SOA 기반 Business Process Management (BPM) Accenture, SI&T Technology Architecture Jeong-Wook, Lee

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1 SOA 기반 Business Process Management (BPM) Accenture, SI&T Technology Architecture Jeong-Wook, Lee May 17, 2007

2 Contents Why Business Process Management BPM & SOA Introducing BPM today 2

3 What is Business Process Management (BPM)? BPM is a set of services, tools and methodologies that provide for the explicit analysis, design, execution and monitoring and administration of automated business processes, including support for human- and application-level interaction Business Process Management (BPM) 은 Process 중심의 비즈니스와 IT architecture를 구성하기 위한 Business and Information Technology 분야임 Business Process를 자산으로 관리함으로 인해, BPM을 수용한 회사는 운영에 대한 design, run, monitor, 지속적인 개선과 시장 차별화를 위한 접근을 하는 데 사용할 수 있다 Business Activity Monitoring Process Modeling Process Automation or Process Orchestration 3

4 Current IT Environment in Relation to Business Processes 대부분의 회사는 end-to-end process를 구성하고 관리하고자 하는 노력을 하고 있으나 정적인 IT System을 가지고 있으며, 전사적인 Value chain이 제품을 생성하는 단계나 조직단위로 나누어져 있음. 결과적으로 부분적인 자동화만 되어 있으며 비즈니스 프로세스 차원에서는 연계성이 미약한 상태임 Current IT State Investments in custom & packaged application development Many Business Processes covered by ERP systems EAI awareness largely focused on A2A and occasionally B2B integration. EAI is viewed as a tool to interface applications, instead of as a mechanism that supports business processes The Implications Focus on data and not on business processes Rare re-engineering of business processes IT-Business divide The Results Dubious ROI of some large IT efforts Difficulty to integrate different applications Re-Engineering of existing business process is expensive It is hard to integrate with external partners 4

5 External Factors Exerting Pressure on Companies Competitive Advantage Margins under pressure To keep margins, businesses are forced to partner with external companies. They are no longer self contained entities Time to market becomes a critical factor Competitors and increased market dynamism put significant pressure on time to market. Reduction in overall business process cycle time allows to gain operational efficiencies and maintain or increase customer satisfaction Company Greater emphasis on market segmentation The ability to quickly customize products and services is highly valued. Processes can no longer be regarded as static, hard coded once and for all. They must be easily modifiable Increased globalization This results in greater competition and therefore in shorter IT application lifetime. Traditional custom development cost effectiveness is severely challenged Shift from product to services Even in product focused industries (e.g. automobile vehicle manufacturers), higher profits are made on (e.g. post-sale) services rather than on products. The attention is changing from JIT products to JIT process Outsourcing increased in importance Several non core processes, are externalized to outsourcers. However It is still necessary to control the overall end-to-end value chain Corporate governance changes Consolidations, M&As, joint ventures and so on results in processes that need to be managed and modified to accommodate those changes 5

6 Internal Opportunities with Potential to Unleash Real Value Simulation of what-if scenarios The possibility of simulating business processes (and assess their impact on products, services, financials and internal organization) diminishes the rate of failures traditional BPR experienced Shift from products to services Customer satisfaction and retention have gained high importance therefore product and service lifecycles are becoming shorter and shorter. Being able to rapidly reacting to threats by competitors is becoming vital Company Delegation not abdication of processes Outsourcing offers great opportunities of cost reduction. However this cannot happen at the expense of process control and cannot impact ability to customize service to retain market differentiation Real time monitoring of key business services Fast reaction to issues and correction of sub optimal processes can make the company significantly less capital intensive and it enables to better quantify the ROI of investments 6

7 A Step Towards a Solution: Implement a Framework to Develop, Execute and Monitor End to End Business Processes 외부의 환경변화에 Business 및 조직이 민첩한 대응을 하기 위해서는, Business Process가 유연해야 하고 이를 위해 부분적인 프로세스 구축을 위한 IT 에서 End to End Business Process 구축을 위한 IT가 필요해짐. 이를 위한 도구가 바로 BPM (BPM은 End to End Business Process를 정의하고, 실행하고 모니터링 하기 위한 Framework임) Business Process의 변화에 민첩하게 대응 Customers (Faster implementation of new processes resulting in higher reactivity to market forces ) Process에 대한 모니터링 및 지속적인 개선이 가능 IT Systems Independent Process Layer People (Possibility to monitor and continuously improve existing business processes resulting in superior efficiency and benefits on company s margins ) Data Business Processes (Policies, Procedures & Rules) Trading Partners IT 투자의 ROI를 계산하고, 정량화할수있음 (Quantify and calculate the ROI of IT investments and therefore diminish capital intensiveness of technology investments ) IT Infrastructure Suppliers 7

8 Create Liberated Automation of Processes with BPM BPM solution들은 process 자동화 logic을 분리하여 새로운 layer에 가져다 놓음으로, embedded process logic 의 문제를 해결하고자 함 (기존의 Application에서 Process를 분리하여 새로운 Layer를 만들고자 함. 이렇게 함으로 기존 Process가 쉽게 변경되고, 관리되고 최적화할 수 있게 됨) 기존 Application의 모습 BPM을 통한 변화 모습 8

9 Effective Execution and Management of Business Processes Directly Impacts the Value Delivered by Organizations 비즈니스 프로세스와 역량은 비즈니스 Value에 공헌을함. 요즘 경제에서 IT와 비즈니스의 close alignment 는 high performance businesses의 특징중의하나임 Business Process Areas Business Capabilities Operational Levers Financial Value Levers $ Economic Value Objective Marketing Sale Design Sales Force Marketing Market Share Pricing Revenue Profitability Shareholder Value Manufacture Source Distribute Supplier Mgt Manufact g Contract Mgt Cost of services & Good sold Business Process and Capabilities contribute directly to the Economic Value of the company IT, as an enabler, impacts positively these two areas. Invested Capital 9

10 Example: The Order Process From a Traditional Point of View and Using an Idealized BPM Solution Traditionally, processes are segmented according to function and application. This results in the need of additional processing between different parts of the organization and discrete business applications, either through human interaction or custom application integration Customers and Business Partners CRM Capture Order Send Data to Send Data To ERP End Post Sales Customer End Sales ERP SCM Availability Check Transport Schedulting Delivery request Shipping Send Data to SCM Send Data to ERP End End Billing Finance Posting Send Data to CRM End Planning Finance Logistics In a BPM solution, the business process is designed and managed end-to-end, defining an uninterrupted flow independent of organization and application boundaries Customers and Business Partners CRM Start Capture Order BPM System End Post Sales Sales ERP SCM Availability Check Delivery request Transport Schedulting Shipping Billing Finance Posting Planning Finance Logistics 10

11 BPM Maturity Model - Business 비즈니스 측면에서 Ad-Hoc에서 Process Excellence로 전환하기 위해 고려할 사항: Innovation defining the business process methodology Governance identifying the business process owners Metrics ability to measure business process success factors Phase 0 Ad-Hoc Phase 1 Basic Phase 2 Emerging Phase 3 Managed Phase 4 Process Excellent Process Outcomes Create Value Target High Value Processes Processes undefined Change efforts and processes not prioritized Processes defined, minimal impact Financial business case used to justify payback Processes impact business Change efforts prioritized based on process outcome Processes are primary driver Change efforts prioritized based on value returned Process thinking is pervasive Resources deployed to processes with greatest impact Innovate, Don t Duplicate Fix what is broken Automate existing processes Try what has been tried Look across functions for innovation Innovation applied to process Look beyond industry best practices for innovation Apply Seven R s regularly Excellent Processes Need Excellent Owners Process Owners nonexistent Process Owner as project sponsors Functional owners still primary leaders Organization operates in a hybrid ownership model Process owner is senior leader Process Owner as the voice of the customer You Get What You Measure Financial measures only Little cause/effect analysis Measures are function and taskoriented Functional and process measures co-exist Measures encourage process optimization Alignment between business, process and compensation outcomes 11

12 BPM Maturity Model Technology 기술 측면에서 Ad-Hoc에서 Process Excellence로 전환하기 위해 고려할 사항: Accessibility Ease of identifying the alignment between business processes and applications, Metrics Ease of understanding / reporting business process measurements, Adaptability Ease of evolving the IT system to meet amendments to the business processes Phase 0 Ad-Hoc Phase 1 Basic Phase 2 Emerging Phase 3 Managed Phase 4 Process Excellent Processes are Accessible Processes are Meaningful Processes undefined Meaning varies by person Processes are documented Common understanding of activities Processes available to functional areas Activities link to discrete functions in IT Processes available throughout organization Activities link to autonomous business services Processes are a cornerstone to understanding and learning Processes assembled via existing services Processes are Measurable Basic success/ unsuccess reports Up/down metrics Process-level metrics reported on regular basis Metrics tied in realtime to SLAs Metrics monitored in real-time, reported to business Changes can be applied in real time to affect process performance Applications are Accessible Accessibility through one-off projects No standards in place Basic standards exist (e.g. EDI) Coarse integration Message-based exchange XML pervasive WS* accepted Business services aligned to common business objects Registry in place New applications assembled from existing services IT is Adaptable IT reacts based on project priorities IT leverages existing capabilities across functions where possible SLAs aligned to business processes IT operates based on business service SLAs, changing hardware/software as needed SLAs are related to strategic goals through business processes 12

13 Contents Why Business Process Management BPM and SOA Introducing BPM today 13

14 Technology to support Process Automation is converging. Vendor는 4가지 기존 영역으로 부터 SOA와 BPM 영역으로 Convergence하고 있음: Application Servers, EAI Tools, Software Vendors, and Traditional Pure Plays. Application Servers BEA Aqualogic App IBM WebSphere Servers Microsoft Biztalk BPM SOA/BPM EAI EAI Tools Java CAPS TIBCO Vitria Webmethods Portal Technologies Convergence Software Vendors Oracle Fusion SAP NetWeaver Software Vendors Traditional Pure Plays Pure Plays Appian Lombardi Pegasystems Savvion 14

15 BPM builds on, and delivers value from a Service Oriented Architecture. Service Oriented Architecture (SOA) is an approach for designing and building flexible IT solutions that enable business process components to be assembled and orchestrated more efficiently to deliver distinctive business services and capabilities for higher performance. Business Process Management is one of the approaches that enables a company to deliver the value of SOA. 15

16 The combination of SOA and BPM are enabling a next generation of applications. Manual Processes Single-function applications Integrated applications Composite Applications CIM AR AP GL CRM SCM ERP CRM SCM ERP Origination Credit Risk & Underwriting Tier 1 Servicing < s to early 90 s Early 90 s to present Present to Custom Packaged Custom Packaged 16

17 Organizations should allow for explicit Process Flows, Rules and Services 프로세스, 규칙, 서비스를 분리함으로 얻을 수 있는 효과는, 데이터 베이스로 데이터를 분리해내는 것 만큼이나 큰 효과가 있음. 이렇게 함으로 긴급한 비즈니스의 변화에 따른 시스템 변경을 최소화함으로 매우 유연하게 대처할 수 있음 17

18 Service Oriented Architecture (SOA) as the Foundation for Achieving Business Process and Integration Excellence BPM은 비즈니스 전략을 성공적으로 실행하기 위한 핵심에 있음. SOA를 기반으로 할 때 비즈니스 변화에 민첩하게 대응하고, 현재의 IT자산을 표준화를 통해 활용하는 것이 가능해 잠 Execute Business Strategy Business Strategy Bring new products and services to market Improve operational efficiency Increase Business Value Business Activity Monitoring End-to-End process performance monitoring Real-time insight and control of business Strategy Consultants Business Analysts Business Agility Business Process Management Quick delivery of new services Quick automation of business processes Process Designers Leverage existing IT Service Oriented Architecture Standardization of Services Reducing code-based integrations Systems Integration Technology Interoperability; Architecture and Infrastructure Services Standardization Systems Architects Software Engineers Sales Finance Linux Dir Employee People soft MQ Product SAP J2EE Unix OS/360 Siebel.NET Customer DB2 Outlook 18

19 Business Process Management System (BPMS) Components Business Process Management System (BPMS)는 BPM이 가능하도록 통합된 구성요소를 가짐. : 비즈니스 프로세스 analysis, modeling, execution, monitoring and administration 의 역량 제공 Business Users Technical Users Process Analysis and Modeling Workbench Business Process Business Modeler Process Modeler Business Metrics Business Modeler Metrics Modeler Dashboard Designer Dashboard Designer Technical Process Technical Modeler Process Modeler Technical Metrics Technical Mapper Metrics Mapper Process Users Runtime Environment Process Execution Engine Flow Control Flow Control Rules Engine Rules Engine Repository Repository Scheduler Scheduler Administrators Business Users Activity Monitoring and Administration Facility Process Administration Process Administration BAM Dashboard Dashboard Analytics Engine Analytics Engine Simulations Simulations Engine Engine Distributed Distributed BPM Coordinator BPM Coordinator Interface Manager Interface Manager Event Management Event Management Integrated Development Environment Integrated Development Environment Technology Infrastructure EAI Services, Enterprise Service Bus or other Transport Layer capabilities EAI Services, Enterprise Service Bus or other Transport Layer capabilities Adapted from Business Integration Journal: 2004 BPMS Reference Architecture 19

20 Business Process Lifecycle in a BPMS Activity Monitoring 역량을 통한 Feedback channel은 ongoing 기반 하에 현재 Process 최적화를 가능케 함 Optimize Business Strategy / Vision Analysis Model Execute Deploy Manage Monitor Simulate 20

21 BPM Related Web Services Standards and Specifications Related to Accenture s Web Services Stack Business Performance Management Business Process Orchestration Messaging and Routing Service Description Data Exchange Protocols Discovery and Publication Data Representation Network and Transport Protocols Transactions Presentation Quality of Service Security Business Process Orchestration WS-BPEL (XLANG, WSFL), BPML, BPMN, BPQL, WS-CDL Business Process Design Analysis Modelling Process Execution Engine Orchestration Engine Process Automation Managing Exception Handling Monitoring State Mgt. Routing Logging Workflow Mgt. Business Process Design BPMN Business Process Modeling Notification UML 2.0 Process Execution Engine BPEL Business Process Execution Language WS-CDL Web Services Choreography Description Language Wf-XML Work Flow XML BPQL Business Process Query Language Transactions Transaction Services Registration Services Activation Services Coordination Services Transaction Services WS-CAF Web Services Composite Application Framework WS-T Web Service Transaction (Registration and Activation only) WS-C - Web Services Coordination (Coordination only) 21

22 Contents Why Business Process Management BPM and SOA Introducing BPM today 22

23 Understanding the Drivers of Change Business Process Management is 기술적인 것만이 아님. Process, organization, technology는 비즈니스 변화에 대해 분리되지 않은 상태로 통합되어야 함. Technology CHANGE Process With the industry efforts to bring technology and processes under the same umbrella using standard technologies, the organization will be the only management issue to drive change. Organization Business Process Management places technology and business processes firmly in control of the organization. 23

24 Changing the Way of the Organization BPM 비즈니스 영역에서 IT 기능이 같이 작업을 할 수 있는 조직이 필요함. 이러한 전환은 새롭고 조정된 비즈니스 프로세스를 빠르고 유연하게 전달할 수 있음 Introducing BPM tools shifts the focus of development approaches from application-centric to process and services-centered. Processes are the Core. Business processes can be formalized, shared and executed in a standard way and the Enterprise Architecture will evolve to provide services that build, modify, deploy and measure processes. Business Process Management is NOT a big-bang conversion, it fosters incremental change and leverages past investments in technology. The seed must be planted, initial technology infrastructure put in place and pilot projects undertaken to establish a BPM competency. 24

25 Main Drivers to Introduce BPM SOA에 의해 지원되는 BPM으로 이동은 다른 비즈니스 요구와 다른 구현 전략을 따라 가지만 프로세스에 focus하는 것은 동일함 Discover and Design of a process before moving on to manage it. Top-down strategy Design and model end-to-end process Simulate and optimize model Design and build interactions with process participants (humans, applications and external businesses) Build services to support process Interactions Operate and monitor process Integrate systems in order to implement, execute and refine a process. Bottom-up strategy Refine end-to-end process by orchestrating sub-processes Model and analyse end-to-end process Execute and refine sub-processes Design and build sub-processes to orchestrate built services Expose application s business functions by building services 25

26 Approach to Introduce BPM Identify Assess Tactical Pilots Plan Assimilation Activity Clarify project opportunities by identifying key processes to re-design or optimize Prioritize Processes according to potential impact on ROI Introduce BPM and describe Business Impact (inform and educate organization) Outcomes Agreement on target processes to address and implementation path to follow Management aware of benefits, costs and risks of BPM technology Identify critical BPM capabilities to build (modeling, analysis, integration) Assess readiness of Business and IT Architecture to integrate BPM Business case for implementing BPM with chosen processes Impact analysis on current organization, ways of working, and IT architecture Implementation of pilot projects to introduce methodologies and technologies Develop skills and techniques that allows repeatable approach to BPM projects Demonstrate the value of BPM by enabling impactful process change and optimization Validate implementation path and draw lessons from successes and challenges experienced during pilot deployments Evaluate Business Benefits and ROI of BPM capabilities to the overall organization Start shaping Process-driven Organization and Tools High-Level planning of Process portfolio creation Organization Assimilation Roadmap and key steps to extend BPM to the overall organization 26

27 Contacts 로버트김이사 Accenture Korea SI&T TA Lead 3 Tel : Mobile : Accenture Korea SI&T TA 이정욱 부장 Tel : Mobile: Accenture Korea SI&T TA 조상현 부장 Tel : Mobile:

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