Business Process Management Standards Tutorial

Slide 1: 1 Business Process Management Standards Origin, Overview, and Directions 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 1 BPM Standards Tutorial © 2007 Michael zur Muehlen. All Rights Reserved.

Slide 2: Stevens Institute of Technology • Private university, founded 1870 • 1800 undergraduate, 2600 graduate students • Located in Hoboken, NJ (across the Hudson from Manhattan) • Three Schools • Technology Management • Engineering • Arts & Sciences • Rankings: • Top 5 technology management program, on par with Stanford, MIT, CMU, Babson (Optimize Magazine) • #1 for best distance learning program (Princeton Review) • Top 25 for most connected Campus (Sloan Foundation) • http://www.stevens.edu 2

Slide 3: Howe School of Technology Management • Offers MBA in Technology Management, Master of Science (IS, Telecom Mgmt, Mgmt, EMTM), Bachelor’s Degree (Business & Technology) • Programs taught on campus and off-site in corporate locations • Clients: ADP, Avaya, BASF, Bristol-Myers Squibb, Chubb, Citigroup, Deutsche Bank, J&J, Lockheed, Merrill Lynch, PaineWebber, Pearson, Prudential, PSE&G, UBS, UPS, Verizon and others • Research centers with focus on • Process Management • Project Management • Product Innovation • http://howe.stevens.edu 3

Slide 4: Agenda • Background • Standardization Venues • Current Standardization Efforts • Industry Directions • Research Around Standards 4 BPM Standards Tutorial © 2007 Michael zur Muehlen. All Rights Reserved.

Slide 5: Background • Web Services/SOA idea: Plug & Play applications on top of a standardized infrastructure • Impact of Standards is potentially large • Standards making is risky: Choosing the wrong technology may be counterproductive, incompatible, and lead to lack of adoption • Standards adoption is risky: Choosing the wrong standard may obstruct technology upgrade paths, limit business partner connectivity, and force resource training in (obsolete) technology  Lack of understanding how the standardization process really works 5 BPM Standards Tutorial © 2007 Michael zur Muehlen. All Rights Reserved.

Slide 6: What’s in a Standard? Technical Standard: Agreed upon specification for a way of communicating or performing actions. Internet Standard: Protocols through which people and programs interact over the Internet. • Built on top of TCP/IP, and mostly HTTP • Use of Internet Standards is discretionary: • For developers: Direct choice of which standard to implement • For customers: Indirect choice of which standards-compliant product to use  User’s vote with their feet, developers with their hands 6 BPM Standards Tutorial © 2007 Michael zur Muehlen. All Rights Reserved.

Slide 8: Inception Phase Inception Development Ratification Adoption Diffusion • Who initiates standards? • Government-sanctioned standardization (e.g. COSO / SOX) • User-initiated standardization (typically vertical) • Vendor-initiated standardization (often horizontal) • Developer-initiated standardization (e.g. first IETF RFPs) • When does a specification emerge? • Industry practice: Develop 80% of specification outside, then submit • Rare: Define charter, then seek out ideas • Unsolicited (IETF) vs. solicited (OMG) specifications 8 BPM Standards Tutorial © 2007 Michael zur Muehlen. All Rights Reserved.

Slide 9: Development Phase Inception Development Ratification Adoption Diffusion • Rules of the organization • Strict procedural and voting rules • Loose cooperation • Virtual vs. physical meetings • Outside input • Openly available drafts vs. closed sessions • Invited experts • Other standards groups • Implementation before ratification 9 BPM Standards Tutorial © 2007 Michael zur Muehlen. All Rights Reserved.

Slide 10: Ratification Phase Inception Development Ratification Adoption Diffusion • Votes • Microsoft OOXML case • Participating vs. voting organizations • Role of the advisory board/steering committee • Form of the specification • Recommendation • Request for Comments • Standard • Validity of the specification 10 BPM Standards Tutorial © 2007 Michael zur Muehlen. All Rights Reserved.

Slide 11: Adoption Phase Inception Development Ratification Adoption Diffusion • Adoption by submitters • Adoption by other companies • Adoption by open source community • Mandatory vs. recommended standards • Check-list compliance vs. usable implementation 11 BPM Standards Tutorial © 2007 Michael zur Muehlen. All Rights Reserved.

Slide 12: Diffusion Phase Inception Development Ratification Adoption Diffusion • Use of standards-compliant products by end users • Presence in the market place • “Management by Magazine” 12 BPM Standards Tutorial © 2007 Michael zur Muehlen. All Rights Reserved.

Slide 13: BPM Standardization • 1995 • 1 standardization group for workflow • Reference model + 5 interface standards • Size of the average specification ~40 pages • 2007 • 10+ working groups with interest in BPM • 7+ standards for process models alone • Size of the average specification ~150 pages 13 BPM Standards Tutorial © 2007 Michael zur Muehlen. All Rights Reserved.

Slide 14: World Views - OMG • OMG: Model-driven Architecture • Goal: Specify applications starting with a model of the business context, generate running code from the models • Components in place: OMA, UML, CORBA • Next step: Business Process Definition Meta Model • BPM Experience: CORBA Workflow Facility, BPMN, BPDM 14 BPM Standards Tutorial © 2007 Michael zur Muehlen. All Rights Reserved.

Slide 15: World Views - W3C • W3C: Web Architecture • Goal: Provide protocol stack for application integration over TCP/IP and HTTP • Components in place: SOAP, WSDL, XML • Next step: Web Services Choreography • BPM Experience: none 15 BPM Standards Tutorial © 2007 Michael zur Muehlen. All Rights Reserved.

Slide 16: World Views - OASIS • OASIS: XML-centric standards • Goal: Provide transparent venue for standards that can be used by both vertical and horizontal interest groups • Components in place: ebXML, BPEL • Next step: updated ebXML components, ASAP, WS Resource Model • BPM Experience: workgr oup-specific 16 BPM Standards Tutorial © 2007 Michael zur Muehlen. All Rights Reserved.

Slide 17: World Views - WfMC • WfMC: Life-Cycle View of BPM • Goal: Provide integration standards for different phases of the BPM lifecycle • Components in place: Reference model, XPDL, Wf-XML • Next step: Evolve XPDL • BPM Experience: “Grandfathers” of BPM 17 BPM Standards Tutorial © 2007 Michael zur Muehlen. All Rights Reserved.

Slide 18: Origins: WfMC • Black Forest Group Charter • First meetings in 1993 • Driven by IBM, FileNet, Staffware • Reference Model • Glossary • Interface Specifications 18 BPM Standards Tutorial © 2007 Michael zur Muehlen. All Rights Reserved.

Slide 19: Business Process Innovation Business Process Management Notation Standard Integration Standards Audit Standards Interaction Standard Standards Metrics Business Process Monitoring Business Process Automation 19 BPM Standards Tutorial © 2007 Michael zur Muehlen. All Rights Reserved.

Slide 20: The Workflow Reference Model BPMN Process Definition Tools XPDL Process Definition Interface 1 Import/Export Interface 5 Other Workflow Workflow Enactment Service Enactment Service(s) Administration & Monitoring Wf-XML Tools Workflow BPEL Workflow Engine(s) Engine(s) Interface 4 Interface 2 Interface 3 Interoperability SOAP Tool Agent Client Worklist Apps Handler Typically Invoked Web Services Applications see: www.wfmc.org/standards/docs/tc003v11.pdf 20 BPM Standards Tutorial © 2007 Michael zur Muehlen. All Rights Reserved.

Slide 21: Process Design Ecosystem Vendor A Modeling Tools Simulation Optimization Tools Tools Process Vendor C Repository Design Design Tool Tool BPEL BPEL or B or some or some Ven engine engine specific specific Vend dor format format D Execution Execution ASAP Engine Engine Wf-XML 21 BPM Standards Tutorial © 2007 Michael zur Muehlen. All Rights Reserved.

Slide 23: BPMN 1.1 • Mainly cosmetic changes • New symbol for Multiple Event and Gateway (used to be star, now pentagram) • New Signal Event • Separation of “catching” and “throwing” events 23

Slide 26: Business Process Definition Metamodel (BPDM) • Designed to supplement BPMN with a formal metamodel of its modeling constructs • BPMN 1.0 did not contain a formal metamodel specification • OMG mindset of MDA is based on multiple levels of metamodels • BPDM replaces efforts to create a UML profile for BPMN • BPDM contains more constructs than BPMN 1.0/1.1 • Mapping to MOF and XMI • Envisioned to become persistency format for BPMN • BPMN 2.0 = BPMN + BPDM + possibly other notations • There may be a UML profile for BPDM 26 BPM Standards Tutorial © 2007 Michael zur Muehlen. All Rights Reserved.

Slide 27: SBVR • Semantics of Business, Vocabulary and Rules • Formally defined taxonomy to describe elementary business operations and rules • Metamodel expressed in UML • Business-level specification aims at enterprises to formally express their operations 27 BPM Standards Tutorial © 2007 Michael zur Muehlen. All Rights Reserved.

Slide 29: 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 • Support in the Open Source Community 29 BPM Standards Tutorial © 2007 Michael zur Muehlen. All Rights Reserved.

Slide 30: 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 30 BPM Standards Tutorial © 2007 Michael zur Muehlen. All Rights Reserved.

Slide 33: ebXML Business Process (ebBP) • Also known as ebXML Business Process Specification Schema(BPSS) • V 2.0.4 released in December 2006 • Complements ebXML document definitions, Collaboration Partner Protocols, and Collaboration Partner Agreements 33 BPM Standards Tutorial © 2007 Michael zur Muehlen. All Rights Reserved.

Slide 37: Wf-XML • Interoperability Sematics for Cross-System Business Processes • Successor to Simple Workflow Access Protocol (SWAP) • Based on Asynchronous Service Access Protocol (ASAP) • REST-style Interaction with externally hosted processes (Wf-XML) or long-running services (ASAP) 37 BPM Standards Tutorial © 2007 Michael zur Muehlen. All Rights Reserved.

Slide 38: What is Work? • Consider a process where three activities need to be performed. Request • Purchase But… • The workflow system does not do the work! It only Approval coordinates the work of others. • Initiate And.. Purchase • The workflow system did not initiate the process, it is merely performing in response 38 BPM Standards Tutorial © 2007 Michael zur Muehlen. All Rights Reserved.

Slide 40: Processes as Services BPMS • The BPMS acts as an intermediary • Complete process can be controlled through standardized interfaces • Process can control activities through standardized interfaces 40 BPM Standards Tutorial © 2007 Michael zur Muehlen. All Rights Reserved.

Slide 43: Production Rule Representation • Exchange format for Business Rules (Production Rules) • Defined by Fair Isaac & Co and ILOG • Current revision submitted 09/03/2007 • PRR Core defines basic metamodel • PRR OCL defines conditions and actions 43 BPM Standards Tutorial © 2007 Michael zur Muehlen. All Rights Reserved.

Slide 45: Business Motivation Metamodel • Taxonomy to specify goals and objectives of organizational activities and structures • Targeted at business users rather than technical personnel • Provides a vocabulary around goals, means, ends, influencers and related concepts • Intention: To clarify the reasons underlying organizational design decisions • Status: OMG Adopted Specification (dtc/2006-07-01) 45 BPM Standards Tutorial © 2007 Michael zur Muehlen. All Rights Reserved.

Slide 48: Standards should be discovered, not invented Vincent Cerf, in: Haffer, Lyon: “Where the Wizards stay up late”, 1998 p. 254 48 BPM Standards Tutorial © 2007 Michael zur Muehlen. All Rights Reserved.

Slide 49: Complexity Group Standard Year Version Pages W3C WSCL 2002 1.0 22 DAMLSC DAML-S 2002 0.9 26 W3C WSDL 2002 1.2 30 NIST PSL 1998 0.98 32 OASIS ASAP 2003 0.1 34 WfMC Wf-XML 2002 1.1 57 W3C XML 2000 1.0 59 IETF HTTP 1996 1.0 60 IETF FTP 1980 1.0 70 IETF HTML 1995 2.0 70 WfMC XPDL 2003 1.0 87 OMG Wf-Facility 1997 1.0 95 BPMI BPML 2002 1.0 103 IBM WSFL 2001 1.0 108 W3C SOAP 2003 1.2 128 OASIS BPEL 2003 1.1 136 OASIS BPSS 2001 1.01 136 RosettaNet RN Implementation Framework 2002 2.00.01 143 ISO SGML 1986 1.0 155 IETF HTTP 1999 1.1 176 OASIS BTP 2002 1.0 188 OMG UML 2003 1.5 736 49 BPM Standards Tutorial © 2007 Michael zur Muehlen. All Rights Reserved.

Slide 50: 2 BPM and SOA Standardization 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 50 BPM Standards Tutorial © 2007 Michael zur Muehlen. All Rights Reserved.

Slide 51: 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 Enterprise Application Program and Logic “Account Management” Internal Protocols are Proprietary C, C++, Visual Basic, Etc. Swenson (2007) 51 BPM Standards Tutorial © 2007 Michael zur Muehlen. All Rights Reserved.

Slide 52: BPM 1990: Workflow in the Brain UI “Screens” list new update delete Conformance Guidelines Conformance Guidelines Accts Acct Acct Acct Background Check Background Check Application Enterprise Application Logic in “Account Management” Monolithic Program Swenson (2007) 52 BPM Standards Tutorial © 2007 Michael zur Muehlen. All Rights Reserved.

Slide 53: BPM 1993: Task Management Human BPM/Workflow: check background create guidelines check account User accesses Launches original UI directly UI UI “Screens” list new update delete Conformance Guidelines Conformance Guidelines Accts Acct Acct Acct Background Check Background Check Application Enterprise Application Logic in “Account Management” Monolithic Program Swenson (2007) 53 BPM Standards Tutorial © 2007 Michael zur Muehlen. All Rights Reserved.

Slide 54: BPM 1996: Workflow Routing Human BPM/Workflow: check background create guidelines check account Launches User accesses UI original UI directly UI “Screens” list new update delete Conformance Guidelines Conformance Guidelines Accts Acct Acct Acct Background Check Background Check Application Enterprise Application Logic in “Account Management” Monolithic Program Swenson (2007) 54 BPM Standards Tutorial © 2007 Michael zur Muehlen. All Rights Reserved.

Slide 55: BPM 2002: Services Integration UI connects user to BPMS, not the back-end applications backgr. rules Enter create Review Information check check account Services Interfaces list new update delete Conformance Rules Conformance Rules Background Check Accts Acct Acct Acct Background Check Application Enterprise Application Logic and “Account Management” SOA Swenson (2007) 55 BPM Standards Tutorial © 2007 Michael zur Muehlen. All Rights Reserved.

Slide 56: BPM 2007: Composite Services Enter Create Review Check Information account Composite ESB/BPEL Service list new update delete Accts Acct Acct Acct Background Check Background Check Enterprise Application New Rules New Rules “Account Management” Application Logic and SOA Swenson (2007) 56 BPM Standards Tutorial © 2007 Michael zur Muehlen. All Rights Reserved.

Slide 57: BPM 2007: Composite Services Enter Create Review Check Information account Composite ESB/BPEL Services Background Check Background Check list new update delete New Rules Accts Acct Acct Acct New Rules Application Logic and SOA Enterprise Application “Account Management” Swenson (2007) 57 BPM Standards Tutorial © 2007 Michael zur Muehlen. All Rights Reserved.

Slide 58: 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 Create Enter Check Review Information account • IT Retains Control of ESB/BPEL • Computational Logic list new update delete • Data Representations Accts Acct Acct Acct • Scalability / Performance Background Check Background Check • Enterprise Application Interoperability New Rules New Rules • “Account Management” Master Data Management Swenson (2007) 58 BPM Standards Tutorial © 2007 Michael zur Muehlen. All Rights Reserved.

Slide 59: 3 Research Around Standards 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 59 BPM Standards Tutorial © 2007 Michael zur Muehlen. All Rights Reserved.

Slide 61: Research Question • We have tried (unsuccessfully) for more than 12 years to standardize how to coordinate business processes across the Internet. Why are these standards missing? • Individual standard makers are joining, leaving, and generally moving between different standards bodies in sometime random seeming paths • Commercial interest is often deliberately silenced in the development of standards • The prevailing economic models of standard making insufficiently explain the behavior we witnessed  How can we explain the observed phenomena during the standard making process? 61 BPM Standards Tutorial © 2007 Michael zur Muehlen. All Rights Reserved.

Slide 62: Research Design • Longitudinal Case Study based on public and restricted archival data and participation in standards venues • Detailed Case Analysis of selected Vignettes • IETF Case • W3C Case • Collected observations (events, incidents, significant behavior) from cases (a la process theory) • Evaluated significant observations both from an economic and an ecological perspective • Documented results as conjectures and testing strategies for further work 62 BPM Standards Tutorial © 2007 Michael zur Muehlen. All Rights Reserved.

Slide 63: Data Collection • Extracted participant information from public and members-only standards documents • Protocols from standards meetings 1993-2006 • Standards documents • Call sheets • Gathered insight through participation • Went to 20+ standards meetings • Participated in numerous phone conferences • Multiple supplementary interviews (in person and via email) • Standards authors • Standards bodies representatives • Contemporary witnesses 63 BPM Standards Tutorial © 2007 Michael zur Muehlen. All Rights Reserved.

Slide 64: Standardization Venues • Standardization is not standardized • No dominant standards organization that regulates Internet standards (W3C, IETF, OMG, OASIS etc.) • No common set of procedures across different standards bodies (bylaws) • Large areas of domain overlap (both vertically and horizontally) • Government-sanctioned standards organizations often fail, losing power to market consortia [Schoechle 2003] • Cultural clash between design culture striving for “good” architecture and commercial culture striving for quick marketability [Monteiro 1998, zur Muehlen et al. 2005] • The “right” standards body lends legitimacy to an idea [compare Barley and Tolbert 1987] 64 BPM Standards Tutorial © 2007 Michael zur Muehlen. All Rights Reserved.

Slide 65: Vignette 1: WfMC/IETF Episode • Theme: Death of a Standards Group • WfMC members tried to start an IETF working group around process integration • IETF bylaws allow for 2 birds-of-a-feathers meeting • Minutes of the second meeting: • Informal poll: who wants to work on that (very few); something else (slightly more); Lisa Li[ppert] asked if everyone else here was to prevent a WG forming (larger still, but still a minority). • Established IETF members did not condone what they perceived as “Marketing Garbage” – Working Group did not form 65 BPM Standards Tutorial © 2007 Michael zur Muehlen. All Rights Reserved.

Slide 69: Vignette 2: W3C Episode • Theme: Maintaining the Values of an Institution • W3C tried to change its IP licensing schema to RAND licensing • More than 2,000 individuals commented on the proposed change • The policy would discriminate against the poor • The policy undermines the “Spirit of the Web” • The policy would be self-defeating for W3C • The proposal is a conspiracy • The committee reversed their position and produced a Royalty-Free proposal

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