processes in the networked economies: portal, vortex, and dynamic trading processes
DESCRIPTION
Amit Sheth, Keynote at the Software Architectures for Business Process Management (SABPM'99) Workshop at CAiSE *99, Heidelberg, June 1999. Processes will be chief differentiating and the competitive force indoing business in the networked economy. They will be deeply integrated with the way of doing business, and that they will be critical components of almost all types of systems supporting enterprise-level and business critical activities. http://knoesis.org/amitTRANSCRIPT
The 11th Conference on AdvancedInformation Systems EngineeringHeidelberg, Germany June 14-18, 1999
Amit ShethAmit Sheth
in collaboration within collaboration withWil van der AalstWil van der AalstI. Budak ArpinarI. Budak Arpinar
T. Lima and METEOR teamT. Lima and METEOR team
Large Scale DistributedInformation Systems Lab.
University of GeorgiaAthens, GA, USA
http://lsdis.cs.uga.edu
SABPM WorkshopSABPM WorkshopKeynoteKeynote
IntroductionIntroduction
• Challenges and OpportunitiesChallenges and Opportunities
• Current Status: what do we lack now?Current Status: what do we lack now?
• Architectural approachesArchitectural approaches
• Technical challengesTechnical challenges
• Wrap-upWrap-up
Challenges and OpportunitiesChallenges and Opportunities
New Millennium: Technical PerspectiveNew Millennium: Technical Perspective
• Speed of work and technical developments
• Distribution – everything and everyone is
connected, logical distance is unrelated to
physical distance
• Process – increasing ability to cooperate
(coordinate and collaborate)
Acknowledgement: T. Malone/MIT Study, WACC Conference
Challenges and OpportunitiesChallenges and Opportunities
New Millennium: Market PerspectiveNew Millennium: Market Perspective
• Silicon Economics is changing many Silicon Economics is changing many
industriesindustries
– TelecommunicationsTelecommunications
– Energy UtilitiesEnergy Utilities
– Retailing Retailing
– ManufacturingManufacturing
– . . .. . .Resources and innovations will come from Resources and innovations will come from
those providing solutions to specific markets/industriesthose providing solutions to specific markets/industries
Challenges and OpportunitiesChallenges and Opportunities
Telecommunications...Telecommunications...
Challenges and OpportunitiesChallenges and Opportunities
Prelude to the networked economy:
Telecommunications …
The high valuations that the Wall Street has afforded to new
entrants, exceeding $20 billion in valuation in just two to three
years for companies such as Global Crossing, Level 3
Communications and Qwest Communications, have fueled
entirely new business models, creating a new breed of global
corporations, that in turn have provided opportunities for
applying information technology to solve the challenges.
Analyst Briefing by Level 3 Communications, © Level 3 Communications
JustJust do itdo it
Analyst Briefing by Level 3 Communications, © Level 3 Communications
Analyst Briefing by Level 3 Communications, © Level 3 Communications
Convergence orConvergence orNext Generation NetworksNext Generation Networks
Public switched
telephone network
(PSTN) with (packet
switched) data
network
Single common packet
network for supporting
voice, data, video and
other communications
services (including
VoIP—voice over IP)The telecommunications
service providers
ILECs
CLECs
LD Carriers
ISPs
Wireless Carriers
A Critical Role ProcessA Critical Role ProcessTechnology Can PlayTechnology Can Play
• Two of the most critical success factors
customer acquisition and retention,
providing value added features and bundled
services.
Solutions support these two compelling needs invariably
lead to the need for interorganizational workflow processes
because customers prefer to deal with a single service provider,
and most high-value services require integration of what
different types of providers have to offer. Today’s data-centric Today’s data-centric
solutions are inadequate and inappropriate.solutions are inadequate and inappropriate.
Current Status:Current Status:•what has been industry’s approach what has been industry’s approach
to providing workflow solutions? to providing workflow solutions?
•what are researcher doing?what are researcher doing?
•what do we lack now?what do we lack now?
Key conclusion from Doculab’sKey conclusion from Doculab’sworkflow product comparison studyworkflow product comparison study
Products that allow development of complex
applications, provide flexibility and support
integration are very hard to use, take too long
and require experience programmers (and are
still not quite comprehensive)
Easy to use products are too restrictive –
and are useful for small or standard
applications only
METEOR EAppS’s objective has been to avoid significant compromise.
Slightly oversimplified observation onSlightly oversimplified observation on state of the art in Workflow Technology state of the art in Workflow Technology
• Primarily centralized, client/server architectures
• Difficulty in integrating with existing applications and
databases, not meant for heterogeneous, multi-server
environments
• Static workflows that can be fully defined before
enactment starts
• Focus on repetitive processes
Most products are suitable for many office automation
and other human oriented processes. But QoS for
business- and mission-critical processes is lacking.
Vendor in sectors adding workflowVendor in sectors adding workflow
documentmanagement
workgroup/collaborative
imaging
Inte
rnet
ORB
datab
ase
TP-monitoring
Message/Data Tools/Architectureof current EAI products/solutions
Messaging/PersistentQueue Middleware
Publish/Subscribe;event-based messaging
PackagedApp
Broker
Adapter
Adapter
Adapter
Adapter
App
App
LegacyApp
DistributedObject Management
(ORB)
EnterpriseJava Beans
DCOM
METEORComponen
t
HOST 1
HOST 2HOST 3
HOST 4
ApplicationEDI
UserTask
UserTask
METEORComponen
t
METEORComponen
t
METEORComponen
t
METEORComponen
t
Services and Business Objects
Business Object/Process Tool/Architecture of the METEOREnterprise Application Development & Integration
Database Transaction
Emergent New Market forEmergent New Market forSolutions in the Networked EconomySolutions in the Networked Economy
document-centric, imaging and office automation apps
scalable, dynamicmission-critical processes with
integration capabilities
process-supportedand interorganizational
e-commerce apps
EAI for business object
/ process
An integrateprocess-
enabled IS
Primaryareas ofcurrentproductsupport
Research Disciplines Contributing toResearch Disciplines Contributing toWorkflow ManagementWorkflow Management
Quantitative and
Formal M
ethods/
Modeling
Softwar
e
Enginee
ring,
HCI, et
c.
OrganizationalScience
CSCW
Database Management/Information Systems
Distributed
Computing/
Systems
MIS/Reengineering/
Methodology
SoftwareProcess
MENTOR
WISE
WASA
CRYSTALMETEOR
Patha Rei
ETHZMetuflow
Etc…etc
Research in DB/IS/DC communities
WIDE
Central proposition Central proposition
• So far, lion’s share of the attention in Information Systems has gone to data
• This attention will increasingly shift to information and knowledge on the one hand, and processes on the other
• We will see process as an organic part of doing a business-- with e-commerce as the business driver, with e-commerce as the business driver,
processes will be the engine on high-octane fuel to processes will be the engine on high-octane fuel to
allow the driver to reach ahead of the competition. allow the driver to reach ahead of the competition.
Processes will be chief differentiating and the competitive force in
doing business in the networked economy. They will be deeply
integrated with the way of doing business, and that they will be
critical components of almost all types of systems supporting
enterprise-level and business critical activities.
Central proposition Central proposition
Architectural ApproachesArchitectural Approaches
Evolution of Workflow System Evolution of Workflow System ArchitecturesArchitectures
Observations/PredictionsObservations/Predictions
• Workflow process management functions
and technology will be absorbed by other
technologies.
• The workflow capability will be built in critical
enterprise application systems such as – Enterprise Resource Planning (ERP),
– Supply-chain management,
– Future generation of Enterprise Application Integration (EAI),
– E-commerce application builder,
– Other middleware services.
Observations/PredictionsObservations/Predictions
• Adaptability will become one of the key requirements.
• There will be a shift from data-centric to process- centric knowledge.
• Outsourcing of workflow management will become an attractive option.
Corporations already outsource some of the data related functions
as well as their Web sites: Exodus (http://www.exodus.com)
manages Web sites for large corporations.
Recently, new companies are targeting application outsourcing.
Outsourcing Process ManagementOutsourcing Process Management
Organizations desire to concentrate on core
competencies will lead to outsourcing
process management, especially to support
inter-organizational processes.
Outsourcing of processes will have a
considerable impact on the way
organizations operate.
Impact of Outsourcing
Outsourcing of Data, Web,Outsourcing of Data, Web,Application and ProcessesApplication and Processes
Does workflow technologyDoes workflow technologyhave future?have future?
The number of workflow products offered
increased to 200-300 around 1996, and then
started to decline.
The analysts projected an enormous growth,
from $2 billion of the total workflow market to
$7 billion in 2000: this potential does not seem
to have been realized
Lack of SuccessLack of Success
There are several explanations for the lack of
success of today's generation of workflow
management systems:
• Workflow management systems were positioned as
the silver bullet solving all kinds of problems: they
could not meet the expectations.
• The lack of real standards on the one hand and many
vendors on the other hand has created a scattered
landscape were customers are reluctant to invest in
workflow products.
New Market SegmentsNew Market Segments
Other market segments started to co-opt some of the workflow capabilities:
Enterprise Resource Planning (ERP) started to increasingly support workflow capabilities.
Several Enterprise Application Integration (EAI) products currently support limited forms of
workflow capabilities (e.g., Active Software, New Era of Networks, and
CrossWorlds, and Vitria).
The average Fortune 2000 company relies on 49 enterprise-level applications to run its business and spends 25 to 33 percent of its
IT budget just to get them talk to one another.
Some of the workflow vendors are in the process of positioning their products in the E-commerce segment.
Has workflow technology failed?Has workflow technology failed?
If we narrowly focus on workflow market segment and predominant vendors of a few years ago: perhaps yes.
However, we see processes as an organic component of any EAI and E-commerce solution.
• Looking to the future, we discern two trends: – First, vendors are targeting vertical sectors or industry
specific solutions, e.g., telecommunication, healthcare.
– EAI, and E-commerce, especially in the context of vanishing
corporate boundaries in the networked economy, a new
breed of products will appear to dynamically create and
support virtual communities of commerce partners.
Architecture forArchitecture forInterorganizational WorkflowsInterorganizational Workflows
• Internet: the source of value moves from physical products to digital products.
• Custom point-to-point integration between every buyer and supplier is impractical: transform supply chains into open and interoperable marketplaces.
Most of the available marketplaces do not have enough facilities
to automate complex business processes. In this respect,
workflow systems should be exploited to model buying
and/or selling processes.
Architecture for ManagingArchitecture for ManagingBusiness ProcessesBusiness Processes
• Depending on how various stake holders – the
consumers, the intermediaries, and the
suppliers interact, and how the capability of
managing business processes is realized, we
offer architectures for managing business
processes
– process portal,
– process vortex,
– dynamically trading processes.
Process PortalProcess Portal
Portal
Enterprise A
Buyer
Intra-enterpriseBusinessProcesses
Cross-enterpriseBusiness Processes
WWW Catalogue
Enterprise B
WWW Catalogue
Enterprise C
Process PortalProcess Portal
• One-stop shopping for products or information
• Peer-to-peer interactions
• A portal is responsible for carrying out a majority
of activities using the data it has and the
transactions it supports.
• Predefined, (relatively) static business processes
A key characteristic of a portal is to own or
manage much of the data and information
it needs to meet its customers needs.
Process VortexProcess Vortex
W W W C a ta lo g u e
D o c u m e n t E x c h a n g e
C o n te n t M a n a g e m e n t & In te g ra t io n
B u s in e s s S e rv ic e s
T ra d in g P a r tn e r R e g is t ry
E n te r p r is e BV o r te x M a r k e tp la c e -1
B u y
S e l l /B u y
S e l lS e l l
S e l l /B u y
B u y
E n te r p r is e A
E n te r p r is e C
D o c u m e n t E x c h a n g e
C o n te n t M a n a g e m e n t & In te g r a t io n
B u s in e s s S e r v ic e s
T r a d in g P a r tn e r R e g is t r y
W W W C a ta lo g u e
D o c u m e n t E x c h a n g e
C o n te n t M a n a g e m e n t & In te g r a t io n
B u s in e s s S e r v ic e s
T r a d in g P a r tn e r R e g is t r y
W W W C a ta lo g u e
V o r te x M a r k e tp la c e -2
Process VortexProcess Vortex
• Interactions among buyers and sellers occur
through governed marketplaces
• They focus on very specific product lines
• Predefined business processes
• Single interface to catalogues and supplier
aggregation
Telecommunications industry: service provider needs to support
different classes of customers (e.g., individual residences, small
businesses, and large businesses) and require flexibility to deal
with a limited set of partners. For example, a CLEC may need
flexibility in leasing network capacities for long distance services
from QWEST communications or Level 3 communications.
Virtual Business ProcessesVirtual Business Processes
• A virtual business process of a virtual enterprise, also referred as interorganizational workflow, goes beyond a single enterprise boundary and it is constructed by combining the services provided by different companies
which are collectively called a trading community.
• Some of the fundamental issues that need to be addressed to implement a virtual enterprise are:
How to provide a mechanism whereby companies can advertise their services, other companies can look at them and, finally, incorporate these services into their own business process?
How to execute a virtual process spawning several enterprises without being managed by one physical enterprise?
Dynamically Trading ProcessesDynamically Trading Processes
VirtualMarketplace -1
X
?
?
WWW Catalogue
Enterprise D
WWW Catalogue
Enterprise A
WWW Catalogue
Enterprise B
WWW Catalogue
Enterprise C
VirtualMarketplace -2
Dynamically Trading ProcessesDynamically Trading Processes?
• Many complex interactions among enterprises
• Business processes are highly dynamic
• Based on the needs and preferences of a customer, a virtual process is constructed on the fly to meet this very particular demand of the customer.
• Participants are a group of semi-autonomous or
autonomous organizations that need to cooperate.
Telecommunications industry: one of the visions of the future networks
includes the facility to allow consumer devices to interact with other devices
and humans on the network in an integrated fashion. The device may be
able to specify a need for a specific type and quality of network services
required and the network dynamically composes a customized process to
allow processing of the request.
Technical ChallengesTechnical Challenges
Technical ChallengesTechnical Challenges
• Modeling and Design
• Analysis
• Enactment Services
• Interoperability
• Adaptability
Open Issues for modeling Open Issues for modeling interorganizational workflowsinterorganizational workflows
Integration of
• Organization modeling(e.g., in the networked economy, workflow processes will cross organizational boundaries and these boundaries will become fluid and subject to continuous change)
• Security Modeling
• Data Modeling
Open Issues for Analysis of WorkflowsOpen Issues for Analysis of Workflows
• None of the commercially available WFMSs offers verification capabilities, which go beyond trivial checks such as the absence of an initial task or input condition.
• In most WFMSs it is possible to model the synchronization (i.e., AND-join) of two alternative paths (i.e., two paths starting with an OR-split) without any warning at design time: at run-time such a construct will inevitably result in deadlocks.
• Research efforts should aim at simulation facilities.
Open Issues for Workflow EnactmentOpen Issues for Workflow Enactment
• Significant additional research and serious engineering efforts are needed to improve scalability, exception handling, automatic recovery, and other QoS criteria.
• Building all the capabilities from scratch within a workflow system without using any state-of-the-art supporting tools is not an easy task:– Iona Technology’s OrbixOTM 3.0 with Java and security
support for E-commerce applications,
– BEA’s M3 system.
• Agent-based workflow management systems still have a long path ahead before they will effectively address QoS issues.
Open Issues for Workflow InteroperabilityOpen Issues for Workflow Interoperability
• Only concrete implementations of standards (e.g., SWAP{, jFLOW) can provide real feedback for the improvement of such interoperability standards.
– Need to go beyond their capabilities (Sync nodes in METEOR).
• The interoperability solutions need to evolve towards multi-protocol and more heterogeneous middleware environments.
• The current interoperability specifications do not support organizational aspects in any significant way.
Open Issues for AdaptabilityOpen Issues for Adaptability
• If cases need to be transferred from an existing
process definition to a new process definition,
the use of a replication or a versioning mechanism
will not suffice.
• The term ‘dynamic change’ refers to the problem
of handling old cases in a new workflow process
definition.
How to transfer cases to a new version of the process?
New concepts and techniques are needed to avoid
anomalies caused by the dynamic change problem.
SummarySummary
• In the networked economy characterized by speed and distribution of both technological progress and business activities, an organic process technology will provide an integration fabric as well as key differentiator.
• Our view:
– Much of the future innovations as well as commercial activities will come about by the process technology as part of other key products and solutions, such as in EAI and E-commerce markets, that will power networked enterprises.
– On technology side, coordination, collaboration and information systems will continued to come closer to develop a new class of technology.
Additional InformationAdditional Information
RIDE’99 Proceedeings
Dogac et al NATO ASI Proceedings
A.P. Sheth, W.M.P. van der Aalst, and I.B. Arpinar
Processes Driving the Networked Economy:Process Portals, Process Vortexes, and Dynamically
Trading Processes