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Information Technologies as
  the Base of the Business
    Process Management
       Implementation



           Abzetdin Adamov, PhD
    Computer Systems and Networks Department
    Computer Systems and Networks Department
                Qafqaz University
                Qafqaz University
                Baku, Azerbaijan
                 Baku, Azerbaijan
Contents

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
Drivers Forcing Changes.
          Business Pressures

• Business Pressures
  – Environmental
  – Organizational
  – Technological
• Business Response Activities
  – Information Systems & Strategic Management
  – Continues Improvement
  – Restructuring business processes
  – Customer Focus Strategy
  – Electronic Business
IT Contributions to Digital
             Economy

• 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.
Introduction 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?
Introduction 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
                          Bill Gates, Microsoft Corporation
Introduction to BPM cont.
                              cont.



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

• 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.
The primary goals of the
                 BPMS

• 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
Business Process
               Requirements
    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.
Fundamentals 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.
Fundamentals of the BPM

    BPMI has developed three standards to
               facilitate 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 Simulation
               and 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.
The Abstraction Concept in
                         BPM
         Meta-Metamodel
         Meta-Metamodel


 Instance-of                Describes


               Metamodel
               Metamodel
                                                    Notation
                                                    Notation

 Instance-of                Describes
                                        expresses
                 Model
                 Model


 Instance-of                Describes


                Instance
                 Instance




Levels of abstraction – from instance to model, to metamodel, …
Levels of abstraction – from instance to model, to metamodel, …
BPMN – Graphical
Description of the Process
                   BPMN


Flow Objects
Flow Objects       Artefatcs
                   Artefatcs       Connecting
                                   Connecting


                                  Sequence Flow
                     Data
  Events            Object


                                  Message Flow
 Activities
                    Group

                                   Association
  Gatew
   ays             Annotation




   BPMN Artfacts – categories and elements
   BPMN Artfacts – categories and elements
BPMN Implementation
     Example
Business Process
        Improvement (Re-engineering)
                    (Re-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.
      “BPI is the re-design of existing business operations to achieve
      “BPI is the re-design of existing business operations to achieve
                                 significant production improvement.”
                                 significant production improvement.”
Business Processes and
  Software Solutions




   IBM WebSphere Studio – Business Integration
   IBM WebSphere Studio – Business Integration
Business Processes and
         Software Solutions
IBM 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
Business Processes and
  Software Solutions




             Intalio BPMS Designer
             Intalio BPMS Designer
Business Processes and
          Software Solutions
           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 Intalio
  has 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, …).
Business Processes and
  Software Solutions




       Oracle Business Process Management
       Oracle Business Process Management
Business Processes and
           Software Solutions
    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
Conclusion
• 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?"

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INFORMATION TECHNOLOGIES AS THE BASE OF THE BUSINESS PROCESS MANAGEMENT IMPLEMENTATION

  • 1. Information Technologies as the Base of the Business Process Management Implementation Abzetdin Adamov, PhD Computer Systems and Networks Department Computer Systems and Networks Department Qafqaz University Qafqaz University Baku, Azerbaijan Baku, Azerbaijan
  • 2. Contents 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
  • 3. Drivers Forcing Changes. Business Pressures • Business Pressures – Environmental – Organizational – Technological • Business Response Activities – Information Systems & Strategic Management – Continues Improvement – Restructuring business processes – Customer Focus Strategy – Electronic Business
  • 4. IT Contributions to Digital Economy • 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.
  • 5. Introduction 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?
  • 6. Introduction 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 Bill Gates, Microsoft Corporation
  • 7. Introduction to BPM cont. cont. “To improve is to change; to be perfect is to change often.” “To improve is to change; to be perfect is to change often.” Winston Churchill Winston Churchill • 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.
  • 8. The primary goals of the BPMS • 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
  • 9. Business Process Requirements 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.
  • 10. Fundamentals 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.
  • 11. Fundamentals of the BPM BPMI has developed three standards to facilitate 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.
  • 12. Business Process Simulation and 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.
  • 13. The Abstraction Concept in BPM Meta-Metamodel Meta-Metamodel Instance-of Describes Metamodel Metamodel Notation Notation Instance-of Describes expresses Model Model Instance-of Describes Instance Instance Levels of abstraction – from instance to model, to metamodel, … Levels of abstraction – from instance to model, to metamodel, …
  • 14. BPMN – Graphical Description of the Process BPMN Flow Objects Flow Objects Artefatcs Artefatcs Connecting Connecting Sequence Flow Data Events Object Message Flow Activities Group Association Gatew ays Annotation BPMN Artfacts – categories and elements BPMN Artfacts – categories and elements
  • 16. Business Process Improvement (Re-engineering) (Re-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. “BPI is the re-design of existing business operations to achieve “BPI is the re-design of existing business operations to achieve significant production improvement.” significant production improvement.”
  • 17. Business Processes and Software Solutions IBM WebSphere Studio – Business Integration IBM WebSphere Studio – Business Integration
  • 18. Business Processes and Software Solutions IBM 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
  • 19. Business Processes and Software Solutions Intalio BPMS Designer Intalio BPMS Designer
  • 20. Business Processes and Software Solutions 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 Intalio has 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, …).
  • 21. Business Processes and Software Solutions Oracle Business Process Management Oracle Business Process Management
  • 22. Business Processes and Software Solutions 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
  • 23. Conclusion • 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?"