CIS4120 Fa13 Session 1-Intro

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CIS4120: Define/Innovate Business Processes
Session 1:
Course Content Overview
Richard Welke
Director, CEPRIN
Professor, CIS
Robinson College of Business
Georgia State University
Atlanta, GA
© Richard Welke 2002
Student introductions
Each student is asked to stand-up and introduce
him/herself (1-1/2 minute each, please)
Aid in team formation
Include:
1. Name (say it slowly and clearly, please)
2. Degree program & specialization
E.g., CIS-Security, MGS-Business Analysis
3. If working: where and in what capacity
© Richard Welke 2008-14
CIS 4120 Fa13 Session 1: Course Content Overview
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1961-1970
Topic 0: About the instructor (1)
Computer Operator
MBA, PhD
Mich Con
Gas Co
Programmer, Systems Analyst
GM Research
Labs
Research
Engineer
1970-1992
BSE (IE)
Assistant/Assoc Prof.
Owner, CEO
Professor (HL)
ISDOS
Project
Visiting Research Prof.
© Richard Welke 2008-14
Owner, CEO
CIS 4120 Fa13 Session 1: Course Content Overview
Senior Consultant
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About the instructor (2)
1992-2000
CIS Department Chair (1992-1999)
Interim CIO
(1993-1995)
2000-2014
Founding Director, CEDIC
(1998-2004)
Consortium Director
(1998-2002)
Interim CIO
(1997-1998)
Professor, CIS
Founding Director, ECI
(2000-2004)
© Richard Welke 2008-14
Cor Wit Research Prof.
(2004-2006)
Founding Director, CEPRIN
(2004-present)
CIS 4120 Fa13 Session 1: Course Content Overview
Acting CIO
(2010-2012)
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Domain overview agenda
1. Course syllabus/schedule & where to find them
2. What is a business process?
3. Rationale: Why BPM and BPMS?
Creating business value by improving execution
4. BPM & BPMS
Models and modeling
BPMS (business process management suites)
5. Services & processes
1. Process as service
2. Web services, platforms
6. BPM and business intelligence
Reflective (data warehousing) vs. Responsive
7. Methods & implementation
General approach, incremental deployment
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But first a short “story”
ISDOS project ambitions (ca. 1967)
Langefors and Teichroew
Steps along the way
Application generators
Visual programming (and domain-specific
languages)
DBMS
Component- and service-based “assembly”
ERP/CRM “application suites”
Workflow
MDA  MDE and BPMS
Future (wiring up events and IoT)
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Topic 1: Review of course syllabus
© Richard Welke 2008-14
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Course delivery as a process
© Richard Welke 2008-14
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Course wiki – your “one stop shop”
http://bpmprof.com/ciswiki/index.php?title=Introduction_to_Busi
ness_Process_Management_Fall_2013
I suggest that
you bookmark
this page in your
browser
© Richard Welke 2008-14
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Course conduct overview
Learning objectives
Mode of learning – PBL
The project
The teams
Technology use
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Course learning objectives
Scope a business process
Establish its purpose, identify its users and
associate appropriate metrics for the process
Model it unambiguously and in a way that not
only assists you in analyzing and improving it, but
also communicates to your sponsors and users
what the process is, or will be
Assess via simulation
Identify deficiencies and opportunities in the
existing process
Develop alternative solutions
Six-sigma, LSS
Innovation
© Richard Welke 2008-14
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The PBL approach to learning
Learning by doing
Student primary discoverer of knowledge used
Driven by set of problems
Background readings suggested, but up to you to
uncover the knowledge needed to complete the
work
Why PBL?
Effective as mode of learning
What you’ll do in your professional lives; “learn-tolearn”
Problem solving …
First, unsure about how to proceed, new knowledge
needed
Work backwards
Start with a plausible solution
Search for the necessary knowledge to support it, change it,
and apply it
CIS 4120 Fa13 Session 1: Course Content Overview
© Richard Welke 2008-14
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Class session layout (typical)
First ½-hour of course
Discussion of previous weeks assigned problem
and team’s “converged” solution (1-2 teams
chosen/wk)
Middle (1-hour)
Overview of new materials and/or example methods
of solution
Last ½-hour of course
Simpler problem each team works on and solves
Time permitting - one or two teams chosen to
discuss their solutions
At-home
Readings or tutorials to complete
More complex version of the problem to be solved
at home, then brought to class for comparison and
convergence (see “First portion”)
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Team deliverable – BPM project
Define an as-is and to-be process model for a realworld business process of your team’s choosing
Process to study …
Find a “real world,” information-intensive business
process
One team member should have access for interviews
Framing the project’s process as service
The customer of the process & value metrics
The process owner and problem to be solved (PTBS)
The client & owner metrics
The approach to be taken
Interviewing, modeling of as-is process/metrics
Define improvements and innovations to the process
Develop a to-be and it’s (metric) justification
The project deliverables (Session 14 + 5-days)
PPT deck
Refer to Team Project Handbook for details &
expectations
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Team formation procedure
Form teams of four
One team member should have direct access to a realworld business process (to interview, observe, document
it)
Alternative back-up – “flash” modeling mid course
Send an email to the instructor stating:
Name of each team member
The group leader (the one who I will contact regarding groupspecific issues and schedule a project meeting with)
Timetable:
Teams formed by end of second session
Proposed process as service definition by 4th session
Note:
Not all enrolled students may be attending this session so
some may need to be added
I reserve the right to create/modify teams
© Richard Welke 2008-14
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Topic 2: What are we studying?
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Kinds of business processes
Physical (business) processes (operations courses)
Characteristics
Physical transformation & flow of goods
Activities change the content/shape of a physical object
Examples
Manufacturing assembly line
Shipping and receiving of goods
Transportation logistics
Information-intensive business processes (focus of this
course)
Characteristics
Informational/data flow & /transformation
Actions of both people & automation, sequentially or concurrently
Many transactions
Activities change the content of the data
Examples
Request for loan approval
Credit-card processing
Purchase ordering
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Example business process
Country club member registration process
(from Fa08 team project)
Initiates process
Back-end processing
of application (shown
as a BPMN process
diagram)
Membership
application form
Accept/Reject
Process response
The Service Provided
(Request
membership)
© Richard Welke 2008-14
The Process that
Delivers
(Membership
fulfillment)
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Example business process model
Country club member registration process (from student team project)
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Objective of first half of course
Learn how to translate observations, interviews
and narrative descriptions of a business process
into:
An unambiguous pictorial model of the process
Using open standard (OMG) modeling notation
(BPMN 2.0 subset)
For purposes of:
Communication and shared understanding of the “As-Is”
Critique (identifying problems or “pathologies”)
Ways of improvement
Ways of innovating
Communicating the possible “To-Be”
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Popular ways of studying/improving (1)
Six-sigma process improvement (“Blackbelt”)
Focus on reduction in variance of process time and
output
Lean process improvement (Toyota Production
System)
Focusing on reduction of seven common wastes to
improve overall value, as seen through the eyes of the
customer
And now: Lean/Six-sigma (dual-focus)
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Popular ways of studying/improving (2)
Information systems development
Focus on aspects of process that can be computer
supported or supplanted to achieve efficiencies and
consistency
Use of multiple models (use case, activity diagram,
state charts, object model) to capture various
aspects of process system that are (manually)
transformed into a computer-based application
ERP Systems
Focus on replacing current business processes with
standardized, “best practice” processes embedded
in purchased (ERP) software
Some tailoring of task sequencing and manmachine interfaces allowed (customization)
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Our approach (this course)
Improvement
Critique the existing (As-Is) process using 7R’s
Evaluate As-Is and To-Be processes with simulation
Use Lean/Six-sigma concepts to improve certain
aspects
Innovation
Adopt an “outside-in” perspective (focus on
customer/user of the process/service)
Use PTBS (problem-to-be-solved) and MOT
(moment-of-truth) analysis to innovate the process
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Topic 3: Rationale
© Richard Welke 2008-14
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© Richard Welke 2008-14
(senserespond)
Markets
&
Partners
Multi-channel self-service
Value-chain integration
R/T-Business intelligence (sense)
Adaptive processes (respond)
M&A operations consolidation
Operational
Excellence
Agility
Tailored innovative offerings
Quality (Six Sigma, Lean)
Regulatory
Complianc
e
Constraints  Costs
Busine
ss
Pain
Points
 Revenue/Market Share
Addressing business pain points
Adaptive policies (rules)
Outsourcing/offshoring
Workplace ubiquity
BPMS,
BRMS,
BAM/CEP
, SOA
“Do more with less”
Operational visibility
EVA, ROI
Compliance (Sox, HIPPA, …)
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Topic 3 … How we’ll model BP’s
© Richard Welke 2008-14
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A primary skill: defining/modeling a BP
Normal
We’ll use:
 A process modeling tool
(BizAgi Process Modeler)
 A process modeling
standard (BPMN 2.0)
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Why use a BP modeling tool (vs.. Visio?)
Specification
Repository
(DB)
Standardization (BPMN)
For improved communication/understanding
Add process details & changes incrementally
Changes propagated throughout specifications
Change the name of a task and it changes everywhere
Built in error checking; auto documentation creation
Basis for model-driven execution – (CIS4140)!
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A business process model using BizAgi
Typical
thoughts
OMG this is
complex!
Why so much
detail?
You gotta be
kidding 
Method to
madness …
BPMN  MDE
Model-driven
execution (MDE)
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BPMS concept – Model Driven Execution
Define the
process
(Model it)
Redefine the process
(re-state it)
MDE
Execute the business process
(using a BPMS)
External
Events
(e.g., customer
needs,
regulatory
changes)
Manage the business process
(using a BPMS)
Look for opportunities to improve
& innovate the process
© Richard Welke 2008-14
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BPMN leads to process execution (BPMS)
Model-driven Execution! (CIS
4140)
BPMN process model
Portal & Process
Business Alerts &
Real-time Business Intelligence
Dashboard
Rules
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And process intelligence
Employee on-boarding process, nodes
in:
• Blue - finished
• Green - working on
• Red - cancelled
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Topic 4: The service imperative
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OK, so what’s a service?
Something you initiate by making a request (e.g.,
an order, a contract, a payment)
You receive, as a result, something that you can
use
Typically, to (partially) solve a problem you have or
expect to have
You generally don’t know how the work is done
that gets you from your request to the service
response
Examples ???
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The race to become an SOE
SOE: Service-oriented enterprise
The service-connected
Controlled
organization
Regulators
visibility into
transaction
progress
Upstream
Vendor
“A”
Readily add vendors
Flexibly
accommodate
interface
requirements
© Richard Welke 2008-14
Downstrea
m
Customer
“X”
Downstrea
m
Distributor
“Y”
Flexibly change
underlying process
& delivery without
affecting service
interfaces
Upstream
Vendor
“B”
External
Service
Provider
“AA”
External
Service
Provider
“BB”
Provide easily
updated services
Add new services
without impacting
customer
interfaces
External
Service
Provider
“CC”
CIS 4120 Fa13 Session 1: Course Content Overview
Select services for
outsourcing
based on
“core/context”
decisions
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Value-Chain (or Value Web)
Distributors
Contractors
Intermediate
Suppliers
Reseller Contracto
r
Product/Servi
ce Provider
End
Consume
r
Source
Suppliers
Organizing by value streams of services
Choice depends on
organizational
strategy
Value streams
Designto-order
Need-toconcept
Concepttoprototype
Prototyp
e-tolaunch
Innovativ
e offering
Plan-toproduce
Build-toorder
Demandto-fulfill
Order-tocash
Responsiv
e Service
And others …
Value “streamlets” or “composite services”
Order
© Richard Welke 2008-14
Orderto-verify
Verifytoinitiate
Complet
e-to-bill
CIS 4120 Fa13 Session 1: Course Content Overview
Bill-tocash
Cash
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Services can be defined top-down, bottom-up
Or .. Middle-out (define business processes)
Top-Down
ServiceOriented Enter.
Service-delivery (orchestration)
Plan-toproduce
Build-toorder
Demandto-fulfill
OrderOrder-toto-cash
(orchestration)
Cash
Order
Middle-out
process
improvemen
t
Order-toverify
Verify-toinitiate
Completeto-bill
Bill-tocash
BPM
Order-to-verify process
Act-1
Bottom-up
Technologybased
Services
SOE
Responsive
Service
Act-2
Act-3
ERP/CRM/SCM Applications
Fn-1
© Richard Welke 2008-14
Fn-2
Fn-n
Bill-to-cash process
Act-n
Act-1
Act-2
Existing Custom Applications
Wrap1
Wrap2
Wrapn
CIS 4120 Fa13 Session 1: Course Content Overview
Act-3
Act-n
SOA
New Service Development
WS-1
WS-2
Ws-n
37
The business process definition
problem
• Most organizations are an undocumented, highlyinterdependent jumble of human/automated tasks & activities
• Loosely organized along functional boundaries
• Want to change something? Where do you start/end? What
breaks?
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Solution
“Think Service, Act Process”
Frame business processes in terms of the
service(s) they deliver to clients
Internal
External
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Services encapsulate business processes
A service “encapsulates” (hides) the flow of
actions needed to enact it (the business
process)
Value stream notation
Service Interface
Loan
Loan
Application
Documents
Applicationtodocuments
Service
notation
Underlying
business process
(single point of
contact)
Loan
App
(service)
Loan application (business) service:
Request loan (event+data)  Receive loan documents (service result)
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Service-process example
Revisiting the country club member registration
process
MM- Service
Interface
Membership
Application
Accept/Reject
Clien
t
The Service Provided
(Request
membership)
© Richard Welke 2008-14
The Process that
Delivers
(Membership
fulfillment)
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Framing the service-process (next session)
The client
(with problem
to be solved)
The triggering
event or
document
Outcome (client) innovation
Value metrics:
The
organizational
response to this
event
A short “X-to-Y”
description that
captures the
nature of the
service provided
© Richard Welke 2008-14
Performance
measures
associated with the
client’s
perception of
value
(tend to be external,
Process
effectiveness
metrics:
related)
Performance
measures
associated with the
Value metrics:
1.
2.
3.
4.
?
Process metrics:
1.
2.
3.
4.
5.
?
underlying
process
operation
(tend to(process)
be internal,improvement/innovation
Operational
efficiency related)
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Topic 5: Course links to related topics
© Richard Welke 2008-14
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BPM and “IT Enterprise Architecture”
© Richard Welke 2008-14
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Topic 6 … Method of proceeding
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General approach followed in course
Develop the service scenario and metrics
Model the “As-Is” process
Process map (overall, end-to-end business process)
Process model (detail drill-down on how process behaves)
Critique the as-is from both client and process
Process metrics & KPI’s as drivers
7R’s, 6-sigma/lean for potential improvement areas
Innovation techniques (e.g. PTBS, MOT)
Develop “grand plan” to-be (innovation) model and
justification
Devise incremental improvement, implementation and
change management strategy
e.g., the IDEAL model (next two slides)
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“IDEAL” iterative process improvement
Document & analyze
lessons
Revise
organizational
approach
Define the new processes & measures
Plan & Execute pilot plan
Execute, & Track installation
INITIATING
ACTING
LEARNING
Establish process
action teams &
action plans
ESTABLISHMENT
Stimulus for
change
Set context &
Establish
establish
sponsorship context
Appraise &
characterize
current service &
process
Adapted from: McFeeley, B. (1996). “IDEAL: A
User's Guide for Software Process
Improvement”, CMU/SEI-96-HB-001.
www.sei.cmu.edu
© Richard Welke 2008-14
DIAGNOSING
Set strategy & priorities
Develop “should-be” recommendations
& document results
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Implementation should be continuous!
BPM (w/BPMS) well suited to iterative, continuous improvement
Due to relative simplicity of making changes (by end-users)
Avoids the “big bang,” eases change management issues
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Team project
The process to study
Need to find a “real world,” information-intensive
business process
One team member should have access for interview
Framing the project’s process
The customer of the process & value metrics
The process owner
Their KPI’s and process metrics
The approach to be taken
Interviewing, modeling of as-is process/metrics
Development of to-be and justification
The project deliverables
Refer to student handbook on MyRobinson (see
wiki)
Previous section examples will be posted later
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How you might frame your project
1st: Think of a service your unit renders to a client
For example, think of a service that results in a
document that a customer/client requests from you
What do you think the customer’s problem is that
this document helps to solve?
Does it solve all of that problem?
What are some metrics you could assign to your
effectiveness
2nd: Think now of the process that produces that
document
What are some of the metrics that might be
associated with that process you’d like to improve
upon?
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Team formation procedure
Form teams of four
One team member should have direct access to a realworld business process (able to interview, observe,
document it)
Send an email to the instructor stating:
Name of each team member
The group leader (the one who I will contact regarding groupspecific issues and schedule a project meeting with)
Timetable:
Teams formed by next session
Proposed process as service definition by 3rd session
Note:
Not all enrolled students may be attending this session so
some may need to be added
I reserve the right to create/modify teams
© Richard Welke 2008-14
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IC-1: Model a business process
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Process narrative
Max’s Lemonade Stand
The primary perspective of the process owner (Max) is the sequence
of tasks that get him from the customer’s order to delivering the glass
of lemonade and being paid for this. Below is how Max’s operation
currently works – his “As-Is” process model:
1. The client makes an order with Max for a glass of lemonade
2. Max pours out the glass of lemonade. If there’s not enough in
the pitcher he’s been using, he goes to the reserve pitcher and
completes the glass with that pitcher. If this happens he
knows to call his mom on her cell phone to the house to have
her make another pitcher after he’s served his customer
3. Next he requests payment (in cash) from the customer and
receives their payment (we’ll ignore for now what happens if
Max isn’t able to make correct change)
4. Max provides the glass of lemonade to the customer
5. If this sale “triggered” the mom-renewal pitcher renewal (Step
2), he makes the call to get a fresh pitcher of lemonade
6. This ends this process
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Your task
Work with the other students near you
Come up with a process diagram that represents
the described process (use whatever modeling
approach you wish)
Put the result on a single sheet of paper
You have 15 minutes to complete
I’ll then select one or two to present/discuss
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