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Question One
Pg. 01
Learning
Outcome(s):
Design ES
architectural
models for
various business
processes.
Question One
2 Marks
In BPMN, there are several different ways to represent exceptions and to include
behavior that is specifically targeted at handling those exceptions. Briefly explain in your
own words four of them.
Question Two
Pg. 02
Learning
Outcome:
Design ES
architectural
models for
various business
processes.
Question Two
2 Marks
There are different approaches to modeling processes using spreadsheets that depend on
the envisaged degree of fidelity. Briefly explain in your own words two of them.
Question Three
Pg. 03
Learning
Outcome(s):
Design ES
architectural
models for
various business
processes.
Question Three
2 Marks
Model (As-Is) the following Car Wash process Scenario using BPMN 2.0.
–
–
–
The customer pulls the car up to the car wash Machine and then chooses the wash
program, Eco or Polish Plus.
If the customer decides to go with Eco, they will pay the washing fee (30 S.R), and
then the car wash Machine will start the washing by
•
Soft Cloth Wash
•
Wheel Clean
•
Dry
If the customer decides to go with Polish Plus, they will pay the washing fee (50
S.R), and then the car wash Machine will start the washing by
•
Soft Cloth Wash
•
Doble Polish
•
Clear Coat Protection
•
Wheel Luster
•
Wheel Clean
•
Dry
After the car has dried, the customer can drive away.
Question Four
Pg. 04
Learning
Outcome(s):
Design ES
architectural
models for
various business
processes.
Question Four
2 Marks
A model is a form of representing something: There are several types of models.
Describe and provide an example of two of them.
Enterprise Process Management
Systems
Enterprise Process Management
Systems
Engineering Process-Centric Enterprise
Systems using BPMN 2.0
Vivek Kale
CRC Press
Taylor & Francis Group
6000 Broken Sound Parkway NW, Suite 300
Boca Raton, FL 33487-2742
© 2019 by Vivek Kale
CRC Press is an imprint of Taylor & Francis Group, an Informa business
No claim to original U.S. Government works
Printed on acid-free paper
International Standard Book Number-13: 978-1-4987-5592-4 (Hardback)
International Standard Book Number-13: 978-0-429-45331-1 (eBook)
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Visit the Taylor & Francis Web site at
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To Girija,
my beloved muse and fellow traveler,
for her eternal encouragement, support, and inspiration,
without which none of my books would exist.
Contents
List of Figures …………………………………………………………………………………………………………….. xvii
List of Tables …………………………………………………………………………………………………………………xxi
Foreword …………………………………………………………………………………………………………………… xxiii
Preface ………………………………………………………………………………………………………………………….xxv
Acknowledgments …………………………………………………………………………………………………… xxxiii
Prologue……………………………………………………………………………………………………………………. xxxv
Author…………………………………………………………………………………………………………………….. xxxvii
Other Books by Vivek Kale ………………………………………………………………………………………..xxxix
1. Enterprise Systems …………………………………………………………………………………………………..1
1.1
Evolution of Enterprise Systems………………………………………………………………………1
1.1.1 Materials Requirement Planning ………………………………………………………… 1
1.1.2 Closed-Loop Materials Requirement Planning…………………………………….3
1.1.3 Manufacturing Requirement Planning II…………………………………………….. 3
1.1.4 Enterprise Resource Planning ……………………………………………………………..3
1.2
Extended Enterprise Systems…………………………………………………………………………..4
1.2.1 Extended Enterprise Systems Framework……………………………………………5
1.2.1.1 Foundation Layer ………………………………………………………………….5
1.2.1.2 Process Layer…………………………………………………………………………5
1.2.1.3 Analytical Layer…………………………………………………………………….6
1.2.1.4 Electronic Business Layer ……………………………………………………… 6
1.2.2 Extended Functionality ……………………………………………………………………….7
1.3
Enterprise System Packages and Bespoke Solutions ………………………………………..8
1.4
Enterprise Resource Planning ……………………………………………………………………….. 11
1.4.1 Concept of Enterprise Resource Planning …………………………………………. 12
1.4.2 Enterprise Resource Planning System………………………………………………..13
1.4.3 Characteristics of Enterprise Resource Planning ……………………………….. 15
1.4.3.1 Enterprise Resource Planning Transforms the Enterprise
into an Information-Driven Enterprise ………………………………..16
1.4.3.2 Enterprise Resource Planning Fundamentally Perceives
an Enterprise as a Global Enterprise ……………………………………16
1.4.3.3 Enterprise Resource Planning Reflects and Mimics
the Integrated Nature of an Enterprise ……………………………….. 16
1.4.3.4 Enterprise Resource Planning Fundamentally Models
a Process-Oriented Enterprise ……………………………………………..17
1.4.3.5 Enterprise Resource Planning Enables the Real-Time
Enterprise…………………………………………………………………………….18
1.4.3.6 Enterprise Resource Planning Elevates Information
Technology Strategy as a Part of the Business Strategy ………..18
1.4.3.7 Enterprise Resource Planning Represents a Major
Advance on the Earlier Manufacturing Performance
Improvement Approaches …………………………………………………..19
vii
viii
Contents
1.4.3.8
1.5
1.6
Enterprise Resource Planning Represents the
Departmental Store Model of Implementing
Computerized Systems ………………………………………………………..20
1.4.3.9 Enterprise Resource Planning is a Mass-User-Oriented
Application Environment……………………………………………………. 20
1.4.4 Advantages of Enterprise Resource Planning……………………………………. 20
1.4.5 Disadvantages of Enterprise Resource Planning ……………………………….. 21
Enterprise Business Processes ……………………………………………………………………….. 22
Summary ……………………………………………………………………………………………………….23
2. Characteristics of Business Processes …………………………………………………………………….25
2.1
Business Process …………………………………………………………………………………………….25
2.2
Process Performance………………………………………………………………………………………26
2.3
Process Cycle Time ………………………………………………………………………………………..29
2.3.1 Computing Cycle Time……………………………………………………………………… 31
2.3.2 Process Flow Aspects …………………………………………………………………………32
2.3.2.1 Rework ………………………………………………………………………………..32
2.3.2.2 Multiple Paths ……………………………………………………………………..32
2.3.2.3 Parallel Paths ……………………………………………………………………….32
2.3.3 Process Capacity ………………………………………………………………………………..33
2.3.3.1 Resources …………………………………………………………………………….33
2.3.3.2 Theoretical Capacity …………………………………………………………… 33
2.3.3.3 Capacity Utilization …………………………………………………………….35
2.4
Process Costs …………………………………………………………………………………………………36
2.5
Process Quality………………………………………………………………………………………………37
2.6
Measuring Process Performance …………………………………………………………………… 40
2.6.1 Concepts for Performance Measurement ………………………………………….. 41
2.6.2 Process Performance Measurement Based on Indicators,
Measures, and Figures ………………………………………………………………………. 41
2.6.3 Measurements to Determine Process Performance ……………………………. 42
2.6.4 Frameworks for Measuring Process Performance……………………………… 42
2.7
Summary ……………………………………………………………………………………………………….44
Section I
Genesis of Enterprise Process Management Systems
3. Systems Theory ………………………………………………………………………………………………………47
3.1
Systems Thinking…………………………………………………………………………………………..47
3.1.1 Systems Science …………………………………………………………………………………48
3.1.2 Principles of Systems Science …………………………………………………………….49
3.2
Systems Engineering ……………………………………………………………………………………..50
3.2.1 System Dynamics via Simulation Modeling ………………………………………51
3.2.2 Changeable Systems ………………………………………………………………………….51
3.2.2.1 Increasing Complexity …………………………………………………………52
3.2.2.2 More Dynamic …………………………………………………………………….52
3.2.2.3 Growing Security Concerns …………………………………………………52
3.2.2.4 Rising Privacy Concerns………………………………………………………52
3.2.2.5 Increasing Interconnectedness…………………………………………….. 52
3.2.2.6 Many Stakeholders ………………………………………………………………52
Contents
ix
3.3
Systems Architecting ……………………………………………………………………………………..54
3.3.1 Systems Architecture ………………………………………………………………………… 54
3.3.1.1 Functional Architectural Requirements ………………………………. 57
3.3.1.2 Nonfunctional Architectural Requirements ………………………… 58
3.3.2 Enterprise Architecture……………………………………………………………………… 59
3.3.2.1 Business Architecture …………………………………………………………. 60
3.3.2.2 Information Architecture ……………………………………………………. 61
3.3.2.3 Application Architecture …………………………………………………….. 62
3.3.2.4 Technical Architecture ………………………………………………………… 63
Enterprise Processes ………………………………………………………………………………………64
Summary ……………………………………………………………………………………………………….65
3.4
3.5
4. Enterprise Architecture …………………………………………………………………………………………..67
4.1
Architecture …………………………………………………………………………………………………..67
4.1.1 Architectural Element ………………………………………………………………………..68
4.1.2 System Structures ……………………………………………………………………………… 68
4.1.2.1 Attribute Tradeoffs ……………………………………………………………… 70
4.1.3 Candidate Architecture …………………………………………………………………….. 71
4.1.4 Stakeholder………………………………………………………………………………………..72
4.2
Viewpoints and Views……………………………………………………………………………………73
4.3
Perspectives …………………………………………………………………………………………………..74
4.3.1 Change Perspective ……………………………………………………………………………78
4.3.2 Availability Perspective ……………………………………………………………………..80
4.3.3 Scalability Perspective ……………………………………………………………………….83
4.4
Enterprise Architecture Frameworks …………………………………………………………….. 87
4.4.1 Zachman Framework…………………………………………………………………………88
4.4.2 The Open Group Architecture Framework ……………………………………….. 91
4.4.3 Federal Enterprise Architecture Framework ……………………………………… 93
4.4.4 Department of Defense Architecture Framework ……………………………… 94
4.4.5 Ministry of Defense Architecture Framework …………………………………… 95
4.5
Summary ……………………………………………………………………………………………………….96
5. Process Architecture ……………………………………………………………………………………………….99
5.1
Change…………………………………………………………………………………………………………100
5.2
Process Architecture ……………………………………………………………………………………. 103
5.2.1 Process Perspectives…………………………………………………………………………105
5.2.2 Process Views …………………………………………………………………………………..107
5.3
Reference Process Architecture: Workflow Systems …………………………………….. 112
5.3.1 Basic Workflow Components ………………………………………………………….. 112
5.3.2 Types of Workflow ………………………………………………………………………….. 113
5.3.3 Workflow Modeling ………………………………………………………………………… 115
5.3.4 Workflow Perspectives ……………………………………………………………………. 116
5.3.4.1 Data or Informational Perspective …………………………………….. 116
5.3.4.2 Context or Organizational Perspective ……………………………… 116
5.3.4.3 Interaction or Operational Perspective ……………………………… 117
5.3.4.4 Processing or Functional and Behavioral Perspective ……….. 117
5.4
Workflow Reference Model …………………………………………………………………………. 117
5.4.1 Workflow Process Definition Tool …………………………………………………… 118
5.4.2 Workflow Client Application……………………………………………………………121
x
Contents
5.5
5.4.3 Workflow Engine ……………………………………………………………………………..121
5.4.4 Invoked Application ………………………………………………………………………..121
5.4.5 Administration and Monitoring Tool ………………………………………………. 122
5.4.6 Workflow Reference Model Interfaces …………………………………………….. 122
Summary ……………………………………………………………………………………………………..124
Section II
Road to Enterprise Process Management Systems
6. Enterprise Modeling …………………………………………………………………………………………….127
6.1
Model …………………………………………………………………………………………………………..127
6.1.1 Types of Models ……………………………………………………………………………….129
6.2
Modeling ……………………………………………………………………………………………………..131
6.2.1 Modeling Ontology ………………………………………………………………………….131
6.3
Requirements of Modeling …………………………………………………………………………..133
6.3.1 Domain Models ……………………………………………………………………………….133
6.3.2 Use Case Models ……………………………………………………………………………..133
6.3.3 Class Models ……………………………………………………………………………………134
6.3.4 Interaction Models …………………………………………………………………………..135
6.3.5 State Models …………………………………………………………………………………….136
6.3.6 Activity Models ……………………………………………………………………………….137
6.4
Enterprise Modeling …………………………………………………………………………………….137
6.4.1 Enterprise Model Components ………………………………………………………..138
6.4.2 Enterprise Knowledge Development ……………………………………………….140
6.5
Process Modeling …………………………………………………………………………………………146
6.5.1 Semiotic Ladder ……………………………………………………………………………….147
6.5.2 Process Modeling Languages …………………………………………………………..149
6.5.2.1 Petri Nets …………………………………………………………………………..149
6.5.2.2 Event-Driven Process Chains ……………………………………………. 150
6.5.2.3 Yet Another Workflow Language………………………………………. 151
6.5.2.4 Unified Modeling Language Activity Diagrams ……………….. 152
6.5.3 Business Process Modeling Notation ……………………………………………….153
6.6
Process Description for Storing Business Process Models ……………………………. 153
6.7
Summary ……………………………………………………………………………………………………..157
7. Distributed Systems ……………………………………………………………………………………………..159
7.1
Distributed Systems……………………………………………………………………………………..159
7.1.1 Distributed Computing ……………………………………………………………………161
7.1.1.1 System Architectural Styles ……………………………………………….162
7.1.1.2 Software Architectural Styles……………………………………………..163
7.1.1.3 Technologies for Distributed Computing …………………………..168
7.2
Distributed Databases ………………………………………………………………………………….171
7.2.1 Characteristics of Distributed Databases ………………………………………….172
7.2.1.1 Transparency ……………………………………………………………………..172
7.2.1.2 Availability and Reliability ………………………………………………..173
7.2.1.3 Scalability and Partition Tolerance …………………………………….174
7.2.1.4 Autonomy………………………………………………………………………….174
7.2.2 Advantages and Disadvantages of Distributed Databases ……………….174
xi
Contents
7.2.3
7.2.4
7.3
Data Replication and Allocation ……………………………………………………… 178
Concurrency Control and Recovery in Distributed Databases ………… 179
7.2.4.1 Distributed Recovery …………………………………………………………180
7.2.5 Rules for Distributed Databases……………………………………………………….180
Summary ……………………………………………………………………………………………………..182
8. Service-Oriented Architecture………………………………………………………………………………183
8.1
Service-Oriented Architecture……………………………………………………………………… 183
8.1.1 Defining Service-Oriented Architecture…………………………………………… 184
8.1.1.1 Services ……………………………………………………………………………..185
8.2
Service-Oriented Architecture Benefits…………………………………………………………186
8.3
Characteristics of Service-Oriented Architecture …………………………………………. 187
8.4
Service-Oriented Architecture Applications ………………………………………………… 188
8.4.1 Rapid Application Integration…………………………………………………………. 189
8.4.2 Multichannel Access ………………………………………………………………………..189
8.4.3 Business Process Management …………………………………………………………190
8.5
Service-Oriented Architecture Ingredients ………………………………………………….. 190
8.5.1 Objects, Services, and Resources ……………………………………………………… 190
8.5.1.1 Objects ……………………………………………………………………………….190
8.5.1.2 Services ……………………………………………………………………………..191
8.5.1.3 Resources …………………………………………………………………………..191
8.5.2 Service-Oriented Architecture and Web Services …………………………….. 192
8.5.3 Service-Oriented Architecture and Representational State
Transfer-Ful Services ……………………………………………………………………….. 195
8.6
Enterprise Service Bus ………………………………………………………………………………….196
8.6.1 Characteristics of an Enterprise Service Bus Solution ………………………199
8.6.1.1 Key Capabilities of an Enterprise Service Bus ……………………200
8.6.1.2 Enterprise Service Bus Scalability ………………………………………203
8.6.1.3 Event-Driven Nature of Enterprise Service Buses ……………… 203
8.7
Summary ……………………………………………………………………………………………………..204
9. Cloud Computing …………………………………………………………………………………………………205
9.1
Cloud Definition ………………………………………………………………………………………….205
9.2
Cloud Characteristics …………………………………………………………………………………..207
9.2.1 Cloud Storage Infrastructure Requirements ……………………………………. 208
9.3
Cloud Delivery Models ………………………………………………………………………………..209
9.3.1 Infrastructure as a Service ……………………………………………………………….. 210
9.3.2 Platform as a Service ……………………………………………………………………….. 211
9.3.3 Software as a Service ………………………………………………………………………..212
9.4
Cloud Deployment Models ………………………………………………………………………….213
9.4.1 Private Clouds …………………………………………………………………………………213
9.4.2 Public Clouds …………………………………………………………………………………..213
9.4.3 Hybrid Clouds …………………………………………………………………………………214
9.4.4 Community Clouds………………………………………………………………………….214
9.5
Cloud Benefits ……………………………………………………………………………………………..214
9.6
Cloud Technologies ……………………………………………………………………………………..216
9.6.1 Virtualization …………………………………………………………………………………..217
9.6.1.1 Characteristics of a Virtualized Environment ……………………. 218
xii
Contents
9.6.2
9.7
9.8
Service-Oriented Computing ……………………………………………………..221
9.6.2.1 Advantages of Service-Oriented Architecture ……………… 222
9.6.2.2 Layers in Service-Oriented Architecture ……………………… 223
Business Processes with Service-Oriented Architecture ……………………………224
9.7.1
Process ……………………………………………………………………………………….225
9.7.2
Workflow ……………………………………………………………………………………226
9.7.3
Business Process Management …………………………………………………… 227
9.7.4
Business Processes via Web Services ………………………………………….. 228
9.7.4.1 Service Composition …………………………………………………….229
Summary ………………………………………………………………………………………………….230
Section III
Enterprise Process Management Systems
10. Business Process Management Systems ………………………………………………………………233
10.1
Process-Oriented Enterprise……………………………………………………………………..233
10.1.1 Value-Added Driven Enterprise …………………………………………………234
10.2
History of Business Process Management ………………………………………………..235
10.2.1 First-Wave Business Process Management—Process
Improvement (1970s–1980s) ……………………………………………………….235
10.2.2 Second-Wave Business Process Management—Process
Redesign and Reengineering (1990s) ………………………………………….236
10.2.3 Third-Wave Business Process Management—Processes
in Constant Change (2000s) ………………………………………………………..237
10.2.4 Fourth-Wave Business Process Management—Process-Based
Competitive Advantage (2010s) ………………………………………………….238
10.2.5 Fifth-Wave Business Process Management—Process-Driven
Strategy (2020s)…………………………………………………………………………..238
10.3
Business Process Life Cycle ……………………………………………………………………… 238
10.4
Concept of Business Process Management ………………………………………………. 242
10.4.1 Business Process ………………………………………………………………………… 243
10.5
Business Process Management ………………………………………………………………… 244
10.6
Management by Collaboration …………………………………………………………………246
10.7
Business Process Maturity Model …………………………………………………………….248
10.8
Business Process Management Systems …………………………………………………… 250
10.8.1 BPMS Products ………………………………………………………………………….. 251
10.9
Enterprise Process Management Systems ………………………………………………… 254
10.10
Summary ………………………………………………………………………………………………….256
11. Business Process Modeling and Notation ……………………………………………………………257
11.1
Business Process Modeling and Notation Core Elements ………………………… 257
11.1.1 Events…………………………………………………………………………………………260
11.1.2 Activities …………………………………………………………………………………….261
11.1.3 Subprocesses ………………………………………………………………………………261
11.1.4 Gateways ……………………………………………………………………………………262
11.1.5 Looping………………………………………………………………………………………263
11.1.6 Intermediate Events ……………………………………………………………………263
11.1.7 Event-Based Gateway…………………………………………………………………264
Contents
xiii
11.2
11.3
11.4
Exception Handling ……………………………………………………………………………………264
Transactions ……………………………………………………………………………………………….266
Sample Purchasing Scenario Represented in Business Process Modeling
and Notation ………………………………………………………………………………………………267
Characteristics of Business Process Modeling and Notation for Modeling
Software Engineering Processes ………………………………………………………………… 269
11.5.1 Business Process Modeling and Notation Strengths …………………….. 270
11.5.2 Business Process Modeling and Notation Weaknesses ………………… 270
11.5.3 Business Process Modeling and Notation Drawbacks…………………..271
Spreadsheet-Based Process Modeling………………………………………………………… 271
11.6.1 Process Model Transformations into Spreadsheets ………………………. 272
11.6.2 Process Model Transformations …………………………………………………… 273
11.6.3 Business Process Modeling and Notation Transformations …………. 274
Summary ……………………………………………………………………………………………………275
11.5
11.6
11.7
12. Development of Process-Centric Application Systems………………………………………..277
12.1 Deductive Databases ………………………………………………………………………………….277
12.1.1 Query Processing………………………………………………………………………….279
12.1.2 Update Processing………………………………………………………………………..280
12.2 Deductive Spreadsheet……………………………………………………………………………….281
12.2.1 Traditional Spreadsheet ……………………………………………………………….. 281
12.2.2 Logic Programming …………………………………………………………………….. 282
12.3 Spreadsheet Application Development Methodology ……………………………….. 283
12.3.1 Process Identification ……………………………………………………………………283
12.3.1.1 Process List …………………………………………………………………..284
12.3.1.2 Process Flow Identification …………………………………………..284
12.3.2 Process Modeling …………………………………………………………………………285
12.3.2.1 Activity Spreadsheet Development Part I ……………………. 285
12.3.2.2 Activity Spreadsheet Development Part II …………………… 289
12.3.3 Process Improvement and Innovation …………………………………………. 291
12.3.3.1 “As-Is” Process Model Analysis ……………………………………291
12.3.3.2 “To-Be” Model Creation ………………………………………………. 293
12.3.3.3 “To-Be” Process Model Analysis ………………………………….. 295
12.3.4 System Development ……………………………………………………………………295
12.3.4.1 Class Model ………………………………………………………………….295
12.3.4.2 System Design………………………………………………………………297
12.3.4.3 System Implementation………………………………………………..298
12.3.5 Maintenance …………………………………………………………………………………299
12.3.5.1 System Maintenance …………………………………………………….299
12.3.5.2 Process Maintenance …………………………………………………….300
12.4 Summary ……………………………………………………………………………………………………300
13. Engineering of Process-Centric Application Systems ………………………………………….303
13.1 Model-Driven Development ………………………………………………………………………303
13.1.1 Model-Driven Architecture ………………………………………………………….. 304
13.1.1.1 Model-Driven Architecture Support ……………………………. 307
13.1.1.2 Unified Modeling Language…………………………………………308
13.2 Process-Centric Applications …………………………………………………………………….. 311
xiv
Contents
13.3
13.4
13.5
Process-Centric Applications Architecture………………………………………………….312
13.3.1 Transforming a Process Model into an Executable Process ………….. 315
13.3.2 Process-Centric Applications Specifications………………………………….317
13.3.3 Process-Centric Applications Development …………………………………. 318
SAP Process Orchestration ………………………………………………………………………… 319
13.4.1 SAP Business Process Management …………………………………………….. 320
13.4.1.1 Business Process Modeling and Notation (BPMN 2.0) ….. 321
13.4.2 SAP Business Rules Management…………………………………………………324
13.4.2.1 Rules Composer……………………………………………………………324
13.4.2.2 Rules Manager ……………………………………………………………..325
13.4.2.3 Rules Engine…………………………………………………………………325
13.4.3 SAP Process Integration ……………………………………………………………….325
Summary ……………………………………………………………………………………………………326
Section IV
Enterprise Process Management Systems Applications
14. EPMS for Business Process Analysis ……………………………………………………………………329
14.1 Queuing Systems ……………………………………………………………………………………….330
14.1.1 Queuing Process ………………………………………………………………………….. 331
14.2 Queuing Models…………………………………………………………………………………………332
14.2.1 Model I: Pure Birth Model …………………………………………………………… 333
14.2.2 Model II: Pure Death Model ………………………………………………………… 333
14.2.3 Model III: Generalized Poisson Queuing Model …………………………..334
14.2.4 Single-Server Models ……………………………………………………………………335
14.2.4.1 Model IV (M/M/1): (GD/∞/∞) ……………………………………335
14.2.4.2 Model V (M/M/1): (GD/N/∞)…………………………………….336
14.2.5 Multiple-Server Models………………………………………………………………..337
14.2.5.1 Model VII (M/M/C): (GD/∞/∞) …………………………………337
14.2.5.2 Model VIII (M/M/C): (GD/N/∞)………………………………..338
14.3 Simulation ………………………………………………………………………………………………….339
14.3.1 Simulation Models ……………………………………………………………………….341
14.3.1.1 Discrete-Event Simulation ……………………………………………341
14.3.2 Simulation Procedure ………………………………………………………………….. 344
14.4 Process Analytics………………………………………………………………………………………..345
14.4.1 Quality Measurement ………………………………………………………………….. 345
14.4.2 Time Measurement……………………………………………………………………….346
14.4.3 Cost Measurement ………………………………………………………………………. 347
14.4.4 Flexibility Measurement ………………………………………………………………. 347
14.5 Summary ……………………………………………………………………………………………………347
15. EPMS for Business Process Improvement ……………………………………………………………349
15.1 Business Process Reengineering …………………………………………………………………349
15.2 Enterprise Business Process Redesign or Reengineering Methodology ………352
15.2.1 Strategic Planning for Enterprise Business Process
Reengineering …………………………………………………………………………….353
15.2.1.1 Identifying the Business Processes in the Company ……..354
15.2.2 Selecting Business Processes for Business Process
Reengineering…………………………………………………………………………….354
Contents
15.3
15.4
15.5
xv
15.2.3 Creating Process Maps ………………………………………………………………… 355
15.2.4 Analyzing Processes for Breakthrough Improvements ………………… 356
15.2.5 Innovative Breakthrough Improvement in Processes …………………… 357
15.2.6 Implementing Designed Processes ………………………………………………. 357
15.2.7 Measuring the Performance of Designed Processes …………………….. 358
Enterprise-Wide Continuous Improvement Programs ………………………………. 359
15.3.1 Lean System …………………………………………………………………………………359
15.3.2 Six Sigma ……………………………………………………………………………………..363
15.3.3 Theory of Constraints …………………………………………………………………..366
15.3.3.1 Theory of Constraints Tools …………………………………………. 368
Time-Based Competition ……………………………………………………………………………369
15.4.1 Activity-Based Customer Responsiveness ……………………………………370
15.4.2 Activity-Based Costing …………………………………………………………………371
15.4.3 Time-Driven Activity-Based Costing …………………………………………… 373
15.4.4 Responsive Activity Pricing …………………………………………………………. 376
Summary ……………………………………………………………………………………………………376
16. EPMS for Customer Conversations ………………………………………………………………………377
16.1 Business Processes and Human Interactions ………………………………………………377
16.1.1 Human Interaction Management………………………………………………….378
16.1.2 Human Interaction Management System ……………………………………..379
16.1.3 Comparing Human Interaction Management and Business
Process Management ……………………………………………………………………380
16.1.4 HumanEdj Human Interaction Management Systems ………………….381
16.2
Interactions and the Quality of Experience…………………………………………………382
16.2.1 Factors Influencing Quality of Experience ……………………………………384
16.2.2 Features of Quality of Experience …………………………………………………388
16.2.2.1 Feature Levels ………………………………………………………………389
16.3 Customer Interaction Systems ……………………………………………………………………390
16.3.1 Spoken Language Recognition ……………………………………………………..391
16.3.2 Spoken Language Understanding…………………………………………………392
16.3.3 Dialog Management ……………………………………………………………………..393
16.3.4 Natural Language Generation ………………………………………………………394
16.3.5 Text-to-Speech Synthesis ………………………………………………………………396
16.4 Implementing Customer Interaction Systems …………………………………………….398
16.5 Summary ……………………………………………………………………………………………………398
Epilogue: Digital Transformations of Enterprises ……………………………………………………… 399
Appendix A: Business Process Execution Language …………………………………………………..407
Appendix B: Interaction Architectures ……………………………………………………………………….413
Bibliography ……………………………………………………………………………………………………………….419
Index ……………………………………………………………………………………………………………………………425
List of Figures
Figure 1.1
Comparison of efforts expended during ERP and traditional software
development life cycles ……………………………………………………………………………….. 9
Figure 1.2
Information and material flows in (a) a functional business model and
(b) a business process model ……………………………………………………………………… 15
Figure 2.1
Process performance measurement systems ……………………………………………… 40
Figure 2.2
Performance pyramid ………………………………………………………………………………..43
Figure 2.3
Framework for constructing a process-oriented performance
measurement system …………………………………………………………………………………44
Figure 3.1
Organization architecture …………………………………………………………………………. 60
Figure 3.2
Abstraction granularity levels and the corresponding design concerns …….63
Figure 4.1
Charts views versus the applicable perspectives ………………………………………..77
Figure 4.2 Development of EA frameworks ……………………………………………………………….. 89
Figure 4.3
Zachman EA framework ……………………………………………………………………………90
Figure 4.4 TOGAF ADM ……………………………………………………………………………………………. 94
Figure 5.1
The core view …………………………………………………………………………………………… 107
Figure 5.2
(a) The control-flow view; (b) the collaboration view ……………………………….. 108
Figure 5.3
(a) The information view; (b) the human view …………………………………………. 111
Figure 5.4
WRM components and interfaces ……………………………………………………………. 118
Figure 6.1
Classification of models …………………………………………………………………………… 129
Figure 6.2
Ontology for a system. (a) Ontology from the forward engineering
perspective and (b) ontology from the reverse engineering perspective …… 132
Figure 6.3
A state machine ………………………………………………………………………………………. 136
Figure 6.4
Relationship between enterprise knowledge development submodels ……. 140
Figure 6.5
The Goal model ……………………………………………………………………………………….. 142
Figure 6.6
The Process model …………………………………………………………………………………… 144
Figure 6.7
The Business Rule model …………………………………………………………………………. 144
Figure 6.8
Meta-levels as defined in the Object Management Group’s MOF …………….. 149
Figure 6.9
Generic metamodel for business processes ……………………………………………… 155
Figure 8.1
Web services usage model ……………………………………………………………………….. 194
Figure 8.2
ESB reducing connection complexity ………………………………………………………. 197
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List of Figures
Figure 8.3
ESB linking disparate systems and computing environments ……………….. 198
Figure 9.1
The cloud reference model …………………………………………………………………….. 210
Figure 9.2
Portfolio of services for the three cloud delivery models ……………………….. 211
Figure 10.1
Business process life cycle ……………………………………………………………………… 238
Figure 10.2 Schematic of a BPMS ……………………………………………………………………………… 240
Figure 10.3
Levels of process maturity …………………………………………………………………….. 249
Figure 10.4 Radar chart with the evaluation results of the three BPM suites ……………. 251
Figure 10.5 Oracle BPM components and application development life cycle …………… 253
Figure 10.6
IBM® business process manager …………………………………………………………….254
Figure 11.1
Sample purchase scenario model using BPMN ……………………………………… 268
Figure 11.2
Modified sample purchase scenario model using BPMN ………………………. 269
Figure 12.1
Process spreadsheet ……………………………………………………………………………….284
Figure 12.2
Activity spreadsheet ……………………………………………………………………………… 289
Figure 13.1
Spectrum of models ……………………………………………………………………………….304
Figure 13.2
Layers and implementation of MDA ………………………………………………………305
Figure 13.3
UML diagram hierarchy …………………………………………………………………………309
Figure 13.4
Architecture of a typical composite application …………………………………….. 311
Figure 13.5
Architecture of a process-centric application ………………………………………… 313
Figure 13.6
Order process with separation of layers for a process-centric
application …………………………………………………………………………………………….. 316
Figure 13.7
Order process ………………………………………………………………………………………… 316
Figure 14.1
Total cost of queue operations versus process capacity ………………………….. 331
Figure 14.2 Events timeline for a single server ………………………………………………………….342
Figure 15.1
A cycle of enterprise BPR methodology …………………………………………………. 352
Figure 15.2 The alternate activities of business visioning and BPR ………………………….. 353
Figure 15.3
DOR, product planning techniques, and operating philosophies ………….. 360
Figure 15.4
DOR, product flow decisions, and operating philosophies ……………………. 360
Figure 15.5 Lean system improvement cycle ……………………………………………………………. 362
Figure 16.1
An interactivity constituting a request–response pattern ………………………. 382
Figure 16.2
Taxonomy of influence factors, interaction performance aspects,
and quality features……………………………………………………………………………….. 383
Figure 16.3
Customer conversation systems …………………………………………………………….. 391
List of Figures
xix
Figure E.1
Business model canvas ……………………………………………………………………………. 401
Figure E.2
Design science research methodology ……………………………………………………..404
Figure E.3
Enhanced business model design ……………………………………………………………405
Figure B.1
Presentation–abstraction–control (PAC) architecture ………………………………. 414
Figure B.2 Model−view−controller (MVC) architecture……………………………………………. 415
Figure B.3
Data context interaction (DCI) architecture …………………………………………….. 416
Figure B.4
Micro-service architecture (MSA)……………………………………………………………. 417
List of Tables
Table 1.1
Evolution of enterprise systems (ESs) …………………………………………………………..2
Table 1.2
Four layers of EES ………………………………………………………………………………………..6
Table 1.3
Timeline of performance improvement movements in the
twentieth century………………………………………………………………………………………. 19
Table 3.1
Complexity of problems across dimensions of systems decision
problems ……………………………………………………………………………………………………. 53
Table 3.2
Comparison of architectural and detailed designs ……………………………………. 55
Table 4.1
Views versus the applicable perspectives …………………………………………………..77
Table 4.2
Perspectives described in detail ………………………………………………………………… 78
Table 5.1
Comparison of hierarchical and process-oriented organizations …………….. 102
Table 6.1
Matching concepts of generic metamodel and process modeling
languages ………………………………………………………………………………………………… 156
Table 9.1
Key attributes of cloud computing …………………………………………………………… 206
Table 9.2
Key attributes of cloud services ……………………………………………………………….. 207
Table 9.3
Comparison of cloud delivery models……………………………………………………… 213
Table 11.1
Flow objects……………………………………………………………………………………………… 258
Table 11.2
Connecting objects: (a) basic types, (b) swim-lane object types,
and (c) artefact types ……………………………………………………………………………….. 259
Table 11.3
Looping …………………………………………………………………………………………………… 263
Table 11.4
Transformability of BPMN elements and relations ………………………………….. 274
Table 15.1
Tools, techniques, and benefits for radical or continuous
improvement …………………………………………………………………………………………… 358
Table 15.2 Advanced techniques for radical or continuous improvement ………………… 359
Table 15.3
Conventional ABC versus TDABC …………………………………………………………… 374
Table 16.1
Overview and examples of potential influence factor ………………………………. 385
Table E.1
Comparison of behavioral and design science research strategies …………… 403
xxi
Foreword
The success of an enterprise depends on the ability to support business processes well.
However, many organizations struggle to transition from data-centric enterprise systems
to process-centric enterprise systems. In fact, this is a much harder problem than what
I expected when I wrote my first book on workflow management (WFM) in the 1990s.
Therefore, I am glad to write the Foreword for the present extensive reference book on
enterprise process management systems. The book focuses on Business Process Modeling
and Notation (BPMN), which has become the industry standard in process modeling.
It is important to note that the idea to make information systems process-centric is not
new. In the 1970s, people like Skip Ellis, Anatol Holt, and Michael Zisman had already
worked on so-called office information systems driven by explicit process models. Ellis
et al. developed prototype systems such as Officetalk-Zero and Officetalk-D at Xerox PARC
in the late 1970s. These systems used variants of Petri nets to model processes. Another
example from the same period is the System for Computerizing of Office Processes
(SCOOP), developed by Michael Zisman. SCOOP also used Petri nets to represent business
processes. Officetalk, SCOOP, and other office information systems were created in a time
in which workers were typically not connected to a network. Consequently, these systems
were not widely adopted. Nevertheless, it is good to realize that the vision still driving
today’s business process management (BPM) systems was already present in the late 1970s.
These office information systems evolved into WFM systems in the 1990s. The early
WFM systems focused too much on automation and did not acknowledge the management aspects and the need for flexibility. These were followed by BPM systems that
appeared around the turn of the century. These systems had a broader scope as compared
with WFM technology, covering from process automation and process analysis to operations management and the organization of work. The trend to provide better management
support is still ongoing in current systems. Over time, all systems started to use BPMN
or variants of BPMN. This book on enterprise process management systems provides a
detailed introduction to this notation and presents details on the different ways to realize
such process-centric systems.
Looking to the future, I believe that the interplay between process management and
data science will become of eminent importance. My new research group at RWTH
Aachen University in Aachen, Germany is called Process and Data Science. We aim to
combine process centricity with an array of data science techniques. Process mining is one
of the key technologies we work on, and this is also mentioned in this book. Process mining aims to discover, monitor, and improve real processes by extracting knowledge from
event logs readily available in today’s information systems. The starting point for process
mining is an event log. Event data can be used to conduct three types of process mining: process discovery (finding out what is really happing in the process and representing
this as a process model ready for analysis); conformance checking (understanding where
and why processes deviate and whether these deviations are harmful); and enhancement
(extending models with performance and conformance information and generating process improvement ideas). Interestingly, process mining (as well as other data-driven BPM
technologies) will help to improve collaboration between information technology specialists, management, domain experts, and workers. At the moment that the real processes are
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Foreword
properly visualized, discussion can become more focused and fact-driven. Moreover, process mining supports digital transformation and the further digitalization of enterprises.
I hope you will enjoy reading this book by Vivek Kale. It combines business aspects with
technology trends and pointers to methods. Organizations should use the present book to
make their enterprise architecture more process-centric and to prepare for a wave of data
science-enabled business improvement approaches.
Wil van der Aalst
RWTH Aachen University
Prof.dr.ir. Wil van der Aalst is a full professor at RWTH Aachen University who leads the
Process and Data Science group. He is also part-time affiliated with the Technische Universiteit
Eindhoven (TU/e). Until December 2017, he was the scientific director of the Data Science Center
Eindhoven (DSC/e) and led the Architecture of Information Systems group at TU/e. His research
interests include process mining, Petri nets, BPM, workflow management, process modeling,
and process analysis. van der Aalst has published more than 200 journal papers, 20 books (as an
author or editor), 450 refereed conference/workshop publications, and 65 book chapters. Many of
his papers are highly cited (he is one of the most cited computer scientists in the world and has an
H-index of 138 according to Google Scholar, with more than 85,000 citations) and his ideas have
influenced researchers, software developers, and standardization committees working on process
support. van der Aalst received honorary degrees from the Moscow Higher School of Economics
(Prof. h.c.), Tsinghua University, and Hasselt University (Dr. h.c.). He is additionally an elected
member of the Royal Netherlands Academy of Arts and Sciences, the Royal Holland Society of
Sciences and Humanities, and the Academy of Europe. In 2017, he was awarded a Humboldt
Professorship, Germany’s most valuable research award (equivalent to five million euros).
Preface
An enterprise is not only expected to be effective and efficient but should also be able to
adapt to the frequent changes in the market environment driven by technology, regulation, and competition—in other words, it should be agile. Enterprise agility has become
even more important in these times of globalization, particularly in periods of continuous
organizational change that are often caused by an increasing pace of innovation, collaboration with other organizations, new challenges in the market, mergers and acquisitions,
societal changes, and/or technology advancements. The enterprises that can best respond
to the fast- and frequently-changing markets will have better competitive advantages than
those that fail to sustain the pace dictated by the process of globalization. This can be realized through enterprises acquiring better control and efficiency in their ability to manage
the changes in their enterprise processes.
In the past few decades, all of us have witnessed a procession of different methods, tools,
and techniques emanating from the information technology (IT) industry that have had a
tremendous impact on the very nature and operations of enterprises. However, in midst of
all this turmoil, one fact has remained constant: the existence of an abysmally low number
of successfully implemented applications. The primary reason has been that the applications do not meet the expectations and needs of the business area(s) for which they were
built, typically because of inadequate user involvement in the early phases of system analysis. The challenge identified was defining the system requirements correctly early on in the
delivery process so as to minimize design, construction, and postimplementation repair.
One of the root causes identified for these problems was the inherent weakness of the
phase in which requirements are captured and analyzed. This phase never seemed to
get the requirements of the enterprise correctly, clearly, consistently, and completely. As
a result, finished projects never seemed to deliver the promised functionality and had to
be recycled for more analysis and development. Maintenance and enhancements were
called for indefinitely and, thus, became harder to achieve as time passed by. Furthermore,
because individuals change midway both on the development and user sides, system
requirements also change and the whole process continues indefinitely. More specifically,
there is a fundamental disconnect between the business and the IT/information systems
people. Notwithstanding how much both of the parties try to bridge the gap, there is a
fundamental divide between the perception of a business user and what the systems staff
perceive—in effect, both classes of people speak different languages. Even when the systems personnel try to increase precision by using specialized methods and specification
tools, the end-users are often never able to ratify the documented requirements completely
because of unfamiliarity or discomfort with these very tools.
As organizational and environmental conditions become more complex, globalized,
and competitive, data alone cannot provide a framework for dealing effectively with the
issues of performance improvement, capability development, and adaptation to the changing environment. Conventional systems primarily store only snapshots of discrete groups
of data at predefined or configured instants of time, along a business process within an
organization. This predominating data-oriented view of the enterprise as implemented by
traditional IT systems is the most unnatural and alien way of looking at any area of human
activity. The stability of the data models, as canonized in the conventional IT paradigm,
might have been advantageous for the systems personnel but, for this same reason, it is
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Preface
unusable (and, hence, unacceptable) to the business stakeholders within the organizations.
Traditional systems could never really resolve the simple dichotomy of the fact that systems
based on exploiting the unchanging data models, although easy to maintain, can never
really describe the essentially dynamic nature of businesses. Business processes (and rules)
were the other equally important portions of the reality that had been ignored by the traditional information systems. Unlike for the data-oriented view of the traditional systems,
business users feel more comfortable with the process-oriented (and rules-oriented) view
of the enterprise. They can not only readily identify with requirements captured in terms
of processes (and rules) but can also feel more comfortable in confirming the veracity of the
same. Service-oriented architecture (SOA) provides an opportunity for IT and the business
to communicate and interact with each other at a highly efficient and equally understood
level. This common, equally understood language is the language of business processes or
enterprise processes in the form of Business Process Modeling and Notation (BPMN).
IT can fulfil its role as a strategic differentiator only if it can provide enterprises with a
mechanism to prompt a sustainable competitive advantage—that is, the ability to change
business processes in sync with changes in the business environment and at optimum
costs. BPM solutions fundamentally are about accommodating change—accommodating
changing business requirements that in turn require changing process logic, as well as
changes in the system landscape brought about by mergers; system consolidations; and
new technology, such as cloud computing. Faced with increasing demand from the business to deliver change faster, IT has long pinned its hopes on SOA’s promise of service
reuse. The services support a layer of agile and flexible business processes that can easily
be changed to provide new products and services to keep ahead of the competition. These
will be built on a foundation of SOA that exposes the fundamental business capabilities as
flexible, reusable services. By packaging system functionality in reusable units with standard interfaces, IT could become more agile. Section II discusses SOA, which, along with
the constituting services, is the foundation of modern EPMS solutions.
Typically, SOA is inherently bottom-up, driven by the details of the underlying systems. The SOA architect tries to define service interfaces that will maximize reuse of
system functionality. In reality, these services can rarely be simply snapped together
to create BPM solutions because they rarely match up with the business requirements. Ideally, the process-driven application logic should not need to change to enable
reuse or to accommodate changes in the underlying system landscape. This necessitates a
top-down approach in which the business dictates and determines the required interfaces.
What Makes This Book Different?
The concept of processes is not new; what is unique in this book is the process-centric
paradigm being proposed to replace the traditional data-centric paradigm for Enterprise
Systems. Not being the normal book focused on a new technology, technique or methodology, this text necessarily takes an expansive and comprehensive look at end-to-end aspects
of the envisaged process centric paradigm.
This book interprets the 2000s enterprise process management systems (EPMS) from the
point of view of business as well as technology. It unravels the mystery of EPMS environments and applications as well as their power and potential to transform the operating
Preface
xxvii
contexts of business enterprises. Customary discussions on EPMS, do not address the key
differentiator of these environments and applications from the earlier enterprise applications like enterprise resource planning (ERP), CRM, SCM, and so on: instead, EPMS for
the first time, is able to treat enterprise-level services not merely as reusable discrete standalone services, but as Internet-locatable, top down, compossible, and repackageable building blocks for dynamically generating real-life enterprise business processes.
This book proposes that instead of the customary data item in the traditional IT systems, the
business process should become the smallest identifiable and addressable entity within any
enterprise system. In other words, not the isolated data items or attributes of the entities of
the traditional IT systems, but rather, it should be the processes (that access, create or modify
the data item or attribute) that should become the focus of enterprise systems. Enterprise systems should be reengineered from the present data-centric architecture to a process-centric
architecture. Hence, the reason to term the reengineered systems with a different name,
namely, Enterprise Process Management Systems (EPMS). BPMN can not only capture business requirements: it can also provide the backbone of the actual solution implementation.
Thus, the same diagram prepared by the business analyst to describe the business’s desired
“to-be” process can be used to automate the execution of that process on a modern process
engine. This is achieved via a new process-centric architecture that preserves simplicity and
stability in the business-oriented process-centric application layer while maximizing flexibility and agility in the underlying service contract implementation layer and vice-a-versa. This
is achieved through a service contract implementation layer interposed between the processcentric application and the system landscape. The process-centric application layer never
interacts directly with the underlying system landscape; instead, it always goes through
the service contract implementation layer. The process-centric application is unaffected by
changes in the underlying system landscape—what changes is only the logic of the service
contract implementation layer. BPMN is used for both the process-centric application layer
and the service contract implementation layer; in particular, to achieve these objectives, the
latter is broken out into a stateful integration process and a stateless messaging process.
Here are the characteristic features of my book:
1. It enables readers to obtain a clear understanding of what EPMS really means and
what it might do for them. The book presents process-centric EPMS as a better
alternative to the traditional enterprise systems. It explains the context and demonstrates how the whole ecosystem works together to solve the main objectives of
enhancing enterprise agility and flexibility, and sharpens the strategic focus.
2. It gives an introduction to the Enterprise Process Management Systems (EPMS)
solutions that enable an agile enterprise.
3. Describes distributed systems and Service Oriented Architecture (SOA) that
paved the road to Enterprise Process Management Systems (EPMS).
4. It addresses the requirements for agility by ensuring a seamless methodological
path from process requirements modeling to execution and back (to enable process improvements).
5. It addresses the key differentiator of EPMS environments; namely, that EPMS, for
the first time, is able to treat enterprise-level processes not merely as discrete standalone processes but rather as Internet-locatable, top down, compossible, and repackageable building blocks for dynamically generating real-life business processes.
6. It introduces customer conversation systems that can enable sales closures through
customer interactions rather than merely registering customer orders.
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Preface
I have always been fascinated with the simplicity and facility with which end-users take
to spreadsheet-based applications. There has always been a need for a spreadsheet-driven
development methodology that would smoothly transition from requirements to implementation (and back). Chapter 12 presents the spreadsheet-driven spreadsheeter application
development methodology for the development of processcentric application systems. This
has been adopted from T. Damij (2001) and N. Damij and T. Damij (2014). I wanted to write a
book presenting business process management and enterprise process management systems
from this novel perspective; the outcome is the book that you are reading now. Thank you!
Finally, a remark on what this book is not about: although this book alludes to the current
heightened priority on digital transformation of enterprises as its primary motivation, this
is not a book on digital transformation of enterprises. Since this is a paradigm-changing
book, hence, that itself is the focus of the book–the book cannot address everything within
the two covers of a single book; it neither provides a framework nor a methodology on
how to undertake a digital transformation initiative. But, yes, with this book we are fairly
on the way —in effect, this book addresses the part on digital transformation of business
processes. The journey started with an earlier published book Agile Network Businesses
which is actually a book on network and e-Business business models. Author’s last book
Creating Smart Enterprises: Leveraging Cloud, Big Data, Web, Social Media, Mobile and IoT
Technologies details the various technologies that are relevant for a digital transformation
initiative. The author would need another book project to discuss the aspects of digital
transformation of enterprise architectures (EA) before we are ready to tackle the subject
proper of the digital transformation of enterprises. Epilogue gives an overview of the
salient aspects of a digital transformation of enterprises initiative.
How Is This Book Organized?
Chapter 1 introduces the concept of enterprise systems and, in particular, ERP. After introducing the concept of ERP, the chapter highlights the tendency of ERP systems to reinforce
the traditional silo-oriented operations of organizations. In the end, the chapter describes
the importance of business processes in enabling flexible and adaptable enterprise-wide
cross-functional integration.
Chapter 2 describes the framework for measuring business process performance in
terms of the dimensions of timeliness, cost, and quality.
Section I: Genesis of Enterprise Process Management Systems
Chapter 3 reviews the basic concepts of systems thinking, systems science, systems engineering, and systems architecting. Knowing this basic information about systems helps in
understanding the origin of the significance of enterprise architecture and the constituting business architecture, information architecture, application architecture, and technical
architecture. This also provides the context for the significance of business processes in
contemporary enterprises.
Chapter 4 presents enterprise architecture as a well defined practice for conducting
enterprise analysis, design, planning, and implementation, using a holistic approach
at all times, for the successful development and execution of enterprise strategy. This
Preface
xxix
chapter describes the viewpoints, views, and perspectives that enable an enterprise
architecture.
Chapter 5 describes the process views and perspectives that enable an enterprise process
architecture. Analogous to the enterprise architecture frameworks for enterprise architecture described in Chapter 4, this chapter describes the workflow reference model (WfMS)
as the reference process architecture for the enterprise process architecture.
Section II: Road to Enterprise Process Management Systems
Chapter 6 presents the basic concepts of modeling, enterprise modeling, and process
modeling. The chapter presents several frequently used business process modeling languages including Petri Nets, Event-driven Process Chains (EPC), Yet Another Workflow
Language, Unified Modeling Language activity diagrams, and BPMN.
Chapter 7 describes the characteristics of distributed systems and introduces distributed
computing as a foundation for better understanding of cloud-enabled business processes.
Chapter 8 presents the definition and characteristics of SOAs, along with alternate
approaches to realizing the vision of service-oriented systems, namely, Web services and
Representational State Transfer services. One of the great potential advantages of solutions
created using an SOA with Simple Object Access Protocol (SOAP) or Representational State
Transfer (RESTful) Web services is that they can help resolve this perennial problem by
providing better separation of concerns between business analysts and service developers. Analysts can take responsibility for defining how services fit together to implement
business processes, while the service developers can take responsibility for implementing
services that meet business requirements.
Integrating existing and new applications using an SOA involves defining the basic Web
service interoperability layer to bridge features and functions used in current applications such as security, reliability, transactions, metadata management, and orchestration;
it also involves the ability to define automated business process execution flows across the
Web services after an SOA is in place. An SOA with Web services enables the development of services that encapsulate business functions and that are easily accessible from
any other service; composite services allow for a wide range of options for combining Web
services and creating new business processes and, hence, new application functionality.
Chapter 9 describes cloud computing’s definition, presents the cloud delivery and
deployment models, and highlights its benefits for enterprises. It highlights the primary
challenges faced during provisioning of cloud services—namely, scalability, multi-tenancy,
and availability. More importantly, the chapter leverages SOA to explain the cloud-based
realization of business processes in terms of Web services.
Section III: Enterprise Process Management Systems
Distinguishing between BPM as a business program and BPMS as its subset realization into
a software application, Chapter 10 first introduces the concept of BPM and its characteristics. It explains the concept of BPMS and its variation of enterprise process management
systems being brought into focus in this book. In contrast to BPMS that reflect the “data
item”-driven, reusability-focused bottom-up stance of the traditional IT view of the enterprise, enterprise process management systems embody the “business process”-driven,
requirements-focused top-down stance of the information systems view of the enterprise.
xxx
Preface
EPMS promotes a world-view of process-driven or process-centric systems supported by
a portfolio of systems like process bases, process warehouses, process intelligence, and
process analytics. This book is a small step or at least an expression of need in that direction.
Chapter 11 describes BPMN 2.0, which is a graphical notation for modeling business
processes. Using BPMN, business analysts can describe organizational processes in a
way that can be understood by developers and system integrators, and that can serve as
a blueprint for implementing the services and orchestrations required to support those
processes. BPMN standardizes the notation used by business experts on the one hand and
IT specialists on the other, thus finally bridging the gap between them.
Consequently, there is a need for a development methodology that would smoothly transition from requirements to implementation. Chapter 12 presents the “business process”driven (or process-centric), requirements-focused, top-down-stanced spreadsheet-driven
spreadsheet application development methodology for the development of process-centric
application systems.
Chapter 13 discusses how BPMN 2.0 can not only capture business requirements but
also provide the backbone of the actual solution implementation. The same diagram prepared by the business analyst to describe the business’s desired to-be process can be used
to automate the execution of that process on a modern process engine. The chapter also
describes SAP Process Orchestration to give a practical context to the discussion presented
in this chapter. This overview includes descriptions of SAP Business Process Management
for addressing business process management, SAP Business Rules Management to address
business rules management, and SAP Process Integration* for addressing process integration management.
Section IV: Enterprise Process Management Systems Applications
Chapter 14 explains the rationale for modeling business processes with queuing theory. In
business processes, each activity of the process is performed by a resource (either human
or machine); thus, if the resource is busy when the job arrives, then the job will wait in a
queue until the resource becomes available. The chapter also introduces simulation as a
technique that enables one to define and experiment with the imitation of the behavior of
a real system in order to analyze its functionality and performance in greater detail.
Chapter 15 focuses on process improvement programs ranging from disruptive to continuous improvement programs: the first corresponds to business process reengineering
programs, while the latter corresponds to programs like lean, Six Sigma and Theory of
Constraints. The last part of the chapter focuses on the basic principle of time-based competition by discussing activity-based costing and comparing it with the more advanced
concept of time-driven, activity-based costing.
Chapter 16 introduces the concept of human interaction management and compares its
efficacy with BPM. It also presents the components of an effective customer interaction
system—namely, automatic speech recognition, spoken language understanding, dialog
management, natural language generation, and text-to-speech synthesis.
The Epilogue on digital transformation of enterprises highlights the real importance of business processes in the current context of heightened priority on digital transformation of
enterprises. Conceiving the roadmap to realize a digitally transformed enterprise via the
business model innovation becomes amenable only by adopting the process centric view of
*
SAP SE, Walldorf, Germany
Preface
xxxi
the enterprise—from the conventional data-centric view this would be an un-surmountable
problem akin to hitting a brick wall at the Ms. Winchester’s mansion.
Appendices I and II present an introduction to Business Process Execution Language
and interaction architectures, respectively.
Who Should Read This Book?
All stakeholders of a BPM or EPMS project can read this book.
All readers who are involved with any aspect of a BPM or EPMS project will profit by
using this book as a roadmap to make a more meaningful contribution to the success of
their BPM or EPMS project.
The following is the minimal recommendations of tracks of chapters that should be read
by different categories of stakeholders:
• Executives and business managers should read Chapters 1 through 10 and 14
through 16.
• Business analysts, enterprise architects and solution architects should read
Chapters 1 through 16.
• Operational managers should read Chapters 1 through 11 and 14 through 16.
• Project managers and module leaders should read Chapters 1 through 15.
• Technical managers should read Chapters 1 through 16.
• Professionals interested in BPM should read Chapters 1 through 6 and 10 through 16.
• Students of computer courses should read Chapters 1, 3 through 13 and 16.
• Students of management courses should read Chapters 1 through 6 and 10 through 16.
• General readers interested in the phenomenon of BPM should read Chapters 1
through 10 and 14 through 16.
Vivek Kale
Mumbai, India
Acknowledgments
I would like to thank all those who have helped me with their clarifications, criticisms,
and valuable information during the writing of this book; who were patient enough to
read the entire or parts of the manuscript; and who made many valuable suggestions.
I would like to thank Yatish Wasnik and Nitin Kadam for their comments and feedback
on the book. I am thankful to Prof. dr. ir. Hajo Reijers, Prof. Dr. Jan Mendling, Dr. Paul
Harmon and Dr. Mathias Weske for giving feedback on portions of the book. I am especially thankful to Prof.dr.ir. Wil van der Aalst for his feedback and writing the Foreword
to the book.
In the beginning, I did not fully understand the meaning of “my wife being an inspiration or a muse.” Eventually, I came to understand the phrase when the supreme irony
dawned onto me: when Girija is away, I cannot work but, when she is there, I do not have
time for her because—you guessed it right—I am too busy with my work. To say that the
situation is patently unfair to her would be a gargantuan understatement. This or any
other of my books simply would not exist without her help and support, and words alone
cannot express my gratitude to her. I have no words to mention the support, sufferings,
and sacrifice of my wife Girija and our beloved daughters Tayana and Atmaja. I am hugely
indebted to them for their patience and grace.
Vivek Kale
Mumbai, India
xxxiii
Prologue
When Changing the Map Changes the Territory!
The concept of processes is not new; what is unique in this book is the process-centric
paradigm being proposed to replace the traditional data-centric paradigm for enterprise
systems. The traditional paradigm is covered in several publications including M. Weske
(2012); A. H. M. ter Hofstede, W. M. P. van der Aalst, M. Adams, and N. Russell (Eds.) (2010);
Jan vom Brocke and M. Rosemann (Eds.) (2014); W. M. P. van der Aalst and van Hee (2002);
M. Reichert and B. Weber (2012); and M. Dumas, M. La Rosa, J. Mendling, and H. Reijers
(2013). Though there may seem to be a lot of apparent commonality between these and
the present book, the context is quite different. This book primarily focuses on exploring
various aspects of the process-oriented paradigm as an alternative to the traditional dataoriented paradigm.
As it is not a typical publication focused on a new technology, technique, or methodology, this book necessarily takes an expansive and comprehensive look at end-to-end
aspects of the envisaged process-centric paradigm.
Distinguishing between business process management (BPM) as a business program
and BPM systems (BPMS) as its subset realization into a software application, Chapter 10
first introduces the concept of BPM and its characteristics. It explains the concept of BPMS
and its variation of enterprise process management systems (EPMS) being brought into
focus in this book. In contrast to BPMS, which reflect the “data item”-driven, reusabilityfocused, bottom-up stance of the traditional information technology (IT)-focused view of
the enterprise, EPMS embody a “business process”-driven, requirements-focused, topdown stance of the information systems view of the enterprise. EPMS promote a worldview of process-driven or process-centric systems supported by a portfolio of systems like
process bases, process warehouses, process intelligence, and process analytics. This book
is a small step—or at least an expression of the need to move—in that direction.
As a preparatory step to EPMS, Chapter 5 describes the process views and perspectives
that enable an enterprise process architecture. Analogous to the enterprise architecture
frameworks for enterprise architecture described in Chapter 4, this chapter describes the
workflow reference model as the reference process architecture for the enterprise process
architecture.
This book proposes that instead of the customary data item in the traditional IT systems,
the business process should become the smallest identifiable and addressable entity within
any enterprise system. In other words, rather than the isolated data items or attributes
of the entities of the traditional IT systems, it should be the processes (that access, create,
or modify the data item or attribute) that should become the focus of enterprise systems.
Enterprise systems should be reengineered from the present data-centric architecture to a
process-centric architecture—hence, the reason to term the reengineered systems with a
different term, namely, EPMS.
xxxv
xxxvi
Prologue
This is not as far-fetched as it may seem at the first sight. SAP SE’s (Walldorf,
Germany) move to introduce SAP S/4HANA can be read as a step back from the
data-centric world view. This can be repurposed to enable SAP Process Orchestration
(SAP PO) (along with the Eclipse-based Developer Studio) to become the crossdevelopment workbench for S/4HANA to reengineer the data-centric functionality populating the traditional modules of FI-CO, SD, MM, PP, QM, and so on to a process-centric
functionality.
In the earlier “data-driven” paradigm, batch mode systems did not create enough
transaction data for justifying data mining or analytics. Even online systems including
enterprise resource planning systems front-ended by functional menus did not generate
enough data; correspondingly, the “reporting” was deemed to be good enough—it did not
generate the need for analytics. Data mining/analytics took off only after the advent of Big
Data caused by Web-based applications like social media and mobile.
In the “process-driven” paradigm focused on in this book, online enterprise systems
front-ended by functional menus did not create enough process data for justifying process
mining or analytics. This will happen only when enterprise systems are front-ended by
process menus for which the enterprise system must be reengineered internally like the
process-centric systems mentioned earlier.
The real significance of business processes can be understood in the context of current
heightened priority on digital transformation of enterprises. Conceiving the roadmap to
realize a digitally transformed enterprise via business model innovation becomes amenable only from the process view of the enterprise—from the conventional data view, this
would become an unaddressable problem.
With the advent of SMACT (social networks, mobile computing, analytics, cloud
computing and Internet of Things), future IS/IT systems would need bigger portions
of design thinking especially at the requirements stage. This book is also an exercise
in an alternate design.
Author
Vivek Kale has more than two decades of professional IT experience during which he
has handled and consulted on various aspects of enterprise-wide information modeling,
enterprise architectures, business process redesign, and, electronic business architectures.
He has been Group CIO of Essar Group, the steel/oil and gas major of India, as well as
of Raymond Ltd., the textile and apparel major of India. He is a seasoned practitioner
in digital transformation, facilitating business agility via process-centric enterprises and
enhancing data-driven enterprise intelligence. He is the author of Guide to Cloud Computing
for Business and Technology Managers: From Distributed Computing to Cloudware Applications,
CRC Press (2015).
xxxvii
Other Books by Vivek Kale
Creating Smart Enterprises: Leveraging Cloud, Big Data, Web, Social Media, Mobile and IoT Technologies
(CRC Press, 2018).
Enterprise Performance Intelligence and Decision Patterns (CRC Press, 2018).
Agile Network Businesses: Collaboration, Coordination and Competitive Advantage (CRC Press, 2017).
Big Data Computing: A Guide for Business and Technology Managers (CRC Press, 2017).
Enhancing Enterprise Intelligence: Leveraging ERP, CRM, SCM, PLM, BPM, and BI (CRC Press, 2016).
Guide to Cloud Computing for Business and Technology Managers: From Distributed Computing to
Cloudware Applications (CRC Press, 2015).
Inverting the Paradox of Excellence: How Companies Use Variations for Business Excellence and
How Enterprise Variations Are Enabled by SAP (CRC Press, 2015).
Implementing SAP® CRM: The Guide for Business and Technology Managers (CRC Press, 2015).
Implementing Oracle Siebel CRM (Tata McGraw-Hill, 2010).
Implementing SAP R/3: A Guide for Business and Technology Managers (Sams, 2000).
xxxix
1
Enterprise Systems
Enterprise systems (ES) are an information system that integrates business processes with
the aim of creating value and reducing costs by making the right information available to
the right people at the right time to help them make good decisions in managing resources
proactively and productively. Enterprise resource planning (ERP) is comprised of multimodule application software packages that serve and support multiple business functions.
These large, automated cross-functional systems were designed to bring about improved
operational efficiency and effectiveness through integrating, streamlining, and improving
fundamental back-office business processes.
Traditional ES (like ERP systems) were called back-office systems because they involved
activities and processes in which the customer and general public were not typically
involved, at least not directly. Functions supported by ES typically include accounting; manufacturing; human resource management; purchasing; inventory management;
inbound and outbound logistics; marketing; finance; and, to some extent, engineering.
The objectives of traditional ES in general were greater efficiency and, to a lesser extent,
effectiveness. Contemporary ES have been designed to streamline and integrate operation processes and information flows within a company to promote synergy and greater
organizational effectiveness as well as innovation. These newer ES have moved beyond
the back-office to support front-office processes and activities like those that are fundamental to customer relationship management.
1.1 Evolution of Enterprise Systems
ES have evolved from simple materials requirement planning (MRP) to ERP, extended
enterprise systems (EES), and beyond. Table 1.1 gives a snapshot of the various stages of ES.
1.1.1 Materials Requirement Planning
The first practical efforts in the ES field occurred at the beginning of the 1970s, when
computerized applications based on MRP methods were developed to support purchasing and production scheduling activities. MRP is a heuristic based on three main inputs:
the Master Production Schedule, which specifies how many products are going to be produced during a period of time; the Bill of Materials, which describes how those products
are going to be built and what materials are going to be required; and the Inventory Record
File, which reports how many products, components, and materials are held in-house. The
method can easily be programmed in any basic computerized application, as it follows
deterministic assumptions and a well-defined algorithm.
1
2
Enterprise Process Management Systems
TABLE 1.1
Evolution of Enterprise Systems (ESs)
System
Primary Business
Need(s)
Scope
Enabling Technology
Inventory management
and production planning
and control
Extending to the entire
manufacturing firm
(becoming
cross-functional)
Mainframe computers, batch
processing, traditional file
systems
Mainframes and
minicomputers, real-time
(time-sharing) processing,
database management
systems (relational)
Mainframes, mini- and
microcomputers, client/
server networks with
distributed processing and
distributed databases, data
warehousing, mining,
knowledge management
Mainframes, client/server
systems, distributed
computing, knowledge
management, Internet
technology (includes
intranets, extranets,
portals)
Internet, service-oriented
architecture, application
service providers, wireless
networking, mobile
wireless, knowledge
management, grid
computing, artificial
intelligence
MRP
Efficiency
MRP II
Efficiency effectiveness,
and integration of
manufacturing systems
ERP
Efficiency (primarily
back-office),
effectiveness, and
integration of all
organizational systems
Entire organization
(increasingly crossfunctional), both
manufacturing and
nonmanufacturing
operations
ERP II
Efficiency effectiveness
and integration within
and among enterprises
Entire organization
extending to other
organizations
(cross-functional and
cross-enterprise partners,
suppliers, customers, etc.)
Interenterprise
resource planning,
enterprise systems,
supply chain
management, or
whatever label
gains common
acceptance
Efficiency effectiveness,
coordination, and
integration within and
among all relevant
supply chain members
as well as other partners
or stakeholders on a
global scale
Entire org…
