Business Process IST 421 Business Process Integration Defines

Business Process IST 421

Business Process Integration Defines a common business process model that addresses the ◦ ◦ ◦ sequence, hierarchy, events, execution logic, and information movement between systems residing in an organization (EAI) and systems residing in multiple organization (B 2 B).

Business Process Integration What is the difference between application integration and business process integration? Application Integration is a tactical solution to have two or more applications communicate. Business Process Integration is strategic, leveraging business rules to determine how systems should interact through a common abstract business model.

Business Process Integration Instructions for the integration defined at business-process level rather than technicalinterface level ◦ Defines end-to-end business processes ◦ Automated across existing systems on different platforms ◦ Dashboards that enable business managers to track key performance indicators in near real time

Business Process Integration May be applied to any number of business events: ◦ ◦ Processing a customer request Manufacturing an automobile Delivering a product to a customer Processing a financial transaction

Business Process Management In 1950’s Dr. W. Edward Deming proved that improvements in managing business processes lead to improvements in business and competitive advantage Work was leverage by Japanese manufacturing companies – quality products at a lower cost, competitive advantage Deming Prize

Business Process Management Deming’s work gave rise to several initiatives to manage & measure efficiency & effectiveness of business ◦ ◦ Total Quality Management (TQM) Balanced scorecard Six Sigma ISO 9001 Metrics can be used on a dashboard

Business Process Integration Many business processes are already automated. Disparate systems need to share information and also do it in an orderly and efficient manner. BPI adds another layer above the processes encapsulated in existing systems.

Business Process Integration Business Process Modeling (BPM) – tools to graphically design and simulate business process. Business Process Automation (BPA) – mechanisms for automation of business processes without end-user interaction at execution time. Workflow Tools – allow for automation of business processes with end-user interaction at execution time.

Types of Processes Internal Processes – intra-company, allowing business to define common processes that span systems within company Shared Processes – exist between companies; set of agreed upon procedures for exchange of information and automating processes Specialized Processes – created for a special requirement like collaboration on a product development effort with a limited life span

Advantages Model needs to be altered when there is a change in business process, not the source or target system. Reuse any source or target system from model to model. Business level view of the end-to-end process

Disadvantages Modeling a process will not easily lead to aligning the information system with the business of the enterprise It may be costly Should only be used on processes with high added value that deserve spending the necessary means Assumed that all the application packages are XML enabled

What’s Needed BPI Modeling Tool ◦ Draw a diagram depicting processes, resource (systems & people), logic, movement of information, & shared application services. ◦ Define process’s connections & sequence. Business Process Executor ◦ Integration broker ◦ Application server ◦ Other middleware solution

Q 3: How Does Business Process Modeling Notation (BPMN) Document Business Processes? Software industry standardized notation for BPMN by Object Management Group (OMG) BPMN information Figure 7. 6 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 7 -14

Top-Level Business Processes at MRV Figure 7. 5 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 7 -15

Business Process with Three Swim Lanes Figure 7. 7 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 7 -16

MRV Assemble & Ship Equipment Process Figure 7. 8 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 7 -17

How Does the Interaction of Business Process Elements Affect Cost and Added Value? Ways to increase process performance 1. Brute force approach—add people, equipment 2. Change process structure w/o changing resource allocations 3. Do both 1 and 2 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 7 -18

Changing a Process by Adding Resources Determining value the change generates ◦ Computer simulation ◦ Financial analysis MRV - Contact trip leader or contact trip scheduler activities could be automated Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 7 -19

Modified Allocations in the Assemble & Ship Equipment Process Figure 7 -9 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 7 -20

Changing a Process by Altering Process Structure MRV—Equipment and Logistics manager creates an integrated picking list to minimize travel time and speed up picking equipment Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 7 -21

Changing a Process by Altering Process Structure (cont’d) Figure 7. 10 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 7 -22

What Role Do Information Systems Play in Business Processes? Roles ◦ Implement business process activities ◦ Entirely manual, automated, or mixed information systems Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 7 -23

IS Alternatives for Implementing the Register Clients Activity Alternatives: Entirely manual—using word processor to record data, prepare documents of client roster and special requests list 2. Use spreadsheet or database application to accomplish above activities, plus determine trip availability, collect deposits and trip payments 3. Entirely automated—create Register Client system 1. ◦ Clients use Internet to register and pay for trips Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 7 -24

Information Systems for Facilitating Linkages Among Activities Create database application to track equipment, location, status New activity “Process Equipment Database” ◦ Updates database from Register Clients, Assemble & Ship, Restore Equipment activities ◦ The trip scheduler can reserve special equipment and be notified if not available Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 7 -25

Equipment Database Resource Completely Automated Figure 7 -11 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 7 -26