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CORPORATE EXECUTIVE BOARD® NOVEMBER 2007IT PRACTICE KEY FINDINGS

Enterprise Workflow Management

© 2007 Corporate Executive Board Catalog No.: CIO5648477

KEY QUESTIONS What is enterprise workflow

management? What are the benefits of

implementing WfMS? What are the risks associated with

WfMS deployment? What are the implementation

strategies for deploying WfMS? Which vendors offer business rules

engine solutions, and what functionality do they typically include?

TABLE OF CONTENTS Overview 2

Implementation Benefits 4

WfMS Implementation Risks 5

WfMS Implementation Process 6

Comparative Feature Analysis 10

Vendor Profiles 11

VENDORS PROFILED

EXECUTIVE SUMMARY Organizations typically deploy workflow management systems (WfMS) to define, manage, distribute, and monitor work as it progresses through pre-defined business processes, thereby enabling the organization to operate efficiently and collaboratively.1 Enterprise workflow management enables organizations to integrate multiple applications and offers collaboration between staff and multiple departments. Implementation of a WfMS enables organizations to re-evaluate the effectiveness of business processes and re-design the business processes.2 WfMS typically offers the following features: Process definition Simulation Task Initiation and Control Role-based decision making Document routing Worklist Task automation Event notification Process monitoring Real-time information access Tracking and logging activities Administration and security

This report profiles the following vendors offering WfMS: IBM Oracle TIBCO Pegasystems Lombardi Solutions Advantys Quask

RESEARCH METHODOLOGY The information contained in this issue brief was researched using secondary source search engines such as Lexis/Nexis and Factiva, IT journals such as InformationWeek and Network World Magazine, and company Web sites.

ENTERPRISE WORKFLOW MANAGEMENT PAGE 2 OVERVIEW

Organizations are Investing in Workflow Management Systems to Increase the Efficiency of Manual

Processes by Automating How Work is Performed Organizations typically adopt workflow management to improve the performance of business processes by monitoring the present, analyzing the past, and planning future business processes improvements. Organizations typically deploy workflow management systems (WfMS) to define, manage, distribute, and monitor work as it progresses through pre-defined business processes, thereby enabling the organization to operate efficiently and collaboratively.3 Enterprise workflow management enables organizations to integrate multiple applications and offers collaboration between staff and multiple departments. Implementation of a WfMS enables organizations to re-evaluate the effectiveness of business processes and re-design the business processes.4

Key Phases in a Workflow Lifecycle The workflow lifecycle typically includes the following phases:

Phases of Workflow Lifecycle

Phases Description

Goal Specification and Analysis

Analyzes the project goals, environment for WfMS, and organizational structures and rules for WfMS.

Process Design Designs the business process structure, workflow model, and resource allocation for the process execution.

Process Implementation Integrates WfMS with multiple applications. Defines the access rights and implements security mechanisms for resource database.

Process Enactment

Notifies, selects, and activates pending activities to internal process participants through a work list. Creates single instances of the workflow model and coordinates with workflow enactment services.

Re-assigns activities to internal process participants, if processing time exceeds pre-defined limits or if exceptions occur.

Process Monitoring Monitors performance of WfMS and metrics such as length of work queues, the idle time of the resource, and the wait time of pending activities.

Process Evaluation Evaluates workflow to identify logic errors and inefficiencies by evaluating audit logs which maintain the history of workflow components.

Simulation Simulates workflow instance with sample data to verify the desired output

from the system, and resource allocation using past performance information as simulation parameters.

Source: Michael Zur Muehlen, “Organizational Management in Workflow Applications – Issues and Perspectives,” BPM Research Web site, 2003.

ENTERPRISE WORKFLOW MANAGEMENT PAGE 3

Implemented Processes

Measures for Improvements

Process Metrics

Measurements

Metrics, Targets

Process Metrics

Export to Reporting Applications

OVERVIEW (CONTINUED)

Workflow Lifecycle

The following figure highlights multiple phases in a workflow lifecycle and the type of information provided to the next phase: Source: Michael Zur Muehlen, “Organizational Management in Workflow Applications – Issues and Perspectives,” BPM Research Web site, 2003.

Goal Specification andAnalysis

Process Design

Process ImplementationProcess Evaluation

Process Enactment

Simulation

Process Monitoring

Process Models

ENTERPRISE WORKFLOW MANAGEMENT PAGE 4 BENEFITS OF IMPLEMENTING WFMS

Organizations Deploy WfMS to Reduce Costs, Improve Business Processes and Organizational

Structure, Thereby Realizing Efficiency, Collaborative and Relationship Benefits

The following table highlights the benefits that companies can realize by implementing WfMS:

Benefits of WfMS Implementation

Benefits Description

Costs Efficiency

Eliminates costs associated with paper documentation

Reduces the number of participants in a business process

Reduces errors and re-work in day-to-day operations

Reduces time to transfer work between tasks and increases the number of tasks running simultaneously

Employee Performance and

Collaboration

Improves end-to-end process time through parallel and distributed processing of multiple activities and transactions

Provides real-time access to information, thereby enhancing the employee collaborations and productivity

Offers enterprise-wide information processing through a corporate knowledge base, thereby improving the reliability and integrity of enterprise information

Enhances process transparency and work monitoring

Customer Relationship

Improves consistency of service quality as standard processes can be formulated

Improves data reliability through tactics such as role privileges, process control, version control, and systems back-ups

Offers flexibility to modify existing processes and deploy new processes based on change in business requirements, such as change in demand.

Sources: Author unknown, “The Benefits of Workflow,” Workflow National Project Web site, December 2004; Author unknown, “An Introduction to Workflow Management Systems,” Center for Technology in Government University at Albany, date unknown; James Caverlee, Joonsoo Bae, Qinyi Wu, Calton Pu, William B. Rouse, “Workflow Management For Enterprise Transformation,” Texas A&M Computer Science Department Web site, 2007.

ENTERPRISE WORKFLOW MANAGEMENT PAGE 5 RISKS ASSOCIATED WITH WFMS IMPLEMENTATION

Common Risks of WfMS

The following table highlights the risks that enterprises typically face while implementing workflow management systems:

Risks Associated with WfMS Implementation

Risk Description

Staff Resistance

Companies often face problem in encouraging staff to migrate from manual processes to automated processes. Staff conceive workflow management as a mechanism to monitor and downsize them, and to reduce decision-making power.

Loss of Flexibility Companies typically find it difficult to select a WfMS as it must adapt and scale to

accommodate changes in the scope or structure of organization due to mergers and acquisitions or SOX compliance requirement.

Technical Implementation

Costs

Companies also find it difficult to justify the technical implementation costs, which include development and maintenance of back-end data model, price of workflow software products, application development and implementation, and product customization costs.

Complex Processes Definition Costs

Companies typically find it difficult to define and re-engineer business processes as reliable workflow definitions requires detailed understanding of business processes.

Sources: Romeo Elias, “ The Five Pitfalls of Implementing Project & Workflow Management Software,” Interneer Web site, May 2007; Author unknown, “An Introduction to Workflow Management Systems,” Center for Technology in Government University at Albany, date unknown; Author unknown,“ The Benefits of Workflow,” Workflow National Project Web site, December 2004.

ENTERPRISE WORKFLOW MANAGEMENT PAGE 6 WFMS IMPLEMENTATION

Phases in the WfMS Implementation

The WfMS implementation process is categorized into two phases—pre-implementation and implementation. The pre-implementation phase consists of formulating a business case for the WfMS implementation. The second phase consists of implementation steps that companies typically adopt for WfMS implementation. The cost of implementing a WfMS is based on multiple factors, including scope, number of employees involved in the workflow and associated processes, and complexity of implementation.

Pre-Implementation Phase The following figure highlights three levels of enterprise workflow management business case and highlights the activities needed at each level to formulate the business case:

Building the Business Case Source: James Caverlee, Joonsoo Bae, Qinyi Wu, Calton Pu, William B. Rouse, “Workflow Management for Enterprise Transformation,” Texas A&M Computer Science Department Web site, 2007.

Identifying Strategic

Value

Identifying Business

Value

Identifying Operations

Costs

Identify corporate goals and objectives affected by workflow management initiative. Evaluate the effect of workflow management initiative on corporate objectives and priorities. Evaluate strategies companies typically adopt for workflow management to meet the corporate

goals and objectives. Evaluate the support of workflow management to other projects.

Identify new business capabilities, which are realized through workflow management. Identify new services and enhancements to current services, which can be provided through workflow

management. Evaluate performance improvements in terms of efficiency and revenue realized through workflow

management.

Evaluate lifecycle costs, including development, implementation, operation, and maintenance costs of the WfMS.

Evaluate efficiency improvements in day-to-day workflow and its affect on resource requirements.

Calculate expected financial savings realized through deployment of WfMS. Calculate ROI and net present value (NPV) of investment in WfMS.

ENTERPRISE WORKFLOW MANAGEMENT PAGE 7 WFMS IMPLEMENTATION (CONTINUED)

Implementation Best Practices

Once the business case for deploying WfMS has been formulated, organizations develop an implementation strategy. The following figure highlights the key phases in the WfMS implementation and the best practices enterprises adopt to execute these phase.

Implementation Process Phases Sources: Author unknown, “The Benefits of Workflow,” Workflow National Project Web site, December 2004; Author unknown, “An Introduction to Workflow Management Systems,” Center for Technology in Government University at Albany, date unknown.

Acquire Upper Management

Support

Ensure Data Consistency and Security

Integrate Legacy and

New Systems

Ensure End User

Awareness and Acceptance

Measure the Performance

Ensure senior management support for multiple phases of the project, including project approval, planning and implementation.

Conduct data cleansing activity before the WfMS implementation to maintain data consistency across multiple systems.

Consider security and data protection prior to the WfMS implementation, thereby enabling authorized staff to view and access information

Integrate legacy systems with WfMS to reduce data redundancy, increase system consistency and integrity, and enhance decision support.

Ensure that the current IT infrastructure is flexible to support WfMS implementation and integration with multiple systems.

Encourage multiple departments to collaborate to realize the benefits of enterprise workflow.

Involve staff in redesigning processes and reassure staff that the new processes automate tasks and will improve their productivity. Train and educate staff on WfMS to increase user acceptance.

Track quantifiable metrics, including revenue, costs, FTE, storage, and time to access information, number of errors, and length of worklist queues.

Re-access the processes to identify the process improvements to process sequencing, work task distribution, and approval responsibilities.

Conduct reviews of the workflow design for continuous improvement.

ENTERPRISE WORKFLOW MANAGEMENT PAGE 8 WFMS INTEGRATION

Integration Requirements for WfMS Organization typically integrates workflow applications with internal and external systems. The drivers for integration include reduction in information redundancy, increases in system consistency and integrity, and enhancement of decision making through faster information access. The integration requirements are categorized into internal and external integration requirements. Internal Integration Requirements: Includes the following requirements for systems to which WfMS integrates. Resource Integration: Integrates resource information in organizational directories and multiple

applications with WfMS to track participants’ availability for resource allocation. Data Integration: Integrates WfMS to databases used by external applications to provide access to

workflow-related data. Application Integration: Enables WfMS to invoke external applications such as word processor

during process enactments. Security Integration: Adopts current authentication and authorization mechanism, including single-

sign-on, role-based access control, and public key infrastructure. External Integration Requirements: Includes the following integration requirements with systems that initiate WfMS externally or systems that are initiated by WfMS. Process Integration: Initiates workflow engine to initiate a process and provide initial data to the

process instance. External Presentation: Notifies the status of workflow instance to external participants Reporting: Access to audit trail information to external applications, including reporting and business

activity monitoring tools. The following figure highlights the integration requirements from an internal and external perspective: Source: Michael Zur Muehlen, “Organizational Management in Workflow Applications – Issues and Perspectives,” BPM Research Web site, 2003.

Application Integration

Workflow Management

System (WfMS)

Process Integration

Data Integration

Resource Integration

Security Integration

External Presentation

Reporting

Internal Integration Requirements External Integration Requirements

ENTERPRISE WORKFLOW MANAGEMENT PAGE 9 FEATURES OF WFMS

Features of Workflow Management Systems

The following table highlights the features of WfMS:

Features of WfMS

Features Description

Process Definition Define business processes, including activities and rules. Create rules to determine progress of activities across workflow.

Simulation, Prototyping, and Piloting Simulate workflow through prototype or pilot version of workflow.

Task Initiation and Control Initiate business processes and allocate resources to complete activities.

Rule-Based Decision Making

Create rules to determine processing, routing, tracking, and controlling of workflow-related data.

Document Routing Transfer files and folders through email attachments.

Invocation of Applications Enable staff to create, modify, and view data and documents through multiple

applications, including word processor, spreadsheets, GIS systems, and production applications.

Work Lists Enable staff to identify current tasks and related information, including due dates, deadlines, and priority.

Task Automation Automate multiple tasks, including letter writing, email notices, execution of production applications through customized workflow product.

Event Notification Notify staff and managers about project milestones and increase in workload.

Distribution Lists for Messages and Mails Create distribution lists for sending ad-hoc messages to staff.

Process Monitoring Monitor current workload, future workload, process bottlenecks, turn-around time, and missed process deadlines.

Real-Time Information Access

Offer real-time access to workflow information to remote customers, suppliers, collaborators, and staff through Web interfacing module.

Tracking and Logging Activities

Offer information logging functionality to log start and completion times, persons assigned to the task, and key status fields, which enables analyzing processes and provides evidence for task completion.

Administration and Security

Identify the participants in the workflow management and their access authorizations for multiple functions, including file back-ups and archiving logs.

Source: Author unknown, “An Introduction to Workflow Management Systems,” Center for Technology in Government University at Albany, date unknown.


COMPARATIVE FEATURE ANALYSIS

Comparative Feature Analysis of WfMS Vendors Vendors offering WfMS can be segmented into the following two categories: Niche Vendors: Offer focused WfMS, e.g., IBM, Oracle, TIBCO, Pegasystems, and Lombardi. Web-Based Vendors: Offer Web-based WfMS, e.g., Workflow Gen and Quask.

The following table below provides a comparative snapshot of the features offered by seven workflow management systems vendors.

Comparison of Vendors Offering Workflow Management Systems

Niche Vendors Web-Based Vendors

Features IBM Oracle TIBCO Pegasystems Lombardi Workflow Gen Quask

Process Definition

Task Initiation and Control

Task Automation

Document Routing

Process Monitoring

Event Notification

Proc

ess

Man

agem

ent

Work Lists

Simulation

Real-Time Information

Access

Tracking and Logging Activities

Info

rmat

ion

Adm

inis

trat

ion

and

Acc

ess

Administration and Security

Source: Vendor Web sites. Note: Checkmarks indicate advertised functionality.


VENDOR PROFILES The following table provides a snapshot of seven vendors offering workflow management systems solutions:

WfMS Vendors Vendor Solution and Functionalities Partial Client List

IBM Corporation 1 New Orchard Road, Armonk NY 10504 Phone: 914-499-1900 Fax: 914-765-7382 Web site:/www.ibm.com

IBM offers WebSphere MQ Workflow solution, which consists of tools such as Business Integration Modeler, MQ Workflow Build time, and Web Service Toolkit. The key features include: Defines business processes through Business

Integration Modeler. Initiate business processes and allocate

resources to complete activities through Workflow Build time.

Automates and tracks business process based on the business design.

Monitor current workload, future workload, process bottlenecks, turn-around time, and missed process deadlines through Business Integration Modeler.

Simulate workflow through prototype or pilot version of workflow through Business Integration Modeler.

Offers real time access to business process information through Web Services Toolkit.

Not publicly available

Vendors Oracle Corporation 500 Oracle Parkway Redwood City, CA 94065 Phone: 650-506-7000 Fax: 650-506-7200 Web site: www.oracle.com

Oracle Corporation offers Oracle Workflow. The key feature include: Define business processes, including activities

and rules. Create rules to determine progress of activities across workflow.

Enables users to model and automate business processes.

Routes information of multiple types such as self-services transaction, business documents, or XML document to decision makers based on business rules for routing.

Enables users to monitor business processes in a real-time.

Enable users to receive, analyze, and respond to notifications through e-mail systems or Web browser.

Reviews business process notifications through a central Web based worklist.

Enable users to view process details, rollback and re-execute the business process.

Notifies staff and managers about project milestones and increase in workload.

Offers a real-time access to information to users, customers, and suppliers.

Authenticates users to access the information.

British Telecom Dell Sprint/Nextel

Source: Vendor Web sites; www.hoovers.com.


VENDOR PROFILES (CONTINUED)


TIBCO Software Incorporated 3303 Hillview Avenue Palo Alto, CA 94304 Phone: 650-846-1000 Fax: 650-846-1005 Web: www.tibco.com

TIBCO offers BusinessWorks, which provides a workflow solution to multiple industries, including insurance, banking telecommunications, utilities, and manufacturing. The key features include: Offers a graphical design interface that

enables users to map out business processes.

Automates routine sequences of tasks. Provides enhanced analytics that

enable business leaders to track performance, react to market changes and handle enterprise-wide exceptions.

Routes information through HTTP protocols.

Monitors and manages ongoing process improvement.

Offers a vertical application framework to connect front office applications and back-office systems.

Offers real-time information access and exchange functionality through Web-based browser.

Stores process definition, transformation and routing logic, security, and policy rules in a central repository, thereby enhancing collaboration.

Provides distributed security and policy rules for information access and distribution.

Vodafone Shell Nokia Circuit City American Express

Pegasystems Incorporated 101 Main Street, 7th Floor Cambridge, MA 02142 Phone: 617-374-9600 Web: www.pegasystems.com

Pegasystems offers PegaRULES Process Commander, enterprise work automation software. The key features include: Enables users to manage, automate,

integrate, and improve business processes across the enterprise, as well as to vendors, customers and partners.

Employs Microsoft Visio as the graphical front-end design and modeling tool.

Automates workflow through Microsoft SmartShapes and Visio worksheet, thereby integrating activities.

America Online BNP Paribas JP Morgan Chase UBS AG





Lombardi Software Incorporated 4516 Seton Center Parkway, Suite 250 Austin, TX 78759 Phone: 512-382-8200 Fax: 512-382-8201 Web site: www.lombardisoftware.com

Lombardi Software offers Teamworks 6, a business process management suite. The key features include: Offers a graphical workspace to create

process diagram and services. Enables users to view tasks and work

queues. Provides detailed information about process

owners, and automates the transfer of project milestones, and low-level activities from high-level process maps to the workflow model

Enables manages to balance workload and prioritize tasks.

Conducts ‘what-if’ analysis with performance data to identify problem areas in advance.

Provides real-time access to trend information.

Hasbro Saftey-Kleen Pfizer

Solutions Advantys 1250 Rene Levesque West Suite 2200 Montreal, Quebec H3B 4W8 Canada Phone: 514-989-3700 Web site: www.workflowgen.com

Advantys offers Workflow Gen, Web-based enterprise process management software. The key features include: Enable users to design workflow processes. Initiates a new task based on user profile

through a portal. Monitors users’ current tasks and processes

through a Web-based tool. Offers real time notifications to users, which

includes customized emails informing users about assigned actions, closed requests, and overdue or cancelled actions.

Offers real-time access to information through the portal to check the status of requests.

Manages notifications through customized emails and exceptions such as delay, cancellation or error.

Offers a secure authentication based on Active Directory, SSO systems or Databases. Manages process participants through the users and groups synchronized with the current directory.

HP Saint Gobain EDS





Quask

5 Independence Way , Suite 300 Princeton, NJ 08540 Phone: 609-514-5182 Fax: 609-514-5104 Web site: www.quask.com

Quask offers Quask FormArtist WorkFlow, a Web-based workflow solution. The solution consists of multiple modules, including Forms Designer, Visual Workflow Modeling, Form Server, and Workflow Tracker. The key features include: Design and models workflows and

processes through Visual Workflow Modeling module.

Enables users to store field values, and information related to form changes.

Enables users to define multiple reminders and escalations.

Offers users to access, search, and retrieve information through e-mails.

Supports multiple authentications.

British Telecom GE Honeywell



1 Author unknown, “The Benefits of Workflow,” Workflow National Project Web site, December 2004. 2 ibid. 3 ibid. 4 ibid. Professional Services Note: The Corporate Executive Board has worked to ensure the accuracy of the information it provides to its members. This project relies upon data obtained from many sources, however, and the Corporate Executive Board cannot guarantee the accuracy of the information or its analysis in all cases. Furthermore, the Corporate Executive Board is not engaged in rendering legal, accounting, or other professional services. Its projects should not be construed as professional advice on any particular set of facts or circumstances. Members requiring such services are advised to consult an appropriate professional. Neither Corporate Executive Board nor its programs are responsible for any claims or losses that may arise from any errors or omissions in their reports, whether caused by Corporate Executive Board or its sources.

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