IIR EA Conference: What Every Enterprise Architect Needs To Understand About BPM and Workflow
1. What every Enterprise Architect Needs to
Understand about BPM and Workflow
Michael zur Muehlen, Ph.D.
Center of Excellence in Business Process Innovation
Howe School of Technology Management
Stevens Institute of Technology
Hoboken NJ
Michael.zurMuehlen@stevens.edu
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8. What is BPM?
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
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9. 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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10. Scheduled Project Time during
First BPM Project
Business Case
Project Team Selection
Process Discovery
Documentation
Functional and Technical Specification
Tools Evaluation and Selection
Implementation
Testing and Debugging
Deployment and Training
Source: BPTrends (2006)
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12. Coffee Lover
Put Boiling Water
Boil Water Put Coffee in Cup
in Cup
Thirsty Coffee is Ready
The Nescafè Process
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13. Water is cold
no
Kettle
empty? Boil Water
yes
Fill Kettle
Coffee Lover
Put Boiling
Water in Cup
Thirsty Coffee is Ready
No
Put Coffee in
Cup dirty? Cup
Dishwasher
Yes
Clean Cup
The Espresso Machine Process
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14. The Starbucks Process
Hand Coffee
Make Coffee
To Customer
Done
Barrista
Order
cancelled Discard Coffee
Coffee Shop
Insufficient Payment
Cashier
Take Order + Collect
Payment
Coffee
Store Open Done
Order Payment
Household
Go To Coffee
Order Coffee Pay for Coffee Take Coffee
Shop
Thirsty Done
> 5 min wait Leave
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15. BPM Questions
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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16. Business Process Innovation Business Process Management
Business Process Monitoring Business Process Automation
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17. Business Process Innovation Business Process Management
Manage Change
Manage Execution
Business Process Monitoring Business Process Automation
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18. Business Process Innovation Business Process Management
Notation
Standard
Integration
Standards
Audit
Standards
Interaction
Standard
Standards
Metrics
Business Process Monitoring Business Process Automation
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20. From Core to Commodity
Treat the process as a service
Define a standard interface
Think about creating value outside
and at the front-end
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21. 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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22. Underwriting On Demand
Text2Insure: 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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24. BT Process Hierarchy
Level A
Business Activities Business Activities Objectives Scorecard Strategic
Process
Level B Description
Process Groupings Process Groupings Ownership Services
Level C
Core Processes Tactical
Core processes Delivery Units Products
Process
Level D Description
Business Process Flows
Processes Delivery Teams Systems
Level E
Operational Process Flows
Operational
Sub Processes Roles System Functions
Process
Level F Description
Detailed Process Flows
Detailed Processes Detailed Roles Transactions
Source: British Telecommunications plc 2006
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25. BT Process Hierarchy
Level A
Business Activities Business Activities Objectives Scorecard Strategic
Process
Level B
Process Groupings WHAT
Process Groupings Ownership Services
Description
Level C
Core Processes Tactical
Core processes Delivery Units Products
Process
Level D Description
Business Process Flows
Processes Delivery Teams Systems
Level E
Operational Process Flows
Sub Processes
HOW Roles System Functions
Operational
Process
Level F Description
Detailed Process Flows
Detailed Processes Detailed Roles Transactions
Source: British Telecommunications plc 2006
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26. Top-Down Strategy
Level A
Business Activities Business Activities
Strategy
Objectives Scorecard Strategic
Process
Level B Description
Top-Down Project
Process Groupings Process Groupings Ownership Services
Level C
Core Processes Tactical
Core processes Delivery Units Products
Process
Level D Description
Business Process Flows
Processes Delivery Teams Systems
Level E
Operational Process Flows
Operational
Sub Processes Roles System Functions
Process
Level F Description
Detailed Process Flows BPM Application
Detailed Processes Detailed Roles Transactions
Source: British Telecommunications plc 2006
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27. Process Framework: Fortune 100
Methods Enterprise Process Architecture Organization
Level
concept Roles &
Responsi-
Convention
bilities
handbook
Modeling Process
handbook Owners
Corporate Process
Modeling Managers
Service
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28. Architecture Contents
Glossary 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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29. Process Framework Benefits
Save 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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31. All IT is Initially an Expense
Information
Technology
en
ab
les
X Business
Value
s
te
ea
cr
Process
Change
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32. 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.”
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33. No BPM =
Monolithic Enterprise Application
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...
User Interface
list new update delete
Accts Acct Acct Acct
Program and Logic Enterprise Application
“Account Management”
Internal Protocols
are Proprietary C, C++, Visual Basic, Etc.
34. BPM 1990: Workflow in the Brain
UI
“Screens”
Conformance Guidelines list new update delete
Accts Acct Acct Acct
Background Check
Application
Logic in Enterprise Application
“Account Management”
Monolithic
Program
35. BPM 1993: Task Management
Human BPM/Workflow:
background check create
check guidelines account
Launches User accesses
UI original UI directly
UI
“Screens”
Conformance Guidelines list new update delete
Accts Acct Acct Acct
Background Check
Application
Logic in Enterprise Application
“Account Management”
Monolithic
Program
36. BPM 1996: Workflow Routing
Human BPM/Workflow:
background check create
check guidelines account
Launches User accesses
UI original UI directly
UI
“Screens”
Conformance Guidelines list new update delete
Accts Acct Acct Acct
Background Check
Application
Logic in Enterprise Application
“Account Management”
Monolithic
Program
37. BPM 2002: Services Integration
UI connects user
to BPMS, not the back-end
applications
Enter backgr. rules create
Review
Information check check account
Services
Interfaces Conformance Rules
list new update delete
Background Check
Accts Acct Acct Acct
Application
Enterprise Application
Logic and
“Account Management”
SOA
38. BPM 2007: Composite Services
Enter Create
Check Review
Information account
Composite
ESB/BPEL
Service list new update delete
Accts Acct Acct Acct
Enterprise Application
Background
New Rules
Application “Account Management”
Check
Logic and
SOA
39. BPM 2007: Composite Services
Enter Create
Check Review
Information account
Composite
ESB/BPEL
Services
list new update delete
Background
Accts Acct Acct Acct
Application
Check
Rules
Logic and
SOA Enterprise Application
“Account Management”
40. BPM 2007: Composite Services
Enter Create
Check Review
Information account
Composite
ESB/BPEL
Services
list new update delete
Background
New Rules
Accts Acct Acct Acct
Application
Check
Logic and
SOA Enterprise Application
“Account Management”
41. BPM 2007: Composite Services
Enter Create
Check Review
Information account
Composite
ESB/BPEL
Services
list new update delete
Background
New Rules
Accts Acct Acct Acct
Application
Check
Logic and
SOA Enterprise Application
“Account Management”
42. BPM 2007: Composite Services
Enter Extra Create
Check Review
Information Audit account
Composite
ESB/BPEL
Services
list new update delete
Background
New Rules
Accts Acct Acct Acct
Application
Check
Logic and
SOA Enterprise Application
“Account Management”
43. Separation of Responsibility
Business Retains Control of
Assignment of Responsibility
Groups, Roles, Skills
Deadlines
Alerts, Reminders, Escalations
Order of Tasks
Addition of Manual Tasks
User Interface
Enter Create
Check Review
Information account
IT Retains Control of
ESB/BPEL
Computational Logic list new update delete
Data Representations Accts Acct Acct Acct
Scalability / Performance
Enterprise Application
Interoperability Background
New Rules
“Account Management”
Check
Master Data Management
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45. The Workflow Reference Model
Process
Definition Tools
Interface 1 Process Definition Import/
Export
Interface 5 Other Workflow
Workflow Enactment Service
Enactment Service(s)
Administration & Monitoring
Tools
Workflow
Engine(s) Workflow
Engine(s)
Interface 2 Interface 3 Interface 4
- Interoperability
Tool Agent
Client Worklist
Apps Handler
Invoked
Applications
see: www.wfmc.org/standards/docs/tc003v11.pdf
46. The Workflow Reference Model
BPMN
Process
Definition Tools
XPDL
Interface 1 Process Definition Import/
Export
Interface 5 Other Workflow
Workflow Enactment Service
Enactment Service(s)
Administration & Monitoring
Tools
Workflow Wf-XML
BPEL
Engine(s) Workflow
Engine(s)
Interface 2 Interface 3 Interface 4
- Interoperability
SOAP
Tool Agent
Client Worklist
Apps Handler
Invoked Typically
Applications
Web Services
see: www.wfmc.org/standards/docs/tc003v11.pdf
47. + Pool, Lane, Grouping,
Annotation, Transaction
Boundary...
BPMN 1.0 offers 50 constructs
BPMN 1.1 will add more...
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48. 0
30
60
90
120
Normal Flow
Task
End Event
Start Event / Event
Pool
Data-Based XOR
Start Message
Message Flow
Text Annotation
Parallel Fork/Join
Gateway
Lanes
Sub-Process (Collapsed)
Association
Data Object
Intermediate Timer
End Terminate
Intermediate Message
Sub-Process (Expanded)
End Link
Default Flow
Inclusive Decision/Merge
Activity Looping
'exception' task
End Message
Start Link
Few of them are used...
End Exception
Complex Decision/Merge
Event-Based XOR
Group
Multiple Instance
Intermediate Event
Transaction
Compensation
Conditional Flow
End Cancel
Exception Flow
Intermediate Compensation
Source: Sample of
120 BPMN models
Intermediate Link
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Start Timer
End Compensation
49. Few of them are used...
120
30
60
90
0
Normal Flow
Task
End Event
Start Event / Event
Pool
Data-Based XOR
Start Message
Message Flow
Text Annotation
Parallel Fork/Join
Gateway 41
Lanes
50. 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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51. BPEL – Execution Language
BPEL is an “executable” language
Includes only executable operations
Does not contain the graphical diagram
Many Engines have proprietary formats
They 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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52. Process Design Ecosystem
Modeling Vendor A
Tools
Optimization Simulation
Tools Tools
Process
Vendor C Repository
Design Design
Tool Tool
BPEL BPEL
or B
or some or some
Ven
engine engine
specific specific
Vend
d
format format
or D
ASAP
Execution Execution
Engine Wf-XML
Engine
56. Product Product Product Product Product
Line 1 Line 2 Line 3 Line 4 Line 5
Process
Group 1 Process
Manager
Process
Group 2 Process
Manager
Process
Group 3 Process
Manager
Process
Group 4 Process
Manager
Process
Group 5 Process
Manager
Leveraging Vertical and
Horizontal Expertise
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Compare Sainsbury (2006)
58. Focus Role Objective Level
Corp. Region Division
Process Sponsor Facilitate & Drive
Strategic Process Framework Method & Compatibility
Executive
Process Executive Standardize & Optimize
Process Owner Process Performance
Management
Operational
Process Manager Implement & Optimize
(recommended)
Process DB Manager Responsible for ARIS
Shared
Service
Process Modeler Modeling Processes
BPM Roles - Example
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59. The BPM Maturity Model
Business Process Management
Maturity
Strategic Governance Method IT People Culture
Alignment
Process Process Roles and Process Design & Process Design & Process Skills & Process Values &
Improvement Plan Responsibilities Modeling Modeling Expertise Beliefs
Strategy & Process Decision Making Process Process Process Education Process Attitudes &
Capability Linkage Implementation & Implementation &
Processes Executions Executions & Learning Behaviors
Process Process Metrics & Process Control & Process Control & Process Responsiveness to
Architecture Performance Collaboration &
Linkage Measurement Measurement Communication Process Change
Process Output Process Process Process Process Leadership
Measurement Management Improvement & Improvement & Attention to
Standards Innovation Innovation Knowledge Process
Process Customers Process Process Project & Process Project & Process Process Social
Management Program Program Management
& Stakeholders Controls Management Management Leaders Networks
Source: Rosemann & DeBruin 2006
60. Agile BPM Maturity
Satisfying 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
Modeling Tool Extended use of Tool
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61. Choosing the Right Strategy
There 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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67. Takeaways
The Core becomes Commodity
Frameworks Save Time
Understand Your Standards Stack
Agility Means Different Things to
Different People
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68. Thank You – Questions?
Michael zur Muehlen, Ph.D.
Center of Excellence in Business Process Innovation
Howe School of Technology Management
Stevens Institute of Technology
Castle Point on the Hudson
Hoboken, NJ 07030
Phone:
+1 (201) 216-8293
Fax:
+1 (201) 216-5385
E-mail:
mzurmuehlen@stevens.edu
Web:
http://www.cebpi.org
slides: www.slideshare.net/mzurmuehlen
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