IIR EA Conference: What Every Enterprise Architect Needs To Understand About BPM and Workflow

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 1

BPM is NOT about Technology 2

BPM is NOT about Creating Diagrams 3

BPM is NOT about Architecture 4

BPM is about Improving Business 5

BPM, BAM, BI, ESB, SOA, BLI, BLA, BLUBB... BPM: The Business Value Question 6

What is BPM? 7

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 7

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? 7

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) 8

How do you make a Cup of Coffee? 9

Coffee Lover Put Boiling Water Boil Water Put Coffee in Cup in Cup Thirsty Coffee is Ready The Nescafè Process 10

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 11

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 12

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? 13

Business Process Innovation Business Process Management Business Process Monitoring Business Process Automation 14

Business Process Innovation Business Process Management Manage Change Manage Execution Business Process Monitoring Business Process Automation 15

Business Process Innovation Business Process Management Notation Standard Integration Standards Audit Standards Interaction Standard Standards Metrics Business Process Monitoring Business Process Automation 16

What are you really good at? 17

From Core to Commodity Treat the process as a service Deﬁne a standard interface Think about creating value outside and at the front-end 18

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 19

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 20

Enterprise Process Frameworks 21

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 22

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 22

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 23

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 24

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 25

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 26

BPM - Technology Evolution 27

All IT is Initially an Expense Information Technology en ab les X Business Value s te ea cr Process Change 28

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.” 29

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.

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

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

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

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

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

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”

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”

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”

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 37

BPM - Technical Standards 38

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

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

+ Pool, Lane, Grouping, Annotation, Transaction Boundary... BPMN 1.0 offers 50 constructs BPMN 1.1 will add more... 40

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 41 Start Timer End Compensation

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

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 42

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 43

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

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Users don’t care about standards per se, but about their value proposition 46

BPM - Organizational Standards 47

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 48 Compare Sainsbury (2006)

Process Ownership Source: Sainsbury (2006) 49

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 50

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

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 52

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 53

Challenges Ahead 54

50 Years of IT Lock-Down 55

Management by Magazine 55

Business People Acquiring IT Skills 55

Quo Vadis? 56

Takeaways The Core becomes Commodity Frameworks Save Time Understand Your Standards Stack Agility Means Different Things to Different People 57

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 58

IIR EA Conference: What Every Enterprise Architect Needs To Understand About BPM and Workflow

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