week 10 enabling business (it) integration
DESCRIPTION
TRANSCRIPT
ITEC 4030 Business Process Management Systems
Week 10
Enabling Business (IT) Integration
ITEC 4030 Business Process Management Systems
Learning objectives
• Goals of Business (or IT) Integration (review)
• Current approaches to business integration:– Workflow systems: Routing of forms and workitems– SOA and Web services: Messaging– Enterprise Resource Planning: Shared databases
• Illustrations and design issues
• Application exercise (continued)
ITEC 4030 Business Process Management Systems
Business Integration: Goals and Approaches
• Review: Business Integration is the exchange of business-critical information between applications in real time (Yee & Apte, 2001)
• Goals:– Major improvement in business processes – Real time operations supported by dashboards displaying in real time:
• Key performance indicators from operational databases (aka business intelligence)• Status of business processes (aka Business Activity Monitoring)
• Current approaches: – Simple routing of documents, forms or workitems (aka jobs): Basic WF[M]S– Messaging between apps + Choreography (≠ orchestration): EAI, SOA, Web services– Shared databases: ERP
• Scope can include internal systems (SOA or ERP) and external ones (B2B integration, web services)
ITEC 4030 Business Process Management Systems
Workflow [Management] Systems• System that defines […] and manages the execution of workflows through the use of a
software […workflow engine…] able to interpret the process definition, interact with participants and, where required, invoke the use of applications (WfMC).
• Includes several software components:– Process definition tools: Process and construct modeling software– Workflow Enactment Service: Workflow engine (routes automatically phis to next participants
and notifies them) – Workflow client applications: Point of access for participants– Administration and monitoring tools: Re-routing, rule change, resource management,
performance monitoring, audit and reporting– Possible applications invoked during execution of process: e.g. ordering system, inventory
management system, purchasing system, payment system, billing system, etc.
• Infrastructure: Includes clients and server(s), middleware, applications, DBMS, networks, peripherals, etc.
• Functional and non-functional requirements: Selection of products based on “validated” vendors’ specs
• Benefits include coordinated teamwork (management of work and information flows and electronic handoffs), real-time information (BAM), process standardization, process execution synchronized with changing business needs
ITEC 4030 Business Process Management Systems
The WFMC reference modelSource: www.wfmc.org
Designer
Manager
End-user
ITEC 4030 Business Process Management Systems
The WFMC reference modelSource: www.wfmc.org
ITEC 4030 Business Process Management Systems
Workflow enactment & interaction Source: www.wfmc.org
ITEC 4030 Business Process Management Systems
Process design & definitionBusiness Process Analysis ,Modeling & Definition
ProcessDefinition
Build Time
Run Time
Workflow Enactment Service Process instantiation & control
ApplicationsInteraction with users & applications
WFMS build time & run time phases
ITEC 4030 Business Process Management Systems
WFMS build time & run time activities• Build time activities:
– Definition and test of business process and related constructs
– Workflow-BPR specific editing mode
– Model is exported of to some specific WFMS products
• Run time activities: – Interpretation of process definition
– Creation and control of process instances
– Interactions with identified participants
– Interactions with other identified computer-based apps
ITEC 4030 Business Process Management Systems
• The designer’s view: – Designer defines and tests the business process – Designer defines related constructs (such as forms)
• The end-user’s view:– End-user establishes session– End-user obtains workitems (or jobs):
• Pull mode: Users request new workitem• Push mode: Workitem automatically routed to user• Grab mode: Workitem routed to available user
– End-user performs required tasksWFS are TPS: updates in operational database
• The manager’s view: – Manager monitors execution of the business process– Managers reallocates resources /re-routes workitems
Illustration of a workflow system involving human interaction only
ITEC 4030 Business Process Management Systems
The designer’s view
ITEC 4030 Business Process Management Systems
The end-user’s view
ITEC 4030 Business Process Management Systems
The manager’s view
ITEC 4030 Business Process Management Systems
SOA &Web services’ basics• Basics:
– Business Integration is achieved through the re-use of existing apps (should be cheaper!) – Original focus on “internal” operations/apps and now extended to business partners– New developments:
• SOA (architecture that allows loosely coupled apps to exchange data with one another as they participate in the execution of business processes)
• Web services (SOA where the loosely coupled apps are accessed over the Internet)
• Tools and products– Tools that model and analyze complex BPs before their implementation– Servers that execute BPs – Servers that allow for connectivity between apps – Servers that allow for data transformation – Servers that allow for message transportation– Servers that allow connection to business partners via EDI (and conversion to XML)– Servers that monitor the execution of BP (provide real-time information and/or BAM)– Servers that allow for information integration (portlet integration) Major vendors: IBM, Oracle, Microsoft Functional and non-functional requirements: Selection of products based on validated vendors’ specs
• Benefits include re-use of existing apps and infrastructure + Faster integration cycle
ESB (see slide 15)
ITEC 4030 Business Process Management Systems
Managing BP with SOASource: www.ibm.com
ITEC 4030 Business Process Management Systems
Enterprise Service BusSource: www.ibm.com
ITEC 4030 Business Process Management Systems
ERP Basics• ERP systems:
– Set of integrated business applications bought from software vendors– Include modules that support a particular set of BPs – Modules integrated through common definitions (schemas) and common database Facilitate an integrated and real-time planning of BP activities (i.e., production & sales)
• ERP modules– Core applications (OLTP):
• Marketing, sales and distribution• Production, material management and logistics• Accounting and finance• Human resources• WFS and industry solutions (retail, automotive, etc.)
– Business tools:• OLAP• Project management systems
TPS, WFS, MIS, DSS are all included available as ERP modules
• Major vendors: SAP, PeopleSoft, Oracle, J.D. Edwards, Baan
ERP Basics
ITEC 4030 Business Process Management Systems
Major characteristics of ERPs
ITEC 4030 Business Process Management Systems
Nonintegrated versus integrated apps
ITEC 4030 Business Process Management Systems
How ERPs improve business processes• “Separate” modules support the flow of information across
multiple functions/partners (see next slide)
• On-line and real-time information: All functions / partners can access data in real time
• Best practices (business blueprints):– SAP R/3 has over 1100 best practices available to choose from
– Best practices in major industries (automotive, retail, etc.)
ITEC 4030 Business Process Management Systems
ERP Illustration (previously discussed in Lecture 9)
• Ordering: – Sales clerk enters order, checks discount and credit history and issues invoice– Can be done by customer through the Internet (ordering system is a web-based one)
• Inventory:– ERP application checks inventory and location of items
• Distribution:– ERP application alerts warehouse to ship portion of order in stock
• Manufacturing:– ERP application schedules production of the remainder of the order
• Manpower: – ERP application checks availability of workers to handle order – ERP application alerts personnel manager if temporary workers are needed
• Material planning: – ERP application checks availability of raw material needed for the order– ERP application alerts purchasing manager if more quantities must be ordered
• Order tracking:– Customer logs onto the ERP system through the Internet to check status of order
ITEC 4030 Business Process Management Systems
ERP: Design & implementation issues• Design:
– C/S architecture: usually 3-tier or n-tier – Software:
• ERP modules requiring minimal coding and allowing for some customization • Platforms (Mostly Unix or Window), DBMS (Oracle, MS SQL, Sybase, DB2), Data
warehouse– Other design issues:
• Functional and non-functional requirements: See validated vendors’ specs • LANs/WANs bandwidth and availability• Security: access, encryption, firewalls, IDS, digital certificate
• Implementation: Lease (versus Buy) – ASP (www.mySAP.com) delivers apps through a MAN or WAN usually the Internet– Organization pays a flat fee + for service on a monthly, yearly or on per use basis – Benefits
• “Lower cost” for applications: Organization does not invest in software and hardware• Faster development (and shorter implementation!)• Organizations focused on their core business
– Limitations: Sensitive data + WAN’s response time (Internet’s unpredictable traffic)
ITEC 4030 Business Process Management Systems
Phases of Business Process RedesignPhase 3 of 5
Integration
ModelingAnalysis Redesign
Scoping
Share Process Knowledge
Model AS-IS baseline Process
Analysis
Redesign “To-Be” Process Alternative
Select “To-Be”Design
ITEC 4030 Business Process Management Systems
Planning process integration• Activities
– Examine alternative IT integration options– Adjust process design– Plan process implementation
• Deliverable: Process integration plan
• Key participants: IS design team + BPR team
• Focus was on the design of computer-based apps that:– Support/shape critical BPs (such as procurement, production and sales)– Allow for business integration (WFS, SOA & Web services, ERP)Trends: SOA and Web services (re-use of existing apps) v/s ERP (new
pre-packaged apps)
ITEC 4030 Business Process Management Systems
Application exerciseYour Project (continued):
– Which apps should be integrated?– Why?– How?
ITEC 4030 Business Process Management Systems
Thank you