SESSION : Business Processes and

Enterprise Applications
Business Processes
Business process modeling and reengineering
Enterprise applications and ERPs
Web portals
Customer care and customer relationship
management
Online Purchasing and e-procurement
Electronic marketplaces
ASPs /CSPs
ERPs
supply chain management

Amjad Umar
Copyright (A. Umar)
 Enterprise
Building Blocks Architecture
Business Processes Business
Healthcare BPs Telecom BPs Other Vertical BPs Architecture
(Clinical) (e.g. Provisioning) (MRP, Financial)
Common BPs (Marketingt, CRM, HR)
Enterprise Applications
Healthcare Application
(HCIS) Telecom OSSs Other Vertical Apps Architecture
Common Apps: (ERPs for CRM, HR, etc)

Platform and Middleware Services

Mobile Platforms Specialized Services (EC, Platform
(WAP, J2ME, BREW,) B2B, ) Architecture
Common Middleware (Web, Web 2.0, Web services ,)

Network Services (Layer 1-4 of OSI)

Wired Networks Wireless Networks Network

NGNs
(LANs, MANs, (5G Cellular, WLANs, Architecture
WPANs, WLLs, (Converged
WANs)
Satelites, MANETs), Networks)
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 Frameworks for Enterprise &
Business Architecture
Zachman Information Framework (www.zifa.com):
is a well known framework for enterprise architecture.
The Object Management Group (www.omg.org)
has established a Business Architecture Working
Group[3]
The Open Group (www.opengroup.org) has
developed the Open Group Architecture Framework
(TOGAF) that includes Business Architecture as
one of the four "domains" of architecture.
eXtended Business Modeling Language
(www.xbml.org) is a solid framework for denoting an
EBA.

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 Business Strategy and IT
Business Enablers Drivers
Process Business Strategies
(Re)
Engineering

App Business Applications

(Re)
Engineering

IT IT Infrastructure
Infrastructure (Middleware,
(Re) Operating systems
Engineering Networks)

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Business architecture elements

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 BUSINESS PROCESSES AND
BUSINESS APPLICATIONS
Business Processes (BPs): Activities to
support business
Example: Paying creditors, creating
financial statements, managing cash
accounts, Hiring employees, paying
employees, evaluating performance,
enrolling employees in benefits plans
Business Applications: Computerized BPs
(CBIS), enterprise appplications
Examples: payroll system, supply chain
systems, battlefield applications
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TYPES OF BPs and APPLICATION SYSTEMS

Strategic
Level

Management/
Knowledge
Level

Operational
Level

Sales and Finance and Human Product/Service

Marketing Accounting Resources Development

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Business Process Analysis & Reengineering
Basic Idea:
What business processes (BPs) are needed and why
Redesign work and business processes from the ground up instead of
simply automating existing tasks.
Use technology (IT) to improve the performance of a business and cut
costs

BP1 BP2 BP3

Business Process Improvement & Reengg

Business planning (focus on business)
Business process improvement: refinements
BPR: assume that existing BP is irrelevant (Hammer)
FMO (future method of Operation)
PMO (Present Method of Operation)
Gap Analysis
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 Patterns for Business Process Analysis
Patterns, introduced by Christopher Alexander [Alexander 1977, Alexander
1979]
well-known format for capturing engineering knowledge.
A pattern T is a tuple T(p, s, e) where p is the problem to be solved, s is the
solution (what works in practice), and e is an example.
Additional information such as diagrams, context, benefits, consequences,
and limitations can also be added to a pattern to help the designer.
In addition, each pattern is assigned a name.
The main value of a pattern is the solution s that represents the best practice
and what works in real life situations. The solution s is provided to a
designer as a generic solution -- a sketch -- that can be refined and
specialized based on the situation, additional inputs, or inferences from other
patterns.
Solutions in a pattern can depend on previous choices represented by other
patterns. The patterns discussed in this document are based on extensive
literature reviews and the knowledge of an IT consulting team.
Different types of patterns have been introduced (design patterns,
architecture patterns, security patterns, etc
Our interest at present is in Business Process Patterns that represent
common business processes in different industry segments
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 A Business Process Pattern of a Retail Store

Sales
Selling Warehousing &Distribution
Chain
Mgmt purchasing
Inventory

Order Shipping
Customer processing) Customer
payment
Services
Customer
Corporate Mgmt Supply Chain Management
Support
BI CP
MC Procurement
EP
CRM
KM BMC

Scheduling
Customers, Partners,
Resellers Supplier,
Human Resources
Distributors
Payroll Hiring
Marketing
Research estorefronts

Finance & Accntg

BI=Business Intelligence
BMC=Business Monitoring & Control
CP = Corporate Planning
Finance accntg -Shows business
EP = enterprise purchasing
KM = Knowledge Management Employees, processes and their
Managers
MC= Monitoring & Control
Interrelationships
- Can be customized
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 Business Process Management
A method of efficiently aligning an organization with the
wants and needs of clients.
holistic management approach
promotes business effectiveness and efficiency while striving
for innovation, flexibility and integration with technology.
attempts to continuously improve processes - the process to
define, measure and improve your processes a process
optimization' process.
Maturity Models about BPM:
0: non existing
1: initial/adhoc
2: repeatable but intuitive
3: Defined processes
4: Managed and Measurable
5: Optimised
Many BPMS (Business Process Management Systems) are
commercially available
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 Business Process Modeling
Typical questions in building a process model
What are the activities that belong to a process?
What is the sequence in which these activities must
be carried out?
Can some of these activities be carried out in
parallel?
Which organizational units are involved?
Which application programs are involved in checking
customer information?
What kind of data is involved?
What business rules drive the processes?
It is typical to use flowcharts/directed graphs to develop
workflow process models.
Newer systems use UML (Universal Modeling
Language) and OO approach
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 Workflow Example of a Claim Processing Process
Start Claim Process
(Create a claim file)
Modeling:
1.Activities/ decisions
Is claim valid? Yes
2. For each activity: (e.g. Covered Collect Evidence
by policy)
-Rules, input/output
-Roles/responsibilities NO Rejected
Claim Payable?
- Software/hardware
Accepted
Legend
Notify
Block Activity
Approval
Claims
Decision File
Issue
Check
Shared Data
Connector
Exit
Close
(typically Notify rejection File
carries messages)
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Workflow Management Systems
(WMS)
Many WMS commercially available
IBM
HP
Many smaller systems
Sometime also known as BPR toolkits
Allow modeling of business processes
Business flows
Business rules
Translate models to solutions
Deploy workflows between existing systems
Recent Trends: XML based systems
BPEL (Business Process Execution Language)
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 Workflow Management System- Conceptual View
Build Process Modeling (e.g., UML)
& Choreography (e.g., WS-CDL) Tools
BP Modelers

Execute the process models

Monitor & (Example: BPEL)
Control Other Workflow
(e.g., BPQL) Workflow Workflow Enactment Services
Engine Engine

Workflow Applications
Workflow Application Application
Administrators

Workflow
Users

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Enterprise Resource Planning (ERP)
Systems
The Agenda
ERPs, Portals and CRM
ePurchasing and eMarkets
Supply Chain Management
Corporate & Backoffice Systems

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ERP System Conceptual View
Payment
Marketing System

Order Inventory
Processing Manager
Common
Database
Shipping/ Scheduling
Receiving System

An ERP System Consists of:

Many applications
Integrated around a common database
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 ERP (Enterprise Resource Planning Systems)
ERP systems manage Core Resources
enterprise resources People
More than 70 percent of Fortune Costs (payables/receivables)
1000 companies have ERPs Assets

Industry Specific Resources

Service Resources
Manufacturing
Services
Telecom
Offerings
Healthcare
Support materials
Finance
Orders
Others

Manufacturing Resources
Telecom Resources
Materials
Network devices (e.g., switches)
Products
Network links (e.g., cables)
Inventories
Inventories
Orders customer Orders
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 Commercial ERP systems
Major players (many others) with focus on back-office
SAP
Peoplesoft
Oracle
Typically contain database and several modules integrated around the
database
Facilitate changes in business and technologies
Mostly quite expensive but offer many benefits (Ericsson)
Reduces time
Order processing time from 1 hour to 10 minutes
Production scheduling time from 18 hours to 30 minutes
Improves quality (98% orders delivered on time)
Consolidate and integrate many functions (uniform access)
Improve decisions across organization
Becoming very Web-oriented
Trying to find their place in Ebusiness (ERP to BRP)

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 Ebusiness view

Business
Partners

Customer External
Network Partner
Business
Network
Suppliers

Customers

Business
Business To Business
To Business
Customers To Employee
(B2B)
(B2C) (B2E)
e-BUY
e-SELL e-MAKE
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Ebusiness requires a combination of several new and old applications

CRM eMarket New

Portals

E-payment
SCM
ERP MRPII Payment
Purchasing
System
Inventory
Control
MRP Billing Old

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 High Level Diagram
Portal hosted by
Customers, Resellers ASP

Resellers
Selling Chain Management
Outsourced
CRM
Headquarters
outsourced
Partners through ASP
Marketing Sales Service E-commerce
Customer Relationship Management

Administrative Business Application Management

Employees Intelligence Integration Stakeholders
Control Control

Logistics Production Distribution

ERP &SCM
outsourced
Through
ASP
Supply Chain Management
E-Market outsourced
through
Partners, Supplier, Distributors, Resellers ASP
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 High Level Application Architecture

Local Resources

DB

Business layer

Back-end Integration
Front-end Integration
APP External
(Trading Partner)
Resources

DB
External
Partner
Network
APP

Consumers Business
Business
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 Corporate Management
Sales
Selling
Chain
Mgmt purchasing

Order
Customer processing) Customer
payment
Services

Customer
Corporate Mgmt
Support
BI CP
EP
CRM
KM BMC

Customers,
Resellers
Human Resources
Payroll Hiring
Marketing
Research E-storefronts

Finance & Accntg

BI=Business Intelligence
BMC=Business Monitoring & Control Finance accntg
CP = Corporate Planning
EP = enterprise purchasing
KM = Knowledge Management Employees Managers
MC= Monitoring & Control

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 Business Intelligence and Data Mining
Repository Data extraction
modeling/ & loading
End user design
Tools

Data
Report writers
OLAP
Drill Down Data
Data
Data Mining Warehouse
Sources
Trend analysis
Others?

Data

Meta Data
(data about
data)
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 B2B Systems
SUPPLY-CHAIN MANAGEMENT
ORDER PLANNING &
CUSTOMERS PROCESSING FORECASTING SUPPLIERS

PROCUREMENT
ACCOUNTING EXTRANET
INTRANET

PRODUCTION

LOGISTICS
SHIPPING INVENTORY DISTRIBUTORS
SERVICES

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 B2Bd (Business to Business -Direct) Business Pattern

Business A Business B

Private
Private Process
Network
Process
(private or public)
Public Public Private
Private Data/Process
Process Data/Process Process

Private Private
Process Process

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 Service Providers (SPs)
Why SPs? The answer is Cost and Speed

Cost of customers buying, installing and

running everything themselves
Cost

Price customer is willing to pay

SPs Zone

Volume of Customers Business

Some Information (Source: ASP Forum)
Building own infrastructure needs minimum 8 months to a year
Corio can support a new customer in 4 to 14 weeks
Customers can save between 30 to 40% by using an ASP model

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Service Providers (ASPs, CSPs, NSPs)
for outsourcing
Business Processes BSP
(e.g.,delivery)

Applications and Services

ASP

Platforms (computers, middleware) Commerce

service
provider
NSP Networks (CSP)

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 ASP
(Application Service Providers)

Corporate
Internet-Driven
Computing

Internet-Corps
(web builders,
Electronic Portal telephony,
Marketplaces -Based unified
messaging)

Desktop
Vendor
Enterprise Computing (outsourced
ASPs
brand-name package) computing
environment)

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 Voice Annotation

For a Voice Annotated Discussion of these slides, please

review the following Video Clip.

Note: This is an edited version of a live discussion

session and is jittery and of low quality. It is intended to
give you a general overview of the topic

Title: Enterprise and Business Architectures,

Duration: 46 minutes, URL for Viewing: Viewing:
http://harrisburgu.adobeconnect.com/p2hqcfn3ov7/