Busines case - BPM and Data management presentation - May 2007

1

AXA Investment ManagersBPM – Business Process Management

Strategy & ArchitectureArchitecture and BPM: IT principlesMay 2007

2

Agenda

Focus on SOA ProgrammeFocus on SOA Programme2 2 Among the main architectural programmes, focus on the SOA programme

BPM conceptsBPM concepts3 3 Introduction to BPM concepts and principles – difference between BPM and Workflow - BPMS

Possible next stepsPossible next steps4 4 The possible next steps and the link with other initiatives

Architectural approachArchitectural approach11 Presentation of the architectural approach and the main programmes

AppendicesAppendices5 5 Additional material

3

Architectural driversCommon agreed architectural approach

Production or operational systems are in charge of storing and producing data

Data are then enriched and processed by an integration layer to become information. The integration layer uses extensively SOA and BPM concepts

The information are distributed to end-users, systems or clients via channels and media

This model promotes multi-channels and multi-factory systems and speed-up the time to market

Media ChannelProduction Systemsintegration

Business Hub

Multi-channel support

Multi-producer support

ProcessComponents

ResourceComponents

Client

Portfolio creation

Fund

… Product

Risk mgmt

…

ProductionDistribution

Internal system

Group system

External system

Production database

Production database

Production database

Enterprise Service Bus & BPM

Distribution database

Front-office system

B2B system

Client system

Today, a common architectural approach for implementing systems is Today, a common architectural approach for implementing systems is widely agreedwidely agreed

4

Data

Pro

cess

Serv

ice

AXA IM’s Architecture enablersThe three main programmes

ENTERPRISE SERVICE BUS

Fund Galaxy

SOAP/HTTP

Excel

SOAP/HTTP

TFM

TFM/MQ

State Street (Partner)

Web Service(Other)

SOAP/HTTP SOAP/HTTP

Other

XML/MQ

BPM : Business Process Management

SOA : Service Oriented Architecture

DM : Data Management

Steps:1/ Process modelling2/ Process monitoring3/ Process automation

Steps:1/ Standardized exchanges2/ ESB3/ Orchestration

Steps:1/ Master Data Management 2/ Business Activity Monitoring

Based on the previous general approach, BPM, SOA and DM are the 3 Based on the previous general approach, BPM, SOA and DM are the 3 main enablers of AXA IM’s IS architecturemain enablers of AXA IM’s IS architecture

Global connectivityService enablementService registryTechnical monitoring

Process repositoryProcess reportingOrchestration

Data Master FilesInformation managementBusiness reporting

Media ChannelProduction Systemsintegration

Business Hub

Multi-channel support

Multi-producer support

ProcessComponents

ResourceComponents

Client

Portfolio creation

Fund

… Product

Risk mgmt

…

ProductionDistribution

Internal system

Group system

External system

Production database

Production database

Production database

Enterprise Service Bus & BPM

Distribution database

Front-office system

B2B system

Client system

5

BAMBAM

Data Vendors

DALI’S

Process Repository (Mega)Process Repository (Mega)

BPMBPM

DecalogDecalog

Counterparty Risk & VAR


Constraint Server

Constraint Server

Allocation managementAllocation

management

IDBIDB

QDBQDB

MIRHMIRH

Cash MgtCash Mgt

Stock lending & Repository


Perf AttribPerf Attrib

Business applications

SecuritySecurity

Batch management

Batch management

Enterprise DirectoryEnterprise Directory

ReportingReporting

eMaileMail

TFMTFM

Technical applicationsDMTEQ

FI

MM

BAL

SF

FHF

StructP

PE

DMTEQ

FI

MM

BAL

SF

FHF

StructP

PE

CTP SMF P&P NAV T&H

ESB

Busines

s Rule

s Engin

e

Service Repository

Back-Office(SSC)

Proce

ss &

in

form

atio

nSe

rvic

e & d

ata

Capco Markit

Bloomberg

Architecture view on LTOMArchitecture view on LTOM

AXA IM’s view on Enterprise ArchitectureFrameworks

Business Interface Channels

Corporate Services

(Back Office)

Target Reference Architecture Domains

Phone/IVR/VRUPhone/IVR/VRU WirelessWirelessHTTP://HTTP://WebHTTP://HTTP://Web MailMail

@@Email

@@Email FaxFax

ClientsClients Financial Professionals

Financial Professionals CSRsCSRs

3 rd Party Providers

3 rd Party Providers EmployeesEmployees ShareholdersShareholders PublicPublic

B2B

IT Capabilities and Management

IT Infrastructure

Enterprise Data

Shared Business Services

CoreServices

Enterprise Integration Bus

Portal

Business Process Management

EnterpriseContent Management

ODS – DWH – BI – DataMarts

AdaptersAdaptersAdaptersAdaptersAdaptersAdaptersAdaptersAdaptersAdaptersAdaptersAdaptersAdaptersAdaptersAdaptersAdaptersAdaptersAdaptersAdapters

Presentation Integration

Layer (Frontplane)

Business Choreography

Layer (Crossplane)

Enterprise Integration

Layer (Backplane)

Point solutions

Legacy*


Constraint Server

Allocation management

IDB QDB MIRH

Cash Mgt


Perf Attrib

CTP SMF P&P NAV T&HCTP SMF P&P NAV T&H

Data Vendors

Secu

rity

Batch management

Enterprise Directory

ReportingReporting

eMail

TFM

CapcoCapco MarkitMarkit BloombergBloomberg

ESB

BAMBAM

Process Repository (Mega)Process Repository (Mega) BPMBPM

Back-Office (SSC)

DMTEQ

FI

MM

BAL

SF

FHF

StructP

PE

DMTEQEQ

FIFI

MMMM

BALBAL

SFSF

FHFFHF

StructPStructP

PEPE

These frameworks are used as IT enablers for Ambition These frameworks are used as IT enablers for Ambition 2012 in AXA IM2012 in AXA IM

ESB

Draft - IT

princip

les

6

AXA IM’s Architecture enablersThe three main programmes along with the framework

BAM

Data Vendors

DALI’S

Process Repository (Mega)

BPM

Decalog

Counterparty Risk &

VAR

Constraint Server

Allocation managemen

t

IDB

QDB

MIRH

Cash Mgt


Perf Attrib

Business applications

Security

Batch managemen

t

Enterprise Directory

Reporting

eMail

Technical applications

*Deca

log

for

inst

an

ce

DMTEQ

FI

MM

BAL

SF

FHF

Struct P

PE

CTP SMF P&P NAV T&H

ESB

Bu

sin

es

s r

ule

s

en

gin

e

Service Repositor

y

Pro

cess &

in

form

ati

on

Serv

ice &

data

TFM

Back-Office(SSC)

Capco Markit

Bloomberg

BPM Programme

SOA Programme DM Programme

Orc

hest

ration

Enab

le

Feed

BAM

Provide data

Distribution

BPM, SOA and DM are BPM, SOA and DM are strongly linked and strongly linked and consistentconsistent

Dat

a

Proce

ssSe

rvic

e


Fund Galaxy

SOAP/HTTP

Excel

SOAP/HTTP

TFM

TFM/MQ


Web Service(Other)

SOAP/HTTP SOAP/HTTP

Other

XML/MQ







ESB

Draft - IT

principles

7

ProcessProcess


Fund Galaxy

SOAP/HTTP

Excel

SOAP/HTTP

TFM

TFM/MQ


Web Service(Other)

SOAP/HTTP SOAP/HTTP

Other

XML/MQ

ServiceService DataData

Process ModellingModel business processes in a standard way and help generate standard process description languages

Process MonitoringCheck that processes are adapted, robust and efficient

Process ExecutionExecute process automatically and enable workflows using a workflow engine

Standard Based ExchangesAllows standardized point-to-point communication between systems through widely accepted open standards

Enterprise Service BusAllows a network of disparate systems to interact as one unified enterprise system by resolving differences in system HW, SW, networks, and location

OrchestrationAllows automated integration of separate services to create integrated enterprise level business processes

Business Activity MonitoringProvides End-to-End process performance monitoring (Real-time) insight and control of business

Master Data ManagementAllows the management of the quality and the consistency of the data located in various databases and enterprise systems. Further enables governance and clear ownership over data

To

uch

po

int

Ste

ps

In progress

In progress

In progress

AppendicesConvergence between Process, Service and Data

In progress

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Agenda






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SOA reminderDefinition

Service Oriented Architecture is an approach to distributed computing that thinks of software resources as services available on the network. SOA encompasses both a design and development technology as well as an approach to addressing business problems.

Common business-level services are deployed and reused across the enterprise

Process orchestration is used to assemble business services into a business process

A Service-Oriented Architecture (SOA) is an architecture that defines how separate business functions implemented by autonomous systems interoperate to execute a business process.

Services are developed once, reuse is enforced, and costly “code proliferation” is reduced

Future applications “plug-in” to existing services using standard technology; integration and connectivity efforts are reduced.

Services

Solutions

DALI’s Data Minerva

Get Broker

Other DataDecalog

Get Product Get Client Get NAV Get SMF

Operational Systems

TFM

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SOA Foundation

SOA roadmap in AXA IMSOA implementation in AXA IM

Standard-basedCommunicationWeb Services XML, SOAP, MQ…

Allows standardizedpoint-to-point communication

between systems throughwidely accepted open standards.

BPOBusiness Process Orchestration

Allows automated integrationof separate services to

create integrated enterprise level business processes.

ESBEnterprise Service Bus

Allows a network of disparate systems to interact as one unified enterprise systemby resolving differences insystem HW, SW, networks,

and location.

BAMBusiness Activity Monitoring

Provides End-to-End processperformance monitoring

(Real-time) insight and controlof business.

The 4 major technology enablers behind SOA and their business value : Level of sophistication and SOA enablement

Process Excellence


Fund Galaxy

SOAP/HTTP

Excel

SOAP/HTTP

TFM

TFM/MQ


Web Service(Other)

SOAP/HTTP SOAP/HTTP

Other

XML/MQ

BPMBusiness Process Management

MDMMaster Data Management

Achieved in 2006 Multi-year

programme

Started in 2006

Appian BPMS

selected in April 2007Multi-year prog

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SOA enablement scenario (1/4)

Application 1

BL

BLBL

BL

Thin Client

Front End Application 2

Application 2

BL

BLBL

BL

DB

.Net

remoting

RMI

MQ Series

Flat File

Fat Client


BLBL

1

BL : Business LogicDB : DatabaseSR : Service RepositoryBP : Business ProcessSC : Service ComponentS : Service

Service OrientedApplication Structure

BP

S

SC

D

SC

S S S

BP

Enterprise Service Bus (ESB)

Portal

BAM

BusinessRules

Engine

BP

SC

SC

D

S

S S S

SS

SS

Business

Process Management

BP BP BP

SR

Enterprise Data Model

ESB Messaging, Transformation, Repository

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IS Initial state

ESB enablementFull SOA - Orchestration and BAM -

2 Standard-based communications

App 1

BL

BLBL

BL

Frond End 1

BLBL

Front End 2

App 2

BL

BLBL

BL

Flat File

Service

Bus

(local)

Wrapper

Thin ClientFat Client

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Agenda






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“A business process is the complete and dynamically coordinated set of collaborative and transactional activities that deliver value to customers”

Business Process Management (BPM) defines, enables and manages the exchanges of business information on a basis of a process view that incorporates employees, customers, partners, applications and databases

Business Process Management is a set of services, tools and methodologies that provide for the explicit analysis, design, execution and monitoring and administration of automated business processes, including support for human- and application-level interaction

Definitions adapted from:-“Business Process Management – The 3rd Wave” : By Howard Smith and Peter Fingar. - Darcy Fowkes, Research Practice Director, Aberdeen Group- Gartner: “Business Process Management Preliminary Market Size and Forecast”

BPM introductionDefinitions

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BPM introductionBPM drivers

Business Process Management is related to Business activities, and for basic needs can be managed without any IT systems

To leverage full benefits of the BPM, dedicated IT systems are needed

Maturity of BPM

IT I

nvolv

em

en

t (l

evel of

au

tom

ati

on

)

I want to do process modelling

I want to certify my processes

Needs and objectives

I want to analyse my processes

I want to monitor my processes on a regular basis

I want to optimize my Business efficiency

I want to pilot my processes in real-time

I want to manage my operational risks

I want to use processes for conducting the change

I want to align my IS with my processes

I want to manage my projects using processes

I want to rationalize the IS using processes

I want to promote a service approach

I want to automate my processes

I want to do city planning

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BPM introductionTechnical solutions to enable BPM

BPM can be enabled using various solutions:Solution Definition Limitations

Workflow product (standalone)

EAI (Enterprise Application Integration)

Workflow framework

Information Management tools

BRE (Business Rules Engines)

BPMS (BPM Suite)

A workflow product allow automatic coordination of tasks realized by humans (e.g. Advantys WorkflowGen)

The EAI allow the collaboration between applications to implement business objectives

A workflow framework allow the implementation of workflow features in a system (e.g. Microsoft WF)

IM tools are dedicated to handle documents and digital assetsBRE are dedicated to design complex business rules in order to automate them (e.g. OpenRules)

The process participants are mainly humans. The integration of the Workflow product to the IS is usually complex and limited to documents and tasks handling

Good answer to integration issues but the process management is often proprietary and disconnected from the integration capabilities. The processes are designed at a technical level. The human users can not be part of the process (thus a Workflow-type approach is very complex)

A workflow framework has the same limitations of a Workflow product, in addition to the need for re-inventing the wheel through programming

IM tools are very powerful for document-based interaction between human or systems, but are very limited to handle other elements like servicesBRE are mandatory to automate Business Processes but are totally unable to handle processes. They must be coupled with a solution to handle Business Processes

BPMS is a set of tools allowing complete management of Business Processes: modelling, monitoring, execution, administration, analysis…

If used properly (i.e. not as a Workflow solution) BPMS are heavy solutions having impacts on Architecture and organization

Business Process Repository

A BPR allow the modelling and the consultation of processes (e.g. MEGA)

A BPR is useful to centralize and make accessible processes through portal for example but does not make any advanced process management activity.

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BPM introductionBPMS – Business Process Management Suite

Business Activity Monitoring

Process design & modelling

Process execution & coordination

Process monitoring

BP

MS

en

gin

e

BPMS allow to unify under only one tool all the previous visions. The objective is to allow the decision makers, analysts, functional teams and technical teams to collaborate for the definition and the evolution of the Business Processes via only one tool aggregating the various visions.

Work management

Metrics modeller

Process Administration

Process Repository

End user interaction

Business rules execution

Process simulation

Process analysis

(Appian view on BPMS)

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The BPM bring Business benefits: Control over our Business through shared and reusable Processes Ability to simulate new processes before implementing them Technical and Business reporting (real-time or not) over the activity Improvement of the quality of service through bottlenecks reduction Improved efficiency due to a more structured activity Improved agility, due to reduced delay in implementing new processes Cost reduction via re-usability Meet our legal constraints (traceability…) User satisfaction due to the automation of basic activities

The BPM brings IT benefits as well: Opening of the IT systems to business analysts The BPM draw a link between Services, Data and Processes The BPM allow the centralization of the processes in one environment,

instead of having fragmented processes in applications The BPM allow orchestration of services and thus enable the next step of

our SOA programme The BPM allow a better control over flows, operations and processing, and

thus improve the Information Security

BPM benefitsGeneral and technical benefits

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BPM Suite solve the problem of embedded process logic by abstracting the integration and process automation logic into a new layer of software tools. These software products liberate integration and process tasks from the underlying functional IT applications so they can be more effectively changed, managed and optimized

BPM benefitsCentralization of the Business Process

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Dat

a

Proce

ssSe

rvic

e


Fund Galaxy

SOAP/HTTP

Excel

SOAP/HTTP

TFM

TFM/MQ


Web Service(Other)

SOAP/HTTP SOAP/HTTP

Other

XML/MQ







BPM benefitsLink between service, data and process

Process

Service Data

BPMS

Feed Manage

Orchestrate Feed

Provide Indicators

Enable

BPMS draw a link between services (SOA), data (DALI’s) and processes (BPM) and can be used to enable full benefits for these 3 programmes.

BPMS

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ProcessProcess


Fund Galaxy

SOAP/HTTP

Excel

SOAP/HTTP

TFM

TFM/MQ


Web Service(Other)

SOAP/HTTP SOAP/HTTP

Other

XML/MQ

ServiceService

DataData

Integration principles: A process is made up of activities

Each activity call one (or more) technical or business service through the ESB/BSB and identify the service with a Service Repository

Each service produces data to feed business or technical reports

The reports are then used to improve process efficiency and meet SLA

The BPM engine is also used to orchestrate services and to enable BAM

ESB

Start End

BPM engine

DALI’S referential

BAM engine

ActivityProcess

Technical or business services providers / consumers

Service repository

(Orchestration)

Message handling

Business & Technical data

Business data

Reports

BPM in AXA IMintegrating BPMS and ESB

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Agenda






22

BPM Next stepsAs Is and (possible) To Be

Maturity of BPM

IT I

nvolv

em

en

t (l

evel of

au

tom

ati

on

)

I want to do process modelling

I want to certify my processes

Needs and objectives

I want to analyse my processes

I want to monitor my processes on a regular basisI want to

optimize my Business efficiency

I want to pilot my processes in real-time

I want to manage my operational risks

I want to use processes for conducting the change

I want to align my IS with my processes

I want to manage my projects using processes

I want to rationalize the IS using processes

I want to promote a service approach

I want to automate my processes

I want to do city planning

Already achieved as of May 2007

Planned in 2007 (C&TP and Sesame)

Possible achievements in 2008+

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Agenda






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Application 1

BL

BLBL

BL

Thin Client


Application 2

BL

BLBL

BL

DB

.Net

remoting

RMI

MQ Series

Flat File

Fat Client


BLBL

1 IS Initial state Historically grown application environment with many point-to-point connections

Interfaces are based on different technologies and services expose application functionality with different levels of granularity

Every/most application has its own front end which very often are based on different technologies as well

Standards for connecting applications are defined (SOAP, XML, MQ…)

Interfaces based on those standards are implemented without changing the internal application structures (by using wrappers and proxies)

The business logic is exposed through services with the level of granularity required for reuse

Introduction of a service bus (ESB) as a central communication platform replacing point-to-point interfaces

2 Standard-based communications

App 1

BL

BLBL

BL

Frond End 1

BLBL

Front End 2

App 2

BL

BLBL

BL

Flat File

Service

Bus

(local)

Wrapper

Thin ClientFat Client

25


Service OrientedApplication Structure

BP

S

SC

D

SC

S S S

BP

Enterprise Service Bus (ESB)

3 ESB enablement

Portal

BAM

BusinessRules

Engine

BP

SC

SC

D

S

S S S

SS

SS

Business

Process Management

BP BP BP

SR

Enterprise Data Model

ESB Messaging, Transformation, Repository

4 Full SOA - Orchestration and BAM

Setup of a strong and reliable ESB infrastructure (active – active on Disaster Recovery Site).

Virtualisation of technical resources.

New applications are structured internally with “service orientation in mind“ so functionality can be exposed as services without large wrapper/proxy implementations and reused

The top layer of services of each type (process, logic, data) representing business processes, business logic and business data are being cut out of existing applications and moved to applications which allow for easy/fast changes

The same is done for technical services which are moved to the ESB

Front ends are consolidated in a portal application.

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Technology Infrastructure

Activity Monitoring and Administration Facility

BAM

Runtime Environment

Process Execution Engine

Process Analysis and Modeling Workbench

Business UsersBusiness Users Technical UsersTechnical Users AdministratorsAdministratorsProcess UsersProcess Users Business UsersBusiness Users

Simulations Engine

Simulations Engine

Flow Control

Flow Control Schedule

r

SchedulerRules

Engine

Rules Engine

Distributed BPM

Coordinator

Distributed BPM

Coordinator

DashboardDashboard

Analytics Engine

Analytics Engine

Process Administratio

n

Process Administratio

n

Event Manageme

nt

Event Manageme

nt

Business Process Modeler

Business Process Modeler

Technical Process Modeler

Technical Process Modeler

Business MetricsModeler

Business MetricsModeler

Technical Metrics Mapper

Technical Metrics Mapper

Dashboard Designer

Dashboard Designer

Enterprise Service Bus or other Transport Layer capabilitiesEnterprise Service Bus or other Transport Layer capabilities

RepositoryRepository

Integrated Development EnvironmentIntegrated Development Environment

Interface Manager

Interface Manager

BPM introductionBPMS – Business Process Management Suite

BPMS is transversal to all departments and provide direct access to Business users. Ideally, a common governance structure must be set between IT and Business

27

The move towards BPM supported by a Service Oriented Architecture can be driven by different business needs and follow different implementation strategies but will always focus on the process.

Top-down strategy Bottom-up strategy

Design and model end-to-end process

Simulate and optimize model Design and build interactions

with process participants (humans, applications and external businesses)

Build services to support process Interactions

Operate and monitor process

Refine end-to-end process by orchestrating sub-processes

Model and analyse end-to-end process

Execute and refine sub-processes

Design and build sub-processes to orchestrate built services

Expose application’s business functions by building services

Discover and Design of a process before moving on to manage it.

Integrate systems in order to implement, execute and refine a process.

AppendicesBPM and SOA