Post on 06-May-2015
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What every Enterprise Architect Needs to Understand about BPM and WorkflowMichael zur Muehlen, Ph.D.Center of Excellence in Business Process InnovationHowe School of Technology ManagementStevens Institute of TechnologyHoboken NJMichael.zurMuehlen@stevens.edu
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BPM is NOT about Technology
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BPM is NOT about Creating Diagrams
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BPM is NOT about Architecture
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BPM is about Improving Business
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BPM: The Business Value Question
BPM, BAM, BI, ESB, SOA, BLI, BLA,
BLUBB...
What is BPM?
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What is BPM?
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Let’s start with the process definition:
A Business Process is the temporal and logical sequence of those activities that are necessary to manipulate an economically relevant object toward an overarching goal, creating value for a customer
What is BPM?Business Process Management is comprised of the methods and tools that allow us to answer:
What are our processes?
How do we make them perform better?
How do we maintain their compliance?
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Scheduled Project Time during First BPM Project
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Business CaseProject Team SelectionProcess DiscoveryDocumentationFunctional and Technical SpecificationTools Evaluation and SelectionImplementationTesting and DebuggingDeployment and Training
Source: BPTrends (2006)
How do you make a Cup of Coffee?
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Boil Water
Thirsty
Put Coffee in CupPut Boiling Water
in Cup
Coffee is Ready
Co
ffe
e L
ove
r
The Nescafè Process
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Boil Water
Thirsty
Put Coffee in
Cup
Put Boiling
Water in Cup
Coffee is Ready
Fill Kettle
yes
no
Clean Cup
Yes
No
Kettle
empty?
Cup dirty?
Water is cold
Co
ffe
e L
ove
rD
ish
wa
sh
er
The Espresso Machine Process
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The Starbucks Process
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Order
cancelled
> 5 min wait
Barr
ista
Coffee S
hop
Cashie
r
Household
Thirsty
Collect
Payment
Go To Coffee
ShopOrder Coffee Pay for Coffee Take Coffee
Make CoffeeHand Coffee
To Customer
Payment
Order
cancelled
Insufficient Payment
Coffee
Order
> 5 min wait
+Done
Done
Leave
Discard Coffee
Done
Store Open
Take Order
BPM Questions
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How do we design and communicate this process?
How do we perform this process well?
How do we manage this process well?
How do we maintain compliance to rules and regulations?
How should technology support this process?
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BusinessProcessManagement
BusinessProcessAutomation
BusinessProcessInnovation
BusinessProcessMonitoring
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BusinessProcessManagement
BusinessProcessAutomation
BusinessProcessInnovation
BusinessProcessMonitoring
Manage Change
Manage Execution
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BusinessProcessManagement
BusinessProcessAutomation
BusinessProcessInnovation
BusinessProcessMonitoring
NotationStandard
Integration Standards
InteractionStandards
StandardMetrics
AuditStandards
What are you really good at?
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From Core to Commodity
Treat the process as a serviceDefine a standard interfaceThink about creating value outside and at the front-end
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Learn from Outside
Usage-based Insurance applies Telecom Billing Techniques
Progressive: Autograph Prototype ‘99-’01
Norwich Union:
Free GPS
Rate depends on mileage driven
Precondition: Flexible billing process
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Underwriting On DemandText2Insure: Provide Travel and Car Insurance via SMS
Provides Quote within 60 seconds
Reply “BUY”
Call from agent within 10 min for payment details
Cover2go: Accidental Death Insurance
Fees taken from cell phone bill
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Enterprise Process Frameworks
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BT Process Hierarchy
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Process Groupings
Business Activities
Core Processes
Business Process Flows
Detailed Process Flows
Level A
Level B
Level C
Level D
Level E
Level F
ObjectivesBusiness Activities
Delivery Units Products
Processes Systems
Scorecard
Sub Processes Roles System Functions
Operational Process Flows
Detailed Processes TransactionsDetailed Roles
Delivery Teams
Ownership ServicesProcess Groupings
Core processes
Strategic Process
Description
Tactical Process
Description
Operational Process
Description
Source: British Telecommunications plc 2006
BT Process Hierarchy
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Process Groupings
Business Activities
Core Processes
Business Process Flows
Detailed Process Flows
Level A
Level B
Level C
Level D
Level E
Level F
ObjectivesBusiness Activities
Delivery Units Products
Processes Systems
Scorecard
Sub Processes Roles System Functions
Operational Process Flows
Detailed Processes TransactionsDetailed Roles
Delivery Teams
Ownership ServicesProcess Groupings
Core processes
Strategic Process
Description
Tactical Process
Description
Operational Process
Description
Source: British Telecommunications plc 2006
WHATWHAT
HOWHOW
Top-Down Strategy
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Process Groupings
Business Activities
Core Processes
Business Process Flows
Detailed Process Flows
Level A
Level B
Level C
Level D
Level E
Level F
ObjectivesBusiness Activities
Delivery Units Products
Processes Systems
Scorecard
Sub Processes Roles System Functions
Operational Process Flows
Detailed Processes TransactionsDetailed Roles
Delivery Teams
Ownership ServicesProcess Groupings
Core processes
Strategic Process
Description
Tactical Process
Description
Operational Process
Description
Source: British Telecommunications plc 2006
Strategy
BPM Application
Top-Down Project
Roles &Responsi-
bilities
Process Owners
ProcessManagers
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Process Framework: Fortune 100Enterprise Process ArchitectureMethods Organization
Levelconcept
Conventionhandbook
Modelinghandbook
CorporateModelingService
Architecture ContentsGlossary and Data Structures
Common terminology that Business & Systems Analysts can refer to
Business Capabilities and Process Definitions
What capabilities do you have, and what processes do you support
Senior managers and business users have a common vocabulary of processes
Software purchases or outsourcing agreements are simplified
Consistency across business partners
Library of Cross-Organizational Messages
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Process Framework BenefitsSave Time: Allow to short-circuit process identification phase
Give Direction: Provide neutral map for navigation along processes
Unify Parts: Standardize terminology across the enterprise
Increase Agility: Enable benchmarking across organizations
Reduce Risk: Designed based on industry best practices
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BPM - Technology Evolution
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crea
tes
enables
Process Change
All IT is Initially an Expense
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Information Technology X Business
Value
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The Role of BPM Technology
“The first rule of any technology used in a business is that automation applied to an efficient operation will magnify the efficiency.
The second is that automation applied to an inefficient operation will magnify the inefficiency.”
No BPM = Monolithic Enterprise Application
Enterprise Application “Account Management”
listAccts
newAcct
updateAcct
deleteAcct
User Interface
Program and Logic
Internal Protocols are Proprietary C, C++, Visual Basic, Etc.
Built as a unit, Internals not visible
User Interface built in for all functions
In order to “extend” to a new function, need to call in a programmer...
BPM 1990: Workflow in the Brain
Background Check
Conform
ance Guidelines
ApplicationLogic in
MonolithicProgram
UI“Screens”
Enterprise Application “Account Management”
listAccts
newAcct
updateAcct
deleteAcct
BPM 1993: Task Management
backgroundcheck
createaccount
checkguidelines
LaunchesUI
User accessesoriginal UI directly
Human BPM/Workflow:
Background Check
Conform
ance Guidelines
ApplicationLogic in
MonolithicProgram
UI“Screens”
Enterprise Application “Account Management”
listAccts
newAcct
updateAcct
deleteAcct
BPM 1996: Workflow Routing
backgroundcheck
LaunchesUI
User accessesoriginal UI directly
Human BPM/Workflow:
Background Check
Conform
ance Guidelines
ApplicationLogic in
MonolithicProgram
UI“Screens”
Enterprise Application “Account Management”
listAccts
newAcct
updateAcct
deleteAcct
createaccount
checkguidelines
BPM 2002: Services Integration
EnterInformation
Background Check
Conform
ance Rules
ApplicationLogic and
SOA
ServicesInterfaces
Enterprise Application “Account Management”
listAccts
newAcct
updateAcct
deleteAcct
Reviewrules check
backgr. check
create account
UI connects user to BPMS, not the back-end
applications
BPM 2007: Composite Services
EnterInformation
Background C
heck
New
Rules
ApplicationLogic and
SOA
Enterprise Application “Account Management”
listAccts
newAcct
updateAcct
deleteAcct
ReviewCheck Create account
ESB/BPELComposite
Service
BPM 2007: Composite Services
EnterInformation
Background C
heck
Rules
ApplicationLogic and
SOA Enterprise Application “Account Management”
listAccts
newAcct
updateAcct
deleteAcct
ReviewCheck Create account
ESB/BPELComposite Services
BPM 2007: Composite Services
EnterInformation
Background C
heck
New
Rules
ApplicationLogic and
SOA Enterprise Application “Account Management”
listAccts
newAcct
updateAcct
deleteAcct
ReviewCheck Create account
ESB/BPELComposite Services
BPM 2007: Composite Services
EnterInformation
Background C
heck
New
Rules
ApplicationLogic and
SOA Enterprise Application “Account Management”
listAccts
newAcct
updateAcct
deleteAcct
ReviewCheck Create account
ESB/BPELComposite Services
BPM 2007: Composite Services
EnterInformation
Background C
heck
New
Rules
ApplicationLogic and
SOA Enterprise Application “Account Management”
listAccts
newAcct
updateAcct
deleteAcct
ReviewCheck Create account
ESB/BPELComposite Services
ExtraAudit
Separation of ResponsibilityBusiness Retains Control of
Assignment of ResponsibilityGroups, Roles, SkillsDeadlinesAlerts, Reminders, EscalationsOrder of TasksAddition of Manual TasksUser Interface
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IT Retains Control ofComputational LogicData RepresentationsScalability / PerformanceInteroperabilityMaster Data Management
EnterInformation
Background C
heck
New
Rules
Enterprise Application “Account Management”
listAccts
newAcct
updateAcct
deleteAcct
ReviewCheck Create account
ESB/BPEL
BPM - Technical Standards
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The Workflow Reference ModelProcess
Definition Tools
Administration & Monitoring Tools
Interface 1
Interface 4 - Interoperability
Interface 5Workflow Enactment Service Other Workflow
Enactment Service(s)
WorklistHandler
Interface 3Interface 2
InvokedApplications
Tool Agent
Process Definition Import/Export
ClientApps
WorkflowEngine(s) Workflow
Engine(s)
see: www.wfmc.org/standards/docs/tc003v11.pdf
The Workflow Reference ModelProcess
Definition Tools
Administration & Monitoring Tools
Interface 1
Interface 4 - Interoperability
Interface 5Workflow Enactment Service Other Workflow
Enactment Service(s)
WorklistHandler
Interface 3Interface 2
InvokedApplications
Tool Agent
Process Definition Import/Export
ClientApps
WorkflowEngine(s) Workflow
Engine(s)
see: www.wfmc.org/standards/docs/tc003v11.pdf
TypicallyWeb Services
BPMN
XPDL
Wf-XML
SOAP
BPEL
BPMN 1.0 offers 50 constructs
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+ Pool, Lane, Grouping, Annotation, Transaction
Boundary...
BPMN 1.1 will add more...
Nor
mal
Flo
wTa
skE
nd E
vent
Sta
rt E
vent
/ E
vent
Poo
lD
ata-
Bas
ed X
OR
Sta
rt M
essa
geM
essa
ge F
low
Text
Ann
otat
ion
Par
alle
l For
k/Jo
inG
atew
ayLa
nes
Sub
-Pro
cess
(Col
laps
ed)
Ass
ocia
tion
Dat
a O
bjec
tIn
term
edia
te T
imer
End
Ter
min
ate
Inte
rmed
iate
Mes
sage
Sub
-Pro
cess
(Exp
ande
d)E
nd L
ink
Def
ault
Flow
Incl
usiv
e D
ecis
ion/
Mer
geA
ctiv
ity L
oopi
ng'e
xcep
tion'
task
End
Mes
sage
Sta
rt L
ink
End
Exc
eptio
nC
ompl
ex D
ecis
ion/
Mer
geE
vent
-Bas
ed X
OR
Gro
upM
ultip
le In
stan
ceIn
term
edia
te E
vent
Tran
sact
ion
Com
pens
atio
nC
ondi
tiona
l Flo
wE
nd C
ance
lE
xcep
tion
Flow
Inte
rmed
iate
Com
pens
atio
nIn
term
edia
te L
ink
Sta
rt T
imer
End
Com
pens
atio
nIn
term
edia
te M
ultip
leIn
term
edia
te R
ule
Off-
page
con
nect
orS
tart
Rul
eC
ompe
nsat
ion
Ass
ocia
tion
End
Mul
tiple
Inte
rmed
iate
Can
cel
Inte
rmed
iate
Exc
eptio
nS
tart
Mul
tiple
0
30
60
90
120
Few of them are used...
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Source: Sample of 120 BPMN models
Normal FlowTask
End EventStart Event / Event
PoolData-Based XOR
Start MessageMessage Flow
Text AnnotationParallel Fork/Join
GatewayLanes
Sub-Process (Collapsed)AssociationData Object
Intermediate TimerEnd Terminate
Intermediate MessageSub-Process (Expanded)
End LinkDefault Flow
Inclusive Decision/MergeActivity Looping'exception' task
End MessageStart Link
End ExceptionComplex Decision/Merge
Event-Based XORGroup
Multiple InstanceIntermediate Event
TransactionCompensation
Conditional FlowEnd Cancel
Exception FlowIntermediate Compensation
Intermediate LinkStart Timer
End CompensationIntermediate Multiple
Intermediate RuleOff-page connector
Start RuleCompensation Association
End MultipleIntermediate Cancel
Intermediate ExceptionStart Multiple
0 30 60 90
120Few of them are used...
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XPDL: Process Definition Interchange
Allow tools to exchange process models between
components in a Workflow/BPM Products
different BPM/Workflow Products
Process Modeling / Simulation tools and BPM/Workflow Products
Implemented by commercial products
Full support for BPMN 1.0 in XPDL 2.0
Interoperability demonstrated at public events
>70 implementations
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BPEL – Execution LanguageBPEL is an “executable” language
Includes only executable operations
Does not contain the graphical diagram
Many Engines have proprietary formatsThey have a design tool
Some BPEL engines have proprietary extensions
It is typically not possible to design a process with a tool from one vendor and execute it in another vendor’s engine
But exchange between design tools is possible
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Process Design Ecosystem
Vend
or B
Vendor C
Design Tool
Design Tool
ModelingTools
OptimizationTools
SimulationTools
ExecutionEngine
ExecutionEngine
BPELor some
engine specific format
BPELor someengine specific format
ProcessRepository
Vendor A
Vendor D
ASAP
Wf-XML
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Users don’t care about standards per se, but about
their value proposition
BPM - Organizational Standards
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Leveraging Vertical and Horizontal Expertise
Compare Sainsbury (2006)
Process Group 2
Process Group 4
Process Group 3
Process Group 1
Process Group 5
Product Line 1
Product Line 2
Product Line 3
Product Line 4
Product Line 5
Process Manager
Process Manager
Process Manager
Process Manager
Process Manager
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Process OwnershipSource: Sainsbury (2006)
Focus Role Objective
BPM Roles - Example
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Process Sponsor
Process Framework Executive
Process Executive
Process Owner
Process Manager(recommended)
Process DB Manager
Process Modeler
Strategic
Operational
SharedService
Responsible for ARIS
Modeling Processes
Implement & Optimize
Process Performance Management
Standardize & Optimize
Facilitate & Drive
Method & Compatibility
Level
Corp. Region Division
The BPM Maturity Model
Governance Method IT People CultureStrategic Alignment
Process Roles and Responsibilities
Process Design & Modeling
Process Skills & Expertise
Process Values & Beliefs
Process Improvement Plan
Decision Making Processes
Process Implementation &
Executions
Process Education & Learning
Process Attitudes & Behaviors
Strategy & Process Capability Linkage
Process Management
Standards
Process Improvement &
Innovation
Process Knowledge
Leadership Attention to
ProcessProcess Output Measurement
Process Metrics & Performance
Linkage
Process Control & Measurement
Process Collaboration & Communication
Responsiveness to Process Change
Process Architecture
Process Management
Controls
Process Project & Program
Management
Process Management
Leaders
Process Social Networks
Process Customers & Stakeholders
Business Process Management Maturity
Process Design & Modeling
Process Implementation &
Executions
Process Improvement &
Innovation
Process Control & Measurement
Process Project & Program
Management
Source: Rosemann & DeBruin 2006
Agile BPM MaturitySatisfying all 30 facets of the BPM Maturity Model takes a long time
A subset of the BPM Maturity model is needed to guide an organization toward a rapid deployment of BPM technology
Example: Staged Deployment of Maturity Initiatives
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Modeling Tool Extended use of Tool
Choosing the Right StrategyThere is no single right pathway for all organizations
If command-and-control infrastructure: Methods come first, culture comes later
If participatory organization: Culture and people need to be nurtured earlier in the process
If centralized organization: Building a central repository can be undertaken early in the process
If decentralized organization: Leveraging individual projects to facilitate quick wins is important, but an integration strategy for the project results later on needs to be instituted early on
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Challenges Ahead
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50 Years of IT Lock-Down
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Management by Magazine
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Business People Acquiring IT Skills
Quo Vadis?
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TakeawaysThe Core becomes CommodityFrameworks Save TimeUnderstand Your Standards StackAgility Means Different Things to Different People
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Thank You – Questions?
Michael zur Muehlen, Ph.D.Center of Excellence in Business Process InnovationHowe School of Technology ManagementStevens Institute of TechnologyCastle Point on the HudsonHoboken, NJ 07030Phone: +1 (201) 216-8293Fax: +1 (201) 216-5385E-mail: mzurmuehlen@stevens.eduWeb: http://www.cebpi.org
slides: www.slideshare.net/mzurmuehlen