BPM Intro Prof. dr. Koen Vanhoof Room 0.03 wet.park 5 Business Process Management What, Why and How BPM #1 on Gartner 2010 CIO Agenda Business expectations and CIO strategiesa continued focus on business process improvement, cost reduction and analytics (Source: Gartner 2010 CIO Agenda Exec Summary) BPM Landscape Capabilities Existing IT Ecosystem Enterprise Apps Legacy and Data Packaged Applications 3 rd Party Services Existing Processes Optimize Processes using BPM - Process Modeling, Analysis & Simulation - Collaboration & Human Task Management - Process Execution & Systems Integration - Business Activity Monitoring & Optimization Improve Time-to-Value Reduce Risk Rapid Design, Change & Reuse Fast deploy (60-90 days) Quick POCs (< week) Agile solution delivery Iterative implementation Business/IT Collaboration Reuse across processes Business Value Executive Management Customer Service Invoice Reconciliation Teams Account Teams Instead of Manual, Ad-hoc Processing Account Administration Informal Tasks and Communication (ex Paper or) 2. Inefficient Working Environment Spans Systems 3. Inconsistent Prioritization 4. Incomplete or Inaccurate Data Flow Between Systems 5. Lack of Control Over System and Business Events (Exceptions) 6. Poor Visibility Into Process Performance Automatically Prioritizes and Routes Work Guides users through decisions Standardizes resolution across geographies Leverages existing systems and data Monitors for business events and initiates action Real-time visibility and process control BPM Provides Managed, Flexible Process Executive Management Customer Service Invoice Reconciliation Teams Account Teams Account Administration Process The Essential BPM Capabilities Modeling Simulation+ Optimization Workflow Rules Business Data Mgmt Human Interfaces Documents Event Monitoring System Integration Metrics Analytics Executive Management Customer Service Invoice Reconciliation Teams Policy Administration Account Teams What is a Business process ? Academic Business Process Business process Strategy and goals Organizational Business Processes Example Operational Business Processes Example From . To Implemented Business Processes Implementing Activities by procedures Implementation by workflows 29 Determine Customer Eligibility Applications can implement business process workflows by using services Retrieve Credit Report Request additional info Generate decline Etc. Business Process is implemented by integrating services 30 User Interaction Logic Data Logic Integration Logic Process Logic Business Rules Monitoring & Management Logic What is in an application? 31 Business Function User Interaction Logic Data Logic Integration Logic Process Logic Business Rules Monitoring & Management Logic Integration through service orientation Business Services 32 Modeled by business stakeholders Realized by I/T stakeholders Transforming existing assets Creating new assets Modular and re-usable Composed into applications, processes, and composite services Business Services Application Infrastructure (Tools help you Model & Assemble these) (Server infrastructure is out-of-the-box) User Interaction Logic Data Logic Integration Logic Process Logic Business Rules Monitoring & Management Logic 33 Dyna SOA BPM Agile Building IT Systems - Across Business and IT How do I optimize my business processes? Business Models Identify Process Tasks I/T Components exposed as SOA Services How do I integrate to my existing systems? Business and I/T can use a common language a.k.a. Process Integration # of Business Process Tasks = # of IT Services RSAMod 1WID 1RPMJKDMod 2ProcPortRAD Java WSRAD Mkt SimWID Wire 1WID Wire 2C2UML1C2UML2 WBE DemoWBSF DemoESB DemosMash DemoDyna ContentDyna QualWS Virtual Enterprise JKL iPhoneBlackBerry Portal RAD SOA What KAIs Mod 3Mod 4JKL BSpBSp Crt Business Models Driven into J2EE Workflows Demo 1Demo 2 Business process model - Simulate cost/time savings and assign business measures (KPIs) Re-use business process model in visual workflow tools to build SOA J2EE web services WebSphere Business Modeler WebSphere Integration Developer get Approved Approved/ Denied SOA Example - Composite Application If Approved then Send letter offering gold If NOT Approved Send letter offering Credit counseling service Human intervention on suspect applications to prevent fraud Adapting to business events Sell additional services based on customer profile Call Credit Rating service from an existing application Enable rapidly changing customer decision point Flexibly building business processes based on standards Human Task Business State Machine Java Application Imported EIS System WS-BPEL Business Process Business Rules WebSphere Integration Developer