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Business Process Management Systems Pascal Ravesteyn UU/HU - 2007 General overview • Introduction • What is BPMS? • Research question • BPMS implementation framework • Assignment Introduction Business Process Management: the Third Wave (Smith, Fingar, 2003) • Internet • Globalization • Governance (SOX, Tabaksblatt) • Outsourcing Source: CIOinsight (2006) View of processes and organization Act. Based costing Value webservices Chain EAI TQM CASE Balanced Scorecards Cont. process Workflow UML Rules ERP improvement Kaizen management engines Java ISO9001 Six Sigma B2Bi So… BPMS software category A new IT organization that supports the entire lifecycle of modeling, Business organization executing, and monitoring business processes What is Business Process Management (System) History BPMS Number Total Quality Management Business Process Reengineering 1 Process orientation Process orientation 2 Customer focus (intern and Customer focus (mainly external) extern) 3 Support and commitment of Support and commitment of employees and management employees and management • Management Concepts: 4 5 Requires cultural change Cross-functional teams to analyze Requires cultural change Cross-functional teams to redesign – Total Quality Management and resolve quality problems processes Root Characteristic – Business Process Re-engineering 6 BPR Improve existing work processes Develop entirely new processes 7 Focus change Continuous on external customers One-time project BPR Process descriptions (graphical)Project radical ness – Business Proces Management 8 9 TQM Evolutionary change FocusMeasurement and control of process performance on individual process Focus on core processes TQM Continuous optimization of processes – Etc. activities 10BPR automated processes across functional Use Implementation to ofmeasure creative use of IT to enable new of statistics departments improvement processes • IT Innovations 11TQM / BPR Culture learning' culture As few people as possible should 'self-renewal change Systematic automation business processes by integrating a with all employees involved of core be involved in the performance of all – Enterprise Resource Planning software applications that support these processes process Table 2 Characteristics of Business Process Management – Workflow Management Table 1 based on Jarrar and Aspinwall (1999); Hackman and Wageman (1995) – Enterprise Application Integration – Business Intelligence /Dashboard and portals – Etc. TQM BPR General Workflow Mana geme BPM Interface Layer Web nt Co Presentation Presentation Service ncept An y Process s Process Layer Calculation General Workflow actions System and User Inter BPMS AFE’s Business Level Objects Production Business Level Objects Business Inv oices Anything Rules Layer Business Lev el Business Level Obj ects Objects Business Level Objects Self-Generating Integration s ti o n Back end \ Systems API API API API API va API Inno EAI Layer IT Web Service XML SAP using java MSMQ using com or java Excel using com Databases using jdbc WFM ERP Databases „85 „90 „95 „98 „00 „05 time Ravesteyn, 2007 History of SOA computing WWW Business IBM PC Mainframe SQL Content: data & R/3 Databases Data Warehouse Business logic Service Oriented Architecture Batch EAI processing Visicalc R/2 BPM Client/Server WSDL Distribution technology VT3270 CORBA MQ Remote access & VT100 RPC NFS EJB EAI infrastructure SOAP TCP/IP WWW sockets Modula2 Programming Smalltalk Implementation language Pascal Java Platform, interfacing PROLOG Techniques interaction .NET COBOL Ada C# patterns Assembler SIMULA C++ 1950 1960 1970 1980 1990 2000 Classification of Services • Basic services; represent the basic elements of a SOA • Data centric services • Logic centric services • Intermediairy services; are stateless services that function as client of server in a SOA • Process centric services; encapsulate the knowledge of the organization‟s business processes (maintain the process state) • Public enterprise services; provide interfaces for cross-enterprise integration Application frontends are the active elements of a SOA. They initiate all business processes and ultimately receive their results (e.g. GUI) Classification of Services (2) Intermediairy Process-centric Public Enterprise Basic Services Services services services technology gateways, simple data or adapters and service shared with logic centric functionality encapsulate other enterprises or Description services adding services process logic partner organizations Implementation complexity low to moderate moderate to high high service specific State management stateless stateless stateful service specific Reusability high low low high Frequency of change low moderate to high high low Mandatory element of SOA yes no no no Krafzig et al. 2005 BPMS Architecture Example - 1 Web Work Interface Layer Portal/ Web Forms/ Service Presentation Presentation WSDL An y Process Process Process Layer Designer Calculation General Workflow actions System and User Inter AFE’s Production Component Business Level Objects Business Level Objects Business Inv oices Anything Manager Rules Layer Business Lev el Business Level Obj ects Objects Business Level Objects Self-Generating Integration Back end \ Systems API API API API API API Existing Layer Systems Web SAP using MSMQ using Excel using Databases using Service XML java com or java com jdbc BPMS Architecture Example - 2 Role Based Presentation + Applications (CAF) Business Activity Monitoring (BAM) Business Process Management (BPM) Enterprise Service Bus (ESB) Enterprise Applications (ERP + others) Market Overview “The Forrester Wave™: Integration-Centric Business Process Management Suites” (Q4, December 20, 2006) When to use BPMS high BPMS Complexity of coordination EAI Application server low low high Frequency of change Krafzig et al. 2005 Maturity of SOA in relation to Business Integration Maturity of SOA Not cost-effective Process enabled agility networked flexibility maintainability fundamental Not feasible Scope of Intra Cross Cross Simple Complex Business integration departmental departmental Bus. unit B2B Processes integration Intra Cross-enterprise enterprise Krafzig et al. 2005 Research Research goal • “Provide an overview of the critical success factors when implementing a BPMS” • To accomplish this…. Research Activities and Articles • Literature Research • Framework & Model • Validation (qualitative & quantitative) • Case Studies CONCEPT BPR TQM BPM WFM EAI BI/BAM BPMS Other Number ARTICLE 1 Aalst (2002) X Conceptueel Empirisch 2 Aalst, et al(2003) X X X Case studies 3 Aalst, Hee (2004) X Theoretisch Modelmatig 4 Aguilar-Savén, Ruth (2004) X X Surveys 5 Al-Mashari, Zairi (1999) X 6 Anzböck, Dustdar (2005) Nummer ARTIKEL KRITISICHE SUCCESFACTOREN ZOALS GENOEMD IN ARTIKEL (niet alles is KSF, soms betreft het aspecten zoals uit artikel naar voren komt) X 7 Arkin(2002) X when modeling a when altering private software of implementatie methode) 8 Armistead (1996) X X supply chain this processes, which 9 Armistead, Machin (1997) X X Toegepast (consultancy gericht) requires each modifications are Vergelijkende studies (bijv. Van 10 Aversano, et al (2002) X the level of detail in X business partner to allowed without 11 Becker, et al (2003) modeling entire understand the nature jeopardizing the X Vergelijkende case studies 12 Bhatt, Stump (2001) in processesX a supply of their partners' local correct operation ofX 1 Aalst (2002) chain processes the overall workflow 13 Bhatt, Troutt (2005) X X SCIENTIFIC METHOD 2 Aalst, et al(2003) Not applicable 14 Box, Platts (2005) 3 Aalst, Hee (2004) Not applicable X Wetenschappelijk 15 Burlton (2001) X Cross-sectional Cross-sectional Longitudinaal Longitudinaal 16 Çakular, Wijngaarden (2002) Is it possible to use X modelingtechniques 17 Chang (2006) X that are related to the 18 Cunningham, Finnegan (2004) 4 Aguilar-Savén, Ruth (2004) X type of company? X 19 Datastream (2005) management X 20 Davenport (2000) competency and organisational project planning and X 21 Deming (1982) ARTICLE 5 Zairi (1999) Al-Mashari,X change management support structure management IT infrastructure 6 Anzböck, Dustdar (2005) Not applicable 22 Dennis, et al (2006) Aalst (2002) X X 7 Arkin(2002) Not applicable 23 Es, et al (2005) Aalst, et al(2003) X X Build Improve 24 Fremantle, et al (2002) Aalst, Hee (2004) X X Designate a process X Understand the Work on the trade- Teach others about Train within the X specialist the 25 Georgakopoulos (1999) Aguilar-Savén, Ruth (2004) 8 X Armistead (1996) X champion X Know the process linkages offs the process process Measure the process Manage careers expertise process 26 Grefen, De Vries (1998) Al-Mashari, Zairi (1999) organization XX organization Anzböck, Dustdar (2005) 9 Armistead, Machin (1997) coordination process definition X structuring cultural fit improvement measurement 27 Gulledge, Sommer (2002) X X 28 Hammer, Champy (2001) Arkin(2002) X X delay the technology 29 Harrington (1995) Armistead (1996) X use of a well-defined X evaluation until take into account the Armistead, Machin (1997) and practical method accurately select use a standard X process reverse industrial partners 30 Hill (1999) X X Aversano, et al (2002) to reverse engineer process owners X and listen to process X use multiple data draw early drafts of process modeling engineering is and the target 31 Hillegersberg, et al (2004) X Becker, et al (2003) 10 Aversano, et al (2002) processes key users owners and key users gathering approaches process maps language finished environment 32 Informatica (2005) X Bhatt, Stump (2001) X 33 Ishikawa (1986) Bhatt, Troutt (2005) X Integration of CRM X 34 Jablonski (1995) Box, Platts (2005) X and SCM data from X X 35 Jarrar, Aspinwall (1999) an operative (EAI) Burlton (2001) X X X perspective and a 36 Jeston, Nelis (2006) Çakular, Wijngaarden (2002) X X Involvement of The effectiveness of management (data 37 Jeston, Nelis (2006) Chang (2006) X management as ManagementX datawarehouses for The availability of warehouses and 38 Juopperi, et al (1995) Cunningham, Finnegan (2004) targeted users of the X understanding and business process X data within the Supply decision support 39 Juran (1945) Datastream (2005) 11 X Becker, et al (2003) system support X integration Chain systems) perspective 40 Juran (1951) Davenport (2000) X X to enable Top management communication for global inter- support is critical to 41 Karagiannis (1995) Deming (1982) X X X among IS systems operability, establish Network 42 Kettinger, et al (1997) Dennis, et al (2006) X standardization is transparency to the Integrative capability connectivity and X 43 Khoshaflan (2006) Es, et al (2005) 12 Bhatt, Stump (2001) needed end user is neededX of IS networks Network Flexibility X 44 Kim, Ramkaran (2004) Fremantle, et al (2002) X 13 Bhatt, Troutt (2005) Not applicable X X 45 Klen, et al (2001) Georgakopoulos (1999) X X X 46 Kobayashi (2003) Grefen, De Vries (1998) X XX X Gulledge, Sommer (2002) X single 47 Koedijk, Verstelle (1999) X point Hammer, Champy (2001) X 48 Kuo (2004) X accountab Harrington (1995) X X ility; each 49 Laudon, Laudon (2000) X Hill (1999) X person 50 Lee, Dale (1998) Hillegersberg, et al (2004) X X a clear should Informatica (2005) X make sure path must fully Ishikawa (1986) X X that be created understan Jablonski (1995) X people from d her role that are corporate in Jarrar, Aspinwall (1999) X engaged strategy to achieving Jeston, Nelis (2006) X to the strong project the overall Jeston, Nelis (2006) X project leadership goals, and objective Juopperi, et al (1995) X can attach is ultimately and be Juran (1945) X X create challenging rewards & incentives their own essential to team accountab Juran (1951) X translate project X assign the best roles and new job when deliverables are meaning for and le for Karagiannis (1995) X objectives into very X formulate a business deliver on the good executive possible people to the perspectives after the met before time, with to the effective individual his/her 14 Box, Platts (2005) involve many people specific deliverables case business case involvement (sponsor) project full time project higher quality etc. project change objectives tasks Kettinger, et al (1997) X X X X Khoshaflan (2006) X Kim, Ramkaran (2004) X Business Process Management Framework Monitoring & Control BI / BAM BPMS WFM TQM Bus. Strategy & Policy Organization Proc. EAI Information & Processes Technology Model. BPR People & Culture Ravesteyn, 2006 Business Process Management System Implementation approach • A literature study of 104 articles and books • Based on a meta-analysis of the literature a list was compiled with over 337 critical success factors from the different background principles • This list was based upon the principles according to the following composition: – 3.86% of the factors came from TQM – 17.51% from BPR – 29.97% BPM – 11.57% WFM – 12.76% EAI (incl. SOA) – 2.08% BAM – 12.17% from the BPMS domain – 10.08% from various other related areas Business Process Management System Implementation approach Management of Implementation & Change Project domain Man. Architecture Development Man. Org. & Proc. Process Information Infrastruc. Ser. Appl. Org. & Proc. Measurement and Control Organizational domain (Ravesteyn, 2007) Management of Organization & Processes Critical Success Factors: 1) Project management 2) Change management and involving people 3) Understanding the BPM concept 4) Management support and involvement 5) Strategic Alignment 6) Governance & accountability 7) Training 8) Culture Management of Organization & Processes Other factors mentioned: • take into account the customers, industrial partners and the target environment • create challenging roles and new job perspectives after the project • establishing a support organization because ongoing maintenance and management is very difficult • Treat value as realizable by all stakeholders, irrespective of geography or organizational boundaries • Build a knowledge base around processes • implementation guide: follow an "inside-out" strategy, this means first prioritize the integration of internal systems and applications, defining and institutionalizing your business processes then the company is better suited for integration with external systems • use of best practices Architecture Design (process model) Critical Success Factors: 1) Understanding the process 2) Use the 'best' modeling standards & techniques 3) Organizing the modeling ‘design’ phase 4) Maintenance and control - including quality - of the models is important Architecture Design (process model) Formal models Analysis Visualisation For different Design stakeholders Napkin Whiteboard Idea Architecture Use Powerpoint process Link with Management implementation Maintenance Version control The architecture description life cycle (Lankhorst et al. 2005) Architecture Design (coherence) (Lankhorst et al. 2005) Architecture Design (process model) Other factors mentioned: • When altering private processes, which modifications are allowed without jeopardizing the correct operation of the overall workflow • Strategic objectives and functional objectives should be identified and linked to process model • lack of documentation of embedded processes in application systems • Multi process adaptation alternatives should be present, and also a contextual adaptation process • Underestimating the difficulty in integrating offshore-supplier employees into the processes and work flows of their companies • Modeling interfaces related to software systems • pre-determined collaboration choreography of participating organizations (ad hoc changes are not possible) Architecture Design (information model) Critical Success Factors: 1) Interdependencies and Integration of Data sources 2) Discovery of Information 3) Process Orientation 4) Defining (web) services 5) Understanding the BPMS paradigm 6) Business & IT divide 7) Use of Business Rules Architecture Design (information model) Other factors mentioned: • Sometimes information-processing work is subsumed into the real work that produces the information • For global inter-operability, transparency to the end user is needed which has consequences for the information availability Development (infrastructure) Critical Success Factor: 1) IT Infrastructure: – IT infrastructure is not aligned to the developed solution – embedded business logic within communications networks Development (Service Oriented Business Appl.) Critical Success Factors: 1) Integration of processes and data 2) (Use of) Webservices Development (Service Oriented Business Appl.) Other factors mentioned: • Transformation of design models into implementation models • Delay the technology evaluation until process reverse engineering is finished • SOA (currently) works best when working with applications from large IT vendors • Reliability of Internet (standards) • The process manager might get direct access to the application server where connections are running • Testing prototypes and the final solution • The inflexibility of IT application systems Management of Implementation & Change Critical Success Factors: 1) Project management 2) Change management and involving people Measurement & Control Critical Success Factors: 1) Performance Measurement 2) Continuous Optimization 3) An organization and culture of Quality Measurement & Control Other factors mentioned: • Use multiple data gathering approaches • The availability of data within the Supply Chain is critical • Both formal and informal monitoring and reporting activities should be taken into account • Capture information once and at the source (tasks are performed wherever it provides the most value) • Granularity and visibility control (information is not available or private information is made public) Assignment Assignment Investigate the validity of (part of) the provided success factors. Extend and/or drill-down when necessary. Aspects to consider: – Mapping on the Model – Weight – Aspects per CSF Assignment form •Teams of two •Several teams are validating one domain •One paper per domain with at least one chapter per team Structure team chapter: Structure domain paper: Summary Team x Team x Team n Introduction Introduction Introduction Validation Validation Validation Results Results Results Conclusion (validation method & overall results) Resources • BPM Forum • Suppliers (BEA (Fuego), Cordys, IBM, Microsoft, SAP, Seebeyond, Tibco, Webmethods etc.) • Consultancy Organizations (Capgemini, InterAccess, LogicaCMG, Ordina etc.) • Users (Interpay, ING, ABN-AMRO, Nuon etc.) Questions?