Business Management Presentations Process Modeling

BPD Keynote: Design is How We Change the World


Keynote at the 8th International Workshop on Business Process Design, Tallinn, Estonia, September 3, 2012. Discusses design thinking, coming up with new ideas, and how design thinking is taught at Stevens Institute of Technology. Thanks to Michael Rosemann and Jeff Nickerson for ideas and discussion.


Design is How We Change The World8th International Workshop on Business Process DesignMichael zur Muehlen, Ph.D.Stevens Institute of TechnologyHowe School of Technology ManagementCenter for Business Process InnovationHoboken, New 1 Marco Polo describes a bridge, stone by stone. “But which is the stone that supports the bridge?” Kublai Khan asks. “The bridge is not supported by one stone or another,” Marco answers, “but by the line of the arch that they form.” Kublai Khan adds “Why do you speak to me of the stones? It is only the arch that matters to me.” Polo answers: “Without stones there is no arch.”Italo Calvino: Invisible Cities, 1972 2 BPD 2011 Recap Design is important: Design is how we change the world Validation is important: How do we tell good design from bad? Trial & Error: Where are the experiments? 3 4 design |dəˈzīn|purpose, planning, or intention thatexists or is thought to exist behind an action, fact, ormaterial object. 5 “Most businesses have just 3 core processes:1. selling stuff2. delivering stuff, and3. making sure you have stuff to sell and deliver” Geary Rummler 55 Fortune 500 Business 1962 Defined capabilities Defined services Defined processes Defined endpoints Defined integration mechanisms 7 Fortune 500 business 2012 Evolving capabilities Continual new service development What process? Device evolution drives endpoints Integration across platforms, parties 8 Process DesignTesco, South Korea Process Design vs. Process EngineeringFew engineers and composers […] can carry on amutually rewarding conversation about the content ofeach other’s professional work. Herbert Simon, The Sciences of the Artificial (1996), p. 137. 10 Political Ecology Problems are existing solutions someone has issues with Requi re Owne ments E rs ng (2 ß 20 hip and 002) 02 S 7: pringe Copyright 152–17 Solutions lead to Problems lead to Solutions r-Ver 1 lag Lo ndon Limite d Large Unde -Scale Re Requ Repeat ir rstan Enginements ding quirement eerin g Mark the P s Ana olitic Depar Bergm al Ec lysis Rev a Arbor tment of an a, , Mic J higan, formation ohn L In ology isit USA; anc es Depar d Compute lie Kin b of Re ed: The g an quire n ment eed for tment r of Info Science, U d Ka rmatio nivers lle L n Sys ity This tems, of Californ Case ia yytin c en s Eng for pape r add Weste , Irvine, C rn Res aliforn ineer la re engin rge syst sses the eeri poli erve ia Unive , USA; S rsity, chool b ing ng th em s, a ti C of levela enga g e nd a cal nature nd, O Informatio syste ed with ory and rgues of req hio, U SA n, Uni versity m th decis require ese issu practice that re uirements of Mic higan, ion p ments es. 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W are inad e in tec a hnolo voiding l, gene s is m ffecti togeth econom ous e ost e ve re ugh the o e are in logical, issues a must turn quate to sa gies and e ic n q baseli er in a c and in gineering ffectively uirements h o n can w erently in rganisatio d try to our atten ve large st space ne for c urrent so itutional in which seen as a n syste e expect terwoven al and in understa on to a ti s. onstru lution facto techn m de to m in su stituti nd h ction sp rs ica ve ak Keyw of p ace that are broug l, requir c emen lopers m e progress h initiativ nal chan w o o ords: ropo provid ht The ts for ight in u es. O ges engin sed es th su e Fu Syste ering; P nctional new soluti e helpfu followin such syst ccessfull nderstand nly then o on l start g exa ems. y sta ing h m re te an quire litical re requireme world ing mple b d ma ow ments quire n ments ts; Hete Lond was sho point. On y Drumm nage o ck ; Sy ro stem geneous been n Stock ed by th 11March ond [7] p unde Exch e sud 1993 rovid follo e failure s; wing r develo ange Tau den canc , the fina s a 1. Intr restru over pmen ru e nc c 2 t for s projec llation of ial oduc ments ture and 0 years more t. Ta the tion o restru . Taurus organise f delibera than si rus had u Larg c ti x ye risk p e-sca le back turing o was ex the excha ons abou ars, roposi software proce bone syste f the pecte d nge’s t how telec omm tion desp developm ss m fo securitie to enab trade se to unica By th involvin s tra le a ttle- tions ite huge a ent has re e g r a d Corre techn dv m while n the pro digitalisa fully au e by fo radical Informspondenc e and ologie ances in c ained a h je $600 securities ct had co tion of bo mated se ing a to rm ation s. L ompu ig ting a h- CA 92 st the nds a 697-46and Comoffprint re arge exch milli on [2 comp anies nd ce ttlem ent 50, U puter qu proje nd an exch rt SA. E Scien ests to: M cts prom ge, whic ]. The ex had inve ange $13 ificates. mail: ce, Uni . Bergm in o h wa p st 0m mberg ve an man@rsity of C , Depar was tional lite s he ected tran ed and a illion, ca ra ra d when ncelled b ture, we lded as sformatio ditional ics.uc al tmen ifornia, Ir t of e n n of perfo managem fore a sin t out with the Big vine, rm e the g B deliv ance re nt discov le modu a whimpe ang in ered e le in an quired of red that th was imp r. Taurus accep th e le table e system function mented time ali fram could n ty and e. ever be Bergman, King, Lyytinen (2002) 11 Functional Ecology Bergman et al (2002), p. 158. 12 Clear Requirements, Clear Goals? “Two key assumptions frame traditional [Requirements Engineering]. One is that requirements exist ‘out there’ in the minds of stakeholders (users, customers, clients), and they can be elicited through various mechanisms and refined into complete and consistent specifications. The second is that the key stakeholders operate in a state of goal congruence, in which there is widespread and coherent agreement on the goals of the organisation.” Bergman et al. (2002), p. 154 Neither of these assumptions is necessarily true. 13 Understanding the Problem Space Describing a problem in general terms is hard So: We often use examples Most examples tend to prescribe solution fragments Problem: Solution fragments constrain the design space Good designers elicit the essence of the problem Keep asking: What is the underlying problem? Why is it a problem? 14 Process DesignDriven by an Opportunity 16 Example: Military Recruiting 17 19 20 Process Design You are in charge for the process “Visiting tourists at the Empire State Building” What is your objective? What possible process designs can you come up with? FruitCircle Sport OvalFruitOval Sport Circle 22 Reprin t A city from the maga is not zin By Ch a tree e Design, Lond risto pher A on: C ouncil T lexand of Ind mathe he article er ustria m th l Desi the pa atician – a at follow gn, N° st few specia s has 206, 1 b y L ew years. l disti won 966] is Mu T n fo mford ogether w ction amon r itself, T , it wa ith a se g all th and it Found he 1965 aw s selec ted as ries of at has s auth occasi ation and rds follow a one of articles by A been writt or – an arc the 19 d e o a Corpo ns they ha dministere series start a 65 Kau a Louise H n about de hitect and fmann u si The la ration v , and e gone to d by the In ed in 1960, Intern xtable and gn during ationa su design test awards bsequentl Charles an itute of In onsored b st sp l Desig two essays y d n Awa the firs, published were given have prov Ray Eam ternational y the Edgar rds. id e been o t occasion in periodica for “the m ed a serie s, Walter Education. J. 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It wa ribes, and dges rep e a whil of us h an s th ort Archit A City is not e, to ta who a most build d engineers felt that Dr e analytica ec ke in th re pri ings, p as it is Alexa lSince tural Forum a Tree is re e broa ma ro der vie rily concern ducts and se city plan ers to nd thof the e article w , where it produced h w. ed wit h such rvices ners, autho as firs o e m r. t publi riginally ap re by kind things ust fit. shed so pe p should me slig ared in tw ermission o ht am o part f the endm s A ents h in April an merican jo ave be d u en ma May last rnal de at th ye e requ ar. est 1 23 What just happened? 1,2,3,4,5 1,2,3,4,5 3,4,5 3,4,5 1,2 3,4 1,2 3,4 1 4 5 2 3 1 2 3 4 5 24 What just happened? 1,2,3,4,5 1,2,3,4,5 2,3,4,5 2,3,4,5 1,2 2,3,4 1,2 2,3,4 4 5 1 2 3 1 2 3 4 5 25 ShapeSporting Good Oval Circle Fruit Football Soccer Ball Melon Orange 26 Design and Categorization We tend to break content into non-overlapping boxes Reality consists of many overlapping parts Traditional requirements analysis techniques are top-down Mining reality might help, but yields complexity 27 Design as a Search Process The are a large (virtually infinite) number of possible designs for a given problem scenario. A designer fleshes out design ideas from this design space. The design ideas can be evaluated using criteria that a given design has to satisfy. Design is seen as a formal, structured process. 28 Types of Solutions Local solution space – all solutions that can be reached from the current solution with available skills and resources Global solution space – all possible solutions, for which resource might need to be mobilized. Problems are used to mobilize resources 29 Question What is the next conceivable design that we have not thought of yet? 30 Process Execution Space 31 Design Space and Evaluation Space Design Evaluation Jeff Nickerson (2012) 32 Design Space: Example # of steps in the process A B C # of human operators involved in the Cf. Jeff Nickerson (2012) process 33 Evaluation Space: Example $ execution cost C B A $ implementation cost Cf. Jeff Nickerson (2012) 34 Design Dimensions for Processes Structural Complexity Activity Design Behavioral Complexity Discrete Paths Decisions Data Integration Inputs Outputs Resource Integration … 35 Evaluation Dimensions for Processes Simplicity Adaptability Usability Modularity Security Maintainability … 36 Imitate, Adapt, or Innovate? Given a particular business problem, a designer’s choices are Imitate: To imitate existing designs, possibly by transferring them from other domains or implementation platforms. Adapt: To provide detail for a high-level design sketch that is deemed applicable to more than one problem scenario (i.e. reference models). Innovate: To develop an entirely new design 37 3816 3917 4018 Process DesignDriven by a Constraint Systematic Doubt (Horst Rittel) Describe a situation and frame a problem Then negate each statement – one at a time – to generate a solution. Make the last statement “Problem:” 42 Systematic Doubt (cont’d)“The principle of systematic doubt relies on a simple principle of logic -if statements in a set make the set true, then the negation ofany one of the statements makes the set false. So if a certainnumber of conditions contribute to the problem, the negation of anyone of them negates the whole problem. First, we express the problem ina story form as a number of statements.” Horst Rittel, class notes 1978 43 Systematic Doubt – ExampleA1  At the Stadium in Southern OaklandA2  Sporting and concert events are held.A3  After an event everyone leavesA4  For many, Bart is the only means of transportationA5  Access to Bart exists solely by pedestrian bridgeA6  The bridge is narrowA7  People are funneled in from two sidesA8  They walk slowly because of the density of peopleA9  People dont like being in a herd for half an hourA10 Problem – Reduce the time spent getting from the stadium to Bart. 44 Negating the IssuesN1  Not at the stadium in Southern Oakland – Move the stadium to a different location 45 Negating the IssuesN1  Not at the stadium in Southern Oakland – Move the stadium to a different locationN2  Sporting and concert events are not held – With no events, there would be no crowdsN3  After an event everyone doesnt leave – Stagger the exitingN4  For many Bart is not the only means of transportation – Provide other meansN5  Access to Bart doesnt exist solely by a pedestrian bridge – Build a tunnelN6  The bridge isnt narrow – Widen the bridgeN7  People arent funneled in from two sides – Allow approach from only one sideN8  They dont walk slowly – Teach people how to move more quickly in a crowdN 9  People like being in a herd for half an hour – Play music, provide entertainmentN 10  No problem – Let them wait on the bridge; consider the wait as part of the event. 46 Teaching Design – Learning Goals Each student can develop an integrated IT architecture that satisfies technical and organizational constraints Students develop viable designs Starting from a broad problem, students develop a specific problem scenario 47 Evaluation: Starting from a broadproblem, students develop a specificproblem scenario Poor Acceptable Good The scenario isconsistent with the broad No link Apparent link Strong link problem definitionThe scenario is specific,detailing actors, systems, Restatement of the Additional Detail Strong, specific example and the messages problem between themThe scenario represents Gets to the heart of thethe core of the broadly Trivial Worthy of solution matter defined problem 48 Evaluation: Students develop a viabledesign Poor Acceptable Good The design is Diagram conventions The idea can be The idea is very clear communicated well are ignored understoodThe design fulfills the The constraints are The design is arguably The design is clearly problem constraints ignored within the constraints within the constraintsAlternative designs are generated, and Several similar Several quite different No alternativescompared against each alternatives alternatives other The designdemonstrates a holistic grasp of both the People or technology Their interaction is Both are considered technical and social are ignored clearaspects of the proposed system The design is trivial or The design is innovative The design is strong The design is solid confused or thought-provoking 49 Students develop viable designs Problem Definition Distributed Node Topology Redesign stock exchanges and the they Chicago node London node interconnect and work together, taking trading, msft.stock.nasdaq t.stock.nyse gold.commodity.tse yen.currency.ftse settling, and resiliency into yen.currency.ftse account.Distributed Node TopologyThe core backbone for trading will consist of an Internet-style network of distributed nodes. Each stock/bond/security will have San Francisco node New York node between 3 and 16 trading nodes depending upon transaction msft.stock.nasdaq msft.stock.nasdaq t.stock.nyse volume demands for the stock. Stock transaction details are gold.commodity.tse gold.commodity.tse synchronized in real-time amongst the nodes which are yen.currency.ftse established for each stock. The trading nodes are distributed geographically throughout the world and are connected via a secure high-speed fully distributed backbone with multiple Tokyo node Houston node connectivity paths between nodes. t.stock.nyse t.stock.nyse yen.currency.ftse yen.currency.ftse gold.commodity.tse Trading Transaction ProtocolBuyers and sellers connect to the trading network through a market maker. The market maker is authorized to connect to the network nodes Market Seller Market to conduct transactions. When a trade is requested, the Maker Maker market maker uses the TNNS to locate and connect to a node (Seller) (Buyer) Buyer which is responsible for coordinating trading of the stock. Public Key transactions will be done first if the market maker and the node are not aware of each others public keys. Once Trading Transaction Protocol sell (Price, Quantity, Spread, Time Limit, MM (Seller) ID) this is done, any number of trades can be executed, each Returns Ask_ID if successful placing the ask Returns failure if ask unsuccessful transaction packet will be encrypted using the exchanged public keys. buy (Price, Quantity, Spread, Time Limit, MM (Buyer) ID) Returns Bid_ID if successful placing the bid Returns failure if bid unsuccessful Trading Node Naming System (TNNS) revoke (Ask_ID/Bid_ID, MM (Buyer) ID) Nodes are located using a DNS-style naming network called Returns success if stock has not yet been traded Returns alreadytraded if it has been traded and cannot be revoked Trading Node Naming System (TNNS). This system will Returns cancelled if subdomain controller cancelled transaction incorporate caching and redundancy just like DNS does. status (Ask/Bid ID, MM (Buyer/Seller) ID) Unlike DNS, each name will contain a complete list of Returns pending if not already traded Returns sale details if traded (trade time, price, quantity) redundant trading nodes for the particular stock rather than Returns cancelled if subdomain controller cancelled transaction one individual server location. Each subdomain controller has open_trading (Subdomain Controller ID, Authorization Codes) control over the addition of new names and the nodes that the halt_trading (Subdomain Controller ID, Authorization Codes) names are used on. In addition, the subdomain controller can Examples of Transaction Requests: halt trading and open trading on a particular stock by issuing a ttp://t.stock.nyse/sell (Body of request contains encrypted structure containing variables price, quantity, spread, time limit, MM ID) command to the nodes. If a stock is halted, they have the ttp://t.stock.nyse/buy (Body similar to sell) option of canceling active buyer and seller requests. ttp://t.stock.nyse/status Stock Name Examples msft.stock.nasdaq Microsoft on the NASDAQ Exch. Trading Node Naming System (TNNS) t.stock.nyse AT&T / New York Stock Exch. Root Chris Boraski Node MGT 784ST Assignment 5 Vanguard Index Fund / Nasdaq 2/14/2004 gold.commodity.tse nyse subdomain Value of Gold Ounce / Tokyo yen.currency.ftse Value of Yen / London Exchange nyse nasdaq tse ftse bond stock stock fund commodity currency nyc t msft vbinx gold yen 50 The Bottom Line Design requires consideration of two distinct spaces: design space and evaluation space Our cognitive facilities are limited when dealing with multi- dimensional problems Process engineers should learn design thinking, and process designers need to appreciate an engineer’s viewpoint We can teach this 51 RecommendedReading Frederick P. Brooks: The Design of Design Addison Wesley, 2010. Herbert Simon: The Sciences of the Artificial. MIT Press, 1996. 52 In every age someone, looking at Fedora as it was, imagined a way of making it the ideal city, but while he constructed his miniature model, Fedora was already no longer the same as before, and what had been until yesterday a possible future became only a toy in a glass globe.Italo Calvino: Invisible Cities, 1972 53 Thank You – Questions? Ph.D. ion Mu ehlen, ess Innovat zur oc ment M ichael Business Pr gy Manage for nolo Center hool of Tech hnology Sc ec Howe Institute of T dson s u Steven int on the H Po Castle , NJ 07030 3 n 6-829 H oboke +1 (201) 21 5385 Phone : 216- +1 (201) @steve /bpm Fax: uehlen du : mzurm w.stevens.e urmuehlen E-mail ww http:// mz Web: www.s lid slide s: 54

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