Identifying the right-grained services is important to lead the successful service orientation because it has a direct impact on two major goals: the composability of loosely-coupled services, and the reusability of individual services in different contexts. Although the concept of service orientation has been intensively debated in recent years, a unified methodic approach for identifying services has not yet been reached. In this paper, we suggest a formal approach to identify services at the right level of granularity from the business process model. Our approach uses the concept of graph clustering and provides a systematical approach by defining the cost metric as a measure of the interaction costs. To effectively extract service information from the business model, we take activities as the smallest units in service identification and cluster activities with high interaction cost into a task through hierarchical clustering algorithm, so as to reduce the coupling of remote tasks a...