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(Note that we have updated the paper to the accepted version on 23 Jan 2018) Blockchain technology offers a sizable promise to rethink the way inter-organizational business processes are managed because of its potential to realize execution with- out a central party serving as a single point of trust (and failure). To stimulate research on this promise and the limits thereof, in this paper we outline the challenges and opportunities of blockchain for Business Process Management (BPM). We structure our commentary alongside two established frameworks, namely the six BPM core capabilities and the BPM lifecycle, and detail seven research directions for investigating the application of blockchain technology to BPM.
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Blockchains for Business Process Management - Challenges and Opportunities 0:1
Blockchains for Business Process Management - Challenges
and Opportunities
JAN MENDLING, Wirtschaftsuniversität Wien, Austria
INGO WEBER, Data61, CSIRO, Australia
WIL VAN DER AALST, Eindhoven University of Technology, The Netherlands
JAN VOM BROCKE, University of Liechtenstein, Liechtenstein
CRISTINA CABANILLAS, Wirtschaftsuniversität Wien, Austria
FLORIAN DANIEL, Politecnico di Milano, Italy
SØREN DEBOIS, IT University of Copenhagen, Denmark
CLAUDIO DI CICCIO, Wirtschaftsuniversität Wien, Austria
MARLON DUMAS, University of Tartu, Estonia
AVIGDOR GAL, Technion - Israel Institute of Technology, Israel
LUCIANO GARCÍA-BAÑUELOS, University of Tartu, Estonia
RICHARD HULL, IBM Research, United States of America
MARCELLO LA ROSA, Queensland University of Technology, Australia
HENRIK LEOPOLD, Vrije Universiteit, The Netherlands
FRANK LEYMANN, IAAS, Universität Stuttgart, Germany
JAN RECKER, Queensland University of Technology, Australia
MANFRED REICHERT, Ulm University, Germany
HAJO A. REIJERS, Vrije Universiteit, The Netherlands
STEFANIE RINDERLE-MA, University of Vienna, Austria
ANDREAS SOLTI, Wirtschaftsuniversität Wien, Austria
MICHAEL ROSEMANN, Queensland University of Technology, Australia
MUNINDAR P. SINGH, North Carolina State University, United States of America
TIJS SLAATS, University of Copenhagen, Denmark
MARK STAPLES, Data61, CSIRO, Australia
BARBARA WEBER, Technical University of Denmark, Denmark
MATTHIAS WEIDLICH, Humboldt-Universität zu Berlin, Germany
MATHIAS WESKE, Hasso-Plattner-Institute, Universität Potsdam, Germany
XIWEI XU, Data61, CSIRO, Australia
LIMING ZHU, Data61, CSIRO, Australia
Authors’ addresses: Jan Mendling, Wirtschaftsuniversität Wien, Vienna, Austria,; Ingo Weber,
Data61, CSIRO, Sydney, Australia,; Wil van der Aalst, Eindhoven University of Technology,
Eindhoven, The Netherlands,; Jan vom Brocke, University of Liechtenstein, Vaduz, Liechtenstein, jan.; Cristina Cabanillas, Wirtschaftsuniversität Wien, Vienna, Austria,; Florian
Daniel, Politecnico di Milano, Milan, Italy, ; Søren Debois, IT University of Copenhagen, Copenhagen,
Denmark,; Claudio Di Ciccio, Wirtschaftsuniversität Wien, Vienna, Austria,;
Marlon Dumas, University of Tartu, Tartu, Estonia,; Schahram Dustdar, TU Wien, Vienna, Austria,; Avigdor Gal, Technion - Israel Institute of Technology, Haifa, Israel,; Luciano
García-Bañuelos, University of Tartu, Tartu, Estonia,; Guido Governatori, Data61, CSIRO, Brisbane,
Australia,; Richard Hull, IBM Research, Yorktown Heights, United States of America,
Permission to make digital or hard copies of all or part of this work for personal or classroom use is granted without fee
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ACM Transactions on Management Information Systems, Vol. 9, No. 0, Article 0. Publication date: 2018.
0:2 Mendling, J. et al
Blockchain technology oers a sizable promise to rethink the way inter-organizational business processes
are managed because of its potential to realize execution without a central party serving as a single point of
trust (and failure). To stimulate research on this promise and the limits thereof, in this paper we outline the
challenges and opportunities of blockchain for Business Process Management (BPM). We rst reect how
blockchains could be used in the context of the established BPM lifecycle and second how they might become
relevant beyond. We conclude our discourse with a summary of seven research directions for investigating
the application of blockchain technology in the context of BPM.
CCS Concepts:
Information systems Enterprise information systems
;Middleware business process
Applied computing Business process management
Software and its engineering
Software development process management
Computing methodologies
Modeling and simulation;
Additional Key Words and Phrases: Blockchain, Business Process Management, Research Challenges
ACM Reference Format:
Jan Mendling, Ingo Weber, Wil van der Aalst, Jan vom Brocke, Cristina Cabanillas, Florian Daniel, Søren
Debois, Claudio Di Ciccio, Marlon Dumas, Schahram Dustdar, Avigdor Gal, Luciano García-Bañuelos, Guido
Governatori, Richard Hull, Marcello La Rosa, Henrik Leopold, Frank Leymann, Jan Recker, Manfred Reichert,
Hajo A. Reijers, Stefanie Rinderle-Ma, Andreas Solti, Michael Rosemann, Stefan Schulte, Munindar P. Singh,
Tijs Slaats, Mark Staples, Barbara Weber, Matthias Weidlich, Mathias Weske, Xiwei Xu, and Liming Zhu. 2018.
Blockchains for Business Process Management - Challenges and Opportunities. ACM Trans. Manag. Inform.
Syst. 9, 0, Article 0 ( 2018), 17 pages.
Business process management (BPM) is concerned with the design, execution, monitoring, and
improvement of business processes. Systems that support the enactment and execution of processes
have extensively been used by companies to streamline and automate intra-organizational processes.
Yet, for inter-organizational processes, challenges of joint design and a lack of mutual trust have
hampered a broader uptake.
Emerging blockchain technology has the potential to drastically change the environment in which
inter-organizational processes are able to operate. Blockchains oer a way to execute processes in
a trustworthy manner even in a network without any mutual trust between nodes. Key aspects are
specic algorithms that lead to consensus among the nodes and market mechanisms that motivate; Marcello La Rosa, Queensland University of Technology, Brisbane, Australia,;
Henrik Leopold, Vrije Universiteit, Amsterdam, The Netherlands,; Frank Leymann, IAAS, Universität
Stuttgart, Stuttgart, Germany,; Jan Recker, Queensland University of Technology,
Brisbane, Australia,; Manfred Reichert, Ulm University, Ulm, Germany,;
Hajo A. Reijers, Vrije Universiteit, Amsterdam, The Netherlands,; Stefanie Rinderle-Ma, University of
Vienna, Vienna, Austria,; Andreas Solti, Wirtschaftsuniversität Wien, Vienna, Austria,; Michael Rosemann, Queensland University of Technology, Brisbane, Australia, m.rosemann@; Stefan Schulte, TU Wien, Vienna, Austria,; Munindar P. Singh, North Carolina State
University, Raleigh, United States of America,; Tijs Slaats, University of Copenhagen, Copenhagen,
Denmark,; Mark Staples, Data61, CSIRO, Sydney, Australia,; Barbara Weber,
Technical University of Denmark, Lyngby, Denmark,; Matthias Weidlich, Humboldt-Universität zu Berlin,
Berlin, Germany,; Mathias Weske, Hasso-Plattner-Institute, Universität Potsdam, Potsdam,
Germany,; Xiwei Xu, Data61, CSIRO, Sydney, Australia,; Liming Zhu,
Data61, CSIRO, Sydney, Australia,
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ACM Transactions on Management Information Systems, Vol. 9, No. 0, Article 0. Publication date: 2018.
Blockchains for Business Process Management - Challenges and Opportunities 0:3
the nodes to progress the network. Through these capabilities, this technology has the potential to
shift the discourse in BPM research about how systems might enable the enactment, execution,
monitoring or improvement of business process within or across business networks.
In this paper, we describe what we believe are the main new challenges and opportunities
of blockchain technology for BPM. This leads to directions for research activities to investigate
both challenges and opportunities. Section 2provides a background on fundamental concepts
of blockchain technology and an illustrative example of how this technology applies to business
processes. Section 3focuses on the impact of blockchains on the traditional BPM lifecycle phases [Du-
mas et al
2018]. Section 4goes beyond it and asks which impact blockchains might have on core
capability areas of BPM [Rosemann and vom Brocke 2015]. Section 5summarizes this discussion
by emphasizing seven future research directions.
This section summarizes the essential aspects of blockchain technology and discusses initial research
eorts at the intersection of BPM and blockchains.
2.1 Blockchain Technology
In its original form, Blockchain is a distributed database technology that builds on a tamper-proof
list of timestamped transaction records. Among others, it is used for cryptocurrencies such as
Bitcoin [Nakamoto 2008]. Its innovative power stems from allowing parties to transact with others
they do not trust over a computer network in which nobody is trusted. This is enabled by a
combination of peer-to-peer networks, consensus-making, cryptography, and market mechanisms.
Blockchain derives its name from the fact that its essential data structure is a chained list of blocks.
This chain of blocks is distributed over a peer-to-peer network, in which every node maintains
the latest version of it. Blocks can contain information about transactions. In this way, we can for
instance know that a buyer has ordered 200 items of a particular type of material from a vendor
at a specic time. When a new block is added to the blockchain, it is signed using cryptographic
methods. In this way, it can be checked if its content and its signature match. For example, if we
take the content
"Buyer orders 200 items from vendor" and apply a specic hash function
we get a unique result
. Every block is associated with a hash generated from its content and
the hash value of the previous block in the list. Hash values thus uniquely represent not only the
transactions within blocks but also the ordering of every block. This mechanism is at the basis of
the chain. In case somebody would try to alter a transaction, this would change the hash value
of its block, and therefore break the chain. Since every node can create blocks in a peer-to-peer
network, there has to be consensus on the new version of the blockchain including a new block.
This is achieved with consensus algorithms that are based on concepts like proof-of-work or proof-
of-stake [Bentov et al
2016], and more recently proof-of-elapsed-time
. In proof-of-work, miners
guess a value for a specic eld, to fulll the condition that
must be smaller than a threshold
(which is dynamically adjusted by the network based on a predened protocol). In proof-of-stake,
miner selection considers the size of their stake , i.e., amount of cryptocurrency held by them. The
rationale is that a high stake is a strong motivation for not cheating: if the miners cheat (and this is
detected), the respective cryptocurrency will be devalued. The network protocols and dynamic
adjustment of thresholds are designed to avoid network overload. In summary, these foundational
blockchain concepts support two important notions that are also essential for business processes:
the blockchain as a (tamper-proof) data structure captures the history and the current state of the
network and transactions move the system to a new state.
1Intel: Proof of elapsed time (PoET). Available from
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0:4 Mendling, J. et al
Blockchain oers an additional concept that is important for business processes, called smart
contracts [Szabo 1997]. Consider again the example of the buyer ordering 200 items from the vendor.
Business processes are subject to rules on how to respond to specic conditions. If, for instance,
the vendor does not deliver within two weeks, the buyer might be entitled to receive a penalty
payment. Such business rules can be expressed by smart contracts. For instance, the Ethereum
blockchain supports a Turing-complete programming language for smart contracts
. The code in
these languages is deterministic and relies on a closed-world assumption: only information that is
stored on the blockchain is available in the runtime environment. Smart contract code is deployed
with a specic type of transaction. As with any other blockchain transaction, the deployment of
smart contract code to the blockchain is immutable. Once deployed, smart contracts oer a way
to execute code directly on the blockchain network, like the conditional transfer of money in our
example if a certain condition is fullled.
By using blockchain technology, untrusted parties can establish trust in the truthful execution
of the code. Smart contracts can be used to implement business collaborations in general and
inter-organizational business processes in particular. The potential of blockchain-based distributed
ledgers to enable collaboration in open environments has been successfully tested in diverse elds
ranging from diamonds trading to securities settlement [Walport 2016].
At this stage, it has to be noted that blockchain technology still faces numerous general tech-
nological challenges. A mapping study by [Yli-Huumo et al
2016] found that a majority of these
challenges have not been addressed by the research community, albeit we note that blockchain
developer communities actively discuss some of these challenges and suggest a myriad of potential
. Some of them can be addressed by using private or consortium blockchain instead
of a fully open network [Mougayar 2016]. In general, the technological challenges include the
following [Swan 2015].
in the Ethereum blockchain is limited to approx. 15 transaction inclusions per
second (tps) currently. In comparison, transaction volumes for the VISA payment network
are 2,000 tps on average, with a tested capacity of up to 50,000 tps. However, the experimental
Red Belly Blockchain which particularly caters to private or consortium blockchains has
achieved more than 400,000 tps in a lab test4.
is also an issue. Transaction inclusion in the absence of network congestion takes
a certain amount of time. In addition, a number of conrmation blocks are typically rec-
ommended to ensure the transaction does not get removed due to accidental or malicious
forking. That means that transactions can be seen as committed after 60 minutes on average
in Bitcoin, or 3 to 10 minutes in Ethereum. Even with improvements of techniques like the
lightning network or side chains spawned o from the main chain, blockchains are unlikely
to achieve latencies as low as centrally-controlled systems.
Size and bandwidth
limitations are variations of the throughput issue: if the transaction
volume of VISA were to be processed by Bitcoin, the full replication of the entire blockchain
data structure would pose massive problems. [Yli-Huumo et al
2016] quote 214 PB per year,
thus posing a challenge in data storage and bandwidth. Private and consortium chains and
concepts like the lightning network or side chains all aim to address these challenges. In this
context it is worth noting that most everyday users can use wallets instead, which require
only small amounts of storage.
3 outstanding-challenges-blockchain-technology-2017/
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Blockchains for Business Process Management - Challenges and Opportunities 0:5
is limited at this point, in terms of both developer support (lack of adequate tooling)
and end-user support (hard to use and understand). Recent advances on developer support
include eorts by some of the authors towards model-driven development of blockchain
applications [García-Bañuelos et al. 2017;Tran et al. 2017;Weber et al. 2016].
will always pose a challenge on an open network like a public blockchain. Secu-
rity is often discussed in terms of the CIA properties [Dhillon and Backhouse 2000]. First,
condentiality is per se low in a distributed system that replicates all data over its network,
but can be addressed by targeted encryption [Kosba et al
2016]. Second, integrity is a strong
suit of blockchains, albeit challenges do exist [Eyal and Sirer 2014;Gervais et al
2016]. Third,
availability can be considered high in terms of reads from blockchain due to the wide replica-
tion, but is less favorable in terms of write availability [Weber et al
2017]. New attack vectors
exist around forking, e.g., through network segregation [Natoli and Gramoli 2017]. These are
particularly relevant in private or consortium blockchains.
Wasted resources,
particularly electricity, are due to the consensus mechanism, where
miners constantly compete in a race to mine the next block for a high reward. In an empirical
analysis, [Weber et al
2017] found that about 10% of announced new blocks on the Ethereum
network were uncles (forks of length 1). This can be seen as wasteful, but is just a small
indication of the vast duplication of eort in proof-of-work mechanisms. Longer forks (at most
of length 3) were extremely rare, so accidental forking seems unlikely in a well-connected
network like the Internet – but could occur if larger nations were cut o temporarily or
even permanently. Alternatives to the proof-of-work, like proof-of-stake [Bentov et al
have been discussed for a while and would be much more ecient. At the time of writing,
they remain an unproven but highly interesting alternative. Proof-of-work makes very low
assumptions in trusting other participants, which is well suited for an open network managing
digital assets. Designing more ecient protocols without relaxing these assumptions has
proven a challenge.
Hard forks
are changes to the protocol of a blockchain which enable transactions or blocks
which were previously considered invalid [Decker and Wattenhofer 2013]. They essentially
change the rules of the game and therefore require adoption by a vast majority of the miners to
be eective [Bonneau et al
2015]. While hard forks can be controversial in public blockchains,
as demonstrated by the split of the Ethereum blockchain into a hard forked main chain and
Ethereum Classic (ETC), this is less of an issue for private and consortium blockchains where
such a consensus is more easily found.
Many of these general technological challenges of blockchains are currently the focus of the
emerging body of research. As noted, our main interest is in the potential of blockchain technology
to enable a shift in BPM research. Our belief is vested both in the novel technological properties
discussed above and in the already available attempts of using blockchain technology in the
denition and implementation of fundamentally novel business processes. We review these attempts
in the following.
2.2 Business Processes and Blockchain Technology
We are not the rst to identify the application potential of blockchain technology to business
processes. In fact, several blockchains are currently adopted in various domains to facilitate the
operation of new business processes. For example, [Nofer et al
2017] list applications in the nancial
sector including cryptocurrency transactions, securities trading and settlement, and insurances as
well as non-nancial applications such as notary services, music distribution, and various services
like proof of existence, authenticity, or storage. Other works describe application scenarios involving
ACM Transactions on Management Information Systems, Vol. 9, No. 0, Article 0. Publication date: 2018.
0:6 Mendling, J. et al
order receive
request provide
details provide
Produce Prepare
Special Carrier
order request
details receive
details receive
order receive
start of
order deliver
Fig. 1. Supply Chain Scenario from [Weber et al. 2016]
blockchain technology in logistics and supply chain processes, for instance in the agricultural
sector [Staples et al. 2017].
A proposal to support inter-organizational processes through blockchain technology is described
by [Weber et al
2016]: large parts of the control ow and business logic of inter-organizational
business processes can be compiled from process models into smart contracts which ensure the
joint process is correctly executed. So-called trigger components allow connecting these inter-
organizational process implementations to Web services and internal process implementations.
These triggers serve as a bridge between the blockchain and enterprise applications. The cryptocur-
rency concept enables the optional implementation of conditional payment and built-in escrow
management at dened points within the process, where this is desired and feasible.
To illustrate these capabilities, Figure 1shows a simplied supply chain scenario, where a bulk
buyer orders goods from a manufacturer. The manufacturer, in turn, orders supplies through a
middleman, which are sent from the supplier to the manufacturer via a special carrier. Withoutglobal
monitoring each participant has restricted visibility of the overall progress. This may very well be a
basis for misunderstandings and shifting blame in cases of conict. Model-driven approaches such
as proposed by [García-Bañuelos et al
2017;Weber et al
2016] produce code of smart contracts
that implement the process (see Figure 2).
If executed using smart contracts on a blockchain, typical barriers complicating the deployment of
inter-organizational processes can be removed. (i) The blockchain can serve as an immutable public
ledger, so that participants can review a trustworthy history of messages to pinpoint the source
of an error. This means that all state-changing messages have to be recorded in the blockchain.
(ii) Smart contracts can oer independent process monitoring from a global viewpoint, such that
only expected messages are accepted, and only if they are sent from the player registered for the
respective role in the process instance. (iii) Encryption can ensure that only the data that must be
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Blockchains for Business Process Management - Challenges and Opportunities 0:7
Fig. 2. Smart contract snippet illustrating how code is generated from a BPMN model. It shows the im-
plementation of function
from the above process model. This function is to be executed by
the Manufacturer, which is checked in line 6. Subsequently, we check if the function is activated in line 7.
If so, any custom task logic is executed, and the activation of tasks is updated in line 9. For more details,
see [García-Bañuelos et al. 2017].
visible is public, while the remaining data is only readable for the process participants that require
These capabilities demonstrate how blockchains can help organizations to implement and execute
business processes across organizational boundaries even if they cannot agree on a trusted third
party. This is a fundamental advance, because the core aspects of this technology enable support of
enterprise collaborations going far beyond asset management, including the management of entire
supply chains, tracking food from source to consumption to increase safety, or sharing personal
health records in privacy-ensuring ways amongst medical service providers.
The technical realization of this advance is still nascent at this stage, although some early eorts
can be found in the literature. For example, smart contracts that enforce a process execution in
a trustworthy way can be generated from BPMN process models [Weber et al
2016] and from
domain-specic languages [Frantz and Nowostawski 2016]. Further cost optimizations are proposed
by [García-Bañuelos et al
2017]. Figure 2shows a code excerpt that was generated by this approach.
In a closely related work, [Hull et al
2016] emphasize the anity of artifact-centric process
specication [Cohn and Hull 2009;Marin et al. 2012] for blockchain execution.
Even at this stage, research on the benets and potentials of blockchain technology is mixed
with studies that highlight or examine issues and challenges. For example, [Norta 2015,2016]
discusses ways to ensure secure negotiation and creation of smart contracts for Decentralized
Autonomous Organizations (DAOs), among others in order to avoid attacks like the DAO hack
during which approx. US$ 60M were stolen. This in turn was remediated by a hard fork of the
Ethereum blockchain, which was controversial among the respective mining node operators and
resulted in a part of the public Ethereum network splintering o into the Ethereum Classic (ETC)
network. This split, in turn, caused major issues for the network in the medium term, allowing
among others replay attacks where transactions from Ethereum can be replayed on ETC. A formal
analysis of smart contract participants using game theory and formal methods is conducted by [Bigi
et al
2015]. As pointed out by [Norta 2016], the assumption of perfect rationality underlying the
game-theoretic analysis is unlikely to hold for human participants.
These examples show that blockchain technology and its application to BPM are at an impor-
tant crossroads: technical realization issues blend with promising application scenarios; early
implementations mix with unanticipated challenges. It is timely, therefore, to discuss in broad and
encompassing ways where open questions lie that the scholarly community should be interested in
addressing. We do so in the two sections that follow.
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0:8 Mendling, J. et al
In this section, we discuss blockchain in relation to the traditional BPM lifecycle [Dumas et al
2018] including the following phases: identication, discovery, analysis, redesign, implementation,
execution, monitoring, and adaptation. Using the traditional BPM lifecycle as a framework of
reference allows us to discuss many incremental changes that blockchains might provide.
3.1 Identification
Process identication is concerned with the high-level description and evaluation of a company
from a process-oriented perspective, thus connecting strategic alignment with process improvement.
Currently, identication is mostly approached from an inward-looking perspective [Dumas et al
2018]. Blockchain technology adds another relevant perspective for evaluating high-level processes
in terms of the implied strengths, weaknesses, opportunities, and threats. For example, how can a
company systematically identify the most suitable processes for blockchains or the most threatened
ones? Research is needed into how this perspective can be integrated into the identication phase.
Because blockchains have anity with the support of inter-organizational processes, process
identication may need to encompass not only the needs of one organization, but broader known
and even unknown partners.
3.2 Discovery
Process discovery refers to the collection of information about the current way a process operates
and its representation as an as-is process model. Currently, methods for process discovery are
largely based on interviews, walkthroughs and documentation analysis, complemented with auto-
mated process discovery techniques over non-encrypted event logs generated by process-aware
information systems [van der Aalst 2016]. Blockchain technology denes new challenges for pro-
cess discovery techniques: the information may be fragmented and encrypted; accounts and keys
can change frequently; and payload data may be stored partly on-chain and partly o-chain. For
example, how can a company discover an overall process from blockchain transactions when these
might not be logically related to a process identier? This fragmentation might require a repeated
alignment of information from all relevant parties operating on the blockchain. Work on matching
could represent a promising starting point to solve this problem [Cayoglu et al
2014;Euzenat and
Shvaiko 2013;Gal 2011]. There is both the risk and opportunity of conducting process mining on
blockchain data. An opportunity could involve establishing trust in how a process or a prospective
business partner operates, while a risk is that other parties might be able to understand operational
characteristics from blockchain transactions. There are also opportunities for reverse engineering
business processes, among others, from smart contracts.
3.3 Analysis
Process analysis refers to obtaining insights into issues relating to the way a business process
currently operates. Currently, the analysis of processes mostly builds on data that is available inside
of organizations or from perceptions shared by internal and external process stakeholders [Dumas
et al
2018]. Records of processes executed on the blockchain yield valuable information that can
help to assess the case load, durations, frequencies of paths, parties involved, and correlations
between unencrypted data items. These pieces of information can be used to discover processes,
detect deviations, and conduct root cause analysis [van der Aalst 2016], ranging from small groups
of companies to an entire industry at large. The question is which eort is required to bring the
available blockchain transaction data into a format that permits such analysis.
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Blockchains for Business Process Management - Challenges and Opportunities 0:9
3.4 Redesign
Process redesign deals with the systematic improvement of a process. Currently, approaches like
redesign heuristics build on the assumption that there are recurring patterns of how a process can
be improved [Vanwersch et al
2016]. Blockchain technology oers novel ways of improving specic
business processes or resolving specic problems. For instance, instead of involving a trustee to
release a payment if an agreed condition is met, a buyer and a seller of a house might agree on a
smart contract instead. The question is where blockchains can be applied for optimizing existing
interactions and where new interaction patterns without a trusted central party can be established,
potentially drawing on insights from related research on Web service interaction [Barros et al
2005]. A promising direction for developing blockchain-appropriate abstractions and heuristics may
come from data-aware workows [Marin et al. 2012] and BPMN choreography diagrams [Decker
and Weske 2011]. Both techniques combine two primary ingredients of blockchain, namely data
and process, in a holistic manner that is well-suited for top-down design of cross-organizational
processes. It might also be benecial to formulate blockchain-specic redesign heuristics that
could mimic how Incoterms [Ramberg 2011] dene standardized interactions in international trade.
Specic challenges for redesign include the joint engineering of blockchain processes between all
parties involved, an ongoing problem for choreography design.
3.5 Implementation
Process implementation refers to the procedure of transforming a to-be model into software
components executing the business process. Currently, business processes are often implemented
using process-aware information systems or business process management systems inside single
organizations. In this context, the question is how can the involved parties make sure that the
implementation that they deploy on the blockchain supports their process as desired. Some of the
challenges regarding the transformation of a process model to blockchain artifacts are discussed
by [Weber et al
2016]. Several ideas from earlier work on choreography can be reused in this new
setting [Chopra et al
2014;Decker and Weske 2011;Mendling and Hafner 2008;Telang and Singh
2012;van der Aalst and Weske 2001;Weber et al
2008]. It has to be noted that choreographies
have not been adopted by industry to a large extent yet. Despite this, they are especially helpful in
inter-organizational settings, where it is not possible to control and monitor a complete process in
a centralized fashion because of organizational borders [Breu et al
2013]. To verify that contracts
between choreography stakeholders have been fullled, a trust basis, which is not under control of
a particular party, needs to be established. Blockchains may serve to establish this kind of trust
between stakeholders.
An important engineering challenge on the implementation level is the identication and def-
inition of abstractions for the design of blockchain-based business process execution. Libraries
and operations for engines are required, accompanied by modeling primitives and language exten-
sions of BPMN. Software patterns and anti-patterns will be of good help to engineers designing
blockchain-based processes. There is also a need for new approaches for quality assurance, cor-
rectness, and verication, as well as for new corresponding correctness criteria. These can build
on existing notions of compliance [van der Aalst et al
2008], reliability [Subramanian et al
quality of services [Zeng et al
2004] or data-aware workow verication [Calvanese et al
but will have to go further in terms of consistency and consideration of potential payments. Fur-
thermore, dynamic partner binding and rebinding is a challenge that requires attention. Process
participants will have to nd partners, either manually or automatically on dedicated marketplaces
using dedicated look-up services. The property of inhabiting a certain role in a process might itself
be a tradable asset. For example, a supplier might auction o the role of shipper to the highest
ACM Transactions on Management Information Systems, Vol. 9, No. 0, Article 0. Publication date: 2018.
0:10 Mendling, J. et al
bidder as part of the process. Finally, as more and more companies use blockchain, there will be a
proliferation of smart contract templates available for use. Tools for nding templates appropriate
for a given style of collaboration will be essential. All these characteristics emphasize the need for
specic testing and verication approaches.
3.6 Execution
Execution refers to the instantiation of individual cases and their information-technological pro-
cessing. Currently, such execution is facilitated by process-aware information systems or business
process management systems [Dumas et al
2018]. For the actual execution of a process deployed
on a blockchain following the method of [Weber et al
2016], several dierences with the traditional
ways exist. During the execution of an instance, messages between participants need to be passed
as blockchain transactions to the smart contract; resulting messages need to be observed from
the blocks in the blockchain. Both of these can be achieved by integrating blockchain technology
directly with existing enterprise systems or through the use of dedicated integration components,
such as the triggers suggested by [Weber et al
2016]. First prototypes like Caterpillar as a BPMS that
build on blockchains are emerging [López-Pintado et al
2017]. The main challenge here involves
ensuring correctness and security, especially when monetary assets are transferred using this
3.7 Monitoring
Process monitoring refers to collecting events of process executions, displaying them in an under-
standable way, and triggering alerts and escalation in cases where undesired behavior is observed.
Currently, such process execution data is recorded by systems that support process execution [Du-
mas et al
2018]. First, we face issues in terms of data fragmentation and encryption as in the
analysis phase. For example, the data on the blockchain alone will likely not be enough to monitor
the process, but require an integration with local o-chain data. Once such tracing in place, the
global view of the process can be monitored independently by each involved party. This provides a
suitable basis for continuous conformance and compliance checking and monitoring of service-
level agreements. Second, based on monitoring data exchanged via the blockchain, it is possible
to verify if a process instance meets the original process model and the contractual obligations
of all involved process stakeholders. For this, blockchain technology can be exploited to store the
process execution data and handos between process participants. Notably, this is even possible
without the usage of smart contracts, i.e., in a rst-generation blockchain like the one operated by
Bitcoin [Prybila et al. 2017].
3.8 Adaptation and Evolution
Runtime adaptation refers to the concept of changing the process during execution. In traditional
approaches, this can for instance be achieved by allowing participants in a process to change the
model during its execution [Reichert and Weber 2012]. Interacting partners might take a defensive
stance in order to avoid certain types of adaptation. As discussed by [Weber et al
2016], blockchain
can be used to enforce conformance with the model, so that participants can rely on the joint model
being followed. In such a setting, adaptation is by default something to be avoided: if a participant
can change the model, this could be used to gain an unfair advantage over the other participants.
For instance, the rules of retrieving cryptocurrency from an escrow account could be changed or
the terms of payment. In this setting, process adaptation must strictly adhere to dened paths for it,
e.g., any change to a deployed smart contract may require a transaction signed by all participants.
In contrast, the method proposed by [Prybila et al
2017] allows runtime adaptation, but assumes
that relevant participants monitor the execution and react if a change is undesired.
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Blockchains for Business Process Management - Challenges and Opportunities 0:11
If smart contracts enforce the process, there are also problems arising in relation to evolution:
new smart contracts need to be deployed to reect changes to a new version of the process model.
Porting running instances from an old version to a new one would require eective coordina-
tion mechanisms involving all participants. Some challenges for choreographies are summarized
by [Fdhila et al. 2015].
There are also challenges and opportunities for BPM and blockchain technology beyond the classical
BPM lifecycle. We refer to the BPM capability areas [Rosemann and vom Brocke 2015] beyond the
methodological support we reected above, including strategy, governance, information technology,
people, and culture.
4.1 Strategy
Strategic alignment refers to the active management of connections between organizational priori-
ties and business processes [Rosemann and vom Brocke 2015], which aims at facilitating eective
actions to improve business performance. Currently, various approaches to BPM assume that
the corporate strategy is dened rst and business processes are aligned with the respective
strategic imperatives [Dumas et al
2018]. Blockchain technology challenges these approaches
to strategic alignment. For many companies, blockchains dene a potential threat to their core
business processes. For instance, the banking industry could see a major disintermediation based on
blockchain-based payment services [Guo and Liang 2016]. Also lock-in eects [Tassey 2000] might
deteriorate when, for example, the banking service is not the banking network itself anymore, but
only the interface to it. These developments could lead to business processes and business models
being under strong inuence of technological innovations outside of companies.
4.2 Governance
BPM governance refers to appropriate and transparent accountability in terms of roles, responsibili-
ties, and decision processes for dierent BPM-related programs, projects, and operations [Rosemann
and vom Brocke 2015]. Currently, BPM as a management approach builds on the explicit denition
of BPM-related roles and responsibilities with a focus on the internal operations of a company.
Blockchain technology might change governance towards a more externally oriented model of
self-governance based on smart contracts. Research on corporate governance investigates agency
problems and mechanisms to provide eective incentives for intended behavior [Shleifer and Vishny
1997]. Smart contracts can be used to establish new governance models as exemplied by The
Decentralized Autonomous Organization (The DAO)
. It is an important question in how far this
idea of The DAO can be extended towards reducing the agency problem of management discretion
or eventually eliminate the need for management altogether. Furthermore, the revolutionary change
suggested by The DAO for organization shows just how disruptive this technology can be, and
whether similarly radical changes could apply to BPM.
4.3 Information Technology
BPM-related information technology subsumes all systems that support process execution, such
as process-aware information systems and business process management systems. These systems
typically assume central control over the process.
Blockchain technology enables novel ways of process execution, but several challenges in terms
of security and privacy have to be considered. While the visibility of encrypted data on a blockchain
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0:12 Mendling, J. et al
is restricted, it is up to the participants in the process to ensure that these mechanisms are used
according to their condentiality requirements. Some of these requirements are currently being
investigated in the nancial industry
. Further challenges can be expected with the introduction
of the General Data Protection Regulation
. It is also not clear, which new attack scenarios on
blockchain networks might emerge [Hurlburt 2016]. Therefore, guidelines for using private, public,
or consortium-based blockchains are required [Mougayar 2016]. It also has to be decided what
types of smart contract and which cryptocurrency are allowed to be used in a corporate setting.
4.4 People
People in this context refers to all individuals, possibly in dierent roles, who engage with
BPM [Rosemann and vom Brocke 2015]. Currently, these are people who work as process analyst,
process manager, process owner or in other process-related roles. The roles of these individuals are
shaped by skills in the area of management, business analysis and requirements engineering. In this
capability area, the use of blockchain technology requires extensions of their skill sets. New required
skills relate to partner and contract management, software enginering, and cryptography. Also,
people have to be willing to design blockchain-based collaborations within the frame of existing
regulations to enable adoption. This implies that research into blockchain-specic technology
acceptance is needed, extending the established technology acceptance model [Venkatesh et al
4.5 Culture
Organizational culture is dened by the collective values of a group of people in an organiza-
tion [Rosemann and vom Brocke 2015]. Currently, BPM is discussed in relation to organizational
culture [vom Brocke and Sinnl 2011] from a perspective that emphasizes an anity with clan
and hierarchy culture [Štemberger et al
2017]. These cultural types are often found in the many
companies that use BPM as an approach for documentation. Blockchains are likely to inuence or-
ganizational culture towards a stronger emphasis on exibility and an outward-looking perspective.
In the competing values framework by [Cameron and Quinn 2005], these aspects are associated with
an adhocracy organizational culture. Furthermore, not only consequences of blockchain adoption
have to be studied, but also antecedants. These include organizational factors that facilitate early
and successful adoption.
Blockchains will fundamentally shift how we deal with transactions in general, and therefore how
organizations manage their business processes within their network. Our discussion of challenges
in relation to the BPM lifecycle and beyond points to seven major future research directions. For
some of them we expect viable insights to emerge sooner, for others later. The order loosely reects
how soon such insights might appear.
Developing a diverse set of execution and monitoring systems on blockchain. Research in this
area will have to demonstrate the feasibility of using blockchains for process-aware informa-
tion systems. Among others, design science and algorithm engineering will be required here.
Insights from software engineering and distributed systems will be informative.
Devising new methods for analysis and engineering business processes based on blockchain
technology. Research in this topic area will have to investigate how blockchain-based pro-
cesses can be eciently specied and deployed. Among others, formal research methods and
6 distributed-ledger-designed- for-nancial-services/
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Blockchains for Business Process Management - Challenges and Opportunities 0:13
design science will be required to study this topic. Insights from software engineering and
database research will be informative here.
Redesigning processes to leverage the opportunities granted by blockchain. Research in this
context will have to investigate how blockchain may allow re-imagining specic processes
and the collaboration with external stakeholders. The whole area of choreographies may be
re-vitalized by this technology. Among others, design science will be required here. Insights
from operations management and organizational science will be informative.
Dening appropriate methods for evolution and adaptation. Research in this area will have
to investigate the potential guarantees that can be made for certain types of evolution and
adaptation. Among others, formal research methods will be required here. Insights from
theoretical computer science and verication will be informative.
Developing techniques for identifying, discovering, and analyzing relevant processes for the
adoption of blockchain technology. Research on this topic will have to investigate which
characteristics of blockchain as a technology best meet requirements of specic processes.
Among others, empirical research methods and design science will be required. Insights from
management science and innovation research will be informative here.
Understanding the impact on strategy and governance of blockchains, in particular regard-
ing new business and governance models enabled by revolutionary innovation based on
blockchain. Research in this topic area will have to study which processes in an enterprise
setting could be onoverganized dierently using blockchain and which consequences this
brings. Among others, empirical research methods will be required to investigate this topic.
Insights from organizational science and business research will be informative.
Investigating the culture shift towards openness in the management and execution of business
processes, and on hiring as well as upskilling people as needed. Research in this topic area
will have to investigate how corporate culture changes with the introduction of blockchains,
and in how far this diers from the adoption of other technologies. Among others, empirical
methods will be required for research in this area. Insights from organizational science and
business research will be informative.
The BPM and the Information Systems community have a unique opportunity to help shape this
fundamental shift towards a distributed, trustworthy infrastructure to promote inter-organizational
processes. With this paper we aim to provide clarity, focus, and impetus for the research challenges
that are upon us.
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... Exploring Blockchain technology's potential in the banking and finance sectors Distribution Ledger Technology, such as Bitcoin and other cryptocurrencies, provide financial organizations a variety of operational benefits, including enhanced security, cost savings, and immutability, among other things (Mendling et al., 2018). According to Park and Park (2017), keeping data on a blockchain is safer than storing data in a single database since database hacks are less prevalent than blockchain attacks. ...
... Cost reduction will always be a crucial point to consider when implementing blockchain technology (Hassani et al., 2018). Ngo (2017) and Zignuts (2020) found the potential application of Blockchain technology in significantly lowering infrastructure expenses, resulting in financial Blockchain is a distributed database/ledger shared among peers in a peer-to-peer network that contains timestamped transactions that are secure by public-key cryptography and verifiable by the network community (Hassani et al., 2018 andNgo 2017) There is no regulatory authority in a distributed ledger, which is a consensus of duplicated and synchronized digital data shared across various places, countries, or organizations (Mendling et al., 2018). As a result, blockchain permits the creation of a system in which any online transaction involving digital assets may be validated at any moment without jeopardizing the privacy of the digital assets or the persons involved (Park and Park, 2017 (2019), one of the primary reasons people want to use blockchain is the high level of transparency it provides to its users. ...
This study investigated the impact of blockchain technology in the financial sector. 20 countries from the Sub SaharanAfrica for a time periodfrom 2011 to 2021 was used. The study employed component analysis to represent the financial development variable, and a Generalized Method of Moments (GMM) was used to evaluate the link between the dependent and independent variables, including blockchain technology and macroeconomic variables. The findings indicatedthat blockchain technology has positive and significant relationship with the financial development. This indicates that the existence of blockchain innovation promotes financial growth. The findings also specified that macroeconomic factors such as lagged financial development, GDP, GDP per capita, FDI, trade openness and Rule of Law have significant and positive relationship with financial development. The institutional variable, government effectiveness has an insignificant relationship.
... Reduced transaction costs and increasing the level of disintermediation lead to a new type of business model [97,98]. One of the significant organisational factors that determines the IT innovation adoption is the business model readiness [99][100][101][102][103]. Business models are a major concern for businesses that aim to understand the existing business context to come up with a new way of conducting a business [104]. ...
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Tourism products involve the transfer of money that is flowing to countries with partners or borders, which do not possess any relations surrounding their business environment. Suitable platforms must be generated by the tourism industry, which are beneficial to users when their demands are satisfied based on financial, technology, knowledge, and industry matters. Intermediaries are applied to alleviate different problems that are related to the non-fulfilment of contracts of existing users and service providers who are offering their services and represent a reliable third party. However, it is significant that intermediaries must be reliable when charges are incurred for any possible commission. Cryptocurrencies rely on blockchain technology to provide smoothness in money interchange without the need for reliable third parties. This interchange allows an increasing number of different new forms, which are related to different customer-to-customer transactions. The study attempts to provide an appropriate answer to the main research question, which is: 'Will the widespread adoption of cryptocurrencies bring new types of customer-to-customer markets from a technological, organizational, and environmental perspective?'.
... Another important reason for the emergence of Business Process Redesign (BPR) stems from the need to be adaptable to the evolving organizational change by applying various techniques and approaches [8], towards modifying the process design depending on the feedback of the process runtime, and/or the performance attributes [9]. The prospect of continuously modifying and improving (i.e., redesigning) the various business operations played a central role in the emergence of BPs as a concept and is embodied in most Business Process Management (BPM) lifecycles, e.g., in [10,11]. As a structural model element, BPR is a first-class citizen in BPM lifecycles, even though it is incorporated into these models in diverse ways. ...
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The continuous and systematic redesign of key business processes is very important for businesses and organizations that seek to achieve cost savings and efficiency enhancements. Selecting the most impactful processes and ensuring a successful redesign initiative remains an important topic that motivated the authors to conduct a Systematic Literature Review (SLR) on Business Process Redesign (BPR) Evaluation methodologies by applying an established eight-step SLR guide. The review sheds light on the current state of research and highlights the research gap by considering two dimensions of BPR artifacts: (a) the type of evaluation and (b) the generalizability of the existing approaches. The findings indicate that there is a lack of systematic methodologies in literature that properly evaluate the redesign capacity of models prior to implementation. Additionally, the existing methodologies do not cumulatively evaluate the quality characteristics that are necessary for BPR implementation or the applicability of BPR heuristics, and do not bear the generalizability to be readily used in a more general context. This paper aims to provide researchers with the necessary context and motivation to bridge this gap and further systematize BPR methodologies that can preselect the most suitable business processes for redesign.
... Distributed ledger technology (DLT), generally implemented on a blockchain basis, is widely recognized as a compelling platform to support the cross-organisational execution of business processes -even when the organisations cannot agree on a trusted (third) party as a middleman [5]. Blockchain-deployed smart contracts can impartially enforce the agreed-on sequences of activities and track sent and received messages. ...
Business process collaboration between independent parties is challenging when participants do not completely trust each other. Tracking actions and enforcing the activity authorizations of participants via blockchain-hosted smart contracts is an emerging solution to this lack of trust, with most state-of-the-art approaches generating the orchestrating smart contract logic from Business Process Model and Notation (BPMN) models. However, compared to centralized business process orchestration services, smart contract state typically leaks potentially sensitive information about the state of the collaboration, limiting the applicability of decentralized process orchestration. This paper presents a novel, collaboration confidentiality-preserving approach where the process orchestrator smart contract only stores encrypted and hashed process states and validates participant actions against a BPMN model using zero-knowledge proofs. We cover a subset of BPMN, which is sufficient from the practical point of view, support messagepassing between participants, and provide an open-source, endto-end prototype implementation that automatically generates the key software artifacts.
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Cluster analysis is a data mining technique that aims to identify a group of objects that have the same characteristics. The number of groups that can be identified depends on the amount of data and the type of object, so that data problems arise when there is a change to a number of redundant data, but not all of it is changed where the data above is repeatedly made into one table with a different code as the primary key and there are anomalies Insertion, so K-means is one method of clustering data which is divided into the form of one or more clusters/groups that have the same characteristics. Student data clustering uses the k-means method, consisting of student assessments. This study uses student assessment data. Then it was concluded that the assessment group was based on reliability aspects: the ability of lecturers, education staff and administrators to provide services, responsiveness aspects: the willingness of lecturers, education staff and administrators to help students and provide services quickly, aspects of certainty ( assurance): the ability of lecturers, staff and administrators to give confidence to students that the services provided are in accordance with the provisions, aspects of empathy (empathy): the willingness/concern of lecturers, staff and managers to give attention to students, tangibles aspects: students' assessment of the adequacy , accessibility, quality of facilities and infrastructure from the grouping results based on reliability, responsiveness, assurance and empathy data.
Purpose The purpose of this paper is to design a consortium-blockchain based framework for cross-organizational business process mining complying with privacy requirements. Design/methodology/approach Business process modeling in a cross-organizational setting is complicated due to privacy concerns. The process mining in this situation occurs through trusted third parties (TTPs). It uses a special class of Petri-nets called workflow nets (WF-nets) to represent the formal specifications of event logs in a blockchain-enabled cross-organization. Findings Using a smart contract algorithm, the proposed framework discovers the organization-specific business process models (BPM) without a TTP. The discovered BPMs are formally represented using WF-nets with a message factor to support the authors’ claim. Finally, the applicability and suitability of the proposed framework is demonstrated using a case study of multimodal transportation. Originality/value The proposed framework complies with privacy requirements. It shows how to represent the formal specifications of event logs in a blockchain using a special class of Petri-nets called WF-nets. It also presents a smart contract algorithm to discover organization-specific business process models (BPM) without a TTP.
Blockchain is a transparent, encrypted, distributed database. It is utilised effectively by financial instruments, e-government, supply networks, and others. This paper examines emergency uses for the Blockchain. There needs to be a sound information system for managing and controlling disasters, making decisions, and creating a conceptual model from disaster and blockchain literature. This chapter discusses parties exchanging and storing data on one platform. This study proposes a system model for pre-, during-, and post-disaster user scenarios. The methodology asserts holistic disaster resolution.
Today, an increasing number of firms are embracing blockchain as part of their efforts to achieve operational efficiency and improve performance, thereby acting as a catalyst to bring about digital transformation. Gartner listed blockchain as the most promising technology in digital marketing in the year 2019. Blockchain is driving digital transformation by forcing organizations to rethink how they operate, in terms of identifying ineffectiveness of traditional approaches to doing business, to address their business needs, promote innovation, and through establishment of standard frameworks. Blockchain shows massive disruption potential in the area of customer relationship management and enhancing consumer experience, besides improving trust, security, and privacy. Therefore, this chapter focuses on providing an enlightenment on how blockchain can specifically address the areas of transformation in digital marketing, prominent frameworks in use, and listing the benefits and challenges of implementing this technology.
Technical Report
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Blockchain technologies originally emerged to support new forms of digital currency, but now hold promise as a new foundation for transactions in society. A blockchain is both a database recording transactions between parties, and also a computational platform to execute small programs (called ‘smart contracts’) as transactions. A blockchain is a distributed database, replicated across many locations and operated jointly by a collective. Blockchains transactions can support services for payments, escrow, notarisation, voting, registration, and process coordination. These are key in the operation of government and industry. Conventionally, these services are provided by speci c trusted third-parties such as banks, legal rms, accountancy rms, government agencies, and service providers in speci c industries. With a blockchain-based system, rather than relying on third-party organisations, we could instead choose to rely on the blockchain software and on a majority of the collective that jointly operates the blockchain system. The report describes some of the technical risks and opportunities in the application of blockchain technologies within government and industry, and how to assess whether blockchain-based systems will meet critical requirements. The project explores this primarily through the description and analysis of high-level design alternatives for illustrative ‘use cases’. Three use cases have been selected after a number of initial workshops and preliminary research: remittance payments, open data registries, and agricultural supply chain. These provide reasonable coverage of various kinds of requirements and regulatory concerns, against which we can evaluate design alternatives, and in turn learn more general lessons about blockchain technologies. In addition to this design-based analysis, we also report on some empirical results from testing prototype implementations. Compared to conventional centralised databases and computational platforms (on-premises or cloud), blockchains can reduce some counter-party and operational risks by providing neutral ground between organisations. Blockchain technologies may provide advantages for integrity and non-repudiation. However, they also currently have limitations for con dentiality, privacy, and scalability. For latency and availability, reading is improved but writing is worsened. Blockchains are also subject to a di erent cost model. Digital currency transfer and long-term storage of transactional data may be less expensive. However, program execution and storage of big data may be more expensive. Public blockchains provide very low barriers to entry for new participants, which can facilitate competition, innovation, and productivity. However, they do not mandate authentication of those participants, which creates challenges for regulation of money laundering, terrorism nancing, and tax avoidance. Private blockchains can impose more controls on authentication and access, which can partly address those regulatory concerns. Still, for competitors within an industry consortium, private blockchains may not be private enough to provide normal levels of commercial con dentiality for business operations, competitive position, and customer relationships. When assessing business risk, regulatory acceptance, and assurance arguments for a blockchain-based system, we need to consider not just the blockchain, but also all of the other components that are integrated in the design of the whole system. Other components will provide user interfaces, cryptographic key management, and o -chain databases, communications, and processing. Judicious use of these other components may mitigate blockchain’s risks while still leveraging blockchain’s opportunities. Finally, blockchains are still a rapidly evolving technology, with ongoing developments especially to improve scalability and con dentiality. Globally, governments, enterprises, and startups are exploring the technology/ market t in a wide variety of use cases and for a wide variety of requirements and regulatory demands. There is still much that is unknown about the development of trustworthy blockchain-based systems. Further research is required to improve our knowledge about how to create blockchain-based systems that work, and how to create evidence that blockchain-based systems will work as required.
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The usage of process choreographies and decentralized Business Process Management Systems has been named as an alternative to centralized business process orchestration. In choreographies, control over a process instance is shared between independent parties, and no party has full control or knowledge during process runtime. Nevertheless, it is necessary to monitor and verify process instances during runtime for purposes of documentation, accounting, or compensation. To achieve business process runtime verification, this work explores the suitability of the Bitcoin blockchain to create a novel solution for choreographies. The resulting approach is realized in a fully-functional software prototype. This software solution is evaluated in a qualitative comparison. Findings show that our blockchain-based approach enables a seamless execution monitoring and verification of choreographies, while at the same time preserving anonymity and independence of the process participants. Furthermore, the prototype is evaluated in a performance analysis
Conference Paper
This demonstration introduces Caterpillar, an open-source Business Process Management System (BPMS) that runs on top of the Ethereum blockchain. Like any BPMS, Caterpillar supports the creation of instances of a process model (captured in the Business Process Model and Notation – BPMN) and allows users to track the state of process instances and to execute tasks thereof. The specificity of Caterpillar is that the state of each process instance is maintained on the Ethereum blockchain, and the workflow routing is performed by smart contracts generated by a BPMN-to-Solidity compiler. The compiler supports a wide array of BPMN constructs, including user, script and service tasks, parallel and exclusive gateways, subprocesses, multi-instance activities and event handlers. The target audience of this demonstration includes researchers in the area of business process management and blockchain technology.
The Bitcoin cryptocurrency records its transactions in a public log called the blockchain. Its security rests critically on the distributed protocol that maintains the blockchain, run by participants called miners. Conventional wisdom asserts that the mining protocol is incentive-compatible and secure against colluding minority groups, that is, it incentivizes miners to follow the protocol as prescribed. We show that the Bitcoin mining protocol is not incentive-compatible. We present an attack with which colluding miners' revenue is larger than their fair share. The attack can have significant consequences for Bitcoin: Rational miners will prefer to join the attackers, and the colluding group will increase in size until it becomes a majority. At this point, the Bitcoin system ceases to be a decentralized currency. Unless certain assumptions are made, selfish mining may be feasible for any coalition size of colluding miners. We propose a practical modification to the Bitcoin protocol that protects Bitcoin in the general case. It prohibits selfish mining by a coalition that command less than 1/4 of the resources. This threshold is lower than the wrongly assumed 1/2 bound, but better than the current reality where a coalition of any size can compromise the system.
This textbook covers the entire Business Process Management (BPM) lifecycle, from process identification to process monitoring, covering along the way process modelling, analysis, redesign and automation. Concepts, methods and tools from business management, computer science and industrial engineering are blended into one comprehensive and inter-disciplinary approach. The presentation is illustrated using the BPMN industry standard defined by the Object Management Group and widely endorsed by practitioners and vendors worldwide. In addition to explaining the relevant conceptual background, the book provides dozens of examples, more than 230 exercises – many with solutions – and numerous suggestions for further reading. This second edition includes extended and completely revised chapters on process identification, process discovery, qualitative process analysis, process redesign, process automation and process monitoring. A new chapter on BPM as an enterprise capability has been added, which expands the scope of the book to encompass topics such as the strategic alignment and governance of BPM initiatives. The textbook is the result of many years of combined teaching experience of the authors, both at the undergraduate and graduate levels as well as in the context of professional training. Students and professionals from both business management and computer science will benefit from the step-by-step style of the textbook and its focus on fundamental concepts and proven methods. Lecturers will appreciate the class-tested format and the additional teaching material available on the accompanying website.
Purpose The paper investigates differences in the success of business process management (BPM) initiatives and their connection with organizational culture. The purpose of this paper is to identify propositions on characteristics of BPM initiative that are favorable for its success according to dominant organizational culture. Therefore, the authors’ aim was to identify connections of organizational commitment to BPM and dimensions of business process orientation (BPO) with dominant organizational culture. Design/methodology/approach As a research design, the authors used a questionnaire to collect data on the BPM adoption practices of organizations in Austria, Croatia and Slovenia with more than 50 employees. BPM adoption was measured with BPO and organizational culture with Competing Values Framework (CVF). Non-parametric tests have been applied for the analysis. On this survey data, the authors conducted statistical tests to identify those factors that discriminate successful from unsuccessful BPM initiatives. Findings The study revealed empirical insights about characteristics of successful BPM initiatives in different organizational cultures. There are several statistically significant differences with respect to the success of BPM adoption. The chance of success appears to be higher: when the BPM initiative is rolled out in the entire organization if the organization has Clan, Market or Hierarchy culture; when the BPM is run on a continuous basis in Hierarchy culture and repeatedly in Adhocracy culture; when a top-down approach is used in organizations with Market or Hierarchy dominant culture; when the BPM initiative has a strategic role and formal responsibilities are defined in Clan and Hierarchy cultures. Originality/value The authors’ empirical findings provide the basis for the formulation of detailed propositions on the interaction of various factors and their impact on BPM adoption in connection to organizational culture. In this way, the authors’ contribution is situated in the inductive research cycle and informs theory building for BPM adoption.
Business Process Management (BPM) is the art and science of how work should be performed in an organization in order to ensure consistent outputs and to take advantage of improvement opportunities, e.g. reducing costs, execution times or error rates. Importantly, BPM is not about improving the way individual activities are performed, but rather about managing entire chains of events, activities and decisions that ultimately produce added value for an organization and its customers. This textbook encompasses the entire BPM lifecycle, from process identification to process monitoring, covering along the way process modelling, analysis, redesign and automation. Concepts, methods and tools from business management, computer science and industrial engineering are blended into one comprehensive and inter-disciplinary approach. The presentation is illustrated using the BPMN industry standard defined by the Object Management Group and widely endorsed by practitioners and vendors worldwide. In addition to explaining the relevant conceptual background, the book provides dozens of examples, more than 100 hands-on exercises – many with solutions – as well as numerous suggestions for further reading. The textbook is the result of many years of combined teaching experience of the authors, both at the undergraduate and graduate levels as well as in the context of professional training. Students and professionals from both business management and computer science will benefit from the step-by-step style of the textbook and its focus on fundamental concepts and proven methods. Lecturers will appreciate the class-tested format and the additional teaching material available on the accompanying website
This article presents an overview of the unified theory of acceptance and use of technology. I trace its origins, which relates back to the technology acceptance model, and discuss related models. I share some of my experiences, as an author, editor, and reviewer, to identify some common problems in current research investigations in this area. Drawing on these lessons, I make suggestions for future research on this topic.