BPM Business Process Management: Einordnung und praktische Auswahlkriterien Dietrich Kracht dietrich@kr8.de ACM/GI Local Group 24. Juni 2004
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BPM Business Process Management: Überblick und Einordnung
Begriffe BPEL (OASIS) Business Process Execution Language BPEL4WS WS-BPEL (OASIS) Business Process Excecution Language for Web Services BPM Business Process Mangement (Business Performance Management) BPMI Business Process Management Initiative BPML (BPMI) Business Process Modeling Language BPMN (BPMI) Business Process Modeling Notation BPMS Business Process Management Suite BPQL (BPMI) Business Process Query Language 7
Business and Technology Scenario The Squeeze Is On Do more with less Fewer resources, due to tight economy Less tolerance for risk Less financial buffer for mistakes Just do more More requirements for governance More leverage of existing IT portfolio More efficiencies demanded Technology change is constant Web services and transformation to service-oriented architectures Integration becomes a key word Pi calculus accepted as underlying technology/computation paradigm for business process management (BPM) 8
Critical Issues Identifying the BPM layers from strategy to systems integration Appreciating the BPM difference from workflow, process automation, and EAI/Web services Monitoring, analyzing, simulating, and optimizing processes to gain true competitive advantage Bringing Disparate Processes Together One Process 9
Identifying the BPM Layers From Strategy to Systems Integration Understand components and their relationship The suite Full life cycle: Plan, design, build, and run Manage for continuous improvement Start with strategy, methodology, and modeling The driver is business! Methodology without thinking is dangerous Look to BPMI for thought leadership Implement process execution and integration servers Process definitions Mapping business processes to Secure, intelligent routing and transport Issue 1 BPM is not just enhanced workflow or repackaged EAI 10
Understand the Components and Their Relationship The emerging BPM suite Interlocking components Full life-cycle support Plan and design Strategy and methodology Modeling Build and run Integration servers Process execution Manage for continuous improvement Monitoring and analysis Simulation and optimization Strategy and Methodology Integration Servers BPM Cogs Simulation/ Optimization Modeling Process Execution Issue 1 Monitoring and Analysis Tie business strategy and methodology into the modeling process 11
Issue 1 Starting With Strategy, Methodology, and Modeling The driver behind business process management is BUSINESS! Strategy must drive methods Methods drive models Methodology without thought is dangerous Coordinate methodologies Use intelligently Look to BPMI for thought leadership in modeling Palatable to the business Mapped to BPEL4WS A Picture Is Worth... Them Us Vertical and horizontal coordination of BPM effort is key! 12
Issue 1 Terminology Level Set Workflow (a.k.a. process control automation) Controls around human work tasks and interactions Process automation Replaces/augments human interaction System-to-system process (a.k.a. logic) interactions Information flow Structured and unstructured content routing Business rules Declarative rules that drive system behavior Appropriately apply process automation technologies no square pegs in round holes! 13
Issue 1 Integration Servers Mapping the business process to the: Data Application logic Documents Business rules Messages and events Process owners Provide secure routing and transport Traditional EAI on steroids Order Mgmt. Integrating Processes Supplier Mgmt. New Product Introduction Logistics Procurement Manufacturing Integrate within the context of process for best ROI on integration tools PRM Service 14
Appreciating the BPM Differences From Earlier Process Automation Technologies 1. Workflow Instantiation of human interaction First to value Where to apply 2. Process automation Reduce human involvement Process coordination Integrate work tasks 3. Web services/eai Reusable business components Standards for connecting Web services Orchestration of the end-to-end process 4. BPMS: The decision players BPM requires B to be involved Issue 2 15
Issue 2 Workflow Instantiation of human interaction Across departments/divisions Across geographies First areas of value Gaining control over the human effort Where the exceptions exceed the current process Where to apply The simple or happy process path Continuous learning Efforts Must Be Coordinated Methods and models must come together to manifest the vision 16
Issue 2 Process Automation Reduce human involvement Automate where rules can be made Look at policy and customer service Automated learning and rule execution Process coordination Across applications, time, and human interaction Application architecture delimits integration choice Migration toward Web services and SOA Integrate, integrate, integrate the work tasks Treat business process management like business 17
Issue 2 Web Services Enable monolithic applications to be broken into large-grain business components Business components become the reuse point Services open new opportunities to rapidly connect business offerings together BPM becomes services orchestration tool BPM links system, service, and human process silos Components Go Internet Objects = Shared Code Components = Shared Instances Services = Delegated Function 18
Issue 2 Business Process Management Suites Potential BPM suite providers Workflow vendors (Ultimus, Metastorm, CommerceQuest, etc.) Content/document mgmt. vendors (FileNet, Staffware, etc.) EAI vendors (Tibco, Vitria, SeeBeyond) Infrastructure vendors (IBM, MS, Oracle, Sybase, Fujitsu Software, etc.) Packaged application vendors (SAP, Siebel, PeopleSoft, etc.) New BPM startups (Savvion, Fuego, Clear Technologies, Lombardi Software, etc.) BPM Suites METAspectrum SM 2004/05 0 0 20 40 60 80 100 Diverse vendors bring different strengths to the BPM opportunity Performance 100 80 60 40 20 FOLLOWER Presence CHALLENGER LEADER 19
Applying Modeling, Simulation, and Analytics Issue 3 1. Applying modeling 2. Applying simulation 3. Applying analytics The intersection of BPM and business performance mgmt. Real-time data for operational decision making Use Appropriate Approaches Keep business in business process management! 20
Issue 3 Applying Modeling Select notations prior BPMN: Best practice today Swim lane UML Select tools prior General purpose Application specific Identify leverageable artifacts Notations Change, Process Remains! Modeling must become a business discipline not a creative pastime 21
Issue 3 Applying Simulation Simulation on the rise 25% saturation Let value drive simulation Use appropriate approach Continuous Discrete Probability distribution Simulation is valuable but expensive Much upfront effort must be devoted to exploration Leverage a portfolio approach to determine candidates Simulate, Then Automate! Simulation takes science experiments out of production ecosystems 22
Applying Process Analytics Some characteristics of process analytics are: Capture and correlation of transient business events rather than the completed transaction state (i.e., data) Monitoring and analysis of operational KPIs Analysis of work progress Process context combined with historical event context Thresholds established over time Capturing the Transient State of Information Issue 3 The transient state of the information created and used in the process is the key to real-time process analytics 23
Transformation Steps Business Process Management in Summary Identify the BPM layers from strategy to systems integration Gain executive buy-in by modeling process improvements (using appropriate methodologies) that support the business strategy Differentiate the BPM suite components from whatever process automation technologies already exist Identify and apply workflow vs. process automation Treat BPM as a business discipline: Identify process owners Pick the right process automation vendor for the right work Apply modeling, simulation, and analytics Leverage modeling, simulation, and analytics to optimize business process automation projects Automating bad processes makes things worse faster! Automate, optimize, improve. 24
Navigating the BPMS Tool Market
Critical Issues Achieving operational excellence with BPMS technology Understanding the state of the market Segmenting BPMS vendors by use case Evaluating BPMS tools BPMS is an important technology for organizations seeking to become a real-time enterprise, an on- demand business, and an adaptive organization 26
What Is Business Process Management? Improve corporate performance goals by optimizing key operational processes Model breadth and depth of interdependencies between workers, systems, and information Integrate and automate the interdependencies for process optimization Coordinate and manage end-to-end, cross-functional processes, not application silos Adjust organizational structure and incentives to foster new behaviors Optimize Analyze Set Goals BPM Monitor Model Execute Although process management theories are mature, applying them and using BPM technology are not 27
Examples of Gaining Control Over Processes Compliance Mandates Increasing Visibility SOX/audits HIPAA Call Center Operations Process Management Quality of problem resolution Customer sat rate Retention rate New Product/ Service Introductions Cross-Functional Coordination Time to market Supply Chain Interdependence Integrating transportation and warehousing Order fulfillment B2Bi Opportunities Order to cash (cycle time) Source to settle (cycle time) Early-Adopter Industries Financial Services Retail banking Securities Insurance Airlines Government Telecommunications Business performance goals should drive the degree of process integration 28
Integrating Processes to Achieve Operational Excellence Process Improvement Objective Reduce latency/ Streamline the process Reduce complexity/ Lower the learning curve Close gaps at handoffs Reduce error rates Balance resources to workload Business Alignment Straight-through processing Call center operations Process integration Six Sigma program Workforce utilization Value Metric Time is money Time to market Lost or redundant work Cost control Sourcing options 29
State of the BPMS Market EAI/App Server Workflow Content BUSINESS PROCESS MANAGEMENT SOA COMPOSITE APPLICATIONS Portal When markets converge and create functional overlaps, buyers can get confused and vendors see niche opportunities 30
What Is a Business Process Management Suite? A BPMS provides a set of interlocking technologies (components) that integrate human activities with required data and systems to automate, measure, and manage the end-to-end flow of work as it progresses across boundaries (application, functional, company) Integration Server BPM Suites Modeling Environment Simulation and Optimization Process Orchestration Engine Monitoring and Analysis A BPMS is a development environment that unifies workflow, EAI, portal, and document/content management capabilities to enable end-to to-end automation of business processes, not applications 31
Composite Application Building Blocks and Use Cases Portlet Creation WS Orchestration Wiring diagram type assembly: Create new apps by reusing code and services App Server/ IDE Adapter Creation BPMS: Composite applications sweet spot Guided Navigation Screen real-estate type assembly: Combine all app pieces, information needed for a user in one screen Process Portals Portal Doc/Content Mgmt. EAI Case/Form/Content Collaboration Process model-based design and assembly: Combine all apps required for a process into a new app Currently (2005), there is great industry debate about the feature set needed for the composite applications sweet spot; leaders will not emerge before 2007 32
Contenders for Leadership in the BPMS Market: A Crowded Vendor Landscape EAI/MW Vendors Tibco, Vitria, SeeBeyond, webmethods, CommerceQuest, Sterling Commerce Packaged Application Vendors SAP, Siebel, Oracle, Commerce One Workflow Vendors Ultimus, Metastorm, Teamplate, Staffware, Pegasystems Content/Document Mgmt. Vendors FileNet, Identitech, Global 360, Documentum New BPM Startups Savvion, Fuego, Intalio, Clear Technologies, Lombardi Software, Chordiant Modeling Tools Proforma, Popkin, Casewise, IDS Scheer, Holosofx (IBM) Infrastructure Vendors IBM, Microsoft, Oracle, Sybase, BEA, Fujitsu Software Composite Process Solution Vendors Movaris, Chordiant, Exigen, Remedy, Handysoft, Vitria Vendors from diverse backgrounds bring diverse strengths to BPMS 33
Market Segmentation Approaches By Component Model.Net, J2EE, NetWeaver, proprietary By Use Case or Business Process Style Guided navigation Form-driven workflow Content creation Transactional Case management By Vendor Groupings Infrastructure vendors Portal vendors Middleware vendors 34
Java-Centric BPMS Vendor METAspectrum SM A future view of the market Technology from a handful of pure players will survive Infrastructure vendors will enter in a serious way in 2006/07 Specialists will retrench into historical niches by 2007 Tool selection should emphasize standards support, artifacts, and metadata to improve process model interoperability and extensibility Java-Centric BPMS Pure Plays 35
METAspectrum Main Criteria Criteria Dimension Presence (40) Performance (60) Criteria Area Vision/Strategy Channels/Partners Awareness/reputation Geographic coverage Business drivers Industry focus Investments Share Technology Services Pricing Execution Agility Personnel Financials TOTAL Relative Weight 20 15 15 10 0 15 10 15 100 40 5 20 10 10 5 10 TOTAL 100 36
METAspectrum Presence Criteria Presence Criteria Area Subcriteria Type Vision/Strategy (20) Understanding of Customer Needs Understanding of Market Evolution Technology Vision/Strategy Growth Strategy Channels/Partners (15) Direct Channel Integrator Channel ISV/OEM Channel Channel Management Awareness/reputation (15) Reputation Geographic coverage (10) North America EMEA Asia Pacific Other TOTAL TOTAL TOTAL Relative Weight 25 15 30 30 100 30 15 30 25 100 100 100 30 25 25 20 TOTAL 100 Business Drivers (0) Industry Focus (15) Breadth of Focus TOTAL 100 30 Depth of Offerings 70 TOTAL 100 Investments (10) Complementary Business 30 Targeted Growth Area 70 TOTAL 100 Share (15) Share 100 TOTAL 100 37
METAspectrum Performance Criteria Performance Criteria Area Subcriteria Type Technology (40) Performance Modeling Process Orchestration Execution Business Rules Integration Server Business Monitoring/Analytics Relative Weight 10 25 15 10 10 15 Services (5) Pricing (20) Execution (10) Simulation/Optimization Pre-Sales Technical Suport Documentation Implementation Tranparency Competitiveness Field-Level Sales and Marketing Referenceability 15 25 30 20 25 30 70 40 40 Partner Programs Agility (10) Overall Agility Personnel (5) Effective Organizational Structure Appropriate Organizational Size Financials (10) Revenues Profitability Total Assets 20 100 50 50 33 34 33 38
METAspectrum: BPMS Total Score Rank 1 2 3 4 5 6 7 8 9 10 11 12 13 Vendor Tibco (Staffware) Savvion FileNet Fuego Pegasystems Fujitsu Sterling Commerce Lombardi Software Chordiant CommerceQuest eistream Vitria webmethods Total Score 75,4 69,2 68,8 68,6 67,2 60,4 57,6 56,2 55,6 55,2 52,0 51,0 51,0 39
A Continuum of Business Process Styles (a.k.a. Use Cases) Human Intensive Example: Product Design Document Intensive Example: Insurance Claims Hybrids Example: Loan Application System Intensive Example: New Orders Collaboration Vague user requirements enable hybrid BPMS tool vendors to enjoy being in the sweet spot of purchases 40
BPM Business Process Management: Kundenspezifische Evaluation von BPMS Anbietern zur Erstellung einer Longlist und einer Shortlist
Developing a Shortlist of Vendors By component model.net, J2EE, NetWeaver, proprietary By use case or business process style Guided navigation Form-driven workflow Content creation Transactional Case management By vendor groupings Infrastructure vendors Portal vendors Middleware vendors 42
Vorgehensweise Kick-off Meeting Vorstellung der Projektteams Abgrenzung des Scopes Abstimmung einer Vorgehensweise Durchführung der Interviews Festlegung der Interviewpartner und termine durch den AG Einzelinterviews mit Leitern und/oder Mitarbeitern des durch den AG definierter Bereiche Inhalt sind einerseits die Gewinnung eines Überblicks der jeweiligen Bereiche, deren Aktivitäten sowie die Identifikation der Anforderungen an eine BPM-Lösung Die ermittelten Kriterien werden abschliessend nochmals mit dem AG abgestimmt Research META Group Research unter Einbezug von Best Practice, META Analysten sowie der Research Engine Grundlage der Analyse und Ermittlung der Anbieter sind die abgestimmten Anforderungen des AG Erstellung einer Longlist mit den in Frage kommenden Anbietern Begründung und Erstellung einer Shortlist mit ca. drei Anbietern Argumentation der nicht berücksichtigten Unternehmen. Abschlussbericht Erstellung einer Abschlussdokumentation basierend auf einer META Group Opinion inkl. der Long- und Shortlist. 43
Anforderungen aus den Interviews Aus den Interviews und den weiteren Erkentnissen der META Group ergeben sich Anforderungen in folgenden Bereichen ( Kriteriengruppen ): 1. Architektur 2. Funktionalität 3. Methodik 4. Operations 5. Security 6. Vendor (Anforderungen an den Anbieter) 44
Longlist (positiv) Nr. Hersteller Produkt Bemerkungen 1 FileNet Corp. FileNet P8 Business Process Manager Dominant im Document Management (ECM) 2 3 Tibco Pegasystems Inc. StaffWare Process Suite (SPS) SmartBPM Suite (Process Commander, PegaRULES) Workflow Anbieter Entstanden aus einemcrm Package 4 5 6 Savvion, Inc. Fuego, Inc. Lombardi Software, Inc. Savvion BusinessManager FuegoBPM TeamWorks 5 Echtes "pure-play" BPMS Echtes "pure-play" BPMS Echtes "pure-play" BPMS 7 8 9 10 11 12 Vitria Technology, Inc. Vitria:BusinessWare The-I-Engineers i-engineer CommerceQuest, Inc. EnterpriseBPM Suite Sterling Commerce Sterling Integrator Fujitsu Software Corp. Fujitsu Interstage Suite (i-flow ) Global 360, Inc. (prev. eistream eistream WMS Inc., prev. Eastman Software) Historische Präsenz in EAI Lokale Schweizer Start-up-Firma Historische Präsenz in EAI Historische Präsenz in EAI Historische Präsenz in EAI Historische Präsenz in Content Management / Knowledge Management 13 Chordiant Software, Inc. Chordiant v5.6 Historische Präsent in Applikations Packages 14 Carnot AG Carnot Process Engine Echtes pure-play BPMS 45
Longlist (negativ) Nr 1 2 3 4 5 6 7 8 9 10 11 12 Hersteller/Produkt ARIS Process Platform, IDS Scheer BEA WLI (WebLogic Integration) Bisil Clear Technology IBM WSBI Intalio JBoss jbpm OpenSymphony Workflow Oracle BPEL Process Manager SAP NetWeaver SeeBeyond W4 Global Begründung Keine durchgehende BPM-Suite. Schwerpunkt ist Modellierung; hinzu kommen Simulation und Optimization. Nicht abgedeckt sind: Process Execution, Analyse und Monitoring. Genauer: Process Execution wird nur für SAP Netweaver, d.h. für die SAP-Welt unterstützt. Ältere Produktkomponente, Schwerpunkt EAI Das BPM ist eine auf das EAI aufgesetzte Java-Schicht, die informatik-orientiert ist und sich nicht gut für Business-Analysten oder Fachdienste eignet. Aus in XML abgefassten Prozessdefinitionen wird, basierend auf JSR 207 Java-Code generiert. Enj BPM Suite basierend auf Webserver und JDBC,No J2EE Tranzax BPM Suite ist eine auf die Versicherungsbranche fokussierte Rule Engine. Microsoft SQL Server,.NET Wegen nicht passender Archtektur/Infrastruktur (MQ Series) Kleine Kundenbasis Keine vollständige Funktionsabdeckung Hat einen Rich Client Schnittstellen zu ARIS IDS Scheer jbbm ist erst seit Okt 2004 bei JBoss JBoss wird (zur Zeit) sehr selten in Produktions-umge-bungen eingesetzt. Es gab noch keine Anfragen diesbezüglich. Deshalb liegen keine Research-Erkentnisse vor. Workflow nicht Model driven OSS aber nicht auf Workflow/BPM-Standards basierend. Kein voller BPMS-Ansatz Aufkauf von Collaxa, einem BPEL-basierenden Start-up. Lauffähig auf Oracle AS, WebLogic, WebSphere, JBoss. Eclipse-basierter BPEL-Designer. Brandneues Produkt, es liegen keine Erfahrungen von Volumen-Anwendern vor. Schwerpunkt auf Service-Integration, nicht Human Workflow NetWeaver Developer Studio basiert auf Eclipse, das aber nicht als Platform für SAPGUI verwendet wird (s. Abschnitt 9.3). NetWeaver als Integrationsplattpfom für non-sap-anwendungen kann (zur Zeit) nicht empfohlen werden. Tendenziell hohe Kosten. ICAN ist eine sehr umfangreiche Suite zum Bau von Composite Applications (ursprünglich EAI). Workflow-Funktionalität wurde später aufgepfropft und konzentriert sich auf die Programmierunterstütung für Java-basierten Human Workflow. Nicht gut für den Fachdienst geeignet. Weltweit gesehen eine sehr kleine Firma, Kundenbasis gering Kein voller BPMS-Ansatz 46
Bewertungsmethode Nr Hauptkriterien Erläuterung 1 2 3 4 5 6 7 Funktionsabdeckung Systemplattform User Interface Modellierung Betrieb Lokaler Support BPM-Produkt Abdeckung der BPM-Funktionalität. Gefordert sind: Process Modelling, Process Execution, Process Integration, Process Monitoring und Analyse Wünschenswert sind: Simulation und Optimierung Die Funktionsabdeckung soll in einer Produkt-Suite des Herstellers erfolgen. Eine Kombination unterschiedlicher Hersteller (Best of Breed) ist nicht gewünscht. Als Laufzeitumgebung ist ein J2EE-Application Server gefordert. Vorzugsweise BEA WLS (IBM Websphere, Oracle AS, JBoss). Als Datenbanksystem ist Oracle gesetzt. Gefordert ist ein Rich Client auf Basis von Eclipse SWT (RCP). Weiter ist für Remote User ein Thin Client gefordert (Web-Browser, HTML). Gefordert ist eine grafische Modellierung, die vom Fachbereich selbst (ohne Informatik) durchgeführt werden kann. Die Diagramm-Notation soll UML sein. Gefordert ist eine hohe Verfügbarkeit und gute Performanz. Skalierbarkeit für mehr als 100 Prozesse und mehr als 2000 User Das Produkt soll durch eine Schweizer Niederlassung vor Ort betreut werden. Das Produkt soll als eigenständiges BPM-Produkt aktiv am Markt vertrieben werden; d.h. nicht als Teil eines anderen Produktes z.b. einer Applikation (engl.: Pure-Play ). 47
Bewertungsergebnis Nr. Hersteller/Produkt 1 FileNet Corp. Pros Cons META Group Opinion o 2 Tibco/StaffWare ++ 3 Pegasystems Inc. ++ 4 Savvion, Inc. + 5 Fuego, Inc. + 6 Lombardi Software, Inc. ++ 7 Vitria Technology, Inc. o 8 I-Engine + 9 CommerceQuest, Inc. + 10 Sterling Commerce o 11 Fujitsu Software Corp. + 12 eistream o 13 Chordiant Software, Inc. + 14 Carnot AG +++ 48
Shortlist Nr. Hersteller/Produkt Bewertung Begründung 1 2 3 Carnot AG Tibco/Staffware Lombardi Software, Inc. +++ ++ ++ Moderne Technologie, gute Funktionsabdeckung, vertreten in CH/D Kleinere Kundenbasis, aber namhafte Referenzen. Sicherer Kandidat, gute geografische Abdeckung, sehr leistungsfähig. Aber nicht ganz die neueste Technologie und teuer. Neueste Technologie,. hervorragende Funktionalität Aber eine kleinere Firma in USA 49
Lessons Learned Observations: IT drives the project Little to no business value ROI case will be weak Results are unique, not shared Possible Reason: No tie to business strategy, goals, objectives Observations: BPM is reduced to EAI project Rising costs of change Possible Reason: Lack of process owner with governance authority Observations: Nothing gets implemented (trying to perfect the model delays implementing anything, or else too narrow to be of value), spending too much time on as is instead of focusing on to be Possible Reason: Scope of initial project/perfecting the model Observations: Behavior doesn t change Possible Reason: Using old metrics for a new process 50
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