IBM FSS Nordic
BMP IBM Vision Tools and Experience © 2003 IBM Corporation
Business Process Management IBM – Vision, Tools and Experience
5. December 2006Copenhagen, ITUBo Ebro Christensen, Executive IT Architect
IBM FSS Nordic
2 BMP IBM Vision Tools and Experience2 07-04-23 18:45
Topics
Classifications and definitions Business background Vision, goal, tools, and methodology Project samples – and experiences Challenges, future development
IBM FSS Nordic
3 BMP IBM Vision Tools and Experience3 07-04-23 18:45
Process Models
BPM
BPM Landscape – scope of discussion
IT Supported BPM
Models, Monitor
Workflow Centric BPM
Based on• Open Common Standards• Tools• Models
Models, Execution Engine, Monitor
IBM FSS Nordic
4 BMP IBM Vision Tools and Experience4 07-04-23 18:45
Business Process Management and Workflow
The term Business Process Management refers to activities performed by businesses to optimize and adapt their processes.
Although it can be said that organizations have always been using BPM, a new impetus based on the advent of software tools which allow for
direct execution of the business processes without a costly and time intensive development of the required software.
In addition, these tools can also monitor the execution of the business processes, providing managers of an organization with the means to analyze their performance and make changes to the original processes in real-time
BPM has a tight link to componentized and service oriented IT architecture
IBM FSS Nordic
5 BMP IBM Vision Tools and Experience5 07-04-23 18:45
BPM landscape - Workflow Classification
User Experience
Collaboration
Documentsand formsProcessing
Data and FunctionIntegration
DocumentCentric WF
systems
CollaborationBased
WF systems
Business ProcessManager
(BPEL Engine)
Departmentor single userWF systems
IBM FSS Nordic
6 BMP IBM Vision Tools and Experience6
Workflow – what is it ?
ServiceX
ServiceU
ServiceY
ServiceZ
Human Task A
Human Task D
Human Task F
Human Task B
Human Task C
Workflow
Invoke
Invoke Invoke Invoke
Workflows implement business processes
Workflow engine navigates the network of activities
Typically invoking automatic (service choreography) or manual activities
Mostly visual programming/modeling
IBM FSS Nordic
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Cost Benefit
Benefit sample:Pilot project: 1 hour saved/process instance, 400 instances pr day400 H/day = 60 FTE
Process Management Project Cost
FI-1 FI-2
Customer
Eff
ort
(D
ays)
Infrastructure
Flow Development
Business Modeling
Implementing an enterprice wideBPM Infrastructure is a majorstrategic investment.
IBM FSS Nordic
8 BMP IBM Vision Tools and Experience8 07-04-23 18:45
Business benefits from the Process Oriented Approach
Process modeling - a new approach to application and service development – a radical change from traditional application development
Key benefits: Visibility & commonality of processes
Processes as the common ”language” between IT and business
Cost reduction through flexible automation – typically 20+%
Process optimization and streamlining across applications and the enterprise
Continuous, nondisruptive process improvement
Monitoring provides understanding of WHERE the employees spend their time
Base for new automation Faster implementation of changes in processes – typically 30+%
Optimizing skills usage in the business
Excellent match & synergy with SOA/ESB
BUT : Users think in ”Cases” – same person for the whole case – takes time to start thinking in processes / activities ”best man for the job”
IBM FSS Nordic
9 BMP IBM Vision Tools and Experience9 07-04-23 18:45
Modeling for Different Goals
Modeling For Compliance/Documentation Document processes for use by a business to understand the business
process
Customers use output for training, collaboration, documentation requirements for compliance regulations (Sarbanes-Oxley and Basel II)
Linkage to real-time monitoring provides a feedback mechanism for reporting requirements needed for compliance
Modeling For Redesign Document both the current state and future state business process and
the comparison to determine Return on Investment (ROI) analysis
Six Sigma and process improvement are common methodologies Modeling For Execution
Future state business process has runtime characteristics associated to it, so the model is passed to application, workflow and business process development tools.
IBM FSS Nordic
11 WebSphere Process Choreographer Practical Experience11 07-04-23 18:46
The Cycle of Business Process Management
Integrate
TransformManage
Monitor
Model
Establish process modeling methodology
Create the As-Is Process
Create the To-Be Process
Build business measures
Communicate and verify business process model
Simulate processes to verify model
Build the implementation model (BPEL)
• People
• Service
• Data
Integrate and connect implementations
Deploy
Monitor the Processes
IT and Business Perspective
Monitor Key Performance Indicators
Add corrective actions, automatic or manual
Feed the model for ‘as-is’ cycle initiation
Accelerate With Best Practice Models
IBM FSS Nordic
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Business Process Management Programmes
CBMBusiness Modeler
Publish Server
WID(Eclipse)
Rational (RAD)(Eclipse)
WPSWebSpere Process Server
Business Monitor
Tooling:• Component Business Model (CBM) + Modeler: identify and define processes and scope of project• WID + Modeler: Specify workflow part of the process• Rational RAD: Define and implement services in the SOA• WebSphereProcessServer (WPS) – runtime – execute the workflow processes on a WAS server• Monitor – Follow up on KPI, SLA and process effieciency • WSRR – WebService Registry & Repository for stuff like WSDL, XSD, Processes
WebService Registry & Repository (WSRR)
(Eclipse)
The process of developing processes
IBM FSS Nordic
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From Component Business Models to ServicesCompetency Based Retail Bank Component Map
Ins
igh
tIn
sig
ht
Risk &
Fin
an
cia
l R
isk & F
ina
nc
ial
Ma
na
gem
ent
Ma
na
gem
ent
DistributionDistribution
InfrastructureInfrastructure
ProcessingProcessing
ManufacturingManufacturing
ProductDirectory
ProductDevelopment& Deployment
Marketing
MarketResearch
CampaignExecution
ApplicationProcessing
CustomerPortfolio &Analysis
CreditManagement
CustomerProfile
Contact/EventHistory
Corresp-ondence
SmartRouting
Dialogue Handler
CustomerBehavior& Models
CaseHandling
Sales
Collections& Recovery
FinancialsConsolidation
Treasury
Service/Sales
Administration
Recon-ciliations
FinancialControl
OperationsAdministration
Securitization
InventoryManagement
RewardsManagement
FinancialCapture
PaymentsCustomerAccount
MerchantOperations
Billing
AuthorizationsProduct
Processing
HumanResource
Management
SystemsDevelopment & Administration
BusinessAnd Resource
Planning
Alliance &Authority
Management
BusinessPolicies &
Procedures
AllianceSLA
Administration
RiskManagement
Audit/Assurance/
Legal
AccountingGeneralLedger
BusinessArchitecture
AcquisitionPlanning Product
Management
CustomerAccounting
Policies
Production &Operations
ManagementCustomer
Servicing & salesPlanning
SegmentAnalysis &Planning
BusinessUnit
Tracking
Asset &Liability Policy
& Planning
Branch CashInventory
CustomerCredit
Administration
FinancePolicies
FacilitiesOperation &Maintenance
LocalBranch
Administration
BankTeller
Services
Wireroom(S.W.I.F.T.)
ProductionAssurance(Help Desk)
DocumentManagement
RetailLending
(Mortgages)
SecuritiesMarket
Analysis
Channel/Distribution
Management
MarketInformation
AdvertisingCampaigns
Applications
Deposits(DDA)
Statements
AcquisitionAdministration
ConfirmationsContract Notes
ConsolidatedBook/PositionMaintenance
ServicingManagement
RetailPortfolio
Administration
FundManagement
ProductTracking
CustodyAdministration
CustomerContactHandler
RelationshipManagement
Settlements Valuations
CollateralHandling
RetailSecurities
PortfolioTrading
Trading(Back Office)
Trading(Front Office)
OTCServices
Self-serviceChannel
(ATM, Web)
In-boundCall Center
FixedAsset
Register
LoanSyndication
BranchNetwork
Operations
Produkt-valg
Behovs-analyse
Kundeanalyse
BeslutEfekt-
uer Forvalt
EvaluerKunde
Udfør plan
Kredit-plan
StartSag
UdførSag
Udfas Sag
............ ........................ ........................ ........................ ............
Division
SharedService
Customer
Supplier
Outsourced
To services
From components
To services
To Services
Processes
IBM FSS Nordic
17 BMP IBM Vision Tools and Experience17 07-04-23 18:46
Danske Bank Process Management Project
2000 2001 2002 2003
SOAdecided
SOA in production
Workflowin
production
Process Choreographer
decided
Handling bad debts
ProcessesImplemented: 200+
2004 2005 2006
Processes pr day
10000
CustomerPackages
DebtCollection
Sales Counselling
(8000 employees)
Direct Customer product Ordering
Retirementengagements
IBM FSS Nordic
18 BMP IBM Vision Tools and Experience18 07-04-23 18:46
FI-1 Process Management Project
2000 2001 2002 2003 2004 2005 2006
SOA
Process
Methodology
Modeler
Monitor ?
Approach: Step by step, each step takes 2 years.Goal: Implement processes as workflow as part of new developmentProcesess: Approx 200Governance: Not much needed
IBM FSS Nordic
19 BMP IBM Vision Tools and Experience19 07-04-23 18:46
The traditional IT development process – AS-ISBusiness IT
This iswhat I want
This iswhat I’ll get
RequirementAnalysis
breakdownrequirements
• round• hollow• air inside• elongated. Length> height
Design torequirements• round• with a hole• air inside• width > height
Disjoint, Slow
IBM FSS Nordic
20 BMP IBM Vision Tools and Experience20 07-04-23 18:46
The traditional IT development process TO-BE
Business IT
This is the processI want implemented
OK, come backand test in 3 weeks
Fast, solution oriented
IBM FSS Nordic
21 BMP IBM Vision Tools and Experience21 07-04-23 18:46
FI-2 Process Management Project
2005 2006 2007 2008 2009 2010 2011
SOA IBM Broker
Process (WID/WPS)
SOA/Process Methodology
Modeling QLM/Modeler
Monitor ?
Process (non-IBM)
Portal (WebSphere)
Document Management /Journaling (IBM CM)
Shift of platform / batch in J2EE
Approach: Full blast on all projectsGoal: Total replacement of core systems, applications and platformProcesses: Several hundredGovernance: Highly needed
IBM FSS Nordic
22 BMP IBM Vision Tools and Experience22 07-04-23 18:46
SOA
Workflow ManagementAPI
Overall Runtime Architecture - implementing the infrastructure
End User Interface (Portal)
Staff Resolution Work Item Mgr
WorkflowEngine
Workflow Management Business Applications
End User Interface
ApplicationServices
Infrastructure Support
DocumentManager
User Registry
ArchiveManagement
InformationWareHouse
Monitor
Case ServiceObj reference
23
IBM FSS Nordic
BMP IBM Vision Tools and Experience
Overall Runtime Architecture
Human Task
Process
Human Task
Human Task
Human Task
Human Task
Human Task
Human Task
Human Task
Organization And Roles
Invoke Invoke Invoke Invoke Invoke Invoke Invoke Invoke
Application Core System
Application Document Management
Application Accounting
Application Core Systrem
SOA – Enterprice Service Bus
IBM FSS Nordic
25 BMP IBM Vision Tools and Experience25 07-04-23 18:46
BPC and SOA – an excellent match
1. BPEL processes invoke services defined by a WSDL file
2. Get the WSDL from your repository (UDDI, WSRR or home grown)
3. Drag&Drop WSDL file to create:1. Invoke activity
2. With defined input
3. And defined output
4. And error handling
BPEL Process Editor ”standard edition” available as open source
IBM FSS Nordic
26 BMP IBM Vision Tools and Experience26 07-04-23 18:46
Whats new with this kind of modeling ?
Menu:ABCDEF
ServiceA
ServiceB
ServiceC
ServiceD
ServiceE
ServiceF
A
B
C
D
E
F
Traditional applications canbe modeled
But it is not efficient !
IBM FSS Nordic
27 BMP IBM Vision Tools and Experience27 07-04-23 18:46
Menu based case processing can easily be modelled
Menu:ABCDEF
ServiceA
ServiceB
ServiceC
ServiceD
ServiceE
ServiceF
• Process state is in the head of the user• Usually same user for all activities (inflexible)• No specialization (”Do what you do best”)• User must understand process (skills)• Business rules in the head of the user (skills)• Business rules harder to change (efficiency)• Error handling is left to the user (skills)• Automation usually not done (requires context)
Human workflow engine....
IBM FSS Nordic
28 BMP IBM Vision Tools and Experience28 07-04-23 18:46
Workflow solution
ServiceA
ServiceB
ServiceC
ServiceD
ServiceE
ServiceF
Staff A
Staff E
Staff D
Staff F
Staff B
Staff CIf Amount >100000
Workflow
Supervisor Clerk
• The workflow keeps the welldefined state and does the navigation• Specialization possible using allocation rules (staff queries)• Free navigation (choice) where possible (B and C)
Do both in any sequence
IBM FSS Nordic
29 BMP IBM Vision Tools and Experience29 07-04-23 18:46
Workflow solution
ServiceA
ServiceB
ServiceC
ServiceD
ServiceE
ServiceF
Staff A
Staff D
Staff F
Staff B
Staff CIf Amount >100000
Workflow
Supervisor
• Automation possible• Process optimization (change business rules) is done in the flow
• Business Rules Engine in V6• Errors due to wrong navigation are reduced• Error handling can be build into the flow
Do both in any sequence
Invoke
If Amount >200000
IBM FSS Nordic
30 BMP IBM Vision Tools and Experience30 07-04-23 18:46
Key Features
We have had workflow technology for years – so what’s new?
Customers are very focused on business processes and the process oriented approach right now
Based on standard WebSphere run-time – no new run-time platform required – no proprietary run-time
Based on Eclipse – no new development platform required Based on Open Standards (IBM, Microsoft, BEA, ++) Excellent fit with SOA, emerging WebServices standards while still
supporting existing integration requirements (CICS, IMS,++) Process Choreographer is an excellent product – taking the best
from MQWF, WICS and other workflow products from the last 15 years
IBM FSS Nordic
31 BMP IBM Vision Tools and Experience31 07-04-23 18:46
BPM landscape - future direction
User Experience
Business ProcessManager
(BPEL Engine)
Collaboration Documentsand formsProcessing
Extending BPEL with additional model elements
Data and FunctionIntegration
IBM FSS Nordic
32 BMP IBM Vision Tools and Experience32 07-04-23 18:46
BPM landscape - future direction – extending the BPEL Model
User Experience
Business ProcessManager
(BPEL Engine)
Collaboration Documentsand formsProcessing
Extending BPEL with additional model elements
II4BPEL
Work-placeForms
Page-flows
GUI Genera
-tors
SinglePersonFlows
BPEL is inherently extensible
BPEL4People
Follow-on &
Subtask
Data and FunctionIntegration
IBM FSS Nordic
33 BMP IBM Vision Tools and Experience33 07-04-23 18:46
BPM landscape - software products versus customer patterns
Customer 4 Customer 2
Customer 3
Customer 1
IBM BPMProduct Scope
Best PracticePatterns
Best PracticePatterns
Best PracticePatterns
Best PracticePatterns
Not one size fits all• Local model extensions provideagile, customized ”best practice”
Example: Validation Eclipse plug-inflags violation to customer standards
IBM FSS Nordic
34 BMP IBM Vision Tools and Experience34 07-04-23 18:46
Summary
Business Process Management provides huge potential for savings SOA naturally leads to a BPM Approach Open Standards is the base for future development Models are everywhere – and converging towards common models, e.g:
Component Business Model
Business Modeler high level models (XMI) for
Visualization Simulation Documentation, agreement
Business Measures Models + (organization, strategy, goal,...models)
Business Process Models for execution (BPEL + IBM extensions) Always a need to add model extensions to standards
IBM extensions and customer extensions
”Fill the gap” models
Validation of ”Best Practice” tools
Way to keep the BPM software agile
IBM FSS Nordic
35 BMP IBM Vision Tools and Experience35 07-04-23 18:46
Closing
Quote:”Vision without Action – is just day dreaming.Action without Vision – is just passing time. Vision with Action can change the world” (Joel Barker)
Models without execution – is interesting...but Combining modeling and execution capabilities brings us to a new
level of application development and automation
IBM FSS Nordic
36 BMP IBM Vision Tools and Experience36 07-04-23 18:46
Thank you