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Business Process Redesign:Taming the Information Explosion
Richard Mark Soley, Ph.D.Chairman and CEO
Object Management Group, Inc.
Photo courtesy of NASA Goddard Photo and Video 2012 Lundberg Media & Object Management Group
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We live in a complex,
volatile world
Photo courtesy of NASA Goddard Photo and Video 2011 Lundberg Media
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you arehere
Photo courtesy of NASA Goddard Photo and Video 2011 Lundberg Media
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2011 Lundberg Media
digital explosion
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2009: 800,000 petabytes2020: 35 zettabytes
2011 Lundberg Media
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global connections,global complexity
2011 Lundberg Media
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untetheredempowered
2011 Lundberg Media
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2011 Lundberg Media
escalating
customerdemand
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So What is ITs Mission?
IT-led teams have consistentlyfound new ways to streamlineenterprise business processes,vastly improving operating
efficiency and reducing costs.
Corporate leaders, however, areraising the bar: they expect ITscore mission to expand from
cost-cutting to enabling revenuegeneration within a short periodof time.
EIU, December 2006
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According to recent CIO pollsfrom research firm Gartner Inc.,50% of CIOs surveyed said theynow have duties outside of coretechnology, such as helping tocraft corporate strategy .
Wall Street Journal, 20 February 2007
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Three Stories Secretary of US Agency to CIO: Fix my BlackBerry. What is the proper role of the CIO? Are we just fixing computers?
CEO of major computer hardware firm to CIO: CIO means career is over , didnt you know?
Is the CIO part of the team or just overhead?
CIO of a large Defense IT consulting firm, complainingabout CIO-focused events: why is every discussionabout business alignment?
Do other departments have trouble aligning?
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Observation:
Colgate-Palmolive no longer hasan electricity department
Google doesnt have an ITdepartment
Are you the electricity department?
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IT Knows the Enterprise
Nobody knows the wholecompany like the CIO (AndrMendes, Special Olympics)
Precise descriptions of businessprocesses are a prerequisite tounderstanding those processes.
We understand business processoptimization: streamliningprocesses, leaning processes,greening processes
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IT IS the Enterprise
Business should bedoing enterprisearchitecture, but they
wont do it so we haveto do it for them.
John Zachman
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Opportunities, Challenges,
Expectations Oh My!1. Integrated, world-class services2. Accelerated implementation of the new
3. Expanded roles & responsibilities4. Global platform
5. Culture change
6. Transform business processes7. Reduce complexity
8. Increase agility
9. Repeatable, sustainable2011 Lundberg Media
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Big Trends: Globalization
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Big Trends: Connectedness
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Big Trends: Digital Value Chains
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Big Trends: Continuous Innovation
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Big Trends: Continuous Change
"If you don't like change, you're going to like irrelevance even less.
- General Eric Shinseki, Chief of Staff, US Army.
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Big Trends: Big Problems
=
Complexity
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The CIO Mission
That Embraces: And Manages:
Create an Environment for:
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Build New CapabilitiesBe More Responsive
CustomizeBe OpenMake Business Agile
Think StrategicallyBusiness Unit Goals
Cut CostsBe More Efficient
StandardizeBe SecureMake IT Predictable
Execute FlawlesslyEnterprise Goals
The CIOs Dilemma
2011 Lundberg Media
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"Being highly responsive to our businesspartners and customers needs andcreating standardizedprocesses and technologyplatforms can seem likeconflicting goals, butdoing BOTH is key to
maximizing value . Stuart McGuigan, CIO,CVS Caremark
2011 Lundberg Media
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57% of executivessay innovation and costreduction are equallyimportant to their companys ability toachieve future growth
Source: Accenture survey of 630 U.S. and U.K.executives, Nov. 2009
Innovation & Cost Reduction
Both Key To Future Growth
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IT savvy firms are
20% more profitablethan their competitors
-MIT Center for Information Systems Research
2011 Lundberg Media
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does IT matter?How
2011 Lundberg Media
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information
2011 Lundberg Media
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Please rate how important each of the following information strategies is to your organizationsgrowth over the next 1 3 years. Please rate how well your organization is currently doing each.
Performance Gap
Source: Unlocking the Value of the Information Economy, a global survey of 1,375 executives conducted by Harvard BusinessReview Analytic Services and sponsored by Symantec 2011 Lundberg Media
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Closing the Performance GapWhat are the three most important things your organization can do to close the gap fromwhere you are today and where you want to be to make better use of information? (Selectup to three)
31Source: Unlocking the Value of the Information Economy, a global survey of 1,375 executives conducted by Harvard BusinessReview Analytic Services and sponsored by Symantec 2011 Lundberg Media
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Barriers to Leveraging InformationWhich of the following are barriers to your organization's ability to use information to growyour business? (Select all that apply)
Source: Unlocking the Value of the Information Economy, a global survey of 1,375 executives conducted by Harvard BusinessReview Analytic Services and sponsored by Symantec 2011 Lundberg Media
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We can do anything youwant; we just cant doeverything you want.
-Healthcare CIO
2011 Lundberg Media
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IT and business
view the worldthroughdifferent lenses,speak differentlanguages
2011 Lundberg Media
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Standards are important:
Example: Great Baltimore Fire
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Integration is Hard
Executive decisions, mergers & acquisitions have a way of surprising us
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One Standard?
And the cost of adaptation must be low.
Never let the engineers bring out solution N+1
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OMGs Mission
Develop an architecture, using appropriatetechnology, for modeling & distributedapplication integration, guaranteeing:
reusability of components interoperability & portability basis in commercially available software
Specifications freely available Implementations exist Member-controlled not-for-profit
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Who Are OMG?AdaptiveAtego
Boeing
BP Trends
CA Technologies
Citigroup
Cognizant
CSC
EADS
Energistics
FICOFirestar Software
Fujitsu
HCL
Hewlett Packard
Hitachi
HSBC
IBM
Japan Biological
Lockheed Martin
MicrosoftMITRE
National Archives
NEC
NIST
No Magic
Nokia
NTT DoCoMo
Northrop Grumman
OASIS
OISOracle
PrismTech
Real-Time Innov.
SAP
TCS
Tethers End
THALES
Unisys
W3C
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OMGs Focus
Three key infrastructure standards foci: Modeling (including Business Modeling) Middleware Real-time & other specialized systems
More than 20 vertical market foci: Healthcare Financial services
Robotics
Etc.
Focused working groups Business Architecture
Cloud Computing
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OMG & Modeling
Best known for key standards in modelinglanguages: UML (broad software & systems)
SysML (systems engineering) SoaML (service-oriented architectures) BPMN (business processes) CWM (data warehouses) MOF (modeling languages) UPDM (enterprise architectures)
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Business Modeling Isnt Hard
1. Receive the order
2. If accepted, fill the order
3. Ship it and send the invoice
4. Close out the order
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Why is that Important?
A permanent specification for the business process,whether its taking an order or digging ore
A process specification that can be moved fromperson to person, unit to unit, company to companyand outsourced if necessary
A process that can be metered, evaluated, tuned andupdated (a learning organization)
A process that can be reused within the company, orsold as an outsourced service (think Amazon WebServices) an opportunity for new revenue
A process can be redesigned as necessary to meet
new needs, adding value throughout the company
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Measuring BPM Maturity: BPMM
Level 1: Initial performed in inconsistent sometimes ad hoc ways
Level 2: Managed stabilizes the work within local work units in a repeatable
way Level 3: Standardized common, standard processes are synthesized
Level 4: Predictable capabilities enabled by standard processes, performance is
managed statistically Level 5: Innovating
proactive and opportunistic improvement actions seekinnovations; between the organizations current capabilityand the capability required to achieve its business
objectives
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OMGs Breadth of Standards
Besides key modeling, distributed computing& realtime/embedded standards, OMGdevelops standards in
Healthcare Financial Services Telecommunications
Government Military Logistics Manufacturing
Robotics Systems Engineering Military Comms
Smart Grid Automotive/Consumer Device Safety
these are shared, industry -specific standard business processes!
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Some Examples Cloud computing
Cofounded cloudstandards.org; focused on portable deployment tosupport many business models
Enterprise Architecture DoDAF/MODAF architecture frameworks Languages for interoperability
Military systems Both communications and C4I command/control
Civil Government Electronic records management
Skills management Telecommunications, Robotics, Healthcare, Manufacturing,
etc. Software Quality
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OMG is.
23+ years of adopted, implemented, worldwidestandards with strong liaisons to ISO and otherstandards organizations
Vertical-market focus in government, militarycomms, healthcare, finance, manufacturing, lifesciences,
Community of cloud computing adopters willing toshare experiences
Software quality, model-driven integration,certification, support for training, books
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Standards and BPM
Thats just two of a dozen standards formapping, understanding, and redesigningbusiness processes
The result is measurable, repeatable,transferable, and reusable processes
The hard part is figuring out the as -is andthe to -be worlds thats process mining
But we understanding mining dont we?
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More Steps for Companies
Recognize the value of understanding, capturing,defining and measuring your processes
Understand which certifications are critical to yourneeds re enterprise architecture and BPM
Consider corporate ability to take advantage of BPMinnovation (BPMM maturity model)
Why are so many Hitachi engineers certified in the
OCUP certification? What are so many IDS Scheer employees certifiedwith OCEB?
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Photo courtesy of NASA Goddard Photo and Video 2011 Lundberg Media
information
simplicityspeed
convergence
BPM is the key to agilityBPM knowledge is the key
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Richard Mark Soley, Ph.D.www.omg.org
soley@omg.org
responsive, sustainable, secureBPM is the key to agility
Following Up
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