COMP 5524 2
Business ProcessDifferent types of works, e.g. designing house, making breadIn all examples → One tangible thing that is produced or modified –house, bread – thing or caseWorking on a case → DiscreteEach case involves a process (procedure) being performed
Process – number of tasks that need to be carried out and a set of conditions that determines order of tasks
Task → Logical unit of work that is carried out as a single whole by one resourceResource → Generic name of person, machine or group that can perform specific tasks
WorkProduce All things Ourselves?Organize into business units
Organizing Workflows
COMP 5524 3
Processing of a Claim by Insurance Company1. Recording of receipt of claim;2. Establishing type of claim (fire, vehicle, professional);3. Checking client’s policy, to confirm that it does in principle cover what has been
claimed for;4. Checking the premium, to confirm that payments are up to date;5. Rejection → if task 3 or 4 has a negative result;6. Producing a rejection letter7. Estimating amount to be paid, based upon the claim details;8. Appointment of an assessor to reach the circumstances of the damages and to
establish its value;9. Consideration of emergency measures to limit further damages or relieve distress;10. Provision of emergency measures if approved as part of task 8;11. Establishment or revision of an amount to be paid and offer to client;12. Recording of client’s reaction: acceptance or objection;13. Assessment of objection and decision to reverse (task 11) or to take legal
proceedings (task 14);14. Legal proceedings;15. Payment of claim; and16. Closure of claim: filing
Process - Example
COMP 5524 4
SequenceTwo or more task that must be performed in strict order
Process Diagram
SelectionChoice between two or more task
SynchronizationBoth task must be completed before ‘rejection’ can begin
IterationRepeated assessment of an objection or revision of amount to be paid
COMP 5524 6
KnowledgeTacit Knowledge
Stored in Mind by ExperienceExplicit Knowledge
Learning and Information RetrievalKnowledge Management
Acquisition, Enrichment, Distribution of Knowledge at Right Time to fulfill a task
Atomic ProcessProcess that cannot be subdivided any further
ActivityPerformance of a task by a resource
Process CategoriesPrimary → Production Processes, Generates Income, Customer OrientedSecondary → Support Processes, Maintaining means of ProductionTertiary → Managerial Processes, Directs & Coordinates Pr/Sec Process
Process
COMP 5524 7
Links Between Types of Processes
Process
Products and services
Primary process
Support process Managerial processObjectives
and capital
Order
Raw materials and components
COMP 5524 8
Categories of Groupware (3C’s)Communication
Sending information, request, instructionsCollaboration
Working together on joint projectsCoordination
Participants in Process, Coordination is workflow …
Communication ProductsE-mail, chat, fax solutions, video Conferencing
Collaboration ProductsLotus Notes, Document Management System, CAD
Coordination ProductsIBM, Staffware, FileNet, Ultimus, etc.
GroupwareWorking Together is fundamental to modern Organization
COMP 5524 9
Coordination ProductsStructured or Semi-Structured Process
Reviews, Approvals, Processing Orders, Handling ApplicationsProjects
Groupware → Workflow AutomationProcess is essence of workflow or coordination
Design, Display, Monitor, Measure Business ProcessProcesses can be structured or semi-structured
Never be purely ad-hoc → Logic/Structure for automationWorkflow is Proactive → Push towards reaching goal/outcomeCoordination or Workflow → Every Organization in some way
Groupware
COMP 5524 10
Workflow DefinedA Sequence of Structured or Semi-Structured tasks performed in series or parallel by two or more individuals to reach a common goal
Workflow is a sequence of tasksThere is some logic to a workflow – not on purely ad-hoc basis Series or in parallel – LogicAt least two individuals – Individual cannot constitute wokflowWorkflow is geared towards producing results
Workflow Automation
COMP 5524 11
Example - Purchase Requisition Workflow
Any employee can initiate purchase requisition by filling a formSupervisor – Approve or Disapprove Simple example – Essential elements of workflow
Workflow Automation
COMP 5524 12
Workflow has numerous exceptions → Too complex to present graphicallySupervisor may not be at workBuyer may not have enough info for purchase, return back order for clarification
Every workflow requires monitoringEmployee need to know status of his application
Every step in workflow → Time and CostMeasuring Time and Cost, improvement in business process
Examples of Business Process - Workflow
Number and Type of workflow process vary from organization to organization
Workflow Automation
COMP 5524 13
Workflow Vs Workflow AutomationWorkflow
Simple routing of work from one person to anotherEmail attachment → Work has flowed from one to anotherNot Workflow automation, Why?Emails → Facilitates workflow but does not automate workflow
Workflow AutomationProactive control of entire workflow process, Start to Finish!Ability to monitor status of workflow, handle exceptions, generate metrics to improve performance of systemSoftware Applications → Microsoft exchange, Lotus Notes, Intelligent web sites, etc.,
Workflow features but they are not automating workflowWorkflow automation → Similarities with EAI (automation of system-centric processes)
Workflow Automation
COMP 5524 14
Essential Requirements for Workflow AutomationGraphical workflow representationRoles or job functionsRules embeddingException handlingMonitor status of workflow incidentsMetrics (cost-effectiveness and timeliness)Integration with third party applicationsProactiveDatabase connectivityWorkflow inbox
Workflow Automation
COMP 5524 15
EvolutionEAI → Automate movement of data, applications ⇔ computersWorkflow automation, movement of data between peopleDepartmental solutions → Emergence of EAI
Point Integration Solution
Unified Integration Framework Interface standardizationData transformationMappingSynchronization
Enterprise Application Integration
COMP 5524 16
EAI Business Processes
Workflow process and EAI driven process High degree of similarityNotable exception, data movement between applications and peopleOften confusion, EAI ⇔ Workflow → generic BPM productsVery different Challenges Technology trends → Minimizing gap
EAI and Business Processes
COMP 5524 18
RolePrincipals → The Boss and The CustomerOrganizations have Hierarchy
Contractor or Resource → Person Who is Assigned a TaskResource – Assignments can also be done by machines
Actor → Describes Principals and ContractorsCan play both roles – Principal or Subcontractor (or resource)
Contractor Can redirect or subcontract work to third parties
The Role of Customer → Depends on SituationIRD – Taxpayers, Prison Service – Criminals, etc.
Allocating/Accepting Work
COMP 5524 19
Allocating/Accepting Work
Principal ContractorSpecification
Quote
Assignment
Confirmation
Order
Completion
Communications Protocol
COMP 5524 20
ActorResponsible for ProcessCan assign or outsource task as whole to contractorCan decompose into process
Network of tasksEach of which he assigns to a contractorContract Tree
Another ApproachNetwork of tasks is created(Sub)contractors are selected
Allocating/Accepting Work
COMP 5524 21
Allocating/Accepting Work
Transport A-K
Transport D-KTransport A-D
Transport J-KTransport D-JTransport C-DTransport A-C
Principal PContractor Q Contractor R
Principal Q Principal R
Contractor S Contractor TContractor U Contractor V
Contract Tree
COMP 5524 22
Establishes how the work carried out by the organization in question is divided up amongst its staff
Division of authorities and responsibilities
Organizational StructureHierarchical organizationMatrix organizationNetwork organization
Organizational Structure
COMP 5524 23
Organizational Structure
Managing director
Head of productionAdministrationHead of Sales
Stores Dept.Production Dept.Sales ForceAdvertising Dept.
Organizational Chart
COMP 5524 24
Hierarchical organizationPurely hierarchical organizations → Virtually extinct nowDesigning
The capacity group – People with same skills, Same departmentThe functional department (Accounting, Maintenance)Process or production departments
Matrix organizationTwo dimensions
Functional (depends on tasks)Hierarchical (same as earlier)
Each PersonHierarchical bossFunctional boss
Example → Operate on Project Basis, Contractors
Organizational Structure
COMP 5524 25
Organizational Structure
Project-A Project-B Project-C
Supervisors Louise Anita John
Carpenters Pete Karl Geraldine
Masons Henry Tom Jerry
Painters Bert Simone Simone
Plasterers Charles Peter Paul
COMP 5524 26
Network OrganizationAutonomous actors collaborate to supply products or servicesVirtual organizationNo formal permanent employment relationshipMore and more network organizations are being created
Control fixed costSpecialist companies
Difference with matrix organizationResources do not have to be from the same employer
Organizational Structure
COMP 5524 27
Managing ProcessManagement system and a Managed systemSystem → People, machines, and IS that carry out particular processesManaged System
Low level management systemManaged System• Managed system at lowest level → an enactment system
Process ManagementA system of interlinked processes, involves concerted efforts to map, improve, and adhere to organizational processes
COMP 5524 28
Managing Process
management
management
managed system
management
enactment
Recursive Management ParadigmManaged System
COMP 5524 29
BPM PrinciplesProcess
AssetsShould be managed and continuously improvedIT is an essential enabler
Process Management1. Real-time management
2. Operational management
3. Tactical management
4. Strategic management
COMP 5524 30
Process Management
Management Level Time Horizon Financial Impact
Real-time Seconds-hours Low
Operational Hours-days Limited
Tactical Days-months High
Strategic Months-years Very high
COMP 5524 31
Process Management
Management level
Type of decisions Supporting methods
Real-time Equipment control Control theory
Operational Recourse assignment Combinational optimization
Tactical Recourse capacity planning and budgeting
Stochastic models (e.g., queuing models)
Strategic Process design and recourse types
Financial models, multi-criteria analysis
COMP 5524 32
Decision MakingDefinition
What the problem is, and what scope a solution to it must be found
CreationTo formulate one or more solutions that fall within the scope defined
EvolutionTo access different solutions, for instance by multi-criteria analysis
SelectionTo select one solution that works in order to implement it
COMP 5524 33
Evolution of Information Systems1965-1975
Decompose Applications → There was no exchange of data between different applications
1975-1985Database Management → The use of database has the advantages that data managed by different applications can be combined
1985-1995UIMS → User-Interface Management
1995-2005WFMS, Workflow Management → To support business process (procedure)
COMP 5524 34
Trends in Information SystemsEvolution
ProcessesAre becoming more important (BPR)Are subject to frequent changesAre becoming more complexAre increasing in number
OS OS OS OS
DBM
Sappl. appl.
DBM
S
DBM
S
WFM
Sappl.
appl
.
UIMS UIMS
1965-1975 1975-1985 1985-1995 1995-2005
COMP 5524 35
Set organizational goalsInventory all organizational processRankChooseDetermine incremental or radical improvementImplementMonitorRepeat step 4
Process Management Lifecycle
COMP 5524 36
Workflow Systems (Wil van der Aalst)human
orientedsystemoriented
groupware
workflow
transactionprocessing
P2P=
PersonTo
Person
A2P=
ApplicationTo
Person
A2A=
ApplicationTo
Application
Workflow SystemsFocus on classical workflow management systems, but ...
Four types of workflow-like systems:1. Information systems with hard-coded workflows
(process& organization specific)2. Custom-made information systems with generic
workflow support (organization specific)3. Generic software with embedded workflow
functionality (example, the workflow components of ERP, CRM, PDM, etc. systems)
4. Generic software focusing on workflow functionality (example, Staffware, MQSeries Workflow, FLOWer, COSA, Oracle BPEL, Filenet, etc.)
COMP 5524 37