Business process interoperability

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Business process interoperability (BPI) is a property referring to the ability of diverse business processes to work together, to so called "inter-operate". [1] It is a state that exists when a business process can meet a specific objective automatically utilizing essential human labor only. Typically, BPI is present when a process conforms to standards that enable it to achieve its objective regardless of ownership, location, make, version or design of the computer systems used.

A business process or business method is a collection of related, structured activities or tasks by people or equipment which in a specific sequence produce a service or product for a particular customer or customers. Business processes occur at all organizational levels and may or may not be visible to the customers. A business process may often be visualized (modeled) as a flowchart of a sequence of activities with interleaving decision points or as a process matrix of a sequence of activities with relevance rules based on data in the process. The benefits of using business processes include improved customer satisfaction and improved agility for reacting to rapid market change. Process-oriented organizations break down the barriers of structural departments and try to avoid functional silos.

Automation use of various control systems for operating equipment

Automation is the technology by which a process or procedure is performed with minimal human assistance. Automation or automatic control is the use of various control systems for operating equipment such as machinery, processes in factories, boilers and heat treating ovens, switching on telephone networks, steering and stabilization of ships, aircraft and other applications and vehicles with minimal or reduced human intervention.

Standardization or standardisation is the process of implementing and developing technical standards based on the consensus of different parties that include firms, users, interest groups, standards organizations and governments. Standardization can help maximize compatibility, interoperability, safety, repeatability, or quality. It can also facilitate commoditization of formerly custom processes. In social sciences, including economics, the idea of standardization is close to the solution for a coordination problem, a situation in which all parties can realize mutual gains, but only by making mutually consistent decisions. This view includes the case of "spontaneous standardization processes", to produce de facto standards.

Contents

Overview

The main attraction of BPI is that a business process can start and finish at any point worldwide regardless of the types of hardware and software required to automate it. Because of its capacity to offload human "mind" labor, BPI is considered by many as the final stage in the evolution of business computing. BPI's twin criteria of specific objective and essential human labor are both subjective.[ citation needed ]

The objectives of BPI vary, but tend to fall into the following categories:

Information silo

An information silo, or a group of such silos, is an insular management system in which one information system or subsystem is incapable of reciprocal operation with others that are, or should be, related. Thus information is not adequately shared but rather remains sequestered within each system or subsystem, figuratively trapped within a container like grain is trapped within a silo: there may be a lot of it, and it may be stacked quite high and freely available within those limits, but it has no effect outside those limits. Such data silos are proving to be an obstacle for businesses wishing to use data mining to make productive use of their data.

Software as a service is a software licensing and delivery model in which software is licensed on a subscription basis and is centrally hosted. It is sometimes referred to as "on-demand software", and was formerly referred to as "software plus services" by Microsoft.

Regulation is an abstract concept of management of complex systems according to a set of rules and trends. In systems theory, these types of rules exist in various fields of biology and society, but the term has slightly different meanings according to context. For example:

Business process interoperability is limited to enterprise software systems in which functions are designed to work together, such as a payroll module and a general ledger module that are part of the same program suite, and in controlled software environments that use EDI. Interoperability is also present between incompatible systems where middleware has been applied. In each of these cases, however, the processes seldom meet the test of BPI because they are constrained by information silos and the systems' inability to freely communicate among each other.

Interoperability is a characteristic of a product or system, whose interfaces are completely understood, to work with other products or systems, at present or in the future, in either implementation or access, without any restrictions.

A system is a group of interacting or interrelated entities that form a unified whole. A system is delineated by its spatial and temporal boundaries, surrounded and influenced by its environment, described by its structure and purpose and expressed in its functioning. Systems are the subjects of study of systems theory.

Middleware computer software that provides services to software applications

Middleware is computer software that provides services to software applications beyond those available from the operating system. It can be described as "software glue".

History

The term "Business process interoperability" (BPI) was coined in the late 1990s, mostly in connection with the value chain in electronic commerce. [2] [3] BPI has been utilized in promotional materials by various companies, and appears as a subject of research at organizations concerned with computer science ontologies.

A value chain is a set of activities that a firm operating in a specific industry performs in order to deliver a valuable product for the market. The concept comes through business management and was first described by Michael Porter in his 1985 best-seller, Competitive Advantage: Creating and Sustaining Superior Performance.

The idea of the value chain is based on the process view of organizations, the idea of seeing a manufacturing organization as a system, made up of subsystems each with inputs, transformation processes and outputs. Inputs, transformation processes, and outputs involve the acquisition and consumption of resources – money, labour, materials, equipment, buildings, land, administration and management. How value chain activities are carried out determines costs and affects profits.

Despite the attention it has received, business process interoperability has not been applied outside of limited information system environments. A possible reason is that BPI requires universal conformance to standards so that a business process can start and finish at any point worldwide. The standards themselves are fairly straightforward—organizations use a finite set of shared processes to manage most of their operations. Bringing enterprises together to create and adopt the standards is another matter entirely. The world of management systems is, after all, characterized by information silos. Moving away from silos requires organizations to deal with cultural issues such as ownership and sharing of processes and data, competitive forces and security, not to mention the effect of automation on their work forces.

While the timetable or adoption of BPI cannot be predicted, it remains a subject of interest in organizations and think tanks alike.

Testing for BPI

To test for BPI, an organization analyzes a business process to determine if it can meet its specific objective utilizing essential human labor only.

The specific objective must be clearly defined from start to finish. Start and finish are highly subjective, however. In one organization, a process may start when a customer orders a product and finish when the product is delivered to the customer. In another organization, the same process may be preceded with product manufacture and distribution, and may be followed by management of after-sale warranty and repairs.

Essential human labor includes:

To qualify for BPI, every process task must be taken into account from start to finish, including the labor that falls between the cracks created by incompatible software applications, such as gathering data from one system and re-inputting it in another, and preparing reports that include data from disparate systems. The process must flow uninterrupted regardless of the underlying computerized systems used. If non-essential human labor exists at any point, the process fails the test of BPI.

Achieving BPI

To assure that business processes can meet their specific objectives automatically utilizing essential human labor only, BPI takes a “service-oriented architecture“ (SOA) approach, which focuses on the processes rather than on the technologies required to automate them. A widely used SOA is an effective way to address the problems caused by any disparate system that is the heart of each information silo.

SOA makes practical sense because organizations cannot be expected to replace or modify their current enterprise software to achieve BPI, regardless of the benefits involved. Many workers' jobs are built around the applications they use, and most organizations have sizable investments in their current information infrastructures which are so complex that even the smallest modification can be very costly, time-consuming and disruptive. Even if software makers were to unite and conform their products to a single set of standards, the problem would not be solved. Besides software from well-known manufacturers, organizations use a great many legacy software systems, custom applications, manual procedures and paper forms. Without SOA, streamlining such a huge number of disparate internal processes so that they interoperate across the entire global enterprise spectrum is simply out of the question.

To create an SOA for widespread use, BPI relies on a centralized database repository containing shared data and procedures common to applications in every industry and geographical area. In essence, the repository serves as a top application layer, enabling organizations to export their data to its distributed database and obtain the programs they need by simply logging on via a portal. To assure security and commercial neutrality, the repository conforms to standards promulgated by the community of BPI stakeholders.

Organizations and interest groups that wish to achieve business process interoperability begin by establishing one or more BPI initiatives.

See also

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References

  1. ↑ Christina Tsagkani (2005) "Inter-Organisational Collaboration on the Process Layer". Proceedings of the IFIP/ACM SIGAPP INTEROP-ESA conference, February 23–25, Geneva, Switzerland, Springer Science publisher. Tsagkani states:
    Business process interoperability is characterised as the ability of business activities of one party to interact with those of another party, whether or not these business activities belong to different units of the same business or to different businesses.
  2. ↑ Asuman Doğaç ed. (1998) Workflow Management Systems and Interoperability. Springer-Verlag New York. Dimitrios Georgakopoulos and Aphrodite Tsalgatidou discussed the
    ...need to manage the business process lifecycle effectively, i.e., to perform business process management. and ways how interoperability between WFMSs and BPMTs can provide complete support for the management of the entire business process lifecycle.. (p. 358)
  3. ↑ Derek Leebaert (1999) The Future of the Electronic Marketplace. p. 297. Leebaert acknowledged that
    Achieving a robust electronic marketplace will require new concepts that promote "business process interoperability."

Further reading

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