IT 402 SEU 4 Distinct Layers of Framework Extended Enterprise Systems Analysis

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College of Computing and Informatics Assignment 1 Deadline: Sunday 20/02/2022 @ 23:59 [Total Mark for this Assignment is 8] Student Details: Name: ### ID: ### CRN: ### Instructions: • • • • • • • • • • You must submit two separate copies (one Word file and one PDF file) using the Assignment Template on Blackboard via the allocated folder. These files must not be in compressed format. It is your responsibility to check and make sure that you have uploaded both the correct files. Zero mark will be given if you try to bypass the SafeAssign (e.g. misspell words, remove spaces between words, hide characters, use different character sets, convert text into image or languages other than English or any kind of manipulation). Email submission will not be accepted. You are advised to make your work clear and well-presented. This includes filling your information on the cover page. You must use this template, failing which will result in zero mark. You MUST show all your work, and text must not be converted into an image, unless specified otherwise by the question. Late submission will result in ZERO mark. The work should be your own, copying from students or other resources will result in ZERO mark. Use Times New Roman font for all your answers. Question One Pg. 01 Learning Outcome(s): CLO1: Explain the interdisciplinary concepts, theories, and trends in ES and their role in supporting business operations Question One 2 Marks Discuss the four distinct layers of the conceptual framework of Extended Enterprise Systems (EES)? Question Two Pg. 02 Learning Outcome(s): Question Two 2 Marks Explain how you can improve the theoretical capacity of a process? CLO1: Explain the interdisciplinary concepts, theories, and trends in ES and their role in supporting business operations Answer: Question Three Pg. 03 Learning Outcome(s): CLO2: Describe the development life cycle of ES and reengineering best practices. Question Three 2 Marks What is the purpose of system engineering? How to achieve performance improvement by using system engineering? What is the benefit of using modeling and simulation in system engineering? Answer: Question Four Pg. 04 Learning Outcome(s): Question Four 2 Marks Discuss four attributes that are not observable at runtime in your own words? CLO4: Design ES architectural models for various business processes. Answer: 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) This book contains information obtained from authentic and highly regarded sources. Reasonable efforts have been made to publish reliable data and information, but the author and publisher cannot assume responsibility for the validity of all materials or the consequences of their use. The authors and publishers have attempted to trace the copyright holders of all material reproduced in this publication and apologize to copyright holders if permission to publish in this form has not been obtained. If any copyright material has not been acknowledged please write and let us know so we may rectify in any future reprint. Except as permitted under U.S. Copyright Law, no part of this book may be reprinted, reproduced, transmitted, or utilized in any form by any electronic, mechanical, or other means, now known or hereafter invented, including photocopying, microfilming, and recording, or in any information storage or retrieval system, without written permission from the publishers. For permission to photocopy or use material electronically from this work, please access www.copyright.com (http://www. copyright.com/) or contact the Copyright Clearance Center, Inc. (CCC), 222 Rosewood Drive, Danvers, MA 01923, 978-7508400. CCC is a not-for-profit organization that provides licenses and registration for a variety of users. For organizations that have been granted a photocopy license by the CCC, a separate system of payment has been arranged. Trademark Notice: Product or corporate names may be trademarks or registered trademarks, and are used only for identification and explanation without intent to infringe. Visit the Taylor & Francis Web site at http://www.taylorandfrancis.com and the CRC Press Web site at http://www.crcpress.com 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 3.3 3.4 3.5 ix 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 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 xvii xviii 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 xxiii xxiv 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 xxv xxvi 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. xxviii 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 MRP Efficiency Inventory management and production planning and control Extending to the entire manufacturing firm (becoming cross-functional) 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 organization and its constituents (increasingly global and cross-cultural) composing the global supply chain from beginning to end as well as other industry and government constituents Enabling Technology 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 employs a type of backward scheduling wherein lead times are used to work backwards from a due date to an order release date. While the primary objective of MRP was to compute material requirements, the MRP system proved also to be a useful scheduling tool. Order placement and order delivery were planned by the MRP system. Not only were orders for materials and components ge...
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Running Head: EES PROGRAMMING

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EES Programming

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Running Head: EES PROGRAMMING
Question One
Discuss the four distinct layers of the conceptual framework of Extended Enterprise
Systems (EES)?

Foundation Layer- It contains all the needed pieces for a powerful framework. It has a
common vocabulary to use, recommended standards and compliance methods, suggested
software and tools, and even a method to define best practices (Vivek Kale, 2019). The layer
consists of the core components of EES which shape the underlying architecture and also
provide a platform for the EES systems. One of the core components is the integrated
database, which may be a distributed database. Another core component is the application
framework, which also can be distributed. The integrated database and the application
framework provide an open and distributed platform for EES.
Process Layer- This is a Web-Based central component of EES and uses the method of
taxonomy to organize a massive variety of documents and materials into categories that suit
them. It is separated and may be implemented as a set of distributed Web services. The basis
of the Framework focuses on six descriptive foci and six-player perspectives. The foci are
data, function, network, people, time, and motivation. The perspectives are planner, owner,
designer, builder, subcontractor, and enterprise. The interconnectivity web that these twelve
total points create gives you a structure that communicates how best your company can
operate. When you understand why each point can connect and relate to each other, you
discover a powerful facet of your business. This can help guide proper decisions on your
business (Vivek Kale, 2019).
Analytical Layer- This layer enhances the central ERP functions thus providing decision
support for the issues such as relations and other corporate. They cover business, service,
components, technical, and data. These five points combine with a segment model to create a
perspective on how best to install enterprise architecture. Corporate components are not
necessarily synchronized with the integrated database and the components may easily be
“add-ons” instituted by acquiring third-party products/vendors. In the future, the list of
components for this layer can be augmented by newer additions like product lifecycle
management (ERP for the research and development function) and employee lifecycle
management (ERP for human resources).
Electronic Business Layer- Also called the e-business layer of the EES system’s portal
which focuses on a constant state of adapting to the environment around you by combining

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Running Head: EES PROGRAMMING

business owners, customers, information specialists, and technology implementers into a
single unified entity (Vivek Kale, 2019). This layer consists of the above collaborative
components. The collaborative components deal with the communication and the integration
between the corporate ERP II system and these actors

Question Two
Explain how you can improve the theoretical capacity of a process?
Theoretical capacity is the level of a manufacturer's production, throughput that would be
attained if all of its equipment and operations performed continuously to produce at their
peak efficiency levels with no downtime (Ni, et al. 2016)
Capacity is the throughput or number of a facility’s unit capacity or the units it can receive,
store, or produce in a period. Theoretical capacity is the maximum output of a system in a
given period under ideal conditions. Mostly, designing capacity can be straightforward,
effective capacity is the capacity a firm expects to achieve given its current operating
constraints. Often lower than design capacity since the facility may have been designed for an
earlier version of the product or a different product mix than is currently being produced.
Available in the capacity of a system or resource to produce a quantity of output in a given
period. It is affected by (Vivek Kale, 2019).
i.

product specifications change, the work content (work required to make the product)
will change, thus affecting the number of units that can be produced,

ii.

Product mix where the product has its work content measured in the time it takes to
make the product. If the mix of products being produced changes the total work
content (time) the mix will change,

iii.

plant and equipment which relates to the methods used to make the product,

iv.

Work effort, which relates to the speed or pace at which the work is done; if the
workforce changes pace, perhaps producing more in a given time, the capacity will be
altered.

To measure capacity, we need units of output. If the variety of products produced at a work
center or in a plant is not large, it is often possible to use a unit common to all products (Ni,
et al. 2016). We also need standard time which is expressed as the time required for making
the product using a given method of manufacturing. Utilization is the available time that is
the maximum hours we can expect from the work center; the percentage of time that the work
center is active. Efficiency is how the work center is used in comparison with a standard.
Available time is the number of hours a work center can be used.

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Running Head: EES PROGRAMMING

Available time = the number of machines x the number of workers x the hours of operations.
The other measures:
1. Utilization = Actual output / Design capacity, this is a percent of design capacity.
Also measured as:
2. Utilization = (Hours actually worked / available hours) x 100%
3. Efficiency = Actual output / Effective capacity, this is an actual output as a percent of
effective capacity. Also measured as:
4. Efficiency = (Actual rate of production / Standard rate of production) x 100%
These measures are important for operations managers, but they often need to know the
expected output of a facility or process. Also referred to as rated capacity:
Rated Capacity = (Available time) x (Utilization) x (Efficiency)
Considerations for a good capacity entails: Forecasts demand accurately, understand the
technology and capacity increments, Find the optimum operating level (volume), and
Building for change.

Question Three
What is the purpose of system engineering? How to achieve performance improvement by
using system engineering? What is the benefit of using modeling and simulation in system
engineering?
Answer:
Purpose of System engineering
Systems engineering is the art and science of developing an operable system capable of
meeting requirements within often opposed constraints (Barbierato, et al., 2020, July).
Systems engineering is a holistic, integrative discipline, wherein the contributions of
structural engineers, electrical engineers, mechanism designers, power engineers, human
factors engineers, and many more disciplines are evaluated and balanced, one against
another, to produce a coherent whole that is not dominated by the perspective of a single
discipline (Vivek Kale, 2019).
The engineer seeks a safe and balanced design in the face of opposing interests and multiple,
sometimes conflicting constraints. The systems engineer should develop the skill for
identifying and focusing efforts on assessments to optimize the overall design and not favor
one system/subsystem at the expense of another while constantly validating that the goals of
the operational system will be met.

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Running Head: EES PROGRAMMING

A system engineering ensures that the system technically fulfills the defined needs and
requirements and that a proper systems engineering approach is being followed. The systems
engineer oversees the project’s systems engineering activities as performed by the technical
team and directs, communicates, monitors, and coordinates tasks (Barbierato, et al., 2020,
July).

Achieving performance improvement using System engineering
Requirements Analysis and Management- The first step in any successful development
project is the collection, refinement, and organization of design inputs (Vivek Kale, 2019).
Requirements Analysis is the art of making sure design inputs can be translated into
verifiable technical requirements. Effective prioritization of these requirements enables a
systems engineer to formulate contingency plans for addressing risks and taking advantage of
opportunities as they present themselves

Functional Analysis and Allocation- Systems engineer leads the team in developing
strategies to meet the requirement...


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