Toronto ECE 1770 - Business Process Management

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© Copyright IBM Corp. 2006. All rights reserved. 1Draft Document for Review February 28, 2006 10:23 am 7148p01.fmPart 1 IntroductionIn this part we introduce the concepts of business process management, the IBM process integration products that support business process management, and the case study, a company named ClipsAndTacks, that we use throughout the rest of the book.Part 17148p01.fm Draft Document for Review February 28, 2006 10:23 am2 WebSphere Process Integration V6: Business Process Management Modeling through Monitoring© Copyright IBM Corp. 2006. All rights reserved. 3Draft Document for Review February 28, 2006 10:23 am 7148intro-bpm.fmChapter 1. Business process management In this chapter we introduce the concepts and benefits of business process management (BPM) and service-oriented architecture (SOA) that enables business value through operational flexibility, responsiveness and reuse.We also introduce the Service Component Architecture (SCA) and Services Data Objects (SDO) as building stones for the SOA architecture.17148intro-bpm.fm Draft Document for Review February 28, 2006 10:23 am4 WebSphere Process Integration V6: Business Process Management Modeling through MonitoringWhat is a business process?If you search the Web for a definition of business process, you find many definitions. All these definitions contain certain common elements:򐂰 A business process is triggered by a business event.򐂰 A business process has an input and creates an output that is of value to the organization, its stake holders, or its customers.򐂰 A business process is composed of related structural activities. Material and/or information flows between the process activities.򐂰 A business process can be part of a larger process and can include or depend on other business processes. 򐂰 A business process can be viewed as the workflow for a use case.򐂰 A business process usually depends upon several business functions for support, for example, IT, personnel, and accommodation.What is business process management?Business process management (BPM) leads to business innovation and optimization by implementing business strategy through modeling, developing, deploying and managing business processes throughout their entire lifecycle. BPM acts as an enabler for the businesses in defining and implementing strategic business goals and then measuring and managing company’s financial and operational performance against these goals. The power of optimal results from the BPM lifecycle activities is derived from the integrated set of the robust technology infrastructure and tools.Business process management provides a convergence of technology that removes business and IT constraints through integration and enhanced technology to help streamline business transformation. These capabilities provide tight integration of operational and analytical environments, business and IT environments, and strategy with daily operations. Business process management combines business processes, information, and IT resources, aligning your organization's core assets—people, information, technology, and processes—to create a single integrated view, with real-time intelligence, of both its business measurements and IT system performance. This integration of resources allows your organization to obtain business information faster, respond more quickly to market trends and competitive threats, and improve operational efficiencies and business results—all attributes of an on demand enterprise.Chapter 1. Business process management 5Draft Document for Review February 28, 2006 10:23 am 7148intro-bpm.fmBenefits of BPMBPM allows for an enterprise to be flexible and responsive to the ever changing on-demand business through the optimization and automation of the business processes to:򐂰 Identify and eliminate redundancies and bottlenecks򐂰 Reduce risk by gaining an understanding of process impacts prior to operationalizing򐂰 Decouple business integration logic from its underlying implementation code򐂰 Increase portability and decrease mainteance cost by being based on industry standards򐂰 Automate process implementation, eliminate manual deployment tasks򐂰 Immediately execute new business rules and processes򐂰 Visualize actual process performance against key performance indicators򐂰 Pinpoint future process improvementsThe robust business process management solution will provide powerful tools for the business and IT side of the business to meet their challenges:򐂰 The business executive needs:– Revenue growth with cost containment– Responsiveness to business conditions and ability to pursue new market opportunities– Improving internal skills, capabilities and leadership as first step toward growth򐂰 The challenges for the IT executive are:– Aligning IT and business goals to grow revenue and contain costs– Building responsiveness and agility into the organization through IT– Enabling people and teams to be more effective through ITInformation on business process managementYou can find definitions and more information on business process management on the Internet, for example:򐂰 Wikipedia:http://en.wikipedia.org/wiki/Business_Process_Management򐂰 Business Process Management Initiative:http://www.bpmi.org/7148intro-bpm.fm Draft Document for Review February 28, 2006 10:23 am6 WebSphere Process Integration V6: Business Process Management Modeling through MonitoringIBM business process management solutionThe IBM process integration portfolio provides capabilities required for the delivery of the comprehensive enterprise wide business process management strategies and solution. It offers a holistic approach to transform and manage a business by aligning strategic and operational objectives with business activities and supporting IT services. The IBM BPM solution includes development tools, used to implement custom artifacts that leverage the infrastructure capabilities, and business performance management tools, used to monitor and manage the runtime implementations at both the IT and business process levels. Business process management allows companies to implement the continuous end-to-end business process lifecycle in an open environment (Figure 1-1). Figure 1-1 Business process management lifecycleThe IBM BPM solution component tools support the following major activities:򐂰 Model—Capture, simulate, analyze and optimize business models to reduce risk and increase


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