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Petros KAVASSALIS

Business Process Management Systems [Συστ ήματα Διαχείρισης Επιχειρησιακών Διαδικασιών] Lecture 1, 2 : BPM, Business Processes and Business Process Models Univ. of the Aegean Financial and Management Engineering Dpt. Petros KAVASSALIS. What you will learn in this course.

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Petros KAVASSALIS

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  1. Business Process Management Systems[Συστήματα Διαχείρισης Επιχειρησιακών Διαδικασιών]Lecture 1, 2: BPM, Business Processes and Business Process ModelsUniv. of the Aegean Financial and Management Engineering Dpt Petros KAVASSALIS

  2. What you will learn in this course • This course provides a set of fundamental concepts for understanding Business Process Management (BPM), business process modelling, process automation and use. • Course topics: • Business Process Analysis • Business Process Design by using: • BPMN • XML • Web Services • E-Forms • Best practices and techniques for modeling business processes: • Methods and examples • “Hands-on" experience: create business process models by using Intalio|BPMS (open source) • Download Intalio|BPMS • Intalio Designer: Getting Started • Tutorial (in Greek) • Strategies for orchestrating enterprise IT systems and human activity through Business Process Management Systems • Familiarization with practical use of BPM in: • e-business • e-government 2.0

  3. Who am I? • PhDinEconomicsandManagement (Univ. ParisDauphine & Ecolepolytechnique) • Research experience • Ecolepolytechnique, Paris • MIT CenterofTechnologyPolicyandIndustrialDevelopment, MIT CTPID (MIT Internet TelecommunicationsConvergenceConsortium) • Current positions • Univ. of the Aegean (FME): Assoc. Professor • RACTI: Director of ATLANTIS Group

  4. Communication tools • e-mail: pkavassalis@atlantis-group.gr • Course web site: see FME web site

  5. Students evaluation • Class Participation (20%) + • Assignments (20%) + • Final Exam (60%)

  6. Starting Point: What is a value chain?

  7. Firms as a “budge” of business functions: M. Porter’s Value Chain

  8. Firms as a “budge” of business functions: Value System

  9. What is a process? [Anupindi et al, Managing Business Process Flows, Prentice Hall] Process Management Information structure Network of Activities and Buffers Inputs Outputs Goods Services Flow units (customers, data, material, cash, etc.) Committed Resources

  10. Examples • Process / Flow unit / Input-Output Transformation • Order fulfillment / Orders / Receive order – Deliver product • Production / Products / Receive components – Develop end product • Outbound Logistics / Products / Store product – Move to the customer • Supply Cycle / Supplies / Issue a purchase order – Receive the supplies • Customer Service / Customers / Arrival of the customer in a store (Receive request) – Customer’s departure from a store (Satisfy request) • New Product Development / Projects / Recognition of the need – Launch of the product • Cash Cycle / Cash / Cover costs – Collect revenues

  11. Process Hierarchy[Harmon, Managing Business Processes, Business Process Trends]

  12. What is process management? (1) • Core concepts: • Understand the process architecture of an organization (discover and model processes – process mapping) • Assess process performance (extract, manipulate and calculate process information) • Simulate processes (move from “as-is” to new process, and process orchestration, designs – “to-be” processes) • Improve in reality process architecture and performance

  13. What is process management (2) • Business processes are the key instrument to decompose firms’ value chains into networks of activities (and buffers) • “Committed” resources are allocated to processes • Processes assure the proper alignment of the firm’s strategic agenda with the three basic execution principles: Operational Effectiveness, Customer Targeting, and Innovation • Business Process Management (BPM) makes it possible to align companies towards customer requirements and to organize an increasingly large number of activities effectively and efficiently (by measuring and evaluating firm’s performance and by constantly re-designing firm’s process architecture according to its strategic goals)

  14. A business process is (in formal terms) • A set of activities • Performed in coordination to realize a business goal • In an organizational and technical environment • Each process is enacted by a single business or it may interact with processes performed by other enterprises.

  15. Source: M. Weske, Business Process Management: Concepts, Languages, Architectures, Springer, 2007 A business process example

  16. Business Process Management (BPM) includes • Concepts • Methods • Techniques • To support the • Design • Administration • Configuration • Enactment • Analysis • … of business processes

  17. A Business Process Management System (BPMS) is • Software that • Is driven by explicit process representations • To coordinate • The enactment of business processes • BPMS contain graphical notations to express orderings between activities of a business process (BPMN)

  18. A business process view of the organization • Implies an horizontal view of organization • Looks at processes as sets of independent activities designed and structured to produce a specific output for a customer or a market • Uses the term activity • To refer to a small scale process that consists of one or few closely related steps • A process defines • The results to be achieved (start-end) • The context of the activities • The relationships between activities • The interaction with other process and resources

  19. Source: M. Weske, Business Process Management: Concepts, Languages, Architectures, Springer, 2007 Business Process Management and Information Systems

  20. Source: M. Weske, Business Process Management: Concepts, Languages, Architectures, Springer, 2007 Enterprise Application Integration through Workflow: example

  21. Enterprise Application Integration through Workflow: Workflow Management System (apps) Source: M. Weske, Business Process Management: Concepts, Languages, Architectures, Springer, 2007

  22. Enterprise Application Integration through Workflow: Workflow Management System (apps + humans) Source: M. Weske, Business Process Management: Concepts, Languages, Architectures, Springer, 2007

  23. Enterprise Application Integration through Workflow: Workflow Management System (humans + apps)

  24. A business process model • Consists of • A set of activity models and execution constraints between them • Is used • To configure the Business Process Management System accordingly • Represents • Activities and Relationships • Graphical representations of business processes focus on the process structure and the interactions of participating parties (rather than on technical / software aspects) • Examples follow

  25. Example: A reseller’s process Source: M. Weske, 2007

  26. Example: A buyer’s process Source: M. Weske, 2007

  27. Example: Interacting business processes (case 1) Source: M. Weske, 2007

  28. Example: Interacting business processes (case 2) Source: M. Weske, 2007

  29. Interacting business processes (case 2) Source: M. Weske, 2007

  30. Business modeling is a process by itself! • Stage 1: Analysis • Stage 2: Design • Stage 3: Implementation

  31. Business Process Management Notation (BPMN) • Graphical notations are being used to expressing orderings between activities of a business process • There are several graphical notation languages for business process modeling, with the more simplified variant being the Business Process Modeling Notation (BPMN)

  32. BPMN Diagrams from scratch • Events (i.e. the occurrence of states in the real world0 are represented by circles • Activities are represented by rounded rectangles • Execution ordering of activities is expressed by directed arrows • Branching and joining of nodes (i.e. the split behavior of the flow of control between activities) is represented by diamonds (called “gateways”) that can be marked by • A “+”: Parallel Fork ? Join (AND) • A “x”: Exclusive Decision / Merge (XOR)

  33. Events

  34. Activities

  35. Flows

  36. Gateways

  37. Pools, Lanes (sub-partitions within a Pool) and Executable Pools • Models of human-enabled process are not “executables”

  38. Special: Sequence flow and Gateways (1) • Sequence flow: control flow. It is represented by • Solid Arrows between • Activities, Events and Gateways • Normal flow: represents • Expected and Desired behavior of the process • Starts and Ends with • An Event (start and end even) • Continues • Via a a set of flow objects (activities, gateways etc.) • Gateways act • As either a join node • Or a split node

  39. Special: Sequence flow and Gateways (2) • Joint nodes: • 2 incoming arcs (at least): • 1 outgoing edge • Split nodes • One incoming arc • 2 outgoing edges (at least) • Remind: • Each Gateway acts as a join node or as a split node

  40. “Exclusive or” splits “Data-based exclusive or split” (x) There is gate with an associated condition (gate condition / data based) Once a gate condition evaluated the true, the corresponding branch is taken, and the other conditions are disregarded “Inclusive or” splits There is gate with an associated condition (gate condition / data based) An arbitrary number of outgoing branches is selected (not only 1) Special: Sequence flow and Gateways (3)

  41. A complex gateway allows the definition of a combined split and join behavior “And split/join” The process starts with getting an order Then, a “parallel” gateway triggers the execution of number n activities (2 and more) These activities are completed simultaneously When they are completed, the “and join” synchronized the parallel flows, and the process terminates Special: Sequence flow and Gateways (4)

  42. application with: Intalio|BPMS[http://community.intalio.com/ ] Source: M. Weske, 2007

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