Business Process Management Systems ITEC 4030 Winter 2011 Peter Khaiter Lecture 9 Enabling Business (IT) Integration Feb 7

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1 Business Process Management Systems ITEC 4030 Winter 2011 Peter Khaiter Lecture 9 Enabling Business (IT) Integration Feb 7 Business Integration: Goals and Approaches - Review: BI is the exchange of business-critical information between applications in real time (Yee & Apte, 2001) - Goals: o Major improvement in business processes o Real-time operations o Business Activity Monitoring - Current approaches: o Routing of documents and forms: WF[M]S o Choreography ( orchestration)+ Messaging between apps: EAI, SOA, Web services o Shared databases: ERP - Scope can include internal systems (EAI-Enterprise Application Integration or ERP-Enterprise Resource Planning) and external ones (B2B integration) Workflow (Management) System - System that defines [ ] and manages the execution of workflows through the use of a software [ workflow engine ] able to interpret the process definition, interact with participants and, where required, invoke the use of applications (WfMC). - Includes several software components: o Process definition tools: Process and construct modeling software o Workflow Enactment Service: Workflow engine o Workflow client applications: Point of access for participants o Administration and monitoring tools: Re-routing, rule change, resource o management, performance monitoring, audit and reporting Possible applications invoked during execution of process: e.g. inventory management tools, payment systems, billing systems, etc. - Infrastructure: clients and server(s), middleware, applications, DBMS, networks, peripherals - Functional and non-functional requirements: Selection of products based on validated vendors specs - Benefits include coordinated teamwork (management of work and information flows and electronic handoffs), real-time information (BAM), process standardization, process execution synchronized with changing business needs WFMS Build Time & Run Time Activities - Build time activities: o Definition and test of business process and related constructs o Workflow-BPR specific editing mode o Model is exported of to some specific WFMS products

2 - Run time activities: o Interpretation of process definition o Creation and control of process instances o Interactions with identified participants o Interactions with other identified computer-based apps - The designer s view: o Designer defines and tests the business process o Designer defines related constructs (such as forms) - The end-user s view: o End-user establishes session o End-user obtains workitems: Pull mode: Users request new workitem Push mode: Workitem automatically routed to user Grab mode: Workitem routed to available user o End performs required tasks WFS are TPS: updates in operational database - The manager s view: o Manager monitors execution of the business process o Managers reallocates resources /re-routes workitems EAI Basics & New Developments - Basics: o BI is achieved through the re-use of existing apps (should be cheaper!) o Original focus on internal operations now extended to business partners o New developments: SOA (architecture that uses loosely coupled apps to support the requirements of business processes) Web services (SOA where the loosely coupled apps are accessed over the Internet) - Tools and products o Tools that model and analyze complex BPs before their implementation o Servers that execute BPs o Servers that allow for connectivity between apps o Servers that allow for data transformation o Servers that allow for message transportation o Servers that allow connection to business partners via EDI (and conversion to XML) o Servers that monitor the execution of BP (provide real-time information or BAM) o Servers that allow for information integration (portlet integration) Major vendors: IBM, Oracle, Microsoft Functional and non-functional requirements: Selection of products based on validated vendors specs

3 - Benefits include re-use of existing apps and infrastructure + Faster integration cycle ERP Basics - ERP systems: o Set of integrated business applications bought from software vendors o Include modules that support a particular set of BPs o Modules integrated through common definitions (schemas) and common database Facilitate an integrated and real-time planning of BP activities (i.e., production & sales) - ERP modules o Core applications (OLTP): Marketing, sales and distribution Production, material management and logistics Accounting and finance Human resources WFS and industry solutions (retail, automotive, etc.) o Business tools: OLAP Project management systems TPS, WFS, MIS, DSS are all included in ERP - Major vendors: SAP, PeopleSoft, Oracle, J.D. Edwards, Baan How ERPs Improve Business Processes - Separate modules support the flow of information across multiple functions/partners (see next slide) - On-line and real-time information: All functions / partners can access data in real time - Best practices (business blueprints): o SAP R/3 has over 1100 best practices available to choose from o Best practices in major industries (automotive, retail, etc.) ERP Illustration - Ordering: o Sales clerk enters order, checks discount and credit history and issues invoice o Can be done by customer through the Internet (ordering system is a webbased one) - Inventory: o ERP application checks inventory and location of items - Distribution: o ERP application alerts warehouse to ship portion of order in stock - Manufacturing: o ERP application schedules production of the remainder of the order

4 - Manpower: o ERP application checks availability of workers to handle order o ERP application alerts personnel manager if temporary workers are needed - Material planning: o ERP application checks availability of raw material needed for the order o ERP application alerts purchasing manager if more quantities must be ordered - Order tracking: o Customer logs onto the ERP system through the Internet to check status of order ERP: Design & Implementation Issues - Design: o C/S architecture: Typically 3-tier o Software: ERP modules requiring minimal coding and allowing for some customization Plateforms (Mostly Unix or Window), DBMS (Oracle, MS SQL, Sybase, DB2), Datawarehouse o Other design issues: Functional and non-functional requirements: See vendors specs LANs/WANs bandwidth and availability Security: access, encryption, firewalls, IDS, digital certificate - Implementation: Lease (versus Buy) o ASP ( delivers apps through a MAN or WAN usually the Internet o Organization pays a flat fee + for service on a monthly, yearly or on per use basis o Benefits Lower cost for applications: Organization does not invest in software and hardware Faster development (and shorter implementation!) Organizations focused on their core business o Limitations: Sensitive data+ WAN s response time Planning Process Integration - Activities o Examine alternative IT integration options o Adjust process design o Plan process implementation - Deliverable: Process integration plan - Key participants: IS design team + BPR team - Focus was on the design of computer-based apps that: o Support/shape critical BPs (such as procurement, production and sales)

5 o Allow for business integration (WFS, EAI, ERP, B2B integration ) Trends: EAI, SOA and Web services (re-use of existing apps) v/s ERP (new pre-packaged apps)