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Business Process Intelligence


Action is the real measure of intelligence - Napoleon Hill ... each step to ensure flawless process execution, escalation, and exception management. ... – PowerPoint PPT presentation

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Title: Business Process Intelligence

Business Process Intelligence
  • by
  • Hoda M. Hosny
  • Consultant at CRCICA and SECC
  • Adjunct Professor of Computer Science, AUC and
  • ATIT 2009, Cairo, January 19-20, 2009

Action is the real measure of intelligence -
Napoleon Hill It is wiser to find out than to
suppose - Mark Twain
Nari Kannan, 2008
  • 1. Business Process Management
  • 2. Essential BPM Issues
  • 3. Business Process Intelligence
  • 4. The State of the BPM Market

1. Business Process Management
  • Business Process Modeling (BPM)--sometimes known
    as Business Process Management-- is a set of
    technologies and standards for the design,
    execution, administration, and monitoring of
    business processes.
  • A business process is the flow or progression of
    activities (the "boxes")--each of which
    represents the work of a person, an internal
    system, or the process of a partner
    company--toward some business goal.
  • The BPM market is one of the fastest growing
    software markets.

The Business Process Management Space with Some
BPT, July 2004
Process Modeling and Business Rules
  • Process Modeling is the use of information and
    graphics to represent processes in a consistent
    way. It typically includes a knowledge repository
    or database of processes and allows graphical
    entry and display of results.
  • Process modeling typically produces multiple
    views or diagrams of a process (such as UML
    Activity Diagrams) which provide for Business
    Rules to be expressed.
  • Textual business modeling languages, executable
    or non-executable have recently emerged to become
    industry standards as well.

Example of a Simple Business Process White,
S., 2006
Example of A Collaborative B2B Process
White, S., 2006
Example of A High Level Business Process
White, S., 2006
White, S.,2006
Example of a Low Level Business Process
Industry Standards for Business Modeling Languages
  • Business modeling is supported by a mix of
    emerging industry standards that include the
  • Business Process Modeling Notation (BPMN) A
    graphical notation for representing business
    processes. BPMN defines a Business Process
    Diagram, which is based on flowcharting
    techniques customized for business process, and a
    mapping to BPEL executable semantics (next
    slide). The BPMN industry standard is maintained
    by the OMG (Object Management Group)
  • Unified Modeling Language (UML) The
    industry-standard visual modeling language for
    specifying software-intensive systems can also be
    used to model business processes. In particular,
    UML Activity diagrams provide many of the
    workflow modeling constructs furnished by BPMN.
    The UML industry standard is maintained by the

Industry Standards for Business Modeling
Languages (contd.)
  • Business Process Executable Language (BPEL) An
    XML-based executable language for representing
    business processes. BPEL focuses on the view of
    one business participant. The BPEL industry
    standard is maintained by OASIS.
  • Web Services Choreography Description Language
    (WS-CDL) An XML-based non-executable language
    that represents global business processes. 
    WS-CDL describes peer-to-peer collaborations of
    multiple business participants working on a
    common business goal. The WS-CDL industry
    standard is maintained by W3C.

Travel Booking process with BPMN
White, S., 2005
BPMN is supported by software tools
White, S., 2005
Travel Booking process with WebSphere Studio
Mapping BPMN to BPEL (for the check credit card
White, S., 2005
BPEL code for the check credit card task
White, S., 2005
Event Process Chain (EPC)
  • Developed within the framework of Architecture of
    Integrated Information System (ARIS)
  • Developed from the business prospective rather
    than IT
  • Contains lots of ambiguities and deadlocks

EPC (example)
Ferdian et. al, 2001
Primary Components of BPM Suites
  • Although BPM suites functionality differ, there
    is general agreement that a BPM suite includes
    the following
  • Process Modeling Tool.
  • This is where a non-technical user (such as a
    business analyst) can create a flowchart-like
    model of the business process, and technical
    users can connect the model to Web services and
    other points of integration. A single shared
    model is most desirable so that important
    information from one audience isnt lost in the
    handoff to the other. To qualify as BPM, the
    model must be executable, or able to force action
    on the process design, sending tasks to people,
    and messages to systems, for example.
  • Server-based Process Execution Engine.
  • This engine orchestrates all processes and
    their resourcespeople, organizations,
    applications, and systemsmanaging proper
    sequences, enforcing business rules, and auditing
    each step to ensure flawless process execution,
    escalation, and exception management.

Oracle White Paper, Aug. 2008
Primary Components of BPM Suites contd.
  • Browser-based workspace.
  • This is an interface where human process
    participants can locate, open, and complete the
    tasks assigned to them within the BPM suite.
  • Intelligence dashboards.
  • Both historical and real-time process
    monitoring, reporting, and analytics dashboards
    are used to disseminate information to all users.
  • Simulation and optimization capabilities.
  • Tools are employed to support testing,
    analysis, and continuous process improvement.

Oracle White Paper, Aug. 2008
Other Optional BPM Suite Components
  • Business rules engine or decision services. These
    can be used to build, execute, and manage
    business rules.
  • Content management. This is a repository for
    attachments to processes.
  • Collaboration. This offers support for
    unstructured interaction within a process.
  • Enterprise service bus (ESB). This is a
    service-oriented integration layer underneath the
    BPM suite. Although all BPM suites support direct
    Web services calls, an ESB includes functions
    such as mapping and transformation.
  • Industry-specific or application-specific
    frameworks. These shorten the customization time
    for standard processes such as employee

Oracle White Paper, Aug. 2008
Common Visual Notation for Process Diagrams
A BPMN Diagram
Oracle White Paper, Aug. 2008
The Evolution of BPM
In 2000, analysts began combining EAI and
workflow into a single category BPM.
Oracle White Paper, Aug. 2008
SOA infrastructures help drive enterprise-wide
BPM Adoption
Oracle White Paper, Aug. 2008
Seamless Interchange of Process Models Between
  • The interchange of process models between tools
    is a challenging problem. Until BPM technologies
    and associated standards mature further, some
    level of custom integration work will be required
    to move models between tools.
  • XML Process Definition Language (XPDL). XPDL is
    an interchange format created by the Workflow
    Management Coalition. XPDL is today supported by
    more than 70 vendors.
  • BPEL. Created by the Organization for the
    Advancement of Structured Information Standards,
    BPEL is a Web services orchestration language.
    For system-centric use cases, BPEL is considered
    mature and dominant.
  • Business Process Definition Metamodel (BPDM). A
    newly released process definition standard that
    provides full support for all BPMN objects.

Oracle White Paper, Aug. 2008
An Overview of the various domains of Business
Process Management
BPT, July 2004
2. Essential BPM Issues
  • Business Process
  • Business Continuity
  • Business Solution

Business Process
  • While not a new way of analyzing a business,
    Business Process thinking and technology have
    transformed today's information systems and
    reduced the lag between management intent and
  • A process-managed business makes agile decisions,
    embeds quality and reduces cumulative costs
    across the organization. It pursues strategic
    initiatives with confidence and direction.
  • Business Process Management is the only way to
    achieve these objectives with transparency,
    management control and accountability.

Business Continuity
  • Protecting business systems and planning a
    recovery strategy is a vital part of any Business
    Continuity Plan.
  • Any strategy must balance the short and long term
    goals of a business in times of a disaster.
  • The continuity of a business is important and by
    evaluating different recovery processes, you need
    to strike the balance between what you need to
    protect your business and what you can afford.

Business Solutions
  • Business Solutions involve reviewing your
    business to identify an area which is
    under-performing in a big way or an area that is
    out-dated and in need of replacement.
  • These areas can often be improved by the
    introduction of a single integrated Business
  • Key areas of a business such as finance, human
    resources and internet services can all be
    improved with the introduction of a dedicated
    Business Solution.

Business Solutions contd.
  • When it comes in the form of an existing product
    which is shaped to meet an organizations
    specific needs, a business solution can be a very
    cost-effective approach to improving performance
    and costs.
  • Many companies will offer a complete Business
    Solutions package.
  • This will include reviewing business processes,
    customizing the product, implementation of the
    business solution, staff training and the
    important post-implementation support until the
    company is utilizing the solution efficiently.

Business Performance Management
  • There's a lot of noise in the marketplace about
    corporate, business, and enterprise performance
  • Regardless of the term used, the ability to apply
    performance management principles to daily
    operations to optimize overall efficiency,
    continuously improve quality, and assign value to
    tangible and intangible assets is now the
    ultimate goal of most large business

Mark Smith, 2002
A Pyramid showing the various Performance
BPT, July 2004
3. Business Process Intelligence
  • Business Process Intelligence (BPI) is an area
    that is quickly gaining interest and importance
    in the industry.
  • BPI refers to the application of various
    measurement and analysis techniques in the area
    of business process management.

BPI Defined
  • Business Intelligence is the collection,
    integration and analysis of a broad variety of
    processes and technologies to help a business
    make sound decisions.
  • Business intelligence may take into account such
    activities as statistical analysis, data mining
    and financial forecasting.

  • In essence, BI systems rely on algorithms derived
    from data analysis (OLAP) and Artificial
    Intelligence (AI) to search data
  • and to identify interesting patterns or

BPI Goals
  • The goal of BPI is to provide a better
    understanding and a more appropriate support of a
    company's processes at design time and the way
    they are handled at runtime.
  • In practice, BPI is embodied in tools for
    managing process execution quality by offering
    several features such as analysis, prediction,
    monitoring, control, and optimization.

BPI, 2007
Facts about BPI
  • Business intelligence (BI) has been referred to
    as the process of making better decisions through
    the use of people, processes, data and related
    tools and methodologies.
  • The roots of business intelligence are found in
    relational databases, data warehouses and data
    marts that help organize historical information
    in the hands of business analysts to generate
    reporting that informs executives and senior
    departmental managers of strategic and tactical
    trends and opportunities
Performance as a Network
  • The question is, how can an organization
    transform its existing, transaction-oriented
    information architecture into a performance
    management network?

The Performance Management Network
The most important aspect of this network is the
ability to continuously manage performance at all
three decision levels, not just measure
historical performance.
Mark Smith, 2002
Business Processes across the Organization
  • Recent advances in
  • business process management (BPM), business
    performance management, enterprise application
    integration (EAI), business intelligence (BI),
    simulation systems, and data warehousing
  • have come together to make it possible to
    continuously monitor and measure business
    processes across the organization.

BPT, June, 2004
Business Process across the Organization contd.
  • These various technologies make it possible to
    identify, interpret, and respond to critical
    business events almost as soon as they happen.
    (This real-time BI is frequently termed
    "Operational BI ").
  • Until recently, most companies were using BI and
    data warehouses to report trends to specific
    departments within a company.

BPT, June, 2004
Business Activity Monitoring
  • The new emphasis on integrating BI with business
    processes has placed the emphasis on reporting
    the results within a process framework to those
    who must actually make process management
  • Some have termed this new application of
    Operational BI data, BAM (Business Activity
  • Recently, Business Process Intelligence (BPI) has
    emerged as a another term for using Operational
    BI to inform business process management

BPT, June, 2004
Business Performance Management
  • Instead of providing decision support based on
    data that is months or weeks old, BI is now being
    used to generate (automated) findings based on
    current transactional data that have been
    analyzed in real or near real time.
  • This instantaneous analysis capability is most
    significant, because it facilitates the use of
    digital dashboards and other business performance
    measurement applications that can monitor and
    measure key business processes across the
    organization and distribute their findings to
    various classes of corporate decision makers
    residing at different organizational levels.
  • This is now known as Business Performance

BPT, June, 2004
Basically, Business Performance Management is a
technology that connects process measures,
metrics, and people in order to drive improved
management, analysis, and decisions across the
BPT, June, 2004
The Advantages of BPI
  • Hence, BPI is a valuable approach that can help
    companies carry out their process improvement and
    process management initiatives by
  • Providing a consistent, process-based view of the
  • Facilitating real-time monitoring of key business
    process and information systems
  • Aligning execution with strategy
  • Managing enterprise performance

BPT, June, 2004
Basic Requirements for BPI
  • The ability to apply performance-driven
    management techniques to daily operations has
    several requirements, including
  • 1. The ability to manage performance across
    different business processes (i.e.,
    customer-facing activities, finance and
    accounting operations, supply-chain, and human
  • 2. The ability to manage performance at different
    organizational levels (i.e., executive,
    management, and individual rank-and-file

BPT, June, 2004
Basic Requirements for BPI contd.
  • 3. The ability to acquire an overall view of how
    different processes are functioning.
  • 4. The ability to notify appropriate people of
    important business events as they happen so they
    can take proactive action to capitalize on/or
    mitigate their effect.
  • 5. The ability to do this in real or near

BPT, June, 2004
Problems with the Requirements
  • The above requirements are difficult for a
    company to achieve because most organizations
    have fractured infrastructures based on
    individual transaction processing systems (ERP,
    CRM, SCM, Web, etc.).
  • Although many of these applications do feature
    their own individualized reporting systems, they
    all use their own unrelated metrics. Moreover,
    they typically cannot integrate and analyze data
    residing on other operational systems.

BPT, June, 2004
Taking the Pulse of the Company
  • New Business Process Management (BPM) tools are,
    in effect, a combination of traditional workflow
    and Enterprise Application Integration (EAI)
    tools and, in many cases, offer a better way to
    manage integration.
  • They begin by defining a business process and
    then integrate supporting IT resources into the
    process model.
  • At the same time, metrics can be defined in terms
    of the overall process.
  • In effect, by layering a BPM layer on top of
    existing systems, companies are finding it easier
    to integrate than in the past

BPT, June, 2004
A Move to the Operational Level
  • Operational BI combines real-time operational
    transaction data with historical information to
    let decision makers move beyond the
    point-in-time analysis associated with
    traditional BI and data warehousing applications.
  • The goal is to provide immediate access to key
    performance indicators (KPIs) in order to improve
    the speed and effectiveness of the
    decision-making process.

BPT, June, 2004
Traditional BI vs. Operational Business Process
Intelligence (BPI)
BPT, June, 2004
Traditional BI
  • Traditional BI -- so called because it is
    associated with early corporate BI and data
    warehousing efforts -- is primarily used to
    provide analysts and other skilled knowledge
    workers with the ability to conduct analysis and
    reporting to support both strategic and tactical
    decision-making needs.
  • For example, Should we enter a new market or
    develop a new product?
  • Or,
  • who were our best customers last month?

BPT, June, 2004
Operational BI
  • Operational BI is enabled by understanding
    transactions, as they are generated by
    operational systems, in the context of
    information stored in the data warehouse.
  • The ability to combine real-time and historical
    data for Operational BI is important because just
    examining real-time data typically does not
    provide enough of the kind of insight that is
    required for business users to arrive at an
    informed decision.

BPT, June, 2004
Operational BI Examples
  • For example, an application that only gives a
    real-time tally of the latest sales figures for a
    particular marketing campaign does provide some
    useful information.
  • However, to be of real benefit, the application
    should compare current sales in relation to
    previous sales for a similar marketing campaign
    in order to identify trends that put the current
    figures into some kind of business perspective
    from which decision-makers can make a
    well-informed decision.
  • Another example a supply-chain purchasing
    manager can negotiate better discounts with
    suppliers when processing new orders, based on
    consistent and current consolidated purchasing
    activity and historical supplier performance

BPT, June, 2004
Operational BI Examples contd.
  • Similarly, a bank can generate continuously
    up-to-date customer-profiles by integrating
    transactions and activities from different
    channels with historical customer data.
  • This allows the bank to target the customer with
    new promotions regardless of which channel the
    customer chooses to use physical branch, online
    banking, or remote automated teller machine.

BPT, June, 2004
Comparison between Traditional BI and Operational
BPT, June, 2004
Distributed BI
  • The ability to monitor and measure business
    processes is but one part of solving the Business
    Performance Management equation.
  • The other requires the ability to distribute and
    present analytic findings so that decision makers
    have ready access to the metrics necessary for
    managing business performance at different
    organizational levels specifically to
    executive, management, and individual
    rank-and-file employees.

BPT, June, 2004
Distributed BI contd.
  • This has resulted in the growing use of
  • (1) digital dashboards,
  • (2) automated broadcasting and event
    notification servers, and
  • (3) analytic workflows.
  • These are designed to distribute and present KPIs
    to various users according to their
    organizational roles.

BPT, June, 2004
Digital dashboard displaying an executive
overview of company financial, customer internal,
and learning and growth processes.
BPT, June, 2004
Monitoring and Tracking
  • Monitoring your current business is also
    important when building Business Intelligence.
  • Knowing what is working well within your
    organization will subsequently allow you to focus
    on areas that are in need of improvement, either
    due to performance issues or cost.
  • Use of intuitive tools by both staff and
    management to distil information from your
    business will provide you the base to develop
    your Business Intelligence plan.
  • Review of all your corporate assets is vital
    omitting areas will lead to deficiencies.

Monitoring and Tracking
  • Corporate assets include customers, products
    services, network infrastructure and employees.
  • Typical performance measurements include
    profitability, availability, usage, sales and
    lifetime value.
  • An organization can then track their key
    performance measurements, refine customer
    segments scores and optimize campaign

Business Process Metrics
  • Systematic understanding of business process
    metrics and how they interplay with each other
    provides a lot of answers to dilemmas and
    questions companies may face in their operations.
  • Business processes have Efficiency factors and
    Effectiveness factors. Sometimes they go along
    with each other well and sometimes, they may not.

Nari Kannan, 2008
  • Many companies may want to provide absolutely the
    best customer service or support on the phone.
  • Given this, they may need to staff their call
    center with the best personnel around and in very
    large numbers so that no one is kept waiting on
    the phone, at all.
  • And the customer service person stays on the
    phone as long as the customer is satisfied fully.
    This however, we know, is not practical.

Nari Kannan, 2008
Example contd.
  • The Call Center manager is measured on efficiency
  • They may need to staff the call center with the
    minimum number of people at exactly the right
    times of the day so that every agent is fully
    utilized and each call takes exactly the amount
    of time needed to do a good job and keep the
    customer satisfied!

Nari Kannan, 2008
Example contd.
  • Here we see the opposing nature of
  • Efficiency Metrics like Average Handle Time
  • and
  • Effectiveness Metrics like Customer Satisfaction

Nari Kannan, 2008
Another Example
  • Business Process Intelligence also helps small
    companies compete with larger companies and vice
  • In the above example of a company having to deal
    with competing metrics like Average Handle Time
    on the phone and Customer Satisfaction,
  • If the company were a small company trying to
    take business away from biggies like, the
    strategy may be to relax the requirements on
    Average Handle Time and maximize Customer
    Satisfaction Index till it starts taking market
    share away from

Nari Kannan, 2008
Another Example contd.
  • On the other hand if the large company faces
    large financial pressures, they may not be able
    to do the same thing easily.
  • Thus, it becomes one of adjusting your various
    Efficiency and Effectiveness factors based upon
    what your business strategy is, and tactics are
    at any point of time.

Nari Kannan, 2008
BPI Extensions
  • More than Sales Intelligence or Financial
    Intelligence, Business Process Intelligence
    provides you with objective measurement of your
    various activities within the company.
  • You can get a sense of how you are performing
    currently,where your bottlenecks are and what to
    address within the company process-wise.

Nari Kannan, 2008
The Predictive Enterprise
  • The predictive enterprise is an IT infrastructure
    that supports business operations by delivering
    informed predictions about what is likely to
    happen in a business process.
  • Implementing a predictive enterprise presents
    both cultural and technological challenges

DM Review, 2008
The Predictive Enterprise contd.
  • A predictive enterprise starts with understanding
    the business processes that are at the core of
    most OLTP systems.
  • To deliver the most value, a predictive
    enterprise solution needs to be used at an
    operational level by making predictions about
    individual transactions, irrespective of whether
    this is a customer interaction, sales transaction
    or supplier transaction.
  • The first step in developing a predictive
    enterprise is to identify business processes that
    can benefit from adding predictive elements.

DM Review, 2008
The Predictive Enterprise contd.
  • The central objective of implementing a PE is to
    use the companys knowledge about its past
    business activities, stored in data warehouses,
    data marts, log files, and other sources, and the
    current state of business operations to make
    predictions about future events.
  • These predictions can be used to support the
    decision making of all individuals in an
    organization (that is, BI).
  • Examples of applications include the intelligent
    promotion of offers to specific users on your Web
    site, providing differential services to your
    best customers and detecting fraudulent

DM Review, 2008
4.The State of BPM Market
  • In a survey report (Aug 2008), an Oracle produced
    White Paper summarized the State of BPM market in
    the following 5 points
  • Rapid market growth. The BPM market is one of the
    fastest growing software markets, estimated to
    grow tenfold in five years, from approximately
    US500 million in 2006 to US6 billion in 2011.
  • Market consolidation and technology convergence.
    The BPM market is consolidating from nearly 150
    vendors recognized in 2006 to just 25 in 2007.
    Large enterprise-class vendors are replacing the
    small pure plays, offering more-holistic
    solutions that combine BPM with collaboration,
    portals, document management, service-oriented
    architecture (SOA), and business intelligence
  • Ability to quickly bridge gaps. BPM is
    increasingly being used to manage processes that
    span multiple packaged applications.

Oracle White Paper, Aug. 2008
The State of BPM Market A Survey
  • Beyond technology. Survey reports show that
    organizations with successful BPM deployments not
    only focus on the technology, but they also see
    continuous process improvement as an imperative
    business strategy.
  • BPM, collaboration, and social computing. New
    tools allow business users to participate in
    building, managing, and monitoring applications
    like never before. Leading BPM products support a
    range of collaborative and social process
    activities that today are lost in e-mails,
    documents, and hallway discussions. In an
    information economy, organizations must capture
    these unstructured processes to improve
    productivity and leverage best practices.

Oracle White Paper, Aug. 2008
Top Managers surveyed by Robert Half Management
in November 2007 highlighted process improvement
as the most likely corporate initiative to pursue
in 2008 and 2009
Business Process Improvement Technology
Upgrade New Product or Service Line
Expansion Geographic Expansion Merger or
Oracle White Paper, Aug. 2008
Survey Results onAnticipated Drivers of ROI from
BPM investments
  • Automating/accelerating highly manual process
  • Increasing visibility into processes
  • Improving operational excellence
  • Improving control over processes
  • Simplifying cumbersome processes
  • Promoting better business and IT alignment
  • Improving delivery of new products or services
  • Establishing greater governance compliance
  • Improving predictability of processes
  • Improving customer intimacy or service

Oracle White Paper, Aug. 2008
The most important BPM Obstacles to overcome
Understanding Process Org. Issues Internal
Policies Lack of Training Internal
Staff Excessive Scope Creep Budget Overrun
Oracle White Paper, Aug. 2008
BPM Maturity is Still in the Early Phase
Ad-Hoc Departmental 43
Coordinated Line of Business 17
Enterprise-Wide BPM 18
Little to No BPM 22
Oracle White Paper, Aug. 2008
Another recent survey (2007) found only 11
percent of respondents were actively integrating
BPM suites across the enterprise.
Oracle White Paper, Aug. 2008
Most organizations are only leveraging BPM at the
departmental level, leaving substantial value
Oracle White Paper, Aug. 2008
Some BPM Resources
  • Industry Resources
  • BPM Institute. A peer-to-peer exchange for BPM
    professionals. The BPM Institute publishes an
    objective report of BPM suites.
  • Business Process Trends. A news source on
    business process change, trends, directions, and
    best practices.
  • BPM Suite Watch Blog by Bruce Silver.
  • Column 2 Blog by Sandy Kemsley on BPM and
    Enterprise 2.0.
  • Standards Bodies
  • Object Management Group. This organization
    oversees Business Process Modeling Notation
    (BPMN) and Business Process Definition Metamodel
    (BPDM), among others.
  • Workflow Management Coalition. This organization
    oversees XML Process Definition Language (XPDL),
    among others.
  • OASIS. The organization that oversees BPEL, among

Oracle White Paper, Aug. 2008
  • BPI07, BPM-Research, http//
  • Hall, Curt Business Process Intelligence,
    Business Process Trends Newsletter Volume 2, No.
    6, June 2004.
  • Harmon, P. Business Performance Management The
    Other BPM, BPT Newsletter, Volume 2, no. 7, July
  • KeyITsolutions, http//
  • Kannan, Nari BPI What is it and how does it
    help Sept. 2008
  • Oracle, State of the Business Process Management
    Market 2008 An Oracle White Paper, August 2008
  • Rowe, Anthony From Business Process Management
    to Business Process Intelligence The Road to the
    Predictive Enterprise, DM Review Magazine, April
    2008. (
  • Smith, Mark, http//
    , Dec. 2002
  • White, S. A., Introduction to BPMN, IBM IBM
    Software Group, 2006, http//
  • White, S.A., Using BPMN to Model a BPEL
    Process, IBM Corp., 2005, http//
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