Modeling and Simulation in Business Process Management Denis Gagné CEO, Trisotech, Canada. [email_address]

Abstract Practitioners in Business Process Management (BPM) know the critical importance of carefully leading organizations during periods of business transformation. While business modeling is progressively being addressed by various standards bodies, the use of simulation in this context is still generally underexploited. In this presentation, we explore ways in which simulation could be used to provide value in the context of business transformation and present some examples of current use of simulation in the specific context of business process management.

Practitioners in Business Process Management (BPM) know the critical importance of carefully leading organizations during periods of business transformation. While business modeling is progressively being addressed by various standards bodies, the use of simulation in this context is still generally underexploited. In this presentation, we explore ways in which simulation could be used to provide value in the context of business transformation and present some examples of current use of simulation in the specific context of business process management.

Speaker Denis Gagné CEO, Trisotech, Canada. M. Gagné is responsible for the solutions and technology vision at Trisotech. He has led Trisotech through the process of developing unique services and product propositions and provided leadership in plotting out Trisotech's market strategy. M. Gagné holds an M.Math. degree in Artificial Intelligence from the University of Waterloo and a B.Sc. in Computer Science (Systems) from the Collège Militaire Royal (CMR) de St-Jean. He is the author of over 25 scientific publications and numerous technical presentations and seminars in Artificial Intelligence, Simulation Training, and Business Process Management. His current research interest is in technological and know-how innovation in the fields of business process management and business transformation.

Denis Gagné

CEO, Trisotech, Canada.

M. Gagné is responsible for the solutions and technology vision at Trisotech. He has led Trisotech through the process of developing unique services and product propositions and provided leadership in plotting out Trisotech's market strategy. M. Gagné holds an M.Math. degree in Artificial Intelligence from the University of Waterloo and a B.Sc. in Computer Science (Systems) from the Collège Militaire Royal (CMR) de St-Jean. He is the author of over 25 scientific publications and numerous technical presentations and seminars in Artificial Intelligence, Simulation Training, and Business Process Management. His current research interest is in technological and know-how innovation in the fields of business process management and business transformation.

Who we are Established 1996 Private Cie Based in Montréal Software Consulting Business Process Management(BPM) Innovation, Experience & Expertise and Agility

Established 1996

Private Cie

Based in Montréal

At Trisotech

Business Process Modeling Why Business Modeling Business Modeling Disciplines Business Modeling Standards

Why Business Modeling

Business Modeling Disciplines

Business Modeling Standards

Why Business Modeling Communication between People Training & Learning Persuasion & Selling Analysis of a Business Situation Compliance Management Development of Software Requirements Knowledge Management & Reuse Direct Execution in a Software Engine Business Modeling: A Practical Guide to Realizing Business Value Bridgeland & Zahavi

Communication between People

Training & Learning

Persuasion & Selling

Analysis of a Business Situation

Compliance Management

Development of Software Requirements

Knowledge Management & Reuse

Direct Execution in a Software Engine

Business Modeling Disciplines Business Process Modeling Business Motivation Modeling Business Organizational Modeling Business Rule Modeling Business Event Modeling Business Entity Modeling

Business Process Modeling

Business Motivation Modeling

Business Organizational Modeling

Business Rule Modeling

Business Event Modeling

Business Entity Modeling

Some Business Modeling Standards OMG: Object Management Group BPMN: Business Process Modeling Notation BMM: Business Motivation Model BPMM: Business Process Maturity Model SBVR: Semantics of Business Vocabulary and Business Rules BPDM: Business Process Definition Metamodel PRR: Production Rule Representation Workflow Management Facility WfMC: Workflow Management Coalition XPDL: XML Process Definition Language Wf-XML: Extension to the OASIS Asynchronous Service Access Protocol.(ASAP) BPAF: Business Process Analytics Format OASIS: Organization for the Advancement of Structured Information Standards BPEL: Business Process Execution Language BPSS: ebXML Business Process Specification Schema … www.OMG.org/technology/documents/br_pm_spec_catalog.htm www.WfMC.org www.OASIS-Open.org/specs/

OMG: Object Management Group

BPMN: Business Process Modeling Notation

BMM: Business Motivation Model

BPMM: Business Process Maturity Model

SBVR: Semantics of Business Vocabulary and Business Rules

BPDM: Business Process Definition Metamodel

PRR: Production Rule Representation

Workflow Management Facility

WfMC: Workflow Management Coalition

XPDL: XML Process Definition Language

Wf-XML: Extension to the OASIS Asynchronous Service Access Protocol.(ASAP)

BPAF: Business Process Analytics Format

OASIS: Organization for the Advancement of Structured Information Standards

BPEL: Business Process Execution Language

BPSS: ebXML Business Process Specification Schema

…

Business Model Simulation Why Simulating Business Models Types of Simulation for Business Models BPM Simulation Examples BPM Numeric Simulation Caveats & Best Practices

Why Simulating Business Models

Types of Simulation for Business Models

BPM Simulation Examples

BPM Numeric Simulation Caveats & Best Practices

Why Simulating Business Models Advantages of simulation over testing on the real world include: speed low cost no disturbance of current operations Training & Learning Although very popular in support of operations, limited use in other Business Modeling disciplines Persuasion & Selling Simulating results of a proposed solution Cause and Effect simulation Analysis of a Business Situation Simulation complements static analysis techniques with a dynamic perspective Verification & Validation Validation: Are we doing the right “thing”? Verification: Are we doing “it” right?

Advantages of simulation over testing on the real world include:

speed

low cost

no disturbance of current operations

Training & Learning

Although very popular in support of operations, limited use in other Business Modeling disciplines

Persuasion & Selling

Simulating results of a proposed solution

Cause and Effect simulation

Analysis of a Business Situation

Simulation complements static analysis techniques with a dynamic perspective

Verification & Validation

Validation: Are we doing the right “thing”?

Verification: Are we doing “it” right?

Types of Simulation for Business Models Visual Depiction (Visualization & Animation) User is presented with a (sometime interactive) animated depiction of the business model Scenario Simulation (Role Play) User asked to take actions and make decisions within a simulated business environment Numeric Simulation (Discreet Events) User asked to provide values for input and decision parameters of a simulated business model

Visual Depiction (Visualization & Animation)

User is presented with a (sometime interactive) animated depiction of the business model

Scenario Simulation (Role Play)

User asked to take actions and make decisions within a simulated business environment

Numeric Simulation (Discreet Events)

User asked to provide values for input and decision parameters of a simulated business model

Visual Depiction - BPM Mostly used for: Teaching & Learning Verification & Validation Examples: Modeling patterns User is presented with an animation to better grasp sometime complex patterns Tracing a Business Process Model User follows the flow of process activities during simulation and validates its logic

Mostly used for:

Teaching & Learning

Verification & Validation

Examples:

Modeling patterns

User is presented with an animation to better grasp sometime complex patterns

Tracing a Business Process Model

User follows the flow of process activities during simulation and validates its logic

Workflow Patterns www.WorkflowPatterns.com

Scenario Simulation - BPM Mostly used for: Teaching & Learning Examples: Process Management IBM Inno8 Generic Capitalism often regarded as the first successful business simulation game Industry Specific (Hollywood) Mogul (Lemon Stand) Tycoon

Mostly used for:

Teaching & Learning

Examples:

Process Management

IBM Inno8

Generic

Capitalism

often regarded as the first successful business simulation game

Industry Specific

(Hollywood) Mogul

(Lemon Stand) Tycoon

Innov8 INNOV8 Academic Edition version 1.0 http://www-01.ibm.com/software/solutions/soa/innov8/index.html Online mini version available at: http://www-01.ibm.com/software/solutions/soa/innov8/innov8game.jsp

Numeric Simulation - BPM Mostly used for: Teaching & Learning Persuasion & Selling Analysis of a Business Situation Verification & Validation Examples: Process Management Cycle Time and Capacity Analysis V&V of Business Scenario (What if) Scenario : Activities, Resources,.. Engineering Product Requirements Manufacturing MRP, MRP II, ERP, APS Finance Risk Assessment / Adjustment Revenue Forecasting Economics Economic Context Forecasting …

Mostly used for:

Teaching & Learning

Persuasion & Selling

Analysis of a Business Situation

Verification & Validation

Examples:

Process Management

Cycle Time and Capacity Analysis

V&V of Business Scenario (What if)

Scenario : Activities, Resources,..

Engineering

Product Requirements

Manufacturing

MRP, MRP II, ERP, APS

Finance

Risk Assessment / Adjustment

Revenue Forecasting

Economics

Economic Context Forecasting

…

Workload Simulation Older Ilog JViews Demo www.ilog.com/promotions/ppc/visu/genbpm/

BPM Numeric Simulation Caveats Unrealistic User Expectations Simple Press-Button Simulation Deterministic behavior assumptions A Business Model is a Simulation Model ( not necessarily) Their goals (purposes) may be misaligned Be Mindful of Misleading Results (Garbage in Garbage Out) A simulation model that is fidel &valid fed with uncharacteristic data can lead to : Incorrect conclusions or predictions, Negative Training, … Sub-Optimization Partial or sub-model optimization can lead you astray

Unrealistic User Expectations

Simple Press-Button Simulation

Deterministic behavior assumptions

A Business Model is a Simulation Model ( not necessarily)

Their goals (purposes) may be misaligned

Be Mindful of Misleading Results (Garbage in Garbage Out)

A simulation model that is fidel &valid fed with uncharacteristic data can lead to : Incorrect conclusions or predictions, Negative Training, …

Sub-Optimization

Partial or sub-model optimization can lead you astray

BPM Numeric Simulation Best Practices The Right Expert for the Right Task Although conceptually simple to grasp, successfully (meaningfully) using numerical simulation for business modeling still requires some expertise (Advanced Mathematical Skills) The Right Model for the Right Goal Align Modeling Objectives with Simulation Objectives Abstraction Fidelity Validity (soundness and completeness) The Right Answer to the Right Question Make sure to instrument your business model with parameters that are actual indicators (influencers) of what you wish to explore

The Right Expert for the Right Task

Although conceptually simple to grasp, successfully (meaningfully) using numerical simulation for business modeling still requires some expertise (Advanced Mathematical Skills)

The Right Model for the Right Goal

Align Modeling Objectives with Simulation Objectives

Abstraction

Fidelity

Validity (soundness and completeness)

The Right Answer to the Right Question

Make sure to instrument your business model with parameters that are actual indicators (influencers) of what you wish to explore

State of Simulation in BPM There are no specific standards for Business Process Model Simulation Only XPDL can interchange some very limited simulation attributes Most Business Process Management Suites (BPMS) provide a simulation module, but of very variable value Very limited use of advanced mathematical simulation packages For a perspective on this see: www.brsilver.com/wordpress/2009/02/15/making-simulation-useful/

There are no specific standards for Business Process Model Simulation

Only XPDL can interchange some very limited simulation attributes

Most Business Process Management Suites (BPMS) provide a simulation module, but of very variable value

Very limited use of advanced mathematical simulation packages

Conclusions Take Away Further Readings

Take Away

Further Readings

Take Away Business Modeling and particularly Business Process Modeling is actively being addressed by various standard bodies, progressively leading to a more structured and accessible discipline. Business Simulation, and particularly Business Process Numeric Simulation, is a domain that requires more nurturing to become all it could be. Proceed with care! Get started!

Business Modeling and particularly Business Process Modeling is actively being addressed by various standard bodies, progressively leading to a more structured and accessible discipline.

Business Simulation, and particularly Business Process Numeric Simulation, is a domain that requires more nurturing to become all it could be.

Proceed with care!

Get started!

Further Readings Business Modeling: A Practical Guide to Realizing Business Value Bridgeland & Zahavi ISBN: 978-0123741516 Business Process Modeling, Simulation, and Design Laguna & Marklund ISBN: 978-0131099791 2009 BPM & Workflow Handbook Spotlight on BPM in Government Edited by Layna Fischer Published in association with WfMC ISBN: 978-0-9777527-9-9

This presentation is a available at: www.slideshare.net/dgagne www.Trisotech.com/BPM

www.slideshare.net/dgagne

www.Trisotech.com/BPM