DEPARTMENT OF COMPUTER AND SYSTEMS SCIENCES STOCKHOLM UNIVERSITY

ROYAL INSTITUTE OF TECHNOLOGY

IS1 /2 I1228 ENTERPRISE COMPUTING AND ERP SYSTEMS

AUTUMN 2005 http://www.dsv.su.se/~pajo/is1/05/ COURSE NOTES

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C O U R S E G OA L S

T h e g o a l o f t h e c o u r s e i s t o f a m i l i a r i s e t h e s t u d e n t s w i t h : r e s e a r c h a n d t r e n d s i n t h e a r e a , i n p a r t i c u l a r m e t h o d s a n d s y s t e m s a r c h i t e c t u r e s a d v a n c e d c o n c e p t s i n e n t e r p r i s e m o d e l i n g t h e f u n c t i o n a l i t y a n d a r c h i t e c t u r e o f e n t e r p r i s e w i d e s y s t e m s l e a r n i n g f r o m i n t e r n a t i o n a l r e s e a r c h p u b l i c a t i o n s

S C H E D U L E D AC T I V I T I E S

LECTURE 1: Course overview and context. Goal Models.

LECTURE 2: Logistics, in particular procurement and sales, introduction of modelling assignment.

LECTURE 3: Business models, REA (Resource – Event – Agent), an ontology for enterprise systems.

LECTURE 4: More on business models, e3-value. Linguistic models for communication. Speech acts. A formal language for business communication (FLBC).

LECTURE 5: Process models, Petri Nets.

LECTURE 6: Process Analysis.

LECTURE 7: Guest lecture.

LESSON 1: REA – Resource – Event – Agent.

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LESSON 2: e3-value and Goal models.

LESSON 3: Petri net.

LESSON 4: Process Analysis.

MODELLING SESSION: Project assignment.

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L I T E R AT U R E

Wil van der Aalst and Kees van Hee: Workflow Management – Models, Methods, and Systems, The MIT Press, 2002. Collection of selected papers

T E AC H E R S

NAME EMAIL TEL

Gudrun Jeppesen (Course leader) gudrun@dsv.su.se 16 16 53

Paul Johannesson (Course leader) pajo@dsv.su.se 16 16 71

Erik Perjons perjons@dsv.su.se 16 49 47

Vandana Kabilan vandana@dsv.su.se

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EXAMINATION

The examination of the course consists of three parts:

Project assignment, see section project assignment

Special assignment, see section special assignment

Written examination, see written examination

PROJECT ASSIGNMENT

ENTERPRISE MODELLING

This assignment is to be carried out in groups of five students. The assignment is about a company, Design computer AB, described in the text below (AS-IS). Your task is to investigate and document the future situation (TO-BE) in the company and relate it to the goals of the company. When you are describing the TO-BE situation of the company, you should think about such facts as best practice, effectiveness, productivity and liquidity. (Lecture 2 and other literature should be used as background information used solving the assignment)

In order to pass the project assignment, each group has to

1. Participate in an early project review and hand in the results of this review (see below for details), must be completed before the fourth lesson

2. Participate in a modelling session

3. Construct and hand in a final solution, documented as described by the seminar modelling groups

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Your documentation shall include:

• A conceptual schema (expressed as UML class diagrams) using the REA model. All classes/entities including attributes must be named and the cardinality/multiplicity between the classes/entities must be expressed.

• A goal model

• A process model including company processes at a high level

• A number of scenarios (expressed as UML sequence diagrams) for the most important processes (FBLC should be used to check the workflows of new designed processes)

• An e3-value business model

• A value process graph for the most important processes showing the resources produced and consumed

• A number of detailed process models expressed as Petri nets ( see, your process model)

• An explanation of the relationships between the models. For relating the e3-value business model to the process model, you can use the phases from Open-edi (see http://www.untmg.org/artifacts/UMM_User_Guide_2003-09-22.pdf). For relating the goal model to the e3-value business model, see the lecture notes.

The documentation shall also discuss the following questions:

• Which Action-Workflow loops exist? Are there open loops or closed loops? Open loops should they be closed?

• How should the processes be changed in order to better support the goals of the company?

• Which parts of the conceptual schema correspond to the REA model?

The documentation shall also contain a description of which changes the group has made to its models after the modelling session, and a brief description (around one page) of the results from the early project review. Do not forget that all models should also be described and explain in plain text.

EARLY PROJECT REVIEW

Before the modelling session, two groups must meet and discuss and review each others models. It is up to the groups to find a group to perform the project review together with. The results from the review must be documented by each group (around one page) and shall be handed in by FirstClass. The documentation should consist of information about both groups involved in the Pre-seminar.

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The review should focus on the model’s syntax (does the group use the correct UML and Petri net notation?), the scope (are all parts of the company modelled?) and the detail level of the models (are the models detailed enough?). The review should also check that all model types (conceptual schema, goal model, scenarios, value process graph, and process models) are included.

Each group must hand in the protocol concerning the group that the group have reviewed.

MODELLING SESSION

During the modelling session, which is a one day modelling session, two groups should together create a conceptual schema, a goal model, a scenario, e3-value business model, a value process graph, and a process model, based on the two groups’ models. The groups will discuss and compromise to find common models. The modelling must be carried out using plastic sheets and post-it notes, which will be supplied by the teachers during the modelling session. After the modelling session, both groups together will, based on the new models created and the discussion during the modelling session, refine its models. The final documentation must contain a description of which changes the group has made to its models after the modelling session

DESIGN COMPUTER AB

Design computer AB is a company situated in Stockholm. The company co-operates closely with its international counterparts. The company may in the future even join these counterparts and form a joined group of companies. The group has presence in several big cities across Europe such as London, Paris, Copenhagen, and Stockholm. The companies are interested in forming a group as they all market the same product lines. Furthermore, they all sell to the same categories of companies such as other companies, public authorities and in some occasions also to individual consumers. The companies believe that they as a group can minimise costs, stock, etc. in order to increase their profit. The company’s executive board draws up common lines concerning organisation structure, strategic objectives, etc. However, in these matters the executive board has discussions with its counterparts so that the companies have similar organisations, strategic objectives etc when possible in order to facilitate a future merge. Facts on Design Computer AB As mentioned above the company is situated in Stockholm and its organisational structure follows.

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Assistant

PurchasingAssistant

Purchaser PurchasingAssisstant

NotificationManager

PurchasingManager

Ready to sellproducts

Purchaser PurchasingAssistant

PurchasingManagerDesign

products

Warehouse-Assistant

ShippingManager

StockWorker

StockManager

Storage-Worker

StorageManager

WarehouseManager

PurchasingManager

Sales-assistant

Salesman SalesAssistant

SouthSales

Territory

Designer

Salesman SalesAssistant

NorthSales

Territory

InvoicingManager

SalesManager

Finansial-assistant

StaffManager

SeniorAccountant

Invoicingcleck

AccountManager

Financial Manager

MarketingManager

C.E.O

The company sells a selection of different products and services such as:

Products: • Standard products • Spare parts • Designed products1 Services: • Design of products • Assembly The company’s executive board has formulated the following set of strategic objectives for the company’s business: • Products should allow flexible use • Products and services shall be harmless to the environment • Products and services shall be ergonomic • Products and service shall have high quality • Products and services shall have reasonable prices • Customers should be satisfied • An increase in profitability of 5 percent in a period of ten years • Implement a new sales channel within two years The company’s principles for customer delivery concerning standard products and spare parts can be formulated as follows:

1 Design products are product that customers can design using different components (e.g. spare parts) or parts with better quality etc.

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If products are in storage, they shall be shipped so that they arrive on delivery date. If products are not in storage, then they could be shipped directly to the customer by the supplier if the order-value allows the purchasing department to authorise it. Otherwise the customer should be asked if he wants to register a back order or if he wants to reorder. Customers that order design products get a 10% reduction when assembly is not included in order. Since the company’s executive board wishes to reorganise the company in order to increase its profitability some employees have been interviewed about the as-is business processes.

BUSINESS PROCESS DESCRIPTIONS

Sales A customer may have read about us in a magazine or he may have been contacted by a sales representative. When a customer approaches our company, the customer is allocated to one of our sales departments depending on his residential location. If all sales personal at the customer’s sales department are occupied, the customer is transferred to another sales department. This procedure often prolongs the time of delivery with one or two days. 70 percentages of orders are standard orders and they are delivered straight away to the customer according to earlier agreed conditions. If the customer does not know exactly what kind of products he needs to purchase, he is transferred to the design department to discuss the matter with a designer. When the customer together with the designer has decided which products to purchase, the customer makes an inquiry for quotation. In some cases, the sales department realises that the inquiry is not appropriate for the customer or that it is incomplete. The customer is then contacted for further discussions before the inquiry is answered. When the inquiry is complete, it is evaluated and a quotation is sent to the customer. The quotation may specify alternatives, e.g. products, prices, payment conditions and conditions of delivery, etc. The company’s objectives for its sales are that 99 percentage of all orders should be delivered in time and that all customer-invoicing should be paid due day (maturity). About 30 percentage of all quotations result in sales orders and one aim for the company is to increase this to 40 percentages in the next five years. A sales order may contain many different products and for each product the delivery time is specified, i.e. the delivery time may vary from product to product depending upon if the product is a standard product, a spare part or a design product. For standard products and spare parts, time of delivery is one week but for the design products it varies. The sales department always checks that a sales order is consistent with the quotation it is based upon, if not the sales department sends an acknowledgement to the customer. If a customer has issued his sales order within the legally binding period of the quotation, the sales department accepts the sales order. If the sales order arrives later, terms may have to be renegotiated owing to possible changes in supplier conditions upon which the quotation was based. In case that the sales department cannot come to new terms the sales manager might have to cancel the order. In spite of this the sales manager often accepts the order due to other considerations, e.g. the sales department does not want to lose a big customer or it wants to gain an important new customer. However, lately one has the feeling that this happens too often, possibly because the sales personnel want to get their commissions. Procurement For each order the sales department must make sure if a standard product and/or spare parts are in stock, is ordered or has to be ordered before it can be delivered. For customers that have ordered other products than standard products, the purchasing department might have to order assembling or production. In some cases, the purchasing department may order products for two or more sales orders at the same time, but as their design products are much differentiated this is not frequent. Based on the bill of materials2 (BOM), the purchasing department can compute the quantities the purchasing department needs to purchase in order to

2 A bill of material contains information about a product’s components and their number etc.

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deliver its order in time. Based upon the sales order and the bill of materials (BOM), the purchasing department prepares and sends a purchase request to one or several different suppliers. An important task for a purchasing department is to choose the optimal supplier for each standard product or spare parts that the company has in stock. The choice depends on price, availability, time of delivery etc. Usually, there are more than one supplier for each article. Different purchasers use different purchasing methods. Some use special algorithms while others choose manually although the company prefers that purchasers use the same purchasing method. When the purchase department has chosen suppliers for all items, they should send purchase orders to the suppliers within one hour. However, this does not happen in 90 percent of all purchases. A purchase order may concern several articles, and for each article the purchase (delivery) conditions are specified. Usually, the total quantity ordered should be delivered at the same occasion. But in some cases, the delivery time varies (the delivery will be spread out over several occasions). The purchase order also specifies to which location the supplier is to send his articles. Sometimes, the purchasing department requests the supplier to confirm the purchase order or delivery dates. If he does not confirm immediately, one reminder will be sent. If he still does not confirm, the purchasing department will cancel the order. Unfortunately, it happens too often that orders have to be cancelled and another supplier has to be chosen. Since this makes it impossible for the sales department to keep promised delivery time to customers, the purchasing department should try to only use suppliers that confirm their purchasing requests in time. When the order is issued an agreement concerning invoicing must be included. Either the company pays at each delivery or it pays when all the goods of a particular purchase order have been delivered. When the purchaser has authorised the invoice for payment it is returned to the senior accountant. Invoices are very often paid too late because authorising takes too long. The main goals of the company for handling purchasing invoices are to: • get cash discount • avoid penalty interest • have effective cash flow Goods-receipt When goods are received from a supplier, it will be inspected by the goods-receipt before stocking in order to ensure that it is not damaged. If the goods are damaged, the purchasing department should make a complaint and in most cases also return all or parts of the goods which they usually forgets. Delivery Every morning each warehouse checks the orders that are due for shipment and which of these orders that can be shipped. The stock manager determines which orders to ship in order to meet delivery times. All the products of the order are picked and loaded on a lorry, which delivers the goods to the customer. Usually, the customer is satisfied with the delivered goods. However, sometimes there are complaints. The customer may claim that some or all goods are damaged and a customer might even claim that he got the wrong goods. It is the sales department that handles all complaints and who takes the appropriate action due to failing complaints instructions. In cases like this, the new delivery has the highest shipping priority. Some of the customers mention that they so often have to complain about damaged goods, missed delivery times, incorrect invoices, etc that they have considered changing to another supplier. The CEO is very concerned about the large amount of complaints since one of the companies goals are that only one percentage of orders should generate complaints from customers.

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SPECIAL ASSIGNMENT

The special assignments are carried out in groups of five students. Each group hands in their preference for an assignment, but the group has to solve the assignment allocated to it by their supervisor. The groups should have handed in their preferred assignment within two weeks.

The assignment shall be documented in a report and sometimes in a system as well, see descriptions of the Special assignments.

The assignment shall be reviewed by another group and therefore the report must be handed in two weeks before the course ends. The supervisor decides which group to review.

The review should focus on the model’s syntax (does the group use the correct UML, Petri net notation etc, the scope and the detail level of the models). The review should also check that all model types are included. The review should also include checking textual descriptions, etc. Besides a critical analysis, the review shall also include a constructive component. This means that the reviewing group should improve the reviewed report by rewriting it according to their analysis. The rewritten report should be handed in one week before the course end.

Each student group must select one of the assignments presented below.

1. EAI Software Evaluation Introduction There exist today a large number of software products in the EAI (Enterprise Application Integration) area. These products address different aspects of EAI, but the marketing hype often makes it difficult to understand how they differ from each other. Therefore, there is a need for an evaluation model that facilitates comparison of EAI products. Task Your task is to propose an evaluation model for comparing EAI products and evaluate (at least) three products according to this model. Your documentation is to include:

- A goal model that explains goals and problems in EAI and how software products can be used to address these. - An evaluation model consisting of a set of criteria for comparing EAI products – you should describe, explain and motivate the criteria you introduce. You should also relate your criteria to the goal model you have constructed. - An evaluation according to the model of (at least) three products.

Your documentation is to take the form of a web site with relevant links. Resources

Tutorial (http://www.dsv.su.se/~pajo/arrange/eaitutorial.ppt) EAI Journal (http://www.eaijournal.com/) IntelligentEAI (http://www.intelligenteai.com/)

Process

1. Read the paper about EAI in the course literature 2. Take a look at this tutorial (http://www.dsv.su.se/~pajo/arrange/eaitutorial.ppt )(Note that there are notes for every slide)

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3. Browse the sites for more articles and try to identify dimensions in which EAI products can differ 4. Construct your goal model 5. Construct the evaluation model 6. Decide which products to evaluate and carry out the evaluation 7. Document your results

Evaluation The result of the group's work is to be evaluated according to the following criteria:

- Relevance – does the work include only relevant aspects or does it include also less important aspects? - Completeness – does the work include all important aspects or does it omit any of them? Readability – is the work easy to read and understand? Are all technical terms appropriately explained? - Graphical design – is the graphical design of the web site functional and aesthetically pleasing?

2. BPMN Tutorial and Analysis Introduction There exists today a large number of process modelling languages and approaches in industry. In an effort towards standardisation, the industry consortium BPMI has developed languages and frameworks to support the life cycle of business process management. One of the most import languages is BPMN, Business Process Modelling Notation. Industry support for BPMN is increasing, but the language is still not widely used. Therefore, there is a need for tutorials that introduce and explain BPMN as well as for empirical analysis. Task Your task is to construct a BPMN tutorial and an accompanying critical analysis. It should consist of (at least) the following parts:

- A textual introduction to BPMN with small examples (3-5 pages) - A goal model explaining the goals of BPMN - A conceptual model describing the main concepts in BPMN (use UML class diagrams) - A discussion on how the semantics of BPMN can be understood by means of Petri nets - An overview of vendors and products for BPMN - A number of example processes expressed in BPMN with explanations; these processes should be the same as the ones you modelled in the DESIGN COMPUTER case - An experience report on the strengths and weaknesses of BPMN

Your documentation is to take the form of a web site with relevant links. Resources

www.bpmn.orgwww.bpmi.org

Process

1. Browse the indicated web sites for relevant resources, especially the BPMN 1.0 specification 2. Read the specification carefully 3. Construct models for the DESIGN COMPUTER case 4. Write down the introductory text 5. Document your results

Evaluation

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The result of the group's work is to be evaluated according to the following criteria: - Relevance – does the work include only relevant aspects or does it dwell on peripheral issues? - Completeness – does the work include all important aspects or does it omit any of them? - Readability – is the work easy to read and understand? Are all technical terms appropriately explained? Are the process diagrams clear? - Graphical design – is the graphical design of the web site functional and aesthetically pleasing?

3. UML 2.0 Activity Diagram Tutorials and Analysis Introduction There exists today a large number of process modelling languages and approaches in industry. In an effort towards standardisation, OMG has since several years developed languages and frameworks in this area, not only for business process management but more generally. One of the most import languages is here UML activity diagrams. OMG has recently released a new version of activity diagrams in UML 2.0. Therefore, there is a need for tutorials that introduce and explain UML 2.0 activity diagrams as well as for empirical analysis. Task Your task is to construct a UML 2.0 activity diagrams tutorial and an accompanying critical analysis. It should consist of (at least) the following parts:

- A textual introduction to UML activity diagrams with small examples (3-5 pages) - A goal model explaining the goals of UML activity diagrams - A conceptual model describing the main concepts in UML activity diagrams (use UML class diagrams) - A discussion on how the semantics of UML activity diagrams can be understood by means of Petri nets - An overview of vendors and products for UML activity diagrams - A number of example processes expressed in v with explanations; these processes should be the same as the ones you modelled in the DESIGN COMPUTER case - An experience report on the strengths and weaknesses of UML activity diagrams

Your documentation is to take the form of a web site with relevant links. Resources Process

1. Browse the indicated web sites for relevant resources 2. Read the relevant specifications carefully 3. Construct models for the DESIGN COMPUTER case 4. Write down the introductory text 5. Document your results

Evaluation The result of the group's work is to be evaluated according to the following criteria:

- Relevance – does the work include only relevant aspects or does it dwell on peripheral issues? - Completeness – does the work include all important aspects or does it omit any of them? - Readability – is the work easy to read and understand? Are all technical terms appropriately explained? Are the process diagrams clear? - Graphical design – is the graphical design of the web site functional and aesthetically pleasing?

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3. UMM Case Study Introduction In order to facilitate e-commerce communication, many standardisation activities have been initiated in industry. The goal of the standards is to enable enterprises to more efficiently and accurately search for information, establish agreements, and carry out business transactions. Some of these standards have a long tradition, like EDI, while others have appeared more recently in the Internet age, e.g. RosettaNet, cXML, and ebXML. The most influential standardisation effort is ebXML, which has recently released its first specifications. Closely related to ebXML is UMM, the UN/CEFACT Modeling Methodology. A main purpose of UMM is to assist designers to capture business process practices and knowledge independently of technology. UMM has received much attention but is still not widely used. Therefore, there is a need for case studies that investigate the strengths and weaknesses of UMM. Task Your task is to build process models for the DESIGN COMPUTER Case using UMM. Your documentation shall include filled in worksheets as well as graphical models. You should also evaluate UMM based on the experiences from the case study. Resources

www.ebxml.org http://www.untmg.org http://www.untmg.org/artifacts/UMM_User_Guide_2003-09-22.pdf

Process

1. Read basic documents at the first two sites above to get a general understanding of ebXML. and UMM 2. Read in detail about UMM at the last URL above 3. Consider the DESIGN COMPUTER Case in the course material. 4. Apply UMM for the DESIGN COMPUTER Case (skip BSV) 5. Evaluate UMM based on your experiences. The evaluation should address the following questions. Is it easy to use UMM? Is it always clear how to fill in the sheets? To what extend does UMM help in designing models? You should also compare your work to what you did earlier in the course and discuss whether and how UMM helped you to improve your previous models. 6. Document your results.

Evaluation The result of the group's work is to be evaluated according to the following criteria:

- Relevance – does the work include only relevant aspects or does it dwell on peripheral issues? - Completeness – does the work include all important aspects or does it omit any of them? - Readability – is the work easy to read and understand? Are all technical terms appropriately explained? Are the process diagrams clear?

3. BMO Case Study Introduction In the course, we have looked into business model languages and ontologies like REA and e3-value. These take an external perspective and consider the relationships between actors in a value web. However, there are also business model ontologies that take an internal perspective focussing on one actor’s perspective.

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One of the most comprehensive of these ontologies is BMO, Business Model Ontology. BMO has been released recently, and there is a need for empirical validation of the ontology. Task Your task is to build a business model for the DESIGN COMPUTER Case using BMO. You should also evaluate BMO based on the experiences from the case study. Resources

http://www.hec.unil.ch/yp/Pub/03-ICEC.PDF http://www.hec.unil.ch/aosterwa/PhD/Osterwalder_PhD_BM_Ontology.pdfMore documents here: http://www.hec.unil.ch/yp/

Process

1. Read the two documents above 3. Consider the DESIGN COMPUTER Case in the course material. 4. Build a business model for the DESIGN COMPUTER Case using BMO 5. Evaluate BMO based on your experiences. The evaluation should address the following questions. Is it easy to use BMO? Is it always clear how to identify the business model elements? Are the concepts in BMO intuitive? You should also compare your work to what you did earlier in the course and discuss the differences between the earlier business models and the BMO business model. 6. Document your results.

Evaluation The result of the group's work is to be evaluated according to the following criteria:

- Relevance – does the work include only relevant aspects or does it dwell on peripheral issues? - Completeness – does the work include all important aspects or does it omit any of them? - Readability – is the work easy to read and understand? Are all technical terms appropriately explained? Are the process diagrams clear?

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4. Web Services, EAI, and Enterprise Systems Introduction Web services have recently emerged as a technology for integrating systems and applications on the Internet. Web services could, thus, be used for EAI and for connecting Enterprise Systems in different organisations. Task Your task is to investigate how Web services can be used for EAI and for integrating Enterprise Systems. Your documentation should include.

- A textual introduction to the concept of Web services (3-5 pages) - An overview of actors in the area - A goal model describing the goals of EAI and how Web services can contribute to these, as well as problems and hindrances - A discussion on the usefulness of Web services for EAI and Enterprise System

Your documentation is to take the form of a web site with relevant links. Resources

www.webservices.org (http://www.webservices.org/) Tutorial (http://www.dsv.su.se/~pajo/arrange/eaitutorial.ppt) EAI Journal (http://www.eaijournal.com/) IntelligentEAI (http://www.intelligenteai.com/)

Process

1. Identify and read relevant documents from the web sites above as well as from other sources. 2. Write the introuctory text. 3. Complete the web site.

Evaluation The result of the group's work is to be evaluated according to the following criteria:

- Relevance – does the work include only relevant aspects or does it dwell on peripheral issues? - Completeness – does the work include all important aspects or does it omit any of them? - Readability – is the work easy to read and understand? Are all technical terms appropriately explained? Are the process diagrams clear?

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5. Customer Relationship Management Tutorial Introduction In recent years, the area of Customer Relationship Management (CRM) has received much attention, and many software vendors have entered the market. CRM is still in a flux and it is hard to get a clear understanding of the area. Therefore, there is a need for a tutorial that introduces and explains CRM. Task Your task is to construct a CRM tutorial. It should consist of (at least) the following parts:

- A textual introduction to CRM (3-5 pages) - A goal model explaining the goals of CRM - Process models describing the major CRM processes - A conceptual model describing the main processes in CRM (use UML class diagrams) - An overview of vendors and products in the CRM marketplace - A description of the relationship between CRM software and other types of software, in particular Enterprise Systems

Your documentation is to take the form of a web site with relevant links. Resources

CRM Foundation (http://www.crmfoundation.com/) crm-forum.com

Process

1. Browse the web sites for relevant articles 2. Read the articles and appropriate sections of the course book 3. Construct the models, it might be helpful to start with the conceptual model 4. Write down the introductory text 5. Document your results

Evaluation The result of the group's work is to be evaluated according to the following criteria:

- Relevance – does the work include only relevant aspects or does it include also less important aspects? - Completeness – does the work include all important aspects or does it omit any of them? - Readability – is the work easy to read and understand? Are all technical terms appropriately explained? - Graphical design – is the graphical design of the web site functional and aesthetically pleasing?

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6. A Process Library for B2B Hubs Introduction You work at Integrent, a company that produces EAI (Enterprise Application Integration) software. Integrent believes that B2B hubs (also called B2B exchanges) will become an important market for its products. This means that a company setting up a B2B hub will base it on Integrent's process oriented middleware to connect the actors of the hub. In order to help their prospective customers to jump-start their projects, Integrent has decided to construct a library of the most important processes for B2B hubs. Task Your task is to construct (the kernel of) Integrent's process library for B2B hubs. Your library should support the following types of hubs: MRO hubs, yield managers, exchanges, and catalogue hubs. Furthermore, it should support forward as well as reverse aggregators. Your library should include the most important processes for B2B hubs. These processes are to be expressed in the BML notation and use FLBC to clarify the types of communication taking place. In order to structure the library you should use the notions of decomposition and specialisation. Resources

S. Kaplan and M. Sawhney: E-Hubs: The New B2B Marketplaces, Harvard Business Review May-June 2000 (copies of this paper will be available outside the room of Paul) Phios (http://www. phios.com) T. Malone et.al.: Tools for inventing organizations (http://ccs.mit.edu/21c/mgtsci/index.htm)

Process

1. Read the Kaplan and Sawhney paper in order to get an understanding of B2B hubs 2. Read the Malone paper and browse the Phios web site in order to get an understanding of the notions of process decomposition and specialisation 3. Identify the most important processes for B2B hubs 4. Document the processes using BML and FLBC and provide explanations in natural language

Evaluation The result of the group's work is to be evaluated according to the following criteria:

- Relevance – does the work include only relevant aspects or does it dwell on peripheral issues? - Completeness – does the work include all important aspects or does it omit any of them? - Readability – is the work easy to read and understand? Are all technical terms appropriately explained? Are the process diagrams clear?

WRITTEN EXAMINATION

An example of a written examination can be found at the course web site and the First Class conference “gamla tentor” a sub-conference to the conference “Studentexpeditionen”. The students are allowed to bring lecture notes, exercise notes and course literature to the written examination.

You can be rewarded 0, 1 or 2 points extra for your exam by attending the guest lecture and handing in a 1 – 2 pages written summary of the lecture. The summary must be handed in no later than the exam date. This opportunity is only possible to use when participating in the regular exam connected to the course a student has participated in.

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GRADING

The written examination contains questions for a total of 30 points. The grading will be as follows:

For students at SU, 20 points suffice for G, 26 points suffice for VG.

For students at KTH, 20 points suffice for 3, 24 points suffice for 4, and 28 points suffice for 5.

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L E S S O N 1 REA ONTOLOGY

EXERCISE 1

A bakery produces hundreds of different sorts of plain bread, wheat bread, cakes, gateaux etc to be delivered to different retails shops accordingly to the bakeries orders. The bakery needs to keep track of all product descriptions that are needed to produce its selection of bread and cakes. The descriptions include facts such as ingredients, quantity, processing, rising time, baking time, baking temperature and production time. The production is carried out partly using machinery partly manually. Sometimes a production is a failure and then the bakery needs to know the name of the person responsible for the production and which oven that has been used. Furthermore the bakery needs to know the name of ingredient supplier. The bakery usually purchases flour, sugar etc from one supplier and baking powder, marzipan etc from another supplier.

Construct a conceptual schema for the business using REA

EXERCISE 2

In the text below, the business of a company is described. Solve the following tasks based on that description:

a) Construct a conceptual schema for the business using REA.

b) Assume that the company no more delivers the pictures with their own personnel and cars but outsources this activity to a distributor. How does the schema from a) change?

c) Construct a value process graph for the business that shows how the processes are interrelated based on the resources they produce and consume. Show how the processes relate to the conceptual schema from a).

A company manufactures and sells framed fossils. The company has a number of subunits that autonomously manage procurement and sales. However, some activities are managed centrally, see below. The subunits procure fossils and frames from their suppliers – note that no single supplier can provide both fossils and frames. The fossils to be framed are typically very expensive and are procured one at a time, often after a complex negotiation. The frames, on the other hand, are fairly inexpensive and are ordered in large quantities in order to keep prices down.

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The mounting of the frames is made by qualified personnel. When a picture is completed, it is inspected by an inspector in order to guarantee that it holds the highest standards before it is shipped to a customer.

The customers usually buy only one fossil at a time, but sometimes one customer orders several pictures simultaneously. In most cases, the customer specifies the kind of fossil desired, e.g. “tooth of Tyrannosaurus Rex”, but sometimes a customer orders a specific fossil. Most pictures are expensive and fragile and they are, therefore, shipped directly to the customer by the company’s own personnel who for this purpose use the company cars.

The company employs central personnel for mounting and delivery of pictures. Furthermore, the company centrally purchases the cars used at the deliveries.

A number of information requirements are the following:

1. Which customers have bought a picture costing more than 1000 euro?

2. Which customers have bought a picture but still not paid for it?

3. Which frame is the most popular for fossils costing more than 10,000 euro?

4. Which suppliers can deliver amber fossils?

5. Which employees have delivered a picture to the customer Anders Andersson?

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L E S S O N 2 BUSINESS MODELS AND GOAL MODELS

EXERCISE 1

There exist a number of Internet music stations, where a listener can choose what music he or she would like to listen to. The listener does not have to pay any fee, instead the Internet music stations get revenue from advertisers. Furthermore, the music stations have to pay for the music they are playing. This is done through two regulatory bodies, called RecitalRight and SongRight (fictitious names). RecitalRight gives rights to play music performed by certain artists and produced by producers and manages the reimbursement to these actors. SongRight does the same but for composers and textwriters.

a) Create an e3-value model for the above business case including actors, value objects, and value exchanges.

b) Complement the model from a) with a scenario path.

c) Suppose that there is a new actor, an advertisement broker, that helps advertisers to target the right listeners. The adveritsment broker gets information about the listeners from the Internet music stations and uses this information to match listeners with advertisements. In this way, listeners will be exposed to more relevant advertisements. Extend the model from a) to include this actor.

EXERCISE 2

Adam and Eve have built a new cottage. However, before they can move into their new home they must lay out a country garden. In some cases, Adam and Eve have different thoughts about how to plan their garden. Your task is to make a goal model for the garden planning. The model should include goals that if possible satisfy Adam’s as well as Eve’s wishes presented below:

1. Though a great deal of the ground is rocky they both wish to have a large sunny patio

2. Adam dreams about a great lawn, Eve on the other hand would like to have a large kitchen garden and a large rose garden

3. They also would like to have trees in their garden to cast shade on the lawn and on some parts of the patio.

4. Another dream that they have is that their garden should include either a pond or a waterfall

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However, they must also consider the following facts below when planning their garden:

1. They have limited means but since Eve’s father owns a garden center they hope to be able to but their plants, trees, etc. with discount

2. They have limited time to spend laying out their garden, but they have some neighbors that are senior citizens and who like something to do

3. Another matter that troubles Adam and Eve are that they are not allowed to blast away some of the rocks due to regulations

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L E S S O N 3 PROCESS MODELS

EXERCISE 1

A B

C

D

CONSIDER THE EXAMPLE “TWO TRAFFIC LIGHTS” FROM THE LECTURE. Furthermore, consider the figure above showing two roads, one large going north-south and one small going west-east, that cross each other. There are four traffic lights. The traffic light at A addresses traffic coming from south that wants to turn left. The traffic light at B addresses traffic coming from south and going north. The traffic light at C addresses traffic coming from north. The traffic light at D addresses traffic coming from the small road that wants to turn either south or north. Construct a Petri net for these four traffic lights. You should make realistic assumptions, e.g. if A is green than B should also be green, but C and D should be red.

EXERCISE 2

Consider the following recipe:

Salmon with mashed potatoes is made in the following way. The salmon is cut into small pieces and salt and pepper is added. Thereafter, the salmon is put into a refrigerator for 20 minutes. In parallel, the potatoes can be prepared. 5 kilos of potatoes are boiled on the furnace for 15 minutes.

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Thereafter, butter and salt is added and everything is mixed in a mixing machine for 2 minutes. Finally, the mashed potatoes is sprinkled around the salmon and put into an oven for 35 minutes.

Use a Petri net with time to model this recipe. Make sure that all resources are modelled, ingredients as well as kitchen machines.

EXERCISE 3

AN OFFICE CHAIR CONSISTS OF TWO PARTS, a bottom part and a top part. The bottom part consists of one bottom frame and four wheels. The top part consists of one top frame, one seat, one back, and two arm rests. An office chair is assembled in the following way. The bottom frame and the four wheels are assembled to produce the bottom part. Doing this requires one machine of type A and takes 20 minutes. Independently of this, the top part is assembled. The back is painted, which takes one hour and requires one machine of type B. The top frame, the seat, and the two arm rests are also assembled. This requires one machine of type B and takes 40 minutes. Finally, the back is added to the top part, which takes 15 minutes and one machine of type B. When both the bottom part and the top part are completed, they are assembled into a chair – 20 minutes and one machine of type A.

Model the assembly of the office chair by means of a Petri net.

EXERCISE 4

SOME CONFERENCES INVITE AUTHORS TO SUBMIT PAPERS. The following text specifies a possible procedure for managing the invitation and the paper submission.

The conference chair sends a personal invitation to a possible author. If the author answers in the affirmative within seven days, she will get an instruction message describing the submission procedure in detail. If the answer is negative, the author will get a polite acknowledgement message. The author should provide a full paper within 30 days of the instruction message. If the author has not submitted a paper before this deadline, she will get a notification. This notification will be repeated four times with two days between the notifications if there is no answer from the author. When the paper has been submitted, it is sent for a scientific review to a reviewer. The reviewer must answer within 10 days. If there is no answer from the reviewer, she will get exactly one notification. If the reviewer does not send in a review report within three days of the notification, the paper must be reviewed by another person. The conference chair selects another person and the paper is sent to this person with a request to review the paper within 3 days. If the new reviewer rejects the request or does not send a review on time, the procedure is repeated. There may be many failed repetitions, and if it turns out to be impossible to find a reviewer, the conference chair has to review the paper herself.

When the review has been completed, the conference chair will make a decision whether to accept the paper. If it is accepted, an acceptance letter is sent to the author, otherwise a rejection letter.

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Model this process by means of a Petri net. Specify triggers for all tasks. Note that the description is incomplete and make appropriate assumptions.

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L E S S O N 4 PROCESS ANALYSIS

EXERCISE 1

CONSTRUCT the reach ability graph for the Petri net below with initial state of one token in the place start. Is this a sound workflow net?

start endt1 t2c1

EXERCISE 2

FOR EACH OF THE FOLLOWING PETRI NETS:

- determine whether it is a sound workflow net

- if it is not a sound workflow net, redesign it into a sound workflow net keeping the intentions of the original net

(a)

produce

check

finish

redo

c1 c2

c3 c4

start

end

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(b)

produce

check

finish

redo

c1 c2

c3 c4

start

end

(c)

produce

check

finish

redo

report OK

report problem

start

end

c1 c2 c3

c4 c5 c6

(d)

produce

check

finish

report OK

report problem

start

end

c1 c2 c3

c4 c5 c6

c7

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(e)

checkpassenger

finish

startend

c1 c2 c3

c5 c6

c7c8

c4checkphysical check luggage

check passport check boardingcard

(f)

checkpassenger

finish

startend

c1 c2 c3

c5

c6

c7c8

c4checkphysical check luggage

check passport check boardingcard

c9

EXERCISE 3

CONSIDER THE WORKFLOW NET BELOW FOR A HAIR CUTTING PROCESS. First, the customer is washed, which takes 4 minutes on average. Then the hair is cut either by scissors or by machine. Scissors take 20 minutes on average, while machine takes 12 minutes on average. 70% of the customers are cut by machine, 30% by scissors. There is one resource for each task. A customer arrives on average every 12 minutes.

Compute resource utilisation, average cases in progress and system time for each resource. Compute average system time for the whole process.

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startend

scissors

machine

wash

EXERCISE 4

CONSIDER THE WORKFLOW NET BELOW FOR PAINTING FURNITURE DETAILS. First, two checks are made, check1 and check2. If both these checks are OK, then the detail is painted, otherwise it is discarded. The first check takes on average 10 minutes and 80% of the details pass this check. The second check takes on average 10 minutes and 90% of the details pass this check. Painting a detail takes 10 minutes on average. There is one resource for each task. On average, one case arrives per hour.

Compute resource utilisation, average cases in progress and system time for each resource. Compute average system time for the whole process.

Discuss at least two alternative ways of improving the performance of the process assuming that the two checks are independent. Compute performance indicators for these alternatives. How will changes in the initial values of the original process affect the improvement achieved by the alternative processes?

start end

paintcheck1 check2c1 c2

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x

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