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Advanced Business Analysis Training
Comprehensive Object Oriented Business Process
Page 2Classification: Restricted
BusinessImperatives
Enterprise Modeling
Stakehollders
Value Chains
BusinessProcesses
BusinessEngineering
SystemLevelModel
Mapping to Layered
Architecture
Conclusion
Agenda
Business
Imperatives
1
12
2
3
4
5
6
7
10
9
8
11
Page 4Classification: Restricted
Global Pressures - Local
Problems
CheaperFaster
Better
PROCESS
Requires
Cost
Quality
PRODUCT/SVC
Time
Page 5Classification: Restricted
Time
1950 1960 1970 1980 1990 2000
The Solutions Gap
Acceptable deployment time
The
solution
gap
Time to build
Page 6Classification: Restricted
Conventional Software
Development
Probllem
Require-
meennts
Probllem
Solution
Time
Business Domain
Technical Domaiin
Page 7Classification: Restricted
Business / I.T. faced
with
Globalization
Demandsfor efficiency
Demandsfor flexibility andrapid innovation
Requirement for high quality and service
Technology discontinuity
RReesskiilllng
70%plus projects in consulting experience have
reengineering element
Page 8Classification: Restricted
Process focus
Resource
Organization
Process
1950 1960 1970 1980 1990 2000
Generations of Business Modeling
Simplifying operations
Reducingcycle times
Increasing addedvalue
Cutting costs
Improving reliability
Tightening vendor
relatiioonnsshhips
Focusingon core
competencies
Page 9Classification: Restricted
Enterprise
Modeling
Page 10Classification: Restricted
In this module
We will
Seewhy Enterprise Modeling is useful
Introduce
Stakeholder andValue Chain concepts andmodels
An approach to BusinessModeling from GMD iinGermaannyy
A simple BusinessProcessModeling notation
Laythe founddaationfor future BusinessEngiineering("BPR")
You will
Build astakeholder model
Model anexisting business process
Page 11Classification: Restricted
Enterprise
Modelling
Efficiency is doing things right
Effectiveness is doing the right things
Enterprise Modelling helps us to:
Keep projjects anddevellopmentsalliignedwiith Corporate Goalls
Identify highpaybackapplications to applyscarceresources
Prioritise development from the perspective of businessneed
andtechnicalimperative
Scooppeeproojjeecctsaannddssyystems
Variety of techniques including:
Critical Success Factors (CSF's) [Rockart]
Functional Decomposition [I.E., Tetrarch,
Infomet, Method/1]
Value CChhaaiinnAAnnaallysis[Porterr]]
UseCases[Jacobson]
Page 12Classification: Restricted
Stakeholder Perspective
Client
Share
holder
Money
Capital
Growth
Dividends
The EnterpriseGoods &
Services
Payment
Investment
Effort/Knowledge
Employee
Remuneration
Benefits
Goods &
Services
Supplier
Page 13Classification: Restricted
Porter Value Chain
model
Information management
Firm Infrastructure
Human Resource Management
Technology Development
Procurement
Inbound
Logistics
Operations Outbound
Logistics
Marketing
& Sales
Service
Margin
SupportActivities
Page 14Classification: Restricted
Value Chaiin cuts across
functional boundaries
Corporation
Branch
Sales
Contract
with client
Mgmt
Approve
credit
Collections
Collect
deposit
Process
payments
Delivery
Deliver
goods
Head Office
Purchasing
Buy goods
Despatch
Send to
store
1 2 3 5
6
7
4
Business Process
Page 15Classification: Restricted
A set of advanced tools
Developed by Ulrich Frank and colleagues at GMD
Strategic View
Value chains. Goals.
Corporate culture.
Strategiic Options.
Organisational
View
Tasks. Events.
Offiice proced
Objjects. Bus
Roles.
ures.
iness
rules.
IS View
Classes. Procedures.
User interfaces.
Associiations.
Transactions.
Object Model
Designer
Classes. Attributes.
Constraiints. Default
Widgets. Services.
Associations.
Value Chain Designer
Value C
Chaiin
Resour
hains. Vallue
Activities.
ces. Costs.
Hypertext system
Common
Object
Model
Office Procedure
Designer
Activity Bllocks.
Procedures.
Documents. Rolles.
States. User interface.
Throughput.
Page 16Classification: Restricted
Value Chain Attributes
• Stakeholders
Identity
Contribution
Expectation
•Steps
•Inbound Operations
Outbound Marketiing
and Sales Service
Processes
Products andServices
Performance Levells
Measure
Current
Required
Problems andConcerns
Oppppoorrttuunniitiieess
Page 17Classification: Restricted
Linking Business and System
Models
..scan..
Enterprise Level
Value Chain
Business Process
System
Level Event
Models
One
One per
Major
Business
Event
One per
Initiating
Trigger
Page 18Classification: Restricted
Modeling
Business
Processes
Page 19Classification: Restricted
Sources of ideas
Previous work on integrating Memo andMartin/Odell OOA method
Stakehollder modells
Value chain identificatiion (allaPorter)
Businessprocess models (ala GMD)
Integratiion to Martiin//Odeellllevent modeellss
Design mappingto layered architecture basedupon MVC
(Smalltalk/Xerox PARC)
Classical BPRprinciples (Hammer, Champey, Davenport)
DaavidTayylloor((EEnnterpriisseeEEnnggiinneess))ccoonnvveergentenggiineeeeriinnggapprooaacchh
Inspired Architecture andStrategy work
UML variant in ''98
Page 20Classification: Restricted
Two apppprrooaacchheess::
Document current
Then analyse and improve
Pro's
Can be evolutionary, non disruptive, low risk
Don't change what we don't understand
Allows attacking the real problem (80/20)
Con's
Can require much work, time
Can incorporate too many current constraints
Design new from scratch
Top ddoowwnbbaasseedduuppoonnddeessiiredoouuttccoommeess
Pro's
"Blue sky" unconstrained by past experience
Lateral "out of box" thinking
New technology easily incorporated
Con's
Solving wrong problem
Disruuppttiivveand risky
Not understanding the complexities
Modeling the Business
Process
Page 21Classification: Restricted
Only do what we
have to
Pareto principle
Usegeneric models/patterns for
standard processes
Object maintenance(Add, Change,Delete, Query,
Report)
Well understood parts of domain (scheduling, least
coosstanalysis,deliveryrouting...)
Concentrate on core vallueaddiing processssess
That consumesignificant resources
Are critical to desired product/servviicceedelivery
Page 22Classification: Restricted
Samenotation for current andfuture
Show complete business process
including manual, partiiallllycomputeriised and
fully automated processes
Indicate how process is initiated
Identify actors involved
Sequence anddependencies of activities
Basedupon state of business objects affected
Requires high level busiinessobject domain model (class
diagram)
Allow synchronous, asynchronous andparaallllellaacctiivviitiiess
Show possibleoutcomes
which cantrigger other steps
Steeppssccaannreeppreessentothheerembedded processes
Must be instrumented to allow analysis and improvement
Business Process Model
Requirements
Student
Complete
Applic.Form
for Degree
Capture
Form
Verify
complete
& rules
adherence
Resolve
missing
info
PostGrad
Applic.
Evaluate
PostGrad
Applic.
Info
missing
PostGrad Evaluate
UnderGrad
Acceptance
or rejection
Page 23Classification: Restricted
Usablewith users, analystsand
designers(and in JAD sessions)
Familiar techniques
Wide support in industry
Object orientatiion
CASEtool availability
EEaassyttrraannssiitiioonnto riiggooroouusddeessiiggnn--
level models
Ability to show location,
reessppoonnssiibbiilliity
Ability to link resources
Business Process Model
Desirements
Student
Complete
Applic.Form
for Degree
Capture
Form
Verify
complete
& rules
adherence
Resolve
missing
info
PostGrad
Evaluate
PostGrad
Applic.
Info
missing
PostGrad Evaluate
Applic.
UnderGrad
Acceptance
or rejection
Page 24Classification: Restricted
Finding a home within
UML
We rejected
Sequencediagrams - not easyto useiinJJADssessssiions,,no parallllelland
asynchronous activity. More appropriate at "desiign"llevelldue to detail
Collaboratiion diiagrams- siimiillarto above
State diagrams - single object type..Busiinessprocesses affect manytypes
of objects
We chose activity diagrams
Senseof flow and dependencies
Show parallllellandasynchronous activiity eassiilly,,allsosynchroniisatiion
wwhheerereeqquuiireedd
Swim lanes allow geographic or organiizatiionall toppology to be aaddeed
Represent processes requiriing mulltiple state changes across variiouss
domain objects
Closest to event models usedpreviiouslly
CCoonnttrraryto UUMMLLaaddvviicceeto uusseethheessee""ffooriinnternnaallddeessiiggn"
Supported by Fowler andScott in UMLDistilled
Page 25Classification: Restricted
UML Activity Diagram
Similar in concept to Odell
event modellswiith iinnovation
of "swim lanes" for events
affecting aparticular class
"Customer Pays" is an
external activity in the
process
Ship
Goods
Process
Payment
Order
Satisfied
Receive
Order
Pick
Product
Invoice
Customer
Customer
Pays
Close
Order
[Order Accepted]
[Order Rejected]
Page 26Classification: Restricted
Standard UML Notatiion
A.Activity
B.ExternallActiiviity
C.Triggers
D.Synchronisation Bar
E.Annotation
We useto note outcomes
F.Start andTermiinate
G.Swim lane
A
B
A
AF
F
D
[OK]
[NOT OK]
G
Page 27Classification: Restricted
Denoting activity types
Extend by usingUML stereotype
mechanism to denote type of activity
Text
<<manual>>
<<supported>>
<<automated>>
<<embedded>>
Icons
We tend to userounded rectangles in place of ovals, since it easier to fit
descriptive text..
Manual
Computer
Supported
Manual
Fully
Automated
Embedded
+
+
Page 28Classification: Restricted
Agents, Inputs, Outputs
Agents (actors)
Internal
External
Inputs and Outputs
Links between anAgent andanActivity
normally involve input or output
On high level moddeellss,wweeccaannjjuusstnamethem
on the "fllow"
On more detaiiled modellswe canshow them
thus, anddefine their attributes indetail
TTyyppeesdefinneethe mmeeddiume..gg..FFoorm,Online
entry, Magnetic Card
IO Type
Course
Result
IO ID
Page 29Classification: Restricted
A context or use case
model
Conduct
Withdrawal
Funds
Check
Bank
Client
Bank
ATM
Card
Cash
Advice
Slip
Page 30Classification: Restricted
Triggers
Activities are triggeredby
Input from Agent
Outcome from another activity
Time (reached or elapsed)
End of
Month
Charge
Interest
Page 31Classification: Restricted
Outcomes (high level
models)
Expressedasanannotation emerging
from anActivity to distinguish flow
possibilities
Canhaveaprobability e.g..2 or 20%
An activity cangenerate several
outcomes..
Sometimes these will bedisjoint
((ii..ee..oonnllyyoonneeooffsseevveeraallmmaayyooccccuur)
We show this with asynchronisation
bar
Outccoommeessppeecciiffiiccaatiioonnwwiillllbbeemmore
rigorous later..
AssessCredit
Risk
OK
BAD
Check
Medical
Accept .8 Decline .2
Info
Request
Page 32Classification: Restricted
Business Process
Model
Complete
Applic.Form
for Degree
Capture
Form
Resolve
missing
info
Evaluate
PostGrad
Applic.
Evaluate
PostGrad
Applic.
Info
missing
UnderGrad
Student
Relations
Administration
Academic
Dept.
Acceptance
or rejection
Verify
complete
& rules
adherence
Student
Application
.2
.6 PostGrad
.2
Page 33Classification: Restricted
Selective Invocation
Either trigger could cause
the statement to be
produced.
End of
Month
Statement
Request
Produce
Statement
Produce Statement will only be
triggered if a statement is requested
aannddtthheeaaccccoouunntthhaassa nnoonn--zzeerroo
balance
Although default is "AND",
the control condition can
contain any evaluation
required (see Rules)
Produce
StatementStatement
Request
Update
Account
Account
Balance <> 0
Page 34Classification: Restricted
Rules
Can be specified anywhere
As simple text on high level models
Or identified by diamond with reference to rule base
Classnamesare highlighted
All data items mentioned should
be defined in domain model
If StockOnHand < ReorderLevel
and no PURCHASE ORDER issued
then ...
StockOnHand = PhysicalStock- CommittedStock
When QuantityOnHand < TotalDailyOrders for PRODUCT
issue to CUSTOMERS with PriorityStatus 1 first,
place BACKORDERS for CUSTOMERS not satisfied
Page 35Classification: Restricted
Resources
Activities canconsume
resources
Resources canbespecified in
activity properties
but canalso beshown on the
model if desired
Link to activity
SShhoowwtyyppeeiiffuusseeffuul
Specifyconsumption per activity per
pass
Type or individual canspecify number
available asa connsstraint
Counter
Assistant
Resource
Type
5 mins
Fill Form
Page 36Classification: Restricted
Swim lanes and bounding
boxes
Canbeusedto show
Organizational responsiibiilliity
Geographic location
LogicalTransaction Start and
Commit
BusinessObjects Affected
(system level models)
Platform for deployment (designlevel models)
CCoouullddhavesseevveerallllayersor overllaayyssppeermodell
B
A
AF
F
D
[OK]
A
[NOT OK]
G
Page 37Classification: Restricted
A real world example
Open
Application
Record
Application &
AttachmentsApplicant
Receive
Postal
Application
Record Fees
Received
Validate for
Completeness
Record Return &
Problem
Fees
No Fees
Serious
Omission
Establish ID of
Applicant
Capture Initial
Details for new
ISIS person +
Validate/Update
Existing Details
+
Existing
New
Capture
Application +
TooLate
(Policy)
Note 1
Notes: 1. Name, What applied for, what attached, App form no, ID?
2. Capture supporting info, results, school history, Personal report
Post School experience, applications (academic, housing, funding)
Note 2
ISIS - Process Application
Business Process Model - Dec 1996
Page 1 of 2
Deposit
Fees
Received
+
Post Back to
Applicant
Page 38Classification: Restricted
Process Properties
Specified per diagram
Volume per unit time
Current experiiencedduratiionn
(best, average, worst)
Current cost per invocation
Desired target duration andcost
Process Owner
Plusall that is apparent from contained symbols
e.g.User community, related processes, inputs
and outputs..
Page 39Classification: Restricted
Properties per Activity
Minimum, averageandmaximum duration (current, target)
Leadtime before commencement
Organizational responsibility
Resources consumed
type, unit of measure andconsumption (min maxavg)
Number of servers
Geograpphhiiccllooccaation(s)
Cost of performing the activity once (current, target)
For ttriggersemerggiinggfrom aanaacctiivviityy,,state fforeaachpath
andprobability that it is followed(1=certainty)
Page 40Classification: Restricted
Analysis Facilitated
Determining duration of overall process
Critical PathMethod techniques (ex. Project Management)
Project Evaluation andReviewTechniques(PERT)can
determine likelihood of various times
For onlliine,take one ttranssactiion
For batch,,callcullateruntime for all together
Cost of performing the process
SSeellecteeddccoossttiimmeessppaathproobbaabbiilliitiieess(1 timme)X
volume to get overall costs
Page 41Classification: Restricted
More Analysis
Resources consumed
Queuing effects canbe examined
Queuing will occur if arriving requests take longer
to processssthan the arrrriivvaalliinntervvaall
Canlook at anaverageoverallllor iindiivviiduaall
scenario
Various alternative scenarios easily compared
What if we replace mail with e-mail?
What if we fully automate routiine cases?
Page 42Classification: Restricted
Assurance Domain
ModelEmp History
Client
Will
Mar
Type
Enterprise
Legal
Person
Real
Person
CCTrust
Co P'ship
Consultant
Visit
Dis-
ability
Invest-
ment
Life
Cover
Role
With-
drawal
Proff.IndividGroup Foreign
Collection
Fin.Inst
Attorney
Insurer
Med.
Schem.
Prov
Fund
Life
Pension
RAAnnuity
Medical
Unit
Trust
Term
Life
Stop
Order
Debit
Order
Children
Spouse
Doctor
Medical
Report
Employer
Attorney
Co-Dir
Partner
e.g. Policy Owner
Life Assured
Payer
Beneficiary
0..1
*
*
*
*
Occup.
*
*
*
*
* * * *
*
* *
1 *
*
1
Benefit
*
*
Contract *
*
Role
Type
*
Contract
Type
*
Page 43Classification: Restricted
An Assurance
Application
Completeness
Check
Application
Capture
Poll
Applications
per Branch
Capture
Medical
Underwrite
Advise Client
Credit
Commission
Assess
Medical
Rejected
Low Risk
Not OK Check Bank
Details
OK
Issue
Contract
High Risk
Load
Premium
Client Premises
Complete
Application
Form
Branch Office
Application
Head Office
Client/
Agent
Doctor
Form
App1
Initial Medical Report
Page 44Classification: Restricted
Assurance Current Process
Analysis
BBeesstccaasseedduuratiioonn3 days38 mins
Averageduratiion 3 dayss1 hr 1122miinnss
Averagecost R326(about US$72)
Longest delay:waiting for medical report
No major savingsby speedingup headoffice
processes
FFuullyautomated functions much cheaper than
computer supported ones
Automation will save costs
Head ooffffiicceeUnderwriting is uunnddeerstaffffed
Page 45Classification: Restricted
Business
Engineering
Page 46Classification: Restricted
In this module
We will
Look at the pressuresfacing business
Identify some"classic" BPRapproaches
Explore afew case studies
Look at BPRprinciples andopportunities
Explore the emergingconcepts of Convergent Engineering
Linked Business/ITdevelopment
SSuusstainnaabblleere--eennggineeriinngg
Selfoptimizingprocesses
Seehow to balanceinnovation andprocess improvement
You will
RRee--eennggiinneeeerabbuussiinneessssproocceessss,,reflectinggthheecchhaannggeessin a
businessprocessmodel
Page 47Classification: Restricted
The changing shape of the
organization
Slow
Distorting
Inefficient
Lean
Flexible
Effective
Serial vs Parallel flow
Page 49Classification: Restricted
Debunking the Myths
Information can only be in one place at a time Shared Database
Comms
Only experts can perform complex work Expert Systems
Must choose between centralised and decentralised Comms Networks
Managers make all decisions DSS
Empowered Staff
Field offices required to support personnel and forms Wireless Comms
Cellular Phones
Notebooks
PPeerrssoonnaalccoonnttaaccttwith clients is vital e-mail, tele / video
conference, EDI
Manual tracking of progress/ movement Tracking systems
Transponders
Plans revised on fixed infrequent cycle Ongoing adaptation
Rapid
Communication
Adapted in part from Hammer & Champy, Reengineering the Corporation
Page 50Classification: Restricted
Business Re-Engineering
Looks at waysin which businesscanbe
changed...
to be more effffectiivveeiinnddeelliivveeriinnggvvaalluueeaannddsseervviicceto
customers
enhancingbenefits for other stakehollders through......
innovatiion
improved quality
greater efficiency
faster response
rapid adaptability
Loookkssat technology asanenabler to implement,
support andaccelerate these changes
Cuts across traditional Organizational andsystem
boundaries
FFooccuusseesson the ccuusstoommeer,stakeholders andthe
value chain(s) produciing vallueto these groups
Slow Business is
No Business !
Page 51Classification: Restricted
Ford Purchase Management -
Before
Purchasing
Supplier
Materials
Accounts
Payable
Head Office
Plant
Purchase
Order
2
Payment
7
Invoice
5
Receipt
6
Goods
4
Request
1
Purchase Order
3
500 staff
Complex reconcilliation
Very slow
Page 52Classification: Restricted
Ford Purchase Management -
After
Supplier
Plant
Head Office
Materials
Rejections
Purchase Order
Cheque
Goods
Staff reduction by 75%
Quality of delivery ++
Very quick turnaround
Computer
System
Inventory
Database
Production
Schedule
Page 53Classification: Restricted
Hammer''s BPR
Principles
•Organiize around outcomes, not tasks
•Havethose who usethe output of the process perform the process
•Subsume informatiion processiing work iinto the
reall work that produces the information
• Treat geographically dispersed resources asthough they were centraliised
•LLiinnkkppaaraalllleellaacctiivviitiieess
iinnssteeaaddooffintegrating their
results
• Put the decision point where the work
•is perfformed, and buiilld control into the process
•Capture iinfformatiion once,, and at the source
Page 54Classification: Restricted
BPR at Mutuall Beneffiit
Liiffe
Case
Manager
Case
Manager
Case
Manager
Underwriter
Phsyician
Expert
System
Expert
System
Expert
System
Databases
PCs
MF
Case Managers have full
autonomy
Good turnaround - 4hrs
Avg 2 - 5 days
100 field office positions
eliminated
Double volume of work handled
Source: M Hammer, HBR, 1990
Page 55Classification: Restricted
Five Steps in BPR
Davenport& Short,SloanManagementReview,1990 suggest:
Develop businessvision andprocess objectives
Identify processes to beredesigned
Understand andmeasurethe existing
processes
Identify I.T. levers
Design andPrototype the new process
TToowwhhiicchhwweeaaddd:
Ensureconsultation andbuy-in of affected parties
Measure effectiveness of new process as"proof of concept"
Ensurescalability andrepeatability
MMaarketand routiinniizze
Page 56Classification: Restricted
A re-engineered process
ISIS - Progress/Review Application
Business Process Model - Dec 1996
Deposit
Arriving
Record
Deposit
Examine
overall status
of application.
Advise parties
on change in
status
Offer
Accepted
Funding
Confirmed
Missing
Information
Received
Results
Received
Change of
Application
Capture
Acceptance
Record
Funding
Capture
Information
+
Update
Affected
Applicants
Issue new
ofer
Application
Recorded
AcademicHousing
Individual
Deposit
External
Funding
University
Sources
12
2
3
4
7 6 5
9
8
11 1
10DAILY
Rules
Change
Offer
Status
Withdraw
Offer
Advise
Applicant +
Refer
Decisions +
This process should be about 2/3
Automated moving up to about 85% with
full implementation of AARP.
Routine Decisions
to
be grouped ,
exceptions
highlighted for
attention
Page 57Classification: Restricted
Divergent Models of Business
and Software
Leads to inaccurate
translation
Long project times
Unresponsive to
Business
Difficult to change
Page 58Classification: Restricted
Adaptive Software
Devellopment
TecchniiccaallDomaiin
Time
Opera-
tions
Opera--
tions
Support
ssyystem
Support
SSyysstem
Adapted from Dr David Taylor, Enterprise Engines Inc.
Business Domain
Requires: Rich Models
High Fidelity, Rapid Conversion of Models to Executable systems
Ability to "Simulate the Business"
Page 59Classification: Restricted
A Layered Architecture
SALES SERVICING
PRODUCT DEVELOPMENT
Views &
Controls
Business
Models
Legacy
Systems
Models must fully express
business objects, rules
Must be modifiable in
real time
Include: Information,
Workflow/Process,
Integration with Legacy,
Business rules/constraints,
Financial and other
measures
Concurrent "now" and
"alternate" scenarios
Consistent model must support: Representation, Simulation,
Execution
Page 60Classification: Restricted
A "flat" design
A design with "chunks"
Architecture Approach reducess
complexity
Page 61Classification: Restricted
Design of complete business process
including manual, partially computerised
andfully automatedprocesses
Control mechanisms (constraints,
responsibilities (of individuals and
workgroups)) andestimated tiimiingaand
costs of activities - allow comparison of
alternative approaches
Use concept of outcomes and
document states, where "documents"
canbe rich hypertext or compossiite
documents including avariety of classes
andabstraacctdatatypes
Business Process Design
Student
Complete
Applic.Form
for Degree
Verify
Capture complete
Form & rules
adherence
Resolve
missing
info
PostGrad
Applic.
Evaluate
PostGrad
Applic.
Info
missing
PostGrad Evaluate
UnderGrad
Acceptance
or rejection
Page 62Classification: Restricted
Automated dispatching andqueuing of
documents to clerks andother agents
canlater be supported viiaworkffllow toolls
A procedure manager can
monitor performance andhandle
exceptions:
- think about how to tell if the
process is working effectively
from a bbuussiinneessssperssppeecctive
Performance model can be
built to determiine what iinfformatiion
is needed to perform eachprocess optimally
Above two elements should be added to Domain Model
Business Process Design
Student
Complete
Applic.Form
for Degree
Capture
Form
Verify
complete
& rules
adherence
Resolve
missing
info
Evaluate
PostGrad
Applic.
Evaluate
PostGrad
Applic.
Info missing
PostGrad
UnderGrad
Acceptance
or rejection
Page 63Classification: Restricted
Complete
Application
Form
Capture
Medical
Underwrite
Advise Client
Credit
Commission
Assess
Medical
Rejected
Low Risk
High Risk
Not OK Check Bank
Details
OK
Issue Contract
Load
Premium
Client Premises Head Office
Client/
Agent
Doctor
Doctor Premises
Branch eliminated
Reps have notebooks and cellphones
Medical reports via internet
Later Head Office processes fully automated
Best case duration 2 hr 27 min
Average cost reduced to R213 (US$ 47)
Substantial resource savings
Reengineered Assurance
Process
Page 64Classification: Restricted
Why BPR can fail
Lackof management commitment andfollow
through
Targeting too manyareas
Lackofmeasurement
Jobsare threatened
Lossof corecompetencies
No changefrom command andcontrol to
empowerment
Lackof adequate or timely I.T.support
Lackof involvement by stakeholders at all levels
Internall rather than external ffocus
Not doing the necessarytraining, counselling
Not cchhanggiinnggthheiinncceenntiivvessyyssteemmss
Page 65Classification: Restricted
Innovation
New Ideas
Radical
n x change
Unreliable
Invasive
High Risk
"Western"
BPR
RAD
Page 66Classification: Restricted
Continuous Improvement -
Kaizen
Sustainable
Slow, incrementall
improvements
.ntimes improvement
Reliable
Not disruptive
TQM
Sw Eng
CMM
Page 67Classification: Restricted
Combiiniing ffor sustaiinablle,, rapiid
improvement
One-time radiicallchange
leading to..
Framework
Innovation in isolated cells
Kaizen in cells andin
oovveeraallllproocceessss
Prove innovations viapilot
before deployment
Page 68Classification: Restricted
Defined
Process
Defined
Product
Perform
Process
Quality
Check
Collect
Results,
Measure
Norms and
History
Review and Revise
Evaluate Pilot Measure Integrate
Innovations
Sustainable Innovation
Model
Research
Group
n people
Process
&
Methods
Support
2n people
Project
Teams
20n
people
Page 69Classification: Restricted
System level
models
Page 70Classification: Restricted
Data andProcessareintegrateedd
FinancialModelscanbeintegrated directly in behaviour of
business objects
Simulationcanbeachieved by usingacopy of amodel with
simulated inputs, or achangedcopy of amodel with real
inputs
Work flowmodels are easiillyiimpllemented andallllowtasks
to evolve from being manualto automated over time
Layeringhelps isolate effects of changes
Wrapperingallows usto leverage or squeezeout legacy
ccoommppoonneenntsoovveertime whilleemmaaiinntaininggsseervviiccee
Objects help integrate
models
Page 71Classification: Restricted
Outcomes (system level
models)
We needto rigorously consider the effectof
activities on underlying objects (domain, andat a
designlevel,techniicall)
Expressedasanannotation emerging from an
Activity of the fform:
[Object Type][State]
All sucheffects areexpressed
Activities which affect the state offmore thaannone
object type are ffurrtthheerddeeccoomppoosseeddtiillllthheeyydo
affect jjuusstoonneeoobbjjeeccttype
Discrete states potentially
reached by agivenobject type
are linked by asynchronisatiion bar
All Object Typesnamedmust exist in the
domain model
Capture
Application
Client
Created
Application
Recorded
Page 72Classification: Restricted
Activity decomposiitiion
examplle
Process
Sale
+
Reorder
Stock
Stock
Ordered
Transaction
Recorded
Stock Below
Reorder Level
Customer
Updated
Transaction
Recorded
Decrease
Stock
Stock
Below
Reorder
Level
Debit
Customer
Customer
Updated Generate
Invoice
Record
Transaction
Client
Purchase
Request
Page 73Classification: Restricted
Pre- and Post-Conditions
It is inefficient andcognitively messyto haveall the invokersof an
operation check the parameters passed.
The checking should be done in the receiver,where it occurs once.
If the Preconditions are not met, the receiiver retur nssan errrror
messageanddoes nothingelse.
This
provides very good modullarity
iisffaaiill--ssaaffeeaanndd
promotes reeuussee......
... leading to economical, conceptually simpler software...
... which ismore reliable andeasier to maintain.
Request Result
Preconditions
form a filter
Page 74Classification: Restricted
Typical Outcomes (Event
Types)
An object is created
An object is deleted
An object is reclassified
Instances of collections are addedor dropped
The stateof anobject is changedby updatingattributes
An externaleventis processed
e.g.We get input from the screen or the user clliicksson anobjject
Event
Page 75Classification: Restricted
Design Level Models
Add technical events
Showinputs andoutputs to/from userinterface
Makeuseof frameworks andinfrastructurecomponents
e.g.workflow, logging,controls
Decompose so no activities affect more than one object
type =>methods
AAddllooggicaltraannssaactiioonbboouunnddaries
Canindicate platform allocation or geographic split
With resources andvolumes canbe usedfor capacity
planning, performance estimating
Accommodate existing systemanddata assets
Page 76Classification: Restricted
Mapping to Layered
Architecture Design
Page 77Classification: Restricted
In this module
We will
Explore the Model, View andController approach to design
Introduce concepts of how to
Maprequirements (captured in the systemlevel event
models) onto the MVC layered architecture
This is aform of "responsibility driven design" which helpsus
place behaviour in the right classes
The BusinessObject Domain Model will beennhhaanncceeddwith
behaviours on the existing cllassesandyou wiilllldeffiinenew
classesto managebusiinessprocessssess
Legacycomponents will beincorporated viawrappering
Page 78Classification: Restricted
Model, View and
Controller
View
Controller
Model
Object
Storage
Windows, Display Objects, Visual
Components
Business Process Logic, Rules
Transaction Logic, Current
State
Business Domain Objects
PPeerrssiisstteennttOObbjjeeccttss
Enduring Business (integrity
constraints and rules)
Page 79Classification: Restricted
View
Responsible for providing the user interface
Contains instances of systemor vendor provided classesor
customized components
Handles basicevents which are related to GUIIor iinterffaacceeoonnllyy
Minimize, maximise, drag, sizeawindow
Scroll alist or page
Popup amenuetc
Commmmuunniiccaateessbbuussiinneessssevents to thheeCCoonnttrroollllerllaayyeer
Once screen is full, pressingthe "OK" button
Menu item selection
Drag drop in direct manipulation interfface
Page 80Classification: Restricted
Controller
Creates the user iinterffaaccee((vviieew))llaayyeeraannddaacctiivvaateessit
Waiitsfforeveents
Processesbusinessevents
Implements transactioncontroll
Coordiinates effects by ssendiingmessagesto thheemoddeell,,aannddreessuulltsbbaacckkto thhee
view
Canbeat two llevells::
Start Create
Tx Sale
Customer A
Debit
Agent1 Branch10
PayCommission AddSale
ProductX End
decreaseStock Tx
Technical (normally provided by framework or classlibrary)
Technology specific
Could be GUI, text interactive or batch interface
Business(normally userwritten)
Not technology specific
ham McLeod June1999
Page 81Classification: Restricted
Model
Contains the Domain Class Objects
User developedclasses
Models the businessviasimulation
Objects are persiistent
Normally live on adatabase
Mayimplement enduring business
consttrraaiinntss//ruulleess
Cancontain legacycomponents via
"wrapperss""
Page 82Classification: Restricted
Business
Processes
Domain
Objects
Process Application
Legacy Systems
Wrapper Persistent Objects
GUI desktop clients Intranet Internet
Views &
Controls
Pay Commission
Client
Object
Application
Server
Gatew
ay
Legacy
Relational
Data
ObjectStorage
Layered Application
Architecture
Page 83Classification: Restricted
Models and the
architecture
Process Application
Legacy Systems
Wrapper
Persistent Objects
GUI desktop clients Intranet Internet
Pay Commission
Client
Gateway
Domain Model
not avail
available
Receive
Reservation
Request
Advise
Client
Book
Seat
Seat Reserved
Logic of
process
Individual
Method
Responsibilities
System Event Model
Proto
Type
Class
Structure
and
Relation-
ships
Layered Design
Page 84Classification: Restricted
Multiple "Controllers"
The controller layer maybe further subdivided into additional layers
In one approach we separate platfform dependent issuesiinto a
"technical controller" andbusinesslogic into anotherlayer
Improves portabiilliity andeaseoffchangiingbusiinessllogiic
The samebusinesslogic layer cansupport various interfaces, e.g.GUI,
Internet Browser and Batch
For large systems,we will not haveamonolithic controller with many
methods, but define new classesper business process. These can
encapsulate the necessarystatussiinfformaationn,,hhoollddthheemeethhooddssto
implement the businessprocess,,andiimpllement the ""process
mmaannaaggeer"ccoonncceeppt.BusinessProcess CCllaasseswill be aadddedto the
Object Model built during domain modeling
Page 85Classification: Restricted
Conclusion
The approach presented hasevolved over some7 yearsoffresearcchaand
consulting practice
It hasproven capablleandpractical for useby averagedevellopersin commercial
organiizatiions
It iisaccessiiblleto bussiinessssperssonnellwiithout aheavytechniicallbackground..The
essenceof models canbebuilt quickly in interactive facilitated (JAD) sessionswith
groups of users and anallysts
The approach addressesseveralareasnot well covered by other popular OO
methods, viz:
System dynamics
MMooddeellingbeyondthe "syyssteemmssbbooxx""to incclluuddeebusinessissues
Businessandprocess engineeriing
Inclusion of inputs,,outputs andresources at abusinesslevel
Rigorous mappingof dynamicsto domaiinmodell
Seamlessmappingof systemdynamicmodelsto layered design archiitecture
We hhaavveeddeevveellooppeeddaprototyyppeeCCAASSEEtoooollto iimmppllementthheeccooremmooddeelliinngg
approaches
Page 86Classification: Restricted
THANK YOU!

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Advanced Business Analysis Training

  • 1. Advanced Business Analysis Training Comprehensive Object Oriented Business Process
  • 2. Page 2Classification: Restricted BusinessImperatives Enterprise Modeling Stakehollders Value Chains BusinessProcesses BusinessEngineering SystemLevelModel Mapping to Layered Architecture Conclusion Agenda
  • 4. Page 4Classification: Restricted Global Pressures - Local Problems CheaperFaster Better PROCESS Requires Cost Quality PRODUCT/SVC Time
  • 5. Page 5Classification: Restricted Time 1950 1960 1970 1980 1990 2000 The Solutions Gap Acceptable deployment time The solution gap Time to build
  • 6. Page 6Classification: Restricted Conventional Software Development Probllem Require- meennts Probllem Solution Time Business Domain Technical Domaiin
  • 7. Page 7Classification: Restricted Business / I.T. faced with Globalization Demandsfor efficiency Demandsfor flexibility andrapid innovation Requirement for high quality and service Technology discontinuity RReesskiilllng 70%plus projects in consulting experience have reengineering element
  • 8. Page 8Classification: Restricted Process focus Resource Organization Process 1950 1960 1970 1980 1990 2000 Generations of Business Modeling Simplifying operations Reducingcycle times Increasing addedvalue Cutting costs Improving reliability Tightening vendor relatiioonnsshhips Focusingon core competencies
  • 10. Page 10Classification: Restricted In this module We will Seewhy Enterprise Modeling is useful Introduce Stakeholder andValue Chain concepts andmodels An approach to BusinessModeling from GMD iinGermaannyy A simple BusinessProcessModeling notation Laythe founddaationfor future BusinessEngiineering("BPR") You will Build astakeholder model Model anexisting business process
  • 11. Page 11Classification: Restricted Enterprise Modelling Efficiency is doing things right Effectiveness is doing the right things Enterprise Modelling helps us to: Keep projjects anddevellopmentsalliignedwiith Corporate Goalls Identify highpaybackapplications to applyscarceresources Prioritise development from the perspective of businessneed andtechnicalimperative Scooppeeproojjeecctsaannddssyystems Variety of techniques including: Critical Success Factors (CSF's) [Rockart] Functional Decomposition [I.E., Tetrarch, Infomet, Method/1] Value CChhaaiinnAAnnaallysis[Porterr]] UseCases[Jacobson]
  • 12. Page 12Classification: Restricted Stakeholder Perspective Client Share holder Money Capital Growth Dividends The EnterpriseGoods & Services Payment Investment Effort/Knowledge Employee Remuneration Benefits Goods & Services Supplier
  • 13. Page 13Classification: Restricted Porter Value Chain model Information management Firm Infrastructure Human Resource Management Technology Development Procurement Inbound Logistics Operations Outbound Logistics Marketing & Sales Service Margin SupportActivities
  • 14. Page 14Classification: Restricted Value Chaiin cuts across functional boundaries Corporation Branch Sales Contract with client Mgmt Approve credit Collections Collect deposit Process payments Delivery Deliver goods Head Office Purchasing Buy goods Despatch Send to store 1 2 3 5 6 7 4 Business Process
  • 15. Page 15Classification: Restricted A set of advanced tools Developed by Ulrich Frank and colleagues at GMD Strategic View Value chains. Goals. Corporate culture. Strategiic Options. Organisational View Tasks. Events. Offiice proced Objjects. Bus Roles. ures. iness rules. IS View Classes. Procedures. User interfaces. Associiations. Transactions. Object Model Designer Classes. Attributes. Constraiints. Default Widgets. Services. Associations. Value Chain Designer Value C Chaiin Resour hains. Vallue Activities. ces. Costs. Hypertext system Common Object Model Office Procedure Designer Activity Bllocks. Procedures. Documents. Rolles. States. User interface. Throughput.
  • 16. Page 16Classification: Restricted Value Chain Attributes • Stakeholders Identity Contribution Expectation •Steps •Inbound Operations Outbound Marketiing and Sales Service Processes Products andServices Performance Levells Measure Current Required Problems andConcerns Oppppoorrttuunniitiieess
  • 17. Page 17Classification: Restricted Linking Business and System Models ..scan.. Enterprise Level Value Chain Business Process System Level Event Models One One per Major Business Event One per Initiating Trigger
  • 19. Page 19Classification: Restricted Sources of ideas Previous work on integrating Memo andMartin/Odell OOA method Stakehollder modells Value chain identificatiion (allaPorter) Businessprocess models (ala GMD) Integratiion to Martiin//Odeellllevent modeellss Design mappingto layered architecture basedupon MVC (Smalltalk/Xerox PARC) Classical BPRprinciples (Hammer, Champey, Davenport) DaavidTayylloor((EEnnterpriisseeEEnnggiinneess))ccoonnvveergentenggiineeeeriinnggapprooaacchh Inspired Architecture andStrategy work UML variant in ''98
  • 20. Page 20Classification: Restricted Two apppprrooaacchheess:: Document current Then analyse and improve Pro's Can be evolutionary, non disruptive, low risk Don't change what we don't understand Allows attacking the real problem (80/20) Con's Can require much work, time Can incorporate too many current constraints Design new from scratch Top ddoowwnbbaasseedduuppoonnddeessiiredoouuttccoommeess Pro's "Blue sky" unconstrained by past experience Lateral "out of box" thinking New technology easily incorporated Con's Solving wrong problem Disruuppttiivveand risky Not understanding the complexities Modeling the Business Process
  • 21. Page 21Classification: Restricted Only do what we have to Pareto principle Usegeneric models/patterns for standard processes Object maintenance(Add, Change,Delete, Query, Report) Well understood parts of domain (scheduling, least coosstanalysis,deliveryrouting...) Concentrate on core vallueaddiing processssess That consumesignificant resources Are critical to desired product/servviicceedelivery
  • 22. Page 22Classification: Restricted Samenotation for current andfuture Show complete business process including manual, partiiallllycomputeriised and fully automated processes Indicate how process is initiated Identify actors involved Sequence anddependencies of activities Basedupon state of business objects affected Requires high level busiinessobject domain model (class diagram) Allow synchronous, asynchronous andparaallllellaacctiivviitiiess Show possibleoutcomes which cantrigger other steps Steeppssccaannreeppreessentothheerembedded processes Must be instrumented to allow analysis and improvement Business Process Model Requirements Student Complete Applic.Form for Degree Capture Form Verify complete & rules adherence Resolve missing info PostGrad Applic. Evaluate PostGrad Applic. Info missing PostGrad Evaluate UnderGrad Acceptance or rejection
  • 23. Page 23Classification: Restricted Usablewith users, analystsand designers(and in JAD sessions) Familiar techniques Wide support in industry Object orientatiion CASEtool availability EEaassyttrraannssiitiioonnto riiggooroouusddeessiiggnn-- level models Ability to show location, reessppoonnssiibbiilliity Ability to link resources Business Process Model Desirements Student Complete Applic.Form for Degree Capture Form Verify complete & rules adherence Resolve missing info PostGrad Evaluate PostGrad Applic. Info missing PostGrad Evaluate Applic. UnderGrad Acceptance or rejection
  • 24. Page 24Classification: Restricted Finding a home within UML We rejected Sequencediagrams - not easyto useiinJJADssessssiions,,no parallllelland asynchronous activity. More appropriate at "desiign"llevelldue to detail Collaboratiion diiagrams- siimiillarto above State diagrams - single object type..Busiinessprocesses affect manytypes of objects We chose activity diagrams Senseof flow and dependencies Show parallllellandasynchronous activiity eassiilly,,allsosynchroniisatiion wwhheerereeqquuiireedd Swim lanes allow geographic or organiizatiionall toppology to be aaddeed Represent processes requiriing mulltiple state changes across variiouss domain objects Closest to event models usedpreviiouslly CCoonnttrraryto UUMMLLaaddvviicceeto uusseethheessee""ffooriinnternnaallddeessiiggn" Supported by Fowler andScott in UMLDistilled
  • 25. Page 25Classification: Restricted UML Activity Diagram Similar in concept to Odell event modellswiith iinnovation of "swim lanes" for events affecting aparticular class "Customer Pays" is an external activity in the process Ship Goods Process Payment Order Satisfied Receive Order Pick Product Invoice Customer Customer Pays Close Order [Order Accepted] [Order Rejected]
  • 26. Page 26Classification: Restricted Standard UML Notatiion A.Activity B.ExternallActiiviity C.Triggers D.Synchronisation Bar E.Annotation We useto note outcomes F.Start andTermiinate G.Swim lane A B A AF F D [OK] [NOT OK] G
  • 27. Page 27Classification: Restricted Denoting activity types Extend by usingUML stereotype mechanism to denote type of activity Text <<manual>> <<supported>> <<automated>> <<embedded>> Icons We tend to userounded rectangles in place of ovals, since it easier to fit descriptive text.. Manual Computer Supported Manual Fully Automated Embedded + +
  • 28. Page 28Classification: Restricted Agents, Inputs, Outputs Agents (actors) Internal External Inputs and Outputs Links between anAgent andanActivity normally involve input or output On high level moddeellss,wweeccaannjjuusstnamethem on the "fllow" On more detaiiled modellswe canshow them thus, anddefine their attributes indetail TTyyppeesdefinneethe mmeeddiume..gg..FFoorm,Online entry, Magnetic Card IO Type Course Result IO ID
  • 29. Page 29Classification: Restricted A context or use case model Conduct Withdrawal Funds Check Bank Client Bank ATM Card Cash Advice Slip
  • 30. Page 30Classification: Restricted Triggers Activities are triggeredby Input from Agent Outcome from another activity Time (reached or elapsed) End of Month Charge Interest
  • 31. Page 31Classification: Restricted Outcomes (high level models) Expressedasanannotation emerging from anActivity to distinguish flow possibilities Canhaveaprobability e.g..2 or 20% An activity cangenerate several outcomes.. Sometimes these will bedisjoint ((ii..ee..oonnllyyoonneeooffsseevveeraallmmaayyooccccuur) We show this with asynchronisation bar Outccoommeessppeecciiffiiccaatiioonnwwiillllbbeemmore rigorous later.. AssessCredit Risk OK BAD Check Medical Accept .8 Decline .2 Info Request
  • 32. Page 32Classification: Restricted Business Process Model Complete Applic.Form for Degree Capture Form Resolve missing info Evaluate PostGrad Applic. Evaluate PostGrad Applic. Info missing UnderGrad Student Relations Administration Academic Dept. Acceptance or rejection Verify complete & rules adherence Student Application .2 .6 PostGrad .2
  • 33. Page 33Classification: Restricted Selective Invocation Either trigger could cause the statement to be produced. End of Month Statement Request Produce Statement Produce Statement will only be triggered if a statement is requested aannddtthheeaaccccoouunntthhaassa nnoonn--zzeerroo balance Although default is "AND", the control condition can contain any evaluation required (see Rules) Produce StatementStatement Request Update Account Account Balance <> 0
  • 34. Page 34Classification: Restricted Rules Can be specified anywhere As simple text on high level models Or identified by diamond with reference to rule base Classnamesare highlighted All data items mentioned should be defined in domain model If StockOnHand < ReorderLevel and no PURCHASE ORDER issued then ... StockOnHand = PhysicalStock- CommittedStock When QuantityOnHand < TotalDailyOrders for PRODUCT issue to CUSTOMERS with PriorityStatus 1 first, place BACKORDERS for CUSTOMERS not satisfied
  • 35. Page 35Classification: Restricted Resources Activities canconsume resources Resources canbespecified in activity properties but canalso beshown on the model if desired Link to activity SShhoowwtyyppeeiiffuusseeffuul Specifyconsumption per activity per pass Type or individual canspecify number available asa connsstraint Counter Assistant Resource Type 5 mins Fill Form
  • 36. Page 36Classification: Restricted Swim lanes and bounding boxes Canbeusedto show Organizational responsiibiilliity Geographic location LogicalTransaction Start and Commit BusinessObjects Affected (system level models) Platform for deployment (designlevel models) CCoouullddhavesseevveerallllayersor overllaayyssppeermodell B A AF F D [OK] A [NOT OK] G
  • 37. Page 37Classification: Restricted A real world example Open Application Record Application & AttachmentsApplicant Receive Postal Application Record Fees Received Validate for Completeness Record Return & Problem Fees No Fees Serious Omission Establish ID of Applicant Capture Initial Details for new ISIS person + Validate/Update Existing Details + Existing New Capture Application + TooLate (Policy) Note 1 Notes: 1. Name, What applied for, what attached, App form no, ID? 2. Capture supporting info, results, school history, Personal report Post School experience, applications (academic, housing, funding) Note 2 ISIS - Process Application Business Process Model - Dec 1996 Page 1 of 2 Deposit Fees Received + Post Back to Applicant
  • 38. Page 38Classification: Restricted Process Properties Specified per diagram Volume per unit time Current experiiencedduratiionn (best, average, worst) Current cost per invocation Desired target duration andcost Process Owner Plusall that is apparent from contained symbols e.g.User community, related processes, inputs and outputs..
  • 39. Page 39Classification: Restricted Properties per Activity Minimum, averageandmaximum duration (current, target) Leadtime before commencement Organizational responsibility Resources consumed type, unit of measure andconsumption (min maxavg) Number of servers Geograpphhiiccllooccaation(s) Cost of performing the activity once (current, target) For ttriggersemerggiinggfrom aanaacctiivviityy,,state fforeaachpath andprobability that it is followed(1=certainty)
  • 40. Page 40Classification: Restricted Analysis Facilitated Determining duration of overall process Critical PathMethod techniques (ex. Project Management) Project Evaluation andReviewTechniques(PERT)can determine likelihood of various times For onlliine,take one ttranssactiion For batch,,callcullateruntime for all together Cost of performing the process SSeellecteeddccoossttiimmeessppaathproobbaabbiilliitiieess(1 timme)X volume to get overall costs
  • 41. Page 41Classification: Restricted More Analysis Resources consumed Queuing effects canbe examined Queuing will occur if arriving requests take longer to processssthan the arrrriivvaalliinntervvaall Canlook at anaverageoverallllor iindiivviiduaall scenario Various alternative scenarios easily compared What if we replace mail with e-mail? What if we fully automate routiine cases?
  • 42. Page 42Classification: Restricted Assurance Domain ModelEmp History Client Will Mar Type Enterprise Legal Person Real Person CCTrust Co P'ship Consultant Visit Dis- ability Invest- ment Life Cover Role With- drawal Proff.IndividGroup Foreign Collection Fin.Inst Attorney Insurer Med. Schem. Prov Fund Life Pension RAAnnuity Medical Unit Trust Term Life Stop Order Debit Order Children Spouse Doctor Medical Report Employer Attorney Co-Dir Partner e.g. Policy Owner Life Assured Payer Beneficiary 0..1 * * * * Occup. * * * * * * * * * * * 1 * * 1 Benefit * * Contract * * Role Type * Contract Type *
  • 43. Page 43Classification: Restricted An Assurance Application Completeness Check Application Capture Poll Applications per Branch Capture Medical Underwrite Advise Client Credit Commission Assess Medical Rejected Low Risk Not OK Check Bank Details OK Issue Contract High Risk Load Premium Client Premises Complete Application Form Branch Office Application Head Office Client/ Agent Doctor Form App1 Initial Medical Report
  • 44. Page 44Classification: Restricted Assurance Current Process Analysis BBeesstccaasseedduuratiioonn3 days38 mins Averageduratiion 3 dayss1 hr 1122miinnss Averagecost R326(about US$72) Longest delay:waiting for medical report No major savingsby speedingup headoffice processes FFuullyautomated functions much cheaper than computer supported ones Automation will save costs Head ooffffiicceeUnderwriting is uunnddeerstaffffed
  • 46. Page 46Classification: Restricted In this module We will Look at the pressuresfacing business Identify some"classic" BPRapproaches Explore afew case studies Look at BPRprinciples andopportunities Explore the emergingconcepts of Convergent Engineering Linked Business/ITdevelopment SSuusstainnaabblleere--eennggineeriinngg Selfoptimizingprocesses Seehow to balanceinnovation andprocess improvement You will RRee--eennggiinneeeerabbuussiinneessssproocceessss,,reflectinggthheecchhaannggeessin a businessprocessmodel
  • 47. Page 47Classification: Restricted The changing shape of the organization Slow Distorting Inefficient Lean Flexible Effective
  • 49. Page 49Classification: Restricted Debunking the Myths Information can only be in one place at a time Shared Database Comms Only experts can perform complex work Expert Systems Must choose between centralised and decentralised Comms Networks Managers make all decisions DSS Empowered Staff Field offices required to support personnel and forms Wireless Comms Cellular Phones Notebooks PPeerrssoonnaalccoonnttaaccttwith clients is vital e-mail, tele / video conference, EDI Manual tracking of progress/ movement Tracking systems Transponders Plans revised on fixed infrequent cycle Ongoing adaptation Rapid Communication Adapted in part from Hammer & Champy, Reengineering the Corporation
  • 50. Page 50Classification: Restricted Business Re-Engineering Looks at waysin which businesscanbe changed... to be more effffectiivveeiinnddeelliivveeriinnggvvaalluueeaannddsseervviicceto customers enhancingbenefits for other stakehollders through...... innovatiion improved quality greater efficiency faster response rapid adaptability Loookkssat technology asanenabler to implement, support andaccelerate these changes Cuts across traditional Organizational andsystem boundaries FFooccuusseesson the ccuusstoommeer,stakeholders andthe value chain(s) produciing vallueto these groups Slow Business is No Business !
  • 51. Page 51Classification: Restricted Ford Purchase Management - Before Purchasing Supplier Materials Accounts Payable Head Office Plant Purchase Order 2 Payment 7 Invoice 5 Receipt 6 Goods 4 Request 1 Purchase Order 3 500 staff Complex reconcilliation Very slow
  • 52. Page 52Classification: Restricted Ford Purchase Management - After Supplier Plant Head Office Materials Rejections Purchase Order Cheque Goods Staff reduction by 75% Quality of delivery ++ Very quick turnaround Computer System Inventory Database Production Schedule
  • 53. Page 53Classification: Restricted Hammer''s BPR Principles •Organiize around outcomes, not tasks •Havethose who usethe output of the process perform the process •Subsume informatiion processiing work iinto the reall work that produces the information • Treat geographically dispersed resources asthough they were centraliised •LLiinnkkppaaraalllleellaacctiivviitiieess iinnssteeaaddooffintegrating their results • Put the decision point where the work •is perfformed, and buiilld control into the process •Capture iinfformatiion once,, and at the source
  • 54. Page 54Classification: Restricted BPR at Mutuall Beneffiit Liiffe Case Manager Case Manager Case Manager Underwriter Phsyician Expert System Expert System Expert System Databases PCs MF Case Managers have full autonomy Good turnaround - 4hrs Avg 2 - 5 days 100 field office positions eliminated Double volume of work handled Source: M Hammer, HBR, 1990
  • 55. Page 55Classification: Restricted Five Steps in BPR Davenport& Short,SloanManagementReview,1990 suggest: Develop businessvision andprocess objectives Identify processes to beredesigned Understand andmeasurethe existing processes Identify I.T. levers Design andPrototype the new process TToowwhhiicchhwweeaaddd: Ensureconsultation andbuy-in of affected parties Measure effectiveness of new process as"proof of concept" Ensurescalability andrepeatability MMaarketand routiinniizze
  • 56. Page 56Classification: Restricted A re-engineered process ISIS - Progress/Review Application Business Process Model - Dec 1996 Deposit Arriving Record Deposit Examine overall status of application. Advise parties on change in status Offer Accepted Funding Confirmed Missing Information Received Results Received Change of Application Capture Acceptance Record Funding Capture Information + Update Affected Applicants Issue new ofer Application Recorded AcademicHousing Individual Deposit External Funding University Sources 12 2 3 4 7 6 5 9 8 11 1 10DAILY Rules Change Offer Status Withdraw Offer Advise Applicant + Refer Decisions + This process should be about 2/3 Automated moving up to about 85% with full implementation of AARP. Routine Decisions to be grouped , exceptions highlighted for attention
  • 57. Page 57Classification: Restricted Divergent Models of Business and Software Leads to inaccurate translation Long project times Unresponsive to Business Difficult to change
  • 58. Page 58Classification: Restricted Adaptive Software Devellopment TecchniiccaallDomaiin Time Opera- tions Opera-- tions Support ssyystem Support SSyysstem Adapted from Dr David Taylor, Enterprise Engines Inc. Business Domain Requires: Rich Models High Fidelity, Rapid Conversion of Models to Executable systems Ability to "Simulate the Business"
  • 59. Page 59Classification: Restricted A Layered Architecture SALES SERVICING PRODUCT DEVELOPMENT Views & Controls Business Models Legacy Systems Models must fully express business objects, rules Must be modifiable in real time Include: Information, Workflow/Process, Integration with Legacy, Business rules/constraints, Financial and other measures Concurrent "now" and "alternate" scenarios Consistent model must support: Representation, Simulation, Execution
  • 60. Page 60Classification: Restricted A "flat" design A design with "chunks" Architecture Approach reducess complexity
  • 61. Page 61Classification: Restricted Design of complete business process including manual, partially computerised andfully automatedprocesses Control mechanisms (constraints, responsibilities (of individuals and workgroups)) andestimated tiimiingaand costs of activities - allow comparison of alternative approaches Use concept of outcomes and document states, where "documents" canbe rich hypertext or compossiite documents including avariety of classes andabstraacctdatatypes Business Process Design Student Complete Applic.Form for Degree Verify Capture complete Form & rules adherence Resolve missing info PostGrad Applic. Evaluate PostGrad Applic. Info missing PostGrad Evaluate UnderGrad Acceptance or rejection
  • 62. Page 62Classification: Restricted Automated dispatching andqueuing of documents to clerks andother agents canlater be supported viiaworkffllow toolls A procedure manager can monitor performance andhandle exceptions: - think about how to tell if the process is working effectively from a bbuussiinneessssperssppeecctive Performance model can be built to determiine what iinfformatiion is needed to perform eachprocess optimally Above two elements should be added to Domain Model Business Process Design Student Complete Applic.Form for Degree Capture Form Verify complete & rules adherence Resolve missing info Evaluate PostGrad Applic. Evaluate PostGrad Applic. Info missing PostGrad UnderGrad Acceptance or rejection
  • 63. Page 63Classification: Restricted Complete Application Form Capture Medical Underwrite Advise Client Credit Commission Assess Medical Rejected Low Risk High Risk Not OK Check Bank Details OK Issue Contract Load Premium Client Premises Head Office Client/ Agent Doctor Doctor Premises Branch eliminated Reps have notebooks and cellphones Medical reports via internet Later Head Office processes fully automated Best case duration 2 hr 27 min Average cost reduced to R213 (US$ 47) Substantial resource savings Reengineered Assurance Process
  • 64. Page 64Classification: Restricted Why BPR can fail Lackof management commitment andfollow through Targeting too manyareas Lackofmeasurement Jobsare threatened Lossof corecompetencies No changefrom command andcontrol to empowerment Lackof adequate or timely I.T.support Lackof involvement by stakeholders at all levels Internall rather than external ffocus Not doing the necessarytraining, counselling Not cchhanggiinnggthheiinncceenntiivvessyyssteemmss
  • 65. Page 65Classification: Restricted Innovation New Ideas Radical n x change Unreliable Invasive High Risk "Western" BPR RAD
  • 66. Page 66Classification: Restricted Continuous Improvement - Kaizen Sustainable Slow, incrementall improvements .ntimes improvement Reliable Not disruptive TQM Sw Eng CMM
  • 67. Page 67Classification: Restricted Combiiniing ffor sustaiinablle,, rapiid improvement One-time radiicallchange leading to.. Framework Innovation in isolated cells Kaizen in cells andin oovveeraallllproocceessss Prove innovations viapilot before deployment
  • 68. Page 68Classification: Restricted Defined Process Defined Product Perform Process Quality Check Collect Results, Measure Norms and History Review and Revise Evaluate Pilot Measure Integrate Innovations Sustainable Innovation Model Research Group n people Process & Methods Support 2n people Project Teams 20n people
  • 70. Page 70Classification: Restricted Data andProcessareintegrateedd FinancialModelscanbeintegrated directly in behaviour of business objects Simulationcanbeachieved by usingacopy of amodel with simulated inputs, or achangedcopy of amodel with real inputs Work flowmodels are easiillyiimpllemented andallllowtasks to evolve from being manualto automated over time Layeringhelps isolate effects of changes Wrapperingallows usto leverage or squeezeout legacy ccoommppoonneenntsoovveertime whilleemmaaiinntaininggsseervviiccee Objects help integrate models
  • 71. Page 71Classification: Restricted Outcomes (system level models) We needto rigorously consider the effectof activities on underlying objects (domain, andat a designlevel,techniicall) Expressedasanannotation emerging from an Activity of the fform: [Object Type][State] All sucheffects areexpressed Activities which affect the state offmore thaannone object type are ffurrtthheerddeeccoomppoosseeddtiillllthheeyydo affect jjuusstoonneeoobbjjeeccttype Discrete states potentially reached by agivenobject type are linked by asynchronisatiion bar All Object Typesnamedmust exist in the domain model Capture Application Client Created Application Recorded
  • 72. Page 72Classification: Restricted Activity decomposiitiion examplle Process Sale + Reorder Stock Stock Ordered Transaction Recorded Stock Below Reorder Level Customer Updated Transaction Recorded Decrease Stock Stock Below Reorder Level Debit Customer Customer Updated Generate Invoice Record Transaction Client Purchase Request
  • 73. Page 73Classification: Restricted Pre- and Post-Conditions It is inefficient andcognitively messyto haveall the invokersof an operation check the parameters passed. The checking should be done in the receiver,where it occurs once. If the Preconditions are not met, the receiiver retur nssan errrror messageanddoes nothingelse. This provides very good modullarity iisffaaiill--ssaaffeeaanndd promotes reeuussee...... ... leading to economical, conceptually simpler software... ... which ismore reliable andeasier to maintain. Request Result Preconditions form a filter
  • 74. Page 74Classification: Restricted Typical Outcomes (Event Types) An object is created An object is deleted An object is reclassified Instances of collections are addedor dropped The stateof anobject is changedby updatingattributes An externaleventis processed e.g.We get input from the screen or the user clliicksson anobjject Event
  • 75. Page 75Classification: Restricted Design Level Models Add technical events Showinputs andoutputs to/from userinterface Makeuseof frameworks andinfrastructurecomponents e.g.workflow, logging,controls Decompose so no activities affect more than one object type =>methods AAddllooggicaltraannssaactiioonbboouunnddaries Canindicate platform allocation or geographic split With resources andvolumes canbe usedfor capacity planning, performance estimating Accommodate existing systemanddata assets
  • 76. Page 76Classification: Restricted Mapping to Layered Architecture Design
  • 77. Page 77Classification: Restricted In this module We will Explore the Model, View andController approach to design Introduce concepts of how to Maprequirements (captured in the systemlevel event models) onto the MVC layered architecture This is aform of "responsibility driven design" which helpsus place behaviour in the right classes The BusinessObject Domain Model will beennhhaanncceeddwith behaviours on the existing cllassesandyou wiilllldeffiinenew classesto managebusiinessprocessssess Legacycomponents will beincorporated viawrappering
  • 78. Page 78Classification: Restricted Model, View and Controller View Controller Model Object Storage Windows, Display Objects, Visual Components Business Process Logic, Rules Transaction Logic, Current State Business Domain Objects PPeerrssiisstteennttOObbjjeeccttss Enduring Business (integrity constraints and rules)
  • 79. Page 79Classification: Restricted View Responsible for providing the user interface Contains instances of systemor vendor provided classesor customized components Handles basicevents which are related to GUIIor iinterffaacceeoonnllyy Minimize, maximise, drag, sizeawindow Scroll alist or page Popup amenuetc Commmmuunniiccaateessbbuussiinneessssevents to thheeCCoonnttrroollllerllaayyeer Once screen is full, pressingthe "OK" button Menu item selection Drag drop in direct manipulation interfface
  • 80. Page 80Classification: Restricted Controller Creates the user iinterffaaccee((vviieew))llaayyeeraannddaacctiivvaateessit Waiitsfforeveents Processesbusinessevents Implements transactioncontroll Coordiinates effects by ssendiingmessagesto thheemoddeell,,aannddreessuulltsbbaacckkto thhee view Canbeat two llevells:: Start Create Tx Sale Customer A Debit Agent1 Branch10 PayCommission AddSale ProductX End decreaseStock Tx Technical (normally provided by framework or classlibrary) Technology specific Could be GUI, text interactive or batch interface Business(normally userwritten) Not technology specific ham McLeod June1999
  • 81. Page 81Classification: Restricted Model Contains the Domain Class Objects User developedclasses Models the businessviasimulation Objects are persiistent Normally live on adatabase Mayimplement enduring business consttrraaiinntss//ruulleess Cancontain legacycomponents via "wrapperss""
  • 82. Page 82Classification: Restricted Business Processes Domain Objects Process Application Legacy Systems Wrapper Persistent Objects GUI desktop clients Intranet Internet Views & Controls Pay Commission Client Object Application Server Gatew ay Legacy Relational Data ObjectStorage Layered Application Architecture
  • 83. Page 83Classification: Restricted Models and the architecture Process Application Legacy Systems Wrapper Persistent Objects GUI desktop clients Intranet Internet Pay Commission Client Gateway Domain Model not avail available Receive Reservation Request Advise Client Book Seat Seat Reserved Logic of process Individual Method Responsibilities System Event Model Proto Type Class Structure and Relation- ships Layered Design
  • 84. Page 84Classification: Restricted Multiple "Controllers" The controller layer maybe further subdivided into additional layers In one approach we separate platfform dependent issuesiinto a "technical controller" andbusinesslogic into anotherlayer Improves portabiilliity andeaseoffchangiingbusiinessllogiic The samebusinesslogic layer cansupport various interfaces, e.g.GUI, Internet Browser and Batch For large systems,we will not haveamonolithic controller with many methods, but define new classesper business process. These can encapsulate the necessarystatussiinfformaationn,,hhoollddthheemeethhooddssto implement the businessprocess,,andiimpllement the ""process mmaannaaggeer"ccoonncceeppt.BusinessProcess CCllaasseswill be aadddedto the Object Model built during domain modeling
  • 85. Page 85Classification: Restricted Conclusion The approach presented hasevolved over some7 yearsoffresearcchaand consulting practice It hasproven capablleandpractical for useby averagedevellopersin commercial organiizatiions It iisaccessiiblleto bussiinessssperssonnellwiithout aheavytechniicallbackground..The essenceof models canbebuilt quickly in interactive facilitated (JAD) sessionswith groups of users and anallysts The approach addressesseveralareasnot well covered by other popular OO methods, viz: System dynamics MMooddeellingbeyondthe "syyssteemmssbbooxx""to incclluuddeebusinessissues Businessandprocess engineeriing Inclusion of inputs,,outputs andresources at abusinesslevel Rigorous mappingof dynamicsto domaiinmodell Seamlessmappingof systemdynamicmodelsto layered design archiitecture We hhaavveeddeevveellooppeeddaprototyyppeeCCAASSEEtoooollto iimmppllementthheeccooremmooddeelliinngg approaches