Semantic technology for improving business process management and E-Business - Essay Example

?SEMANTIC TECHNOLOGY FOR IMPROVING BUSINESS PROCESS MANAGEMENT AND E-BUSINESS INTRODUCTION Ever changing business environment have forced business toadapt to the changing business dynamics. Businesses are therefore, required to remain abreast to the changing environment efficiently and effectively. Among the most dominant factors posing change in business environment are technological perspectives. Technology has since become part and parcel of the business; therefore, changing paradigms in the technology directly pose and effect in the businesses. From traditional to contemporary perspectives, core objective of the businesses has been to manage business operations so that enables business to achieve the competitive advantage over competitors (Dean, DiGrande, Field, and Zwillenberg, 2012). Since introduced information technology has been a constantly upgrading paradigm and so business are attempting to align the functions developing more concrete connections within and outside business environment; hence, entire stakeholders. Technology expansion has changed the perspectives and businesses are now being viewed as system having core components of input, process and output. Around these core components, business processes are continuously evolving for improvement with changing dynamics mainly arising from other perspectives. Broadly the sequence can be regarded as the information technology to recent integration of semantic technology in business processes. Thereby, the report herein attempts to explore the contribution of semantic technology in improving specific business areas of business process management and e-business conduct. In addition to specifically explore the understudy perspectives the report has developed the detailed reference with respect to technological banking leader Citibank. DISCRIPTION OF THE THEORY SEMANTIC BUSINESS PROCESS MANAGEMENT Business process management has over years achieved success to a great extent automating the critical components of the life cycle of business process. Semantic business process management has an objective of attaining process space in an organization to an increased level of knowledge. Success in achieving the process space in the organization benefits business with reasoning with respect to entire business processes including combination as well as execution of process. Integration of semantics technologies in business process management is achieved with the use of ontology that facilitates the semantic information to the business process. Further, business process automation is enhanced with provision of the semantic web techniques. Business ontology is build using conceptualized core Semantic Web Services as well as Web Service Modeling Language. Sample organizational is depicted in the image below: (Pedrinaci, Domingue, and Brelage, ) As visible from the image above the organizational ontology has various segments and connection between the resources, structure, functions, policies, setup and strategies. The interconnection built between various aspects being facilitated by the core components of the semantic integration in the business process. These interconnections enhance the role of bidirectional interconnection in the business process. Hence, business process management has gained gain efficiencies in entire processes specifically the bottleneck avenues of business processes. ORIGIN AND EVOLUTION OF THEORY Over years of development, information systems are attempting to enhance the dual perspective in the computers’ languages; first, increasing computers capacity to enhance understanding the human language with greater comprehension and intelligence while second refers to techniques aimed at providing existing content with labeling related to the domain (Mika, Elfring, & Groenewegen, 2006; Warren, Thurlow, & Alsmeyer, 2006). Further, semantic technology enables metaphorical as well as logical analysis from the queries in the similar context in which it is asked irrespective of the language as well as pattern it is asked and hence providing closest response to the queries (Scagliarini, 2011). Semantic technology has been under evolution since 1990 with information based development as follows: (Davis, 2005) Observable from the above image increased pace of adoption as well information evolution has given rise to the information wave entitled semantic. Also noticeable from the image is fact that increased role of semantic wave in next half century. The pace of adaptability has been so rapid that over years investments in the technological perspective has increased in multiples as presented below: (Davis, 2005) Semantic technology and respective solutions has taken the leading positions in the business conduct and therefore has moved on from being early adopters’ product to being mainstream solution to business for improving business functions (Davis, 2005). With machine and human interfaces in play, semantics technology based solution provides semantic metadata for the varying sorts of information that provide more query centric solutions and information. The flow of process of information with semantic technology integration is as follows: (Davis, 2005) Owing to primary objective of business to maximize profitability, businesses have increasingly been adopting semantic technology as a supporting part of business function. Therefore, the investment and return structure of semantic technology in business has also been well rewarding. Semantic technology has expanded various dimensions such as cognition, services, content and web with elaborations (Davis, 2005). For instance, integrating semantic meta-structures in business systems business can explore smart content about the customer search and thereby identifying the opportunity for serving business customers’ needs in distinguished manner. Various themes arising from the increased adoption of semantics technology are presented in the image below: (Davis, 2005) All of these and other services are intended to the break boundaries of information that are restricted between business walls and indispensible insight from the huge information and customer base available to people around the world as well as business (Davis, 2005).Increased integration of the semantic technologies in the business and other spheres have also expanded the future prospects for the technology for business integration. MODELLING DIGITAL BUSINESS MODELS AND INNOVATION BUSINES PROCESS MANAGEMENT AND E-BUSINESS In light of the ever changing characteristics of the business environment, firms have developed perspectives to remain increased adaptability in the businesses (Becker, Pfeiffer, Falk, & Rackers, 2010). Central objective of integration in the business is based on the fact of enhancing value with increased efficiency in workflow as well as reduced discrepancy. Business process being defined as set of activities aimed to achieve certain goal and achieve competitive advantage over competitors. Therefore, considering business as system with input process and output, Business process management (BPM) has evolved as a scientifically defined systematic approach for developing organization's flow of work so integrated that has higher level of effectiveness and efficiency. Further, the objective of business process management is also to make efforts in domain of preparing the adaptability capacity of business. BPM forms a segment of broader domain of infrastructure management; while infrastructure management being an area that accounts for administrative sphere for the maintenance and optimization of an organization within its equipments and operations (Ko, Lee, & Lee, 2009). Value integration in the business systems with BPM is also among segments designed to systemically interlink all phases, primary as well as secondary, in steps towards driving the final product or service (McKinsey & Company, 2012). BPM are integrated in business in both aspect; vertically as well as horizontally where former refers to solution template available and can readily be integrated in respective business processes while latter form of BPM is concerned with initial phases of design as well as development of business process (Van Der Aalst, Ter Hofstede, & Weske, 2003). Services facilitated by the business process management are required to address five areas as follows (Van Der Aalst, Ter Hofstede, & Weske, 2003): The component of BPM serving discovery and scoping of the process and project respectively. BPM full service provision also includes Process modelling and design Business rules engine constitutes an important component of BPM. BPM requires designing and developing workflow engine for the business system. The capacity to simulate and test also forms an important component of the BPM. Hence, BPM to be full service provider to the business system requires facilitating above mentioned services; hence, ensuring the flawless business process to achieve competitive advantage. Continuous development in BPM has been ongoing. Most recently technological gurus are intended to launch bpmNext in 2013 offering extensive range of solutions for innovative expansions in businesses with infiltration of big data and new generation expansions (BPM Next, 2013). In contrast to traditional approach where all efforts were attempted in the internal processes of businesses requiring firm’s department to adapt internally to an extra inch. With internet integration options for business has increased immensely beyond internal matters. The increase in options moved ahead from backward to forward components of entire value chain of business. E-business facilitating and leveraging internet connectivity benefits has reduced the level of activities across the business to considerable extend. It has therefore, enhanced cost saving and increased profits to business. Business models integrating internet perspective has moved to extend that certain business does not have physical existence in all and entire value chain of business processes has been developed with virtual connectivity. For instance, Ford has developed AutoXchange for meeting all suppliers online. An online market enables all suppliers to be online and business process has integrated with greater competitive, transparent and accountable business on common market place (Laudon, and Laudon, 2010). Various business models such as Store Front business models, Auction business Model, Portal Business model has been develop. Further, opening up of avenues from interconnectivity has given rise to the business model named as Name Urself e-business model (Hepp, Leymann, Domingue, Wahler, & Fensel, 2005). Examples of such models include businesses serving customers through website, providing catalogue, taking orders and payments through internet only while finally only delivering product to customers door step. Further, more agile e-business model are from auctions sites such as e-bay that provide platform to the buyers and sellers to conduct transaction. Hence, business models have taken edges on interconnected connectivity with suppliers as well as customers. Furthermore, innovative business models are being implemented, more importantly, for gaining low cost access to vast range of potential customers. Further, the recent wave of the social media also added wave of increased dimension for business processes management in order to add value the business model centrally as well as e-business models. Hence, constantly changing dynamics of business itself and external business market has moved business to develop business process management with extended information technology. SEMANTIC BUSINESS PROCESS MANAGEMENT AND E-BUSINESS Business Process Management has been constantly adding value to the business. For instance, from initial step of providing customers notes about the company’s product and services to the customers through web to the level of conducting entire business virtually. Furthermore, the recent wave of customers’ engagement with firms through social media has increased the role of refined information for the business. Such information needs constantly increases the role of semantic technology in the business. Semantic technology integration in the business process management facilitates business with efficiency in the business operations. The core idea behind the Semantic Business process management is to develop technology that has Semantic Web Services frameworks along with ontology infrastructure (Dang, Hedayati, Hampel, & Toklu, 2008). The new technology develops linkages between BPM methodologies and tools for achieving the required objective (Hepp, & Roman, 2007). Therefore, combining the business and system perspective of the SBPM using anthologies as presented below: (Hepp, & Roman, 2007) Though significant details of the business process management of the enterprise is already integrated in the technological segment of the enterprise; however, it required significant human support for exploring certain set of data as well as manipulating the process space (Hepp, & Roman, 2007). Therefore, integration of semantic technology in the business process enabled business improved level of bi-directional i.e. from enterprise perspective as well as system perspective to collect data (Hepp, & Roman, 2007). For instance, intelligent information provision reduces the cost of labour for business. It also reduces the cycle time of moving product or service from suppliers end to the customers and so on and so forth. Further, Semantic technology integrated in the business processes also increases the effectiveness of the business processes. Such as tracked down of the kind of product customer is searching increases business capacity to provide respective suitable solutions to customers. Hence, reduces chances of customer switch to competitors offering. Further back end services are also improved with application of such information to business. Hence, such competitive service increases the customer preferences of the firm for providing enhanced services than competitor; thereby developing competitive edge over competitors. The given below chart provides the increased benefit that integration of semantic technology will be offering to business: (Davis, 2005) Semantics technology across the entire business functions enables business process to reap benefit across the board. For instance, in Enterprise Resource Planning of the business process semantic technology provides insight for the decision such as decision leveraging insight from the ontology driven information system or facilitation of semantic interpolation etc. Moreover, with the help of integration of semantic structure in e-business and social media links of the business, business can develop greater insight about the data/ product or service search of the customers and hence facilitating business and customers with greater efficiencies and profitability along with competitive edge with respect to service provision with competitors. Therefore, sample draw of benefits that business can reap from the semantic technology has been provided below with reference to business, support, customer, supplier, design and production (Davis, 2005): (Davis, 2005) Business systems with semantic ontology ensure that data physically remains on its source planes; however, it is logically connected among the processes and different kind of information. Sample flow semantic ontology has been presented below: (Davis, 2005) In the above diagram the pink colour nodes refers to the mechanism to be followed and has been discussed below: Node Entitled (A) is entities of business concept such as CRM in the given case. These entities are connected or mapped to single or multiple systems at back end. Node entitled B can be defined as processes. Such nodes also direct workflow using entities for input, output and other service sources. Node with title C is events of semantic ontology that are events that capture exceptions. These and other such events in the semantic ontology in business process management provide rule initiator push. D node is resultant rules from node C (Events triggering rules). Rules are semantic definition for the integration of the various workflows. These rules also define the condition and respective necessary associations to be followed as part of rules. Final node E is relationships that connect entire concepts to each other. Core of ontology is based on the relationships that develop some linkage between concepts. However, these concepts does not necessary require to be connected explicitly and hence the connection can be implicit as well. Business enterprise with semantic ontology hence, leads to business process management with connection developed information technology, lifecycle as well as social dimensions as below: (Davis, 2005) The above dimensions integration in business process management developed for NASA is also applicable for the all business models whether it is combination of bricks and mortar enterprise or e-business model in all. Moreover, e-business model can benefit to greater extend from semantic ontology solution integration to business process management as it depends increasingly on the systems of systems (Davis, 2005). APPLICATION OF THEORY SEMANTIC TECHNOLOGY INTEGRATION IN BUSINESS PROCESS MANAGEMENT AND E-BUSINESS OF CITI BANK Technological integration in the banking industry has made technology part and parcel of banking systems in entire value chain of the banking (Widjana, and Rachmat, 2011). Banking industry has been knitting the business process employing technology so that facilitates more convenient services to the customers (Perumal, and Shanmugam, 2010). Further, e-business model of banks in managed to eliminate to great extend the geographical boundaries for customer and most of the services are facilitated to customers on anywhere and everywhere basis with only condition of internet connectivity available. For instance, Banking industry has been offering Balance Transfer Facility to customer online since long (Hepp, & Roman, 2007). Citibank NA incorporated in New York has been a renowned bank with history of more than 100 years of service to customers since incorporated in 1812. Citibank had been among the leaders in technological infiltration to its processes. For instance, Citibank offered Citi Commercial Card enabling Asian customers to range of products and services with increased customization with language and currency to perform day to day operation of the business. Citibank by year 2007 remained only bank to offer such product (Citi case). Business processes of Citi Bank have been constantly evolved with technological advancement such as offering complete solution to its business clients with account receivable, account payable solution. Further, Citi in 2007 invested US $ 10 billion for information technology structure over three years time to revamp its business online structure. CitiDirect forms e-business model of Citibank enabling customers to undertake wide range of financial services in addition to banking service. Business process management for constantly reducing the exploitable gaps between business process management are developing collaborative relationship with technological leaders such as SAP, Oracle etc. Further, it has developed FinancialSettlementMatrix.com in collaboration with four firms in the domain. The e-business model of Citibank has been creating value in business process with factor defined in the study of Amit and Christoph (2001). For instance, Citibank’s Treasury Vision (refined version of Citi Direct) facilitated additional services to clients with respect to Enterprise Resource Planning. Further, e-business model of Citi include complementarities to customers with range of services that complement each other and hence add value to the stakeholders. E-business model of Citibank also infiltrates novelties to improve services to customers across the board. Hence, all these complementarities are so designed that lock in customers with Citibank services. Hence, the entire e-business model of Citibank is serving as competitive advantage against competitors with number of satisfied customers. Amit and Christoph (2001). The current stage of Citibank, where it has gained significant acknowledgement for being technologically abreast, has been resultant from fast paced technological adoption. Therefore, as overall history Citi has been incorporating the benefit of technology to its customers; therefore, adoption of semantic technology to improve products and services to customers is no exception. Citibank has developed business relationship with Inbenta to for adding value to its business in all as well as e-business. Inbenta is technological firm providing solutions to large number of companies with international presence for business and customer related solutions. Citibank has taken services from the Inbenta related to semantic technologies for generating information related to core customer search. Fernando Sampascua, Remote Channels Director at Citibank Spain, stated that semantic technological integration supported by Inbenta enabled Citibank in developing 411 sets of critical information about customer wants. Citibank employing such services have managed to develop FAQ section that provides most of the information that customers mostly search about and in relation to services of Citibank. SEMANTIC WEB SERVICE IN BUSINESS PROCESS MANAGEMENT AND E-BUSINESS OF AMAZON AND E-BAY Amazon and e-Bay have been providing the customers with different products and goods for online purchasing and shopping. This business model of e-commerce requires the use of effective and efficient back end technology in order to manage the all related processes and activities in effective and efficient manner. Both companies have taken advantage from the semantic web service in order to provide the customers with high quality services. The semantic web service results in defining the semantic of different information and services; in order to make sure that the web is able to understand and comprehend the requests and requirements of the people and hence fulfil them in effective and efficient manner (Heidari, 2009). According to Pietro et al (2008) the semantic web service selection at the basic process level allows the organisation to make sure that the requirements and requests of the customers are fulfilled in effective and efficient manner. The wide acceptance of explaining and describing the web services at the process level can be gauged by the wide spread of the BPEL, standard language used for describing and explaining the business processes. The same is used by Amazon and e-bay as shown in the images below: (Pietro et al., 2008) (Pietro et al., 2008) Hence, both Amazon and e-bay are being able to manage the overall e-commerce business model in effective and efficient manner with the help of the semantic web service technology and ontology. CONCLUSION Technological advancement has taken driving in business requisites to adapt to the changing business environment. Entire business processes are being increasingly innovated with technological advancement integration in order to gain competitive advantage over competitors. Business process management as well as e-business model being utility for every business is an ample example to assert. Business process management being technology integrated solution to business has been now added value with semantic technologies for improving the bi-directional flow of information. Information flow, from system perspective as well as enterprise perspective, increases option for the business to offer more concrete offering to customers along with strengthened integration across the entire supply chain. Citibank as a case has been discussed for integration of semantic technology across the business process for the reason Citibank has always been among the forefront adopters of technology. Following its trend Citibank has adopted semantic technology in business relationship with Inbenta. Citibank has gained insight and developed increasingly concrete customer centric FAQ’s because of leveraging insight from semantic technological infiltration (in support from Inbenta) in business process management. Though level of integration has been ample; however, owing to growing importance of semantic technology to business and Citibank’s perspective of being among leaders to adopt it; are hence advised to integrate the semantic ontology on broader enterprise level value chain. Such early adoption in broader scale is centric to its trend as well business perspective to achieve the competitive advantage against competitors. References Becker, J., Pfeiffer, D., Falk, T., & Rackers, M. (2010). Semantic business process management. In Handbook on Business Process Management. London: Springer Berlin Heidelberg. BPM Next. (2013). Defining the Next Generation of Process Innovation. Available from http://www.bpmnext.com/bpmNEXT_2013.pdf [Accessed 16 April 2013] Dang, J., Hedayati, A., Hampel, K., & Toklu, C. (2008). An ontological knowledge framework for adaptive medical workflow. Journal of biomedical informatics, vol. 41, no. 5, pp. 829-836. Davis, M. (2005). 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