Fundamentals of ECM System Architecture Certificate Program Workflow and Business Process Management Charlie Plesums, Au

1. Fundamentals of ECM System Architecture Certificate Program Workflow and Business Process Management Charlie Plesums, Austin, Texas USA www.plesums.comcharlie@plesums.com

2. Course Instructions • How will this course work? • We recommend viewing the entire course in one sitting • Use buttons on your viewer to Stop or Pause • Use the slide index on the left to Jump or move Forward/Backward within the course to learn at your own pace • You may Stop the course if you are interrupted and need to return later • Before proceeding, you may want to print handouts to take notes (click on the attachments button) • Please email questions about the course content to the instructor and general questions about the program to AIIM at education@aiim.org • The course will conclude with an exam covering the course materials

3. Overview of the Workflow/BPM series • Introduction to Workflow Management • Workflow technology • Business Process Management • Convergence of BPM and Workflow Management • Project implementation

4. Course 1 ObjectivesIntroduction to Workflow • What is workflow • Why bother • Benefits

5. What is Workflow • The automation of a business process, in whole or part, during which documents, information or tasks are passed from one participant* to another for action (activities), according to a set of procedural rules. *A participant may be a person or an automated process (computer system), and may be local or in a separate or remote organization.

6. What is Workflow (traditional) Business Process Defined in Managed by Training Army of Supervisors, Distribution Clerks Procedure Manuals Assigned as a Composed of Case (Process Instance) Passed Along by Manual Activities Automated Activities Consisting of Work Item(Activity Instance) Invoked Application

7. What is Workflow (automated) Business Process Defined in Managed by Sub-Process Workflow Management System Process Definition Assigned as a Composed of Case (Process Instance) Passed Along by Manual Activities Automated Activities Consisting of Work Item(Activity Instance) Invoked Application

8. Workflow management systems • Historical • Medieval – monks copying scriptures • Elder with unsteady hands does proofreading • Monk with artistic talent does illumination • Others do transcription • Manufacturing • Shop work-order systems • Manual “business process” (100 years of experience) • Army of managers and clerks • Informal procedure documentation • Expediters to recover from errors more

9. Workflow management systems • Automated (20 years of experience) • Control of procedures • Formal definition/documentation/enforcement • Note value for Sarbanes Oxley, etc. • Automatic distribution and tracking • Best person or machine does the work • Most important work done first • Parallel (concurrent) processes • Management focus on staff and business issues • Improved process • Better service • Lower operating costs

10. Why bother?

11. Workflow management systems Why bother • Done by the best participant • Performing all necessary tasks • Information easily accessible • Interface to data systems • Logging and tracking • Monitoring and Control

12. Work Management Done by the best participant • Case automatically assigned • Profile of each user (qualifications) • Prioritization by age, type of work • Multi-step routing, including parallel paths • Work suspended for arrival of information • Automatic matching and restart • Follow-up if information not received timely • Participant can be a person or “robot” • Robot sometimes called Straight Through Process more

13. Work Management Done by the best participant • Distribution of work • Pre-assigned – like paper, everything in an inbox • Not recommended; reassignment complex • Push (send work – system selects) • Work held in common queue until someone can process • Pull (user selects) • Not efficient, but necessary if someone “on the phone” • Process other tasks related to the work assigned • Time-based • “Call me back at 3 pm”

14. Work Management Performing all necessary tasks • Case consists of multiple activities • Invokes programs or program pieces • Manual processing steps • Completion • Status change controls flow (approved, reject) • Hold for later processing • Change flow for • Exceptions • Questions

15. Work Management Information easily accessible • Invoke applications • Terminal emulation (screen scraping) • Direct interface • Move data with workflow • Images, documents (XML), or links to same • Electronic data • Subset of processing data, not replication

16. Work Management Interface to data systems • No interface - used side by side • Minimal interface • Start key processing transactions • Auto enter basic data (e.g. contract number) • Popular with users, low cost • Integration with process • Slow to implement using older systems • Expensive to maintain more

17. Work Management Interface to data systems • Legacy systems invoke workflow • Embedded workflow in the applications • Workflow invokes legacy systems • Autonomous workflow drives the application • EAI technology - Enterprise application integration • Custom integration to older systems • Web based, 3 tier, other new technologies

18. Work Management Logging and tracking • Typical systems provide • Automatic processing history • Date, time, person, disposition for each step • User comments • Explanation of variance, special circumstances • Search for work in process • Response to outside query – e.g. customer phone call • Determine status of work • If qualified, “select” and process work

19. Work Management Automated monitoring • Reporting and analysis (after the fact) • Work accomplished • Total volume • Turn-around time • Productivity of individuals, teams, groups • Errors and error rates • Monitoring (real time) • Supervisor dashboard, control panel • User controlled alarms

20. Work Management Control • User controlled workflow • Table driven • Maintained/controlled by users (supervisors) • System controlled workflow • Custom program, tailored to requirements • Maintained by information technology • Administrative functions • User profiles - qualifications • Priority exceptions, manual assignments

21. Benefits?

22. Why do it? Benefits - 3 categories • Direct Cost Savings • Readily measured • Hidden Savings • Hard to measure, but real • Intangible Benefits • Cash value cannot be identified • Valuable to the business

23. Benefits - 1. Direct Cost Savings • Better use of staff (or reduction in staff) • Sorting, delivery, assignment • Logging and tracking • Reporting • Reduced training • Expediters to recover from problems • Typical savings often inadequate to justify… • Clerical productivity • Office facilities

24. Why do it? Benefits - 2. Hidden SavingsCash value real but hard to measure • Better control of work • Best person handles each item • Urgent work first, hard cases can’t get buried • Management • Assignment automated • Status, analysis, quality more

25. Why do it? Benefits - 2. Hidden SavingsCash value real but hard to measure • Professional productivity • Often ignored – “doing the same job” • Over 20% common due to automation alone • Often 50% or more with improved work flow • Tool for process improvement

26. Benefits - 3. Intangible Cash value not known • Improved Service • Employee satisfaction • Better decisions - (how far do you check) • Organizational options • Decentralization • Cross-dept. assistance • Security • No misplaced work; priority enforced • Audit trail • Privacy - access control

27. Course 2 ObjectivesWorkflow Technology • Types of workflow • Workflow standards • Interfaces in workflow systems

28. Workflow Technology Types of Workflow • Ad-hoc, collaborative • Workflow defined for each use • Negotiations (can you ... by Friday) Provides Convenience, Control • Production • Pre-defined, prioritized (supports high volumes) • Revisions during the processing • Special requirements, multiple requests • Consultations Provides Control, Productivity (Saves costs)

29. Workflow Technology Horizontal vs. Vertical • Horizontal workflow • Most common type • Moves work through the organization(s) • Vertical workflow • Directs processing at each step • Guidance to beginners • Automatically invokes programs • Can be totally automated (no operator)

30. Workflow Technology Free-standing or within application • Embedded • Part of a business application • Optimized for that application • Normally can’t choose different workflow • Autonomous (stand-alone) • Separate “desktop” system • Optimize for total business requirements • Supports many business applications

31. Workflow Technology Workflow Standards • Reference Model • The big picture - how the pieces fit • Abstract specifications • What functions and data are involved • Bindings • Specific implementations, formats, protocols WF/XML is an XML binding of the Interoperability specification that is Interface 4 of the WfMC Reference Model

32. Workflow Technology Workflow Reference ModelThe components of a workflow system Generally a workflow engine interfaces to 1. Process definition a. Procedures b. Resources (person, system, or set of…) 2. Client interfaces (applications invoke workflow) 3. Invoked applications (workflow invokes programs) 4. External workflow services (interoperability) 5. Administration and Monitoring

33. B C Workflow Technology Workflow Reference Model Process Definition Tool 1 Workflow EnactmentServices Admini-stration & Monitoring A1 Other Workflow Enactment Service(s) A2 4 5 Workflow Engine(s) Vendor A 2 3 Workflow Client Application Invoked Applications Courtesy of the Workflow Management Coalition, of which AIIM is a member

34. Workflow Technology Process Definition • Standard format for process definition • Define the process with separate tool • Modeling and Simulation products • Load the defined process into workflow tool • Exchange of process definitions • WfMC interface 1 • Working Group 1 for process definition • Working Group 9 for resources

35. Workflow Technology Application InterfacesTie process management to the process • Applications invoke workflow • Embedded workflow systems • User interface to enterprise workflow • WfMC Interface 2 • Workflow invokes applications • Minimal – invoke the initial program or transaction • Extensive – populate data on multiple screens • WfMC Interface 3 • WAPI - combines both - Workflow Applications Programming Interface more

36. Workflow Technology Application InterfacesTypical uses • Related documents • Image system, fax, document management • Electronic mail • Data record (collection, renewal, follow up) • Legacy data systems • Workflow knows customer, type of work • Users expect it to (at least) invoke initial application • Vertical workflow – detailed process management • EAI - Enterprise Application Integration

37. Workflow Technology External Services • Interfaces between workflow systems • Dissimilar systems within an enterprise • Between different enterprises • WfMC Interface 4 • MIME binding - using e-mail technology • Wf-XML - using XML technology • Usage… • Macroscopic - e.g. order a product • Microscopic - e.g. check individual items in an order

38. Workflow Technology Administration and Monitoring • WfMC Interface 5 • History of each case • Person/processor, date, time, action… • For reporting, auditing • For process control (e.g. dual approvals) • Monitoring of the total • Snapshot: Backlog, status • History: Productivity

39. Course 3 ObjectivesIntroduction to BPM • What is it • Components of BPM • Key Technologies for BPM • This sounds like workflow!

40. What is BPM • Isolate the process management to a separate layer • Rules based processes • Invoke other participants to perform work • Remove control from the processing applications • Rigid custom “stove-pipe” solutions out • Reduce need of each application to “be in charge” • Management focus on the process • Establish, document, refine the process • Monitoring the performance of the process • Monitoring the participants in the process

41. Caveat • New technology • Many zealots – “my way is the only way” • Conflicting terminology • This will try to use neutral terminology(but all the good words have been used)

42. Components of BPMEmerging Business Process Management • Modeling – define/document the process • Management – perform the process • Machine processes – system interfaces • People processes – workflow management • Monitoring (real time) • Measurement (reporting after the fact) • Forecasting

43. Modeling • Define/document the process • Often graphical • May include simulation • Legal & operational value of process definition • Sarbanes Oxley and others more

44. Modeling • Modeling tools • From specialized vendors • May allow analysis to a more sophisticated level • May be difficult to implement • From Process Management vendors • Focus on using the best of the process manager engine • Easiest to implement • May not be as analytical as specialized tools

45. Management • Perform (Invocation engine) • Assign work to participants • Manage concurrent processing when possible • Prioritize work that cannot be processed at once • Track work that has been suspended • Assign for follow up if no activity • Activate (assign) work when conditions are met • Data received • Related process completed more

46. Management • Participants • Systems • Internal systems through • EAI-like technologies • Application servers • External or internal systems through • EDI or web based technologies • Custom interfaces • People • Workflow • People – number, skills, performance • Quality checking and management • Service requirements

47. Management • What if the process cannot be extracted from the “stovepipe” legacy systems • Invoke by BPM if possible • Treat the process by the legacy system as a single process • Report completion to BPM/Workflow • Report exceptions to BPM/Workflow • Look for opportunities to re-architect

48. Monitoring (real time) • Backlog of work • Meet service requirements? • Scheduling of people (individual roles, overtime) • Personnel Management • Productivity • Quality, Training • Systems • Performance, capacity, reliability

49. Measurement (reporting after the fact) • Compliance • Regulatory • Service levels • Projections • Adjust to business changes • Personnel, work unit • Performance • Career management, roles

50. Forecasting • BPM does not do strategic planning • Use reporting to discover opportunities, threats