1/24/2013




                                                                                                                                2


                                                                         • Collaboration of two communities:
                                                                           1. Business administration
                                                                           2. Computer science communities.
        Business Process Methodology                                         1. Researcher community
        Chapter 1-      Introduction                                         2. Software community
                                                                         • Business process management is influenced by
                                                                           concepts and technologies from different areas
                                                                           of business administration and computer
                              Prepared by:                                 science. Based on early work in organization and
                              Rao Majid Shamshad                           management, business process management has
                              University of Education, Lahore              its roots in the process orientation trend of the
                              email: majidrao111@gmail.com
                              http://www.bpm-ue.blogspot.com
                                                                           1990s, where a new way of organizing
                                                                           companies on the basis of business processes
                                                                           was proposed.




                                                                     3                                                          4




       Business Process….Definitions                                     Business Process
        • A business process is a:                                       • A business process consists of a set of activities
        “collection of activities that take one or more                    that are performed in coordination in an
          kinds of input and create an output that is of                   organizational and technical environment. These
          value to the customer.” (Michael Hammer and James Champy         activities jointly realize a business goal. Each
         )                                                                 business process is enacted by a single
        • “a set of logically related tasks performed to                   organization, but it may interact with business
          achieve a defined business outcome for a                         processes performed by other organizations.
          particular customer or market.” (Davenport)




http://www.bpm-ue.blogspot.com                                                                                                      1
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                                                           5                                                                               6

       Business Process Management
             “Business process management includes
          concepts, methods, and techniques to support         Simple Buying-Selling Process
            the design, administration, configuration,         1. The buyer sends an order message to the reseller (Place
         enactment, and analysis of business processes.”          Order activity).
                                                               2. The reseller accepts the order message in the Receive
                                                                  Order activity. The order information is then extracted
        • Business Process Management System                      from the message, and order processing continues.
                                                               3. The reseller sends an invoice (Send Invoice) and ships
           “A business process management system is a             the ordered products (Ship Products).
            generic software system that is driven by          4. The buyer receives the invoice in the Receive Invoice
                                                                  activity.
          explicit process representations to coordinate       5. The buyer sends the payment in the Settle Invoice
               the enactment of business processes.”              activity.
                                                               6. Finally, the buyer receives the ordered products in the
                                                                  Receive Products activity.




                                                           7                                                                               8




                                                               Conductor of Orchestra
                                                               • Business processes are performed in a single
                                                                 organization by definition, the ordering of
                                                                 activities can be controlled by a business process
                                                                 management system as a centralized software
                                                                 component run by the reseller company. This
                                                                 centralized control is very similar to a conductor
                                                                 who centrally controls the musicians in an
                                                                 orchestra; therefore, business processes are also
                                                                 called process orchestrations.
                                                                 (Chapter 4 will investigate languages to express process orchestration)




http://www.bpm-ue.blogspot.com                                                                                                                 2
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                                                                               9                                                       10




       Process Choreography
        • Dancers who need to agree on a common
          choreography before the show starts. During the
          performance, however, each dancer behaves
          autonomously but in line with his or her part in
          the choreography.
        • Similarly, In order to realize correct interactions,
          the interacting business processes need to agree
          on a common choreography before they start
          interacting.
          (Process choreographies will be discussed in detail in Chapter 5).




                                                                               11                                                      12




       Business Process Lifecycle                                                   1. Design and Analysis
                                                                                    • Surveys on business process and organizational
                                                                                      and technical environment are conducted
                                                                                    • Based on those surveys Business processes are:
                                                                                     ▫   Identified
                                                                                     ▫   Reviewed
                                                                                     ▫   Validated
                                                                                     ▫   Representation by Business process models




http://www.bpm-ue.blogspot.com                                                                                                              3
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                                                                               13                                                                         14




                                                                                    Design and analysis
       Design and analysis
                                                                                    • A lot of techniques for analyzing your model:
        • Based on surveys, findings, and business
                                                                                       Validation              Simulation              Verification
          improvement activities;
           Informal business process description is                                  • Prove validity        • Copy/               • Shouldn’t
                                                                                     • Conform                 reproduce             contain
          formulized by using particular business process                                                      the                   undesired
                                                                                       truth or value
          notation (symbols).                                                        • Declare                 appearance,           properties
        (Chapter 4 investigates languages to express business process model)           legally valid           character or        • Model must
                                                                                                               condition             represent
                                                                                                             • Step by step          desired or
                                                                                                               checking              actual
                                                                                                                                     process




                                                                               15                                                                         16



                                                                                    Configuration…….”ACID”
       2. Configuration
                                                                                     Atomicity      Consistency         Isolation         Durability
        • Implementation
         ▫ A lot of policies and procedures are
       • Process based system                                                                                                              Survival for
          Configure system according to process                                                                                             future

       • Process based system                                                          All-or-
                                                                                                        Consistence
                                                                                                                             No
                                                                                                                        interference
                                                                                                         database
          Configure process according to system                                       nothing
                                                                                                           state
                                                                                                                          in other
                                                                                                                        transactions
                                                                                                                                            Long life
                                                                                                                                              time




http://www.bpm-ue.blogspot.com                                                                                                                                 4
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                                                                        17                                                           18




       Configuration……………                                                    3. Enactment
        • Once system is configured:                                         • Actual run time of the business process
         ▫ Test the system                                                   • Entry of real activities
            Whether a software system exposes the expected                    ▫ e.g. the receipt of an order sent by a customer
             behavior                                                        • Controls the execution
                                                                               ▫ Execution constraints
         ▫ Additional activities                                             • Monitoring components
            Training of employees                                             ▫ Status of process e.g. :
            Migration of data in new platform (New system)                       Enabled activity (green)
                                                                                  Running activity (blue)
                                                                                  Completed activity (grey)




                                                                        19                                                           20




       4. Evaluation                                                         Stakeholders
        • Purpose of evaluation :                                            • Chief Process Officer: The chief process officer is
         ▫ Check the quality of system                                         responsible for standardizing and harmonizing
                                                                               business processes in the enterprise.
         ▫ Adequacy of process
                                                                             • Business Engineer: Business engineers are
            e.g. certain activity taking too long due to shortage of          business domain experts responsible for defining
             resources                                                         strategic goals of the company and organizational
         ▫ Improvement of business processes                                   business processes.
                                                                             • Process Responsible: Each business process
                                                                               model is assigned an individual who is responsible
                                                                               for the correct and efficient execution of all business
                                                                               processes using this model.




http://www.bpm-ue.blogspot.com                                                                                                            5
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                                                               21                                                         22




       Stakeholders……….                                             Stakeholders………
        • Process Designer: Process designers are                   • System Architect: System architects are
          responsible for modeling business processes by              responsible for developing and configuring business
          communicating with business domain experts                  process management systems so that the configured
          and other stakeholders.                                     business process management system enacts the
        • Process Participant: Process participants                   business processes in the context of the information
          conduct the actual operational work during the              systems infrastructure at hand.
          enactment of business process instances                   • Developers:        Developers    are     information
        • Knowledge Worker: Knowledge workers are                     technology professionals who create software
          process participants who use software systems to            artifacts required to implement business processes.
          perform activities in a business process.




                                                           23                                                             24




       Intra-organizational Processes v/s
                                                                    Degree of Automation
       Process Choreographies
        • If there is no interaction with business processes        • Fully automated:
          performed by other parties, then the business               ▫ no human is involved in the enactment of such a
          process is called intra-organizational.                       business process.
                                                                    • Semi-automated
        • Most business processes, however, interact with
          business processes in other organizations,                • Partially automated
          forming process choreographies.




http://www.bpm-ue.blogspot.com                                                                                                 6
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                                                             25




       Degree of Repetition
        • Highly repetitive
         ▫ online airline ticketing

        • collaborative business processes.
         ▫ improving the collaboration between the persons
           involved is at the centre of attention,




http://www.bpm-ue.blogspot.com                                           7

Chapter 1

  • 1.
    1/24/2013 2 • Collaboration of two communities: 1. Business administration 2. Computer science communities. Business Process Methodology 1. Researcher community Chapter 1- Introduction 2. Software community • Business process management is influenced by concepts and technologies from different areas of business administration and computer Prepared by: science. Based on early work in organization and Rao Majid Shamshad management, business process management has University of Education, Lahore its roots in the process orientation trend of the email: majidrao111@gmail.com http://www.bpm-ue.blogspot.com 1990s, where a new way of organizing companies on the basis of business processes was proposed. 3 4 Business Process….Definitions Business Process • A business process is a: • A business process consists of a set of activities “collection of activities that take one or more that are performed in coordination in an kinds of input and create an output that is of organizational and technical environment. These value to the customer.” (Michael Hammer and James Champy activities jointly realize a business goal. Each ) business process is enacted by a single • “a set of logically related tasks performed to organization, but it may interact with business achieve a defined business outcome for a processes performed by other organizations. particular customer or market.” (Davenport) http://www.bpm-ue.blogspot.com 1
  • 2.
    1/24/2013 5 6 Business Process Management “Business process management includes concepts, methods, and techniques to support Simple Buying-Selling Process the design, administration, configuration, 1. The buyer sends an order message to the reseller (Place enactment, and analysis of business processes.” Order activity). 2. The reseller accepts the order message in the Receive Order activity. The order information is then extracted • Business Process Management System from the message, and order processing continues. 3. The reseller sends an invoice (Send Invoice) and ships “A business process management system is a the ordered products (Ship Products). generic software system that is driven by 4. The buyer receives the invoice in the Receive Invoice activity. explicit process representations to coordinate 5. The buyer sends the payment in the Settle Invoice the enactment of business processes.” activity. 6. Finally, the buyer receives the ordered products in the Receive Products activity. 7 8 Conductor of Orchestra • Business processes are performed in a single organization by definition, the ordering of activities can be controlled by a business process management system as a centralized software component run by the reseller company. This centralized control is very similar to a conductor who centrally controls the musicians in an orchestra; therefore, business processes are also called process orchestrations. (Chapter 4 will investigate languages to express process orchestration) http://www.bpm-ue.blogspot.com 2
  • 3.
    1/24/2013 9 10 Process Choreography • Dancers who need to agree on a common choreography before the show starts. During the performance, however, each dancer behaves autonomously but in line with his or her part in the choreography. • Similarly, In order to realize correct interactions, the interacting business processes need to agree on a common choreography before they start interacting. (Process choreographies will be discussed in detail in Chapter 5). 11 12 Business Process Lifecycle 1. Design and Analysis • Surveys on business process and organizational and technical environment are conducted • Based on those surveys Business processes are: ▫ Identified ▫ Reviewed ▫ Validated ▫ Representation by Business process models http://www.bpm-ue.blogspot.com 3
  • 4.
    1/24/2013 13 14 Design and analysis Design and analysis • A lot of techniques for analyzing your model: • Based on surveys, findings, and business Validation Simulation Verification improvement activities; Informal business process description is • Prove validity • Copy/ • Shouldn’t • Conform reproduce contain formulized by using particular business process the undesired truth or value notation (symbols). • Declare appearance, properties (Chapter 4 investigates languages to express business process model) legally valid character or • Model must condition represent • Step by step desired or checking actual process 15 16 Configuration…….”ACID” 2. Configuration Atomicity Consistency Isolation Durability • Implementation ▫ A lot of policies and procedures are • Process based system Survival for  Configure system according to process future • Process based system All-or- Consistence No interference database  Configure process according to system nothing state in other transactions Long life time http://www.bpm-ue.blogspot.com 4
  • 5.
    1/24/2013 17 18 Configuration…………… 3. Enactment • Once system is configured: • Actual run time of the business process ▫ Test the system • Entry of real activities  Whether a software system exposes the expected ▫ e.g. the receipt of an order sent by a customer behavior • Controls the execution ▫ Execution constraints ▫ Additional activities • Monitoring components  Training of employees ▫ Status of process e.g. :  Migration of data in new platform (New system)  Enabled activity (green)  Running activity (blue)  Completed activity (grey) 19 20 4. Evaluation Stakeholders • Purpose of evaluation : • Chief Process Officer: The chief process officer is ▫ Check the quality of system responsible for standardizing and harmonizing business processes in the enterprise. ▫ Adequacy of process • Business Engineer: Business engineers are  e.g. certain activity taking too long due to shortage of business domain experts responsible for defining resources strategic goals of the company and organizational ▫ Improvement of business processes business processes. • Process Responsible: Each business process model is assigned an individual who is responsible for the correct and efficient execution of all business processes using this model. http://www.bpm-ue.blogspot.com 5
  • 6.
    1/24/2013 21 22 Stakeholders………. Stakeholders……… • Process Designer: Process designers are • System Architect: System architects are responsible for modeling business processes by responsible for developing and configuring business communicating with business domain experts process management systems so that the configured and other stakeholders. business process management system enacts the • Process Participant: Process participants business processes in the context of the information conduct the actual operational work during the systems infrastructure at hand. enactment of business process instances • Developers: Developers are information • Knowledge Worker: Knowledge workers are technology professionals who create software process participants who use software systems to artifacts required to implement business processes. perform activities in a business process. 23 24 Intra-organizational Processes v/s Degree of Automation Process Choreographies • If there is no interaction with business processes • Fully automated: performed by other parties, then the business ▫ no human is involved in the enactment of such a process is called intra-organizational. business process. • Semi-automated • Most business processes, however, interact with business processes in other organizations, • Partially automated forming process choreographies. http://www.bpm-ue.blogspot.com 6
  • 7.
    1/24/2013 25 Degree of Repetition • Highly repetitive ▫ online airline ticketing • collaborative business processes. ▫ improving the collaboration between the persons involved is at the centre of attention, http://www.bpm-ue.blogspot.com 7