business process management systems pascal ravesteyn uu/hu - 2007

Business Process Management

Systems

Pascal RavesteynUU/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

IT organization Business organization

EAICASE

ERPUMLWorkflow

managementRules

enginesJava

B2Bi

webservicesAct. Based costing

ISO9001

Balanced ScorecardsCont. processimprovement

TQM

ValueChain

Kaizen

Six Sigma

So…

BPMS

A new software category that supports the entire lifecycle of modeling, executing, and monitoring business processes

What isBusiness Process Management

(System)

History BPMS

• Management Concepts:– Total Quality Management– Business Process Re-engineering– Business Proces Management– Etc.

• IT Innovations– Enterprise Resource Planning– Workflow Management– Enterprise Application Integration– Business Intelligence /Dashboard and portals– Etc.

Number Total Quality Management Business Process Reengineering 1 Process orientation Process orientation 2 Customer focus (intern and

extern) Customer focus (mainly external)

3 Support and commitment of employees and management

Support and commitment of employees and management

4 Requires cultural change Requires cultural change 5 Cross-functional teams to analyze

and resolve quality problems Cross-functional teams to redesign processes

6 Improve existing work processes Develop entirely new processes 7 Continuous change One-time project 8 Evolutionary change Project radical ness 9 Focus on individual process

activities Focus on core processes

10 Use of statistics to measure improvement

creative use of IT to enable new processes

11 'self-renewal learning' culture with all employees involved

As few people as possible should be involved in the performance of a process

Table 1 based on Jarrar and Aspinwall (1999); Hackman and Wageman (1995)

Root Characteristic BPR Focus on external customers BPR Process descriptions (graphical) TQM Measurement and control of process performance TQM Continuous optimization of processes BPR Implementation of automated processes across functional

departments TQM / BPR Culture change Systematic automation of core business processes by integrating all

software applications that support these processes Table 2 Characteristics of Business Process Management

Databases

Back e

nd \

Sys

tem

sLaye

r

Self-Generating Integration

SAP usingjava

API

WebService

API

Excel using com

API

MSMQ usingcom or java

API

Databases usingjdbc

API

Busin

ess

Rule

sLaye

r

Production Business Level

Objects

Business Level Objects

InvoicesBusiness Level

Objects

AFE’sBusiness Level

ObjectsAnything


Pro

cess

Laye

r

Any Process

General Workflow System and User InteractionsCalculation

Inte

rface

Laye

r

Web Service

Presentation Presentation

XML

API

Back e

nd \

Sys

tem

sLaye

r


SAP usingjava

API

SAP usingjava

API

WebService

API

WebService

API

Excel using com

API

Excel using com

API


API


API

Databases usingjdbc

API

Databases usingjdbc

API

Busin

ess

Rule

sLaye

r


Objects



Objects


ObjectsAnything


Pro

cess

Laye

r

Any Process


Inte

rface

Laye

r

Web Service

PresentationPresentation PresentationPresentation

XML

API

XML

API

BPMS

TQM

General WorkflowBPR

BPM

time

ERP

WFMEAI

‘85 ‘90 ‘95 ‘05‘00‘98DatabasesDatabases

Back e

nd \

Sys

tem

sLaye

r


SAP usingjava

API

WebService

API

Excel using com

API


API

Databases usingjdbc

API

Busin

ess

Rule

sLaye

r


Objects



Objects


ObjectsAnything


Pro

cess

Laye

r

Any Process


Inte

rface

Laye

r

Web Service


XML

API

Back e

nd \

Sys

tem

sLaye

r


SAP usingjava

API

SAP usingjava

API

WebService

API

WebService

API

Excel using com

API

Excel using com

API


API


API

Databases usingjdbc

API

Databases usingjdbc

API

Busin

ess

Rule

sLaye

r


Objects



Objects


ObjectsAnything


Pro

cess

Laye

r

Any Process


Inte

rface

Laye

r

Web Service


XML

API

XML

API

BPMS

Back e

nd \

Sys

tem

sLaye

r


SAP usingjava

API

WebService

API

Excel using com

API


API

Databases usingjdbc

API

Busin

ess

Rule

sLaye

r


Objects



Objects


ObjectsAnything


Pro

cess

Laye

r

Any Process


Inte

rface

Laye

r

Web Service


XML

API

Back e

nd \

Sys

tem

sLaye

r


SAP usingjava

API

SAP usingjava

API

WebService

API

WebService

API

Excel using com

API

Excel using com

API


API


API

Databases usingjdbc

API

Databases usingjdbc

API

Busin

ess

Rule

sLaye

r


Objects



Objects


ObjectsAnything


Pro

cess

Laye

r

Any Process


Inte

rface

Laye

r

Web Service


XML

API

XML

API

BPMS

TQMTQM

General WorkflowBPR

General WorkflowBPR

BPMBPMBPM

time

ERPERP

WFMWFMEAIEAI

‘85 ‘90 ‘95 ‘05‘00‘98

Ravesteyn, 2007

History of SOA

Program

ming

languageD

istributiontechnology

Business

computing

Content: data & Business logic

Remote access &infrastructure

ImplementationPlatform, interfacing

Techniques interaction patterns

Service O

riented

Arch

itecture

1950 19801960 1970 1990 2000

Mainframe

Batch processing

Assembler

COBOL

Databases

SQL

SIMULA

Pascal

VT3270

VT100

Visicalc R/2

IBM PC

TCP/IPsockets

RPC

Client/Server

CORBA

NFS

EAI

WWW

EJB

MQ

SOAP

WSDL

EAI

R/3

Data Warehouse

WWW

BPM

Modula2

Smalltalk

PROLOG

Ada

C++

Java

C#

.NET

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 initiateall business processes and ultimately receive their results (e.g. GUI)

Classification of Services (2)

Basic ServicesIntermediairy Services

Process-centric services

Public Enterprise services

Description

simple data or logic centric services

technology gateways, adapters and functionality adding services

encapsulate process logic

service shared with other enterprises or partner organizations

Implementation complexity low to moderate moderate to high high service specificState management stateless stateless stateful service specificReusability high low low highFrequency of change low moderate to high high lowMandatory element of SOA yes no no no

Krafzig et al. 2005

BPMS ArchitectureExample - 1

Back e

nd \

Sys

tem

sLaye

r


SAP usingjava

API

WebService

API

Excel using com

API


API

Databases usingjdbc

API

Busin

ess

Rule

sLaye

r


Objects



Objects


ObjectsAnything


Pro

cess

Laye

r

Any Process


Process Designer

Web Work Portal/ Forms/ WSDL

Component Manager

Existing Systems

Inte

rface

Laye

r

Web Service


XML

API

Back e

nd \

Sys

tem

sLaye

r


SAP usingjava

API

SAP usingjava

API

WebService

API

WebService

API

Excel using com

API

Excel using com

API


API


API

Databases usingjdbc

API

Databases usingjdbc

API

Busin

ess

Rule

sLaye

r


Objects



Objects


ObjectsAnything


Pro

cess

Laye

r

Any Process


Process Designer

Web Work Portal/ Forms/ WSDL

Component Manager

Existing Systems

Inte

rface

Laye

r

Web Service


XML

API

XML

API

Enterprise Applications (ERP + others)

Enterprise Service Bus (ESB)

Business Process Management (BPM)

Business Activity Monitoring (BAM)

Role Based Presentation + Applications (CAF)

BPMS ArchitectureExample - 2

Market Overview

“The Forrester Wave™: Integration-Centric Business Process Management Suites”

(Q4, December 20, 2006)

When to use BPMS

low

low high

high

Frequencyof change

Complexity ofcoordination

BPMS

EAI

Applicationserver

Krafzig et al. 2005

Maturity of SOA in relation to Business Integration

maintainability

flexibility

agility

Scope ofBusiness integration

Maturity of SOA

Not feasible

Not

cos

t-ef

fect

iveProcess

enabled

networked

fundamental

Intra departmental

Crossdepartmental

Cross Bus. unit

Simple B2B

ComplexProcessesintegration

Intra enterprise

Cross-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 OtherNumber ARTICLE

1 Aalst (2002) X2 Aalst, et al(2003) X X X3 Aalst, Hee (2004) X4 Aguilar-Savén, Ruth (2004) X X5 Al-Mashari, Zairi (1999) X6 Anzböck, Dustdar (2005) X7 Arkin(2002) X8 Armistead (1996) X X9 Armistead, Machin (1997) X X

10 Aversano, et al (2002) X X11 Becker, et al (2003) X12 Bhatt, Stump (2001) X X13 Bhatt, Troutt (2005) X X14 Box, Platts (2005) X15 Burlton (2001) X16 Çakular, Wijngaarden (2002) X17 Chang (2006) X18 Cunningham, Finnegan (2004) X X19 Datastream (2005) X20 Davenport (2000) X21 Deming (1982) X22 Dennis, et al (2006) X23 Es, et al (2005) X24 Fremantle, et al (2002) X X25 Georgakopoulos (1999) X X26 Grefen, De Vries (1998) X27 Gulledge, Sommer (2002) X X28 Hammer, Champy (2001) X29 Harrington (1995) X30 Hill (1999) X X31 Hillegersberg, et al (2004) X X32 Informatica (2005) X33 Ishikawa (1986) X34 Jablonski (1995) X35 Jarrar, Aspinwall (1999) X X36 Jeston, Nelis (2006) X37 Jeston, Nelis (2006) X38 Juopperi, et al (1995) X39 Juran (1945) X40 Juran (1951) X41 Karagiannis (1995) X42 Kettinger, et al (1997) X43 Khoshaflan (2006) X44 Kim, Ramkaran (2004) X X45 Klen, et al (2001) X X46 Kobayashi (2003) X X47 Koedijk, Verstelle (1999) X48 Kuo (2004) X49 Laudon, Laudon (2000) X50 Lee, Dale (1998) X

Conceptueel Empirisch

Th

eore

tisc

h

Mo

del

mat

ig

Cas

e st

ud

ies

Su

rvey

s

SC

IEN

TIF

IC M

ET

HO

D

Wet

ensc

hap

pel

ijk

To

egep

ast

(co

nsu

ltan

cy g

eric

ht)

Cro

ss-s

ecti

on

al

Lo

ng

itu

din

aal

Ver

gel

ijken

de

case

stu

die

s

Ver

gel

ijken

de

stu

die

s (b

ijv. V

an

soft

war

e o

f im

ple

men

tati

e m

eth

od

e)

Cro

ss-s

ecti

on

al

Lo

ng

itu

din

aal

ARTICLEAalst (2002) X

Aalst, et al(2003) XAalst, Hee (2004) X X

Aguilar-Savén, Ruth (2004) XAl-Mashari, Zairi (1999) X

Anzböck, Dustdar (2005) XArkin(2002) X

Armistead (1996) XArmistead, Machin (1997) X

Aversano, et al (2002) XBecker, et al (2003)Bhatt, Stump (2001) XBhatt, Troutt (2005) XBox, Platts (2005) X X

Burlton (2001) XÇakular, Wijngaarden (2002) X

Chang (2006) XCunningham, Finnegan (2004) X

Datastream (2005) XDavenport (2000) X

Deming (1982) X XDennis, et al (2006) X

Es, et al (2005) XFremantle, et al (2002) XGeorgakopoulos (1999) XGrefen, De Vries (1998) X X

Gulledge, Sommer (2002) XHammer, Champy (2001) X

Harrington (1995) X XHill (1999) X

Hillegersberg, et al (2004) XInformatica (2005) XIshikawa (1986) X XJablonski (1995) X

Jarrar, Aspinwall (1999) XJeston, Nelis (2006) XJeston, Nelis (2006) XJuopperi, et al (1995) X

Juran (1945) X XJuran (1951) X X

Karagiannis (1995) X XKettinger, et al (1997) X X X X

Khoshaflan (2006) XKim, Ramkaran (2004) X

Nummer ARTIKEL KRITISICHE SUCCESFACTOREN ZOALS GENOEMD IN ARTIKEL (niet alles is KSF, soms betreft het aspecten zoals uit artikel naar voren komt)

1 Aalst (2002)

the level of detail in modeling entire

processes in a supply chain

when modeling a supply chain this

requires each business partner to

understand the nature of their partners' local

processes

when altering private processes, which modifications are allowed without jeopardizing the

correct operation of the overall workflow

2 Aalst, et al(2003) Not applicable3 Aalst, Hee (2004) Not applicable

4 Aguilar-Savén, Ruth (2004)

Is it possible to use modelingtechniques

that are related to the type of company?

5 Al-Mashari, Zairi (1999) change management

management competency and

supportorganisational

structureproject planning and

management IT infrastructure6 Anzböck, Dustdar (2005) Not applicable7 Arkin(2002) Not applicable

8 Armistead (1996)Designate a process

champion Know the processUnderstand the

linkagesWork on the trade-

offsTeach others about

the processTrain within the

process Measure the process Manage careers

Build specialist expertise

Improve the

process

9 Armistead, Machin (1997)organization coordination process definition

organization structuring cultural fit improvement measurement

10 Aversano, et al (2002)

use of a well-defined and practical method to reverse engineer

processes

accurately select process owners and

key userslisten to process

owners and key usersuse multiple data

gathering approachesdraw early drafts of

process maps

use a standard process modeling

language

delay the technology evaluation until process reverse engineering is

finished

take into account the industrial partners

and the target environment

11 Becker, et al (2003)

Involvement of management as

targeted users of the system

Management understanding and

support

The effectiveness of datawarehouses for business process

integration

The availability of data within the Supply

Chain

Integration of CRM and SCM data from an operative (EAI) perspective and a management (data warehouses and decision support

systems) perspective

12 Bhatt, Stump (2001)

to enable communication

among IS systems standardization is

needed

for global inter-operability,

transparency to the end user is needed

Integrative capability of IS networks

Top management support is critical to establish Network connectivity and

Network Flexibility13 Bhatt, Troutt (2005) Not applicable

14 Box, Platts (2005) involve many people

translate project objectives into very specific deliverables

formulate a business case

deliver on the business case

good executive involvement (sponsor)

assign the best possible people to the

project full time

create challenging roles and new job

perspectives after the project

rewards & incentives when deliverables are met before time, with

higher quality etc.

make sure that

people that are engaged

to the project

can attach their own meaning

to the project

strong leadership

is essential

for effective change

a clear path must be created

from corporate strategy to

project goals, and ultimately to team

and individual objectives

single point

accountability; each person should

fully understand her role

in achieving the overall objective and be

accountable for

his/her tasks

BPMSWFM

TQM

BPR

Business Process Management Framework

Monitoring & Control

Information

TechnologyStrategy & Policy

People & Culture

Organization

& Processes

Bus. Proc.Model.

BI / BAM

EAI

Ravesteyn, 2006

• 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

Man.

Org. & Proc.

Architecture

Information Process

Development

Infrastruc. Ser. Appl.

Man.

Org. & Proc.

Management of Implementation & Change

Measurement and Control

Man.

Org. & Proc.

Architecture

Information Process

Architecture

Information Process

Development


Development


Man.

Org. & Proc.


Measurement and Control

Business Process Management System Implementation approach

Organizational domain

Project 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


Formal models

Analysis Visualisation

For different

stakeholders

Link with

implementation

Maintenance

Version control

Napkin

Whiteboard

Powerpoint

Idea

Design

Use

Management

Architecture

process

The architecture description life cycle (Lankhorst et al. 2005)

Architecture Design(coherence)

(Lankhorst et al. 2005)

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


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

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)

Measurement & Control

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 teamStructure team chapter: Structure domain paper:

Introduction

Validation

Results

Team x

Introduction

Validation

Results

Team x

Introduction

Validation

Results

Team n

Summary

Conclusion(validation method & overall results)

Introduction

Validation

Results

Team x

Introduction

Validation

Results

Team x

Introduction

Validation

Results

Team n

Introduction

Validation

Results

Team n

Summary

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?

business process management systems pascal ravesteyn uu/hu - 2007

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