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Electronic Business Electronic Business on the Interneton the Internet

E-Business Management E-Business Management

and Workflow Technologiesand Workflow Technologies

Authors: Natasa Ilic ([email protected]) Zeljko Djuricic ([email protected]) Prof. Dr. Veljko Milutinovic ([email protected])

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What is E-Business?What is E-Business?• E-business is a use of Internet technologies to improve and transform key business processes

• Nowadays: “bricks and mortar” companies

• Future: “clicks and mortar” companies with competition only a "click" away

• Opportunity Today, Requirement Tomorrow

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Do We Need E-Business? Do We Need E-Business? • Can online technologies help me reduce costs?

• How can I use information for a competitive advantage?

• Can improved information management help me increase revenue?

Cost savings

Revenue growth

Customer satisfaction

• Goals:

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EE--BBusiness usiness IInfrastructurenfrastructure

• E-business infrastructure consists of the hardware, software products, and services needed to build, run, and manage e-business applications.

If your Web site isn't available, you don't exist

Slow performance will discourage customers from visiting your Web site.

People won't want to do business with you if you're not secure.

If you can't store/protect/manage the exploding volume of e-business data, then your e-business is out-of-business.

• Problems:

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Division ofDivision of Solutions Solutions • Configuration (IT Resource) and Operations Management Solutions

• Security Management Solutions

• Storage Management Solutions

• Performance & Availability Management Solutions

Application Management Solutions

Network & Systems Management Solutions

Web Management Solutions

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Overview of Solutions Overview of Solutions

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ConfigurationConfiguration & & OperationsOperations MS MS • Centralized control for managing entire IT asset base and all activities across diverse and distributed environment.

Manage software distribution - distribute, install, and manage mission-critical applications on target locations from a central point.

Support remote control - control desktops, servers and execute distributed applications across heterogeneous systems from one location.

Schedule Workload - automatically manage workloads.

Manage enterprise inventory - automatically scans for and collects hardware and software inventory information across enterprise networks.

Help server-based data centers to realize optimal delivery of information.

• Tasks:

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Security MSecurity MS S Integrated family of products that:

• Effectively protect information from threats and malicious attacks,

• Provide secure access for customers, prospects and partners by:

Managing user accounts across platforms, Control the privacy of personal data, and Managing authentication and authorization policies

• Have policy-based, role-based, and automated security options to furnish customized levels of validation

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StorageStorage MMS S

• Access,

• Protection,

• Recovery:

Migrate files, Take care of available space.

• Manage storage across hardware and network systems (SAN)

Replicate and back up mission-critical information, Restore information from an alternate location, Implement a disaster-recovery scenario at any time.

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Performance & Availability Performance & Availability MSMS

• Am I providing the highest level of service? • Is performance and availability up to par? • Do I need to grow my e-business infrastructure?

• Tasks:

Application Management Solutions

Web Management Solutions

Network & Systems Management Solutions

• Kinds:

Measure and analyze performance

Monitor the health of IT components

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ApplicationApplication MSMS• Downtime costs when employees are idle due to unavailability of applications required for their job functions

• Example: 5 min // user calls Help Desk to complain of a problem

+ 60 min // user waits for a technician to arrive

+ 5 min // gathering information about problematic desktop

+ 10 min // the technician’s trying to resolve a problem

OR

= (80 x n) min // the technician discovers that the fault is not on the desktop but somewhere else, or needs a software patch, or a hardware component back in the data center.

= 80 min // the technician resolved the problem

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Web MS Web MS

Web servers,

Application servers, and

Middleware

• Web infrastructure:

Ensuring site's optimum performance and availability

Monitoring the demands on your Web infrastructure

Analyzing actual customer experience

Maintain security while operating outside firewall

• Tasks:

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• Lisa gives Karen access to the Web Services Manager, where she has deployed two Quality of Service monitors:

At the entrance to the portal, At the new integrated checkout page

• This allows Karen to see real customer’s experience in real-time, from her browser

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• Karen is alerted to the fact that the average time for the page to be delivered to the customers has nearly doubled.

• Upon investigation Karen finds that the back-end systems are fine, but render time of the portals welcome page is dramatically slower than over the first week.

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• When the Site Investigation is complete, Greg discovered that one of his teams members has updated the new animated logo on the page

• He reverts the graphics and republishes the Web page

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• Greg uses QoS monitor to see if his changes have had the desired effect.

• He configures a QoS job to look just at the portal URL, with very quick sampling rate to get results immediately.

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• With the use of Web Services Manager QoS monitor, Karen notices a progressive slow down in the performance of the new integrated checkout page.

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• Lisa uses Synthetic Transaction Investigator (STI) to examine the checkout pages

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• Lisa looks at the Web Component Manager screen to identify the endpoints associated with the checkout page

• She sets a memory monitor on the server (with very short sampling interval)

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• Lisa uses the real-time

reporter to zoom on to the

failing endpoint to see

a memory usage graph.

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• Lisa decides that solution is to initiate a reboot of the failing machine.

• Using Web Component Manager, she chooses: The failing endpoint, The reboot task to run immediately.

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• Lisa checks the Web Server Availability monitor to determine if the server is back online

• She goes back to the Synthetic Transaction Investigator real-time graph and checks the response time

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Network & Systems MS Network & Systems MS

Customized installations, Specialized skills, Dedicated hardware, or Lengthy implementation cycles

• Hidden costs of some solutions:

Provide everything a network administrator needs to diagnose, resolve, and evaluate the performance of specific resources

Provide the system analyst with detailed performance information across all levels of the infrastructure

Keep systems running at peak efficiency

Keep networks reliably and availably

• Tasks:

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Network Availability Network Availability • Available network = fully operational network

• The most obvious impact on the company bottom-line

• Annual revenue of $200 million

• Example:

• An enterprise dependent on the network availability

1% improvement in availability = $2 million increase in revenue

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Is network available?

No Yes

Applications are available to users all the time

Customers cannot get what they want

There is no money

Life goes as usual

There is profit

Personal and material satisfactionMake it betterMake your network

more available

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Time Is MoneyTime Is Money• Change in the availability rate makes a considerable difference in terms of actual time:

- 97% availability translates to 263 hours of downtime a year- 99% availability gives 87.66 hours of downtime a year- 99.99% availability still means 52 minutes of downtime a year

• One hour of downtime can be worth millions of dollars in today’s networked global economy

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How To Chose Right MS?How To Chose Right MS?• Vendors need to provide:

Real product demos, Clear answers on FAQ, and Customer references.

• Fundamentals a worthy management solutions:

Scalability

Reliability

Openness

Agility

Security

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Existing SolutionsExisting Solutions

Companies need a management solutions they can count on:

• HP OpenView MS

• IBM Tivoli MS

• CA Unicenter MS

• Scala eBusiness MS

• Etc.

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Do You Need These Tools? Do You Need These Tools?

• No • Yes

Situation in your company

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Workflow TechnologiesWorkflow Technologies

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What Is a Workflow? What Is a Workflow? • Workflow instance (workflow): Current execution of single business process

• Workflow management system (WfMS): Execution platform for a workflow

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• During a workflow, documents, information or tasks are passed from one participant to another according to rules, routes, and roles.

Routes - paths that tasks flow from one participant to the other.

Roles - associated with certain participants.

Rules - govern the actions of the participants.

What Is a Workflow?What Is a Workflow?

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Workflow Meta Model Workflow Meta Model

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Workflow Meta Model Workflow Meta Model • Workflow Process Definition: which tasks need to be executed, in what order, and by whom.

• Workflow Process Activity: description of a piece of work Implemented as: - Atomic activity

- (Sub)process

• Transition Information: the flow of control between activities

• Workflow Participant Definition: the performer of an activity

• Workflow Application Definition: applications assigned to an activity

• Workflow Process Relevant Data: needed data

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Workflow Point of ViewWorkflow Point of View

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Processing of Business TasksProcessing of Business Tasks

• Decomposing complex business tasks into activities (human task)

• The coordination of activities (automated by WfMS)

• Processing activities at workplaces (automated by WfMS)

Build time:

Run time:

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Real (Physical) WorkplaceReal (Physical) Workplace

• Work item (activity instance): elementary unit of work assigned to workplace

• Actor: performs the work at a workplace (human or machine)

• Tools & applications: applied when work items are executed

• Business objects: being manipulated during the execution of work items

Characteristics:

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Virtual WorkplaceVirtual Workplace• Aims at the autonomy of workplaces:

Independence of space (where)

Independence of time (when)

Independence of actors (who)

Independence of implementation (how & with what means)

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Workflow Management SystemsWorkflow Management Systems

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Workflow Management SystemsWorkflow Management Systems

• Definition:

Workflow management system (WfMS) is a group of software systems designed to provide computerized support for modeling (the build time) and executing (the run time) workflows.

• Automate and track dynamic business processes (workflows).

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WfMC Reference Model WfMC Reference Model WfMC - Workflow Management Coalition

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• Workflow enactment service - provides the run-time environment

• Workflow engine - handles selected part(s) of the workflow instance

• Process definition tools - define, model, document, and analyze

• End-user via workflow client application requests services from the engine for performing manual activities

• Invoked application - invoked by the WFMS to perform automated activity

• Administration & monitoring tools - used to control the workflow

WfMC Reference Model WfMC Reference Model

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Workflow InteroperabilityWorkflow Interoperability• Distributed (decentralized) workflows:

Process-based applications that can easily executein a wide area network environment (such as the Internet) across heterogeneous platforms and environments

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Typical FeaturesTypical Features

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WfMS GoalsWfMS Goals

• Define • Control

• Measure

• Analyze & Improve

• Integrate

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Process Definition ToolProcess Definition Tool

• What

• How

• By whom

• With what means

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TTypical Features…ypical Features…

• Simulation, Prototyping and Piloting

• Task Initiation and Control

• Rules Based Decision Making

• Document Routing

• Invocation of Applications to View and Manipulate Data

• Worklists

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……Typical Features Typical Features

• Task Automation

• Event Notification

• Process Monitoring

• Access to Information over the World Wide Web

• Tracking and Logging of Activities

• Administration and Security

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Administration & Core Business Administration & Core Business • Work items are presented to the actor via a worklist handler

• Worklist maintains details of the work items allocated to a workplace

• Invoked applications perform core business actions (task automation)

• WFMS provides administrational support (workflow automation)

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Administrational ActionsAdministrational Actions

Administration actions

During preparation Between work processing During after treatment

• Managing worklists

• Providing the relevant data

• Invocation of tools and applications

• Supporting suspension and resumption of work

• Reassigning work

• Transmission of relevant data

• Workload balancing

• Archiving monitored data

• Transformation of relevant data

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Enabling Virtual WorkplacesEnabling Virtual Workplaces

• During run time a WFMS has to map an addressed virtual workplaces on one or more physical workplaces.

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A Virtual Enterprise ScenarioA Virtual Enterprise Scenario

• Virtual enterprises - temporary networks of legally independent enterprises

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Workflow Oriented InformationWorkflow Oriented InformationSystemsSystems

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Special RequirementsSpecial Requirements

Workflows must be:

• Able to cope with continuous changes without having to stop the business process,

• Scalable and integrate existing or create new applications that provide the implementation for fully or partly automated tasks of an enterprise.

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Architecture of ISArchitecture of IS

Manual activity, e.g. scheduling by phone

Partly automated activity e.g. data input in the RIS for patient’s admission

Fully automated activity, e.g. call of communication services

Integrating legacy systems

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Components of IS Components of IS • Workflow management components deal with the flow of work of one or more workflows

• Invocational components deal with the invocation of participants

• Activity oriented components provide the implementations of activities

Worklist handler generates worklists

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Main BenefitsMain Benefits

• Shifting the automation boundary

• Easier adaptation to changes in the workflows and in the workplaces

• Facilities for integration of legacy application systems in a heterogeneous application landscape

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Design of a Hospital ISDesign of a Hospital IS• Exchange of information for the treatment of patients between wards and department of radiology equipped with a radiology IS

Patient management: - Appointment between the ward and the department (manually) - Entry in the department information system (partly automated)

Performance of examination: - Examination (manually using medical devices) - Documentation (partly automated: dictation and print-out)

Transfer of findings

• Parts of workflow:

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BenefitsBenefits

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The Key Benefits The Key Benefits

• Organizational Change Flatter organizational structure Greater team orientation

• Process Change Business process reengineering (BPR) Business process improvement

• Improved Access to Information Build corporate knowledge Understand history & current status of the process

• Improved Security and Reliability

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A Closer Look to a BPR A Closer Look to a BPR

• Minimize Process Time

• Maximize Value Added Content

• Maximize Flexibility at the Initial Point of Contact

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To Minimize Process TimeTo Minimize Process Time • Reduce the number of participants in a process

• Reduce the maximum completion time of each task

• Reduce “handoff” time to transfer work between tasks

• Reduce maximum queuing time

• Increase the number of tasks running in parallel

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To Maximize Value Added ContentTo Maximize Value Added Content

• Apply standard workflow routes, roles, and rules automatically to each new case

• Provide participants with immediate, on-line access to all information

• Enable continual tracking and notification

• Eliminate costs associated with paper documentation

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To Maximize Flexibility To Maximize Flexibility

• Provide multiple access options

• Capture customer data only once

• Support distributed transaction processing

• Enable ad-hoc, flexible workflow to tailor the process to the customer’s needs

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Trade-Offs & DangersTrade-Offs & Dangers

• Worker Resistance

• Overmanagement

• Loss of Flexibility

• Technical Implementation Costs

• Costs of Defining Complex Processes

• Creation of New Work

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Choosing the Right Process Choosing the Right Process

• Processes that will find advantage in:

• Typical candidates:

Document intensive

Include lots of hand-offs among participants

Require high process integrity

Automation and control

Integration of those processes across enterprise

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Success FactorsSuccess Factors

• Speed

• Cost

• Accuracy

• Quality

• Customer Satisfaction

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Steps of Implementing WfMSSteps of Implementing WfMS

• Focus on business objectives

• Focus first on projects that are well understood

• Use metrics

• Obtain support of upper management

• Obtain support of staff

• Integrate with current systems and new systems

• Implement in phases

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Technical OverviewTechnical Overview

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Types of ProcessesTypes of Processes

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Four Main CategoriesFour Main Categories

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Production Workflow SystemsProduction Workflow Systems

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General General • Software designed to automates business processes that are: Repetitive,

Highly structured with almost no variations,

Characterized by high transaction rate of work items.

• Typical examples:

Mortgage loan processing.

Insurance underwriting and claims processing.

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Loan ProcessingLoan Processing

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ApplicationsApplications

• Digitizing and routing paper documents

Benefits: - Saving storage space - Huge acceleration of the business process

• Routing any data

Special requirements: - Interface to electronic subsystems - Executing in real business time

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FeaturesFeatures • Advantages:

Run in a wide range of network and computing environments,

Great customization,

A lot of functions.

• Disadvantages: Very expensive,

Require expensive application development,

Require integration services from an external consultant.

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Administrative Workflow SystemsAdministrative Workflow Systems

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GeneralGeneral

• Administrative workflow corresponds to case-driven process but with well-defined structure

• The products contained herein are stand-alone tools that route documents (electronic forms and file attachments) over existing email systems

• Typical examples: Travel expense account processing Purchase order processing

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FeaturesFeatures • Advantages:

Messaging is based on an existing email system => low-cost Minimum of training and customization

• Disadvantages: Not as comprehensive and flexible as production workflow

• Parts: Electronic messaging technology, Forms management, and Database management.

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Ad-Hoc Workflow SystemsAd-Hoc Workflow Systems

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GeneralGeneral • Designed to support ad-hoc and unstructured business processes:

- Minimal preplanning (structure cannot be predicted),- Few participants, - Simple routing rules being redefined from day-to-day depending on what works.

• E-mail - transport mechanism for routing work

• “For-your-information” routing

• Typical example: routing for comments or approvals

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FeaturesFeatures • Goals: - Quickly and easily creating and modifying process definitions, - Fast activation of business processes, - Maximizes flexibility where throughput and security aren't major concerns

• Production workflow: the organization clearly owns the process • Ad-hoc workflow: users own their own processes

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Collaborative Workflow SystemsCollaborative Workflow Systems

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GeneralGeneral • Automation of unstructured or semi-structured team-based processes

• Handle one or two orders of magnitude less process instances per hour than production workflow systems

• Include a mechanism for sharing documents, data and user comments on work in progress

• Typical example: software development

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FeaturesFeatures • Automating work routing is less important than:

- Deadline management (rerouting work when deadlines are missed)

- Activity execution with possibility to delegate activity

- Pushing information to the user so that they can act upon it

- Status reporting

• Highest growth potential

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Division Based Upon Transport MechanismDivision Based Upon Transport Mechanism

• Document Based: SERfloware (SER) and WFX (Eastman Software)

• E-mail Based: InTempo (JetForm) and Microsoft Exchange

• Groupware Based: Lotus Notes, TeamWARE Flow (Fujitsu)

• Transaction Based: Eastman Software Enterprise Workflow

• Internet (Web) Based: Bizflow 2000, Visual Workflow, COSA , W4

Workflow Systems:

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Web-Based Workflow SystemsWeb-Based Workflow Systems

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Introduction & AdvantagesIntroduction & Advantages

• Web interface to WfMS

• Advantages:

Requires only:

Already existing infrastructure,

Readily expandable,

- WWW Internets/Intranets/Extranets,

- Web servers (offer the workflow services),

- Web browsers (on the user’s desktop),

- Workflow engines (determines routing and processing of work items).

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DDisadvantages & Improvementsisadvantages & Improvements

• High level of skill needed to develop and deploy the work process

• Security

• Difficult to access and update data from Web servers (support to B2B)

• Server/network failures and delays Solutions: - Providing special protocol,

- Optimizer.

• Insufficient efficiency Solutions: - Prefetching steps using emerging Web technologies (Java), - Utilize standard enhancements proposed for the Web infrastructure.

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Existing ProductsExisting Products • Bizflow 2000 (Handysoft)

• COSA Workflow (COSA Solutions)

• TeamWARE Flow (Fujitsu)

• Dolphin (Fujitsu)

• InTemp (JetForm)

• MQ/Series Workflow (IBM)

• SERfloware (SER)

• Staffware (Staffware Corp.)

• TIB/InConcert (TIBCO)

• Visual Workflow (FileNet)

• W4 (W4)

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The Future of WfMSThe Future of WfMS

• The major areas affecting the future of WfMS:

Customization

Structure of the Organization

E-Mail

Virtual Corporations

Web

E-Commerce

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An ExampleAn Example

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What Will You SeeWhat Will You See

• A process instance will be started up

• The activities that need to be carried out will be presented in different worklist handlers

• After execution of an activity, the case will be routed to the employees who are allowed to execute follow-on activity

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The Business ProcessThe Business Process

• Simplification of an insurance company

• Two kinds of activities that need to be carried out

- Hospital insurance- Car insurance

• When the risk of the hospital insurance is large, a control activity will be carried out by the supervisor

• When there are more cars involved, the insurance companies of the other cars involved, need to be informed

• Case cannot be closed before parallel sessions are finished

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SummarySummary • Facilitating management

• Freeing intellectual resources from routine and administrational work

• Effectiveness (doing the right things)

• Efficiency (doing the things right)

Authors: Natasa Ilic ([email protected]) Zeljko Djuricic ([email protected]) Prof. Dr. Veljko Milutinovic ([email protected])

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