Department of Computer Science 1 CSS 496 Business Process Re-engineering for BS(CS) Chapter 1: Introduction Khurram Shahzad Based on Petia, Marlon and Weske Lectures

Department of Computer Science 2 Agenda Introduction Course Material Course Evaluation Course Contents

Department of Computer Science 3 Muhammad Khurram Shahzad M Khurram Shahzad  Assistant Professor  M.Sc. from PUCIT, University of the Punjab, PK  MS from KTH - Royal Institute of Technology, Sweden 2006  PhD from Information Systems Lab, KTH-Royal Intitute of Technology & Stockholm University, Sweden, (Jan’08 - Inshallah Nov’12)Information Systems LabKTH-Royal Intitute of TechnologyStockholm University   At least 26 Publications

Department of Computer Science 4 Group Webpage

Department of Computer Science 5 Research Area I Research in IS focuses on  Enterprise Modeling Data Warehousing Academic Social Networks  Business Process Management Process Model Repositories Process Improvement using data warehousing

Department of Computer Science 6 Research Area II

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9 Research Projects  Digital Repository Service for Academic Performance Assessment and Social Networking in Developing Countries  Centre for Academic Statistics of Science and Technology  Productivity and Social Network Analysis of the BPM Community

Department of Computer Science 10 Stockholm University, Sweden Technical University Eindhoven, The Netherlands University of Sri-Jayewardennepura, Sri Lanka

Department of Computer Science 11 Course Material Course Book  Mathias Weske. Business Process Management: Concepts, Languages, Architectures, Springer, The Netherlands Reference Books  M Dumas, W van der Aalst, Arther Hofstede, Process-aware Information Systems: Bridging People and Software through Process Technology, John Wiley & Sons Inc., NY.

Department of Computer Science 12 Assignments Implementation/Research on important concepts. To be submitted in groups of 2 students. Include 1. Modeling and Benchmarking of processes 2. Implementation of processes in open source modeling software 3. Literature Review on … BPM social network May add a couple more

Department of Computer Science 13 Lab Work Lab Exercises. To be submitted individually

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Department of Computer Science 20 Course Introduction

Department of Computer Science 21 Business Process Management (BPM) BPM is based on the observation that each product that a company provides to the market is the outcome of a number of activities performed Business processes are the key instrument to organizing these activities and to improving the understanding of their interrelationships

Department of Computer Science 22 Business Process Management (BPM)  These activities jointly realize a business goal  Each business process is enacted by a single organization, but it may interact with business processes performed by other organizations A business process consists of a set of activities that are performed in coordination in the organizational and technical environment

Department of Computer Science 23 Business Process Management (BPM) Examples  Order-to-Cash  Fault-to-Resolution (Issue-to-Resolution)  Claim-to-Settlement  Application-to-Approval Business processes describe the organisation of work into work tasks, the distribution of work task into different resources and the provision of necessary information for the performance of the individual tasks.

Department of Computer Science 24 Process and the organization

Department of Computer Science 25 Business Process Management (BPM) The basis of BPM is the explicit representation of business processes with their activities and the execution constraints between them Once business processes can be defined, they can be subject to analysis, improvement and enactment BPM includes concepts, methods and techniques to support the design, administration, configuration, enactment, and analysis of business processes

Department of Computer Science 26 Business Process Management (BPM) Business process management systems (BPMS) are information systems aimed to support the business processes in an organization A business process management system is a generic software system that is driven by explicit process representation to coordinate the enactment of business processes

Department of Computer Science 27 Business Process Management (BPM) A business process model consists of a set of activity models and execution constraints between them

Department of Computer Science 28 Business Process Management (BPM) A business process instance represents a concrete case in the operational business of a company, consisting of activity instances. Each business process model acts as a blueprint for a set of business process instances Each activity model acts as a blue print for a set of activity instances

Department of Computer Science 29 The world without computers People performed the entire process The process was visible – one could observe what people did and ask questions There was no need to model the processes

Department of Computer Science 30 Assembly line

Department of Computer Science 31 Traditional Process (as-is)

Department of Computer Science 32 Traditional Process (as-is)

Department of Computer Science 33 Reengineering process (to-be)

Department of Computer Science 34 The first computers

Department of Computer Science 35 The computer gets several and data moves between them

Department of Computer Science 36 Optimization continues

Department of Computer Science 37 Consequences The process is hidden in the systems and no longer visible for the people It is no more simple to “see” the whole process by simply observing how people work The IT-departments have unconsciously got the responsibility for big part of the business processes, which was of course never the intention

Department of Computer Science 38 My washing machine won’t work

Department of Computer Science 39 Processes and Outcomes Every process leads to one or several outcomes, positive or negative  Fault-to-resolution process  Fault repaired without technician intervention  Fault repaired with minor technician intervention  Fault repaired and fully covered by warranty  Fault repaired and partly covered by warranty  Fault repaired but not covered by warranty  Fault not repaired (customer withdrew request)

Department of Computer Science 40 The Ford Case Study (Hammer 1990) Ford needed to review its procurement process to:  Do it cheaper (cut costs)  Do it faster (reduce turnaround times)  Do it better (reduce error rates) Accounts payable in North America alone employed > 500 people and turnaround times for processing POs and invoices was in the order of weeks

Department of Computer Science 41 The Ford Case Study Automation would bring some improvement (20% improvement) But Ford decided not to do it… Why?  Because at the time, the technology needed to automate the process was not yet available  Because nobody at Ford knew how to develop the technology needed to automate the process.  Because there were not enough computers and computer-literate employees at Ford.  None of the above

Department of Computer Science 42 Business Process Lifecycle (course diagram)

Department of Computer Science 43 Design and Analysis Surveys on process and their organizational and technical environment are conducted Based on these surveys, processes are identified, reviewed, validated, and represented by business process models Explicit process models expressed in graphical notation facilitate communication about these processes, so that stakeholders can  communicate efficiently  refine and improve them

Department of Computer Science 44 Design and Analysis Three good reasons for making models Gain Insights  For a better understanding of a system Analysis  Validation and verification Specification  A blueprint of construction

Department of Computer Science 45 Design and Analysis Three good reasons for making models Gain Insights  For a better understanding of a system Analysis  Validation and verification Specification  A blueprint of construction

Department of Computer Science 46 Design and Analysis We will investigate languages to express business process models Modeling techniques as well as validation, simulation, and verification techniques are used during this phase Once initial design is developed, it needs to be validated (using workshop) Simulation techniques can be used to support validation because certain undesired execution sequences might be simulated that show deficits in the process models

Department of Computer Science 47 Design and Analysis Process modeling has an evolutionary character in the sense that the process model is analyzed and improved so that it actually represents the desired business process and that it does not contain any undesired properties like deadlock We will investigate the verification of process models with respect to correctness properties

Department of Computer Science 48 Configuration Once process model is designed and verified, the process needs to be implemented There are different ways for it:  As a set of policies and procedures that enterprise has to comply with. Realization without BPMS  System is configured according to organizational environment It includes interaction of employees with system And integration of existing software systems with BPMS

Department of Computer Science 49 Enactment Once configuration is completed, process instances can be enacted Enactment encompasses the actual runtime of the business process BPMS actively controls the execution of instances as defined in process models  i.e. activities are performed according to the execution constraints specified in process model Monitoring component visualizes the status of process instances

Department of Computer Science 50 Enactment Information is valuable, for instance to respond to a customer request that inquires about the current status of his case During enactment, valuable execution data is gathered, typically in some form of log file Log files consists of ordered sets of log entries, indicating events that have occurred during processes

Department of Computer Science 51 Evaluation Uses the information available to evaluate and improve process models and their implementations Execution logs evaluation  Business activity monitoring For instance, it can identify that a certain activity takes too long due to shortage of resources required  Process Mining If applied on traditional IS, process models can be generated

Department of Computer Science 52 Administration and Stakeholders Numerous artifacts at different levels of abstraction that needs to be organized and managed A well structure repository with powerful query mechanisms is essential Classification of roles of Stakeholders  Chief Process Officer Responsible for standardizing and harmonizing processing Acknowledges important of BPM to top level managenment

Department of Computer Science 53 Administration and Stakeholders Business Engineer; domain experts, non technical Process Designer; modeling processes by communicating with domain experts Process Participant; Knowledge Worker Process Responsible System Architect Developers

Department of Computer Science 54 Business Process Lifecycle

Department of Computer Science 55 Terminology around

Department of Computer Science 56 Classification of Business Processes Organizational vs Operational Intra-organizational Processes vs Process Choreographies Degree of Automation Degree of Repetition

Department of Computer Science 57 Classification of Business Processes Organizational vs Operational  Ranges from high-level strategy to implemented processes  Business Strategy describes long- term concepts to develop a sustainable competitive advantage e.g. cost leadership for products  Strategy is broken down into operational goals  e.g. Reducing the cost of material

Department of Computer Science 58 Classification of Business Processes Organizational Processes  High level  Specified in textual form by Inputs Outputs Expected results Dependencies on other processes  e.g. process to manage incoming raw materials provided by a set of suppliers

Department of Computer Science 59 Classification of Business Processes Operational Processes  There are multiple organizational processes that contribute to organizational process  In operational processes activities and their relationships are specified  Operational process are specified by process models

Department of Computer Science 60 Classification of Business Processes Operational Processes are basis for developing implemented processes Implemented processes contain information on the  execution of process activities  technical and organizational environment in which they will be executed

Department of Computer Science 61 Classification of Business Processes Organizational vs Operational Intra-organizational Processes vs Process Choreographies Degree of Automation Degree of Repetition

Department of Computer Science 62 Classification of Business Processes Intra-organizational processes, no interaction with processes performed by other parties  Primary focus is to streamline internal processes (eliminate activities that do not bring value)  Allocate activities to persons who are skilled and competent Most business processes interact with processes in other organizations forming process choreographies  Interaction protected by legally binding contracts

Department of Computer Science 63 Classification of Business Processes Organizational vs Operational Intra-organizational Processes vs Process Choreographies Degree of Automation Degree of Repetition

Department of Computer Science 64 Classification of Business Processes Degree of automation  Fully automated, no human is involved e.g. airline ticket using web interfaces  Many processes require manual activities, but also include automated activities e.g. insurance claim

Department of Computer Science 65 Classification of Business Processes Degree of Repetition  Highly repetitive, include business processes without human involvement e.g. online ticketing  Process that occur few times e.g. large engineering efforts like designing a vessel