Business Process Management Chapter Extension 18 Business Process Management

Study Questions Q1: Why do organizations need to manage business processes? Q2: How does Business Process Modeling Notation (BPMN) document business processes? Q3: How can business processes be improved? Q4: How are processes designed using the principles of Service Oriented Architecture (SOA)? Q5: Why are XML and other SOA standards important? Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

Q1: Why Do Organizations Need to Manage Business Processes? Activities— Transform resources and information of one type into resources and information of another type. Decisions— A question that can be answered Yes or No. Roles— Sets of procedures Resources— People, or facilities, or computer programs that are assigned to roles Repository— Collection of business records Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

Steps in Processing an Order Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

Q1: Why Is Business Process Management Important to Organizations? Processes that don’t work or work well Change in technology Change in business fundamentals: - Market (new customer category), product lines, supply chain, company policy, company organization (merger/acquisition), globalization, business environment Video Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

Business Process Management (BPM) Cycle Continuous process improvement new model as-is model Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

Scope of Business Process Management Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

COBIT (Control Objectives for Information and Related Technology) Set standard practices often used in assessment stage of BPM cycle Information Systems Audit and Control Association See www.isaca.org/cobit for more information Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

How Does BPM Relate to the SDLC? BPM is concerned with all business processes SDLC only concerned within development of information systems BPM is broader in scope than SDLC BPM may be impetus to start SDLC project Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

Q2: How Does Business Process Modeling Notation (BPMN) Document Business Processes? Object Management Group (OMG) Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

Existing Ordering Process: Swim-lane Layout Flow or sequence of activities Flow of messages and data Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

Check Customer Credit Process Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

Q3: How Can Business Processes Be Improved? Brute-force approach: add more people or equipment to existing way of doing business Change structure of a process without changing resource allocations Changing structure and adding resources Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

Revised Order Process Add resources to credit checking and to change sequence of inventory and credit checking Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

Service: A repeatable task a business performs Q4: How Are Processes Designed Using Service Oriented Architecture (SOA)? Check customer credit Evaluate special terms request Accept order Reject order Service: A repeatable task a business performs Primary activities modeled as independent, encapsulated services and processes communicate only by requesting and responding to service requests SOA: Standard techniques to model activity and interaction among services An activity that conforms to SOA principles Service-provider Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

Service Interactions Governed by Standards Encapsulation—places logic for a service in one place and all other services go to it for service Constructing processes as independent and encapsulated service-providers promotes standardization, makes it easier to change processes, and makes processes more adaptable Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

Defined Service Principle Services defined by data they request and provide. A service-provider declares it will accept data of a particular format and return data in another format Service providers reject improperly formatted service requests and provide only properly formatted service responses Important because many service requestors and service providers are not human, but computer programs Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

Portion of Revised Order Process with Shipment Schedule Checking Check Inventory and Check Shipping Date activities modeled as independent, encapsulated services Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

Q5: Why Are XML and Other SOA Standards Important? Facebook applications connect to Facebook via a SOA interface Vendors connect programmatically to Amazon.com via a SOA interface Harley-Davidson mashup maps from Microsoft Bing via a SOA interface You should understand nature of these standards Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

Important SOA Standards XML is important for SOA because it enables programs to share data in a standardized way XML tags (metadata): Name and identify data items XML document: Set of XML tags and data XML schema: An XML document whose content describes the structure of other XML documents eXtensible Markup Language (XML) Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

Examples of XML Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

Why Are XML and Other SOA Standards Important? (cont’d) XML schema: XML document that describes structure of other XML documents Any program can read schema to determine structure of XML document processing Enables programs to share data in standardized way Data can be passed from one service to another without problems Important features Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

SOAP and WSDL Standards Protocol for exchanging messages encoded in XML SOAP messages can be exchanged using HTTP, HTTPS, FTP Include how metadata specifies message is to be routed, what services need to process it, how security and encryption are to be handled, etc. SOAP is independent of any device, network, vendor, or product Simple Object Access Protocol (SOAP) Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

Web Services Description Language, pronounced “wiz-dəl” WSDL WSDL: Language that services can use to describe what they do and how other computer programs can access their features Web Services Description Language, pronounced “wiz-dəl” Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

Use of XML Schema Document Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

Bottom Line XML, SOAP, and WSDL eliminate need for proprietary SOA services designs and make it easier for programs to interact with one another, whether on same machine, same network, or in cloud Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

Important SOA Standards Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

Active Review Q1: Why do organizations need to manage business processes? Q2: How does Business Process Modeling Notation (BPMN) document business processes? Q3: How can business processes be improved? Q4: How are processes designed using the principles of Service Oriented Architecture (SOA)? Q5: Why are XML and other SOA standards important? Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America. Copyright © 2012 Pearson Education, Inc.   Publishing as Prentice Hall