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Importance of executable processes and BPMN
1.
Importance of executable processes
and BPMN Alexander Samarin for LAMS EPFL May 2014, Lausanne
2.
• A digital
enterprise architect – from a programmer to a systems architect – have created systems which work without me • WHY I do what I do – I believe that many improvements (“sooner, better, cheaper, more flexible”) in operational excellence and strategy execution are achievable with reasonable efforts and commodity tools • HOW I do what I do – architecting synergy between strategies, technologies, tools and best practices for client’s unique case and transfer the knowledge • WHAT is the result of my work for clients – less routine work, less stress, higher performance, higher security, less risk, higher predictability of results, better operations, and liberating the business potentials for innovations Importance of executable processes and BPMN v3 2 About me © A. Samarin 2014
3.
• Context • Why
BPM is critically important for EA? • Enterprise as a system of processes • The power of executable processes © A. Samarin 2014 Importance of executable processes and BPMN v3 3 Agenda
4.
– It is
not about “just the website”, “online services” or “transactions” – Everything becomes digital: products, information, content, documents, records, processes, m oney, rights, communications – If digital then intangible thus news tools and new execution speed “immediately” – Digital things are at new scale – petabytes and exabytes – With this new speed and scale, there is no time for human intervention and errors in routine operations and at interfaces © A. Samarin 2014 Importance of executable processes and BPMN v3 4 Digital age
5.
• Experience shows
that business wants separate requests for change to be implemented quickly in existing IT solutions and systems • These changes are typically small (from the point of view of the business) and unpredictable (from the point of view of the IT) • To carry out these changes easily and in a managed way, business systems must be properly architected / designed / engineered © A. Samarin 2014 Importance of executable processes and BPMN v3 5 Business reality
6.
• Different estimations
of the development/maintenance life-cycle cost ratio © A. Samarin 2014 Importance of executable processes and BPMN v3 6 Solutions need to be adaptive 2 – Estimated average in the IT industry maintenance development 80 % 20 % 2 40 % 60 % 1 95 % 5 % 3 3 – A real scenario (governmental client) 1 – Estimated by an IT staff member
7.
• Co-existence of
many artefacts – vision, plans, processes, capabilities, services, etc. • Dynamic and interrelated • Not all relationships between artefacts are explicit • Not all relationships between artefacts are interpreted consistently by different staff members and systems • Small changes can be very destructive © A. Samarin 2014 Importance of executable processes and BPMN v3 7 Complexity
8.
• There are
two different sources of complexity: – natural as we use more and more complex products produced by more and more interlinked companies and – undesired as we do things with inadequate tools, without using the best available knowledge, via communicating in not the “same” language, by reinventing the wheel, following contradictory recommendations, drawing a process and executing something else, etc. • The purpose of enterprise architecture (EA) – guide solution architecture to follow the natural complexity to avoid adding undesired complexity – promote the use explicit and executable techniques to reduce the natural complexity – “liberate” resources to better handle the natural complexity © A. Samarin 2014 Importance of executable processes and BPMN v3 8 Managing complexity
9.
• Context • Why
BPM is critically important for EA? • Enterprise as a system of processes • The power of executable processes © A. Samarin 2014 Importance of executable processes and BPMN v3 9 Agenda
10.
• EA coordinates
people, processes and technologies in 4D 1. Business domain span (organisational unit, segment, enterprise, supply chain, government, country, region, continent, …) 2. Architecture span (business, data, application, technology, security, information, …) 3. Time span (solution life-cycle, technology life-cycle, tool life- cycle, project life-cycle, enterprise life-cycle, …) 4. Sector span (common patterns in unique processes from different sectors) © A. Samarin 2014 Importance of executable processes and BPMN v3 10 EA is a systemic coordinator
11.
© A. Samarin
2014 Importance of executable processes and BPMN v3 11 EA views: business domains vs time span
12.
• There are
no: – common dictionary / terminology / reference model – common recognition – common certification – common professional organisation • Considered as too bureaucratic, “ivory tower”, expensive and useless paperwork • A lot of fight among (often self-proclaimed) “enterprise architects” • You may become an “enterprise architect” in 4 days • So far, we, enterprise architects, are alchemists © A. Samarin 2014 Importance of executable processes and BPMN v3 12 Enterprise Architecture is not a “normal” profession yet
13.
© A. Samarin
2014 Importance of executable processes and BPMN v3 13 BPM is a tool for improving enterprise business performance The theory BPM as a discipline (use processes to manage an enterprise) The tools BPM as software: BPM suite (BPMS) The practice Any process-centric enterprise has some BPM (as discipline and tool), but how can we industrialise this BPM? A natural evolution of BPR, Lean, ISO 9001, 6 Sigma The aim is to have a single description of business processes: - model in design - input for project planning and execution - executable program for coordination of work - documentation for all staff members - basis for management decisions An enterprise portfolio of the business processes as well as the practices and tools for governing the design, execution and evolution of this portfolio A multitude of tools “handle” processes
14.
© A. Samarin
2014 Importance of executable processes and BPMN v3 14 Be ready for common (mis-)understanding
15.
• Enterprise functioning
can be considered as business activity flows spanning the applications, employees, customers and partners within and beyond the boundaries of the enterprise • Business activity is a unit of work • A business process is an explicitly-defined coordination for guiding the purposeful enactment of business activities • Process-based disciplines (TQM/QMS, BPR, TPS, 6Sigma, BPM, etc.) exploit the concept of business processes for the better management of the enterprise functioning in support of the enterprise goals © A. Samarin 2014 Importance of executable processes and BPMN v3 15 BPM definitions (1)
16.
• Business Process
Management (BPM) is a process- based discipline involving any combination of 1. modeling, 2. automation/implementation, 3. execution, 4. control, 5. measurement and 6. optimization • of business processes © A. Samarin 2014 Importance of executable processes and BPMN v3 16 BPM definitions (2)
17.
• An enterprise
is a complex, dynamic and adaptive system; one can improve it by: – measuring – observing – deciding – implementing Importance of executable processes and BPMN v3 17 BPM reference model: Improvement loop 1 2 3 4 © A. Samarin 2014
18.
Importance of executable
processes and BPMN v3 18 BPM reference model: Process-based disciplines © A. Samarin 2014
19.
Importance of executable
processes and BPMN v3 19 BPM reference model: Process-oriented view of an enterprise (before BPM) © A. Samarin 2014
20.
Importance of executable
processes and BPMN v3 20 BPM reference model: Process-oriented view of an enterprise (with BPM) © A. Samarin 2014
21.
© A. Samarin
2014 Importance of executable processes and BPMN v3 21 BPM reference model: BPM suite components
22.
© A. Samarin
2014 Importance of executable processes and BPMN v3 22 BPM reference model: BPM suite components (extended list)
23.
• Let us
see at the TOGAF layers: (values are approximate and calculated on number of non-trivial issues) – 60 % of business architecture – 50 % of data/information architecture – 70 % of application architecture – 20 % of technology architecture © A. Samarin 2014 Importance of executable processes and BPMN v3 23 Does BPM help with 50% of EA?
24.
• Events • Roles •
Data structures • Documents • Rules • Audit trails • KPIs • Processes • Services © A. Samarin 2014 Importance of executable processes and BPMN v3 24 BPM artifacts KPIs Processes Services Events Roles Data structures Documents Rules Human “workflow” Audit trails
25.
• Who (roles)
is doing What (business objects), When (coordination of activities), Why (business rules), How (business activities) and with Which Results (performance indicators) • Make these relationships explicit and executable What you model is what you execute “The map is the app” © A. Samarin 2014 Importance of executable processes and BPMN v3 25 Business processes are complex relationships between artefacts
26.
• BPM, by
revealing the artefacts and the relationships between them, provides the necessary context (e.g. granularity) for the definition of services • SOA provides recommendations for the implementation, execution and governance of services • BPM provides a mechanism for the explicit and executable assembling of bigger services from smaller ones © A. Samarin 2014 Importance of executable processes and BPMN v3 26 Synergy between BPM and SOA (1) – structuring relationships
27.
• The relationship
between services and processes is “recursive” – All processes are services – Some operations of a service can be implemented as a process – A process includes services in its implementation © A. Samarin 2014 Importance of executable processes and BPMN v3 27 Synergy between BPM and SOA (2) – structuring relationships
28.
• Each enterprise
is a complex, dynamic, unique and “recursive” relationship between services and processes – Services can be replaced by processes – Processes can be replaced by services – Some of them are moved to clouds © A. Samarin 2014 Importance of executable processes and BPMN v3 28 Synergy between BPM and SOA (3) – structuring relationships service process
29.
© A. Samarin
2014 Importance of executable processes and BPMN v3 29 Synergy between BPM and SOA (4) – from legacy application to processes and services Monolithic application GUI screen 2 GUI screen 1 GUI screen 3 Business logic Business object “Partner” persistence Business object “Competition” persistence Business object “Event” persistence BPM/SOA modular solution Business logic service Interactive service 1 Interactive service 2 Interactive service 3 Coordination service Business object “Partner” persistence service Business object “Competition” persistence service Business object “Event” persistence service
30.
© A. Samarin
2014 Importance of executable processes and BPMN v3 30 Synergy between BPM and SOA (5) – no applications – just coordination of services
31.
• Context • Why
BPM is critically important for EA? • Enterprise as a system of processes • The power of executable processes © A. Samarin 2014 Importance of executable processes and BPMN v3 31 Agenda
32.
• In the
context of enterprise functioning, business activities must be coordinated • Various coordination techniques – template-based – state-based – event-based – role-based – rule-based or decision-based or intelligence-based – managerial (tacit knowledge) – community-based – instance-based or inter-process – resource-based or life-cycle-based – goal-based © A. Samarin 2014 Importance of executable processes and BPMN v3 32 Enterprise as a system of processes (1)
33.
• Coordination maybe
strong (e.g. as in the army) or weak (e.g. as in an amateurs football team) • Coordination maybe implicit or explicit • Coordination maybe declarative (laws) and imperative (orders) • Based on coordination, let us think about “levels of cohesion” between activities and thus find out coordination constructs (in addition to activities) 1. process patterns (coordination within processes) 2. processes 3. cluster of processes (coordination between processes) 4. system of processes (coordination between clusters of processes) © A. Samarin 2014 Importance of executable processes and BPMN v3 33 Enterprise as a system of processes (2)
34.
• Business case:
typical “claim processing” process – claim, repair, control, invoicing, and assurance to pay © A. Samarin 2014 Importance of executable processes and BPMN v3 34 Process fragments – patterns SI PAR SI IPS Click for animation
35.
• Business concern:
Interactions between two independent parties – public administration and partner (citizen, local business, etc.) • Logic – partner submits some documents (including forms) to administration – administration checks those documents – administration may request partner to provide more documents or to carry out some corrections – administration checks those documents again – and so on © A. Samarin 2014 Importance of executable processes and BPMN v3 35 Process pattern: Submission Interface (SI)
36.
© A. Samarin
2014 Importance of executable processes and BPMN v3 36 SI animated diagram Click for animation
37.
• Simple event-based
(which looks like a state machine) © A. Samarin 2014 Importance of executable processes and BPMN v3 37 Coordination between processes (1)
38.
© A. Samarin
2014 Importance of executable processes and BPMN v3 38 Coordination between processes (2) 1. state-machine 2. synchronous invocation 3. asynchronous invocation 4. fire and forget 5. parallel processes 6. co-processes (pattern SI)
39.
• CLOPs are
usually functional processes which are implemented a particular business function, e.g. Field Services • And a “halo” of extra processes 1. monitoring 2. operating 3. governance © A. Samarin 2014 Importance of executable processes and BPMN v3 39 CLuster Of Processes (CLOP)
40.
© A. Samarin
2014 Importance of executable processes and BPMN v3 40 Enabler group, supporting group and customer group of clusters
41.
© A. Samarin
2014 Importance of executable processes and BPMN v3 41 Is a system of processes like a PCB?
42.
© A. Samarin
2014 Importance of executable processes and BPMN v3 42 Implicit coordination between CLOPs (1)
43.
© A. Samarin
2014 Importance of executable processes and BPMN v3 43 Implicit coordination between CLOPs (2)
44.
© A. Samarin
2014 Importance of executable processes and BPMN v3 44 Implicit coordination between CLOPs (3)
45.
© A. Samarin
2014 Importance of executable processes and BPMN v3 45 Functional view at a system of processes (1)
46.
© A. Samarin
2014 Importance of executable processes and BPMN v3 46 Functional view at a system of processes (2)
47.
© A. Samarin
2014 Importance of executable processes and BPMN v3 47 Functional view at a system of processes (3)
48.
• Context • Why
BPM is critically important for EA? • Enterprise as a system of processes • The power of executable processes © A. Samarin 2014 Importance of executable processes and BPMN v3 48 Agenda
49.
• Situation – a
company (3rd world-wide biggest in its sector) has about 800 semi-independent business units (BU); 130+ ERPs; 5 000 apps – the strategy of the company has two contradictory objectives 1) “Make the diversity efficient” and 2) “Standardize wherever it bring value” – several company-wide IT initiatives to bring standard solutions to all BUs have failed – as all BUs have different level of computerization, a standard solution from the IT department is not good for everyone © A. Samarin 2014 Importance of executable processes and BPMN v3 49 Anisotropic enterprise and shared services (1) BU1 BU2 BU3 Standard solution Level of computerization
50.
© A. Samarin
2014 Importance of executable processes and BPMN v3 50 Anisotropic enterprise and shared services (2) BU1 BU2 BU3 Level of computerization A CBB BAC 1) Standard solution is based on processes and shared services 2) Each BU is moving to platform-based architecture
51.
• From disparate
IT applications to a business execution platform which will “liberate” people for business innovations • Agile (with the pace of business) provisioning of solutions • Step-by-step technical transformation in two interrelated and intermixed streams: 1. Disassemble into services 2. Assemble via processes • Business evolution to drive technical transformation • Combine various tactics: assemble, rent, buy, build, outsource, centralised vs. kept locally, standardised, re- engineered or automated © A. Samarin 2014 Importance of executable processes and BPMN v3 51 Legacy application architecture modernisation
52.
© A. Samarin
2014 Importance of executable processes and BPMN v3 52 Disassemble a legacy ERP into services Legacy ERP functionality DM service B DM service A DM service C Industrial ECMIndustrial ERP HR Fin Procurement Business logic suite (BRM) Coordination suite (BPM) Specific service 1 Specific service 2 Specific service 3 In-house development 10-15 % 10-15 %20-40 %10-20 % Industrial generic suites Industrial specific tools Event management … 20-30 % Note: Specified values are just estimations
53.
• Make a
platform with common capabilities • Delivery unique solutions via processes and services • Examples: – E-government – Healthcare © A. Samarin 2014 Importance of executable processes and BPMN v3 53 Other examples for processes + services A2 A1 A3 Platform S2 …S 1 S3 Functionality Delivery by solutionsDelivery by applications Scope
54.
• First executable
BPMN processes • 10+ years on the BPM market • Version 7 is just announced • Intalio Create is a companion to Intalio BPM • Intalio want to merge predefined processes and ad-hoc processes © A. Samarin 2014 Importance of executable processes and BPMN v3 54 Executable processes from Intalio
55.
© A. Samarin
2014 Importance of executable processes and BPMN v3 55 Variant 1 – classic (one template is used for many instances)
56.
© A. Samarin
2014 Importance of executable processes and BPMN v3 56 Variant 2 – tailoring (a template is adjusted for each instance)
57.
© A. Samarin
2014 Importance of executable processes and BPMN v3 57 Variant 3 – reactive (no initial template and next activity is selected based on the current situation)
58.
© A. Samarin
2014 Importance of executable processes and BPMN v3 58 Variant 4 – proactive planning (similar to variant 3, but a few next activities [fragment] are executed together)
59.
© A. Samarin
2014 Importance of executable processes and BPMN v3 59 Variant 5 – scenario-based (similar to variant 4, but a few scenarios are considered) Process fragments are used; those may be patterns
60.
• Customer value
delivery – Better fit to the customer experience because it is be considered as a process (http://improving-bpm-systems.blogspot.ch/2013/06/practical- process-patterns-cxaap.html ). – Higher business agility (speed-to-market) because many of improvements are anticipated by design (seehttp://improving-bpm- systems.blogspot.com/2014/05/ideas-for-bpmshift-delenda-est- vendor_8.html ). – Quicker adoption of best business practices (i.e. patterns – see http://improving-bpm- systems.blogspot.ch/search/label/practical%20process%20patterns ) and in-house innovations. – Higher quality of service because an interaction with a customer may happen at any point in a process (not just from the front-office) and all exchanges between an employee and a customer are traceable (seehttp://improving-bpm-systems.blogspot.ch/2014/04/bpmshift- delenda-est-vendor-centric-bpm.html ). © A. Samarin 2014 Importance of executable processes and BPMN v3 60 How can a company benefit from a BPM initiative? (1)
61.
• Operational excellence –
Collection of objective performance measurements. – Total transparency and traceability. – Real-time view on operations for various roles. – Proactive risk management and mitigation as it is based on processes (see http://improving-bpm-systems.blogspot.ch/search/label/ERM ). – Predictability of operations including automatic detection of performance bottlenecks ( see http://improving-bpm-systems.blogspot.ch/2010/03/linkedin- how-do-we-measure-work-flow.html ). – Better information security (see http://improving-bpm- systems.blogspot.ch/2014/04/ideas-for-bpmshift-delenda-est-vendor.html ). – Objective and predictive balancing of workload. – Compliance by design. – Ability to quickly improve and repair processes (see http://improving-bpm- systems.blogspot.ch/2013/04/bpm-for-developers-improve-agility-of.html ). © A. Samarin 2014 Importance of executable processes and BPMN v3 61 How can a company benefit from a BPM initiative? (2)
62.
• Link between
the strategy and its execution – Provisioning a powerful company-wide governance capability because a company is a system of processes (see http://improving-bpm- systems.blogspot.no/2014/03/enterprise-as-system-of-processes.html ). – E2E incremental improvements can be carried out in accordance with business pace and business priorities (http://improving-bpm- systems.blogspot.no/2014/05/ideas-for-bpmshift-delenda-est- vendor_8.html ). – Faster path to a digital company (see http://improving-bpm- systems.blogspot.ch/2013/02/towards-paperless-or-digital-or-less.html ). – Better impact analysis of changes because of explicit linking between events, rules, roles, documents, KPIs, etc. – Provisioning a solid foundation for enterprise architecture because BPM defines a lot for enterprise architecture. (see http://improving-bpm- systems.blogspot.ch/2014/05/ideas-for-bpmshift-delenda-est- vendor_11.html ). © A. Samarin 2014 Importance of executable processes and BPMN v3 62 How can a company benefit from a BPM initiative? (3)
63.
• Boosting employee
motivation – By eliminating manual, tedious work, people focus on higher value (core business value-added intellectual) activities. – Finally, BPM allows staff to focus on more added-value work. – Better visibility on what people and others are doing in the company. – More accurate job descriptions and fact‐based performance evaluation metrics. – Improving working relationships by common language between various roles (primary between business and IT). – Organisational structure is derived from processes (with fine-turning around talents). – Smoother change management because of transparent design, transparent decisions, transparent execution which make people more comfortable with changes. © A. Samarin 2014 Importance of executable processes and BPMN v3 63 How can a company benefit from a BPM initiative? (4)
64.
• QUESTIONS? • Personal
website: http://www.samarin.biz • Blog http://improving-bpm-systems.blogspot.com • LinkedIn: http://www.linkedin.com/in/alexandersamarin • E-mail: alexandre.samarine@gmail.com • Twitter: @samarin • Mobile: +41 76 573 40 61 • Book: www.samarin.biz/book Importance of executable processes and BPMN v3 64 Thanks © A. Samarin 2014
Notas del editor
iCMG webinar
http://improving-bpm-systems.blogspot.ch/2014/03/enterprise-patterns-ear.html
http://improving-bpm-systems.blogspot.ch/2014/01/definition-of-bpm-and-related-terms.html
http://improving-bpm-systems.blogspot.ch/2014/03/bpm-related-tlas-comparison.html
http://improving-bpm-systems.blogspot.ch/2010/02/bpm-reference-model-fragment-01.html
http://improving-bpm-systems.blogspot.ch/2014/03/enterprise-as-system-of-processes.htmlhttp://improving-bpm-systems.blogspot.ch/2014/03/coordination-techniques-in-bpm.html
http://improving-bpm-systems.blogspot.ch/2014/03/enterprise-as-system-of-processes.html
http://improving-bpm-systems.blogspot.ch/2011/06/practical-process-patterns-dip.html
http://www.slideshare.net/samarin/process-practical-patterns-si
http://www.slideshare.net/samarin/process-practical-patterns-si
http://improving-bpm-systems.blogspot.com/2010/12/illustrations-for-bpm-acm-case.html
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