Business Management Paul Grefen Information Systems Technology Management, TU/e Introduction Business process ing Workflow concepts Advanced BPM concepts Business process management Conclusions Overview BPM - #1 - PG 06 BPM - #2 - PG 06 Introduction Business practice '' is the magic word: Tight linking of business functions (e.g. for ondemand business) Required end-to-end (order to delivery) business optimization Within individual organizations, but increasingly across organizations From function-oriented business to processoriented business Complexity requires automated support BPM - #3 - PG 06 BPM - #4 - PG 06 Requirements Life Cycle Requirements BPR Implementation Implementation BPM - #5 - PG 06 BPM - #6 - PG 06 1
Requirements M Requirements OM Implementation Implementation BPM - #7 - PG 06 BPM - #8 - PG 06 Business Modeling GTI process BPM - #9 - PG 06 BPM - #10 - PG 06 specification techniques Business Modeling choosing a ing technique flow based? token based? event based? document based? communication based? BPM - #11 - PG 06 BPM - #12 - PG 06 2
1 sell GTI process in DFD 1 2 GTI process in Petri Net Client 2 A Bookings 4 handle docum. 3 handle B Invoices 5 process Client ackn. 3 4 6 7 calc. acc. 8 9 docs. 10 11 docs. chk pay. 12 13 5a 5b prep. remind. BPM - #13 - PG 06 BPM - #14 - PG 06. calc. GTI process (UML activity diagram) GTI process in document transformation chart form dossier form OK? [CHANGE] [YES] [NO] ackn. letter customer [NO] OK? [YES] travel docs BPM - #15 - PG 06 BPM - #16 - PG 06 accom. sell ackn. GTI process in BPM transp. calc. new The perfect choice Choice depends on nature of workflow level of detail intended audience Combination of techniques for different abstraction levels different aspects Consistency with BPMS environment independent ing tools BPMS-specific tools and details BPM - #17 - PG 06 BPM - #18 - PG 06 3
Simple structure Adhocracy DFD Petri Net Thinking of Mintzberg UML AD Doc. TC BP Map Machine bureaucracy Professional bureaucracy Division structure BPM - #19 - PG 06 BPM - #20 - PG 06 GTI process in PD Business Modeling working with specific tools BPM - #21 - PG 06 BPM - #22 - PG 06 Workflow designer OR-JOIN StartJoin,, CalculateCosts; SEQUENCE SelectAccommodation, SelectTransport; SEQUENCE SelectTransport, CalculateCosts; SEQUENCE CalculateCosts, BookSplit; OR-SPLIT BookSplit CASE CustomerDecision change : StartJoin, : CancelAccommodation, : BookTrip; process specification language BPM - #23 - PG 06 BPM - #24 - PG 06 4
activity specification language ACTIVITY SendAcknowledgment DESCRIPTION Preparation of ing acknowledgment letter for customer in MS-Word, printing and ing it." INPUT = TripBookForm OUTPUT = TripBookAckLetter APPLICATION = MS-Word ROLE = General AVGTIME = 5 MAXTIME = 15 Business Modeling multi-level ing BPM - #25 - PG 06 BPM - #26 - PG 06 GTI process in PD GTI proces level 1 handle handle documens BPM - #27 - PG 06 BPM - #28 - PG 06 GTI proces level 2 Workflow Concepts BPM - #29 - PG 06 BPM - #30 - PG 06 5
Workflow concept workflow workflow Workflow process concepts seq. workflow role dyn. connector activity subflow seq. workflow sup. agent stat. uses actor group link rmation connector activity subflow repl. form document dossier BPM - #31 - PG 06 BPM - #32 - PG 06 Workflow organization concepts Workflow rmation concepts sup. agent link actor group form document dossier repl. BPM - #33 - PG 06 BPM - #34 - PG 06 Workflow concepts (summarized) Specification vs instantiation dyn. role stat. Spec Instance agent activity uses Task Spec Task Instance organiz. process Role Agent BPM - #35 - PG 06 BPM - #36 - PG 06 6
Workflow life cycle modify delay complete assign Inactive Waiting Running reject Completed Canceled Advanced BPM Aspects assign Rejected BPM - #37 - PG 06 BPM - #38 - PG 06 Advanced business process aspects Transactional processes Transactional processes Exceptions in processes Explicit flow in processes Cross-organizational processes BPM - #39 - PG 06 BPM - #40 - PG 06 Exceptions in processes T1 Explicit flow in processes rm customer replan ing plan BPM - #41 - PG 06 BPM - #42 - PG 06 7
Cross-organizational processes organiz. agent perfs process activity M Concepts (XO) uses agent perfs activity uses organiz. process BPM - #43 - PG 06 BPM - #44 - PG 06 Business Management BPM - #45 - PG 06 BPM - #46 - PG 06 MS as Infrastructure Business Management BPM Systems AS 1 AS 2 MS DBMS AS 3 AS 4 BPM - #47 - PG 06 BPM - #48 - PG 06 8
Definition Tools WfMC MS architecture UIS Mercurius MS architecture UIS stores IF1 Workflow API and Interchange Formats Clients AS/OS/ DBMS Adminstration & Mngmnt Tools IF5 Workflow Engine(s) Workflow Service IF4 Workflow Engine(s) Other Service(s) Server CS Server IF2 Workflow Client Applications IF3 Invoked Applications DBMS AS/OS stores BPM - #49 - PG 06 BPM - #50 - PG 06 Environment Blumenthal's Model Business Management looking at the control cycle Control System strateg. tactic operational Transformation System Information System rmation BPM - #51 - PG 06 BPM - #52 - PG 06 Environment Blumenthal's Model Environment Blumenthal's Model Control System Information System Control System Information System strateg. tactic operational strateg. tactic operational rmation rmation Transformation System Transformation System BPM - #53 - PG 06 BPM - #54 - PG 06 9
Environment Blumenthal's Model Control System Information System strateg. tactic operational rmation Transformation System BPM - #55 - PG 06 BPM - #56 - PG 06 Business Management Requirements Life Cycle dealing with innovation Implementation BPM - #57 - PG 06 BPM - #58 - PG 06 IT alignment (Strategic Alignment Model) WS-T Web Services Stack Business Strategy IT Strategy WS-Security WS-Agreement UDDI WS-C BPEL Organizational infrastructure & processes IT infastructure & processes WSDL SOAP XML HTTP BPM - #59 - PG 06 BPM - #60 - PG 06 10
Conclusions BPM - #61 - PG 06 BPM - #62 - PG 06 Business process ing Many approaches to process ing Practice often based on (rmal) petri net variants but quite some confusion Integration required of organization, rmation, and process Multi-level and/or multi-aspect ing required for complex applications Advanced aspects required for complex applications (but adopted by practice?) Business process enactment Workflow management integrates aspects of classical control cycle Workflow management not yet as generally accepted as base management Standardization lags behind Choice between structured (MS), semistructured (CHS) and unstructured (GW) Heavily influenced by emerging Web standards (e.g. BPEL) BPM - #63 - PG 06 BPM - #64 - PG 06 11