©amit mitra & amar gupta business information technology process architecture the automating...
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©Amit Mitra & Amar Gupta
BUSINESS
INFORMATION TECHNOLOGY
PROCESSArchitecture
THE AUTOMATING AGILITYChange Management
Human Resources
©Amit Mitra & Amar Gupta
Course No.: ENTR/MAP 459/559Instructors: Dr. Amar Gupta, Tel: 520-626-9842, Email: [email protected]
Amit Mitra, Tel: 973-462-6783 Email: [email protected]
Text Book Agile systems with reusable patterns of business knowledge – a Component Based Approach
by Amit Mitra and Amar GuptaOrder at :
http://www.amazon.com/exec/obidos/tg/detail/-/1580539882/qid=1132006267/sr=2-1/ref=pd_bbs_b_2_1/103-5257187-0319859?v=glance&s=books
ADDITIONAL MATERIALS AND NOTES ARE AVAILABLE ON THE WEBhttp://next.eller.arizona.edu/courses/Accelerating_buss_process_engg/index.aspx
Instructions on accessing the materials are in the book
©Amit Mitra & Amar Gupta
1.BOOK FROM ARTECH HOUSE: http://www.amazon.com/exec/obidos/tg/detail/-/1580539882/qid=1132006267/sr=2-1/ref=pd_bbs_b_2_1/103-5257187-0319859?v=glance&s=books
OR http://www.sprybiz.com AND FOLLOW THE LINK FROM THIS PICTURE OF THE BOOK
2.UNIVERSITY OF ARIZONA WEBSITE DESCRIBED IN THE BOOK3.BOOK FROM CAMBRIDGE UNIVERSITY BEING RELEASED IN AUGUST 2006:
http://www.cambridge.org/ 9780521851637, ISBN: 05218516374.CALL ME: [email protected], [email protected]; [email protected] Tel: 973-462-6783
©Amit Mitra & Amar Gupta
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS THRIVES ON CHANGE– INTENSE COMPETITION, GLOBAL SUPPLY CHAINS– INCREASING REGULATION– NEW OPPORTUNITIES, THREATS– EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS– OBSTACLE TO CHANGE– MULTIPLICITY OF IMPACT– COST
• LOST TIME = MISSED OPPORTUNITY
©Amit Mitra & Amar Gupta
STRATEGIES FOR SUCCESS
LOW COST PROVIDERPRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
©Amit Mitra & Amar Gupta
DESIRED IMPACT
Strategy
InformationTechnology
People andProcesses
Strategic
Develop and control a strategy to deliver customer and shareholder value
Performance Improvement
Make the business more effective in meeting the demands of its customers: innovative products, lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are applied to the business systems to allow them to support the creation of customer and shareholder value
Become the ‘Implementor of Business Transformation’ through focused entry points with innovation and thought leadership
•Consulting Services•I/T Software Products
©Amit Mitra & Amar Gupta
CheapLabor?
LeverageKnowledge?
Hire talented people?
OBJECTIVES• Be the ‘Implementer of Business Transformation’
through focused entry points • Achieve high quality of I/T products & Services at low
cost• Lead Change and innovation ?
? ?
HOW?
Process?
©Amit Mitra & Amar Gupta
IT EVOLUTION
MachineCode
HardwareAssembler
Code3GL
FunctionalDecomposition
DataModels
ObjectsComponents
BPM
•Meanings are abstract patterns of information(What is the meaning of Pattern?)•Can we “normalize” meanings, configuring each from others?
1950 1960 1970 1980 1990 2000
SOA
©Amit Mitra & Amar Gupta
Build business components to facilitate
Speed Power
Deliver World ClassBusiness SystemsComponents to
customers’ in supportof their need forspeed, agility and
power, in a dynamicbusiness environment,constantly pressured
by change andinnovation
Agility
• Agile business processes• Speedy business processes • Power in the marketplace
• Compress Systems Development Timelines
• Use fewer resources
©Amit Mitra & Amar Gupta
AUTOMATED SYNTHESIS OF BUSINESS KNOWLEDGE FROM REUSABLE COMPONENTS
• ORGANISATIONS AROUND THE WORLD SPEND BILLIONS REDESIGNING SYSTEMS– To address evolving customer expectations– Support business innovation– Leverage new technology– Support changes in the business environment
• THE SOLUTION: reuse business knowledge, to realize enormous cost, effort, time to market savings
©Amit Mitra & Amar Gupta
MAIN THEME• It is necessary and possible to integrate knowledge, process & systems
to do this
• The time has come to standardize reusable business knowledge components and automate the synthesis of resilient business processes and agile information systems
MY BACKGROUND• Practitioner
– R&D in Process Improvement, IT Strategy and Enterprise Architecture
• Chief Methodologist – AIG• Director of Architecture – NYNEX• Manager Information Systems Planning, NYNEX subsidiary• Manager, Architecture and e-commerce KPMG• Black Belt – Six Sigma
©Amit Mitra & Amar Gupta
Schedule• Mondays and Wednesdays
–9 AM to 12 Noon• Spring Break
–No classes March 13 and 15–Classes resume March 20th–Today’s Agenda (3/6):
•1: Introduction and quick overview of what you will learn•2: First Principles
–The characteristics of information and the business problem we will address–Our scope, intent and approach–What is a model?–The role of factual information within the architecture of knowledge–Basic components of our model; Metamodels and the story of Metanesia
©Amit Mitra & Amar Gupta
ORGANIZATION OF TODAY’S LESSON
1. CONCEPT AND SCOPE
2. INTRODUCTION TO THE SEMANTICS OF KNOWLEDGE (METAMODEL )
3. INTRODUCTION TO REUSABLE COMPONENTS OF BUSINESS KNOWLEDGE
4. EXAMPLES OF AUTOMATED KNOWLEDGE REUSE
5. BENEFITS
©Amit Mitra & Amar Gupta
THE PROBLEM - ADAPTABILITY• BUSINESS THRIVES ON CHANGE
– INTENSE COMPETITION, GLOBAL SUPPLY CHAINS– INCREASING REGULATION– NEW OPPORTUNITIES, THREATS– EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS, HOWEVER…– ARE AN OBSTACLE TO CHANGE– MULTIPLICITY OF IMPACT– COST
• LOST TIME = MISSED OPPORTUNITY• THE SOLUTION IS..
– TO ADAPT TO MOVING TARGETS…– BY OPERATING ON THE PLANE OF MEANING TO…– SEAMLESSLY INTEGRATE AND AUTOMATE ALIGNMENT BETWEEN BUSINESS KNOWLEDGE,
BUSINESS PROCESS AND INFORMATION SYSTEM. • By recognizing that each is an EXPRESSION of the other, and may be derived from the other.
•Knowledge is malleable
•Its use fosters new learning & innovation
The industrial manufacturing paradigms have
limited validity in the global knowledge economy
This happens becauseTherefore
©Amit Mitra & Amar Gupta
Business Space
Solution Space
System
Req
uir
em
en
ts
Desig
n
Gen
era
tion
Business
Domain
Specification
CASE tools and Information Systems delivery start here.
What HowShared
Patterns of Business & real World Knowledge
Reusable patterns of business knowledge, business semantics, operations, tactics, strategy
CAPE tools and Value
Chains start here.
Reusable Requirements
“Consider that an enterprise is a thinking entity…many of these thoughts exist as business rules” - Barbara von Halle
Our book starts here...
©Amit Mitra & Amar Gupta
Executive Management
Functional Management Department Management
System Architect’s View IT Strategist’s View
Chief Developer’s View
Market and Industry Responsi-veness
Product and Service Level Adaptability
Product & Service Level Functional Suitability
User Level Adaptability
User Level
Functional Suitability
Delivery Consistency
DECREASING IMPACT ON BUSINESSMOST BUSINESS VALUE ADD
Business Unit & Operations Management
Programmer’s View
Intra-organizational Coordination, Communication and Alignment
Key business values derived from business process engineering
LEAST BUSINESS
VALUE ADD
©Amit Mitra & Amar Gupta
TRADITIONAL STANDARDS HAVE HAD LIMITED BUSINESS RELEVANCE
System Architect’s ViewStrategic View
Chief Developer’s View
DECREASING IMPACT ON BUSINESSVALUES- ADDED
Component technology has
focussed on technology
knowledge, not high value business
knowledge
Programmer’s View
Miss-ion
Vis-ion
Go-als
Service Levels
Strat-egies Process
Data
Applic-ation
BUSINESS KNOWLEDGE INFORMATION TECHNOLOGY KNOWLEDGE
COMPONENT ENGINEERING HISTORICAL FOCUS
COMPONENT ENGINEERING REQUIRED FOCUS
Presen-tation Session Net-
work
DataTrans-
portData Link
PhysicalComponents
©Amit Mitra & Amar Gupta
The Architecture of Knowledge
TECHNOLOGY RULES
INTERFACE RULES(HUMAN & AUTOMATION)
INFORMATIONLOGISTICS
BUSINESSRULES
Vision
Proce
ssEve
nts
Value
Policy
/Stra
tegy
Excep
tions
Business Rules
Business Opportunityor
Environmental Change
Encapsulate and normalize common patterns of Business Knowledge
Objective
BUSINESSPROCESS
AUTO-MATION
BUSINESS
TECHNOLOGYPLATFORMOPERATION
©Amit Mitra & Amar Gupta
TECHNOLOGY RULES
INTERFACE RULES(HUMAN & AUTOMATION)
INFORMATIONLOGISTICS
BUSINESSRULES
Vision
Proce
ssEve
nts
Value
Policy
/Stra
tegy
Excep
tions
BUSINESSPATTERNS
DATA MOVEM
ENT
GUIs & F
ORMATTIN
G
COMPONENTS
Maintenance
PERFO
RMAN
CE OPTI
MIZ
ATION
COM
PONEN
TS
SPECIFICATION
Components
Performance optimized components for select platforms
ACTIVE PRODUCTION
COMPONENTS
ACTIVE PROTOTYPING
COMPONENTS
Components
Business Opportunityor
Environmental Change
BUSINESSPROCESS
AUTO-MATION
BUSINESS
TECHNOLOGYPLATFORMOPERATION
The Architecture of Knowledge
©Amit Mitra & Amar Gupta
Key Concepts & Assumptions
• Meanings are patterns of abstract information– May be configured from other meanings– Meanings are components, configured from components– May have one or more expressions
• Can automation manipulate meanings; operate on the plane of meaning?• Can innovation be automated?
KNOWLEDGE ARTIFACT Normalized,
reusable business knowledge
component or subassembly
• Business Knowledge is configured from meanings– If automation can manipulate meanings rather than blind code, business processes and information systems can become extremely flexible and
agile
RULE
Expression of RuleRULE MEANINGExpressed by 1 or more
[expression of 1]
Normal Form of expression
Subtype of
Equivalent to 0 or 1[equivalent to of 0 or more different]
Instance of
©Amit Mitra & Amar Gupta
The 80-20 rule of inventory management• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
FE
W
C O M M O N
RUL
E
S
L YR E U
SE
D
AR
C H I T E C T U RE
MO
ST
T
H
E
?? ??? ?
BUSINESS RULES
©Amit Mitra & Amar Gupta
However..
• Competitive advantage does NOT flow from standardization
• It flows from differentiation …and
• Standardization and differentiation are not in conflict. They complement each other..,
©Amit Mitra & Amar Gupta
BankingFi
nanc
ial S
ervi
ces
Focus on Commonality
ServiceEngagementSpace
Common Space forinteroperability standards& standard components
Focus on customvalue &
competitivestrength through
differentiation(Custom
Components)
focus on competitive advantage throughinteroperability and economic efficiency
(Broadly Reusable Components)
InsuranceGovernm
ent/Military
RE
US
AB
ILIT
Y
Standardization and differentiation are mutually complementary
(Easier to conceive)
(Abstract and hard to conceive)
RIS
K
©Amit Mitra & Amar Gupta
Tangible Objects, Processes & Mechanisms
Tangible Information Information Logistics,
Interface & Technology Layers
Abstract Meanings & Patterns that
unify
INFORMATION SPACE(A CONNECTING HUB)REAL
WORLD
INFORMATION SYSTEM
Crossing the Chasm from reality to information system
©Amit Mitra & Amar Gupta
METAMODEL OFBUSINESS KNOWLEDGE
PEOPLE & BEST PRACTICESPATTERNS OF BUSINESS
ORGANIZATION/PEOPLE
PROCESS & WORKFLOW
PHYSICALINFRASTRUCTURE
TOOLS INCLUDINGINFORMATIONTECHNOLOGY
BUSINESSSTRATEGY
PRODUCT & SERVICE
OFFERINGS
POLICIES, LEGISLATION,REGULATION
OUR APPROACH TO ABSTRACTION & KNOWLEDGE REUSE : THREE PILLARS
•The structure of information & abstract meanings
•Few universal facts re-used & repeated most often•Connect business functions & even businesses
•Manage Emotions unleashed by change•Best practices for governing change through directed evolution
GROUPING& INHERITANCE OFFACTS SHAPED BYTHE REAL WORLD
©Amit Mitra & Amar Gupta
METAMODEL OF KNOWLEDGE: CORE CONCEPTS
• The semantics of Pattern– Information content and structure
• The metamodel of abstract knowledge is based on– Semantics of information structure derived from “Pattern”– Contains the ontology and semantics of abstract components– A few key concepts
• Constraints convey information, reduce the freedom of a pattern• The Principle of subtyping by adding information• The Principle of Parsimony; mutability
– Temporal Objects have history– Domain captures the concept of “measurability”– The properties of objects emerge from their intersections with domains
• The metamodel of business process is a polymorphism of the generic metamodel of knowledge– Obtained by adding temporal information to “Relationship”– Semi and Unstructured processes– Governing processes
Time slice(a single state of an
instance of an object)
OBJECT CLASS
Present
Past
V1
V2
V3
V4
V1
V2
V3
V4
V1V1
V2V2
V3V3
V4V4
V1
V2
V3
V4
V1V1
V2V2
V3V3
V4V4
Inst
ance
Time Time
V1
V2
V3
V4
V1V1
V2V2
V3V3
V4V4
©Amit Mitra & Amar Gupta
A Domain
• Domains are non-temporal object classes– Class of values
• Eg: Length, mass, affinity/preference, gender etc.
“Value” includes•“Any” (i.e., “All”)•“Don’t Know”•“Null”
©Amit Mitra & Amar Gupta
Properties of objects emerge from their relationships with Domains
• Relationships between Domains create more complex domains, richer in information– Eg: Time vs Time difference, Money vs. Unit Price etc
• There are a few fundamental domains from which all other domains emerge
DOMAIN 3
DOMAIN 2
DOMAIN 1OBJ ECT 1
OBJECT 3
OB
JEC
T 4
attr ibute
attribute
attr ibute
attr
ibut
e
OBJECT 2
attr ibute
OBJECT 5
attr ibute
attr ibute
attr
ibut
e
attr
ibut
e
Eg: Mass
Eg: Length
Eg: Length
Eg: Width
©Amit Mitra & Amar Gupta
Business ProblemBusiness Problem
SolutionsSolutions
Solutions Components
Solutions ComponentsIndustry KnowledgeIndustry Knowledge
CompetenciesCompetencies
• Products/Services
• Core Methods & Techniques
• Support Center / Infrastructure
• Financial Services• Manufacturing• Retail• Distribution• etc..
Our Approach to patterns of reusable business knowledge: Combine industry knowledge with solution
components.
The Universal Perspective
©Amit Mitra & Amar Gupta
The Problem of Perspective
Is resolved by a universal ontology and patterns that capture and codify universally shared business knowledge in computer storable form
•Structured and unstructured•Implicit and explicit
©Amit Mitra & Amar Gupta
A FEW EXAMPLES OF GENERIC BUSINESS PATTERNS
• Shipment-Transportation Cluster• Document-Information Cluster• Tasks/Processes• Agreement & Ownership• Buying-Selling• Forging of products• Financial Cluster: Funding, Payments etc.
+ Many More
ALL PART OF AN INTEGRATED UNIVERSAL PATTERNTHE UNIVERSAL PERSPECTIVE
©Amit Mitra & Amar Gupta
Integrate & coordinate knowledge across the enterprise and Supply Chain
Source
MakeSell
Deliver
Use
AnalyzeAwaken/Envision
Design/Improve
SU PPO RT &HOSTING
(SUPP LIER S)P ROD UCTI ONOF PRODU CTS& SERV ICES
CORPOR ATERESELLERS
SHIPP ERS
V ALU E A DDEDRESELLERS
INSUR ERS & REIN SU RERS
FIN AN CERS
PU BLISHERS
DI STR IBUT ORS
END U SER S
RETA ILER
NET MA RKETAN ALYST
©Amit Mitra & Amar Gupta
The Business Knowledge Standard
• Standard Ontology of knowledge components
• Standard patterns (semantics) of widely reused knowledge configured from components
©Amit Mitra & Amar Gupta
BUSINESS KNOWLEDGE MANAGEMENT“The challenge is to exploit the changing business and technology
climate” - Judith Hurwitz
TECHNOLOGY RULES& CONSTRAINTS
INTERFACE RULES(HUMAN & AUTOMATION)
INFORMATIONSOURCING &
DISTRIBUTIONRULES
BUSINESSRULES
CORPORATE ELECTRONIC KNOWLEDGE REPOSITORY
(Patterns reused mostfrequently across enterprise)
Rule Main
tenan
ce
TECHNOLOGY RULES& CONSTRAINTS
INTERFACE RULES(HUMAN & AUTOMATION)
INFORMATIONSOURCING &
DISTRIBUTIONRULES
BUSINESSRULES
LOCAL ELECTRONIC KNOWLEDGE REPOSITORY
PatternExchange
Rule Main
tenan
ce
New/UpdatedApplication
TECHNOLOGY RULES& CONSTRAINTS
INTERFACE RULES(HUMAN & AUTOMATION)
INFORMATIONSOURCING &
DISTRIBUTIONRULES
BUSINESSRULES
LOCAL ELECTRONIC KNOWLEDGE REPOSITORY
Rule Main
tenan
ce
New/UpdatedApplication
Automated systems maintenance
PatternExchange
©Amit Mitra & Amar Gupta
USER’SPERSPECTIVE
USER’SPERSPECTIVE
GENERIC
COMPONENTS
CUSTOM
COMPONENTS
GENERIC
COMPONENTSGENERIC
COMPONENTS
CUSTOM
COMPONENTSCUSTOM
COMPONENTS
CONTENTS
PATTERNS
©Amit Mitra & Amar Gupta
An example of how business rules are assembled from meanings…
ship PRODUCT
TRUCK
Sh
ip on
shipORGANIZATION PRODUCTWeight Domain+
TRUCK
= + =ship
Weight
(SHIPMENT)
Unit of MeasureConversion Rules
PoundsKgs
Tons
Units of Measure
Measurement Unit of
0
Cannot be less than
8 tons
ORGANIZATION
Weight
Unit of MeasureConversion Rules Pounds
KilogramsTons
Units of Measure
Cannotbe lessthan 0
Unit of MeasureConversion Rules Pounds
KilogramsTons
Units of Measure
Cannotbe lessthan 0
INHERITED FROMWEIGHT DOMAIN
INHERITED FROMWEIGHT DOMAIN
NEW CONSTRAINT
Must be less than
8 tons
Must be less than
©Amit Mitra & Amar Gupta
Processpart of
Assemble(Resource) (Product)Component
Aggregate ObjectComponent
Aggregate Object
Assemble Car
Car Part(Resource)
Car(Product)
Subtype of(Polymorphism)
Subtypeof
Subtypeof
Sameobject
Sameobject
Subtype of(Polymorphism)
An example of how business processes are assembled from meanings
©Amit Mitra & Amar Gupta
An example of how domains are built from components
Subtype of
Subtype of
Subtype of
NOMINALDOMAIN
ORDINALDOMAIN
DOMAINS WITHNIL VALUES
DOMAINS WITHLOWER BOUNDS
UNKNOWNDOMAIN
ORDINAL DOMAIN WITHNIL VALUES
RATIO SCALED DOMAIN
Subtype of Subtype of
Subtype of Subtype of
DIFFERENCESCALEDDOMAIN
Subtype of
Subtype of
©Amit Mitra & Amar Gupta
A Knowledge Artifact is an abstract meaning
Formatting
RulesSequencing
RulesDisplayOBJECT
CLASS
INFORMATION
SOURCING
CONNECTION(OPTIONAL)
INCLUSION/EXCLUSION
SET(S)
Components of View
VIEW
ACTOR
Intersection of 0 or more
[Intersection of 0 or more ]Union of 0 or more
[Union of 0 or more ]
..which may be instantiated in an electronic repository
©Amit Mitra & Amar Gupta
The approach augments and integrates the Object, Business Rules and Process Paradigms
• By aligning it with the real world and adding the semantics of– Pattern
• Semantics of “structure”• Information structure and semantics of “Object”• Information Content of a meaning
– Measurability and Domain– Constraint– Process
• Adding Time to Relationship– History
• Which enables componentization of abstract meanings and• The standardization of a natural universal ontology of business
meanings and patterns
©Amit Mitra & Amar Gupta
The Benefits of Standardization
• The Metamodel of Knowledge and The Universal Perspective frame standards that will…– Speed
• Business process and systems integration across enterprises and supply chains• Development of object models and taxonomies with ready to use patterns• Data integration , normalization and database design• Prototyping and iterative design• Integration of legacy systems by providing a translation hub/information broker
– Facilitate• Automated alignment of business processes and information systems• Knowledge, CAPE and CASE tool integration• Evaluation of applications software• Identification of widely reused, highly resilient business knowledge and business process
components• Causal analysis
– Build• Agility and resilience into business processes, information systems, products and services
©Amit Mitra & Amar Gupta
Non-Adaptable
Systems
AutonomousSelf LearningSelf Adapting
EvolvingSystems
Lessversatile
INCREASIN
G ADAPTABILIT
Y
Moreversatile
Business Knowledge
Business Process
Computer Process
Automated Transform
Automated Transform
Adaptation Basedon conditionalRule Expressions
Business Rules
Adaptation Based on
Polymorphisms carved by
parameters of objects & Meanings
Knowledge Semantics + Patterns
Adaptation of
Governance Based on
higher order,
autonomous governance
Higher order governance Patterns & semantics
The Journey’s End: Automated Alignment
Which leads to..,
©Amit Mitra & Amar Gupta
Key Differentiators• Quality with Expediency
– Start with packaged proof of Concept prototypes
– Scenario based approaches allows for identification of major requirements in significantly less time than traditional methods
• Value – Ready made Knowledge artifacts reduce cost, speed time to market
• Don’t re-invent the wheel
• Bring best of breed solutions to bear rapidly on every process reengineering problem
– Guarantees generation of deliverables that are value evident ( i.e., “No Fluff!”)
– Translation techniques result in analysis and design documents that are truly meaningful to the target audience rather than a compendium of buzzwords