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Information Technologies as the Base of the Business Process Management Implementation Information Technologies as the Base of the Business Process Management Implementation Abzetdin Adamov, PhD Computer Systems and Networks Department Qafqaz University Baku, Azerbaijan Abzetdin Adamov, PhD Computer Systems and Networks Department Qafqaz University Baku, Azerbaijan

INFORMATION TECHNOLOGIES AS THE BASE OF THE BUSINESS PROCESS MANAGEMENT IMPLEMENTATION

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IT and BPM both are about an improvement of the quality of processes, and facilitating managerial issues. Will it be effective to couple IT with BPM? Is it obligatory to combine these two approaches in order to be successful in business process improvement? Are these two approaches interrelated? If yes, which one plays a supportive role? This article is going to provide answers to those important questions devoted to the role of the IT in BMP implementation.

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Page 1: INFORMATION TECHNOLOGIES AS THE BASE OF THE BUSINESS PROCESS MANAGEMENT IMPLEMENTATION

Information Technologies as the Base of the Business

Process Management Implementation

Information Technologies as the Base of the Business

Process Management Implementation

Abzetdin Adamov, PhDComputer Systems and Networks Department

Qafqaz UniversityBaku, Azerbaijan

Abzetdin Adamov, PhDComputer Systems and Networks Department

Qafqaz UniversityBaku, Azerbaijan

Page 2: INFORMATION TECHNOLOGIES AS THE BASE OF THE BUSINESS PROCESS MANAGEMENT IMPLEMENTATION

ContentsContentsContents

1. Introduction. Information Technologies in Business

2. The Nature of the Business Process Management

3. IT as enabler of Business Process Reengineering

4. Business Process Simulation and Modeling with IT

5. Business Processes Management Systems as IT implementation of BPM

1. Introduction. Information Technologies in Business

2. The Nature of the Business Process Management

3. IT as enabler of Business Process Reengineering

4. Business Process Simulation and Modeling with IT

5. Business Processes Management Systems as IT implementation of BPM

Page 3: INFORMATION TECHNOLOGIES AS THE BASE OF THE BUSINESS PROCESS MANAGEMENT IMPLEMENTATION

Drivers Forcing Changes. Business Pressures

Drivers Forcing Changes. Drivers Forcing Changes. Business PressuresBusiness Pressures

• Business Pressures– Environmental– Organizational– Technological

• Business Response Activities– Information Systems & Strategic Management– Continues Improvement – Restructuring business processes– Customer Focus Strategy– Electronic Business

• Business Pressures– Environmental– Organizational– Technological

• Business Response Activities– Information Systems & Strategic Management– Continues Improvement – Restructuring business processes– Customer Focus Strategy– Electronic Business

Page 4: INFORMATION TECHNOLOGIES AS THE BASE OF THE BUSINESS PROCESS MANAGEMENT IMPLEMENTATION

IT Contributions to Digital Economy

IT Contributions to Digital IT Contributions to Digital EconomyEconomy

• E-Business: The use of electronic technologies to transact business.

• Collaboration: People and Organizations interact, communicate, collaborate and search for information

• Information Exchange: Storing, processing and transmission of information.

• E-Business: The use of electronic technologies to transact business.

• Collaboration: People and Organizations interact, communicate, collaborate and search for information

• Information Exchange: Storing, processing and transmission of information.

Page 5: INFORMATION TECHNOLOGIES AS THE BASE OF THE BUSINESS PROCESS MANAGEMENT IMPLEMENTATION

Introduction to BPMIntroduction to BPMIntroduction to BPM

• Companies are being asked to do more with less.

• How do business and IT executives manage such a broad range of activities across the enterprise, and between the enterprise and their customers and partners?

• Can they really hope to bring order to complex business processes that require the coordination of greater amounts of people, information, and transactions?

• Companies are being asked to do more with less.

• How do business and IT executives manage such a broad range of activities across the enterprise, and between the enterprise and their customers and partners?

• Can they really hope to bring order to complex business processes that require the coordination of greater amounts of people, information, and transactions?

Page 6: INFORMATION TECHNOLOGIES AS THE BASE OF THE BUSINESS PROCESS MANAGEMENT IMPLEMENTATION

Introduction to BPMIntroduction to BPMIntroduction to BPM

• The first rule of any technology is that automation applied to an efficient operation will magnify the efficiency.

• The second is that automation applied to an inefficient operation will magnify the inefficiency.

Bill Gates, Microsoft Corporation

• The first rule of any technology is that automation applied to an efficient operation will magnify the efficiency.

• The second is that automation applied to an inefficient operation will magnify the inefficiency.

Bill Gates, Microsoft Corporation

Page 7: INFORMATION TECHNOLOGIES AS THE BASE OF THE BUSINESS PROCESS MANAGEMENT IMPLEMENTATION

Introduction to BPM cont.Introduction to BPM Introduction to BPM cont.cont.

• Business Process Management is the conception, design, observation and continuous improvement of business processes.

• Improved business performance is delivered by streamlining to remove inefficiency and redundancy that has evolved in a manually designed processes.

• Business Process Management is the conception, design, observation and continuous improvement of business processes.

• Improved business performance is delivered by streamlining to remove inefficiency and redundancy that has evolved in a manually designed processes.

“To improve is to change; to be perfect is to change often.”Winston Churchill

“To improve is to change; to be perfect is to change often.”Winston Churchill

Page 8: INFORMATION TECHNOLOGIES AS THE BASE OF THE BUSINESS PROCESS MANAGEMENT IMPLEMENTATION

The primary goals of the BPMS

The primary goals of the The primary goals of the BPMSBPMS

• According to Gartner Analyst Jim Sinur in 2007, business organizations saved from 10 to 20% of outcomes because of BPMS.

• BPM eliminates the stovepipes in an organization —bridges the gaps among people and systems, allowing organizations to automate.

• BPM align people and resources to achieve organizational goals, and connect the enterprise with customers and partners.

• Enterprises which do not incorporate BPM’s benefits, will lose out on the agility and flexibility that is beginning to characterize 21st-century business

• According to Gartner Analyst Jim Sinur in 2007, business organizations saved from 10 to 20% of outcomes because of BPMS.

• BPM eliminates the stovepipes in an organization —bridges the gaps among people and systems, allowing organizations to automate.

• BPM align people and resources to achieve organizational goals, and connect the enterprise with customers and partners.

• Enterprises which do not incorporate BPM’s benefits, will lose out on the agility and flexibility that is beginning to characterize 21st-century business

Page 9: INFORMATION TECHNOLOGIES AS THE BASE OF THE BUSINESS PROCESS MANAGEMENT IMPLEMENTATION

Business Process Requirements

Business Process Business Process RequirementsRequirements

General process requirements:• Organizational model • Control flow • Data flow • Use cases • Collaboration diagrams

Particular process requirements:• When an activity executes • How often it will execute • Under what conditions it will end.

General process requirements:• Organizational model • Control flow • Data flow • Use cases • Collaboration diagrams

Particular process requirements:• When an activity executes • How often it will execute • Under what conditions it will end.

Page 10: INFORMATION TECHNOLOGIES AS THE BASE OF THE BUSINESS PROCESS MANAGEMENT IMPLEMENTATION

Fundamentals of the BPMFundamentals of the BPMFundamentals of the BPM

The Business Process Management Initiative (BPMI – www.bpmi.org) has been established to promote and develop the use of BPM through the use of standards for process design, deployment, execution, maintenance, and optimization of processes.

The Business Process Management Initiative (BPMI – www.bpmi.org) has been established to promote and develop the use of BPM through the use of standards for process design, deployment, execution, maintenance, and optimization of processes.

Page 11: INFORMATION TECHNOLOGIES AS THE BASE OF THE BUSINESS PROCESS MANAGEMENT IMPLEMENTATION

Fundamentals of the BPMFundamentals of the BPMFundamentals of the BPM

• Business Process Modeling Notation (BPMN), as a standard for modeling business processes.

• Business Process Modeling Language (BPML), as the standard business execution language.

• Business Process Query Language (BPQL), a standard management interface for the deployment and execution of e-Business processes.

• Business Process Modeling Notation (BPMN), as a standard for modeling business processes.

• Business Process Modeling Language (BPML), as the standard business execution language.

• Business Process Query Language (BPQL), a standard management interface for the deployment and execution of e-Business processes.

BPMI has developed three standards to facilitate BPM:

BPMI has developed three standards to facilitate BPM:

Page 12: INFORMATION TECHNOLOGIES AS THE BASE OF THE BUSINESS PROCESS MANAGEMENT IMPLEMENTATION

Business Process Simulation and Modeling

Business Process Simulation Business Process Simulation and Modelingand Modeling

A business process model typically defines the following elements:

• The Goal or reason for the process;• Specific inputs;• Specific outputs;• Resources consumed;• Activities that are performed in some order;• Events that drive the process.

A business process model typically defines the following elements:

• The Goal or reason for the process;• Specific inputs;• Specific outputs;• Resources consumed;• Activities that are performed in some order;• Events that drive the process.

Page 13: INFORMATION TECHNOLOGIES AS THE BASE OF THE BUSINESS PROCESS MANAGEMENT IMPLEMENTATION

The Abstraction Concept in BPM

The Abstraction Concept in The Abstraction Concept in BPMBPM

Meta-MetamodelMeta-Metamodel

MetamodelMetamodel

ModelModel

InstanceInstance

Instance-ofInstance-of

Instance-ofInstance-of

Instance-ofInstance-of DescribesDescribes

DescribesDescribes

DescribesDescribes

NotationNotation

expressesexpresses

Levels of abstraction – from instance to model, to metamodel, …Levels of abstraction – from instance to model, to metamodel, …

Page 14: INFORMATION TECHNOLOGIES AS THE BASE OF THE BUSINESS PROCESS MANAGEMENT IMPLEMENTATION

BPMN – Graphical Description of the Process

BPMN BPMN –– Graphical Graphical Description of the ProcessDescription of the Process

BPMN Artfacts – categories and elementsBPMN Artfacts – categories and elements

Flow ObjectsFlow Objects ArtefatcsArtefatcs ConnectingConnecting

Events

Activities

Gateways

Data Object

Group

Annotation

Sequence FlowSequence Flow

Message FlowMessage Flow

AssociationAssociation

BPMN

Page 15: INFORMATION TECHNOLOGIES AS THE BASE OF THE BUSINESS PROCESS MANAGEMENT IMPLEMENTATION

BPMN Implementation Example

BPMN Implementation BPMN Implementation ExampleExample

Page 16: INFORMATION TECHNOLOGIES AS THE BASE OF THE BUSINESS PROCESS MANAGEMENT IMPLEMENTATION

Business Process Improvement (Re-engineering)

Business Process Business Process Improvement (ReImprovement (Re--engineering)engineering)

A general model of BPI involves the following steps:

• Develop the Business Vision and Process Objectives.

• Identify the Processes to be Improved.• Understand and Measure the Existing

Processes.• Identify Information Technology Levers.• Design and Build a Prototype of the New

Process.

A general model of BPI involves the following steps:

• Develop the Business Vision and Process Objectives.

• Identify the Processes to be Improved.• Understand and Measure the Existing

Processes.• Identify Information Technology Levers.• Design and Build a Prototype of the New

Process.“BPI is the re-design of existing business operations to achieve

significant production improvement.”“BPI is the re-design of existing business operations to achieve

significant production improvement.”

Page 17: INFORMATION TECHNOLOGIES AS THE BASE OF THE BUSINESS PROCESS MANAGEMENT IMPLEMENTATION

Business Processes and Software Solutions

Business Processes and Software Solutions

IBM WebSphere Studio – Business IntegrationIBM WebSphere Studio – Business Integration

Page 18: INFORMATION TECHNOLOGIES AS THE BASE OF THE BUSINESS PROCESS MANAGEMENT IMPLEMENTATION

Business Processes and Software Solutions

Business Processes and Software Solutions

IBM WebSphere Studio – Business IntegrationIBM WebSphere Studio – Business Integration

• J2EE environment makes services available as Web services.

• Java components such as EJBs can be rendered as WSDL.

• provides the basic machinery for publishing intraenterprise business components as Web services

• J2EE environment makes services available as Web services.

• Java components such as EJBs can be rendered as WSDL.

• provides the basic machinery for publishing intraenterprise business components as Web services

Page 19: INFORMATION TECHNOLOGIES AS THE BASE OF THE BUSINESS PROCESS MANAGEMENT IMPLEMENTATION

Business Processes and Software Solutions

Business Processes and Software Solutions

Intalio BPMS DesignerIntalio BPMS Designer

Page 20: INFORMATION TECHNOLOGIES AS THE BASE OF THE BUSINESS PROCESS MANAGEMENT IMPLEMENTATION

Business Processes and Software Solutions

Business Processes and Software SolutionsIntalio BPMS Designer:Intalio BPMS Designer:

• Intalio is standards based – BPEL 2.0, BPMN, XForms, WSDL .

• Intalio has been around almost 8 years and has only focused on BPM. .

• Business and IT alignment – The fact that Intaliohas zero code that can be used both by business analyst and IT personnel

• Intalio is open source• Enterprise strength • Support for existing platforms (Websphere,

JBoss, Sun, …).

• Intalio is standards based – BPEL 2.0, BPMN, XForms, WSDL .

• Intalio has been around almost 8 years and has only focused on BPM. .

• Business and IT alignment – The fact that Intaliohas zero code that can be used both by business analyst and IT personnel

• Intalio is open source• Enterprise strength • Support for existing platforms (Websphere,

JBoss, Sun, …).

Page 21: INFORMATION TECHNOLOGIES AS THE BASE OF THE BUSINESS PROCESS MANAGEMENT IMPLEMENTATION

Business Processes and Software Solutions

Business Processes and Software Solutions

Oracle Business Process ManagementOracle Business Process Management

Page 22: INFORMATION TECHNOLOGIES AS THE BASE OF THE BUSINESS PROCESS MANAGEMENT IMPLEMENTATION

Business Processes and Software Solutions

Business Processes and Software Solutions

Oracle Business Process Management:Oracle Business Process Management:

• Model & Simulate• Model & Simulate Business Requirements to Analyze your

Business Processes

• Implement & Deploy, Execute• Generate an Outline Model of Business Requirements &

Business Process• Use Tools to Integrate the Business Process with

Interfaces or Services of Existing Systems & Applications• Implement Business Process; Define Business Rules

Associated with Process; and Map Data

• Monitor & Optimize• Make Processes visible for End Users; Monitor

• Model & Simulate• Model & Simulate Business Requirements to Analyze your

Business Processes

• Implement & Deploy, Execute• Generate an Outline Model of Business Requirements &

Business Process• Use Tools to Integrate the Business Process with

Interfaces or Services of Existing Systems & Applications• Implement Business Process; Define Business Rules

Associated with Process; and Map Data

• Monitor & Optimize• Make Processes visible for End Users; Monitor

Page 23: INFORMATION TECHNOLOGIES AS THE BASE OF THE BUSINESS PROCESS MANAGEMENT IMPLEMENTATION

ConclusionConclusion• It’s important to remember that IT plays supportive role in BPM, but without IT, most BMP and BPR efforts do not success.• If you can't describe what you are doing as a process, you don't know what you're doing.• It’s important to keep in mind that this process will be managed by people. • Business Process Management is suppose to save time and resources in an organization and should be approached with that principle in mind.• Any business process improvement project is an attempt to answer the fundamental question of "How do we organize our activities so that we can minimize inputs, maximize outputs, and maximize value?"

• It’s important to remember that IT plays supportive role in BPM, but without IT, most BMP and BPR efforts do not success.• If you can't describe what you are doing as a process, you don't know what you're doing.• It’s important to keep in mind that this process will be managed by people. • Business Process Management is suppose to save time and resources in an organization and should be approached with that principle in mind.• Any business process improvement project is an attempt to answer the fundamental question of "How do we organize our activities so that we can minimize inputs, maximize outputs, and maximize value?"