoped business processes. Figure 12: Functional Business Process View Drill-Down, All Four Levels (Order Fulfillment) Oracle Application Integration Architecture: Business Process Modeling and Analysis Page 12

13 Our Composite Business Flows depict end-to-end processes that span portions of several functional business processes (Order to Cash, Procure to Pay, and Design to Release, for example). Figure 13: Composite Business Process View Drill-Down, Level 0 (Order to Cash) Figure 14: Composite Business Process View Drill-Down, Level 1 (Order to Cash) Oracle Application Integration Architecture: Business Process Modeling and Analysis Page 13

14 MODELING TOOL AND VIEWER Our modeling tool is our own Oracle Business Process Analysis (BPA) Suite. Following are the components in the BPA Suite. Business Process Architect Standards-based tool for process modeling. Uses various standards-based notations and templates such as Business Process Modeling Notation (BPMN), Event-Driven Process Chains (EPC), and so forth. Business Process Repository Server Server component for sharing the process repository across multiple users in a collaborative environment. Business Process Simulator Tool for simulating the process models based on a set of discrete events to perform "what if" analysis. Business Process Publisher Tool for publishing process models to a large audience outside of the core team designing the process models. Oracle Extensions for SOA Allows bi-directional integration with Oracle SOA Suite. We use the Business Process Architect and the Business Process Repository Server components to create the models. We then use the Business Process Publisher component to publish the models in HTML format. We provide the Business Process Publisher along with Oracle Application Integration Architecture (AIA) solutions for you to be able to view the published set of models. Once installed and implemented, you can allow business and technical analysts in your entire enterprise to view the models with a web browser. The published models include hyperlinks to entries in the Business Services Repository (BSR), where technical details are described for the Oracle AIA solution integration artifacts. Oracle Application Integration Architecture: Business Process Modeling and Analysis Page 14

15 Figure 15: Business Process Publisher Homepage Figure 16: Business Process Publisher Level 1 Model Oracle Application Integration Architecture: Business Process Modeling and Analysis Page 15

16 Figure 17: Business Process Publisher Level 3 Model with Model and Object Attribute Panes Exposed Oracle Application Integration Architecture: Business Process Modeling and Analysis Page 16

17 INTEGRATION WITH BUSINESS SERVICES REPOSITORY The Business Services Repository (BSR) is delivered with Oracle Application Integration Architecture (AIA) solutions. Our models include references to the AIA integration artifact metadata defined in the BSR as well as URL links to those BSR entries. Following are samples of the three types of AIA integration artifact entries in the BSR. Integration Scenario Figure 18: BSR Integration Scenario Entry Enterprise Business Object Figure 19: BSR Enterprise Business Object Entry Oracle Application Integration Architecture: Business Process Modeling and Analysis Page 17

18 Enterprise Business Service Figure 20: BSR Enterprise Business Service Entry Oracle Application Integration Architecture: Business Process Modeling and Analysis Page 18

19 AUTHORITATIVE AND GUIDING SOURCES FOR INDUSTRY PROCESS BEST PRACTICES The TeleManagement Forum enhanced Telecom Operations Map (etom ) was used as a reference to frame the conceptual levels of the Communications business process models. Future releases will incorporate references from other appropriate external governing sources, including: Supply Chain Council (SCOR) Value-Chain Group (VCG) Federal Enterprise Architecture Business Reference Model (FEA) Other external industry best practice sources Oracle Application Integration Architecture: Business Process Modeling and Analysis Page 19

20 OVERVIEW OF DELIVERED MODELS Delivered model content includes the Level 0, Level 1, Level 2 and Level 3 models for those processes supported by Oracle Application Integration Architecture (AIA) solutions. Model content is cumulative, and for each AIA release, includes models delivered with prior AIA releases as well. Currently, integration artifacts and corresponding business process models have been delivered for portions of the following business processes: Communications Industry Product Lifecycle Management Fulfillment Assurance Billing Insurance Industry Claims Utilities Industry Marketing Product Management Billing and Revenue Management Sales Order Fulfillment Customer Service Financial Services Industry Financial Control and Reporting Retail Industry Order Fulfillment Procurement Inventory Management Financial Control and Reporting Cross-Industry Enterprise Planning and Performance Management Marketing Oracle Application Integration Architecture: Business Process Modeling and Analysis Page 20

21 Sales Order Fulfillment Customer Service Field Service and Depot Repair Supply Chain Planning Product Management Production Procurement Materials Management and Logistics Transportation Management Project Management Financial Control and Reporting Cash and Treasury Management Asset Lifecycle Management Enterprise Information Management Recruiting Workforce Deployment Workforce Development Compensation Management Cross-Industry Composite Business Processes Order to Cash (Siebel Order/Siebel Opportunity to Oracle Order Management/Oracle Transportation Management) Design to Release (Agile Product Lifecycle Management to Oracle Product Information Management) Design to Release (Agile Product Lifecycle Management to SAP ERP) Lead to Order (JD Edwards EnterpriseOne to CRM On Demand) Oracle Customer Hub Integration Pack (Siebel CRM and Oracle EBS to Oracle Universal Customer Master) Oracle Product Hub Integration Pack (Siebel CRM and Oracle EBS to Oracle Product Information Management) PeopleSoft Enterprise Financials Integration Pack (EBS Financial Accounting Hub to PeopleSoft General Ledger) Oracle Application Integration Architecture: Business Process Modeling and Analysis Page 21

22 Industry-Specific Composite Business Processes Oracle Retail Merchandising Integration Pack (Oracle Retail to PeopleSoft Financials) Inventory of Delivered Models A full current inventory of our delivered models is included on our customer support website. Oracle Application Integration Architecture: Business Process Modeling and Analysis Page 22

23 HOW CAN ORACLE HELP? Oracle Business Process Analysis Suite Oracle Business Process Analysis Suite provides comprehensive modeling, analysis and simulation capabilities for enterprise-wide business process management. Oracle BPA Suite supports Enterprise Architecture, process improvement and change management initiatives, and provides for alignment of Business Process Management (BPM) and Service-Oriented Architecture (SOA) initiatives. In addition, Oracle BPA Suite is innovatively integrated with Oracle SOA Suite to provide closed-loop BPM capability, enabling business analysts and developers to closely collaborate throughout the entire BPM lifecycle using the best tools for their specific needs. Figure 12: Business Process Management (BPM) Lifecycle Delivered Business Process Models Oracle helps accelerate your system design, implementation and upgrade projects by delivering a library of pre-built business process models that you can start with. Several types of models are delivered, including: Reference Process Models (RPM) Horizontal, functionally scoped business process models that depict all of the aspects of the processes supporting a particular function (Marketing, Sales, and Order Fulfillment, for example). Industry Business Process Models Industry-specific business process models that combine industry processes with relevant horizontal processes and variations of horizontal processes. Composite Business Flows End-to-end processes that are comprised of parts of several functional business processes (Order to Cash, Procure to Pay, and Design to Release, for example). Oracle Application Integration Architecture: Business Process Modeling and Analysis Page 23

24 CONCLUSION We know you need to implement and upgrade your operational business systems quickly, economically and efficiently, and that you need to select the right combination of features and functionality to fit the needs of your business processes. To jumpstart your implementation projects, we have created and delivered business process models for those processes supported by Oracle Application Integration Architecture (AIA) products. These business process models will enable you to see and understand how Oracle AIA provides application integration solutions for your business processes and how your integrated products fit together to provide a comprehensive business process solution. Oracle has both the tools and the process intelligence to help you manage both the technology and the human requirements for your business process analysis and design. Oracle Application Integration Architecture: Business Process Modeling and Analysis Page 24

25 White Paper Oracle Application Integration Architecture: Business Process Modeling and Analysis April 2009 Author: Pat Krebs Oracle Corporation World Headquarters 500 Oracle Parkway Redw Shores, CA U.S.A. Worldwide Inquiries: Phone: Fax: oracle.com Copyright 2009, Oracle and/or its affiliates. All rights reserved. This document is provided for information purposes only and the contents hereof are subject to change without notice. This document is not warranted to be error-free, nor subject to any other warranties or conditions, whether expressed orally or implied in law, including implied warranties and conditions of merchantability or fitness for a particular purpose. We specifically disclaim any liability with respect to this document and no contractual obligations are formed either directly or indirectly by this document. This document may not be reproduced or transmitted in any form or by any means, electronic or mechanical, for any purpose, without our prior written permission. Oracle is a registered trademark of Oracle Corporation and/or its affiliates. Other names may be trademarks of their respective owners. 0408

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