ARIS- Business Process Frameworks. Second, Completely Revised and Enlarged Edition

ARIS-

Business Process Frameworks Second, Completely Revised and Enlarged Edition

Springer Berlin Heidelberg New York Barcelona Budapest Hong Kong London Milan Paris Singapore Tokyo

August -Wilhelm Scheer

ARIS

Business Process Frameworks Second, Completely Revised and Enlarged Edition With 94 Figures

,

Springer

Prof. Dr. Dr. h. c. August-Wilhelm Scheer Universitat des Saarlandes Institut fUr Wirtschaftsinformatik Postfach 151150 D-66041 Saarbrucken Germany E-Mail: [email protected] URL: http://www.iwi.uni-sb.de/info/scheer/scheer.html

The first edition of this book has been published under the title "Architecture of Integrated Information Systems". The second edition will be published in two volumes: "ARIS - Business Process Frameworks" and ''ARIS - Business Process Modeling".

ISBN-13: 978-3-642-97740-4 e-ISBN-13: 978-3-642-97738-1 DOl: 10.1007/978-3-642-97738-1 Cataloging-in-Publication Data applied for Die Deutsche Bibliothek - CIP-Einheitsaufnahme Scheer, August-Wilhelm: ARIS - business process frameworks f August-Wilhelm Scheer. - 2., completely rev. and en!. ed. - Berlin; Heidelberg; New York; Barcelona; Budapest; Hong Kong; London; Milan; Paris; Singapore; Tokyo: Springer, 1998 ISBN-13: 978-3-642-97740-4 This work is subject to copyright. All rights are reserved, whether the whole or part of the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfilm or in any other way, and storage in data banks. Duplication of this publication or parts thereof is permitted only under the provisions of the German Copyright Law of September 9, 1965, in its current version, and permission for use must always be obtained from Springer-Verlag. Violations are liable for prosecution under the German Copyright Law. © Springer-Verlag Berlin . Heidelberg 1998 Softcover reprint of the hardcover 2nd edition 1998

The use of general descriptive names, registered names, trademarks, etc. in this publication does not imply, even in the absence of a specific statement, that such names are exempt from the relevant protective laws and regulations and therefore free for general use. ARIS is registered trademark of IDS Prof. Scheer GmbH, SAP Rf3 is registered trademark of SAP AG, all other named products are registered or non-registered trademarks of their respective enterprises.

Hardcover-Design: Erich Kirchner, Heidelberg SPIN 10678473

4212202-5 4 3 2 1 0 - Printed on acid-free paper

Preface to the Second Edition

Since its fIrst publication in 1992, the "Architecture of Integrated Information Systems" has been enjoying tremendous popularity. Documenting standard software with business models has proven to be a huge success. ARIS Toolset, developed by IDS Prof. Scheer GmbH and based on the ARIS concept, is now the worldwide leader in the market for business process engineering tools. Deployed in universities in the U.S., Europe, South Africa, Brazil and Asia-PacifIc, ARIS Toolset is providing R&D and academic institutions engaged in enterprise organization and business information technology with a state-of-art business process engineering solution. The furious development in information technology (IT) since the fIrst edition of this book was published has led to so many new aspects and so much more information that we felt it necessary to completely revise it and actually split up the subject matter into two books, namely ARiS - Business Process Frameworks and ARiS - Business Process Modeling. We see a different target audience for each book. Whereas the fIrst book is aimed more at those interested in the business and design aspects of standard applications, the second book offers comprehensive insight into modeling and information technology.

About this Book In "ARIS - Business Process Frameworks", we use the ARIS concept to describe business processes. The ARIS House of Business Engineering (HOB E) is a model for business process management. The description of output flows is another new element in this edition. The HOBE concept now includes new software concepts such as workflow systems, componentware and frameworks. Instead of the entity relationship approach, we now employ the unifIed modeling language (UML) for describing meta models.

VI

Preface

AD/CYCLE, which had originally seemed to be a promising approach, is no longer being sold by IBM, which is why we are no longer covering it. The potential audience of this book includes IT (information technology) managers, consultants, instructors and students of business-related computer science, computer science and related disciplines. The author would be especially pleased if business administrations students were to regard this book as an enhancement to their discipline, in the sense of IT oriented business theory. The illustrations in this book are available as slides on the WWW at http://www.iwi.uni-sb.de/iehre/aris-il and may be used, provided the copyright is observed and the source is mentioned. I would like to express my gratitude to Mr. Christian C. Tiews of 'The Localizer' for the meticulous translation of the text into English. I would also like to thank Dipl.-Kff. Ursula Markus for coordinating and revising the translation of the German text into English, Dipl.-Kfm. Frank Habermann for his careful editing of the German manuscript, cando rer. oec. Nathalie Anterist and cando rer. inform. Jochen Kunze for the preparation of the English illustrations, and Prof. Thomas Gulledge from George Mason University, VA, for his careful revision of the English manuscript. Valuable technical input was provided by Dipl.-Wirtsch.-Ing. Markus Bold, Dr. Wolfgang Kraemer, Dipl.-Kfm. Markus Luzius, Dr. Markus Niittgens and Dipl.-Ing. Arnold Traut. Saarbrucken, Germany, July 1998

August-Wilhelm Scheer

Preface

VII

Classification of the Contents The books on business process engineering by this author adhere to a consistent principle, as depicted in Fig. 1.

TectVlicai Profile of Books: - Principles of Efficient Information Management • elM- Towards the Factory of the Future Design Spec ification

• Business Process Engineeri ng Reference Models for Industrial Enterprises • AR IS· Business Process Frameworks • ARIS · Business Process Modeling

Fig. I:Technical profile of books by this author

Business-related computer science spans the gap between business theory -- and information and communication technology, with a bi-directional relationship between the two. Information and communication technology should be analyzed as to how new technical procedures can enable new IT oriented business application concepts. The "direction of influence" is illustrated by the arrow on the left hand side of Fig. 1. In business-related computer science, it is not essential to know the full range of information technology, but only to apply the segment responsible for alterations in business application concepts. Business-related computer science is especially important in this area. The arrow on the right hand side of Fig. I makes clear how the enhancement of information and communication technology is influenced by business requirements.

VIII

Preface

Both relationship directions are discussed in the book "Principles of Efficient Information Management", the second edition of which was published in 1991. The key effects of information technology on business processes are discussed in "CIM (Computer Integrated Manufacturing) - Towards the Factory of the Future" which also appeared in its third edition in 1994. Both books cover IT oriented frameworks and are excellent foundations for specific corporate system solutions. These frameworks are implemented into IT tools by information systems. Thus, information systems really do act as bridges between business applications and information technology. The "Architecture of Integrated Information Systems - ARIS" was developed for the comprehensive description of information systems. The first edition of the book was published in 1992. This is the second edition of this concept, now published in two different books, ARIS - Business Process Frameworks -- and ARIS - Business Process Modeling. "Business Process Engineering - Reference Models for Industrial Enterprises", with its second edition published in 1994 offers industrial enterprises an integrated information system by the use of function, data, organization and process models, in accordance with the ARIS concept. The business value of describing information systems decreases as technical implementation progresses. At the same time, stability of the concepts also diminishes because the enormous speed with which IT is being enhanced usually influences the technical implementation of information systems. In all of these books, the author takes this fact into account by the extent with which the respective issues are weighted. This is analogous to the weighting illustrated by the triangle in Fig. I. All of the author's books are also available in German. "Business Process Engineering" is available in Chinese, "CIM" has been translated into Portuguese as well. Other translations are in progress.

Table of Contents

A A.I A.II

User Benefits of ARIS 1 Benefits for Business Administration and Organizational Processes 2 User Benefits for Developing Infonnation Systems 5

B

Basic Business Process Model in ARIS

B.I B.L1 B.L2 B.1.3 B.IA B.I.5

The Initial Business Process Model Responsible Entities and their Relationships Function Flow Output Flow Infonnation Flow Consolidated Business Process Model

10 10 10 11 13 15 16

B.II B.II.1 B.IL2

The ARIS Business Process Model The Expanded Example Process The Generalized Business Process Model

18 18 26

C

Developing the Architecture of Integrated Information Systems (ARIS House)

C.I C.II

ARIS Views ARIS Phase Model Preliminary ARIS Infonnation Model Preliminary ARIS Procedural Model

c.m C.IV

32 33 38 43 48

D

Business Process Management Using ARIS (ARIS House of Business Engineering)

D.I D.I.1 D.L2 D.1.3 D.L4 D.L5 D.L6 D.1.7 D.L8

Engineering Business Processes Modeling Product and Business Processes Reference Models Knowledge Management Process Evaluation Process Benchmarking Simulation Quality Assurance Process Warehouse

54 58 59 61 63 66 70 71 73 74

D.II D.II.l

Planning and Controlling Business Processes Process Monitoring

76 77

X

Table of Contents

D.lI.2 D.l1.3 D.lI.4

Scheduling and Capacity Control Executive Information Systems (EIS) Continuous Process Improvement - Adaptive Business Process Engineering

83

D.I11

Workflow Control

87

D.lV D.lV.1 D.lV.2 D.lV.2.1 D.lV.2.2 D.lV.2.3 D.lV.2.4

Application Systems Traditional Standard Software Solutions Componentware Objects Business Objects Java Applets Standardization Efforts

92 93 99 99 101 102 105

D.V D.V.1 D.V.2 D.V.2.1 D.Y.2.2 D.V.2.3 D.V.2.4 D.V.3

Frameworks The Framework Concept Realization Concepts ARIS-Framework SAP-Framework SNI-ComUnity IBM's San Francisco Project Effects on the Software Industry

109 109 111 111 113 114 115 116

E

Modeling Standards in ARIS

E.I E.I1 E.I11 E.lV

Generally Accepted Modeling Principles Modeling Levels Degrees of Granularity and Detailing Model Variants

119 119 120 126 129

F

Comparing ARIS with Other Concepts

F.I F.I1 F.I11 F.lV F.V

Object Oriented Modeling CIMOSA IFIP - Information System Methodology (ISM) Zachman Framework Research Results of the University of St. Gallen, Switzerland Other Architectures

F.YI

G

Deploying ARIS - Practical Procedures

G.I G.I.1 G.I.2 G.1.3

ARIS Model Based Business Process Reengineering Process Oriented Enterprise Engineering Procedural Model for Business Process Optimization Phases of Business Process Optimization

77 80

132 133 137 140 142 144 145

147 147 147 149 150

Table of Contents

XI

G.I.3.1 G.I.3.2 G.I.3.3 G.I.3.4 G.I.3.5 G.I.3.6 G.I.3.7 G.1.4

Preparatory Measures Strategic Planning As-is Study Target Concept Design Specification Implementation Regular Monitoring and Continuous Process Improvement Summary

150 150 150 151 152 152 152 153

G.II G.II.l G.II.2 G.II.2.1 G.II.2.2 G.l1.3 G.II.3.1 G.lI.3.2 G.II.3.3 G.II.3.4 G.II.3.5 G.II.3.6 G.II.3.7 G.l1.3.8

ARIS Model Based ISO 9000 Certification ARIS Based Process Oriented Quality Management Procedural Model for ISO Certification Procedural Model: An Overview Procedural Model: Benefits Phases of the Procedural Model Strategic Planning Prep Phase for Quality Management As-is Study of the Quality Management System "ARIS Based ISO 9000": Target Concept Structuring the QM System Applying and Reviewing QM Systems Certification Outlook and Framework: Total Quality Management

154 154 155 155 155 157 157 157 158 158 159 160 161 161

G.I1I G.I1I.1 G.III.2 G.III.3 G.III.3.1 G.III.3.2 G.I1I.3.3 G.lII.3.4 G.III.3.5 G.III.3.6 G.I1I.3.7

Using ARIS Models for Knowledge Management Using Knowledge to Your Competitive Advantage Knowledge Process Reengineering Procedures The Phases of Knowledge Process Reengineering Strategic Knowledge Planning As-is Study of Knowledge Processing Analyzing the As-is Status Target Concept of Knowledge Processing Enterprise and Staff Implementation Concept IT Implementation Concept Realizing Implementation Concepts

162 162 163 164 164 164 166 166 167 161 168

References

169

Index

183

Abbreviations

ALE API ARIS BAPI BD BE BM BPO BPR CAD CBO CIM CIMOSA CNC COM CORBA CPI DCOM DIN ED! EIS EPC EQA ERM ESHQ EU GUI HOBE HTML ICT IDA IDL IEM IFIP IMG IS

Application Link Enabling Application Programming Interface Architecture of Integrated Information Systems Business Application Programming Interface Business Data Business Engineer Business Management Business Process Optimization Business Process Reengineering Computer Aided Design Common Business Object Computer Integrated Manufacturing Open System Architecture for Computer Integrated Manufacturing Computerized Numerical Control Component Object Model Common Object Request Broker Architecture Continuous Process Improvement Distributed COM German Institute for Standards Electronic Data Interchange Executive Information System Event Driven Process Chain European Quality A ward Entity Relationship Model Environment, Safety, Health and Quality European Union Graphical User Interface ARIS - House of Business Engineering Hypertext Markup Language Information and Communication Technology Interactive High Level Petri Nets Interface Defmition Language Information Engineering Methodology International Federation for Information Processing Implementation Management Guide Information Systems

XIV

ISA ISDM ISM ISO

IT IWi JSD JVM KBSt MMS MR NIAM OAG OLAP OMA OMG ORB PSA PSL QC QM RFC SADT SME SOM TQM UML VDA WAPI WfMC WMS

Abbreviations Information System Architecture Information System Design Methodologies Information System Methodology International Organization for Standardization Information Technology Institute for Information Systems, Saarbriicken, Germany Jackson System Development Java Virtual Machine Coordinating and Counseling Office of the German Government for Information Technology in Federal Administration Merchandise Management System Microsoft Repository Nijssen Information Analysis Method Open Application Group Online Analytical Processing Object Management Architecture Object Management Group Object Request Broker Problem Statement Analyzer Problem Statement Language Quality Control Quality Management Remote Function Call Structured Analysis and Design Technique Small and Medium Sized Enterprises Semantic Object Model Total Quality Management Unified Modeling Language Association of German Automobile Manufacturers Workflow Application Programming Interface Workflow Management Coalition Workflow Management System

Table of Figures

Fig. la Fig.lb Fig.2a Fig.2b Fig. 3 Fig. 4 Fig. 5 Fig. 6 Fig. 7 Fig. 8 Fig. 9 Fig. 10 Fig. 11 Fig. 12 Fig. 13 Fig.14a Fig.14b Fig.14c Fig.14d Fig. 15 Fig. 16 Fig. 17 Fig. 18 Fig. Fig. Fig. Fig.

19 20 21 22

Fig. 23 Fig. 24

Fig.25a Fig.25b

Comparing organizational effort and software effort within the life cycle Various approaches for reducing the organizational effort Interaction diagram of the business process "order processing" General business interaction diagram in enterprises Function flow of the business process "order processing" Output flow of the business process "order processing" Information flow of the business process "order processing" Consolidated business process model "order processing" Detailed excerpt of business process and of event "manufacture item" System illustrating industrial production factors Classifying types of output/input ARIS business process model Business process model of an order instance (level 1) Abstraction levels in modeling The general ARIS business process model Function view (Hierarchical) organization view Data view Output view Views of the ARIS house ARIS phase model ARIS house with phase concept ARIS house with links to corporate strategy and information management Preliminary ARIS information model ARIS components of the aris meta level EPC of an ARIS procedural model draft ARIS views of "create requirements defmition function view" Relationship between the ARIS concept and the ARIS procedural model Process management with the ARIS - house of business engineering concept Product and process model Equivalent product and process descriptions for different services

7 8 11 11 12 14 15

17 19 21 22 24-25 28 29 31 34 34 35 35 37 39 41 42 45 46-47 50 51 53 56-57 59 60

XVI Table of Figures

Fig.25c Relationship among product and product innovation Fig.26a Excerpt of an EPC from an ARIS insurance reference model designed by KPMG Fig.26b Excerpt of an EPC from an Rl3 reference model Fig. 27 Knowledge topography Fig.28a Knowledge management in an EPC Fig.28b Knowledge profiles in a company Fig. 29 Calculating a manufacturing process Fig. 30 Information base of activity based costing in office processes Fig. 31 Calculating business processes Fig. 32 Selected quantitative and qualitative benchmarking criteria Fig. 33 Example of a simulation Fig. 34 Levels of QM documentation Fig.35a Centralized and decentralized modeling in a client/server environment Fig.35b Illustration of a process with multimedia elements Fig. 36 Process monitoring Fig. 37 Scheduling a business process Fig. 38 Capacity planning of a business process Fig. 39 Exception reporting in business process management Fig. 40 Reengineering and continuous improvement Fig. 41 Various types of models Fig. 42 Meta model for controlling model versions Fig. 43 From the business process model to the real-world procedure Fig. 44 User view of workflow control using clipboards Fig. 45 A process structure before and after the implementation of the team concept Fig. 46 Various degrees of structuring workflow processes Fig. 47 Reference model of the workflow management coalition Fig. 48 Types and instances of a business process Fig. 49 Association between a type object and an instance object at the meta level Fig. 50 Individualizing reference models Fig. 51 Interactive business process engineering and customizing of standard software Fig. 52 Object oriented illustration of the example "order processing" Fig. 53 Business objects in the example "order processing" Fig. 54 Linking applets with aris house of business engineering Fig. 55 Object management architecture Fig. 56 SAP business object

61 62 63

64 65 65

67 68 69 71

72

74 75

76 78 79

80 83 84 85 86 88

89 89

90 91

-92 92 94 96-97

100 102

104 105 106

Table of Figures XVII Fig. Fig. Fig. Fig. Fig. Fig. Fig. Fig. Fig. Fig. Fig. Fig. Fig. Fig. Fig. Fig. Fig.

57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73

Fig. Fig. Fig. Fig. Fig. Fig. Fig.

74 75 76 77 78 79 80

Fig. Fig. Fig. Fig.

81 82 83 84

Fig. Fig. Fig. Fig. Fig. Fig. Fig. Fig. Fig.

85 86 87 88 89 90 91 92 93

Fig. 94

Business components Embedding common business objects Framework with exchangeable components Industrial production system Workflow driven information system Architecture of the ARIS business framework SAP Business Engineer components SNI-framework ComUnity architecture IBM -- San Francisco project ARIS modeling levels The model administration standard in ARIS toolset Object type table Application object table Object type table enhanced by instance types Application object table enhanced by instance types Granularity of a model Example from ARIS, depicting different levels of a reference model SAP model hierarchy Symbols of a sub-model and a comprehensive model Examples for engineering decisions and their effects Effects of engineering decisions Modeling tools Actions and object flow diagram Initial example from fig. 3, illustrated in an actions and object flow diagram The CIMOSA modeling architecture (CIMOSA cube) Perspectives of the IFIP architecture Zachman architecture Procedural model (P model) for object modeling in accordance with the SOM approach Spinning top-shaped ISA concept Transition from function to process orientation Procedural model of business process optimization EPC for business process "customer order processing" Elements of ISO 900 I Preliminary ARIS procedural model for ISO certification Procedural model phases illustrated in a value chain ARIS models for quality management Preliminary ARIS procedural model for knowledge process reengineering Modeling the processing of knowledge

107 108 109 110 111 112 114 115 116 121 123 124 124 124 125 126 127 128 128 130 130 133 135 136 138 141 143 145 146 148 149 151 154 156 157 159 163 165