Week 10 Enabling Business (IT) Integration

ITEC 4030 Business Process Management Systems

Week 10

Enabling Business (IT) Integration


Learning objectives

• Goals of Business (or IT) Integration (review)

• Current approaches to business integration:– Workflow systems: Routing of forms and workitems– SOA and Web services: Messaging– Enterprise Resource Planning: Shared databases

• Illustrations and design issues

• Application exercise (continued)


Business Integration: Goals and Approaches

• Review: Business Integration is the exchange of business-critical information between applications in real time (Yee & Apte, 2001)

• Goals:– Major improvement in business processes – Real time operations supported by dashboards displaying in real time:

• Key performance indicators from operational databases (aka business intelligence)• Status of business processes (aka Business Activity Monitoring)

• Current approaches: – Simple routing of documents, forms or workitems (aka jobs): Basic WF[M]S– Messaging between apps + Choreography (≠ orchestration): EAI, SOA, Web services– Shared databases: ERP

• Scope can include internal systems (SOA or ERP) and external ones (B2B integration, web services)


Workflow [Management] Systems• System that defines […] and manages the execution of workflows through the use of a

software […workflow engine…] able to interpret the process definition, interact with participants and, where required, invoke the use of applications (WfMC).

• Includes several software components:– Process definition tools: Process and construct modeling software– Workflow Enactment Service: Workflow engine (routes automatically phis to next participants

and notifies them) – Workflow client applications: Point of access for participants– Administration and monitoring tools: Re-routing, rule change, resource management,

performance monitoring, audit and reporting– Possible applications invoked during execution of process: e.g. ordering system, inventory

management system, purchasing system, payment system, billing system, etc.

• Infrastructure: Includes clients and server(s), middleware, applications, DBMS, networks, peripherals, etc.

• Functional and non-functional requirements: Selection of products based on “validated” vendors’ specs

• Benefits include coordinated teamwork (management of work and information flows and electronic handoffs), real-time information (BAM), process standardization, process execution synchronized with changing business needs


The WFMC reference modelSource: www.wfmc.org

Designer

Manager

End-user


The WFMC reference modelSource: www.wfmc.org


Workflow enactment & interaction Source: www.wfmc.org


Process design & definitionBusiness Process Analysis ,Modeling & Definition

ProcessDefinition

Build Time

Run Time

Workflow Enactment Service Process instantiation & control

ApplicationsInteraction with users & applications

WFMS build time & run time phases


WFMS build time & run time activities• Build time activities:

– Definition and test of business process and related constructs

– Workflow-BPR specific editing mode

– Model is exported of to some specific WFMS products

• Run time activities: – Interpretation of process definition

– Creation and control of process instances

– Interactions with identified participants

– Interactions with other identified computer-based apps


• The designer’s view: – Designer defines and tests the business process – Designer defines related constructs (such as forms)

• The end-user’s view:– End-user establishes session– End-user obtains workitems (or jobs):

• Pull mode: Users request new workitem• Push mode: Workitem automatically routed to user• Grab mode: Workitem routed to available user

– End-user performs required tasksWFS are TPS: updates in operational database

• The manager’s view: – Manager monitors execution of the business process– Managers reallocates resources /re-routes workitems

Illustration of a workflow system involving human interaction only


The designer’s view


The end-user’s view


The manager’s view


SOA &Web services’ basics• Basics:

– Business Integration is achieved through the re-use of existing apps (should be cheaper!) – Original focus on “internal” operations/apps and now extended to business partners– New developments:

• SOA (architecture that allows loosely coupled apps to exchange data with one another as they participate in the execution of business processes)

• Web services (SOA where the loosely coupled apps are accessed over the Internet)

• Tools and products– Tools that model and analyze complex BPs before their implementation– Servers that execute BPs – Servers that allow for connectivity between apps – Servers that allow for data transformation – Servers that allow for message transportation– Servers that allow connection to business partners via EDI (and conversion to XML)– Servers that monitor the execution of BP (provide real-time information and/or BAM)– Servers that allow for information integration (portlet integration) Major vendors: IBM, Oracle, Microsoft Functional and non-functional requirements: Selection of products based on validated vendors’ specs

• Benefits include re-use of existing apps and infrastructure + Faster integration cycle

ESB (see slide 15)


Managing BP with SOASource: www.ibm.com


Enterprise Service BusSource: www.ibm.com


ERP Basics• ERP systems:

– Set of integrated business applications bought from software vendors– Include modules that support a particular set of BPs – Modules integrated through common definitions (schemas) and common database Facilitate an integrated and real-time planning of BP activities (i.e., production & sales)

• ERP modules– Core applications (OLTP):

• Marketing, sales and distribution• Production, material management and logistics• Accounting and finance• Human resources• WFS and industry solutions (retail, automotive, etc.)

– Business tools:• OLAP• Project management systems

TPS, WFS, MIS, DSS are all included available as ERP modules

• Major vendors: SAP, PeopleSoft, Oracle, J.D. Edwards, Baan

ERP Basics


Major characteristics of ERPs


Nonintegrated versus integrated apps


How ERPs improve business processes• “Separate” modules support the flow of information across

multiple functions/partners (see next slide)

• On-line and real-time information: All functions / partners can access data in real time

• Best practices (business blueprints):– SAP R/3 has over 1100 best practices available to choose from

– Best practices in major industries (automotive, retail, etc.)


ERP Illustration (previously discussed in Lecture 9)

• Ordering: – Sales clerk enters order, checks discount and credit history and issues invoice– Can be done by customer through the Internet (ordering system is a web-based one)

• Inventory:– ERP application checks inventory and location of items

• Distribution:– ERP application alerts warehouse to ship portion of order in stock

• Manufacturing:– ERP application schedules production of the remainder of the order

• Manpower: – ERP application checks availability of workers to handle order – ERP application alerts personnel manager if temporary workers are needed

• Material planning: – ERP application checks availability of raw material needed for the order– ERP application alerts purchasing manager if more quantities must be ordered

• Order tracking:– Customer logs onto the ERP system through the Internet to check status of order


ERP: Design & implementation issues• Design:

– C/S architecture: usually 3-tier or n-tier – Software:

• ERP modules requiring minimal coding and allowing for some customization • Platforms (Mostly Unix or Window), DBMS (Oracle, MS SQL, Sybase, DB2), Data

warehouse– Other design issues:

• Functional and non-functional requirements: See validated vendors’ specs • LANs/WANs bandwidth and availability• Security: access, encryption, firewalls, IDS, digital certificate

• Implementation: Lease (versus Buy) – ASP (www.mySAP.com) delivers apps through a MAN or WAN usually the Internet– Organization pays a flat fee + for service on a monthly, yearly or on per use basis – Benefits

• “Lower cost” for applications: Organization does not invest in software and hardware• Faster development (and shorter implementation!)• Organizations focused on their core business

– Limitations: Sensitive data + WAN’s response time (Internet’s unpredictable traffic)


Phases of Business Process RedesignPhase 3 of 5

Integration

ModelingAnalysis Redesign

Scoping

Share Process Knowledge

Model AS-IS baseline Process

Analysis

Redesign “To-Be” Process Alternative

Select “To-Be”Design


Planning process integration• Activities

– Examine alternative IT integration options– Adjust process design– Plan process implementation

• Deliverable: Process integration plan

• Key participants: IS design team + BPR team

• Focus was on the design of computer-based apps that:– Support/shape critical BPs (such as procurement, production and sales)– Allow for business integration (WFS, SOA & Web services, ERP)Trends: SOA and Web services (re-use of existing apps) v/s ERP (new

pre-packaged apps)


Application exerciseYour Project (continued):

– Which apps should be integrated?– Why?– How?


Thank you

Week 10 Enabling Business (IT) Integration

Documents