CSS 496 Business Process Re-engineering for BS(CS)

1. CSS 496 Business Process Re-engineering for BS(CS) Chapter 1: Introduction Khurram Shahzad mks@ciitlahore.edu.pk Based on Petia, Marlon and Weske Lectures

2. Agenda • Introduction • Course Material • Course Evaluation • Course Contents

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) • http://syslab.ning.com/profile/mks • At least 26 Publications

4. Group Webpage

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

6. Research Area II

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

10. Stockholm University, Sweden Technical University Eindhoven, The Netherlands University of Sri-Jayewardennepura, Sri Lanka

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.

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

13. Lab Work • Lab Exercises. To be submitted individually http://www.erp4students.co.uk/

20. Course Introduction

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

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

23. Business Process Management (BPM) 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. • Examples • Order-to-Cash • Fault-to-Resolution (Issue-to-Resolution) • Claim-to-Settlement • Application-to-Approval

24. Process and the organization

25. Business Process Management (BPM) BPM includes concepts, methods and techniques to support the design, administration, configuration, enactment, and analysis of business processes • 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

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

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

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

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

30. Assembly line

31. Traditional Process (as-is)

32. Traditional Process (as-is)

33. Reengineering process (to-be)

34. The first computers

35. The computer gets several and data moves between them

36. Optimization continues

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

38. My washing machine won’t work

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)

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

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

42. Business Process Lifecycle (course diagram)

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

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

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

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

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

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

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

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