BPMBPMPromises and Promises and

ChallengesChallenges

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 processes, organizational structure, define the business processes, and show their interactions. and show their interactions.

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

Traditionally taught in business schools, it is put into Traditionally taught in business schools, it is put into practice with varying degrees of success. practice with varying degrees of success.

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

Over the last two decades, the public and private Over the last two decades, the public and private sectors have been giving increasing attention to sectors have been giving increasing attention to business processes.business processes.

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

What is different today is the novel use of What is different today is the novel use of computing technology to drive the analysis and computing technology to drive the analysis and automation of business processes.automation of business processes.

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

Innovations in technology such as XML, Web Innovations in technology such as XML, Web Services, Service Oriented Architecture, Service Services, Service Oriented Architecture, Service Catalogs, component-based deployment, and Catalogs, component-based deployment, and information messaging have fueled the current information messaging have fueled the current interest in BPM.interest in BPM.

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

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

That was the last decade.That was the last decade.

Today, organizations are looking to BPM to help solve Today, organizations are looking to BPM to help solve problems, like:problems, like: To be competitive, a supplier needs to cut its costs To be competitive, a supplier needs to cut its costs

for fulfilling customer orders, for fulfilling customer orders, by 70 percentby 70 percent.. A pharmaceutical company seeks to extend the A pharmaceutical company seeks to extend the

patent life of its drugs by bringing new products to patent life of its drugs by bringing new products to market, market, one month earlierone month earlier..

A government agency, A government agency, forced to reduce staff by forced to reduce staff by 30 percent30 percent, must find a way to consolidate and , must find a way to consolidate and streamline its unemployment benefits services.streamline its unemployment benefits services.

Personally accountable under the Sarbanes-Oxley Personally accountable under the Sarbanes-Oxley Act, company executives Act, company executives need to control and need to control and verify the processverify the process used to produce financial used to produce financial statements. statements.

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

Is this promise being fulfilled? Is this promise being fulfilled? BPM technologies are becoming more mature and BPM technologies are becoming more mature and

BPM does have the potential to deliver significant BPM does have the potential to deliver significant value.value.

But there are still elements that are missing that But there are still elements that are missing that limit its effectiveness. limit its effectiveness.

Thus, many Developers and Business Analysts still Thus, many Developers and Business Analysts still find themselves asking the basic questions: find themselves asking the basic questions: What is it? What is it? Why should we care?Why should we 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 the four specific “Challenges” Its focus is on the four specific “Challenges” facing BPM and they are aligned to the four facing BPM and they are aligned to the four phases of the typical application development phases of the typical application development life cycle. life cycle. DiscoveryDiscovery DesignDesign DevelopmentDevelopment DeploymentDeployment

The Discovery ChallengeThe Discovery Challenge Typically, Business Analysts, needing to discover Typically, Business Analysts, needing to discover

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

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

They employ a drawing “metaphor” in which They employ a drawing “metaphor” in which a Business Analyst or Developer sketches the a Business Analyst or Developer sketches the process using a palette of standard icons.process 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 organizations however, simply Most organizations however, simply do not know do not know their end-to-end processes accurately or in detail.their end-to-end processes accurately or in detail.

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

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.

How can you discover, How can you discover, how a business operates?how a business operates?

The Top-down approachThe Top-down approach The Top-down discovery approach typically The Top-down discovery approach typically

begins with the organization chart. It lists the begins 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.

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.

The Bottom-up approachThe Bottom-up approach

The Hybrid approachThe Hybrid approach 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 are they operate, different discovery methods are probably more appropriate.probably more 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 key requirementkey requirement that management that management support and drive the business-process discovery. support and drive the business-process discovery.

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

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 easily information contained in the processes cannot be easily changed or analyzed effectively in these diagrams.changed or analyzed effectively in these diagrams.

Technical ConsequencesTechnical Consequences Accurately capturing the current or “as-is” process is a Accurately capturing the current or “as-is” process is a

prerequisite for defining the structure and rules of the prerequisite for defining the structure and rules of the “to-be” process. “to-be” process.

Without this level of understanding, a BPMS Without this level of understanding, a 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 may The process automation, implemented using BPMS may therefore, fall short of the true goals of the business. therefore, fall short of the true goals of the 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 processes? products to discover and analyze business processes? This would seem to solve this problem. This would seem to solve this problem.

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

The Design ChallengeThe Design Challenge 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 constructs, draws the process, adds implementation constructs, and then executes the process. 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.

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 “process language” to express ideas. “process language” to express ideas.

Process LaboratoryProcess Laboratory

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

Process LanguageProcess Language

The relevant organizations are:The relevant organizations are: Workflow Management Coalition (Workflow Management Coalition (WfMCWfMC)) Object Management Group’s - Business Object Management Group’s - Business

Process Management Initiative (Process Management Initiative (BPMIBPMI)) World Wide Web Consortium (World Wide Web Consortium (W3CW3C)) OASISOASIS..

Organizational GroupsOrganizational Groups

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 (WSBPEL, Execution Language for Web Services (WSBPEL, BPEL4WS, etc.)BPEL4WS, etc.)

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.

BPELBPEL

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 central process engine that interacts with a set of business partners.of business partners.

Each Web-Service operation is performed either Each Web-Service operation is performed either by one of the partners or by the central process by one of the partners or by the central process engine itself.engine itself.

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

message messagepartner partnerprocessengine

stock orderport type

process stockexchange

stocktransaction

port type

buyerLink

role:buy requestor

role:buy service

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 (Stock broker interacting with a stock exchange (Stock Broker Process).Broker Process).

The service link is a bilateral contract between the The service link is a bilateral contract between the Stock Broker “Stock Broker “process” and the “” 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.

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 links, data containers, and assignment operations. operations.

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

BPEL also addresses technical constructs BPEL also addresses technical constructs required for proper execution of the business required for proper execution of the business process. process.

These include correlation, fault handling, and These include correlation, fault handling, and compensation.compensation.

CorrelationCorrelation - is the technique used to create - is the technique used to create associations between process instances by using associations between process instances by using the data fields as identifiers. the data fields as identifiers.

For example, a field “order number” might be For example, a field “order number” might be used to correlate a purchase order and a used to correlate a purchase order and a purchase-order acknowledgment. purchase-order acknowledgment.

Fault handlingFault handling and C and Compensationompensation specify the specify the procedures to be followed when an error occurs procedures to be followed when an error occurs in the process. in 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. 1.1. Use the structured activity called “sequence.” Use the structured activity called “sequence.” 2.2. Connect these activities through a link within a Connect these activities through a link within a

flow. flow. The BPEL specification provides no hints as to when to The BPEL specification provides no hints as to when to

use one technique or the other.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 it has several BPEL is a significant achievement, but it has several weaknesses that limit its widespread adoption:weaknesses that limit its widespread adoption: It addresses only processes composed It addresses only processes composed

exclusively of Web services.exclusively of Web services. 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.

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

It provides no capabilities for process analysis.It provides no capabilities for process analysis. 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 universally royalty-free standard published by a universally 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 Management Language). Management 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 have introduced Microsoft, IBM, and BEA Systems have introduced BPEL in their products, but as expected, with BPEL in their products, but as expected, with proprietary language extensions and some tools to proprietary language extensions and some tools to aid in process design. aid in process design.

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

Given a BPEL process definition, you will find it Given a BPEL process definition, you will find it nearly impossible to disentangle the business nearly impossible to disentangle the business logic from the details of the implementation. logic from the details of the implementation.

The business semantics are obscured by the The business semantics are obscured by the technical details required for execution. technical details required for execution.

What is lacking is a way to layer BPEL, to filter What is lacking is a way to layer BPEL, to filter out such technical constructs as fault handling, out such technical constructs as fault handling, correlation, and transaction management. correlation, and transaction management.

Business ConsequencesBusiness Consequences

It should be possible for a Business Analyst to It should be possible for a Business Analyst to use a process language to design the business use a process language to design the business logic. logic.

Once the business logic is mapped out, a Once the business logic is mapped out, a Developer can insert the technical constructs. Developer can insert the technical constructs.

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

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.

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 a new system performs 25 activities across 17 If a new system performs 25 activities across 17 processes, then these activities can be 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.

The Development The Development ChallengeChallenge

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

Business Analysts and Developers are driven by Business Analysts and Developers are driven by different goals, speak different languages, and work different goals, speak different languages, and work at different levels of precision. at different 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 does automated business processes whose execution does not match the original business requirements. not match the original business requirements.

Business Analysts typically communicate business Business Analysts typically communicate business needs (in the form of requirements) to the needs (in the form of requirements) to the Developers, who may interpret the needs rather Developers, who may interpret the needs rather differently. differently.

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 is are sometimes suggested as an alternative. UML is well suited for developers who need to design class well suited for developers who need to design class diagrams and lay out the interactions between diagrams and lay out the interactions between method calls. method calls.

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

The business consequences of the gap between The business consequences of the gap between Business Analysts and Developers are: Business Analysts and Developers are: increased risk of failureincreased risk of failure longer lead times for development.longer lead times for development.

The Standish Group discovered:The Standish Group discovered: 31 percent of all software development projects 31 percent of all software development projects

are cancelled before they are completed.are cancelled before they are completed. 53 percent are either not completed on time, 53 percent are either not completed on time,

budget, or fail to deliver the projected budget, or fail to deliver the projected functionality. functionality.

16 percent of projects are completed on time and 16 percent of projects are completed on time and on budget. on budget.

Business ConsequencesBusiness Consequences

The classical requirements documentation leaves The classical requirements documentation leaves considerable room for interpretation. considerable room for interpretation.

It rarely provides the level of precision needed by IT It rarely provides the level of precision needed by IT Developers, who need to know:Developers, who need to know: Each activity that must be performed by the systemEach activity that must be performed by the system The step-by-step control logic of the enveloping The step-by-step control logic of the enveloping

business processbusiness process The specific data required at each step of the The specific data required at each step of the

processprocess 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 analysis and the development teams. between the analysis and the development teams.

Redefining requirements, redesigning, and recoding Redefining requirements, redesigning, and recoding midstream are expensive and time-consuming.midstream are expensive and time-consuming.

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

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

The Deployment The Deployment Challenge Challenge

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 monitor We know how to instrument IT systems and monitor them with a high degree of precision. 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 (BAM) for this capability

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 vendors have developed BAM Recently, several vendors 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.

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

Often it is done in an ad hoc manner, in which Often it is done in an ad hoc manner, in which reports from legacy systems are combined into a reports from legacy systems are combined into a data warehouse from which summary reports can be data 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 Executives will know about hotspots that

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

discovery

analysis

execution

design

ProcessMaps Requirements

XML ImportsBAMDashboards

This figure summarizes this life-cycle concept.This figure summarizes this life-cycle concept.

ConclusionConclusion Any enterprise can be viewed as the sum of its Any enterprise can be viewed as the sum of its

business processes. 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 based language for describing business processes composed of Web services.processes composed of Web services.

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 which to design, analyze, and simulate business processes.business processes.

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

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

There has been significant progress in BPM in There has been significant progress in BPM in this decade and many challenges will, and are this decade and many challenges will, and are being addressed in the future. being addressed in the future.

Others may prove less tractable and will take a Others may prove less tractable and will take a little longer to solve.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 gives executives the ability to design their This gives executives the ability to design their business processes, automate them, and judge business processes, automate them, and judge quantitatively how well they are doing against their quantitatively how well they are doing against their plan. plan.

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

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

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