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    BPM & BPEL

    Author : Arun Pareek

    March 2010

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    Agenda

    Overview of BPM discipline

    Types of processes Standards, Tools & Roles

    Overview of BPEL

    Key Differences - BPM & BPEL Case study of Order-to-Cash process for

    manufacturing industry like Dell

    Conclusions & Recommendations

    Discuss the application of these twotechnologies for the right business context andrequirements.

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    Business Process Management Is a discipline for management of atomic business processes

    whose functional boundaries and human actors are well-defined. Hence, centres around documents, people and

    processes.

    High-level Activities in BPM

    Process Definition Process Execution

    Process Monitoring

    Process Optimization

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    Type of Processes Document-centric: Processes revolve around approval,

    routing and handling of documents.

    People-centric: Processes revolve around human tasks,refer back or re-execution of tasks, parallel tasks, complexuser interactions (loops), escalations, etc. with quick turn-around times.

    Process-centric: Processes revolve around a core businessfunction/process which has a well defined boundary(within a department like a Warehouse, Finance, etc).

    System-centric: Processes revolve around the executionof functional workflows/processes in other systems, re-

    execution of sub-processes, etc. while retaining control ofthe end-to-end business process at a macro level whenwork flows across systems (rather than just people)

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    Standard, Tools & Roles

    Complemented by other standards on

    Standardized data models for verticals (OAGIS, ebXML, RosettaNet)

    Technology standards XML, SOA security, Messaging, etc(OASIS)

    Activity Standard Tools Role

    Process

    Definition

    BPMN

    XPDL ebXML BPSS

    AquaLogic Business Process

    Modeller IDS-Scheer ARIS (Oracle BPA Suite)

    WebSphere Business Process

    Modeller

    Business Analyst

    Business ProcessArchitect

    Process

    Execution

    Proprietary

    BPEL

    BPEL4People

    WS-CDL

    Wf-XML

    AquaLogic BPM (earlier Fuego BPM)

    Lombardi

    PEGA BPM

    TIBCO iProcess Suite

    Business Process

    Developer/Designer

    BPEL Developer

    Process

    Monitoring

    Proprietary right

    now

    Standard evolving

    Oracle BAM

    TIBCO BAM

    PEGA BAM

    Business stakeholders

    Operations

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    Overview of BPEL BPEL is a popular standard for orchestration

    of composite business processes that span

    across systems that in turn run atomic &

    functional sub-processes. Hence is system-

    centric Currently the standard is BPEL 1.2 (Oracle

    supports BPEL 1.1)

    BPEL is XML based standard and is machine-readable

    DELLCONFIDEN

    TIAL7

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    Select Lowest Offer

    10:00am

    Handle Negative

    Credit Exception

    Credit Rating

    start

    end

    BPEL Flow

    ?

    United Loan Star Loan

    Get Rating

    Send Loan Application

    Receive Loan Offer

    03:00pm

    Send Loan Application

    Receive Loan Offer

    Overview of BPEL

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    Key Differences - BPM & BPELCriteria BPM BPEL

    Scope Intra-department functional

    workflows with well definedboundaries

    Inter-department, cross-system composite (end-

    to-end) processes; sometimes acrossorganizational boundaries

    Centricity or

    Focus

    Document-centric

    People-centric

    Process-centric

    System-centric

    Actors Actors are mostly Humans

    Workflows are complex with the

    actors confined to largely one

    department and its functions.

    Actors are mostly Systems

    Human tasks in the processes are mostly

    reserved for process/business exceptions to be

    handled by process owners.

    Standards Proprietary execution formats &

    standards

    Processes can be defined in BPMN

    Open standard

    BPEL engines do have proprietary extensions

    Processes can be defined in BPMN and exported

    to BPEL format

    Structure Fairly un-structured Structured

    Transaction

    Volume

    Cannot handle large volumes

    Typically support large number ofusers

    Can handle large transaction processing volumes

    (millions of processes per day)

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    Case StudyA Typical End-to-End O2C Process

    In the real world,

    most of these

    systems will be

    from different

    vendors.

    These core

    functional systems

    will have their own

    proprietaryworkflow tools

    Most of these core

    functional systems

    are designed from

    the function and

    user point of view.

    BPM cannotorchestrate these

    E2E and also

    provide visibility.

    Process Owner

    does not have

    visibility of the E2E

    process.

    Order-to-Cash Process

    Inventory

    Management

    (WMS)

    Finance

    Order

    M

    anagement

    Shipping

    Production

    Management

    CustomerRelationship

    Management(CRM)

    Enquiry & Quote

    Generate

    Sales Order

    Make

    Payment

    Soft-copy

    Receipt

    Check in

    Warehouse

    Create Work Order

    Transfer from

    Storage to

    Shipping Area

    Y

    N

    Order Booking

    Load

    &

    Ship

    Generate AR

    Invoice

    Inventory

    Exists? Inventory

    Update

    Enquire &

    Request

    Quote

    Produce

    Product

    Increase

    Inventory

    Shipping Invoicing

    Generate

    Pick

    Ticket

    Generate

    Packing

    Slip

    Ship

    Confirm

    Raise

    Invoicing

    Request

    Generate

    AR ReceiptInvoice

    Allocation

    Reduce

    Inventory

    Plan Dispatch

    Quote

    Accepted?Order Entry

    Y

    Receipt & AllocationOrder Processing

    Receive

    Invoice

    CrossSy

    stemI

    nteractions

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    Order-to-Cash Process

    Inventory

    Management

    (WMS)

    Finance

    Order

    M

    anagement

    Shipping

    Production

    Management

    CustomerRelationship

    Management(CRM)

    Enquiry & Quote

    Generate

    Sales Order

    Make

    Payment

    Soft-copy

    Receipt

    Check in

    Warehouse

    Create Work Order

    Transfer from

    Storage to

    Shipping Area

    Y

    N

    Order Booking

    Load

    &

    Ship

    Generate AR

    Invoice

    Inventory

    Exists? Inventory

    Update

    Enquire &

    Request

    Quote

    Produce

    Product

    Increase

    Inventory

    Shipping Invoicing

    Generate

    Pick

    Ticket

    Generate

    Packing

    Slip

    Ship

    Confirm

    Raise

    Invoicing

    Request

    Generate

    AR ReceiptInvoice

    Allocation

    Receive

    Invoice

    Reduce

    Inventory

    Plan Dispatch

    Quote

    Accepted?Order Entry

    Y

    Receipt & AllocationOrder Processing

    Pick A BPM

    Candidate

    Most of the atomicand departmental

    functions/processes

    are well-defined.

    If implemented as

    part of a packaged

    application, the

    choice of using BPMfor such processes

    wont be there.

    If implemented from

    scratch, such

    processes are good

    BPM candidates.

    Case StudyA Typical End-to-End O2C Process

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    Inventory count and adjustment

    Inventory Update in WMS

    WMS

    Manager

    WMS

    Clerk

    EventWMS Receipt &

    Put Away or

    Pick Ticket & Dispatch

    Create Physical

    InventoryDocument

    Physical

    Inventory

    Document

    Physical

    Count

    Enter Count in

    WMS

    Review

    Inventory Count

    End Process

    Accept

    Count? RecountNo

    Yes

    In the real world,

    such functions

    involve a lot of

    human tasks that

    have to be done

    manually.

    In the real world,

    these systems are

    packagedapplications with

    their own workflows

    which may or may

    not be in BPM tools.

    These core

    functional systems

    are designed fromthe Functional User

    point of view.

    Case StudyA Typical End-to-End O2C Process

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    Conclusions BPM is a discipline for management of atomic business process whose

    functional boundaries are well-defined rather than management of long-

    running end-to-end business processes that fulfil an end-to-end businessprocess that spans across multiple disparate systems.

    BPEL is a sub-set of the Business Process Management discipline

    BPEL bridges the gap between BPM and SOA. BPEL does what BPM

    cannot do on its own i.e. execute/orchestrate processes across

    department/functional systems in a standard way while at the same time

    providing Visibility & Control to the Business Process Owner.

    BPEL is not good at handling complex workflows that involve a lot of

    human tasks (work-items) and which demand quick turn-around times.

    EAI can fill in the cross-system workflow gap to some extent but it does

    not give visibility and control to the Process Owners.

    BPM tools are not suitable for high-volume transaction processing while

    most BPEL tools are.

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    Recommendations Use BPM for inter-departmental function workflows/processes that are

    centred around human tasks and documents

    Orchestrate end-to-end, cross-system processes using a BPEL engine.

    In a green-field project, if all functional workflows are going to be built

    from scratch, then BPM can be used for process management and

    process-integration instead of BPEL but if more than one packaged

    application/system are going to be used in the project, then using BPEL

    along with BPM is a better option.

    Use BAM in tandem with BPM and BPEL for end-to-end process visibility.