1. 1 Information Systems Design [Σχεδιασμός Πληροφοριακών Συστημάτων] Unit 4: Business Process Models (2) Univ. of the Aegean Financial and Management Engineering Dpt Petros KAVASSALIS Chios, 06.11.2008

2. Petros KAVASSALIS 2 What you will learn in this course A set of fundamental concepts for understanding the process of Information Systems Design in a Business Context A set of fundamental concepts for understanding the process of Information Systems Design in a Business Context  Principles for Information Systems design  Business operations and processes  Business Process Management (BPM) Familiarization with Business Process Management practices : Familiarization with Business Process Management practices :  BPMN  XML A full Case of BPM design A full Case of BPM design  Business logic  Augmented with technical details

3. Petros KAVASSALIS 3 Communication tools e-mail: petros at cfp.mit.edu e-mail: petros at cfp.mit.edupetros at cfp.mit.edupetros at cfp.mit.edu e-mail to use to submit assignments: petros.students at gmail.com e-mail to use to submit assignments: petros.students at gmail.competros.students at gmail.competros.students at gmail.com Course web site: http://infosysdesign2008.blogspot.com Course web site: http://infosysdesign2008.blogspot.comhttp://infosysdesign2008.blogspot.com * Last year reference: http://infosysdesign2007.blogspot.com * Last year reference: http://infosysdesign2007.blogspot.comhttp://infosysdesign2007.blogspot.com

4. Petros KAVASSALIS 4 Students evaluation Class Participation (20%) Class Participation (20%)+ Assignments (20%) Assignments (20%)+ Final Exam (60%) Final Exam (60%) * Questions regarding last year course quality: ask gdikas (gdikas [AT] gmail.com ) * Questions regarding last year course quality: ask gdikas (gdikas [AT] gmail.com )

5. My expectations [I copy a colleague I respect a lot…] Information Systems Design under a BPM view is practical (with “hands-on” examples) but also intellectually challenging Information Systems Design under a BPM view is practical (with “hands-on” examples) but also intellectually challenging I'm not a formal person and will be as accessible as I can to all of you – my official office hours are proposed as Thursday 11-13 I'm not a formal person and will be as accessible as I can to all of you – my official office hours are proposed as Thursday 11-13 But my informality doesn't mean I'm casual about what goes on in my class… But my informality doesn't mean I'm casual about what goes on in my class… I want from my students to avoid missing lectures and actively participate in the practical work (if yes: there is compensation) I want from my students to avoid missing lectures and actively participate in the practical work (if yes: there is compensation) Petros KAVASSALIS 5

6. A business process view… Implies an horizontal view of organization Implies an horizontal view of organization Looks at processes as sets of independent activities designed and structured to produce a specific output for a customer or a market Looks at processes as sets of independent activities designed and structured to produce a specific output for a customer or a market Uses the term activity Uses the term activity  To refer to a small scale process that consists of one or few closely related steps A process defines A process defines  The results to be achieved (start-end)  The context of the activities  The relationships between activities  The interaction with other process and resources Petros KAVASSALIS 6

7. A business process model… Consists of Consists of  A set of activity models and execution constraints between them Is used Is used  To configure the Business Process Management System accordingly  Think about that! Represents Represents  Activities and Relationships Graphical representations of business processes focus on the process structure and the interactions of participating parties (rather than on technical / software aspects) Graphical representations of business processes focus on the process structure and the interactions of participating parties (rather than on technical / software aspects)  Examples follow Petros KAVASSALIS 7

8. Business process model example: a reseller’s process Petros KAVASSALIS 8

9. Business process model example: a buyer’s process Petros KAVASSALIS 9

10. Interacting business processes (case 1) Petros KAVASSALIS 10

11. Interacting business processes (case 2) Petros KAVASSALIS 11

12. Petros KAVASSALIS 12 Business Process Management Notation (BPMN) Graphical notations are being used to expressing orderings between activities of a business process Graphical notations are being used to expressing orderings between activities of a business process There are several graphical notation languages for business process modeling, with the more simplified variant being the Business Process Modeling Notation (BPMN) There are several graphical notation languages for business process modeling, with the more simplified variant being the Business Process Modeling Notation (BPMN)

13. Petros KAVASSALIS 13 BPMN Diagrams from scratch Events (i.e. the occurrence of states in the real world0 are represented by circles Events (i.e. the occurrence of states in the real world0 are represented by circles Activities are represented by rounded rectangles Activities are represented by rounded rectangles Execution ordering of activities is expressed by directed arrows Execution ordering of activities is expressed by directed arrows Branching and joining of nodes (i.e. the split behavior of the flow of control between activities) is represented by diamonds (called “gateways”) that can be marked by Branching and joining of nodes (i.e. the split behavior of the flow of control between activities) is represented by diamonds (called “gateways”) that can be marked by  A “+”: Parallel Fork ? Join (AND)  A “x”: Exclusive Decision / Merge (XOR)

14. Petros KAVASSALIS 14 Events

15. Petros KAVASSALIS 15 Activities

16. Petros KAVASSALIS 16 Flows

17. Petros KAVASSALIS 17 Gateways

18. Petros KAVASSALIS 18 Pools, Lanes (sub-partitions within a Pool) and Executable Pools Models of human-enabled process are not “executables” Models of human-enabled process are not “executables”

19. Petros KAVASSALIS 19 Special: Sequence flow and Gateways (1) Sequence flow: control flow. It is represented by Sequence flow: control flow. It is represented by  Solid Arrows between  Activities, Events and Gateways Normal flow: represents Normal flow: represents  Expected and Desired behavior of the process Starts and Ends with Starts and Ends with  An Event (start and end even) Continues Continues  Via a a set of flow objects (activities, gateways etc.) Gateways act Gateways act  As either a join node  Or a split node

20. Petros KAVASSALIS 20 Special: Sequence flow and Gateways (2) Joint nodes: Joint nodes:  2 incoming arcs (at least):  1 outgoing edge Split nodes Split nodes  One incoming arc  2 outgoing edges (at least) Remind: Remind:  Each Gateway acts as a join node or as a split node

21. Petros KAVASSALIS 21 Special: Sequence flow and Gateways (3) “Exclusive or” splits “Exclusive or” splits  “Data-based exclusive or split” (x) o There is gate with an associated condition (gate condition / data based) o Once a gate condition evaluated the true, the corresponding branch is taken, and the other conditions are disregarded “Inclusive or” splits “Inclusive or” splits o There is gate with an associated condition (gate condition / data based) o An arbitrary number of outgoing branches is selected (not only 1)

22. Petros KAVASSALIS 22 Special: Sequence flow and Gateways (4) A complex gateway allows the definition of a combined split and join behavior A complex gateway allows the definition of a combined split and join behavior  “And split/join” o The process starts with getting an order o Then, a “parallel” gateway triggers the execution of number n activities (2 and more) o These activities are completed simultaneously o When they are completed, the “and join” synchronized the parallel flows, and the process terminates

23. More? BMPN by Bruce Silver Associates BMPN by Bruce Silver Associates Part 3: https://www.sdn.sap.com/irj/sdn/go/portal/prtroot/docs/library/ uuid/70c51475-3b7b-2a10-248c-f4cc7b4dc52c Part 3: https://www.sdn.sap.com/irj/sdn/go/portal/prtroot/docs/library/ uuid/70c51475-3b7b-2a10-248c-f4cc7b4dc52c Part 3 Part 3 Part 2: https://www.sdn.sap.com/irj/sdn/go/portal/prtroot/docs/library/ uuid/309737c3-3e75-2a10-7097-833d068f2858 Part 2: https://www.sdn.sap.com/irj/sdn/go/portal/prtroot/docs/library/ uuid/309737c3-3e75-2a10-7097-833d068f2858 Part 2 Part 2 Part 1: https://www.sdn.sap.com/irj/sdn/go/portal/prtroot/docs/library/ uuid/10852310-ac6a-2a10-02be-d83f4d2dd647 Part 1: https://www.sdn.sap.com/irj/sdn/go/portal/prtroot/docs/library/ uuid/10852310-ac6a-2a10-02be-d83f4d2dd647 Part 1 Part 1 Petros KAVASSALIS 23

24. BPM Case: Re-engineering grading permits (San Jose, California) [See San Jose_case (.pdf)] [See San Jose_case (.pdf)] Process time: From 21 working days to 5 days! Process time: From 21 working days to 5 days! Transform the process of grading permit to a three-fold process model Transform the process of grading permit to a three-fold process model  Exempt  Express  Regular First stage: “As is” First stage: “As is” Second stage: “To be” Second stage: “To be” Petros KAVASSALIS 24

25. The essential of a BPR operation: 8 steps methodology Flow chart the “as-is” process Flow chart the “as-is” process Interview customers Interview customers Interview staff Interview staff Share customer and staff interview with core and technical teams Share customer and staff interview with core and technical teams Make a first-cut at redesign (‘to be”) Make a first-cut at redesign (‘to be”) Share the redesign results with customers and an advisory group Share the redesign results with customers and an advisory group Revise the redesign Revise the redesign Implement the new process Implement the new process Petros KAVASSALIS 25

26. New versus old process [See Jan Jose.adl process flow diagrams (adonis CE files)] [See Jan Jose.adl process flow diagrams (adonis CE files)]  The process diagrams will be re-designed within the class  New process’ basic concept o Triage [exempt, regular, express] process o Project Manager Petros KAVASSALIS 26

27. Innovations (in detail) Different process for [exempt, regular, express] process Different process for [exempt, regular, express] process New permit reviews are handled by one (1) from five (5) projects managers (more managers will be trained over time) New permit reviews are handled by one (1) from five (5) projects managers (more managers will be trained over time) Permit issue managers determine whether a project is needed and can issue on-the-spot exemptions Permit issue managers determine whether a project is needed and can issue on-the-spot exemptions They also decide which applications are express and which regular They also decide which applications are express and which regular  Only project managers handle express applications  For regular process applications, the project manager User-friendly forms have been necessary to reduce errors and decrease staff time and customer waiting time User-friendly forms have been necessary to reduce errors and decrease staff time and customer waiting time Petros KAVASSALIS 27

28. Re-design principles Preparation Preparation  People involved in a process should be actively involved in analyzing, designing and implementing improvements Analysis-design Analysis-design  Quick “initial review” obligation (by a generalist engineer)  100% quality at the beginning of the process to get complete applications (only complete applications were allowed to move past the review)  If inputs coming into the process naturally cluster, design a specific process for each cluster  For clusters where each application is unique, create team and co-locate it, if possible  A single point of contact with the customer: the project manager (with sign-off authority) Implementation Implementation  Cross-training to make multi-skills employees Petros KAVASSALIS 28