CSS 496 Business Process Re-Engineering: For BS (CS)

CSS 496
Business Process Re-

engineering for BS(CS)
Chapter 1: Introduction
Khurram Shahzad
mks@ciitlahore.edu.pk
Based on P. Wohed, M. Dumas and M. Weske Lectures
Department of Computer Science 1

Agenda
 Introduction
 Course Material
 Course Evaluation
 Course Contents

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

Group Webpage

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

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

Stockholm University,
Sweden
Technical University Eindhoven,

The Netherlands
University of Sri-Jayewardennepura,
Sri Lanka

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.

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 paper on
 BPM social network
 May add a couple more
Lab Work
 Lab Exercises. To be submitted individually

Course Introduction
 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

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

(BPM)
A business process consists of a set of activities
that are performed in coordination in the
organizational and technical environment
 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

(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

Process and the organization

(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

(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

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

© Springer-Verlag Berlin Heidelberg 2007
Send Receive
Invoice Payment
Reseller
Receive Archive
Order Order
Ship
Products
Fig 1.1. Simple ordering process of reseller

(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

Terminology around

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

Assembly line

Traditional Process (as-is)

The first computers

The computer gets several and data
moves between them

Optimization continues

Consequences
 The process is hidden in the systems and no

longer visible for the people.
 It is no more simple to “see” the whole 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.

My washing machine won’t work

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)

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

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

The result…
 75% reduction in head count

 Material control is simpler and financial
information is more accurate
 Purchase requisition is faster
 Less overdue payments
 Why automate something we don’t need to
do?
 Automate things that need to be done.

Business Process Lifecycle
Evaluation:
Process Mining
Business Activity Monitoring

Evaluation
Design:
Administration Business Process
Enactment: and Design & Identification and
Operation Enactment Modeling
Monitoring Stakeholders Analysis
Maintenance Analysis:
Validation
Simulation
Configuration Verification
Configuration:
System Selection
Implementation
Test and Deployment
Fig 1.5. Business process lifecycle

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

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
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

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

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
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 stauts of
process instances
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

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

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

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

Business Process Lifecycle
Evaluation:
Process Mining
Business Activity Monitoring

Evaluation
Design:
Administration Business Process
Enactment: and Design & Identification and
Operation Enactment Modeling
Monitoring Stakeholders Analysis
Maintenance Analysis:
Validation
Simulation
Configuration Verification
Configuration:
System Selection
Implementation
Test and Deployment
Fig 1.5. Business process lifecycle

Classification of Business Processes
 Organizational vs Operational
 Intra-organizational Processes vs Process
Choreographies
 Degree of Automation
 Degree of Repetition

Business Strategy
 Organizational vs Operational determines realize
 Ranges from high-level strategy Goals
to implemented processes
 Business Strategy describes long- determine realize

term concepts to develop a Organizational
Business Processes
sustainable competitive determine realize
advantage e.g. cost leadership for

products Operational
Business Processes
 Strategy is broken down into determine realize
operational goals Implemented

Business Processes
 e.g. Reducing the cost of material
Fig 1.6. Levels of business processes: from business strategy to
implemented business processes

Business Strategy
 Organizational Processes determines realize
 High level Goals
 Specified in textual form by determine realize

 Inputs Organizational
Business Processes
 Outputs
Expected results
determine realize

 Dependencies on other processes Operational

Business Processes
 e.g. process to manage incoming determine realize
raw materials provided by a set of Implemented

Business Processes
suppliers

Business Strategy
 Operational Processes determines realize
 There are multiple organizational Goals
processes that contribute to determine realize
organizational process

Organizational
 In operational processes activities Business Processes
and their relationships are determine realize
specified Operational
Business Processes
 Operational process are specified determine realize
by process models Implemented

Business Processes


Business Strategy
 Operational Processes are determines realize
basis for developing Goals
implemented processes determine realize

 Implemented processes Organizational
Business Processes
contain information on the determine realize
 execution of process activities Operational

Business Processes
 technical and organizational determine realize
environment in which they will be

Implemented
executed Business Processes


Choreographies

 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
 More technical aspects are involved here because
different organizations use different software platforms

Choreographies

 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

 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
 If repetitive  process modeling, automation
 If not repetitive  process modeling and
automation is questionable due to high cost

 Degree of structuring
 Either highly structured (rigid) or flexible for
knowledge workers.
 Data dependencies are used instead of control
flow constraints

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CSS 496

Business Process Re-

Department of Computer Science 1

Department of Computer Science 2

 M.Sc. from PUCIT, University of the Punjab, PK

 MS from KTH - Royal Institute of Technology, Sweden 2006

 PhD from Information Systems Lab,

Department of Computer Science 3

Department of Computer Science 4

Department of Computer Science 5

Department of Computer Science 9

Technical University Eindhoven,

Department of Computer Science 10

Department of Computer Science 11

2. Implementation of processes in open

 Lab Exercises. To be submitted individually

Department of Computer Science 13

 BPM is based on the observation that each

Department of Computer Science 14

Department of Computer Science 15

 These activities jointly realize a business goal

Department of Computer Science 16

Department of Computer Science 17

Department of Computer Science 18

 The basis of BPM is the explicit representation of

Department of Computer Science 19

A business process management system is a

Department of Computer Science 20

M. Weske: Business Process Management,

Fig 1.1. Simple ordering process of reseller

Department of Computer Science 21

 Each business process model acts as a blueprint for

Department of Computer Science 22

Department of Computer Science 23

 People performed the entire process

Department of Computer Science 24

Department of Computer Science 25

Department of Computer Science 26

Department of Computer Science 27

Department of Computer Science 28

Department of Computer Science 29

 The process is hidden in the systems and no

Department of Computer Science 30

Department of Computer Science 31

 Every process leads to one or several

Department of Computer Science 32

Department of Computer Science 33

Department of Computer Science 34

 75% reduction in head count

Department of Computer Science 35

M. Weske: Business Process Management,

Fig 1.5. Business process lifecycle

Department of Computer Science 36

Department of Computer Science 37

Three good reasons for

Department of Computer Science 39

 Process modeling has an evolutionary

Department of Computer Science 40

 Once process model is designed and verified,

 Information is valuable, for instance to

Department of Computer Science 43

 Uses the information available to evaluate

Department of Computer Science 44