BPI
Index
BPI..........................................................................................................................................................1
Lecture 1.............................................................................................................................................3
The need for integration.................................................................................................................3
Three integration waves.................................................................................................................3
Business process redesign (BPR) and integration...........................................................................3
Lecture 1b – the world of e-Business..................................................................................................4
Electronic commerce......................................................................................................................4
Types of e-Commerce.....................................................................................................................4
Electronic Business.........................................................................................................................4
E-Commerce vs. E-Business............................................................................................................4
Internet-based e-Business..............................................................................................................4
Characteristics of e-Business..........................................................................................................4
e-Business Roles & their challenges................................................................................................5
e-Business requirements................................................................................................................5
Advantages of Electronic Business..................................................................................................6
Inhibitors of Electronic Business.....................................................................................................6
Lecture 2 – e-Business relationships...................................................................................................7
Modelling interdependent business activities................................................................................7
Value chains....................................................................................................................................7
Supply chain....................................................................................................................................8
Value chain analysis........................................................................................................................8
Lecture 2 – Business processes...........................................................................................................8
Business processes & their management.......................................................................................8
Business processes & Workflows....................................................................................................9
Characteristics of Business processes.............................................................................................9
Types of Business processes/workflows.........................................................................................9
Lecture 2 – Relationships....................................................................................................................9
Types & characteristics of e-Business relationships........................................................................9
Our toolbox so far.........................................................................................................................10
Lecture 3 – e-Business Technological Infrastructure........................................................................12
e-Business technical infrastructure...............................................................................................12
Lecture 4A – e-Business Networks....................................................................................................16
1
, Lecture 4B – Enterprise Application Integration (EAI)......................................................................19
Lecture 5 – e-Business Integration...................................................................................................22
UML – Lecture......................................................................................................................................25
Video................................................................................................................................................31
Use case diagram..............................................................................................................................31
Class diagrams..................................................................................................................................31
Sequence diagram............................................................................................................................32
2
,Lecture 1
Business function is an activity that a company performs,
which may be carried out by one or more departments and
may be organized hierarchically (for example order management, marketing, selling,
finances, product design).
Business processes are the complete and coordinated set of collaborative activities
that respond to a business requirement for action,
that deliver value to customers (for example when purchasing a certain product).
The need for integration
• Business drivers: business demands how to use your sources in a better way, so that you
become more competitive.
• Technology drivers: new technologies emerge you can make products in a more efficient way.
Business process integration (BPI)
is the techniques and mechanisms for managing the movement of data, and
the invocation of processes in the correct and proper order
to support the management and execution of common processes that exist in and
between applications.
Three integration waves
• Legacy integration: integrating legacy systems
• EAI (A2A): the use of computer systems’ architectural principles to integrate a
set of enterprise computer applications.
• BPI (B2B): not only internally integrate enterprise computer applications but
also externally.
Business process redesign (BPR) and integration
• Designing a business process model was first step in BPR;
• BPR: organizational effectiveness and efficiency;
• BPI goes beyond organizational retooling of processes aiming at:
o integration of internal with external processes
o process models are used to specify cross-organizational process requirements
Lecture 1 - take away message (given after class exercise)
• No single software can be used for everything
• Different systems overlap in functionalities
• Systems can be categorized in:
o Customer Relationship Management (CRM)
o Web Selling
o Ordering
o Finance/Accounting/Management
3
, Lecture 1b – the world of e-Business
Electronic commerce
Electronic-Commerce: The buying and selling of information, products and services via the Internet
and the World Wide Web.
Types of e-Commerce
Business-to-Consumer: E-commerce between organizations and individual consumers
Business-to-business (e-Business): E-commerce between businesses
o Accounts for a much larger portion of e-commerce than business-to-consumer.
Business-to-administration
Consumer-to-administration
Electronic Business
Electronic-Business: The conduct of transactions by means of electronic communications networks
(e.g., via the Internet and/or possibly private networks) end-to-end.
E-Commerce vs. E-Business
Compared with e-Commerce, e-Business is a more generic term,
it refers not only to information exchanges related to buying and selling but also
to servicing customers & collaborating with business partners, distributors & suppliers.
It implies Business Process Integration!
e-Business processes are integrated end-to-end across the company, with key partners, suppliers and
customers & can respond with flexibility and speed to customer demands and market opportunities.
Companies link their internal and external processes more efficiently & flexibly, work more closely
with suppliers to satisfy the needs & expectations of their customers.
Internet-based e-Business
Reasons for firms to create the ability to exchange transactions over the Internet:
The Internet is a publicly accessible network with few geographical constraints. Its largest
attribute, large-scale connectivity (without the need to have special company networking
architecture) is a seedbed for growth of a vast range of business applications.
The Internet global inter-network connections offers the potential to reach the widest
possible number of trading partners of any viable alternative currently available.
Characteristics of e-Business
e-Business is about integrating external company processes with an organization’s internal business
processes:
Collaborative product development.
Collaborative planning, forecasting and replenishment.
Procurement and order management.
Operations and logistics.
Customer Relationship Management (CRM) systems: “front-office” systems that help the enterprise
deal directly with their customers. CRM integrates & automates customer-serving processes within a
company (personal information gathering & processing, and self-service throughout the supplying
company in order to create value for the customer).
4
Index
BPI..........................................................................................................................................................1
Lecture 1.............................................................................................................................................3
The need for integration.................................................................................................................3
Three integration waves.................................................................................................................3
Business process redesign (BPR) and integration...........................................................................3
Lecture 1b – the world of e-Business..................................................................................................4
Electronic commerce......................................................................................................................4
Types of e-Commerce.....................................................................................................................4
Electronic Business.........................................................................................................................4
E-Commerce vs. E-Business............................................................................................................4
Internet-based e-Business..............................................................................................................4
Characteristics of e-Business..........................................................................................................4
e-Business Roles & their challenges................................................................................................5
e-Business requirements................................................................................................................5
Advantages of Electronic Business..................................................................................................6
Inhibitors of Electronic Business.....................................................................................................6
Lecture 2 – e-Business relationships...................................................................................................7
Modelling interdependent business activities................................................................................7
Value chains....................................................................................................................................7
Supply chain....................................................................................................................................8
Value chain analysis........................................................................................................................8
Lecture 2 – Business processes...........................................................................................................8
Business processes & their management.......................................................................................8
Business processes & Workflows....................................................................................................9
Characteristics of Business processes.............................................................................................9
Types of Business processes/workflows.........................................................................................9
Lecture 2 – Relationships....................................................................................................................9
Types & characteristics of e-Business relationships........................................................................9
Our toolbox so far.........................................................................................................................10
Lecture 3 – e-Business Technological Infrastructure........................................................................12
e-Business technical infrastructure...............................................................................................12
Lecture 4A – e-Business Networks....................................................................................................16
1
, Lecture 4B – Enterprise Application Integration (EAI)......................................................................19
Lecture 5 – e-Business Integration...................................................................................................22
UML – Lecture......................................................................................................................................25
Video................................................................................................................................................31
Use case diagram..............................................................................................................................31
Class diagrams..................................................................................................................................31
Sequence diagram............................................................................................................................32
2
,Lecture 1
Business function is an activity that a company performs,
which may be carried out by one or more departments and
may be organized hierarchically (for example order management, marketing, selling,
finances, product design).
Business processes are the complete and coordinated set of collaborative activities
that respond to a business requirement for action,
that deliver value to customers (for example when purchasing a certain product).
The need for integration
• Business drivers: business demands how to use your sources in a better way, so that you
become more competitive.
• Technology drivers: new technologies emerge you can make products in a more efficient way.
Business process integration (BPI)
is the techniques and mechanisms for managing the movement of data, and
the invocation of processes in the correct and proper order
to support the management and execution of common processes that exist in and
between applications.
Three integration waves
• Legacy integration: integrating legacy systems
• EAI (A2A): the use of computer systems’ architectural principles to integrate a
set of enterprise computer applications.
• BPI (B2B): not only internally integrate enterprise computer applications but
also externally.
Business process redesign (BPR) and integration
• Designing a business process model was first step in BPR;
• BPR: organizational effectiveness and efficiency;
• BPI goes beyond organizational retooling of processes aiming at:
o integration of internal with external processes
o process models are used to specify cross-organizational process requirements
Lecture 1 - take away message (given after class exercise)
• No single software can be used for everything
• Different systems overlap in functionalities
• Systems can be categorized in:
o Customer Relationship Management (CRM)
o Web Selling
o Ordering
o Finance/Accounting/Management
3
, Lecture 1b – the world of e-Business
Electronic commerce
Electronic-Commerce: The buying and selling of information, products and services via the Internet
and the World Wide Web.
Types of e-Commerce
Business-to-Consumer: E-commerce between organizations and individual consumers
Business-to-business (e-Business): E-commerce between businesses
o Accounts for a much larger portion of e-commerce than business-to-consumer.
Business-to-administration
Consumer-to-administration
Electronic Business
Electronic-Business: The conduct of transactions by means of electronic communications networks
(e.g., via the Internet and/or possibly private networks) end-to-end.
E-Commerce vs. E-Business
Compared with e-Commerce, e-Business is a more generic term,
it refers not only to information exchanges related to buying and selling but also
to servicing customers & collaborating with business partners, distributors & suppliers.
It implies Business Process Integration!
e-Business processes are integrated end-to-end across the company, with key partners, suppliers and
customers & can respond with flexibility and speed to customer demands and market opportunities.
Companies link their internal and external processes more efficiently & flexibly, work more closely
with suppliers to satisfy the needs & expectations of their customers.
Internet-based e-Business
Reasons for firms to create the ability to exchange transactions over the Internet:
The Internet is a publicly accessible network with few geographical constraints. Its largest
attribute, large-scale connectivity (without the need to have special company networking
architecture) is a seedbed for growth of a vast range of business applications.
The Internet global inter-network connections offers the potential to reach the widest
possible number of trading partners of any viable alternative currently available.
Characteristics of e-Business
e-Business is about integrating external company processes with an organization’s internal business
processes:
Collaborative product development.
Collaborative planning, forecasting and replenishment.
Procurement and order management.
Operations and logistics.
Customer Relationship Management (CRM) systems: “front-office” systems that help the enterprise
deal directly with their customers. CRM integrates & automates customer-serving processes within a
company (personal information gathering & processing, and self-service throughout the supplying
company in order to create value for the customer).
4
