Method and apparatus of on demand business activity management using business performance management loops

Abstract

An architecture, system, and method are provided for a commitment loop solution for on demand business activity management. A Business Performance Management (BPM) loop is defined as a set of nodes each relating to different tasks for processing performance management trigger data generated by a business entity in real time, where the beginning or sensing element of the loop is triggered by a token (representing a business event from a business process) and the ending or executing element provides a business action to be implemented by the business entity. The token is passed from node to node sequentially in a particular order around the loop. Processing of the data represented by the token is governed by policies, which can be changed dynamically and follow a life cycle. On demand business activity management of larger aggregates of business entities (i.e. enterprises and value chains) is achieved by extending this architecture by building upon the BPM loops of the component entities to form a BPM net, adding nodes as necessary. This architecture, system and method can be implemented at multiple levels of granularity from operational or tactical business activities to enterprise wide strategic activities.

1 . A system for business performance management (BPM) of a business unit defined by business processes, comprising: 
 one or more tokens, each of which represents a business event from one of said business processes;    a BPM loop comprising a plurality of nodes, said plurality of nodes including at least a sensing node for receipt via said tokens of event data corresponding to said business event and an execution node for sending action data to a business unit for implementation in response to said business event;    one or more policies which govern transformation by said nodes of said event data into said action data,    wherein each of said tokens is passed sequentially from node to node in a particular order around said BPM loop, beginning with said sensing node and ending with said execution node, application of a policy at a node being triggered by said token, each said node further comprising a data acquisition element for acquiring data from another node, a data processing element for transforming data in accordance with one of said policies, and a data output element for transmitting data to another node,    wherein said event data is received by said sensing node in real time, said policies transform said event data in real time, and said action data is sent to said business unit in real time, and    wherein said policies may be adapted dynamically, including removal or addition of nodes in said plurality of nodes, responsive to changes in said business process or a monitoring and control objective related thereto.    
     
     
         2 . A system as in  claim 1 , wherein said plurality of nodes comprises: 
 a sensing node;    a detection node for detecting a business situation or exception in said business process from event data received by said sensing node;    an analyzing node for performing business analytics for determining alternative and recommended resolutions of said business situation or exception detected by said detection node;    a deciding node for selecting which of said resolutions are to be applied, when said selected resolution is to be applied, and to what business process said selected resolution is to be applied; and    an execution node for implementing said selected resolution,    wherein said BPM loop is managed by a loop leader node, there being functions performed by said loop leader node for management of said BPM loop, and said functions being performable by any of said plurality of nodes in said BPM loop, one of said plurality of nodes being selected as loop leader.    
     
     
         3 . A system as in  claim 2 , wherein said deciding node is a software agent.  
     
     
         4 . A system as in  claim 2 , wherein said deciding node provides an interface for display of said alternative and recommended solutions to a user, said deciding node then receiving at said interface said user selection of said resolution to be applied, said time of application, and said target of application.  
     
     
         5 . A system as in  claim 1 , further comprising at least a second BPM loop wherein a token received by a sensing node in said second BPM loop is received from a data output element of a node in a first other BPM loop, and wherein action data from an execution node in said second BPM loop is sent to a data input element of a node in a second other BPM loop, said token representing an event within said first other BPM loop and said action data from said second BPM loop being a commitment of said second BPM loop to said first other BPM loop.  
     
     
         6 . A system as in  claim 5 , further comprising a plurality of BPM loops for a plurality of business units, said plurality of BPM loops being connected by one or more commitments to form an enterprise.  
     
     
         7 . A system as is  claim 6 , further comprising a plurality of enterprises connected by one or more commitments to form a value chain.  
     
     
         8 . A system as in  claim 6 , wherein said plurality of BPM loops includes different pluralities for different levels of said enterprise, said different levels including a strategic organization, an operational organizations and an execution organization.  
     
     
         9 . A system as in  claim 8 , wherein said plurality of BPM loops includes at least one vertical plurality having BPM loops from each of said different levels of said enterprise.  
     
     
         10 . A system as in  claim 9 , wherein said vertical plurality is dynamically adapted responsive to changes in one or more of said policies, said changes resulting in adding or removing at least one BPM loop.  
     
     
         11 . A method for business performance management (BPM) of a business unit defined by business processes, comprising the steps of: 
 providing one or more automated tokens, each of which represents a business event from one of said business processes;    constructing, in software and using a database, a BPM loop comprising a plurality of nodes, said plurality of nodes including at least a sensing node for receipt via said tokens of event data corresponding to said business event and an execution node for sending action data to a business unit for implementation in response to said business event;    storing in said database one or more policies which govern transformation by said nodes of said event data into said action data,    wherein each of said tokens is passed sequentially from node to node in a particular order around said BPM loop, beginning with said sensing node and ending with said execution node, application of a policy at a node being triggered by said token, each said node further comprising a data acquisition element for acquiring data from another node, a data processing element for transforming data in accordance with one of said policies, and a data output element for transmitting data to another node,    wherein said event data is received by said sensing node in real time, said policies transform said event data in real time, and said action data is sent to said business unit in real time, and    wherein said policies may be adapted dynamically, including removal or addition of nodes in said plurality of nodes, responsive to changes in said business process or a monitoring and control objective related thereto.    
     
     
         12 . A method as in  claim 11 , wherein said plurality of nodes comprises: 
 a sensing node;    a detection node for detecting a business situation or exception in said business process from event data received by said sensing node;    an analyzing node for performing business analytics for determining alternative and recommended resolutions of said business situation or exception detected by said detection node;    a deciding node for selecting which of said resolutions are to be applied, when said selected resolution is to be applied, and to what business process said selected resolution is to be applied; and    an execution node for implementing said selected resolution,    wherein said BPM loop is managed by a loop leader node, there being functions performed by said loop leader node for management of said BPM loop, and said functions being performable by any of said plurality of nodes in said BPM loop, one of said plurality of nodes being selected as loop leader.    
     
     
         13 . A method as in  claim 12 , wherein said deciding node is a software agent.  
     
     
         14 . A method as in  claim 12 , wherein said deciding node provides an interface for display of said alternative and recommended solutions to a user, said deciding node then receiving at said interface said user selection of said resolution to be applied, said time of application, and said target of application.  
     
     
         15 . A method as in  claim 11 , further comprising the step of constructing at least a second BPM loop wherein a token received by a sensing node in said second BPM loop is received from a data output element of a node in a first other BPM loop, and wherein action data from an execution node in said second BPM loop is sent to a data input element of a node in a second other BPM loop, said token representing an event within said first other BPM loop and said action data from said second BPM loop being a commitment of said second BPM loop to said first other BPM loop.  
     
     
         16 . A method as in  claim 15 , further comprising the step of constructing a plurality of BPM loops for a plurality of business units, said plurality of BPM loops being connected by one or more commitments to form an enterprise.  
     
     
         17 . A method as is  claim 16 , further comprising the step of connecting a plurality of enterprises by one or more commitments to form a value chain.  
     
     
         18 . A method as in  claim 16 , wherein said plurality of BPM loops includes different pluralities for different levels of said enterprise, said different levels including a strategic organization, an operational organization, and an execution organization.  
     
     
         19 . A method as in  claim 18 , wherein said plurality of BPM loops includes at least one vertical plurality having BPM loops from each of said different levels of said enterprise.  
     
     
         20 . A method as in  claim 19 , wherein said vertical plurality is dynamically adapted responsive to changes in one or more of said policies, said changes resulting in adding or removing at least one BPM loop.