Preparing for the Process Revolution

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    PROCESS ENGINEERING AND ENTERPRISE ARCHITECTURE

    Howard Smith

    CTO CSC EMEA

    co-chair BPMI.org

    Preparing for theprocess revolution

    Agility throughprocesses using e3

    June 2002

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    Breaking news!

    BPML 1.0 has been released!

    Semantic superset of BPML 0.5, MS XLANG, IBM WSFL

    BPMI.org and WfMC are collaborating!

    WfMC to adopt BPMN

    BPMI to adopt wf-xml for development of BPQL

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    Assumptions

    You know your business and understand agility

    Everyone needs a messaging backbone

    Until we have ubiquitous integration standards, someof us will continue to use EAI

    Modern workflow products are effective

    Workflow and EAI is a powerful combination BPMMiddleware

    Web services are long over due

    So whats new?

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    Business Process Management, Workflow and EAI

    Workflow in stack of EAI

    Workflow in stack of B2BI

    Workflow in enterprise architecture

    Application vendors looking to BPM middleware, while buildingout BPMS

    Invention of BPML, BPMS

    Customer

    Confusion

    Customer

    Confusion

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    CRM

    Provisioning Network Resource Mgt

    Network elements

    Marconi/ Cisco network

    Human Resources

    Financial Accounting

    Middleware

    Tuxedoand

    WebLogic

    Mediation

    XaCCT

    Usage

    Trouble

    TicketingIOB

    Web Portal Content

    Management

    Procurement

    Order Management,

    Rating and Billing

    Decision Support

    Network Fault

    Management

    Network Perf.

    Management

    176 business processes

    A total of 127 third party components

    409 bespoke screens in place of 6000 COTS screens

    seven month project time-scale

    three parallel projects: -BSS -OSS -ERP/CRM 9 proof of concepts up to 160 CSC and supplier personnel

    UK broadbandtelecommunicationsoperator, employing

    200 people andproviding leading

    edge managedservices to wholesale

    and corporatecustomers.Their

    network of 350,000fibre km runs

    alongside 3,500 km ofcanal networks. Their

    parent companyMarconi Plc set

    Easynet the objectiveof becoming a stand-

    alone business, no

    longer reliant onMarconi IT systems.

    e3 Case study 1998

    CSC Proprietary 6/30/2002 1:03:50 PM 5

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    Old definition of processes

    Work that was partially done before the person got tired and left

    Work that is waiting for a telephone call from a customer

    Work that has to be processed at a specific time

    Work that has to be transferred to a different person, because theperson who did the first part got sick or quit before completingthe task

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    Evolution of workflowCharlie Plesums, WfMC Not just

    supportingpeople work

    Not justsupportingpeople work

    Routing work horizontally between resources, including systemsand machines

    Routing work vertically, controlling steps that will be performedalong the process, such as invoking an automated service

    Data moved between processes, so integration with enterpriseapplications

    Workflow pushing into domain occupied by EAI

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    Escalating process-related customer requirementsis driving a search for new tools

    IT companies spending 20-30% of IT budget on integration

    End users assume computer systems should be interoperable

    Systems integrators expected to do more for less $

    Integration projects extend into value chain

    Hundreds of enterprise applications in use, despite ERP

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    Process requirements

    End user control of delivered

    processes Extreme levels of process

    customisation and adaptation

    Continuous processimprovement, optimisation andtuning

    Improvement extends to allprocesses, not just departments

    Focus on challenging, dynamic,

    extended core processes No distinction between human

    work and computer work

    Incremental process automation

    Emphasis on manageability, not

    just automation End to end, no isolated pockets of

    process or application

    Enterprise architecture, notpiecemeal integration

    Joined up thinking, processdesign reflects customer drivenstrategy

    Top down deployment, eradicate

    and avoid IT constraints Long lived, value chain wide,

    transactional, multi-participant,dynamic, business processes

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    The Next Fifty Years?

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    The Next Fifty YearsThere is something wrong with IT,something dreadfully wrong. For the

    past fifty years computers havebeen data machines recording theafter-the-fact results of businessactivity.

    Companies are stuck in this data-centric world of IT where there's anever growing disconnect betweenthe business and the technology it

    deploys.

    Because the data-centric paradigmof IT won't take us past where we

    are today, we must break it!mkpress.com

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    Terminology

    Business Process Management Initiative (BPMI.org)

    Business Process Management System (BPMS)

    Business Process Modelling Language (BPML)

    Business Process Modelling Notation (BPMN) Business Process Query Language (BPQL)

    Web Services Choreography Interface (WSCI)

    Unification of data, procedure and interaction, not just in theform of a new system, but an innovation in computer science

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    Two Key Industry Trends

    Business processes

    very differentEssentially the same

    but simpler and more interoperable

    Web Services BPMS

    Data, Procedure, Interaction

    (Complex, non-interoperable)

    Data, Procedure, Interaction

    (Complex, non-interoperable)

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    The Big Picture - BPMSProcess Aware

    Applications

    Legacy

    (operational

    Systems)

    Web services

    Standards &

    wrappersNew

    capability

    BPMS

    Connectors Projectors

    Web services

    Legacy

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    An analogy from past success

    Visicalc gave business people direct manipulation of familiarrows and columns of data, and the ability to conduct what-ifanalyses to optimise results

    Shift from hierarchical to relational data

    Demands for data management, aggregation and analysis

    Growth in significance of business data previously embedded inand tied to applications structure and business logic

    Opportunity to create new applications (e.g. ERP)

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    Value is delivered to the enterprise through newcapabilities and applications built upon them

    Platform

    Applications

    Mainframe

    MRP

    Operating System

    ERP, CRM, SCM

    Web Services

    EPM, BPC, BPO

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    Four viewpoints on BPM

    Processes driving service composition and orchestration

    Process manufacturing, process as first class entity

    Process data, BPMS

    Process aware applications, BPQL

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    Trends in Business Platform

    I run my businessBy managingmy processesBy managingmy processes

    On this

    mainframe

    On this

    mainframe Using ERPUsing ERP

    Distributed processes

    does not necessarily

    imply distributed

    computing!

    Distributed processes

    does not necessarily

    imply distributed

    computing!On this

    database

    On thisdatabase

    On theInternetOn theInternet

    Sharingdata

    (RDBMS)

    Sharingfunctions

    (Web Services)

    Sharingprocesses

    (BPMS)

    Data centricarchitecture

    Distributedcomputing

    Process centricarchitecture

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    Source Ron Brown

    Decreasing the turning circle of IT

    ActualBusiness

    Processes

    Business

    Processes

    Delivered

    by IT

    Alignment

    Process management

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    Process equivalence using BPML and BPMN

    Process discovery

    Process re-engineering

    EquivalenceDesired

    Actual

    IT

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    Traditional Process Mapping

    Pluses

    Generates lots of diagrams Easy to use tools for business

    users

    Well documented business

    processes Ability to conceive and plan

    end to end processes

    IT assisted in understandingthe business

    Collaborative tools canfacilitate organisationallearning

    Minuses

    No generation of executablecode

    No path to implementation

    Same diagram meaning

    different things Different diagrams meaning

    the same thing

    Some tools locked tomethodology

    Risk of business losingpatience

    Repository full of out of datediagrams

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    Case 2

    Urgent need to refresh of processes for next phase of growth

    Business user involvement in process design seen as critical IT fail to translate processes accurately into new systems

    Business loses interest in process mapping

    IT decide the tool and method is at fault

    IT ask business to re-map processes, business refuses

    Options

    Senior management to kick start the process? Go back to more traditional methods of requirements capture?

    In the meantime, diagrams collected are already out of date

    dead in the water

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    Traditional EAI, B2BI BPM middleware

    Minuses

    Partial generation ofexecutable code

    Constrained by proprietarymiddleware & no standardarchitecture

    Restricted to technical users Poor support for end user task

    mgt

    No visibility of the actualbusiness processes

    Requires buy in to anarchitectural vision set by themiddleware

    Processes may get locked inthe integration strategy

    Pluses

    Powerful tools for softwareengineers, helps them managethe complexity of the systemsthey built

    Off-the-shelf connectivity tostandard IT systems

    Option to defer BPM decision

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    Case 3

    Global company feels encumbered by legacy systems

    Business collaboration blocked due to lack of integration No consistent enterprise architecture after years of point to point

    solutions

    IT looks to IT solutions

    Requirements drawn up for integration

    Business view largely around processes

    IT view largely around EAI

    Long winded EAI package selection

    Within 6 months following EAI deployment, the business isdemanding processes that EAI cannot deliver

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    Case 4

    Manufacturer buys EAI on the back of a new application

    development project (EAI is bundled with the new package) IT realises EAI can be used for other purposes

    Point to point EAI projects pop up all over the business at pointsof pain

    EAI support costs start to escalate

    No business owner for the EAI hub

    Point to point interfaces fall into disrepair

    EAI became the new legacy

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    Learning from the past: E F Codd

    Large data banks must be protected from having to know how the data

    is organised in the machine (the internal representation) Activities of users and most application programs should remain

    unaffected when the internal representation of data is changed

    Changes in data representation will often be needed as' a result of

    changes in query, update, and report traffic and natural growth in thetypes of stored information

    A model based on n-ary relations, a normal form for data baserelations, and the concept of a universal data sub language are

    introduced Three of the principal kinds of data dependencies which still need to be

    removed from existing systems: ordering dependence, indexingdependence, and access path dependence

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    Processes have unique characteristics

    Business processes, computer networks, cellular telephonynetworks, air traffic control networks and distributed computingenvironments

    Systems whose participants communicate, interact, interrupt oneanother and change their structure

    Systems that grow, shrink, morph, merge and split

    Systems whose participants change their relationships and movethrough the environment

    Mobile structure, focus on the interaction

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    Different technologies have different First Classcitizens

    Relational database Table, Procedure

    Java Programming Object, Component

    Workflow Management Document, Resource

    Enterprise Application Integration Application Programming Interface

    BPM Process

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    BPML has a mathematical foundation

    Electronic engineers respect the differential calculus

    Database engineers respect the relational data model

    Process engineers respect the Pi-Calculus

    Formal process systems can be trusted

    just like you trust your RDBMS

    Formal process systems can be used for programming

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    Measuring the value

    Process design to production time Process design to production cost

    Process automation level

    Process lifecycle continuity Process value chain coverage

    Process transactionality level

    Process customisation level

    Process completion time

    Total cost of process ownership

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    e3 Case studies 2003

    Global Logistics Company wanting to design corporate processes topdown and manufacture localised variants (Process Customisation) to

    avoid duplication among business units National Communications Operator needs to respond to market

    opportunities or products announced by competitors by radicallyreducing time to introduce new tariffs (Process Design to ProductionCost) from weeks (or months) to days

    Global Bank trying to understand why proprietary BPM middleware is notgiving them the end to end process management they seek (ProcessManagement)

    IT Services Firm discovering that workflow engines insufficient to meetchallenges of Business Process Outsourcing Operational Environment

    (Process Value Chain and Automation Coverage) Global Telecommunications Company and Global Financial Services

    Company disappointed that Process Mapping failed to provide efficientProcess Design to Deployment (Process Semantics, Process Path toImplementation)

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    Summary

    Need for an improved process lifecycle management Discovery, design, deployment, execution, operations, optimisation

    Its flow charts! - Thank goodness.

    I understand this :-)

    A CSC customer

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    www.fairdene.com/processes

    www.bpmi.org

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    Contact details

    CSC e3Ron Brown

    Technical Director, CSC Consulting & Systems Integration UK

    [email protected]

    +44 (0)7711 455478

    BPMI.org

    Howard SmithCTO, CSC EMEA

    [email protected]

    +44 (0)1252 363945

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    Questions