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© 2006 IBM Corporation IBM Software Group IBM Process Improvement Workshop (PIW) Overview Quick Reference

© 2006 IBM Corporation IBM Software Group IBM Process Improvement Workshop (PIW) Overview Quick Reference

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Page 1: © 2006 IBM Corporation IBM Software Group IBM Process Improvement Workshop (PIW) Overview Quick Reference

© 2006 IBM Corporation

IBM Software Group

IBM Process Improvement Workshop (PIW)

Overview Quick Reference

Page 2: © 2006 IBM Corporation IBM Software Group IBM Process Improvement Workshop (PIW) Overview Quick Reference

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Activities Establish process boundaries and link the process to business goals and benefits Model the activities that make up the current “As Is” process including decisions,

failure points and exception paths Document resources, roles, along with duration and revenue/cost values. Identify changes to the process that would result in an improved, workflow-and/or

services-enabled alternative and model the future “To-Be” process Develop simulation cases and perform static and dynamic simulation analysis Discuss Key Performance Indicators (KPIs) and implementation attributes

Deliverables “As Is” and “To Be” simulation results and comparative reports, process diagrams

Participants Customer: LOB executive sponsor, business process SMEs, IT architects IBM: Process modeling specialist, technology specialists, Industry SME

A 2-4 day educational and problem-solving work session during which we document a current business process,

define a high level technology-enabled alternative process, and compare the two using WebSphere Modeler’s

advanced simulation capability

WebSphere Process

Improvement Workshop

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WebSphere Process Improvement Workshop (PIW)

Description

A 2-4 day engagement designed to document the benefits of an improved business process and to demonstrate the value of the WebSphere Business Modeler and the IBM software portfolio. During the workshop a limited-scope current-state model is developed and compared to one or more future-state alternatives enabled through IBM software.

Duration Cost Customer Sponsor

With Customer: 2 – 4 daysTotal: +/- 1 week

No-charge, Est. value = $25K-$50K

LOB executive

Objectives

Customer/IBM

Model, analyze and improve a limited-scope business process using WebSphere Business Modeler to develop an improved understanding of modeling best practices including simulation and dynamic analysis.

When to UseCustomer has process improvement initiatives planned or underway and funded, or an active Six Sigma program

Client Deliverables

• Current-state and future-state business process models• High-level solution architecture• Business justification for the investment

Next StepsIf a more elaborate business case is needed to justify investment, then a Business Value Assessment, TCO or more detailed architecture workshop can be conducted.

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Highlights

IBM WebSphere SOA and BPMEnabling Six

Sigma

Drag and drop speeds model development

Visio import saves time, extends capability, minimizes rework

Modeler repository enables workload to be divided

Process model and data repository becomes rich basis for improvement

Drag and drop speeds model development

Visio import saves time, extends capability, minimizes rework

Modeler repository enables workload to be divided

Process model and data repository becomes rich basis for improvement

Swimlane editor, classifiers, color coding allows a single model to be viewed, shared and edited from different perspectives

Simulation capability, including exception path analysis, enables problems to be understood and impact more accurately determined

Swimlane editor, classifiers, color coding allows a single model to be viewed, shared and edited from different perspectives

Simulation capability, including exception path analysis, enables problems to be understood and impact more accurately determined

Dynamic analysis enables current- and future-state alternatives to be evaluated in multiple ways

WebSphere Publisher enables feedback and publishes documentation

Technical attributes may be assigned for seamless IT handoff (BPEL, UML)

Dynamic analysis enables current- and future-state alternatives to be evaluated in multiple ways

WebSphere Publisher enables feedback and publishes documentation

Technical attributes may be assigned for seamless IT handoff (BPEL, UML)

Business measures/KPI are defined by business users

WebSphere Business Monitor provides real-time management and historical analysis capability

Runtime data may be imported to set up next cycle

Components may be reused to design new processes

Business measures/KPI are defined by business users

WebSphere Business Monitor provides real-time management and historical analysis capability

Runtime data may be imported to set up next cycle

Components may be reused to design new processes

Six Sigma Improvement Method

Page 5: © 2006 IBM Corporation IBM Software Group IBM Process Improvement Workshop (PIW) Overview Quick Reference

© 2006 IBM Corporation

IBM Software Group

EXAMPLE Process Modeling Workshop

(Based on a real engagement with a Retail customer on In-Store Workflow)

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Business Objectives

To increase productivity and efficiency of in-store employees by more effectively managing store workflow and use of data.

To capture lost margin and increase profit by Making sure that product is out on the shelves when space is

available (discontinued items may remain in the backroom even with shelf space available; eventually these are marked down to clearance-level pricing)

Improving in-store employee productivity and right-sizing staff levels

Decreasing the time it takes new employees to be productive through managed workflow and task lists

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Process Modeling Workshop Activities

1. Provide WebSphere capabilities overview Business Modeler and Monitor capabilities

WebSphere Process Server and Integration Developer capabilities

2. Review the high-level, current-state process and environment Project goals and objectives, potential benefits

In-store activities and applications

3. Develop the current-state process model Roles and resources, inputs/outputs

Activities, time estimates

Decisions including Fill need and Fill Types

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Process Modeling Workshop Activities (continued)

4. Sketch the solution architecture Workflow components including ability to monitor and manage work lists

Task prioritization, assignment, and override requirements

Use of application data and event triggers to build (prioritized) work lists including suggested Fill Types

5. Create a draft future-state process model Revised, simplified decision steps

Reduced cycle times and improved overall efficiency

Load base data for further analysis and simulation

6. Discuss findings and agree on next steps

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Process Modeling WorkshopCurrent-state Model (at the store)

Current-state Issues• Employee work inefficiently, tasks take longer to

complete (less time with customers)• Potential for lost profit – Discontinued items remain

in the backroom with shelf space available

Employee uses Plan-o-gram to move from aisle to aisle where

they replace Header Labels and determine shelf fill requirements

for each product.

Employee uses Plan-o-gram to move from aisle to aisle where

they replace Header Labels and determine shelf fill requirements

for each product.

Employee determines Fill Type based upon what they can observe

and with a limited amount of product. Best Fill Type decisions

are not always made.

Employee determines Fill Type based upon what they can observe

and with a limited amount of product. Best Fill Type decisions

are not always made.

The current in-store process leaves decision-making to the employee with limited data…

An employee typically works one type of task at a

time, cycling repeatedly through the store

An employee typically works one type of task at a

time, cycling repeatedly through the store

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Process Modeling Workshop

Potential Areas of Improvement Consolidate / Eliminate Tasks

Maximize the use of Parallel paths

Increase probability of most desirable paths

Reduce task durations

Modify resource requirements

Improve the use of data and information

Automate tasks or sub-processes

Implemented in the To-Be model

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Process Modeling WorkshopFuture-state Macro Model

In-store applications generate individual task lists which are then passed to the corporate

workflow management solution

In-store applications generate individual task lists which are then passed to the corporate

workflow management solution

1

Process verifies that all tasks lists have been received (overnight) from each

store before creating prioritized Master Task Lists. Events during store hours

can trigger changes in the list.

Process verifies that all tasks lists have been received (overnight) from each

store before creating prioritized Master Task Lists. Events during store hours

can trigger changes in the list.

2

Data from the store applications are used, in combination with a set of rules,

to prioritize each store's master Task List (e.g. Plan-o-gram information is used togroup activities by location in the store).

Data from the store applications are used, in combination with a set of rules,

to prioritize each store's master Task List (e.g. Plan-o-gram information is used togroup activities by location in the store).

3

Role-based task lists are then pushed back down to store devices for

completion. Higher-level event-driven metrics are used by LOB to manage the

process through Monitor dashboards.

Role-based task lists are then pushed back down to store devices for

completion. Higher-level event-driven metrics are used by LOB to manage the

process through Monitor dashboards.

4

The Future-state process manages and monitors store workflow to improve efficiency…

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Process Modeling Workshop – Future-state Model

Application suggests Fill Type to the employee based upon

inventory data and promotions/product status

information

Application suggests Fill Type to the employee based upon

inventory data and promotions/product status

information

Future-state Benefits• Employee work more efficiently, tasks take less time to

complete• Improved use of application and in-store data results in

increased profit (discontinued items rarely remain in the back room with shelf space available)

• Improved ability to detect and respond to changing conditions

Employee indicates Task complete and moves to next in priority sequence (likely at same Plan-o-gram location)

Employee indicates Task complete and moves to next in priority sequence (likely at same Plan-o-gram location)

Workflow enabled steps in red

The employee works from a prioritized Task List… The number of times that the employee makes Fill Type

decisions is minimized

The number of times that the employee makes Fill Type

decisions is minimized

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Proposed architectural approach

The architecture to implement the store task optimization system would be built on the IBM Service Oriented Architecture foundation Events trigger business processes which would perform the work list

analysis based on rules and event correlation Business process and integration capabilities in the IBM SOA would

be utilized to examine existing in store application data stores and generate events

The result would be an optimized work list presented to in-store employees, on existing devices

The system would also utilize the monitoring and analytical capabilities of the IBM SOA to track the execution of in-store work against store results

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Task lists are worked by Team members using

handheld devices which update the Task Manager

High-level architectural component diagram (draft)

Gather lists from in-store applications

Create prioritized

lists

Distribute task lists

Event DB

Monitor dashboards provide insight, allow adjustment

Correlate events, apply

rules

Update event database

Cor

pora

teS

tore In-store Applications

Update results

Create tasks list

Application

Event DB

In-store Task

Manager

1

2

3

4

5

Task Optimization Process

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Architectural discussion items

What would the Task Optimization process look like and what services and information would be required to execute it?

How will existing, non GUI, in-store devices be handled?

How complicated are the business rules used to generate the consolidated/prioritized task lists?

How do we manage the delivery and presentation of the Task List (XML format) to the employees in the store?

How would the collection of tasks that would be assigned to employees be managed (roles)?

How will the in-store applications be made aware of Task List completion prior to generating the next day’s list?

How are tasks overridden and accounted for by the process?

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Recommended next steps

2- to 3-day Architectural workshop to further develop the required solution architecture Address the discussion items on the previous slides

Determine requirements for In-store Task Manager

Identify reusable business services and solution components

Jointly develop a requirements document for a limited-scope pilot that would test the feasibility of the solution

Develop and Statement of Work for a go-forward project

Page 17: © 2006 IBM Corporation IBM Software Group IBM Process Improvement Workshop (PIW) Overview Quick Reference

© 2006 IBM Corporation

IBM Software Group

Customer References and Successes

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IBM helps Utility Company meet compliance deadline & save money

Solution: IBM Business Integration Modeler, WebSphere Business Integration Server, WebSphere Integration Monitor

Result: The company implemented a Business Process Nervous System in three months' time, including modeling and automation of first processes.They were able to implement medium to-complex integrations at a rate of one per week meeting the deadline specified by the Belgian government

Challenge: Maintain leadership in an increasingly competitive European energy market by implementing a Business Integration system that enabled Electrabel to change existing and implement new business processes quickly and efficiently & meet compliance guidelines.

Airbus anticipatesAirbus anticipates

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IBM helps Financial Services Provider save 11M$ per year with existing processes.

Solution: IBM Business Integration Modeler & IBM Business Integration

Result: Three Parallel Projects incorporating 15 processes, 100+ activities and 2000+ workstations resulted in 10 – 40% process improvement in the Personal and Corporate Trust departments and realized a significant reduction in processing time in the Annuities department. Achieved an overall savings of $11M.

Challenge: A competitive Financial Services market required Wachovia to implement a set of completely integrated investment banking, brokerage and asset management processes to reduce costs and increase efficiency and secondary initiative to achieve a merger with best of breed business processes..

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IBM helps Financial Services Provider save 4M$ per year with an existing process

Solution: IBM Business Integration Modeling & IBM Business Integration

Result:The company cut its labor and paper-intensive post-closing mortgage process time by an average 53 percent while achieving a 34 percent increase in efficiency and a realized estimated annual savings of $4 million.

Challenge: Principal Residential Mortgage Inc. needed to streamline operations to keep up with competition and consumer demand. They needed a way to understand how much volume the new system could handle before bottlenecks arose and where costs could be trimmed