IIR EA Conference: What Every Enterprise Architect Needs To Understand About BPM and Workflow

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 [email protected]

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mailto:[email protected]


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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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Manage Change

Manage Execution

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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



Level A

Level B

Level C

Level D

Level E

Level F



Processes Systems

Scorecard




Delivery Teams


Core processes

Strategic Process

Description

Tactical Process

Description

Operational Process

Description


WHATWHAT

HOWHOW

Top-Down Strategy

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Process Groupings

Business Activities

Core Processes



Level A

Level B

Level C

Level D

Level E

Level F



Processes Systems

Scorecard




Delivery Teams


Core processes

Strategic Process

Description

Tactical Process

Description

Operational Process

Description


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”


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”


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”


listAccts

newAcct

updateAcct

deleteAcct

createaccount

checkguidelines

BPM 2002: Services Integration

EnterInformation

Background Check

Conform

ance Rules

ApplicationLogic and

SOA

ServicesInterfaces


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


SOA


listAccts

newAcct

updateAcct

deleteAcct

ReviewCheck Create account

ESB/BPELComposite

Service


EnterInformation

Background C

heck

Rules


SOA Enterprise Application “Account Management”

listAccts

newAcct

updateAcct

deleteAcct


ESB/BPELComposite Services


EnterInformation

Background C

heck

New

Rules



listAccts

newAcct

updateAcct

deleteAcct




EnterInformation

Background C

heck

New

Rules



listAccts

newAcct

updateAcct

deleteAcct



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


listAccts

newAcct

updateAcct

deleteAcct


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: [email protected]: http://www.cebpi.org

slides: www.slideshare.net/mzurmuehlen



IIR EA Conference: What Every Enterprise Architect Needs To Understand About BPM and Workflow

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Transcript of IIR EA Conference: What Every Enterprise Architect Needs To Understand About BPM and Workflow