Petros KAVASSALIS

1

Business Process Management Systems[Συστήματα Διαχείρισης Επιχειρησιακών Διαδικασιών]

Lecture 1, 2: BPM, Business Processes and Business Process Models

Univ. of the Aegean Financial and Management Engineering Dpt

Petros KAVASSALIS<[email protected]>

<[email protected]> 2

What you will learn in this course

This course provides a set of fundamental concepts for understanding Business Process Management (BPM), business process modelling, process automation and use.

Course topics: Business Process Analysis Business Process Design by using:

o BPMNo XMLo Web Serviceso E-Forms

Best practices and techniques for modeling business processes: o Methods and exampleso “Hands-on" experience: create business process models by using Intalio|BPMS (open source)

Download Intalio|BPMS Intalio Designer: Getting Started Tutorial (in Greek)

Strategies for orchestrating enterprise IT systems and human activity through Business Process Management Systems

Familiarization with practical use of BPM in: e-business e-government 2.0

http://www.intalio.com/downloads

http://www.intalio.com/downloads

http://www.intalio.com/wikis/-/wiki/BPMSHelp/DesignerGettingStartedGuide

http://www.intalio.com/wikis/-/wiki/BPMSHelp/DesignerGettingStartedGuide

http://www.fme.aegean.gr/sites/default/files/cn/intaliodesigner_usermanual.pdf


Who am I?

PhD in Economics and Management (Univ. Paris Dauphine & Ecole polytechnique)

Research experience Ecole polytechnique, Paris MIT Center of Technology Policy and Industrial Development, MIT

CTPID (MIT Internet Telecommunications Convergence Consortium)

Current positions Univ. of the Aegean (FME): Assoc. Professor RACTI: Director of ATLANTIS Group


Communication tools

e-mail: [email protected] Course web site: see FME web site


Students evaluation

Class Participation (20%)

+ Assignments (20%)

+ Final Exam (60%)

Starting Point: What is a value chain?

Petros KAVASSALIS <[email protected]> 6

Firms as a “budge” of business functions: M. Porter’s Value Chain


Firms as a “budge” of business functions: Value System


What is a process? [Anupindi et al, Managing Business Process Flows, Prentice Hall]

Inputs OutputsGoods

Services

Committed

Informationstructure

Network ofActivities and Buffers

Flow units(customers, data, material, cash, etc.)

Resources

ProcessManagement

Examples

Process / Flow unit / Input-Output Transformation Order fulfillment / Orders / Receive order – Deliver product Production / Products / Receive components – Develop end product Outbound Logistics / Products / Store product – Move to the customer Supply Cycle / Supplies / Issue a purchase order – Receive the supplies Customer Service / Customers / Arrival of the customer in a store (Receive

request) – Customer’s departure from a store (Satisfy request) New Product Development / Projects / Recognition of the need – Launch of

the product Cash Cycle / Cash / Cover costs – Collect revenues


Process Hierarchy[Harmon, Managing Business Processes, Business Process Trends]



What is process management? (1)

Core concepts: Understand the process architecture of an organization (discover and

model processes – process mapping) Assess process performance (extract, manipulate and calculate

process information) Simulate processes (move from “as-is” to new process, and process

orchestration, designs – “to-be” processes) Improve in reality process architecture and performance

What is process management (2)

Business processes are the key instrument to decompose firms’ value chains into networks of activities (and buffers) “Committed” resources are allocated to processes Processes assure the proper alignment of the firm’s strategic agenda

with the three basic execution principles: Operational Effectiveness, Customer Targeting, and Innovation

Business Process Management (BPM) makes it possible to align companies towards customer requirements and to organize an increasingly large number of activities effectively and efficiently (by measuring and evaluating firm’s performance and by constantly re-designing firm’s process architecture according to its strategic goals)


A business process is (in formal terms)

A set of activities Performed in coordination to realize a business goal In an organizational and technical environment

Each process is enacted by a single business or it may interact with processes performed by other enterprises.


A business process example


Source: M. Weske, Business Process Management: Concepts, Languages, Architectures, Springer, 2007

Business Process Management (BPM) includes

Concepts Methods Techniques

To support the Design Administration Configuration Enactment Analysis

… of business processes


A Business Process Management System (BPMS) is

Software that Is driven by explicit process representations

To coordinate The enactment of business processes

BPMS contain graphical notations to express orderings between activities of a business process (BPMN)


A business process view of the organization

Implies an horizontal view of organization Looks at processes as sets of independent activities

designed and structured to produce a specific output for a customer or a market

Uses the term activity To refer to a small scale process that consists of one or few closely

related steps A process defines

The results to be achieved (start-end) The context of the activities The relationships between activities The interaction with other process and resources


Business Process Management and Information Systems



Enterprise Application Integration through Workflow: example



Enterprise Application Integration through Workflow: Workflow Management System (apps)



Enterprise Application Integration through Workflow: Workflow Management System (apps + humans)



Enterprise Application Integration through Workflow: Workflow Management System (humans + apps)


A business process model

Consists of A set of activity models and execution constraints between them

Is used To configure the Business Process Management System accordingly

Represents Activities and Relationships

Graphical representations of business processes focus on the process structure and the interactions of participating parties (rather than on technical / software aspects) Examples follow


Example: A reseller’s process


Source: M. Weske, 2007

Example: A buyer’s process



Example: Interacting business processes (case 1)



Example: Interacting business processes (case 2)



Interacting business processes (case 2)



Business modeling is a process by itself!

Stage 1: Analysis Stage 2: Design Stage 3: Implementation



Business Process Management Notation (BPMN)

Graphical notations are being used to expressing orderings between activities of a business process

There are several graphical notation languages for business process modeling, with the more simplified variant being the Business Process Modeling Notation (BPMN)


BPMN Diagrams from scratch

Events (i.e. the occurrence of states in the real world0 are represented by circles

Activities are represented by rounded rectangles Execution ordering of activities is expressed by directed

arrows Branching and joining of nodes (i.e. the split behavior of the

flow of control between activities) is represented by diamonds (called “gateways”) that can be marked by A “+”: Parallel Fork ? Join (AND) A “x”: Exclusive Decision / Merge (XOR)


Events


Activities


Flows


Gateways


Pools, Lanes (sub-partitions within a Pool) and Executable Pools

Models of human-enabled process are not “executables”


Special: Sequence flow and Gateways (1)

Sequence flow: control flow. It is represented by Solid Arrows between Activities, Events and Gateways

Normal flow: represents Expected and Desired behavior of the process

Starts and Ends with An Event (start and end even)

Continues Via a a set of flow objects (activities, gateways etc.)

Gateways act As either a join node Or a split node



Joint nodes: 2 incoming arcs (at least): 1 outgoing edge

Split nodes One incoming arc 2 outgoing edges (at least)

Remind: Each Gateway acts as a join node or as a split node



“Exclusive or” splits “Data-based exclusive or split” (x)

o There is gate with an associated condition (gate condition / data based)o Once a gate condition evaluated the true, the corresponding branch is taken, and

the other conditions are disregarded

“Inclusive or” splits

o There is gate with an associated condition (gate condition / data based) o An arbitrary number of outgoing branches is selected (not only 1)



A complex gateway allows the definition of a combined split and join behavior “And split/join”

o The process starts with getting an ordero Then, a “parallel” gateway triggers the execution of number n activities (2 and

more)o These activities are completed simultaneouslyo When they are completed, the “and join” synchronized the parallel flows, and the

process terminates

application with: Intalio|BPMS[http://community.intalio.com/ ]



http://community.intalio.com/

Petros KAVASSALIS

Documents

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