Arts BPM
Transcript of Arts BPM
ARTS
Retail Business Process Model
Roundtable Panel Discussion
Complexity made Simple - ARTSARTS Retail BPM Roundtable
Moderators
Thomas Sterling
Dennis Blankenship
September 13, 2010
Linking Business Strategy to Business Process Modeling
MissionVisionValues
Customers
And Demands
Go to Market
Strategy
Capacity Required
Complexity made Simple - ARTS
Capacity Required
To Execute Strategy
Business Architecture
To Organize & Provide
Structures for Capacity
Business Process
Models (part of
Business Architecture
Retailer Mission,Vision and Values
1C
usto
mer
s
Needs & Wants
Who we sell to andWhat needs we meet
2N
eeds
& W
ants
Retailer Strategy
3
Ret
aile
r Str
ateg
y4
Retailer Capacity
People Principles
MeasuresTechnology &
Systems
Process
The entities that a retailer must build or buyTo provide the material , labor and knowledgeResources required to execute their strategy.
Retailer Capacity
Opportunities Threats
Strengths Weaknesses
PLAN(Management’s
Strategy which is a working
Hypothesis)
ACT(Incorporate
learning and adapt to improve
performance)
Complexity made Simple - ARTS
Our strategy forProfitably serving ourcustomers
Ret
aile
r Str
ateg
y
5
RetailerCpacityto Execute itsStrategy
Business Architecutre
What How Who Where When Why
Scope context
Enterprise Model
System Model
TechnicalModel
Detailed Represent.
Executable
ARTS DM
ARTS XML
ARTS
Process
Retail Business Architecture
Enterprise ITArchitecture
6
Zachman Framework
DO(Executing the
plan)
CHECK(Measure actual results against
hypothesis)
What?
data
How?
function
Where?
locations
Who?
people
When?
time
Why?
motivation
Scope
contextual
Enterprise
Model
Conceptual
List of things
important to
the business
L ist of
processes the
business
perf orms
L ist of locations where the
b usine ss
ope rates
L ist of org aniza tio ns
im portan t to the
bu sin ess
L ist of even ts a nd cycles
imp ortant to the
busine ss
List of
balanc ed
scorecard
objectives
Semantic
Model
Business
Process
Model
Business
Logistics
model
Business
Process
Flow M odel
Corporate
Calendar and
events
Business Plan
Business
ARTS Data
Model
ARTS
XML Standards
ARTS
Process
Reference
Model
Retailer
Specific
1
2
3
4
Zachman Framework Context for ARTS Retail Business Process Model
Figure 1:
Complexity made Simple - ARTSARTS Retail BPM Roundtable
Conceptual
System
Model
Logical
Technology
Model
Physical
Detailed
Representation
Out of context
Functioning
System
Executable Objects
Logic al
Data
Model
Application
Architecture
Distributed
System
A rchitecture
Human
Interface
A rc hitec ture
Pro ce ssDe pen den cy and syn ch ronization
model
Business
Rules
Physical
Data Model
Sy stem
Design
Techn ical
In frastru ctu re
Architecture
Presentation
A rc hitec ture
Pro ce ss
cho reog rap hy &
o rchestra tio n
ar ch itectu re
Business rules
design
Database
Definition &
XML doc
code
Program
Code
N etwo rk
co nfigu ration
a nd scripts
Sec urity &
ac cess c ontrol
code
Process
c ontrol logic
c ode
Business rule
code &
engine
DatabaseExecutable
CodeNetwork Organization
Operations
Sc hedule &
Ev ents
Strateg y
Execu tio n w ith
fe edb ackTechnical
ARTS Retail Business Process ModelWill Address the Following Questions
• What information the process consumes, creates and modifies;
• How a process is executed (execution steps, decision points, primary and alternative flows, resources consumed, pre/post conditions, inputs, outputs, monitoring and control rules);
• Where a process is executed;
Complexity made Simple - ARTSARTS Retail BPM Roundtable
• Who is involved in the process as a performer, owner, supporter, as well as internal or external actor etc.;
• When a process is performed (i.e. event driven, periodic, exception based, etc.); and
• Why the process is performed (why is this process important to the retailer’s strategy and how does it contribute to the successful execution of that strategy).
Planned Work Products
Business Area Model – A high-level list of the major types of organizational
units within a retail enterprise;
Functional Decomposition Diagrams – Provide a top down taxonomy of retail
business functions included in the ARTS Process Reference Model. Functions’
names are always expressed in the form of a noun phrase. Examples include
customer relationship management, inventory control, store operations, web site
design, etc.
Process Decomposition Diagrams – For each function, a decomposition model
Complexity made Simple - ARTSARTS Retail BPM Roundtable
Process Decomposition Diagrams – For each function, a decomposition model
of the processes which execute a business function. Processes always exist
within the context of a business function. Processes’ names are always
expressed as an active verb phrase. Examples include: register customers,
perform physical inventory count, schedule store employees, transfer item, etc.
Processes may be decomposed into lower level processes;
Process Dependency Diagrams – Graphical descriptions of the dependency of
processes (execution sequence) within a process level. Process dependency
diagrams are only defined at the lowest level of process decomposition.
Planned Work Products
Business Process Modeling Diagrams – Detailed, graphical description of the
events, activities, decisions, primary and alternate paths that make up a business
process. Business Process Modeling Diagrams use a formal modeling language
called Business Process Modeling Notation (BPMN). The transition from
Process Dependency Diagrams to BPMD’s reflects the transition from
inventorying business processes to defining the logical steps they execute and
the business rules governing that execution. BPMDs incorporate business rules,
pre-conditions, post conditions, etc. Business Proessing Diagrams use
horizontal divisions of the diagram to designate pools and lanes. Pools may be
Complexity made Simple - ARTSARTS Retail BPM Roundtable
horizontal divisions of the diagram to designate pools and lanes. Pools may be
used to designate different actors that perform the activities that make up a
process. Lanes allow the pools to be subdivided into lower levels. Pools and
lanes enable activities to be visually aligned with organizations and individuals
that perform them. This approach has been used to define as is and to be
processes for business process reengineering. It may also be called line of site
diagram, swim-lane diagram, etc. BPMN defines the business process
architecture for a retailer and establishes the context for further development of
business services.
Planned Work Products
Association Matrices – An association matrix is a simple table that lists objects
(like data model entity types) as row headings and another set of objects (like
processes) as column headings and assigns on or more property value(s) to
cells where rows and columns intersect. Create-Read-Update-Delete matrices
are an example of an association matrix. The Zachman Framework shown in
Figure 1 is another example of an association matrix. These simple tables
provide the basis for identifying important relationships between different kinds
of modeling objects.
Complexity made Simple - ARTSARTS Retail BPM Roundtable
Retail Use Cases – Retail use cases provide a business description of how a
process works based on a defined set of preconditions and application of
business rules. Use cases provide an important tool for discovering and
defining business process activites and activity flows. They also provide useful
narrative explanations of processes and process variants. The notion of
process variants is important as a way of explaining how the core common
business processes of a retail model can be extended to handle different kinds
of retail business problems based on types of items, business strategy and
other factors that distinguish retailers from one another.
Planned Work Products
Retail Business Glossary – Common set of business terms, abbreviations,
formulas and other references useful in establishing a common retail language.
Additional narrative documents, spreadsheets, PowerPoint presentations and
other work products will be created to support the formal products.
In addition to these work products, the ARTS Retail Business Process Model will
reference other ARTS models including the ARTS Data Model, the ARTS XML
Complexity made Simple - ARTSARTS Retail BPM Roundtable
reference other ARTS models including the ARTS Data Model, the ARTS XML
Standard Schemas and the ARTS Data Warehouse Model. For example, where
appropriate, the relationships between specific ARTS Data Model entity types
and business processes will be represented in association matrices. Likewise,
the relationship between ARTS Standard XML-based messages and business
processes (including components of the processes) will be represented in
association matrices. Other ARTS work products (e.g. white papers, Request for
Proposal Templates, etc.) will be consulted and used to identify business process
topics to be addressed in the ARTS Retail Business Process Model.
BPM Levels
High Overv iew
Figure 2:
Complexity made Simple - ARTSARTS Retail BPM Roundtable
Detailed High Resolution View
BPM Levels
Enterprise – The retail business entity that serves as a “container” of business area and all lower level process-related
components.
Business Area – A major collection of functions that is reflected as a high-level organization component of the
Enterprise. In a retail enterprise customer relationship management, merchandising, store/channel operations,
inventory and distribution, finance and administration are examples of business areas. While not traditionally
considered a “retail business area”, shoppers are treated as part of the retail enteprise for process modeling purpose
Function – A collection of business processes expressed as a noun-phrase carried out within a business area. A
function defines what the enterprise does. Examples of functions include category management, marketing planning,
store operations management, labor scheduling, etc.
Complexity made Simple - ARTSARTS Retail BPM Roundtable
Process – A defined business action carried out to perform a function. A process is always expressed as an action verb
phrase. A business process may be composed of other lower level business processes or business tasks. Examples of
business processes include set up a category, update market plan forecast, define store holidy schedules, etc.
Activity – A defined business action that yields one or more specific work products and/or clearly defined outcomes.
A business process is composed of one or more tasks. An activity may consist of transformation actions, move
actions, inspect actions, decisions, waits (inaction) and inspect-transformation actions. For retailer understanding
which activities add value and which just consume resources is important to optimizing operational costs.
Service – A fined grain action executed as part of an activity. The service level used in the ARTS Process Modeling
hierarchy is the touch point between the business architecture and a more, technically oriented services architecture.
Services may be composed of lower level services.
Extending ARTS BPM to Retail Segments
Our approach to addressing this balancing act consists of the following tactics:
Process Variants Built Into Base Model
• FIFO/LIFO
• Retail Method / Average Cost Account Methods
Process Variants Built into Retail Segment Extended Models
• Product Categories – Apparel, Grocery, etc
• Promotions – EDLP, High / Low, etc
Complexity made Simple - ARTSARTS Retail BPM Roundtable
• Promotions – EDLP, High / Low, etc
Manage Business Context At Process Level
• For example a ItemRetailGet service will do the same things, take in the
same inputs, yield the same outputs, adhere to the same quality of
service rules whether it is invoked as part of a sales transaction process
or an inventory reporting process.
• This may not always be possible (i.e. there may be instances where we
need business context specific, single use services) but it is strongly
preferred as illustrated in next two slides.
Business Area – High Level
Process Model Template
Plan Do Check Act
Shopping
Merchandising
Customer RelationshipManagement Planning
• Hypothesis – what we think will happen
Doing
• Execute our plan and see what happens
Complexity made Simple - ARTSARTS Retail BPM Roundtable
Shopping
Store &ChannelOperations
Inventory &Distribution
Finance &Administration
Checking
• Measure what happened
Acting
• Learn Change our plan and/or execution to improve
performance
• Repeat the cycle
Extending ARTS BPM to Retail Segments
Complexity made Simple - ARTSARTS Retail BPM Roundtable
Extending ARTS BPM to Retail Segments
Complexity made Simple - ARTSARTS Retail BPM Roundtable
Draft ARTS Process Model
Business Areas:CRMMerchandisingShoppingStore/Channel OpsInventory & Dist.Finance and Admin
PLAN DO CHECK ACT
Complexity made Simple - ARTSARTS Retail BPM Roundtable
Merchandsing Plan
Complexity made Simple - ARTSARTS Retail BPM Roundtable
Customer Relationship Management
Planning
Complexity made Simple - ARTSARTS Retail BPM Roundtable
Customer Relationship Management
Doing
Complexity made Simple - ARTSARTS Retail BPM Roundtable
QUESTIONS & DISCUSSION
Complexity made Simple - ARTSARTS Retail BPM Roundtable