Smarter Process - Trollip/Webb

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Smarter Process Strategy & Direction

Ryan Trollip & Howard Webb

Public | Copyright © 2014 Prolifics

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Agenda

Ø  Trilogy Review §  Decision-Aware Business Process Management

Ø  What is a Smarter Process? Ø  Achieving Smarter Process

§  Decisions Everywhere §  Data & Analytics in smarter processes §  Decision Modeling §  Process Modeling

Ø  Strategy for a Smarter Process §  Simplifying & Stabilizing

Ø  Industry Discussion §  Technologies and Disciplines for a Decision-Aware Business

Ø  Decision & Process Gotcha’s

2

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Ø  Leverage Decisions, Process and Analytics Ø  Affect Change Ø  Gain Business Awareness

Ø  Achieve flexibility in decisions & stability in process Ø  Improving efficiency

Ø  Smarter decisions Ø  Customer-Centric

3 Public | Copyright © 2014 Prolifics

Trilogy Review

Business Processes

Advanced Analytics

Decision Management

Delivered at the point of impact

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Smarter Process


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Reinvent Business Operations with IBM Smarter Process

IBM’s approach for reinventing business operations

§  to enable greater customer-centricity

§  in the age of mobile, social, cloud and big data

§  while driving efficiency and optimization into end-to-end processes


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Ø  Making Smarter Decisions

Ø  Better Manage Change & Adapt Faster

Ø  Become more Customer-Centric

Ø  Become more Aware of Decisions and Process

Ø  React at the Point of Impact


What is Smarter Process?

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Source: Booz and Co., 2011

Complexity stands in the way of customer-centricity

Managing complexity is a challenge in most industries

Time spent managing complexity (customer variability, performance quality and workflow efficiency) in service-centric industries has surpassed 50 percent

50%

7

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Instant At Internet speed

Broadcast Music Inc. (BMI) shortens artist onboarding time by 93%, processing 100B transactions

Seamless Interconnected & ubiquitous

Visa Europe handles cross border payments across 36 diverse currency markets

Insightful Targeted and relevant

Hospitals Contribution Fund (HCF) provides preventative heathcare options and grows its market share by 56%

In a Customer-Centric World, a Smarter Process is…


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Achieving Smarter Process


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Simple and Visible


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Decision Sources

Regulation

Competition

Industry

Policies

Business Intelligence

Stats

Modeling

Prescriptive

Predictive

Acquire Grow Retain

Predictive Customer Analytics

Predictive Threat & Fraud Analytics Monitor Detect Control

Predictive Operational Analytics

Manage Maintain Maximize

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Ø  Decisions? Ø  What product to offer? Ø  What features do I offer in the product/service?

Ø  When to repair equipment? Ø  How much to charge for the product?

Ø  When to decline a transaction?

Ø  Ask yourself?

Ø  Does your organization have a standard approach to decisions? Ø  Do you have them in a central location?

Ø  Are they auditable? Ø  Are you tracking their effectiveness?

Ø  Are you constantly improving these decisions? Ø  Are the easy to change?


Decisions are your company

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Analytics for Improvement


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Ø  Business Intelligence §  Structured OLAP techniques §  Specific answers to specific questions §  Build reports §  Not data mining or new insights

Ø  Big Data Analytics §  Generalized data exploration §  Uncover insights over structured, unstructured, semi-structured §  Tools such as Hadoop, MapReduce

Ø  Predictive Analytics §  Compliments BI §  BI used to prepare, visualize, preprocess data §  Models, predict with accuracy the next outcome

14

Big Data vs. Predictive Analytics vs. B.I.


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Predictive Analytics

§ What Problems they solve? q  Sales q  Advertising q  Operations q  HR q  Risk Management

§ Mathematical Implementation? q  Statistics q  Data Mining q  Machine Learning

§ Intended Function? q  Predictive q  Classification q  Clustering q  Decision Oriented q  Associative


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Demographic data

Transaction data

External data

Reports, KPIs, KPPs

Analyses Segments

Profiles Scoring models

Anomaly detection ...

Scoring

Capture Predict Act

Define Thresholds

Determine the level of Risk

Define List Assign weight

(points) to each indicator

... Domain

Expertise

Fraud & Threat Controlling outcomes with predictive analytics


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Analytics Trends

–  Real-time data-driven Analytics •  Changes in the population or competitive landscape

–  Aggregating distributed data •  Diverse sources, internal & external

–  Big Data •  Open source tools like

–  Hadoop for map reduce with distributed parallel processing, handles heterogeneous data

–  Mahout data mining and machine learning, clustering classification, collaborative filtering & other data mining



Operationalize Decisions

Regulation

Competition

Industry

Policies


Stats

Modeling

Prescriptive

Predictive Scoring

Decision Service

Scoring Service

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Capture Predict Act

Predictive Models Likelihood of failure based on multiple methods

Association Clustering Classification Forecasting

Production Logs

Maintenance Logs

Sensor Data

Environment Data

Performance logs

Financial Data

Business Rules Make expert knowledge explicit

Predictive Maintenance Data

Optimization Define decision optimization

Plan Use scenarios & analytics to perform resource, inventory & asset planning

Produce Scores & Recommendations

Integrate with Maintenance Planning

Execute Perform Maintenance based on optimized planning

Scoring Deploy Decision Models

Prevent Receive pro-active Maintenance recommendations

Feedback Maintenance Reports

Perform Root-Cause Analysis

Process Automation & Optimization

Automate prediction & deployment process

Process Management & Control Monitor & manage analytics process

Integrate

Operations - How is it done?



Leveraging Big Data


Stats

Modeling

Predictive

Big Data Request

Stream File

Modeler Client Modeler Server

IBM SPSS Modeler

IBM SPSS Analytic Server

Hadoop Job

Analytics

IBM InfoSphere BigInsights & Other Hadoop Distributions

Relational Database

SQL / UDF

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Ø  Model §  Models visualize, simplify and clarify business understanding

Ø  Automate §  We can automate complex decisions, processes and models §  Example of customer behavior, fraud

Ø  Manage §  Automation is great… But the more complex the more difficult to manage/change §  Specialization of systems workflow, Modeling, BRMS, CRM, ECM etc. §  Good management of decisions and process is key to flexibility and efficiency

Ø  Improve §  Analytics used to improve processes and decisions

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Trilogy Approach


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Decision Modeling


Business Processes

Advanced Analytics

Decision Management

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Ø  Empower the business with decisions Ø  Create a shared understanding Ø  Lower cost of development Ø  Speed time to market Ø  Simplify & stabilize processes Ø  Improve Quality Ø  Improve Governance Ø  Reduce Operational Cost


Benefits of Decision Modeling

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Customer Experience

Applications

Orchestration (Workflow) Services

Business System

Decision Model

Business System Business System

Dec

isio

n Lo

gic

Dep

loym

ent

Orchestration Logic layer

Application Logic Layer

The Decision Model is Technology Independent


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Speeds Time to Market


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Rule ID Rule Object Focus Conclusion subject Conclusion

1.1 Fraud Dept Account Block All non-financial transactions must be declined across all bank channels Account Fraud status Closure eligibility OK / HR

1.5 Fraud Dept Account Block All non-financial transactions must be declined across all bank channels Account Fraud status Closure eligibility OK / HR

1.8

Fraud Dept Account Block 11. A message must be displayed at account level in all front end user systems ‘Fraudulent Account – Refer to Special Investigations Dept’ for non-financial transactions Account Fraud status

Mediated message requirement OK / HR

1.10 Fraud Account Block 'The current account statement must not be printed Account Fraud status

Account statement eligibility OK / HR

1.11 Fraud Account Block 'No correspondence can be mailed to the customer

Account Fraud status

Account mailed correspondence eligibility OK / HR

2.1

Lost Card 'IF in Branch/Over the counter transaction AND Lost card is used (Swiped) THEN the transaction must initially be declined with the message "Warning - Lost card - do you wish to continue?" Note. The bank user may choose to continue or abort the transaction Card

Lost / stolen status Closure eligibility OK / SR

3.2

Stolen Card IF in Branch/Over the counter transaction AND non financial transaction (excluding Enquiries) AND Stolen card is used (Swiped) THEN the transaction must initially be declined with the message "Warning - Stolen card - do you wish to continue?" Note. The bank user may choose to continue or abort the transaction Card

Lost / stolen status Closure eligibility OK / SR

5.5 Criminal Financial Court Order Account Closure is not permitted. Unless by an authorised SID user. Note this will be achieved by the temporary removal of the inhibit by SID Account

Financial court order status Closure eligibility OK / HR

6.8 Federal State Arrestment Order 'IF a Federal State Arrestment is in place THEN an account must not be closed Account

Federal state arrestment order status Closure eligibility OK / HR

7.1 UN Sanction Account Closure is not permitted. Unless by an authorised SID user. Note this will be achieved by the temporary removal of the inhibit by SID Account

UN sanctions status Closure eligibility OK / HR

8.2

Missing Address Flag IF a customer's account is locked because of Missing Address OR a customer's card is locked because of Missing Address THEN a message must be displayed on mediated systems Note: a mediated system is defined as one which is operated by an authorised bank user (e.g. a bank employee or an agent acting on behalf of bank)This system may or may not be in the presence of an bank Customer. Customer

Missing Address status

Mediated message requirement OK / HR

Copyright ©2014 SAP. Reprinted with permission.

How it’s done today?


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82 rules

IF … AND mixed with

IF … OR

Two rule types -

decisions & procedural

rules

Decision – closure

eligibility

Procedural rules – for statements

and soft reject

messages

Posting locks –

accounts, cards

Customer inhibits (Missing Address)

E-products etc. in

continuation …

Long free text rule descriptions

Rules with different focuses – fraud, lost/stolen cards, Federal State Arrestment orders, UN sanctions …

Creates Shared Understanding

Verdict: Rich in data but poor in information – due to lack of top-down structure



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Entropy Increases


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Account Closure

Simulation Eligibility

Account Closure Simulation Eligibility_________________

Account Closure Simulation Lock EligibilityAccount Closure Simulation Pending Items EligibilityAccount Closure Simulation linked e-‐product capability

-‐ -‐ -‐ -‐ -‐ -‐ -‐ -‐ -‐ -‐ -‐ -‐ -‐ -‐ -‐ -‐Account Closure Simulation Account StatusAccount Closure Simulation Account Closure Date

Account Closure Simulation Lock Eligibility

_________________Account Closure Simulation Customer lock Status EligibilityAccount Closure Simulation Account Lock Status EligibilityAccount Closure Simulation Card Lock Status Eligibility

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Account Closure Simulation Customer Lock Status Eligibility_________________

-‐ -‐ -‐ -‐ -‐ -‐ -‐ -‐ -‐ -‐ -‐ -‐ -‐ -‐ -‐ -‐Customer Lock Status TypeCustomer Lock Lock Document StatusAccount Closure Simulation Channel Soft Reject Capability

Account Closure Simulation Account Lock Status Eligibility _________________

-‐ -‐ -‐ -‐ -‐ -‐ -‐ -‐ -‐ -‐ -‐ -‐ -‐ -‐ -‐ -‐Account Lock Status TypeAccount Lock Limit ValueAccount Lock Lock Document StatusAccount Closure Simulation Channel Soft Reject Capability

Account Closure Simulation Card Lock Status Eligibility

_________________

-‐ -‐ -‐ -‐ -‐ -‐ -‐ -‐ -‐ -‐ -‐ -‐ -‐ -‐ -‐ -‐Card Lock Status TypeCard Lock Lock Document StatusAccount Closure Simulation Channel Soft Reject Capability

Account Closure Simulation Pending Items Eligibility

_________________

-‐ -‐ -‐ -‐ -‐ -‐ -‐ -‐ -‐ -‐ -‐ -‐ -‐ -‐ -‐ -‐Pending Item TypePending Item Value

Linked e-‐Products Orphan Status in Relation to Account Closure

_________________Linked e-‐Products Orphan Status in Relation to Sole Account ClosureLinked e-‐Products Orphan Status in Relation to Joint Account Closure

-‐ -‐ -‐ -‐ -‐ -‐ -‐ -‐ -‐ -‐ -‐ -‐ -‐ -‐ -‐ -‐

Linked e-‐Bonds Orphan Status in Relation to Account Closure

_________________Linked e-‐Bonds Orphan Status in Relation to Sole Account ClosureLinked e-‐Bonds Orphan Status in Relation to Joint Account Closure

-‐ -‐ -‐ -‐ -‐ -‐ -‐ -‐ -‐ -‐ -‐ -‐ -‐ -‐ -‐ -‐

Linked e-‐Products Orphan Status in Relation to Sole Account Closure

_________________-‐ -‐ -‐ -‐ -‐ -‐ -‐ -‐ -‐ -‐ -‐ -‐ -‐ -‐ -‐ -‐

Additional Open Current Accounts held by Account Holder CountLinked e-‐Products in Relation to Account Closure Count

Linked e-‐Products Orphan Status in Relation to Joint Account Closure

_________________-‐ -‐ -‐ -‐ -‐ -‐ -‐ -‐ -‐ -‐ -‐ -‐ -‐ -‐ -‐ -‐

Additional Open Joint Current Accounts held by Account Holders CountAdditional Open Current Accounts held by Account Holder 1 CountAdditional Open Current Accounts held by Account Holder 2 CountLinked e-‐Products held jointly by both members in Relation to Joint Account Closure CountLinked e-‐Products not held jointly by both members in Relation to Joint Account Closure Count

Linked e-‐Bonds Orphan Status in Relation to Joint Account Closure

_________________-‐ -‐ -‐ -‐ -‐ -‐ -‐ -‐ -‐ -‐ -‐ -‐ -‐ -‐ -‐ -‐

Additional Open Joint Accounts Held by Same Account Holders CountLinked e-‐Bonds Held Jointly by Both Members in Relation to Joint Account Closure CountLinked e-‐Bonds Not Held Jointly by Both Members in Relation to Joint Account Closure Count

Linked e-‐Bonds Orphan Status in Relation to Sole Account Closure

_________________-‐ -‐ -‐ -‐ -‐ -‐ -‐ -‐ -‐ -‐ -‐ -‐ -‐ -‐ -‐ -‐

Additional Open Sole Accounts held by Account Holder CountLinked e-‐Bonds Count in Relation to Account Closure Count

Account Closure Simulation linked e-‐product capability_________________

Linked e-‐Products Orphan Status in Relation to Account ClosureLinked e-‐Bonds Orphan Status in Relation to Account Closure

-‐ -‐ -‐ -‐ -‐ -‐ -‐ -‐ -‐ -‐ -‐ -‐ -‐ -‐ -‐ -‐

Account Closure







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Account Closure







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CONNECT WITH US: Copyright ©2014 SAP. Reprinted with permission.

Account Closure







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_________________



_________________




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Account Closure Simulation Eligibility

Row ID

Rule Pattern

Message Class 1

Message

1 1 is in{Active, not yet used; Active, used}

Is Eligible is eligible IsContract Present Date

is in {Close, Close and log}

is Eligible



is soft reject is Soft reject


Is Not Eligible is Not EligibleThere is a lock on the account &1 which

prevents account closure


Is Soft Reject is eligible IsContract Present Date

is in {close, Close and log, Soft reject}

is Soft Reject There is a lock on the account &1

5 3 is in{In Release, Process, Created; Being Terminated; Terminated}

is Not Eligible Account &1 is already terminated


is Not eligible is Not EligibleClosure not possible -‐ Outstanding

Pending Items


Is NotContract Present Date

is Not EligibleSpecified Value Date &1 should be the

same as A/C Presence date &2

Conclusion MessagesAccount Closure

Simulation Pending Items

Account Closure Simulation Account

Closure Date

Account Closure Simulation linked e-‐product capability

Account Closure Simulation Account Status

Account Closure Simulation Lock

Eligibility

Conditions





Account Closure







-‐ -‐ -‐ -‐ -‐ -‐ -‐ -‐ -‐ -‐ -‐ -‐ -‐ -‐ -‐ -‐






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Row ID

Rule Pattern

Message Class 1

Message Class 2

1 1 is Eligible is Eligible is Eligible is eligible2 1 is Soft Reject is not Not Eligible is not Not Eligible is Soft Reject Lock on customer &1 Do you wish to proceed?3 1 is not Not Eligible is Soft Reject is not Not Eligible is Soft Reject Account lock &1 Do you wish to proceed?4 1 is not Not Eligible is not Not Eligible is Soft Reject is Soft Reject Lock on Card &1 Do you wish to proceed?5 2 is Not Eligible is Not Eligible Closure not possible due to customer lock &16 3 is Not Eligible is Not Eligible Closure not possible due to account lock &17 4 is Not Eligible is Not Eligible Closure not possible due to card lock &1


Eligibility

s Conclusion MessagesAccount Closure

Simulation Customer lock

Account Closure Simulation Account Lock





Account Closure







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Row ID

Rule Pattern

Message Class 1

Message Class 2

1 1is Not in

{Lost Card, Stolen Card}

is Eligible

2 2 Is in{Lost Card, Stolen Card}

Is Active Is Nucleus is Not Eligible Closure not possible -‐ Lock &1


Is Active Is BOSS is Soft RejectCard Lock&1 on account &2 Do

you wish to proceed?

4 3 Is in{Scheduled, Inactive, Closed}

is Eligible

5 4Is Not in

{BOSS,Nucleus}

is Not EligibleYou cannot close an account in

channel &1

Conditions Conclusion Messages

Card Lock Status Type

Account Closure Lock Status

Account Closure Channel

Account Closure

Simulation



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Account Closure







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Row ID

Rule Pattern

Message Class 1

Message



is in {Close, Close and log}

is Eligible



is soft reject is Soft reject


Is Not Eligible is Not EligibleThere is a lock on the account &1 which

prevents account closure


Is Soft Reject is eligible IsContract Present Date

is in {close, Close and log, Soft reject}

is Soft Reject There is a lock on the account &1

5 3 is in{In Release, Process, Created; Being Terminated; Terminated}

is Not Eligible Account &1 is already terminated


is Not eligible is Not EligibleClosure not possible -‐ Outstanding

Pending Items


Is NotContract Present Date

is Not EligibleSpecified Value Date &1 should be the

same as A/C Presence date &2

Conclusion MessagesAccount Closure

Simulation Pending Items

Account Closure Simulation Account

Closure Date

Account Closure Simulation linked e-‐product capability

Account Closure Simulation Account Status


Eligibility

Conditions



Row ID

Rule Pattern

Message Class 1

Message Class 2

1 1is Not in

{Lost Card, Stolen Card}

is Eligible


Is Active Is Nucleus is Not Eligible Closure not possible -‐ Lock &1


Is Active Is BOSS is Soft RejectCard Lock&1 on account &2 Do

you wish to proceed?

4 3 Is in{Scheduled, Inactive, Closed}

is Eligible

5 4Is Not in

{BOSS,Nucleus}

is Not EligibleYou cannot close an account in

channel &1

Conditions Conclusion Messages

Card Lock Status Type

Account Closure Lock Status

Account Closure Channel

Account Closure

Simulation


Row ID

Rule Pattern

Message Class 1

Message Class 2

1 1 is Eligible is Eligible is Eligible is eligible2 1 is Soft Reject is not Not Eligible is not Not Eligible is Soft Reject Lock on customer &1 Do you wish to proceed?3 1 is not Not Eligible is Soft Reject is not Not Eligible is Soft Reject Account lock &1 Do you wish to proceed?4 1 is not Not Eligible is not Not Eligible is Soft Reject is Soft Reject Lock on Card &1 Do you wish to proceed?5 2 is Not Eligible is Not Eligible Closure not possible due to customer lock &16 3 is Not Eligible is Not Eligible Closure not possible due to account lock &17 4 is Not Eligible is Not Eligible Closure not possible due to card lock &1


Eligibility

s Conclusion MessagesAccount Closure

Simulation Customer lock

Account Closure Simulation Account Lock





Improve Quality

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Ø  Modeling associated with single decision Ø  Can be associated with a business Objective, goals & metrics Ø  Governance can be implemented at the business level


Improve Governance

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Ø  Better Compliance

Ø  Reduce Operational Risk

Ø  Development and Deployment Cost Reductions

Ø  Decision Maintenance Cost Reductions

Ø  Maintenance Cost Reductions


Reduce Operational Costs


The Decision Connects the Business Architecture

Use Case

Business Motivation Model

Decision Model

Vocabulary Models: • Glossary/Semantic • Object • Logic Data

Process Model

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Process Modeling


Business Processes

Advanced Analytics

Decision Management


Process Innovation for Intelligent Operations Executive!Management!

Customer!Service!

Risk ManagementTeams!

Finance!and Ops!

Account Administration!

What to do.

How to do it.

When to do it.

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Ø  1) Scope First, then Model Ø  2) Rule of Seven Ø  3) Activity Granularity Ø  4) Activity Description Ø  5) Inputs/Outputs Ø  6) The System Lane


Guidelines for Better Modeling

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Controls/ Constraints

Enablers

Out

puts

Inputs

Business Process Milestones/

Activities

Things that govern or dictate how a process

performs

Things that enable a

process to be performed

Things produced

by a process

Things that

initiate a process

(Business Rules, Regulatory Requirements, Laws, etc.)

(Work Products, Transformed Data)

(Business Events/ Triggers, Data, Inputs from other Processes)

(Roles, Systems, Organizations, etc.)

Always Start with Process Scoping

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Ø  Business Process Modeling Notation (BPMN) Ø  Industry standard Ø  Mature notation Ø  Supported by BlueWorks Live Ø  Common language across the enterprise


Modeling Business Processes

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(2) Rule of Seven

Limit any view to no more than 7 or 8 activities for good fit.

Select Candidate

Inform recruiter

Establish compensation

package

Establish start date

Background Check

Criminal record check

Drug screen

Release Candidate from Process

Review results

Offer

Create offer letter

Transmit offer letter

Accept offer

Add Candidate To HR Records

Input employee information into

database

Request equipment

Request workspace

Request access badge

Set employee status to active

Orientation

New hire orientation class

Benefits overview class

Provide orientation cd

Watch orientation cd

Complete forms

Begin Work

Meet manager

Obtain access badge

Obtain equipment

Go to workspace

43

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(3) Activity Granularity Ø  Remember that an Activity

§  Is a step in a process that can be implemented as a sub-process or a task.

§  Definition in a Process Model should stop at task granularity.

§  A task activity is a unit of work that a single participant (human or system) starts with the intent to complete.

Purchase Groceries

44

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(3) Activity Granularity – Scope Ø  Overloaded Milestone

(Rule of Seven) Ø  Dissimilar in Scope Ø  Too Granular in Detail

Ø  Model What not How

Plan Party

Invite Guests

Prepare Menu

Get Veggies

Get Cake

Get Ice Cream

Get Chips & Dip

Checkout

Pay with AMEX

Drive Home

Put Veggies in Fridge

Put Ice Cream in Freezer

Host Party

Welcome Guests

Serve Snacks

Serve Cake & Ice Cream

Play Games

Open Gifts

Play Games

Clean Up

Clean the House

Send Thank You Cards

Get Veggies

Get Cake

Get Ice Cream

Get Chips & Dip

Checkout

Pay with AMEX

Drive Home

Put Veggies in Fridge

Put Ice Cream in Freezer

Open Door

Set Ice Cream on

Shelf

Close Door

§  Where do we stop?

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(3) Activity Granularity – Scope Activities should be similar in scope at each level.

Plan Party

Invite Guests

Prepare Menu

Host Party

Welcome Guests

Serve Snacks

Serve Cake & Ice Cream

Play Games

Open Gifts

Play Games

Clean Up

Clean the House

Send Thank You Cards

Purchase Groceries

Will a single person complete the activity?

Will the activity be started with the intent to finish?

Is the duration similar to others at this level?

Is the goal or outcome an input for the next activity?

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(3) Activity Granularity – String of Pearls Pattern Combine into a single Activity: Send Offer Letter

Before 3 serial activities for Hiring Manager

•  Review Results •  Create Offer Letter •  Transmit Offer Letter

After 1 activity for Hiring Manger

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(3) Activity Granularity – Flow Line Patterns Ø  Generally should not flow backward to a previous milestone. Ø  Generally should not skip a Milestone. Ø  Should avoid looping back to a previous step to repeat an activity

(or sub-process) later in the process—repeat/re-use the activity instead.

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(4) Activity Description – Activity Naming

Activity Name = Action + Entity Ø  [action verb] + [business object] Ø  Avoid vague action verbs such as Process and Perform [Step] Ø  Use action verbs that indicate a result/output Ø  Use specific terms recognizable by the business users (even if they

might be vague to others) and describe/define the terms in the description if necessary.

Perform Review

Approve Contract Terms

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(4) Activity Description – User Story

Ø  Capture a 2-5 sentence description for each activity. §  As a [participant] I need to [do something] so that I can [create business

value].

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(5) Inputs/Outputs

Ø  Define with business entities from the business object model Ø  Avoid specifying state for the entity (eg. signed contract) Ø  Avoid specifying other qualifiers that are properties of the entity

Candidate Job Description Comp. Details Offer Letter

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(5) The System Lane

Ø  Define only one system lane. Ø  Contains activities performed by the BPMS or orchestrated by the

BPMS to be performed by an external system. Ø  Should not contain human activities. Ø  Avoid the string of pearls pattern.

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Strategy for Smarter Process

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The Essential BPM Capabilities

Executive!Management!

Customer!Service!

Risk ManagementTeams!

Finance!and Ops!

Account Administration!

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Modeling a Process

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Ø  Decision Identification/Creation

Ø  Decision Modeling

Ø  Decision Optimization

Ø  Decision Automation

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Decision Management - Discipline Vs. Technology

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Process Simplification

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Ø Complexity leads to

§ Us doing the wrong things § Losing sight of the customer § The customer losing interest in us

“Simplicity is the ultimate sophistication” Leonardo da Vinci

Ø  Simplifying business processes means enabling and

managing business decisions q  Extract business rules from business processes q  Encapsulate business rules in decision models q  Enable ownership of processes and decisions

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Simplify Business Processes

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Complexity & Change

“Change is linked to complexity. Complexity increases both when the rate of change increases and when the amount of things that

are changing around us increase.”

Forecasting the Growth of Complexity and Change - Theodore Modis

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Simplifies Business Process

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Option 3

Decision Model Diagram

Process Model

is Low is Good = "A"is Low is Bad = ?is High is Good = ?is High is Bad = ?

Conditions Conclusion

Person's DebtPerson's Employment

HistoryPerson's Credit

Rating

Decision Rule Family Table

Additional Conditions

Additional Rows


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Before Decision Models

After Decision Models


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Process Complexity

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Process Simplicity

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Ø  Limited resources, Prioritize § Which process to improve? Back to Metrics… § Customer centricity, customer experience

Ø Find the Low hanging fruit § Show Business value, ROI § Using Objective vs. Subjective - Business analytics

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But, Where to Start…

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Ø  Take swift and informed action Ø  Show return and business value quickly

q  Quick wins are essential

Ø  Don’t fall into analysis paralysis and don’t get bogged down on ‘future state’ debates

Ø  You don’t have to boil the ocean…Think big, act small Ø  Focus on the greatest constraint based on your business objectives

q  Theory of Constraints

‘The Goal’ – Eli Goldratt

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Take Action

But, it all starts with Models…

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Next Steps

Ø  Discovery Workshop

Ø  Modeling Workshop

Ø  BPM & Decision Management Readiness Assessment

Ø  2 Day BPM Basics

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Ø  Governance Ø  Process/Decision Ownership Ø  Measurements/Metrics Ø  Scope (Boiling the Ocean) Ø  Architecture Best Practices Ø  Testing & Simulation Ø  Culture Ø  Business Participation & Ownership Ø  Methodology Ø  Point Solutions Ø  ???

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11 Gotcha’s of BPM

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Ryan Trollip

practice director, decision management

prolifics | office: (646) 380-2895 | mobile: (774) 641-3666

[email protected] | yahoo IM: rtrollip_prolifics

Howard Webb practice director, advisory & consulting prolifics | office: (646) 380-2948| mobile: (314) 602-3341 [email protected] | yahoo IM: hwebb_prolifics

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Contact Information

Documents

Smarter Process - Trollip/Webb