ibm.com/redbooks Business Performance Management . . . Meets Business Intelligence Chuck Ballard Colin White Steve McDonald Jussi Myllymaki Scott McDowell Otto Goerlich Annie Neroda Proactive monitoring and management to maximize business performance Continuous data workflows for real-time business intelligence Information integration for an enterprise view Front cover Business Performance Management . . . Meets Business Intelligence July 2005 International Technical Support Organization SG24-6340-00 © Copyright International Business Machines Corporation 2005. All rights reserved. Note to U.S. Government Users Restricted Rights Use, duplication or disclosure restricted by GSA ADP Schedule Contract with IBM Corp. First Edition (July 2005) This edition applies to Version 8.1 of DB2 UDB, Version 8.2 of DB2 Alphablox, Version 4.2.4 of WebSphere Business Integration, Version 5.0 of WebSphere Portal Server, and Version 5.0 and Version 5.1 of WebSphere Application Server, Version 3.5 of WebSphere MQ Workflow, Version 5.3 of WebSphere MQ, and Version 5.1 of WebSphere Studio Application Developer. Note: Before using this information and the product it supports, read the information in “Notices” on page vii. © Copyright IBM Corp. 2004. All rights reserved. iii Contents Notices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . vii Trademarks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . viii Preface . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .ix The team that wrote this redbook. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . x Become a published author . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xiii Comments welcome. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xiii Introduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Business innovation and optimization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Business performance management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Optimizing business performance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Contents abstract . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Chapter 1. Understanding Business Performance Management . . . . . . . 11 1.1 The BPM imperative . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 1.2 Getting to the details . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 1.2.1 What is BPM again? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 1.2.2 Trends driving BPM. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 1.2.3 Developing a BPM solution . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 1.3 Summary: The BPM advantage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 Chapter 2. The role of business intelligence in BPM. . . . . . . . . . . . . . . . . 27 2.1 The relationship between BI and BPM . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 2.1.1 Decision making areas addressed by BPM . . . . . . . . . . . . . . . . . . . 29 2.1.2 BPM impact on the business. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 2.2 Actionable business intelligence . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 2.2.1 Key Performance Indicators . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 2.2.2 Alerts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 2.2.3 Putting information in a business context . . . . . . . . . . . . . . . . . . . . . 35 2.2.4 Analytic applications . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35 2.3 Data warehousing: An evolution . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37 2.3.1 The need for real-time information . . . . . . . . . . . . . . . . . . . . . . . . . . 37 2.3.2 Data warehousing infrastructure . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37 2.3.3 Data federation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41 2.4 Business intelligence: The evolution . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46 2.4.1 Integrating BPM and BI . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47 Chapter 3. IBM BPM enablers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51 iv BPM Meets BI 3.1 IBM BPM Platform. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51 3.1.1 User Access to Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56 3.1.2 Analysis and Monitoring . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61 3.1.3 Business Processes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69 3.1.4 Making Decisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71 3.1.5 Event Infrastructure. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72 3.1.6 Enabling IT to help the business . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74 3.1.7 Bringing it all together . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77 3.2 Web services. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79 3.2.1 The promise of Web services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80 3.2.2 Web services architecture. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80 3.2.3 IBM Web services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82 3.2.4 Using DB2 as a Web services provider and consumer. . . . . . . . . . . 82 3.2.5 WebSphere Information Integrator and Web services . . . . . . . . . . . 86 Chapter 4. WebSphere: Enabling the solution integration . . . . . . . . . . . . 97 4.1 IBM Business Integration Reference Architecture. . . . . . . . . . . . . . . . . . . 98 4.1.1 BIRA components . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 98 4.2 IBM WebSphere business integration . . . . . . . . . . . . . . . . . . . . . . . . . . . 103 4.2.1 WebSphere Business Integration Modeler . . . . . . . . . . . . . . . . . . . 104 4.2.2 WebSphere Business Integration Monitor. . . . . . . . . . . . . . . . . . . . 104 4.2.3 WebSphere Business Integration Server Foundation . . . . . . . . . . . 105 4.2.4 WebSphere Business Integration Server . . . . . . . . . . . . . . . . . . . . 111 4.2.5 IBM WebSphere MQ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 122 4.2.6 WebSphere Business Integration Connect . . . . . . . . . . . . . . . . . . . 122 Chapter 5. DB2: Providing the infrastructure . . . . . . . . . . . . . . . . . . . . . . 127 5.1 Data warehousing: The base . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 128 5.1.1 Scalability for growth . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 128 5.1.2 Partitioning and parallelism for performance. . . . . . . . . . . . . . . . . . 130 5.1.3 High availability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 133 5.2 Information integration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 134 5.2.1 Data federation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 134 5.2.2 Access transparency. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 135 5.3 DB2 and business intelligence . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 135 5.3.1 Continuous update of the data warehouse . . . . . . . . . . . . . . . . . . . 135 5.3.2 Concurrent update and user access . . . . . . . . . . . . . . . . . . . . . . . . 137 5.3.3 Configuration recommendations . . . . . . . . . . . . . . . . . . . . . . . . . . . 138 Chapter 6. BPM and BI solution demonstration. . . . . . . . . . . . . . . . . . . . 143 6.1 Business scenario . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 143 6.1.1 Extending the scenario . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 146 6.1.2 Scenario product architecture . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 147 6.1.3 Hardware and software configuration . . . . . . . . . . . . . . . . . . . . . . . 148 Contents v 6.2 Implementing the BPM scenario . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 150 6.2.1 The business processes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 150 6.3 Adding BI to the demonstration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 160 6.3.1 Federation through WebSphere Information Integrator . . . . . . . . . 161 6.3.2 Federation through DB2 XML Extender . . . . . . . . . . . . . . . . . . . . . 162 6.4 Adding DB2 Alphablox to the demonstration. . . . . . . . . . . . . . . . . . . . . . 166 6.4.1 Configuring the components . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 166 6.5 Adding WebSphere Portal to the demonstration . . . . . . . . . . . . . . . . . . . 170 6.5.1 Configuring the components . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 171 6.6 Completing the scenario . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 173 6.7 Additional dashboard examples . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 175 Appendix A. Getting started with BPM . . . . . . . . . . . . . . . . . . . . . . . . . . . 179 Getting started with BPM . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 180 Selecting measures and KPIs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 181 Abbreviations and acronyms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 185 Glossary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 189 Related publications . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 197 IBM Redbooks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 197 Other publications . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 197 Online resources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 198 How to get IBM Redbooks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 198 Help from IBM . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 198 Index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 199 vi BPM Meets BI © Copyright IBM Corp. 2004. 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You may copy, modify, and distribute these sample programs in any form without payment to IBM for the purposes of developing, using, marketing, or distributing application programs conforming to IBM's application programming interfaces. viii BPM Meets BI Trademarks The following terms are trademarks of the International Business Machines Corporation in the United States, other countries, or both: Eserver® Redbooks (logo) ™ iSeries™ z/OS® AIX® Cube Views™ CICS® Database 2™ Distributed Relational Database Architecture™ Domino® DB2 Connect™ DB2 OLAP Server™ DB2 Universal Database™ DB2® DRDA® Everyplace® Hummingbird® Informix® Intelligent Miner™ IntelliStation® IBM® IMS™ Lotus Notes® Lotus® MQSeries® Notes® Redbooks™ SupportPac™ Tivoli Enterprise™ Tivoli® WebSphere® Workplace™ The following terms are trademarks of other companies: Pentium, Intel logo, Intel Inside logo, and Intel Centrino logo are trademarks or registered trademarks of Intel Corporation or its subsidiaries in the United States, other countries, or both. 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[...]... managing business performance Business intelligence (BI) is a key enabler of BPM Hence the title of this redbook, Business Performance Management Meets Business Intelligence 2 BPM Meets BI Business performance management BPM is all about taking a holistic approach for managing business performance Businesses align strategic and operational objectives, and business activities, to fully manage performance through. .. Process Management Business Performance Management Corporate Performance Management Business Service Management Figure 1 A holistic approach Then by putting that information and understanding in context against the business goals and priorities, action can be taken quickly to improve execution, successfully meet the business measurements, and truly begin to manage business performance The following comparison... informed and proactive decision making The holistic approach enables the integration and use of business intelligence, process management, business service management, activity monitoring, and corporate performance management to achieve a single view of their enterprise The elements of that holistic approach are depicted in Figure 1 Business Intelligence Business Activity Monitoring Business Process Management. .. warehousing, and business intelligence Process Management: including business processes, key performance indicators (KPIs), alerts, process status, operational activities, and real-time process monitoring Business Service Management: including systems monitoring and optimization of IT operations to meet the business goals The results of these capabilities are brought together at the point of integration for management. .. productivity and effectiveness The integration of business and IT process management, and business intelligence is a key enabler for BPM It provides the ability for you to move more quickly towards managing and meeting your business measurements and goals A high-level view of the framework and component integration is depicted in Figure 2 The BPM framework is an enabler for the integration of business and IT... ESM and maps the business process onto IT resources This higher level view and the goal to align strategy throughout the enterprise provide the enterprise perspective that is required for BPM The requirement for BPM is not new Management has always had a need to manage business performance Previously, however, they have not had the technology to implement it The technology is now here to satisfy the. .. including: Business Performance Management Enterprise Performance Management Corporate Performance Management Business Intelligence Business Services Management Business Process Management Business Activity Monitoring More information on BIO will be forthcoming, but, for purposes of this redbook, we will continue to use the term BPM BPM is a paradigm that enables success by proactively managing business performance. .. processes The underlying technology then enables the operations and information flow, providing the capability for you to make the decisions required to best manage the business This is your competitive advantage! Introduction 5 Understand the state of key business process operations in realtime Business Business process Performance view Management IT process view Visualize IT process operations in business. .. in business terms, and manage service levels to business objectives Understand the status of business processes across business and IT, in context against goals and trends, and enable fast action to improve execution Figure 2 BPM framework Optimizing business performance There is detailed information in the subsequent chapters of this redbook on managing and optimizing business performance, along with... changing needs, are a liability As businesses analyze their operational activities in an effort to become more efficient and effective, they are looking more and more to IT to identify and implement an improved and integrated business process environment If you are looking for this business agility and the ability to manage your business performance, information is the enabler and IBM is uniquely positioned . 8 Chapter 1. Understanding Business Performance Management . . . . . . . 11 1. 1 The BPM imperative . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 1. 2 Getting to the. monitoring Business Service Management: including systems monitoring and optimization of IT operations to meet the business goals The results of these capabilities are brought together at the point. author, speaker, and consultant in the areas of Business Intelligence and Business Performance Management. We have drawn upon his insights, and in some sections have used graphics and text directly