A brief introduction into organizations' process approach, process management and BPMN

1. Fundamentals
of
Business Process Management
and
BPMN
Gregor Polančič, 2016

2. Agenda
• Introduction
• What is a Business Process
• Business Processes Lifecycle
• BPMN basics for process modeling
• BPMN beyond process modeling

3. Introduction
Fundamentals of Business Process Management

4. What do you see on the picture?
4
A business unit, i.e. a company

5. What is the focal objective of a company?
5
Profit

6. How does a company achieves profit?
6
Profit
Goods /
Services
Value creation Generate returns

7. What does a company need to create value?
7
Resources

8. What is money?
8
This means we can
buy resources.

9. Can we buy Everything?
9
“There are some things money can't buy /…/”

10. A company can’t buy …
10
Capabilities
Capabilities need to be established and evolved.

11. Are people resources or capabilities?
Both
We can hire a
person.
A person has to
be trained and
educated.

12. Are resources and capabilities related?
12
Capabilities coordinate, control and deploy resources.

13. 13
B. Orand, Foundations of IT Service Management: The ITIL Foundations
Course in a Book, 3rd ed. CreateSpace Independent Publishing
Platform, 2011.

14. Business Process
Fundamentals of Business Process Management

15. What is a business process?
A set of activities that are performed in coordination in an organizational
and technical environment and jointly realize a business goal.

16. Processes are assets
• Business processes are organizational assets that are central to creating value for
customers.
• An “asset” represents any item of economic value owned by an individual or corporation,
especially that, which could be converted into money.
Goods /
Services
Customer

17. Business process types
• Operational processes,
• processes that constitute the core business and create
the primary value stream (purchasing, manufacturing,
marketing, sales, …).
• Management processes,
• processes that govern the operation of a system
(corporate governance, strategic management, …).
• Supporting processes,
• processes which support the core processes (accounting,
recruitment, technical support, …).
17

18. Main characteristics of business processes
• Process goals
• Process leader
• Process (time-based) start and end
• Process inputs and outputs
• Process steps
• Process performance monitoring
• Process stakeholders
• Continuous improvement
18

19. Processes should be managed and …
• By measuring, monitoring, controlling, and analyzing business
processes, a company can deliver consistent value to customers and
has the basis for process improvement.

20. … continuously improved
• Business processes should be continuously improved.
• Processes are capabilities  they need to evolve.

21. IT is an essential enabler
• Information technology is an essential enabler for (managing)
business processes.
• Processes are intangible assets  IT perfectly manages them.
Goods /
Services×

22. Business Process Lifecycle
Fundamentals of Business Process Management

23. BPM Lifecycle
• The management of business
processes (i.e. taking care of
them) consists of a set of
interrelated activities organized
in a cycle.
• Cycle represents continual
improvement.
Define
Model
Simulate
Implement
Execute
Monitor
Analyze
Optimize
Gartner's BPM Lifecycle

24. Process definition
• “Each company runs processes -
some are aware of them.”
• Identification and definition of
existing processes based on:
• Process results (products and services
a company offers),
• Documentation (informal and formal
process descriptions)
• Interviews and/or observations of
employees (process participants)
•  input for the modeling phase
Define
Model
Simulate
Implement
Execute
Monitor
Analyze
Optimize

25. Define
Model
Simulate
Implement
Execute
Monitor
Analyze
Optimize
Process modeling
• Processes are intangible  we cannot
manage them directly.
• Natural languages are inappropriate for
process descriptions!
•  We need to model processes in order
to work with them.
• “All models are wrong, but some are
useful.“ [George E. P. Box]
• To take full potential out of process
modeling, we need to use a standardized
notation.
•  input for the simulation,
implementation and analysis.

26. Define
Model
Simulate
Implement
Execute
Monitor
Analyze
Optimize
Process simulation
• “Simulation is the imitation of the
operation of a real-world process.”
• What can or should be simulated?
• Execution time
• Execution costs,
• Resources allocation, etc.
• Simulated vs. real-world process
• Faster
• Cheaper
• More flexible
•  input for the modeling phase
•  input for the implementation phase

27. Define
Model
Simulate
Implement
Execute
Monitor
Analyze
Optimize
Process implementation
• Prepare a business process for being
executed.
• Obtain and prepare process resources
• Get and train people how to perform a
process’s tasks,
• Implement and/or configure IT support for
a process,
• Acquire and prepare required process
information.
• Integrate the process with other processes
(process chain).
•  input for the execution phase

28. Define
Model
Simulate
Implement
Execute
Monitor
Analyze
Optimize
Process execution
• Execution of process instances.
• “A process instance represents one
specific case of a process that is
currently executing.”
• Process execution means that
process‘s tasks are performed
• Manually by humans
• Computer assisted
• Automatically by IT

29. Define
Model
Simulate
Implement
Execute
Monitor
Analyze
Optimize
Process monitoring
• Tracking of individual process
instances
• State information (e.g. order
arrived, awaiting delivery, invoice
paid),
• Key performance indicators (e.g.
lead time),
• Identification of bottlenecks.
• Compare of monitoring results
against requirements, e.g.
Service Level Agreements (SLA)

30. Define
Model
Simulate
Implement
Execute
Monitor
Analyze
Optimize
Process analysis
•  based on modeling, simulation
and/or monitoring phase
• SWOT analysis - identification
of potential or actual process
• Strengths
• Weaknesses
• Opportunities
• Threats
•  input for the optimization phase
•  input for process re-definition
(new cycle)

31. Define
Model
Simulate
Implement
Execute
Monitor
Analyze
Optimize
Process optimization
• Process optimization adjusts a process
in order to optimize (improve) some
specified set of parameters without
violating some constraint.
• Optimization goals:
• Minimizing costs,
• Maximizing throughput,
• Improving resources allocation,
• Remove bottlenecks.
• Process optimization creates greater
business value.

32. Define
Model
Simulate
Implement
Execute
Monitor
Analyze
Optimize
Continuous process improvement
• “Quality is a never ending quest”
• Continuous process
improvement is a way to
permanently improve quality of
process outcomes:
• products,
• services.

33. BPMN basics for process
modeling
Fundamentals of Business Process Management

34. What is BPMN?
• Business Process Model and Notation
• Business Process - A collection of related,
structured activities or tasks that produce a
specific service or product for a particular
customer.
• Model –a representation of a business
process.
• Visual proces model – process diagram
• Non-visual proces model (e.g. executable process
model)
• Notation – a set of elements (language) + rules
used for representing a business process in a
business process model (diagram).
34
Customer request
Business process
Process outcome
Task Task Task
Task
Content for the model
‚Alphabet‘ for the model
The current BPMN version is 2.0.2, released in January 2014.

35. Why BPMN?
 Standardized. The de-facto standard in
process modeling.
 Open. Created and controlled in an open
and fair process.
 Simple & complete. Can be used in a simple
or detailed way.
 Learnable. Based on previous notations.
 Interchangeable. Capable of being
interchanged between IT solutions.
 Executable. Capable of being automated.
Standardization
enables
communication.
Openness enables
transparency and
democracy.
Simplicity and
learnability enable
acceptance and
popularity.
Interoperability
enables humans and IT
collaboration.
Automation improves
process’s efficiency
and consistency.

36. Primary goal of BPMN
• BPMN 2.0 specification, 1st chapter, 1st paragraph: “The primary goal of BPMN is to provide a
notation that is readily understandable by all business users /…/. Thus, BPMN creates a
standardized bridge for the gap between the business process design and process
implementation.”
BPMN model
User request received
User request analyzed
User request approved
User request rejected
User
Real-world process
Process modeler
Business users
(process participants)
Process implementation

37. In Scope of BPMN
Business process modeling
• Diagrams (e.g. process diagrams,
collaboration diagrams).
• Syntax, semantics and visual
appearance for process elements
(e.g. events, activities and
gateways).
• Attributes and properties of the
semantic elements represented by
the graphical process elements.
• Formats for exchanging diagrams.
Business process execution
• Execution semantics.
• Formats for exchanging
executable models.
• Support for BPMN and BPEL
process engines.
37

38. A BPMN 2.0 model example
A worker performs his work and if
a problem occurs, he calls the
help-desk center.
The help-desk center receives the
call and tries to solve the
problem. If no solution if found in
the database, an expert is
involved.
An expert receive a message
which interrupts his work in order
to find a solution, which is
afterwards returned to the help-
desk center.

39. Main types of BPMN 2.0 models
Process models - represent a specific process
in an organization as a graph of Flow
elements.
Collaboration models - represent interactions
between two or more processes.
Choreography models – represent between-processes
interactions and message flows.
Conversation models - represents conversations
between participants.

40. BPMN 2.0 Process and collaboration models
• Most common in BPMN.
• Supported by the majority of BPMN tools.
• Used for modeling
• Private or internal processes
• Public processes
• Collaborative processes
• Use a common set of BPMN elements on
three “precision” levels
• Basic or descriptive
• Analytic
• Executable

41. BPMN Process Modeling Elements
• BPMN diagrams are ‘graphs’ of BPMN elements.
• BPMN elements have defined:
• Syntax – rules about how to use BPMN elements in BPMN diagrams.
• Semantics – meaning of BPMN elements.
• BPMN elements may have:
• Visual representation.
• Visual and non-visual attributes.
41
Categories of
(visual) BPMN
elements
Data Connections Flow objects
Events Activities Gateways
Swimlanes Artifacts
Comment

42. BPMN activities
• An activity is a generic type of work that an individual or company
performs.
• An activity can be:
• atomic (task) or
• compound (process, sub-process) – uses a “+” sign.
Atomic activity or Task
Compound activity or
Sub-process

43. BPMN gateways
• A gateway is used to split or merge multiple process flows. Thus it
determines branching, forking, merging and joining of business
process’s paths.
Forking process flow
with a Gateway
Alternative process flow
- No
Alternative process flow
- Yes

44. • An event is something that »happens« during the process.
• Basic (descriptive) events can start a process, as well, they occur at
the end of a process.
BPMN events
An event which starts
(instantiates) a process
“Negative” process end
“Positive” process end

45. Other basic BPMN elements
• Swimlanes (e.g. a Pool) are used to define and organize processes.
• Artifacts (e.g. a data object or document) are used to provide additional
information about processes.
• Connecting objects (different types of arrows) connect elements in a logical order.
A Pool defines
boundaries of a process
A “document” defines information
which is managed within a process
A solid arrow
defines the
sequence of a
process
A dotted arrow defines the
information flow.

46. Full Set of Process Modeling Elements
None
Message
Timer
Error
Escalation
Cancel
Compen-
sation
Conditional
Link
Signal
Terminate
Multiple
Multiple
paralel
Start Intermediate
End
Event sub-pr. Boundary
Inter.
Non-
inter.
Inter.
Non.
Inter.
Catc
hing
Thro
wing
User Task
Send Task
Rule
Task
Service Task
Receive Task
Script
Standard Loop
Parallel multiple
instance
Sequential multiple
instance
Compensation
Ad-hoc
Global (call) Activity
Sub Process (collapsed)
Event-based Sub Process
Transaction
Sub Process (expanded)
Task Task
Manual Task Exclusive
XOR
Inclusive
OR
Parallel
Event based
Exclusive
Event-based
start
Parallel
Event-based
start
Complex
Annotation
Group
Documentation
Sequence flow
Default flow
Conditional flow
Message flow
Association
Directed/data association
Data object
Data
store
Message
Data input
Collection
Data output
Initiating
message
Pool
Lane Lane Lane
Full class
Analytical class
Descriptive
class

47. BPMN beyond process modeling
Fundamentals of Business Process Management

48. BPMN Meta-model
• Meta-model is a formal specification of:
• semantic BPMN elements (most of them
have visual representations) and
• relationships between semantic BPMN
elements.
• Meta-model is represented in UML’s
class diagrams.
• (semantic) BPMN elements are
represented as object classes with defined
required and optional attributes.
• All valid BPMN models must conform to
the specification of the meta-model.
48
M1: Instance of a model
Metadata instances e.g. Mark’s invoice
M2: Model
Metadata Schema
e.g. BPMN data object
representing an Invoice
M2: Meta-model
Schema definition languages
e.g. BPMN Meta-model for
Data Object
M3: Meta-meta-model
Universal modeling language
MOF Meta-Levels Hierarchy(Silver 2011)

49. BPMN Meta-model Example: Data Object
49
BaseElement is the abstract super
class for most BPMN elements. It
provides the attributes id and
documentation, which are inherited
other elements (classes).
Inheritance relationship.
DataObject is an
Item Aware
Element.
DataObject
might have Data
states (e.g. draft,
in review, final).
Each element might have
documentation attached to it.
The DataObject element
inherits the attributes
and model associations
of FlowElement and
ItemAwareElement.
Meta-model defined in UML’s
class diagram notation.
isCollection attribute
defines if the Data
Object represents a
collection of elements.
Data Object References are a
way to reuse Data Objects in
the same diagram.
Classes are organized in
packages (e.g. foundation).

50. BPMN Layered Structure
• The BPMN specification is
structured in layers (i.e. packages
of classes, where a class
represents a semantic BPMN
element).
• A semantic element might have a
visual representation or not.
• Each layer defines a subset of
BPMN semantic elements and
models.
• Each layer builds on top of and
extends lower layers.
• Process modeling with BPMN
includes elements and diagrams,
which belong to all layers except
choreography.
50
Basic BPMN elements,
which are common to all
BPMN models.
This layer defines
elements, specific for
Conversation diagrams.
Elements, which belong to
yellow layers are specific
for process diagrams.
Layer of elements,
which are specific for
choreography models.
This layer defines
elements, specific for
Collaboration diagrams.
Choreography layer IS NOT part of
process modeling conformance.

51. BPMN Diagram Interchange (DI)
• BPMN DI describes the location and
size of shapes and connectors as well
as the linked page structure of BPMN
diagrams.
• BPMN DI Meta-model is similar to
BPMN’s semantic meta-model.
• The BPMN DI is meant to facilitate
interchange of BPMN diagrams
between tools rather than being used
for internal diagram representation by
the tools.
• BPMN diagram consists of
• BPMN DI meta-model information,
• BPMN semantic meta-model
information.
(Silver 2011) 51
DI::Labeled Shape
BPMNShape
isHorizontal:boolean [0..1]
isExpanded:boolean [0..1]
isMarkerVisible:boolean [0..1]
isMessageVisible:boolean [0..1]
participantBandKind:participantBandKind
:[0..1]
-memberName
BPMNLabel
BPMN::BaseElement
shape
0..1
label 0..1
shape
*
bpmnElement0..1
1
0..1
Referenced BPMN
element, which
defines the
semantic of BPMN
element.
BPMNShape
represents a
depiction of
a BPMN
element.
BPMN DI Shape meta-model.
BPMNShape
also contains
an optional
label of type
BPMNLabel.

52. BPMN Serialization
• BPMN Meta-models (semantic and DI), which are
represented in class diagrams, are published (i.e.
serialized) in two alternative XML formats:
• OMG’s Metadata interchange (XMI) and
• W3C’s XML Schema Definition (XSD).
• Most BPMN tool vendors use XSD for interchanging
models.
• Cannot represent certain relationships of UML class
diagrams (e.g. multiple inheritance).
• Transformations between XSD and XMI exist.
• Defined in XSLT.
• In BPMN XSD, the information concerning the
graphical layout of shapes (e.g. position, size,
connection points) is separated from the semantic
model.
• A valid BPMN model may omit the graphical
information of a BPMN model completely.
(Silver 2011) 52
BPMN20.xsd
Semantic.xsd BPMNDI.xsd
DI.xsd
DC.xsd
BPMN 2.0 schema file structure
Semantics of a
BPMN model.
Graphical
layout of a
BPMN model.

53. BPMN Execution Semantics
• Part of BPMN Process Execution Conformance.
• Not required for BPMN Process Modeling Conformance.
• Describes a clear and precise understanding of the operation of BPMN
‘executable’ elements.
• Common executable subclass of BPMN elements defines basic ‘executable’ BPMN elements.
• Those BPMN elements, capable of being executed on a process engine.
• Non-operational elements examples: manual task, ad-hoc process and abstract task.
• BPMN execution semantics defines:
• Process instantiation and termination,
• Flow elements (activities, gateways, events) behavior,
• Execution semantics includes:
• A description of the operational semantics of the element.
• Exception issues for the element where relevant.
• List of workflow patterns supported by the element where relevant.
53

54. BPMN Execution Semantics: Activity Lifecycle
54
An activity is ready for
execution if the required
number of tokens is available to
activate the activity /…/.
When some data InputSet
becomes available, the Activity
changes from Ready to the
Active state /…/.
An Activity, if Ready or Active,
can be Withdrawn from being
able to complete in the context
of a race condition /…/.
An Activity’s execution is
interrupted if an interrupting
Event is raised or if an
interrupting Event Sub-Process
is initiated. In this case, the
Activity’s state changes to
Failing (in case of an error) or
Terminating (in case any other
interrupting Event).
If an Activity’s execution ends
without anomalies, the
Activity’s state changes to
Completing /…/.
If an Activity fails during
execution, it changes from the
state Active to Failed.
After all completion
dependencies have been
fulfilled, the state of the Activity
changes to Completed /…/.

55. Recommended and used literature
• M. Dumas, Fundamentals of business process
management, 1st ed. New York: Springer, 2013.
• M. Weske, Business process management concepts,
languages, architectures. Berlin; New York: Springer,
2012.
• B. Silver, BPMN method and style: a structured approach
for business process modeling and implementation using
BPMN 2.0. Aptos: Cody-Cassidy Press, 2011.
• J. Freund and B. Rücker, Real-Life BPMN: Using BPMN 2.0
to Analyze, Improve, and Automate Processes in Your
Company, 2 edition. CreateSpace Independent Publishing
Platform, 2014.