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Executive Briefing

Simulation as a service to business process management (BPM)
Preparing for BPMN 2.0:
an integrated view of second generation simulation
                            Abstract                                            Definition of BPM
                            The global economic meltdown of the late            BPM is an all-encompassing term that covers
                            2000s exposed poor internal processes               business automation and/or IT-based efficiency
                            within many organisations around the world.         strategies. Industry analyst Gartner defines
                            Previously unshakeable institutions went to         BPM as: ‘a management discipline that treats
                            the wall and every indicator, from house prices     processes as assets that directly contribute to
Increasingly looking        to the number of unemployed, was on a               enterprise performance by driving operational
for ways to reduce          downward trend.                                     excellence’.
working capital by
                            As companies begin their slow recovery, they        In the words of analyst Forrester, the main
improving operational       are increasingly looking for ways to reduce         power of SOA ‘is unleashed by BPM’. Used
agility and by linking      working capital by improving operational agility    correctly, and within a strict governance
silos of information with   and by linking silos of information with modern     model, BPM provides an environment in which
modern web-based            web-based services. They are also searching         organisations can integrate processes and
services.                   for ways to gain competitive edge through the       services – but also transform their applications
                            introduction of Internet-based collaborative        in line with business change.
                            processes including slicker sales channels,
                            more efficient finance processes, tighter supply    It is for this reason that BPM and SOA are such
                            chains and better workflow management.              hot topics currently. Economic recession brings
                                                                                enormous pressure to bear on organisations
                            As a result, the market for business process        that are trying to survive. It’s a time when costs
                            management (BPM) is growing as the need for         are cut dramatically, either directly or through
                            operational savings and efficiencies drives the     the introduction of more efficient processes.
                            need to rework business processes. BPM has          The combination of BPM and SOA helps to
                            long been recognised as a toolset for designing     achieve results with less risk and within a more
                            processes. But it is now taking on a new role       predictable timeframe – and the addition of
                            as the lead component within broader SOA            simulation software to the mix can only improve
                            implementation projects.                            this situation.

                            In this paper we examine the changing use
                            of simulation as a service to BPM: how can
                            simulation be used in the wider context of
                            business improvement and agility?
                            What are the implications of the introduction of
                            BPM Notation (BPMN) 2.0 and how close are
                            we to using simulation to intelligently optimise
                            business processes?

                            We also explain the role that Lanner’s simulation
                            software will play in the development of next
                            generation BPM.
Executive Briefing
                             Simulation moves centre stage within                 users by providing a notation that is intuitive to
                             design                                               business users yet able to represent complex
                             Traditionally, process simulation has most often     process semantics. The BPMN specification
                             been used within BPM as a design confirmation        also provides a mapping between the graphics
The introduction of BPMN     or ‘pathology’ tool. This is largely for technical   of the notation to the underlying constructs
2.0 will be a further        reasons: quite simply it has not been either         of execution languages, particularly Business
                             sufficiently convenient to use or integrated         Process Execution Language.
stimulus to the growth and   within a design toolset.
adoption of simulation                                                            Much of the effort put into BPMN 2.0 has
                             Process simulation therefore normally acts as an     focused on making the diagrams executable
                             optional standalone package that can be used         on a process engine. With BPMN 2.0 it is
                             adjacent to, rather than as a standard part of,      now possible to have different perspectives
                             BPM toolsets.                                        on a design/redesign, from high level business
                                                                                  oriented views to detailed technical views.
                             However, organisations are beginning to
                             recognise that the same principles that apply        The importance of BPMN 2.0 is that there
                             to simulation in physical design can now be          is now standardisation and the opportunity
                             applied to BPM. There is significant evidence        to exchange information between tool sets,
                             from other areas of design (such as product          as well as between business analysts and IT
                             development) that 80% of the costs are               implementers.
                             committed within the first 20% of the time spent
                             in design or redesign.                               The introduction of BPMN 2.0 will be a
                                                                                  further stimulus to the growth and adoption
                             A corollary to this is that late changes in          of simulation: the twin barriers of a difficult,
                             design (especially after release) cost orders of     technical user interface and a discrete tool set
                             magnitude more to correct than making the            that stands alone from programming tools will
                             same changes early in the design/redesign            both now be removed.
                             process. Using simulation up front within
                             design/redesign makes the assessment of              Significance of L-SIM 2.0
                             alternatives viable and supports the early           Lanner is a world leader in simulation software
                             identification of issues - and hence fewer costly    and is ahead of the market when it comes to
                             late changes or sub-optimal designs.                 providing simulation as a service to BPM. L-SIM
                                                                                  is already the most popular and functional
                             One such case was recently presented by the          native BPMN1.2 simulation on the market.
                             German national railway Deutsche Bahn.               It is supported by Lanner’s simulation savvy
                             DB Netz manages and maintains the 34,000km           development team and used by a range of
                             of track on Germany’s railways. It used BPM          leading toolset providers.
                             combined with simulation to optimise the fault
                             clearing process at regional division RB East        L-SIM 2.0 is the latest version of Lanner’s
                             and to increase train punctuality.                   performance proven BPMN simulation engine.
                                                                                  L-SIM 2.0 is a BPMN 2.0 native and compliant
                             In its presentation*1 it describes how simulation    simulation engine. As such it can simulate
                             of the current process identified the complex        high level business oriented views and detailed
                             interactions that were resulting in long waiting     technical views.
                             times. It then goes on to show how simulation
                             provided a risk free environment in which to         The Experimentation and Optimisation
                             evaluate options, finding savings of 28%, 28%        framework that is part of L-SIM 2.0 adds further
                             and 37% in the first three critical steps of the     value by automating the process of searching
                             process chain.                                       for the best solution within user-defined goals.
                                                                                  For example, this may involve optimising a
                             The impact of BPMN 2.0                               process to make the most effective use of
                             Another driver for simulation in BPM is the          your most highly valued resources or selecting
                             development of Business Process Modelling            between processes to deliver the best customer
                             Notation (BPMN) 2.0. Developed under the             experience*2.
                             guardianship of the Object Management Group
                             (OMG), BPMN 2.0 is a standard for business           L-SIM 2.0 is configured as a RESTful service.
                             process modelling, and provides a graphical          Representational State Transfer (REST) has
                             notation for specifying business processes in a      gained widespread acceptance across the
                             business process diagram (BPD).                      Web as a simpler alternative to SOAP and
                                                                                  Web Services Description Language (WSDL)
                             BPMN 2.0 is based on a flowcharting technique        based Web services. Mainstream Web 2.0
                             very similar to activity diagrams using Unified      service providers, including Yahoo, Google,
                             Modeling Language (UML). The objective of            and Facebook, have now adopted REST as an
                             BPMN overall is to support business process          easier-to-use, resource-oriented model.
                             management for both technical and business
Executive Briefing
                             BPM/SOA toolset providers can now simply             As such, it represents the most cost effective
                             integrate the full functionality of BPMN             and convenient way for BPM/SOA suppliers to
                             simulation: all that’s needed is an http: call and   deliver leading edge simulation as part of their
                             a suitably configured BPMN 2.0 exchange file.        toolsets.
                             L-SIM 2.0 also supports the scalability and
                             computing power of cloud computing.                  Summary
                             L-SIM 2.0 can be considered as the first of          The BPM market is growing quickly, and
                             a second generation of BPM simulation. The           is being driven by the business imperative
                             first generation of BPM simulation focused           for process improvement and the stimulus
                             on the ‘stress testing’ of already designed          to adoption provided by BPMN 2.0. Using
                             processes. It has little capability to perform       simulation up front in business process design/
                             the experimentation needed to compare and            redesign will offer significant benefits to a broad
                             optimise process alternatives.                       range of industry sectors - L-SIM 2.0 now
                                                                                  makes that viable.
L-SIM 2.0 can be
considered as the first of   L-SIM 2.0 differs from earlier forms of              References:
a second generation of       simulation in two important aspects                  DB Netz presentation*1 available at
BPM simulation.                                                                   http://www.lanner.com/en/case-study.
                             1.It delivers a simulation experimentation           cfm?theCaseStudyID=BC8A68E1-15C5-F4C0-
                               framework in which to explore process              993950D4C05BE859
                               alternatives, manipulate and optimise
                               variables to achieve improvements in high          Questions attributed to Derek Miers
                               level business goals.                              BPMFocus*2

                             2.It provides robust simulation capabilities
                               that can be easily connected to the existing
                               range of desktop tools and the new breed
                               of lightweight web-based toolsets through
                               its support of the BPMN 2.0 notation
                               and RESTful services. This opens up the
                               opportunity of simulation led process design
                               to a broader range and size of organisations.

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BPMN 2.0 Simulation Exectuive Briefing

  • 1. Executive Briefing Simulation as a service to business process management (BPM) Preparing for BPMN 2.0: an integrated view of second generation simulation Abstract Definition of BPM The global economic meltdown of the late BPM is an all-encompassing term that covers 2000s exposed poor internal processes business automation and/or IT-based efficiency within many organisations around the world. strategies. Industry analyst Gartner defines Previously unshakeable institutions went to BPM as: ‘a management discipline that treats the wall and every indicator, from house prices processes as assets that directly contribute to Increasingly looking to the number of unemployed, was on a enterprise performance by driving operational for ways to reduce downward trend. excellence’. working capital by As companies begin their slow recovery, they In the words of analyst Forrester, the main improving operational are increasingly looking for ways to reduce power of SOA ‘is unleashed by BPM’. Used agility and by linking working capital by improving operational agility correctly, and within a strict governance silos of information with and by linking silos of information with modern model, BPM provides an environment in which modern web-based web-based services. They are also searching organisations can integrate processes and services. for ways to gain competitive edge through the services – but also transform their applications introduction of Internet-based collaborative in line with business change. processes including slicker sales channels, more efficient finance processes, tighter supply It is for this reason that BPM and SOA are such chains and better workflow management. hot topics currently. Economic recession brings enormous pressure to bear on organisations As a result, the market for business process that are trying to survive. It’s a time when costs management (BPM) is growing as the need for are cut dramatically, either directly or through operational savings and efficiencies drives the the introduction of more efficient processes. need to rework business processes. BPM has The combination of BPM and SOA helps to long been recognised as a toolset for designing achieve results with less risk and within a more processes. But it is now taking on a new role predictable timeframe – and the addition of as the lead component within broader SOA simulation software to the mix can only improve implementation projects. this situation. In this paper we examine the changing use of simulation as a service to BPM: how can simulation be used in the wider context of business improvement and agility? What are the implications of the introduction of BPM Notation (BPMN) 2.0 and how close are we to using simulation to intelligently optimise business processes? We also explain the role that Lanner’s simulation software will play in the development of next generation BPM.
  • 2. Executive Briefing Simulation moves centre stage within users by providing a notation that is intuitive to design business users yet able to represent complex Traditionally, process simulation has most often process semantics. The BPMN specification been used within BPM as a design confirmation also provides a mapping between the graphics The introduction of BPMN or ‘pathology’ tool. This is largely for technical of the notation to the underlying constructs 2.0 will be a further reasons: quite simply it has not been either of execution languages, particularly Business sufficiently convenient to use or integrated Process Execution Language. stimulus to the growth and within a design toolset. adoption of simulation Much of the effort put into BPMN 2.0 has Process simulation therefore normally acts as an focused on making the diagrams executable optional standalone package that can be used on a process engine. With BPMN 2.0 it is adjacent to, rather than as a standard part of, now possible to have different perspectives BPM toolsets. on a design/redesign, from high level business oriented views to detailed technical views. However, organisations are beginning to recognise that the same principles that apply The importance of BPMN 2.0 is that there to simulation in physical design can now be is now standardisation and the opportunity applied to BPM. There is significant evidence to exchange information between tool sets, from other areas of design (such as product as well as between business analysts and IT development) that 80% of the costs are implementers. committed within the first 20% of the time spent in design or redesign. The introduction of BPMN 2.0 will be a further stimulus to the growth and adoption A corollary to this is that late changes in of simulation: the twin barriers of a difficult, design (especially after release) cost orders of technical user interface and a discrete tool set magnitude more to correct than making the that stands alone from programming tools will same changes early in the design/redesign both now be removed. process. Using simulation up front within design/redesign makes the assessment of Significance of L-SIM 2.0 alternatives viable and supports the early Lanner is a world leader in simulation software identification of issues - and hence fewer costly and is ahead of the market when it comes to late changes or sub-optimal designs. providing simulation as a service to BPM. L-SIM is already the most popular and functional One such case was recently presented by the native BPMN1.2 simulation on the market. German national railway Deutsche Bahn. It is supported by Lanner’s simulation savvy DB Netz manages and maintains the 34,000km development team and used by a range of of track on Germany’s railways. It used BPM leading toolset providers. combined with simulation to optimise the fault clearing process at regional division RB East L-SIM 2.0 is the latest version of Lanner’s and to increase train punctuality. performance proven BPMN simulation engine. L-SIM 2.0 is a BPMN 2.0 native and compliant In its presentation*1 it describes how simulation simulation engine. As such it can simulate of the current process identified the complex high level business oriented views and detailed interactions that were resulting in long waiting technical views. times. It then goes on to show how simulation provided a risk free environment in which to The Experimentation and Optimisation evaluate options, finding savings of 28%, 28% framework that is part of L-SIM 2.0 adds further and 37% in the first three critical steps of the value by automating the process of searching process chain. for the best solution within user-defined goals. For example, this may involve optimising a The impact of BPMN 2.0 process to make the most effective use of Another driver for simulation in BPM is the your most highly valued resources or selecting development of Business Process Modelling between processes to deliver the best customer Notation (BPMN) 2.0. Developed under the experience*2. guardianship of the Object Management Group (OMG), BPMN 2.0 is a standard for business L-SIM 2.0 is configured as a RESTful service. process modelling, and provides a graphical Representational State Transfer (REST) has notation for specifying business processes in a gained widespread acceptance across the business process diagram (BPD). Web as a simpler alternative to SOAP and Web Services Description Language (WSDL) BPMN 2.0 is based on a flowcharting technique based Web services. Mainstream Web 2.0 very similar to activity diagrams using Unified service providers, including Yahoo, Google, Modeling Language (UML). The objective of and Facebook, have now adopted REST as an BPMN overall is to support business process easier-to-use, resource-oriented model. management for both technical and business
  • 3. Executive Briefing BPM/SOA toolset providers can now simply As such, it represents the most cost effective integrate the full functionality of BPMN and convenient way for BPM/SOA suppliers to simulation: all that’s needed is an http: call and deliver leading edge simulation as part of their a suitably configured BPMN 2.0 exchange file. toolsets. L-SIM 2.0 also supports the scalability and computing power of cloud computing. Summary L-SIM 2.0 can be considered as the first of The BPM market is growing quickly, and a second generation of BPM simulation. The is being driven by the business imperative first generation of BPM simulation focused for process improvement and the stimulus on the ‘stress testing’ of already designed to adoption provided by BPMN 2.0. Using processes. It has little capability to perform simulation up front in business process design/ the experimentation needed to compare and redesign will offer significant benefits to a broad optimise process alternatives. range of industry sectors - L-SIM 2.0 now makes that viable. L-SIM 2.0 can be considered as the first of L-SIM 2.0 differs from earlier forms of References: a second generation of simulation in two important aspects DB Netz presentation*1 available at BPM simulation. http://www.lanner.com/en/case-study. 1.It delivers a simulation experimentation cfm?theCaseStudyID=BC8A68E1-15C5-F4C0- framework in which to explore process 993950D4C05BE859 alternatives, manipulate and optimise variables to achieve improvements in high Questions attributed to Derek Miers level business goals. BPMFocus*2 2.It provides robust simulation capabilities that can be easily connected to the existing range of desktop tools and the new breed of lightweight web-based toolsets through its support of the BPMN 2.0 notation and RESTful services. This opens up the opportunity of simulation led process design to a broader range and size of organisations.