Se Bos præsentation

IBM FSS Nordic

BMP IBM Vision Tools and Experience © 2003 IBM Corporation

Business Process Management IBM – Vision, Tools and Experience

5. December 2006Copenhagen, ITUBo Ebro Christensen, Executive IT Architect

IBM FSS Nordic

2 BMP IBM Vision Tools and Experience2 07-04-23 18:45

Topics

Classifications and definitions Business background Vision, goal, tools, and methodology Project samples – and experiences Challenges, future development

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Process Models

BPM

BPM Landscape – scope of discussion

IT Supported BPM

Models, Monitor

Workflow Centric BPM

Based on• Open Common Standards• Tools• Models

Models, Execution Engine, Monitor

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Business Process Management and Workflow

The term Business Process Management refers to activities performed by businesses to optimize and adapt their processes.

Although it can be said that organizations have always been using BPM, a new impetus based on the advent of software tools which allow for

direct execution of the business processes without a costly and time intensive development of the required software.

In addition, these tools can also monitor the execution of the business processes, providing managers of an organization with the means to analyze their performance and make changes to the original processes in real-time

BPM has a tight link to componentized and service oriented IT architecture

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BPM landscape - Workflow Classification

User Experience

Collaboration

Documentsand formsProcessing

Data and FunctionIntegration

DocumentCentric WF

systems

CollaborationBased

WF systems

Business ProcessManager

(BPEL Engine)

Departmentor single userWF systems

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6 BMP IBM Vision Tools and Experience6

Workflow – what is it ?

ServiceX

ServiceU

ServiceY

ServiceZ

Human Task A

Human Task D

Human Task F

Human Task B

Human Task C

Workflow

Invoke

Invoke Invoke Invoke

Workflows implement business processes

Workflow engine navigates the network of activities

Typically invoking automatic (service choreography) or manual activities

Mostly visual programming/modeling

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Cost Benefit

Benefit sample:Pilot project: 1 hour saved/process instance, 400 instances pr day400 H/day = 60 FTE

Process Management Project Cost

FI-1 FI-2

Customer

Eff

ort

(D

ays)

Infrastructure

Flow Development

Business Modeling

Implementing an enterprice wideBPM Infrastructure is a majorstrategic investment.

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Business benefits from the Process Oriented Approach

Process modeling - a new approach to application and service development – a radical change from traditional application development

Key benefits: Visibility & commonality of processes

Processes as the common ”language” between IT and business

Cost reduction through flexible automation – typically 20+%

Process optimization and streamlining across applications and the enterprise

Continuous, nondisruptive process improvement

Monitoring provides understanding of WHERE the employees spend their time

Base for new automation Faster implementation of changes in processes – typically 30+%

Optimizing skills usage in the business

Excellent match & synergy with SOA/ESB

BUT : Users think in ”Cases” – same person for the whole case – takes time to start thinking in processes / activities ”best man for the job”

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Modeling for Different Goals

Modeling For Compliance/Documentation Document processes for use by a business to understand the business

process

Customers use output for training, collaboration, documentation requirements for compliance regulations (Sarbanes-Oxley and Basel II)

Linkage to real-time monitoring provides a feedback mechanism for reporting requirements needed for compliance

Modeling For Redesign Document both the current state and future state business process and

the comparison to determine Return on Investment (ROI) analysis

Six Sigma and process improvement are common methodologies Modeling For Execution

Future state business process has runtime characteristics associated to it, so the model is passed to application, workflow and business process development tools.

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11 WebSphere Process Choreographer Practical Experience11 07-04-23 18:46

The Cycle of Business Process Management

Integrate

TransformManage

Monitor

Model

Establish process modeling methodology

Create the As-Is Process

Create the To-Be Process

Build business measures

Communicate and verify business process model

Simulate processes to verify model

Build the implementation model (BPEL)

• People

• Service

• Data

Integrate and connect implementations

Deploy

Monitor the Processes

IT and Business Perspective

Monitor Key Performance Indicators

Add corrective actions, automatic or manual

Feed the model for ‘as-is’ cycle initiation

Accelerate With Best Practice Models

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Business Process Management Programmes

CBMBusiness Modeler

Publish Server

WID(Eclipse)

Rational (RAD)(Eclipse)

WPSWebSpere Process Server

Business Monitor

Tooling:• Component Business Model (CBM) + Modeler: identify and define processes and scope of project• WID + Modeler: Specify workflow part of the process• Rational RAD: Define and implement services in the SOA• WebSphereProcessServer (WPS) – runtime – execute the workflow processes on a WAS server• Monitor – Follow up on KPI, SLA and process effieciency • WSRR – WebService Registry & Repository for stuff like WSDL, XSD, Processes

WebService Registry & Repository (WSRR)

(Eclipse)

The process of developing processes

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From Component Business Models to ServicesCompetency Based Retail Bank Component Map

Ins

igh

tIn

sig

ht

Risk &

Fin

an

cia

l R

isk & F

ina

nc

ial

Ma

na

gem

ent

Ma

na

gem

ent

DistributionDistribution

InfrastructureInfrastructure

ProcessingProcessing

ManufacturingManufacturing

ProductDirectory

ProductDevelopment& Deployment

Marketing

MarketResearch

CampaignExecution

ApplicationProcessing

CustomerPortfolio &Analysis

CreditManagement

CustomerProfile

Contact/EventHistory

Corresp-ondence

SmartRouting

Dialogue Handler

CustomerBehavior& Models

CaseHandling

Sales

Collections& Recovery

FinancialsConsolidation

Treasury

Service/Sales

Administration

Recon-ciliations

FinancialControl

OperationsAdministration

Securitization

InventoryManagement

RewardsManagement

FinancialCapture

PaymentsCustomerAccount

MerchantOperations

Billing

AuthorizationsProduct

Processing

HumanResource

Management

SystemsDevelopment & Administration

BusinessAnd Resource

Planning

Alliance &Authority

Management

BusinessPolicies &

Procedures

AllianceSLA

Administration

RiskManagement

Audit/Assurance/

Legal

AccountingGeneralLedger

BusinessArchitecture

AcquisitionPlanning Product

Management

CustomerAccounting

Policies

Production &Operations

ManagementCustomer

Servicing & salesPlanning

SegmentAnalysis &Planning

BusinessUnit

Tracking

Asset &Liability Policy

& Planning

Branch CashInventory

CustomerCredit

Administration

FinancePolicies

FacilitiesOperation &Maintenance

LocalBranch

Administration

BankTeller

Services

Wireroom(S.W.I.F.T.)

ProductionAssurance(Help Desk)

DocumentManagement

RetailLending

(Mortgages)

SecuritiesMarket

Analysis

Channel/Distribution

Management

MarketInformation

AdvertisingCampaigns

Applications

Deposits(DDA)

Statements

AcquisitionAdministration

ConfirmationsContract Notes

ConsolidatedBook/PositionMaintenance

ServicingManagement

RetailPortfolio

Administration

FundManagement

ProductTracking

CustodyAdministration

CustomerContactHandler

RelationshipManagement

Settlements Valuations

CollateralHandling

RetailSecurities

PortfolioTrading

Trading(Back Office)

Trading(Front Office)

OTCServices

Self-serviceChannel

(ATM, Web)

In-boundCall Center

FixedAsset

Register

LoanSyndication

BranchNetwork

Operations

Produkt-valg

Behovs-analyse

Kundeanalyse

BeslutEfekt-

uer Forvalt

EvaluerKunde

Udfør plan

Kredit-plan

StartSag

UdførSag

Udfas Sag

............ ........................ ........................ ........................ ............

Division

SharedService

Customer

Supplier

Outsourced

To services

From components

To services

To Services

Processes

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Danske Bank Process Management Project

2000 2001 2002 2003

SOAdecided

SOA in production

Workflowin

production

Process Choreographer

decided

Handling bad debts

ProcessesImplemented: 200+

2004 2005 2006

Processes pr day

10000

CustomerPackages

DebtCollection

Sales Counselling

(8000 employees)

Direct Customer product Ordering

Retirementengagements

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FI-1 Process Management Project

2000 2001 2002 2003 2004 2005 2006

SOA

Process

Methodology

Modeler

Monitor ?

Approach: Step by step, each step takes 2 years.Goal: Implement processes as workflow as part of new developmentProcesess: Approx 200Governance: Not much needed

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The traditional IT development process – AS-ISBusiness IT

This iswhat I want

This iswhat I’ll get

RequirementAnalysis

breakdownrequirements

• round• hollow• air inside• elongated. Length> height

Design torequirements• round• with a hole• air inside• width > height

Disjoint, Slow

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The traditional IT development process TO-BE

Business IT

This is the processI want implemented

OK, come backand test in 3 weeks

Fast, solution oriented

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FI-2 Process Management Project

2005 2006 2007 2008 2009 2010 2011

SOA IBM Broker

Process (WID/WPS)

SOA/Process Methodology

Modeling QLM/Modeler

Monitor ?

Process (non-IBM)

Portal (WebSphere)

Document Management /Journaling (IBM CM)

Shift of platform / batch in J2EE

Approach: Full blast on all projectsGoal: Total replacement of core systems, applications and platformProcesses: Several hundredGovernance: Highly needed

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SOA

Workflow ManagementAPI

Overall Runtime Architecture - implementing the infrastructure

End User Interface (Portal)

Staff Resolution Work Item Mgr

WorkflowEngine

Workflow Management Business Applications

End User Interface

ApplicationServices

Infrastructure Support

DocumentManager

User Registry

ArchiveManagement

InformationWareHouse

Monitor

Case ServiceObj reference

23

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BMP IBM Vision Tools and Experience

Overall Runtime Architecture

Human Task

Process

Human Task

Human Task

Human Task

Human Task

Human Task

Human Task

Human Task

Organization And Roles

Invoke Invoke Invoke Invoke Invoke Invoke Invoke Invoke

Application Core System

Application Document Management

Application Accounting

Application Core Systrem

SOA – Enterprice Service Bus

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BPC and SOA – an excellent match

1. BPEL processes invoke services defined by a WSDL file

2. Get the WSDL from your repository (UDDI, WSRR or home grown)

3. Drag&Drop WSDL file to create:1. Invoke activity

2. With defined input

3. And defined output

4. And error handling

BPEL Process Editor ”standard edition” available as open source

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Whats new with this kind of modeling ?

Menu:ABCDEF

ServiceA

ServiceB

ServiceC

ServiceD

ServiceE

ServiceF

A

B

C

D

E

F

Traditional applications canbe modeled

But it is not efficient !

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Menu based case processing can easily be modelled

Menu:ABCDEF

ServiceA

ServiceB

ServiceC

ServiceD

ServiceE

ServiceF

• Process state is in the head of the user• Usually same user for all activities (inflexible)• No specialization (”Do what you do best”)• User must understand process (skills)• Business rules in the head of the user (skills)• Business rules harder to change (efficiency)• Error handling is left to the user (skills)• Automation usually not done (requires context)

Human workflow engine....

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Workflow solution

ServiceA

ServiceB

ServiceC

ServiceD

ServiceE

ServiceF

Staff A

Staff E

Staff D

Staff F

Staff B

Staff CIf Amount >100000

Workflow

Supervisor Clerk

• The workflow keeps the welldefined state and does the navigation• Specialization possible using allocation rules (staff queries)• Free navigation (choice) where possible (B and C)

Do both in any sequence

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Workflow solution

ServiceA

ServiceB

ServiceC

ServiceD

ServiceE

ServiceF

Staff A

Staff D

Staff F

Staff B

Staff CIf Amount >100000

Workflow

Supervisor

• Automation possible• Process optimization (change business rules) is done in the flow

• Business Rules Engine in V6• Errors due to wrong navigation are reduced• Error handling can be build into the flow

Do both in any sequence

Invoke

If Amount >200000

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Key Features

We have had workflow technology for years – so what’s new?

Customers are very focused on business processes and the process oriented approach right now

Based on standard WebSphere run-time – no new run-time platform required – no proprietary run-time

Based on Eclipse – no new development platform required Based on Open Standards (IBM, Microsoft, BEA, ++) Excellent fit with SOA, emerging WebServices standards while still

supporting existing integration requirements (CICS, IMS,++) Process Choreographer is an excellent product – taking the best

from MQWF, WICS and other workflow products from the last 15 years

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BPM landscape - future direction

User Experience


(BPEL Engine)

Collaboration Documentsand formsProcessing

Extending BPEL with additional model elements


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BPM landscape - future direction – extending the BPEL Model

User Experience


(BPEL Engine)

Collaboration Documentsand formsProcessing

Extending BPEL with additional model elements

II4BPEL

Work-placeForms

Page-flows

GUI Genera

-tors

SinglePersonFlows

BPEL is inherently extensible

BPEL4People

Follow-on &

Subtask


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BPM landscape - software products versus customer patterns

Customer 4 Customer 2

Customer 3

Customer 1

IBM BPMProduct Scope

Best PracticePatterns




Not one size fits all• Local model extensions provideagile, customized ”best practice”

Example: Validation Eclipse plug-inflags violation to customer standards

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Summary

Business Process Management provides huge potential for savings SOA naturally leads to a BPM Approach Open Standards is the base for future development Models are everywhere – and converging towards common models, e.g:

Component Business Model

Business Modeler high level models (XMI) for

Visualization Simulation Documentation, agreement

Business Measures Models + (organization, strategy, goal,...models)

Business Process Models for execution (BPEL + IBM extensions) Always a need to add model extensions to standards

IBM extensions and customer extensions

”Fill the gap” models

Validation of ”Best Practice” tools

Way to keep the BPM software agile

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Closing

Quote:”Vision without Action – is just day dreaming.Action without Vision – is just passing time. Vision with Action can change the world” (Joel Barker)

Models without execution – is interesting...but Combining modeling and execution capabilities brings us to a new

level of application development and automation

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Thank you

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