WEEK 2 Business Process Configuration 2014

Business Processes
Configuration
Enterprise Systems Applications 1

Feedback from students w1
Enterprise Systems Applications

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The complexity of an organization

Business Processes (E.g.)

Characteristics of a Business Process
• Each activity comprises of a set of logical steps that is

performed by humans or machines.
• The process transforms inputs to outputs according to
guidelines by employing resources.
• The process is initiated by one or more business events.
• The process has performance indicators for which
measurable objectives can be set and performance be
evaluated.

Our Business Process Definition
A process is the self-contained, temporal and logical

order (parallel and/or serial) of those activities, that are
executed with the goal of accomplishing a given task.
When a business process is drawn and depicted using

symbols, we call it a Process Model
There are several modelling techniques commonly used in

Enterprise System implementations
• EPC is one of them used heavily in ES

Role played by process modeling
ES Life cycle
Business Comprehensive and Common understanding of Domain

Engineering Documenting current business activities (Incl.. Weaknesses)
Design of models for current business processes

System Evaluation of alternative systems
Selection Comparison of individual models with system's reference models
and business blueprint
To assist the customizing tasks (model based customization)

System To help adopt best practices
Implementation Documentation of configuration alternatives and project progress
(to aid in capturing the ‘knowledge’ )
As an ongoing end user documentation

System Use
To help conduct system modifications
To generate process performance data
To identify and eliminate non value added activities
System Identification of additional customising

Evolution Model-based process performance measurement
*(following positioning of upgrade projects
Rosemann, 2000) 8
Enterprise Systems and “Processes”
What would you change ...

... I f t h e M a n a g e m e n t w o u l d i m p l e m e n t
a n E R P - s y s t e m f o r a s e c o n d t i m e?
selections in %
BPR for ES
80 More attention to the process optimization
65 Go ahead intensively and systematically according to the company goals
60 Pay more attention to the area spanned cooperation within the concepts
50 Provide simultaneous implementation of a management information system

55 Recruit the project management out of the relevant department
45 Intensify trainings
35 Stronger including of the works council
35 Enforce changes more courageously
30 Better proofs of economy
20 Avoid big-bang implementations
Enterprise Systems Applications 9 Computerweek (Germany) Nr. 49, 4. December 1998

In Queensland Government
SAP has resulted in improved business

processes + 67.5 %
ES for BPR
- 32.5 %

Business Processes Relationship with
Configuration
• What you configure are the Business Processes....

– In other words, during implementation time, consultants,
vendor and client representatives interact with each other
and develop a common understanding of the processes
that will be implemented through SAP
– The ‘activities’ and ‘outcomes’ and ‘entities’ conducting a

process will be included in SAP
– Usually, business processes can be depicted using

Process Models

Procure for Sales Order
Pre-Sales Sales Order Accounts

Delivery Billing
Activity Receivable
Availability Goods to
Check Delivery
In Inventory Plant or Inventory General

Warehouse Postings Ledger
YES Accounts
NO Goods from
Purchase Order
Purchase Purchase Goods Invoice Accounts

Requisition Order Receipt Receipt Payable

Produce for Sales Order
Pre-Sales Sales Order Accounts

Delivery Billing
Activity Receivable
Availability Goods Issued to

Check Delivery
In Inventory Plant or Inventory General

Warehouse Postings Ledger
YES
Accounts
Issue Goods to
NO Production Goods from
Order Production Order
Planned Production Completion Confirmation Accounts

Order Order Payable

Modelling Technique - Event-driven Process Chains
Cust om er Side Supplier Side
Need for
purchasing RfQ was
exist s received
ERP Syst em
ext ERP System
Det erm ine Det erm ine ext
purchasing Request
for Quot e if RfQ
requirem ent s requirem ent s
Any
organizat ional can be m et
Sales
Unit
Purchasing
Purchasing requirem ent s XOR
Requirem ent s have been
det erm ined
RfQ RfQ
B2B Syst em requirem ent s requirem ent s
can be m et cannot be m et
ext
Request Creat e and
for Quot e send Request
for Quot e Sales
Purchasing
Depart m ent Quot e Creat e Referral Creat e
Sales
Quot e Referral
RfQ was sent Referral

Dat abase
Quote has Referral has
been creat ed been created
Legend XOR
Applicat ion
Funct ion
System
ext Dat abase Message Send
response B2B System
ext
Organizat ional
Event /Stat e Unit Docum ent
Response was
XOR sent
Cont rol
Flow connect or

zur Muehlen (2003)
EPC- Core Symbols of the EPC method
Event
Events trigger functions – a change of state

There is no energy, time or costs incurred by this object and no
additional resources used. Text in the Event usually starts with a noun
Function
Functions create events
A Function is the ‘activity’ of a process, and as such uses resources,
time, energy and usually incurs costs. Every function must have at
least one Event as a predecessor, and have at least one Event to
follow it. Text in the Function usually starts with a verb.

EPC- Connectors in EPCs
Conjunction X1
X1
0
X2
0
X3
0
0 1 0
V
X3
V
1 0 0
“And” X2 1 1 1
Adjunction X1
X1
0
X2
0
X3
0
V V X3 0 1 1
1 0 1
“Inclusive or” X2 1 1 1
X1 X2 X3
Disjunction X1
0 0 0
XOR
X3 0 1 1
XOR
1 0 1
“Exclusive or” X2 1 1 0

EPC- Connectors in EPCs
Some times, you might have to have a combination of logical operators
Event Event Event Event
Function Function
Event Event Function Function
Event Event

Example – basic EPC
New student Continuing noun
arrives to student arrives state
enrol to enrol
XOR
activity
Complete student
enrolment form set verb
Student enrolment
form completed
Check for completeness

of the form

Extended EPC (e-EPC)
EPC can be extended with different object types (data, organizational units or
application Systems), which enable it to depict complicated structures for work
processes
Organisational Unit This depicts the Unit, or Department in

which the process is executed.
Shows the designated position of the person in
Position
charge of a task
Application system This symbol is used to indicate that a

computerized application
A Document indicates that a hardcopy is

Document
used in the workflow process.0
This is the symbol used when a process

Process pointer interfaces with another process. It shows where
19 another process can be found
Modelling rules (VVI)
1. EPC consists of events, functions and connectors
2. Every EPC starts and ends with at least one event
3. Events and functions are used strictly alternating (every 2nd)
4. An OR-split is not allowed after an event.
5. Organisational units, application systems, and data can be added to

an EPC (= extended EPC).

EPC rules
1. EPC consists of events, functions Event
and connectors
2. Every EPC starts and ends with at Function

least one event
3. Events and functions are used Event

strictly alternating
Function Function
Event Event

EPC rules
4. An OR-split is not allowed after an event.
After a
function
After an
event

EPC rules
5. Organisational units, application systems, and data can be added
to an EPC (= extended EPC).
New goods New store

have arrived is opened Event
Connector
XOR
Function
Input Data Part Sales Dept

Sales Rep
Assign
Parts to
Stores Information
Output Data Order Set MIS System
Articles are
assigned
 Notice how additional information is embedded only with the Functions

and NOT with the Events
Some Examples
Events
Goods have arrived, invoice is canceled, ...
Functions
Check customer credit rating, enter receipt of goods,...
Data
Articles, customers, materials, suppliers, ...
Organizational units
Sales, purchasing, accounting, manufacturing, ...
Resources
PC, paper, ...
Services
BPO consulting..
Some example interdependencies
Events activate Functions

E.g. The invoice received event activates the check invoice function
Functions generate events

E.g. The check invoice function generates the “Goods are defective “ event
Organisational Unit are technically responsible for the functions

E.g. The “Purchasing” Organisational units is technically responsible for the
‘Select supplier” function
Data are input for functions

E.g. The “invoice” data object is input for the “check invoice’ function
Order
Goods
Invoice
Purchase
Department
Financial
Request
Purchase
Request
Goods
Supplier
Supervisor
Invoice
processing
employee
Receipt
order
form
A
verification
received
order
requisition
form
Department
department
Services are output of functions
E.g. The “Customer offer” result is output of the “processing offer” function

How to derive
Business Process models
Modelling Tool - ARIS

What is ARIS?
• ARIS stands for the Architecture of Integrated Information Systems.
• Developed by Professor August- Wilhelm Scheer at the Institut Fur
Wirtschaftsinformatik at the Universitat des Saarlandes in Saarbrucken, in
collaboration with SAP AG.
It aims at modeling all aspects of a complex business and can model :

•Processes •Systems •Knowledge
•Data •Information •Business
•Organizations •Products Objectives
•Information Flows
•You can represent the business structure of a company , based on the ARIS
concept and using the models types available in ARIS
•This gives you the opportunity to comprehensively document the
organisational and procedural structure of your company and/or individual
areas of the company
The ARIS House
To represent processes clearly and systematically, ARIS distinguishes five
views and three levels (within each view) and presents them through the
“ARIS House”.
The advantage of dividing the initial problem into individual views and
different levels is that the complexity of the business processes is reduced
Views
•Product/ service view Levels
•Requirements definition
•Data view
•Design specification
•Functional view
•Implementation
•Organisational view
•Process view

Organisation Requirements
Definition
View
Design Specification
Implementation
Process
View
Requirements
Requirements Definition Requirements
Definition Definition
Data Function
Design
View Design Design
Specification View
Specification Specification
Implementation Implementation Implementation
Requirements Product / service

Definition
View
Design Specification
Implementation

Views in ARIS - Product/service view
Product/service view:
This view structures all material and non-material inputs and
outputs that are bought into or performed by, the business
process
Product / Service View
Within the family of ARIS products, this business

view is often integrated
Integrated
process
within the dynamic process view management
supports supports
IDS IDS
services products
subsumes ARIS subsumes

product ARIS
consulting training
ARIS ARIS
Toolset Easy Design
ARIS
SAP R/3 Workshop ARIS
implementation Web Publisher
ARIS for
mySAP.com
ARIS ARIS
Company-wide consulting through- Simulation
process out the project
management Process
Performance
Monitor
Workflow
implementation
Total
Quality
Management
Views in ARIS – Data view
Data view:
Information objects and their attributes, as well as the
Data
relationship between information objects, are described in the View
data view.
Vehicle
data
Type: represents
Type: is relative to Type: can be
Vehicle Owner Driver
Type: is a Type: synonym (default design. for)

Passenger car Car
Type: is specimen of VW Polo

Serial No. 123
Type: is feature of
Color
Type: subsumes
Engine
Type: classifies
Vehicle model

Views in ARIS - Functional view
functionall
view
Functional view
The transactions that transform
performances and the static
relationships between them are
described in the “functional view”. The
term ‘Function’, ‘transaction’ and
‘activity’ are used here synonymously.
Application systems are also included in
the function view, because they
determine the computer-supported
processing rules for activities

Views in ARIS - Organizational view
Organization view: Organisational
view
The static interrelationships between the various tasks
performers of the company are represented in this view. It
typically represents the organisational structure and defined
roles. Company
management
Purchasing Production Sales Warehouse
Lorcan Smith Production Sales John Miller

manager manager
Production
planner Sales Depatment
employee manager
SAP project
team
Joe Magnum
Thomas Phips

IDS consultant
Views in ARIS (cont)
Process view
view
Process view:
The four static views –
[organizational, data, function
and product/service] form the
outer portions of the ARIS
house.
The dynamic process view forms

the inner portion of the ARIS
House, and integrates all the
other views into one

ARIS House: Method Integration
Business
management
Sales Production
Sales Production Organization

employee planer
Customer
order Sales
Sales data entered processing
Order data
Order Sales
Order data confirmation employee Order
Customer order confirmation
confirmation Order
confirmation
Customer data created Order
Follow-up
Data Process Function
Sales activities
Customer Customer order Customer

Placement of order confirmation order
Products
Enterprise Systems Applications 35 /Services
EXAMPLES ON THE WHITEBOARD
Procurement using a Purchase Order

Material Re-Order
Sales Order

WEEK 2 Business Process Configuration 2014

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Business Processes

Enterprise Systems Applications 1

Enterprise Systems Applications

• SAP Certification Courses TERP 10

Enterprise Systems Applications

Enterprise Systems Applications

Enterprise Systems Applications

• Each activity comprises of a set of logical steps that is

Enterprise Systems Applications

A process is the self-contained, temporal and logical

When a business process is drawn and depicted using

There are several modelling techniques commonly used in

• EPC is one of them used heavily in ES

Business Comprehensive and Common understanding of Domain

Design of models for current business processes

To assist the customizing tasks (model based customization)

As an ongoing end user documentation

System Identification of additional customising

What would you change ...

80 More attention to the process optimization

65 Go ahead intensively and systematically according to the company goals

50 Provide simultaneous implementation of a management information system

35 Stronger including of the works council

35 Enforce changes more courageously

30 Better proofs of economy

20 Avoid big-bang implementations

Enterprise Systems Applications 9 Computerweek (Germany) Nr. 49, 4. December 1998

SAP has resulted in improved business

Enterprise Systems Applications 10

• What you configure are the Business Processes....

– The ‘activities’ and ‘outcomes’ and ‘entities’ conducting a

– Usually, business processes can be depicted using

Enterprise Systems Applications

Pre-Sales Sales Order Accounts

In Inventory Plant or Inventory General

Purchase Purchase Goods Invoice Accounts

Enterprise Systems Applications

Pre-Sales Sales Order Accounts

Availability Goods Issued to

In Inventory Plant or Inventory General

Planned Production Completion Confirmation Accounts

Enterprise Systems Applications

RfQ was sent Referral

Enterprise Systems Applications 14

Events trigger functions – a change of state

Enterprise Systems Applications 15

Enterprise Systems Applications 16

Event Event Event Event

Event Event Function Function

Enterprise Systems Applications 17

Check for completeness

Enterprise Systems Applications 18

Organisational Unit This depicts the Unit, or Department in

Application system This symbol is used to indicate that a

A Document indicates that a hardcopy is

This is the symbol used when a process

1. EPC consists of events, functions and connectors

2. Every EPC starts and ends with at least one event

3. Events and functions are used strictly alternating (every 2nd)

4. An OR-split is not allowed after an event.

5. Organisational units, application systems, and data can be added to

Enterprise Systems Applications 20

2. Every EPC starts and ends with at Function

3. Events and functions are used Event