Web revives workflow

By Sandra Gittlen
Network World,

You can thank the Internet for reviving workflow.

A few years ago, companies were jazzed about the potential of workflow technology. They were going to automate all their business processes. But until last year, not much happened.

See how it works
A sample workflow

Astronomical costs for each workflow package, 24-by-7 monitoring of servers and expensive dedicated lines discouraged companies from broadly accepting the technology. Most kept their use of workflow to on-site payroll and human resources functions.

But today, with Web-based workflow applications, workflow is being implemented not only for company management functions, but also criminal investigations, product development and loan approval. Prices are significantly lower and installation and maintenance of the software is a breeze.

All this because workflow developers embraced the Internet.

Back in the day

When workflow first started out, it was a kludgy system that required a lot of attention and money.

At more than $2,000 a seat, it was a pricy investment for companies with a lot of employees and sites, said Joshua Norrid, director of application development at Bristol Hotels and Resorts in Dallas.

Servers had to be monitored around the clock to ensure running more than one or two applications was not taxing the system.

In addition to the software investment, the cost of having a long-distance connection sustained for the length of the workflow transactions for remote sites was exorbinant, he said.

Also, because of the number of hops data was traveling over long-distance lines, the reliability of the connection was reduced.

Finally, the speed of the modems was slow, leading to more time online to complete workflow processes.

All of these things grouped together meant huge headaches for network managers.

Enter the Internet

With the advent of Internet-based workflow, suddenly the landscape changed.

"For five years, customers have been complaining about the high cost of rolling out workflow," said Gerry Murray, research manager for International Data Corp., in Framingham, Mass.

. Most systems cost about $2,000 per user, he said. But today, with Web-based applications, that price has dropped to between $300 and $400 per user for enterprise suites.

Microsoft Corp. and Lotus Development Corp. started taking an interest in the technology. Workflow, in some cases, would sit on top of Exchange or Notes, taking advantage of e-mail capabilities. Workflow companies such as KeyFile Corp., FileNet Corp. and PeopleSoft, Inc. focused on 'Net-based uses for workflow. They began to transform their applications from bulky to slim. With more companies on the scene, competition drove prices down for software packages. Average prices fell to $200 per user.

By using the Internet, phone costs plummeted, Norrid said. Carriers such as AT&T and MCI Communications Corp. began to offer business services geared toward longer connection times, such as AT&T WorldNet. What was once a long-distance call, could now be funneled through a local access provider or a dedicated high-speed network link such as frame relay. With less hops to endure, data is transferred more efficiently. Also, the speed of the links increased tremendously to T-1 and above. Standardization on 'Net-based protocols meant more data could be tossed over the network.

Finally, monitoring was no longer necessary because applications were smaller, therefore more applications could fit on a network and be shared among clients automatically.

"You no longer need a specialized computer," said Roger Sullivan, vice president of marketing for workflow software vendor Keyfile Corp. "You can now tie together disparate functions."

"The fundamental catalyst for the growth of workflow has been the Internet," Murray said.

Workflow will account for more than $6.6 billion in software sales by the year 2000, compared with just $1 billion today, Murray said.

Creativity is key

While most people had been using workflow for traditional tasks such as payroll and accounts payable, the 'Net-based applications allowed people to stretch their minds and come up with new uses for the technology. They were no longer limited to thinking about how it could benefit on-site processes. Instead, they were free to think around the globe.

For example, Sullivan cited a tool company that is generating and then implementing new product ideas using workflow.

"Somebody generates the idea, it is passed to product management to see if it's viable," he said. After that, the idea is sent to engineering, marketing and on down the line. Each person adds his input, checks off his name and then sends the idea on to the next person. Several can conference around it or the idea can be rerouted if one person is not available. All of this is done automatically without needing to hand-forward a document or e-mail.

Loan companies are coordinating their loan approval processes using workflow, Sullivan said. They gather market statistics, consult with loan department chiefs and check their business plans, all with one linear process, he said.

The government is even using workflow for incident tracking. For instance, if there is an oil spill on an Air Force runway, workflow helps to coordinate investigations by the Air Force, the Environmental Protection Agency and the local legal and government representatives, he said.

"By coordinating these activities through e-mail or forms, you can present a unified package," he said.

Jumping on the bandwagon

Bristol Hotel and Resorts didn't realize right away how powerful 'Net-based workflow could be.

In June 1995, Bristol Hotels hired Norrid as a consultant to fix the problems the company had with its existing accounting system workflow. The system comprised 60 servers in a room at the home office connected to phone lines with which the hotels would connect. The hotels would then remotely run those machines to execute their tasks, Norrid said.

By 1997, Norrid had been hired full time and had received several promotions to his current position of director of application development. His new task: Revamp the company's entire workflow process. By the time Norrid took his current position, the Bristol chain had grown from 12 hotels to more than 122 nationwide and in Canada.

With seven people on his team dedicated to workflow, Norrid is turning his attention to integrating the company's newly established intranet with its under-construction Web site. Already, the company rolled out a centralized Web-based payroll system that supports 15,000 employees. Norrid also ditched the 60 machines in favor of three servers running workflow applications over a 'Net connection and Citrix software. Norrid said his next goal is to get that number down to one. He hopes that the next version of PeopleSoft's workflow software, Release 7.0, will allow him to do that. That version is slated to have a Web interface, so he won't need the Citrix add-on.

The Internet site is being reengineered to support electronic commerce, but not just room reservations, Norrid said. Instead, Bristol will focus on its bread and butter - conference planning. "We are trying to figure out how we can integrate with all the sales functions," he said.

Norrid's hope is that Bristol will cut down on the amount of paper being generated. Conference planning accounts for a large amount of that, he said. "Our whole request for proposal process needs to be optimized," he said. Norrid is hoping to change the process to a survey form filled out by a customer, which then generates e-mail messages to the appropriate person for follow-up.

In 1999, Norrid said Bristol will roll out Bristol Online Catalog, a centralized purchasing program for the hotels. Using PeopleSoft Purchasing, users will be able to shop and order standard products over the Web. Those orders will then be transferred electronically to the home office and on to the vendor, through one easy checkoff process. PeopleSoft Purchasing also lets users track their requests.

"Our shop is cutting edge, but certainly not bleeding edge," Norrid acknowledged. He still talks regularly with others in the hospitality industry, including Holiday Inn and Marriott Corp., to share ideas.

Although Norrid did not have to sell senior management on the idea of automating processes from reservations to purchasing to human resources, he did have to suffer a doubletake from his managers when he told them the initial investment required.

A quarter of a million dollars was required just to look at financial workflow applications from PeopleSoft, Inc. "That was just on consultants and getting started," he said.

"But everyone knows this will save money in the long run," he said. "Over the course of the next few years, we could save $750,000 to a million" for in-house tasks such as expense reports, travel requests and time sheets. "We're no longer pushing paper around," he said.