bpm promise and challenges. how did we get here? bpm is an old discipline that allows you to model...

BPMBPM

Promise and ChallengesPromise and Challenges

How did we get here?How did we get here?

BPM is an old discipline that allows you to model the BPM is an old discipline that allows you to model the organizational structure, define the business organizational structure, define the business processes, and show the interactions between them. processes, and show the interactions between them.

It is traditionally taught in business schools and is put It is traditionally taught in business schools and is put into practice with varying degrees of success. into practice with varying degrees of success.

The authors of the widely read “Reengineering the The authors of the widely read “Reengineering the Corporation”, Hammer and Champy, focused attention Corporation”, Hammer and Champy, focused attention on business processes, as a root cause of inefficiency on business processes, as a root cause of inefficiency and the source of potential competitive advantage.and the source of potential competitive advantage.

They advised a deep and radical redesign of the They advised a deep and radical redesign of the business to root out waste and increase the focus on business to root out waste and increase the focus on the customer. the customer.

How did we get here?How did we get here?

That was 10 years ago. What is different today is the That was 10 years ago. What is different today is the novel use of computing technology to drive the novel use of computing technology to drive the analysis and automation of business processes.analysis and automation of business processes.

Innovations in technology such as XML, Web Innovations in technology such as XML, Web services, Service Oriented Architecture, component-services, Service Oriented Architecture, component-based development, and message-oriented based development, and message-oriented middleware have fueled the current interest in BPM.middleware have fueled the current interest in BPM.

Vendors have developed Business Process Vendors have developed Business Process Management Systems (BPMS) that provide the fine-Management Systems (BPMS) that provide the fine-grained integration of systems and data needed to grained integration of systems and data needed to automate business processes. automate business processes.

The BPMS links people and systems, manages The BPMS links people and systems, manages information access and transformation, handles information access and transformation, handles exceptions, and orchestrates the flow of the process.exceptions, and orchestrates the flow of the process.

Solving ProblemsSolving Problems

Over the last two decades, businesses and Over the last two decades, businesses and governments have been giving increasing governments have been giving increasing attention to business processes.attention to business processes.

This interest grows out of the need to streamline This interest grows out of the need to streamline business operations, consolidate organizations, business operations, consolidate organizations, and save costs.and save costs.

The design and automation of business processes The design and automation of business processes even warrants its own field of study, known as even warrants its own field of study, known as BPM (Business Process Management).BPM (Business Process Management).

The level of interest and the marketing hyperbole The level of interest and the marketing hyperbole around BPM has reached a crescendo. around BPM has reached a crescendo.


As an example, Gartner announced that BPM As an example, Gartner announced that BPM "wins the 'Triple Crown' of saving money, saving "wins the 'Triple Crown' of saving money, saving time, and adding value.“time, and adding value.“

Is this promise being fulfilled? BPM does have the Is this promise being fulfilled? BPM does have the potential to deliver significant value, but there potential to deliver significant value, but there are missing elements that limit its effectiveness. are missing elements that limit its effectiveness.

Although BPM technologies are becoming more Although BPM technologies are becoming more mature, many software developers and business mature, many software developers and business analysts still find themselves asking the basics: analysts still find themselves asking the basics: What is it? And why should I care?What is it? And why should I care?


This presentation provides a high-level overview This presentation provides a high-level overview of BPM and where it is today. of BPM and where it is today.

It also touches on some of the core technologies It also touches on some of the core technologies and standards.and standards.

Its focus is on four specific challenges facing BPM, Its focus is on four specific challenges facing BPM, aligned to the four phases of an application aligned to the four phases of an application development life cycle. development life cycle. o Discovery Discovery o DesignDesigno Development Development o DeploymentDeployment

Solving ProblemsSolving Problems Organizations are looking to BPM to help solve the Organizations are looking to BPM to help solve the

following kinds of problems:following kinds of problems:o A computer vendor, to be competitive, needs to cut its A computer vendor, to be competitive, needs to cut its

costs for fulfilling customer orders for PCs, costs for fulfilling customer orders for PCs, by 70 by 70 percentpercent..

o A pharmaceutical company seeks to extend the patent A pharmaceutical company seeks to extend the patent life of its drugs by bringing new products to market, life of its drugs by bringing new products to market, one month earlierone month earlier..

o A government agency, A government agency, forced to reduce staff by 30 forced to reduce staff by 30 percentpercent, must find a way to consolidate and , must find a way to consolidate and streamline its unemployment benefits services.streamline its unemployment benefits services.

o Company executives, personally accountable under Company executives, personally accountable under the Sarbanes-Oxley Act of 2002 for their company's the Sarbanes-Oxley Act of 2002 for their company's financial statements, need to understand and control financial statements, need to understand and control the processes that result in these statements. the processes that result in these statements.

Challenge 1: DiscoveryChallenge 1: Discovery Typically, Business Analysts needing to discover the Typically, Business Analysts needing to discover the

current state of things, try to visually represent the current state of things, try to visually represent the various processes of the business. various processes of the business.

The approach taken by many BPM products fails to The approach taken by many BPM products fails to address this challenge adequately.address this challenge adequately.

They employ a drawing metaphor in which an They employ a drawing metaphor in which an Business Analyst or Developer sketches the process Business Analyst or Developer sketches the process using a palette of standard icons.using a palette of standard icons.

This assumes the existing process is known in This assumes the existing process is known in advance.advance.

Most large organizations, however, simply Most large organizations, however, simply do not do not know know their end-to-end processes accurately or in their end-to-end processes accurately or in detail.detail.

Their process knowledge is tacit and decentralized—Their process knowledge is tacit and decentralized—not explicit and centralized.not explicit and centralized.

Challenge 1: DiscoveryChallenge 1: Discovery How can you discover how a business operates? How can you discover how a business operates? Classical manufacturing processes have been Classical manufacturing processes have been

analyzed extensively in quantitative and analyzed extensively in quantitative and qualitative terms. qualitative terms.

Discovering general business processes is Discovering general business processes is somewhat less straightforward. You can adopt somewhat less straightforward. You can adopt either a top-down or bottom-up approach.either a top-down or bottom-up approach.

The top-down discovery approach typically begins The top-down discovery approach typically begins with the organization chart. It lists the with the organization chart. It lists the responsibilities of each department in the responsibilities of each department in the organization and identifies the high-level organization and identifies the high-level processes that support these responsibilities.processes that support these responsibilities.

Challenge 1: DiscoveryChallenge 1: Discovery

The advantage of this approach is that it provides The advantage of this approach is that it provides a broad, organizational perspective. a broad, organizational perspective.

Its disadvantage is a lack of detail and a Its disadvantage is a lack of detail and a questionable degree of accuracy.questionable degree of accuracy.

The bottom-up approach begins by interviewing The bottom-up approach begins by interviewing employees about their day-to-day activities and employees about their day-to-day activities and attempts to integrate this information into attempts to integrate this information into coherent end-to-end processes. coherent end-to-end processes.

This approach can be extremely accurate but you This approach can be extremely accurate but you can easily get lost in the details.can easily get lost in the details.

These processes are then decomposed into lower-These processes are then decomposed into lower-level processes, which are decomposed further, level processes, which are decomposed further, until the lowest level is reached. until the lowest level is reached.

Challenge 1: DiscoveryChallenge 1: Discovery Some hybrid top-down/bottom-up approaches seek to Some hybrid top-down/bottom-up approaches seek to

achieve the advantages of both methods.achieve the advantages of both methods. Since no two organizations are exactly alike in how Since no two organizations are exactly alike in how

they operate, different discovery methods may be they operate, different discovery methods may be appropriate.appropriate.

Further, a single capture of business processes is likely Further, a single capture of business processes is likely to be woefully inadequate. As is so often the case, to be woefully inadequate. As is so often the case, later discoveries inform earlier ones, and an iterative later discoveries inform earlier ones, and an iterative discovery methodology that continually enhances and discovery methodology that continually enhances and updates the processes may yield better results. updates the processes may yield better results.

Regardless of the methodology followed, there is of Regardless of the methodology followed, there is of course the course the keykey requirement that management support requirement that management support and drive the business-process discovery. and drive the business-process discovery.

Without this support, the chance of success is minimal.Without this support, the chance of success is minimal.

Challenge 1: Discovery Challenge 1: Discovery Business ConsequencesBusiness Consequences

As awareness of the importance of business processes As awareness of the importance of business processes grows, many are attempting to capture their current-grows, many are attempting to capture their current-state business environment. They form workshops of state business environment. They form workshops of business users, sketch the processes, and try to business users, sketch the processes, and try to achieve consensus within the team. achieve consensus within the team.

Unfortunately, they have no way to ensure the Unfortunately, they have no way to ensure the accuracy or completeness of the resulting diagrams. accuracy or completeness of the resulting diagrams. Often the underlying complexity of existing business Often the underlying complexity of existing business processes is oversimplified by such workshops. processes is oversimplified by such workshops.

Much of the important meta-data about the processes, Much of the important meta-data about the processes, such as cost, cycle time, and information flow, cannot such as cost, cycle time, and information flow, cannot be easily fit into “Visio” diagrams. Moreover, the be easily fit into “Visio” diagrams. Moreover, the information contained in the processes cannot be information contained in the processes cannot be easily changed or analyzed effectively in these easily changed or analyzed effectively in these diagrams.diagrams.

Challenge 1: Discovery Challenge 1: Discovery Technical ConsequencesTechnical Consequences

Accurately capturing the current process is a Accurately capturing the current process is a prerequisite for defining the structure and rules of prerequisite for defining the structure and rules of the desired future process. the desired future process.

Without this level of understanding, the BPMS Without this level of understanding, the BPMS developer may produce a sub-optimal solution with developer may produce a sub-optimal solution with the tool or, worse, a solution to the wrong problem. the tool or, worse, a solution to the wrong problem.

BPMS tools were designed to automate processes, BPMS tools were designed to automate processes, not to analyze business. not to analyze business.

The process automation implemented using BPMS The process automation implemented using BPMS may therefore fall short of the true goals of the may therefore fall short of the true goals of the business. business.

Why not ask the business analysts to use the BPMS Why not ask the business analysts to use the BPMS products to discover and analyze business products to discover and analyze business processes? This would seem to solve this problem. processes? This would seem to solve this problem.

Challenge 1: Discovery Challenge 1: Discovery Technical ConsequencesTechnical Consequences

Unfortunately, most BPMS products have been Unfortunately, most BPMS products have been designed for Developers, not for the business.designed for Developers, not for the business.

They provide few if any capabilities for process They provide few if any capabilities for process discovery, defining meta-data, simulation, or discovery, defining meta-data, simulation, or analyzing process costs or cycle times.analyzing process costs or cycle times.

Challenge 2: DesignChallenge 2: Design

The ultimate purpose of BPM is to improve and The ultimate purpose of BPM is to improve and optimize the operations of an organization.optimize the operations of an organization.

Its scope, necessarily, comprises not a single Its scope, necessarily, comprises not a single process but process but all processes all processes across the organization. across the organization.

Unfortunately, most BPMS products are designed to Unfortunately, most BPMS products are designed to work on one process at a time. The “Developer” work on one process at a time. The “Developer” draws the process, adds implementation draws the process, adds implementation constructs, and then executes the process. constructs, and then executes the process.

There is no way in these tools to: look across There is no way in these tools to: look across multiple processes, examine process multiple processes, examine process interconnections, make comparisons, or perform interconnections, make comparisons, or perform analysis. analysis.

Challenge 2: DesignChallenge 2: Design What is needed is a “process laboratory”, where What is needed is a “process laboratory”, where

Business Analysts can collaborate, exploring the Business Analysts can collaborate, exploring the process space, testing ideas, measuring, analyzing, process space, testing ideas, measuring, analyzing, and comparing processes, and generally performing and comparing processes, and generally performing business thought experiments and scenarios. business thought experiments and scenarios.

This laboratory would give analysts the tools to This laboratory would give analysts the tools to design new processes, view the processes from design new processes, view the processes from multiple points of view, extract analytical reports multiple points of view, extract analytical reports across the processes, generate system across the processes, generate system requirements, and perform simulation or “what if” requirements, and perform simulation or “what if” experiments. experiments.

It would allow them to create centralized reusable It would allow them to create centralized reusable processes that can be invoked by processes in processes that can be invoked by processes in different operating unitsdifferent operating units

Obviously, one key element in such a laboratory is a Obviously, one key element in such a laboratory is a language to express ideas. language to express ideas.


This “process language” would be used to define This “process language” would be used to define the basic entities of business processes the basic entities of business processes (processes, participants, activities, links, etc.) and (processes, participants, activities, links, etc.) and the rules for their operation and interaction.the rules for their operation and interaction.

A standard process language would allow A standard process language would allow customers to use products from different vendors customers to use products from different vendors for defining and implementing business for defining and implementing business processes. processes.

Processes defined in one product could be Processes defined in one product could be executed on another product.executed on another product.

Over the past three years, various groups have Over the past three years, various groups have made numerous attempts to define standards for made numerous attempts to define standards for Web services and business processes.Web services and business processes.


The relevant organizations are the:The relevant organizations are the:o Workflow Management Coalition (WfMC)Workflow Management Coalition (WfMC)o Business Process Management Initiative (BPMI)Business Process Management Initiative (BPMI)o World Wide Web Consortium (W3C)World Wide Web Consortium (W3C)o OASIS.OASIS.

Challenge 2: DesignChallenge 2: Design An important XML-based language for defining An important XML-based language for defining

business processes is the Business Process business processes is the Business Process Execution Language for Web Services (BPEL4WS Execution Language for Web Services (BPEL4WS or simply BPEL6)or simply BPEL6)

The underlying assumption behind the BPEL The underlying assumption behind the BPEL specification is that business processes will be specification is that business processes will be composed of a series of interacting Web services. composed of a series of interacting Web services.

Since WSDL (Web Services Description Language) Since WSDL (Web Services Description Language) is the natural language for describing Web is the natural language for describing Web services, BPEL is an extension of WSDL. services, BPEL is an extension of WSDL.

Each activity in a BPEL process is implemented by Each activity in a BPEL process is implemented by a Web Service, which is defined by its port types, a Web Service, which is defined by its port types, operations, and messages.operations, and messages.


In BPEL, a business process is composed of a In BPEL, a business process is composed of a central process engine that interacts with a set of central process engine that interacts with a set of business partners.business partners.

See Figure 1. See Figure 1. Each Web-Service operation is performed either by Each Web-Service operation is performed either by

one of the partners or by the central process engine one of the partners or by the central process engine itself.itself.

The process engine communicates with its partners The process engine communicates with its partners by exchanging messages. The process engine and by exchanging messages. The process engine and partner send messages across a communications partner send messages across a communications channel called a “service link.channel called a “service link.

To make this more concrete, let’s consider a stock To make this more concrete, let’s consider a stock broker interacting with a stock exchange.broker interacting with a stock exchange.

See Figure 2.See Figure 2.

Challenge 2: DesignChallenge 2: Design Figure 1Figure 1

message messagepartner partnerprocessengine

Challenge 2: DesignChallenge 2: Design Figure 2Figure 2

stock orderport type

processstock

exchange

stocktransaction

port type

buyerLink

role:buy requestor

role:buy service


The service link is a bilateral contract between the The service link is a bilateral contract between the stock broker’s process and the stock exchange stock broker’s process and the stock exchange that defines the services each offers to the other.that defines the services each offers to the other.

The process and the partner play different roles The process and the partner play different roles across the service link. across the service link.

The process, in its role, exposes a WSDL port typeThe process, in its role, exposes a WSDL port type—that is, a set of operations that it agrees to —that is, a set of operations that it agrees to offer. offer.

Similarly, the partner, in its role, exposes another Similarly, the partner, in its role, exposes another set of operations. set of operations.

In our example, when the stock broker process In our example, when the stock broker process invokes the stock exchange’s buy service invokes the stock exchange’s buy service operation, it is actually using a service link, which operation, it is actually using a service link, which we have called the “buyerLink.”we have called the “buyerLink.”


The role of the stock broker process in buyerLink The role of the stock broker process in buyerLink is is buy requestor buy requestor and its port type is and its port type is stock stock transactiontransaction. .

The role of the exchange partner is The role of the exchange partner is buy service buy service and its port type is and its port type is stock orderstock order..

Having defined the conceptual framework for Having defined the conceptual framework for partner interaction, BPEL then specifies the partner interaction, BPEL then specifies the building blocks of processes: activities, flows, building blocks of processes: activities, flows, links, data containers, and assignment operations. links, data containers, and assignment operations.

These are defined in terms of their XML structure, These are defined in terms of their XML structure, but without a graphical model for representing but without a graphical model for representing them.them.

BPEL also addresses technical constructs required BPEL also addresses technical constructs required for proper execution of the business process. for proper execution of the business process. These include correlation, fault handling, and These include correlation, fault handling, and compensation.compensation.


Correlation is the technique used to create Correlation is the technique used to create associations between process instances by using associations between process instances by using the data fields as identifiers. For example, a field the data fields as identifiers. For example, a field “order number” might be used to correlate a “order number” might be used to correlate a purchase order and a purchase-order acknowl purchase order and a purchase-order acknowl edgment. edgment.

Fault handling and compensation specify the Fault handling and compensation specify the procedures to be followed when an error occurs in procedures to be followed when an error occurs in the process. the process.

For long-running processes, the idea is to “undo” For long-running processes, the idea is to “undo” a complex series of activities with a a complex series of activities with a compensating series of activities. compensating series of activities.


For example, if you want to specify that activity 1 For example, if you want to specify that activity 1 must precede activity 2, you have two ways to do so. must precede activity 2, you have two ways to do so.

One way is to use the structured activity called One way is to use the structured activity called “sequence.” “sequence.”

The other way is to connect these activities through a The other way is to connect these activities through a link within a flow. link within a flow.

The BPEL specification provides no hints as to when The BPEL specification provides no hints as to when to use one technique or the other.to use one technique or the other.

In BPEL, each process is an assemblage of Web In BPEL, each process is an assemblage of Web services, but the process is itself a large-scale Web services, but the process is itself a large-scale Web service. This fractal-like approach enables unlimited service. This fractal-like approach enables unlimited composition and decomposition of Web services.composition and decomposition of Web services.


BPEL is a significant achievement but has several BPEL is a significant achievement but has several weaknesses that limit its widespread adoption:weaknesses that limit its widespread adoption:o It addresses only processes composed It addresses only processes composed

exclusively of Web services.exclusively of Web services.o It has no graphical rendering. To date, no It has no graphical rendering. To date, no

available products generate process graphics available products generate process graphics from a BPEL document or vice versa.from a BPEL document or vice versa.

o It does not include a framework for performing It does not include a framework for performing top-down design—that is, for creating a top-down design—that is, for creating a process in a series of layers with successive process in a series of layers with successive refinement.refinement.

o It provides no capabilities for process analysis.It provides no capabilities for process analysis.o It is a vendor-driven process definitions It is a vendor-driven process definitions

language that has not yet been reflected in a language that has not yet been reflected in a royalty-free standard published by a royalty-free standard published by a recognized standards group.recognized standards group.


The major competitor to BPEL as a process language The major competitor to BPEL as a process language based on Web services is BPML (Business Process based on Web services is BPML (Business Process Manage ment Language). Manage ment Language).

Both BPEL and BPML are ultimately based on the Both BPEL and BPML are ultimately based on the ππ calculus, but the Business Process Management calculus, but the Business Process Management Initiative introduced BPML two years earlier than Initiative introduced BPML two years earlier than BPEL. BPEL.

BPEL has actually incorporated many BPML concepts BPEL has actually incorporated many BPML concepts and, with the support of Microsoft and IBM, it has the and, with the support of Microsoft and IBM, it has the advantage of industry momentum. advantage of industry momentum.

Microsoft, IBM, and BEA Systems will likely introduce Microsoft, IBM, and BEA Systems will likely introduce BPEL in their products over the next year, perhaps BPEL in their products over the next year, perhaps with some proprietary language extensions and some with some proprietary language extensions and some tools to aid in process design. tools to aid in process design.

Challenge 2: Design Challenge 2: Design Business ConsequencesBusiness Consequences

The goal is to translate the process information gathered The goal is to translate the process information gathered in Discovery into a standard process language, such as in Discovery into a standard process language, such as BPEL. But Business Analysts can’t use BPEL, at least not BPEL. But Business Analysts can’t use BPEL, at least not in its current form. in its current form.

Given a BPEL process definition, you will find it nearly Given a BPEL process definition, you will find it nearly impossible to disentangle the business logic from the impossible to disentangle the business logic from the details of the implementation. The business semantics details of the implementation. The business semantics are obscured by the technical details required for are obscured by the technical details required for execution. execution.

What is lacking is a way to layer BPEL, to filter out such What is lacking is a way to layer BPEL, to filter out such technical constructs as fault handling, correlation, and technical constructs as fault handling, correlation, and transaction management. It should be possible for a transaction management. It should be possible for a Business Analyst to use a process language to design Business Analyst to use a process language to design the business logic. Once the business logic is mapped the business logic. Once the business logic is mapped out, a developer can insert the technical constructs. out, a developer can insert the technical constructs.

Challenge 2: Design Challenge 2: Design Business ConsequencesBusiness Consequences

Business Analysts generally prefer a visual way to Business Analysts generally prefer a visual way to design processes.design processes.

They would also likely benefit from a way to They would also likely benefit from a way to design processes from the top-down, beginning design processes from the top-down, beginning with high-level processes and refining them to with high-level processes and refining them to low-level processes. low-level processes.

Challenge 2: Design Challenge 2: Design Technical ConsequencesTechnical Consequences

In many cases the Business Analysts will design In many cases the Business Analysts will design the business process using an analysis tool. the business process using an analysis tool.

If BPEL is not used by the business process If BPEL is not used by the business process analysis tool as well as by the BPMS, then a analysis tool as well as by the BPMS, then a custom mapping will be required to translate custom mapping will be required to translate between the XML dialects of the two products. between the XML dialects of the two products.

In its current form, BPEL will be of limited use In its current form, BPEL will be of limited use since it is designed for processes that are since it is designed for processes that are implemented using Web services. implemented using Web services.

A key goal of business-process design is to define A key goal of business-process design is to define and communicate requirements. and communicate requirements.

For example, suppose a new system will be used For example, suppose a new system will be used in multiple processes, supporting different users in multiple processes, supporting different users and systems performing different functions. and systems performing different functions.

Challenge 2: Design Challenge 2: Design Technical ConsequencesTechnical Consequences

Ideally, the business processes are defined in Ideally, the business processes are defined in such a way that the functional requirements can such a way that the functional requirements can simply be extracted from the process definitions. simply be extracted from the process definitions.

If our new system performs 25 activities across If our new system performs 25 activities across 17 processes, then these activities can be 17 processes, then these activities can be summarized by an appropriate query. summarized by an appropriate query.

This procedure is precisely analogous to This procedure is precisely analogous to extracting data from a relational database. extracting data from a relational database. Unfortunately, there is currently no searchable Unfortunately, there is currently no searchable knowledge base of BPEL processes. knowledge base of BPEL processes.

Moreover, since BPEL has no notion of Moreover, since BPEL has no notion of “participant” or “actor” to identify the proposed “participant” or “actor” to identify the proposed system, it will not be able to support this system, it will not be able to support this important goal of the process laboratory.important goal of the process laboratory.

Challenge 3: Challenge 3: DevelopmentDevelopment

A successful development project is the result of A successful development project is the result of many favorable conditions, one of the most many favorable conditions, one of the most important being close collaboration between important being close collaboration between Business Analysts, who define the needs of the Business Analysts, who define the needs of the business, and developers, who implement systems business, and developers, who implement systems that meet these needs. that meet these needs.

Business Analysts and technical developers, Business Analysts and technical developers, however, are driven by different goals, speak however, are driven by different goals, speak different languages, and tend to work at different different languages, and tend to work at different levels of precision. levels of precision.

In the domain of BPM this gap is manifested by In the domain of BPM this gap is manifested by automated business processes whose execution automated business processes whose execution does not match the original business requirements. does not match the original business requirements.

Business Analysts typically communicate business Business Analysts typically communicate business needs in the form of requirements documents to needs in the form of requirements documents to the developers, who may interpret the needs the developers, who may interpret the needs rather differently. rather differently.

Challenge 3: Challenge 3: DevelopmentDevelopment

Using a BPMS tool, the developers implement the Using a BPMS tool, the developers implement the automated solution as they understand it. automated solution as they understand it.

Why not have the Business Analysts define the Why not have the Business Analysts define the business process using the BPMS tools? business process using the BPMS tools?

This is not realistic since BPMS products are This is not realistic since BPMS products are generally intended for use by developers, not by generally intended for use by developers, not by Business Analysts. Business Analysts.

They enable developers to create technical con They enable developers to create technical con structs, not business requirements.structs, not business requirements.

Tools based on UML (Unified Modeling Language) Tools based on UML (Unified Modeling Language) are sometimes suggested as an alternative. UML are sometimes suggested as an alternative. UML is well suited for developers who need to design is well suited for developers who need to design class diagrams and lay out the interactions class diagrams and lay out the interactions between method calls. between method calls.

The UML suite of diagrams is, however, not so The UML suite of diagrams is, however, not so well suited for Business Analysts working with well suited for Business Analysts working with business processes. business processes.

Challenge 3: Challenge 3: Development Development

Business ConsequencesBusiness Consequences The business consequences of the gap between The business consequences of the gap between

Business Analysts and developers are, increased Business Analysts and developers are, increased risk of failure and longer lead times for risk of failure and longer lead times for development.development.

In its research into the success rate of application In its research into the success rate of application development projects, the Standish Group development projects, the Standish Group discovered that most software development discovered that most software development projects are cancelled before they are completed.projects are cancelled before they are completed.

It also found that fewer than 20 percent of It also found that fewer than 20 percent of projects are completed on time and on budget. projects are completed on time and on budget.

Of those projects that do deliver on time and Of those projects that do deliver on time and budget, half fail to deliver the projected budget, half fail to deliver the projected functionality. The Standish Group notes that a functionality. The Standish Group notes that a key cause of such failures is the lack of clarity in key cause of such failures is the lack of clarity in capturing and communicating user requirements.capturing and communicating user requirements.


Technical ConsequencesTechnical Consequences The classical requirements document leaves The classical requirements document leaves

considerable room for interpretation. considerable room for interpretation. It rarely provides the IT level of precision needed by It rarely provides the IT level of precision needed by

developers, who need to know:developers, who need to know:o Each activity that must be performed by the systemEach activity that must be performed by the systemo The step-by-step control logic of the enveloping The step-by-step control logic of the enveloping

business processbusiness processo The specific data required at each step of the processThe specific data required at each step of the processo The business rules that govern changes to the data. The business rules that govern changes to the data.


Technical ConsequencesTechnical Consequences This lack of precision leads to misunderstandings This lack of precision leads to misunderstandings

between the analyst and the development team. between the analyst and the development team. Redefining requirements, redesigning, and Redefining requirements, redesigning, and

recoding midstream are expensive and time-recoding midstream are expensive and time-consuming.consuming.

What’s missing is a seamless way to integrate What’s missing is a seamless way to integrate design and development. design and development.

Business Analysts should create process designs Business Analysts should create process designs at the business level within their process at the business level within their process laboratory and then export these designs in XML laboratory and then export these designs in XML form to the BPMS.form to the BPMS.

Developers will then refine the design, adding the Developers will then refine the design, adding the technical constructs needed for implementation. technical constructs needed for implementation.

This eliminates any ambiguity about the This eliminates any ambiguity about the requirements and business need.requirements and business need.

Challenge 4: Challenge 4: DeploymentDeployment

The whole point of automating business processes The whole point of automating business processes is to improve operations—in cost, time, or quality. is to improve operations—in cost, time, or quality.

Once a process has been developed and deployed, Once a process has been developed and deployed, how can we know if it is meeting the intended how can we know if it is meeting the intended goals? goals?

We know how to instrument IT systems and We know how to instrument IT systems and monitor them with a high degree of precision. monitor them with a high degree of precision.

These statistics, however, do not generally provide These statistics, however, do not generally provide a business-process context around this information.a business-process context around this information.

The challenge is to aggregate and present The challenge is to aggregate and present execution data at the business-process level. execution data at the business-process level.

Gartner coined the term Gartner coined the term business activity business activity monitoring monitoring (BAM) for this capability. It defines BAM (BAM) for this capability. It defines BAM as providing “realtime access to critical business as providing “realtime access to critical business performance indicators to improve the speed and performance indicators to improve the speed and effectiveness of business operations.” effectiveness of business operations.”

Challenge 4: Challenge 4: Deployment Deployment

Business ConsequencesBusiness Consequences Without BAM, operational managers have no way of Without BAM, operational managers have no way of

determining whether the processes for which they determining whether the processes for which they are responsible, are meeting their objectives. are responsible, are meeting their objectives.

For example,For example, they will not be aware that the cost of they will not be aware that the cost of the order fulfillment process has increased 20 the order fulfillment process has increased 20 percent above average, or that the time required for percent above average, or that the time required for handling new benefits claims declined by 10 percent, handling new benefits claims declined by 10 percent, or that the outage optimization process for web or that the outage optimization process for web portal is in trouble. portal is in trouble.

Lacking this information, executives have no way to Lacking this information, executives have no way to determine which action to take. determine which action to take.

A way to aggregate execution statistics A way to aggregate execution statistics in process in process context context would help the business manager better would help the business manager better manage these types of exceptions.manage these types of exceptions.


Business ConsequencesBusiness Consequences Recently, several companies have developed BAM Recently, several companies have developed BAM

products, but in many cases they are “discrete products, but in many cases they are “discrete event monitors” that lack overall process context. event monitors” that lack overall process context.

To achieve true process context, you must link To achieve true process context, you must link individual activities into a process to provide individual activities into a process to provide information on what is done in that process and by information on what is done in that process and by whom. whom.

For exampleFor example, you can group process instances by , you can group process instances by geography, customer, or organization. geography, customer, or organization.

Finally you need to “chain” processes that logically Finally you need to “chain” processes that logically belong together, such as an order process and an belong together, such as an order process and an invoice process. invoice process.

All this information is then summarized and All this information is then summarized and presented on an executive dashboard on the presented on an executive dashboard on the enterprise portal.enterprise portal.


Technical ConsequencesTechnical Consequences At some level, most companies recognize the At some level, most companies recognize the

importance of BAM but have no effective way to importance of BAM but have no effective way to collect, aggregate, and analyze execution statistics. collect, aggregate, and analyze execution statistics.

Often it is done in an ad hoc manner, in which reports Often it is done in an ad hoc manner, in which reports from legacy systems are combined into a data from legacy systems are combined into a data warehouse from which summary reports can be warehouse from which summary reports can be generated. generated.

It is possible to determine quite precisely the It is possible to determine quite precisely the utilization of each disk drive, server, and network utilization of each disk drive, server, and network component in the IT environment. component in the IT environment.

From such statistics, however, you will not know From such statistics, however, you will not know which resources need to be expanded, consolidated, which resources need to be expanded, consolidated, or upgraded to support the business objectives.or upgraded to support the business objectives.


Technical ConsequencesTechnical Consequences For exampleFor example, you simply may not know whether , you simply may not know whether

or not increasing the capacity of a specific disk or not increasing the capacity of a specific disk will affect the order-fulfillment-cycle time.will affect the order-fulfillment-cycle time.

With BAM, we come full cycle. With BAM, we come full cycle. The results of process monitoring will enable the The results of process monitoring will enable the

rediscovery and redesign of business processes. rediscovery and redesign of business processes. Executives will know about hotspots that demand Executives will know about hotspots that demand

their immediate attention. In the longer term, the their immediate attention. In the longer term, the execution will keep pace with the business needs execution will keep pace with the business needs and the process designs. and the process designs.

Figure 3 summarizes this life-cycle concept.Figure 3 summarizes this life-cycle concept.

Challenge 4: Challenge 4: DeploymentDeployment

Figure 3Figure 3

discovery

analysis

execution

design

ProcessMaps

Requirements

XML ImportsBAMDashboards

ConclusionConclusion Any enterprise—public or private—can be viewed Any enterprise—public or private—can be viewed

as the sum of its business processes. as the sum of its business processes. Each process delivers value to customers, Each process delivers value to customers,

suppliers, employees, or other stakeholders. suppliers, employees, or other stakeholders. BPM, the discipline for enabling and automating BPM, the discipline for enabling and automating

business processes, is in a period of rapid growth business processes, is in a period of rapid growth and will fundamentally change the way and will fundamentally change the way computing power is applied in organizations. computing power is applied in organizations.

Whereas BPM has already delivered considerable Whereas BPM has already delivered considerable value in many companies, the components of the value in many companies, the components of the full BPM solution are still evolving and are the full BPM solution are still evolving and are the subject of ongoing research and development. subject of ongoing research and development.

One noteworthy advance has been BPEL, an XML-One noteworthy advance has been BPEL, an XML-based language for describing business processes based language for describing business processes composed of Web services.composed of Web services.

ConclusionConclusion This presentation has focused on four immediate This presentation has focused on four immediate

challenges: challenges: 1.1. Process discovery is the beginning of any BPM Process discovery is the beginning of any BPM

solution and is necessary to ensure that the solution and is necessary to ensure that the solution matches the real business needs. solution matches the real business needs.

2.2. Business Analysts lack a process laboratory in Business Analysts lack a process laboratory in which to design, analyze, and simulate business which to design, analyze, and simulate business processes.processes.

3.3. Integration is missing between the tools used for Integration is missing between the tools used for business process design and the tools used for business process design and the tools used for execution. execution.

4.4. BPMs generate valuable performance statistics BPMs generate valuable performance statistics from executing business processes. Businesses from executing business processes. Businesses need to monitor these execution statistics, need to monitor these execution statistics, organize them into their process context, and organize them into their process context, and present them in the form of alarms, reports, and present them in the form of alarms, reports, and executive dashboards.executive dashboards.

ConclusionConclusion There has been significant progress in BPM in this There has been significant progress in BPM in this

decade.decade. Many of these challenges will and are being Many of these challenges will and are being

addressed in the future. Others may prove less addressed in the future. Others may prove less tractable and will take a little longer to solve.tractable and will take a little longer to solve.

Once this happens, for the first time we will have a Once this happens, for the first time we will have a complete, closed-loop approach to business complete, closed-loop approach to business processes: from conception to execution and back. processes: from conception to execution and back.

This will give executives the ability to design their This will give executives the ability to design their business processes, automate them, and determine business processes, automate them, and determine quantitatively how well they are doing against plan. quantitatively how well they are doing against plan.

With this information, they can then redesign or With this information, they can then redesign or optimize the processes. optimize the processes.

ConclusionConclusion

Gradually, the technologies and Gradually, the technologies and techniques described here will change the techniques described here will change the way businesses and governmental way businesses and governmental agencies apply technology. agencies apply technology.

In the words of Howard Smith, “Third-wave In the words of Howard Smith, “Third-wave business process management methods business process management methods and systems will utterly transform the way and systems will utterly transform the way companies conceive, build, and operate companies conceive, build, and operate automated systems.”automated systems.”

bpm promise and challenges. how did we get here? bpm is an old discipline that allows you to model...

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