BUSINESS PROCESS MANAGEMENT SYSTEMS

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1 BUSINESS PROCESS MANAGEMENT SYSTEMS Strategy and Implementation James F. Chang A Auerbach Publications Taylor & Francis Group Boca Raton New York

2 Table of Contents Acknowledgments About the Author 1 Theories of Process Management 1 What Is Process Management? 2 Early Process Concepts 4 Modern Process Management Theories 6 Total Quality Management Movement (TQM) 7 What Is Total Quality Management (TQM)? 8 Implications of Total Quality Management (TQM) 13 Six Sigma 16 Business Process Reengineering (BPR) 18 Implications of Business Process Reengineering (BPR) 20 Comparing Business Process Reengineering (BPR), Total Quality Management (TQM), and Six Sigma 25 Notes 27 2 Business Process Management 29 Business Process Management (BPM) Concepts 30 Business Process Management (BPM) Principles 30 Processes Are Assets 30 Processes Should Be Managed and Continuously Improved 32 Information Technology (IT) Is an Essential Enabler 33 Business Process Management (BPM) Practices 34 Process-Oriented Organizational Structure 34 Appoint Process Owners 35 Top-Down Commitment, Bottom-Up Execution 36 Use Information Technology (IT) to Manage Processes 37 Collaborate with Business Partners 38 Continuous Learning and Process Improvement 38 Align Employee Rewards to Process Performance 39 Utilize BPR, TQM, and Other Process Improvement Tools 40 xiii xv vii

3 viii Business Process Management Systems The Value of Information Technology (IT) 40 Convergence of Process-Focused Management Practices 42 Process Management Lifecycle 44 Notes 45 3 Overview of Business Process Management System 49 Key Capabilities of Business Process Management System (BPMS) 50 Bridging the Business Information Technology (IT) Gap 50 Process-Centric Integration 51 Process Simulation 53 Process Management 54 Real-Time Process Improvement 55 Introduction of the Process Layer 55 Deficiencies of Point-to-Point Interface 56 Business Process Management System (BPMS) Application Integration Framework 57 Separation of Process from Business Applications 58 How Business Process Management System (BPMS) Can Benefit Business Process Reengineering (BPR) Initiatives 6l How Business Process Management (BPM) Can Benefit Quality Programs 65 Notes 69 4 Data Integration Technology 71 Open Database Connectivity (ODBC) 72 Object Linking & Embedding Database (OLE DB) 74 Java Database Connectivity (JDBC) 75 Notes 78 5 Messaging-Based Integration Technology 79 Point-to-Point Messaging Process 81 Publish-and-Subscribe Messaging Process 83 Synchronous Messaging 85 Transactional Messaging 88 Message-Oriented Middleware (MOM) Interoperability 90 Notes 90 6 Component-Based Integration Technology 91 Remote Procedure Call (RPC) 92 The Shift Toward Object-Oriented Programming 95 Advent of Component-Based Technology 96 Common Object Request Broker Architecture (CORBA) 98 Elements of CORBA 98 CORBA Invocation Modes 101 CORBA Services 103 CORBA Component Model 104 Microsoft Component Technologies 105 Microsoft COM+ 108 COM+ Queued Component Service 108

4 Table of Contents ix COM+ Event Service 110 Microsoft.NET Ill.NET Remoting 113.NET Web Service 114 Java Component Technologies 116 Servlet and EJB 117 Java Component Container Services 119 Remote Method Invocation over Internet Inter-ORB Protocol (RMI-IIOP) 120 Java Transaction API QTA) 123 Java Naming and Directory Interface (JNDI) 124 J2EE Connector Architecture 125 J2EE Support for Web Services 128 Java API for XML Processing (JAXP) 128 Java API for XML-Based RPC (JAX-RPC) 129 Java API for XML Registries (JAXR) 129 Summary Workflow Technology 131 Different Types of Workflows 133 Production Workflow 133 Administrative Workflow 134 Ad Hoc Workflow 135 Collaborative Workflow 136 Workflow Reference Model 136 Workflow Process Definition Component 137 Workflow Engine 141 Workflow Client Application 142 Invoked Application 143 Administration and Monitoring Tool 143 Workflow Reference Model Interface Workflow Reference Model Interfaces 2 and Workflow Reference Model Interface Asynchronous Service Access Protocol (ASAP) 146 Workflow Extensible Markup Language (Wf-XML 2.0) 148 Workflow Reference Model Interface Differences between Workflow Management System (WfMS) and Business Process Management System (BPMS) 153 Notes Different Types of Business Process Management Systems 157 Types of Business Process Management System (BPMS) Processes 158 System-to-System Processes 159 Person-to-System Processes : 159 Person-to-Person Processes l6l Data-Centric Integration Product 161 New Generation of Data-Centric Integration Products 166

5 Business Process Management Systems Application-Centric Integration Products 169 Messaging Service Layer 170 Message Broker Layer 171 Hub-Spoke Message Broker Architecture 172 Enterprise Service Bus (ESB) Architecture 177 Process Management Layer 179 Business Process Designer 179 Business Process Engine 180 Business Activity Monitoring 181 Product Enhancement Strategies 182 Operation of Application-Centric Integration Products 183 Process-Centric Integration Product 184 Process Designer 185 Process Modeling and Simulation 188 Discrete Event Simulation 189 Benefits of Business Process Simulation 191 Process-Centric Process Engine 192 Integration Services 192 Process Monitor and Workplace Portal 193 Future BPMS Developments 194 Future Business Process Management System (BPMS) Product 194 Design Environment Features 195 Run-Time Environment Features 198 Business Process Management System (BPMS) Trends 200 Notes 200 Business Process Management System (BPMS) Standards 201 Development of Business Process Management System (BPMS) Standards 202 Overview of the Process Definition Standards 205 XML Process Definition Language (XPDL) 206 Business Process Modeling Language (BPML) 208 Business Process Execution Language (BPEL) 213 Comparing XML Process Definition Language (XPDL), Business Process Modeling Language (BPML), and Business Process Execution Language (BPEL) 218 Meta-Model Comparison 219 Human Participation Support 220 Transaction Support and Error Handling 221 Cross-Enterprise Collaboration 221 Control Flow Comparison 222 Summary of Process Definition Standards Comparison 226 Overview of Process Interaction Standards 226 Service-Oriented Architecture 227 Web Services Stack 228 Web Services Choreography Interface (WSCI) 230 Workflow Extensible Markup Language (Wf-XML)

6 Table of Contents xi Comparison of Business Process Execution Language (BPEL), Web Service Choreography Interface (WSCI), and Workflow Extensible Markup Language (Wf-XML) 234 Summary 235 Notes Business Process Management Implementation Methodology 237 Lessons from Business Process Reengineering (BPR) 237 Business Process Management (BPM) Implementation Methodology 240 Phase 1: Commit 242 Set Strategic Direction 243 Effect Organizational Alignment 245 Phase 2: Research 247 Determine Current Business Processes 248 Establish Process Management Technology Infrastructure 249 Prepare Organization for Change 252 Phase 3: Analyze 253 Assemble Project Team 253 Project Charter 257 Process Analysis 258 Phase 4: Design 258 Phase 5: Implement 262 Phase 6: Support 266 Conclusion 267 Notes 268 Index 269

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