Business Process Management

© 2011 IBM Corporation

IBM’s Vision

For Business Process Management, Operational Decision Management, and Service Oriented Architecture

Peter Beggs

National Certified Specialist for WebSphere

[email protected]

© 2010 IBM Corporation 2

SOA Reference Architecture – what this session is all about

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Services Process Services Information

Services

Partner Services Business App Services Access Services

ESB

Infrastructure Services

IBM BPM 8.0 WebSphere Business Monitor

WebSphere MQ WebSphere ESB

WebSphere Message Broker

DataPower

Enables collaboration between people, processes &

information

Orchestrate and automate business processes Manages diverse data in a

unified manner

Connect with trading partners

Build on a robust, scaleable, and secure services environment

Facilitates interactions with existing information and

application assets

Optimizes throughput, availability and performance

Integrated environment for design

and creation of solution

assets

Facilitates better decision-making with real-time business information

Manage and secure

services, applications

& resources

Business Innovation & Optimization Services

WebSphere Integration Designer

WebSphere Operational Decision

Management


The New Normal: Change, Complexity, Uncertainty


Can Your Processes Handle Change, Uncertainty and Complexity?

Simpler Business Led Change

Full Process Visibility and Governance

Optimized Processes and Decisions

Agile Processes and Decisions with Business Process Management


Why is Business Process Management Important?

How you work defines you.

How you work is a process.

A process can differentiate you – for good or bad.

Managing the process can:

Reduce costs

Provide insight into your business

Insights can be used to improve your business.

Your processes are assets and many are core assets.

Yet we often know little about them.

This is a problem.


Why is Business Process Management Important? A few questions…

1. Is there a burning business issue that needs to be fixed?

2. Is the underlying process well documented? Do all the stakeholders understand and agree on the process?

3. Can you verify that the process you have documented is actually the one running on the floor?

4. Can you see into the process to obtain Key Performance Indicators (KPI’s) about your enterprise?

5. When was the last time you updated the process? The documentation?

Think of a key process…


Key Messages

In reality, though, Business Process Management has four ways it can add value:

1. driving operational efficiency and quality;

2. driving product and service innovation;

3. driving business model innovation; and lastly,

4. driving improved collaboration between IT and business teams.

“…we expect to see continued high levels of interest across industries in the potential for BPM to enhance customer experiences. We also expect to see increased focus on BPM use for profitability and cashflow improvement, as well as to support product and service differentiation and innovation.

“…will see projects looking to institutionalise BPM thinking and make BPM “part of the way things get done”. For them, issues of architecture involvement (including integration with SOA initiatives), process ownership, governance and change management, skills availability and supplier selection will be crucial.

Market Insight 2011 Outlook: BPM Neil Ward-Dutton December 2010


Why Look at Business Process Management?

Is it easy to change how you work? Can you analyze changes before making them? Are changes a programming effort or a business analyst effort?

Is audit a concern? Is the connectivity infrastructure brittle? Hand-coded?

Can you visualize how work gets done? Do you know what people do the most (you may be surprised)? Are people working effectively?

Is the process fast enough from start to finish?

Is there too much manual work? too much paper? too many errors?

Need to ensure policies and business rules followed?

Is it easy to reach into, “to see”, and measure the business? In real-time? What can you do with those measurements?

How do you decide what to change? How do you “business case” changes?


1. Process Inconsistency

2. End User Complexity is significant

3. Poor data quality. Redundant manual data entry

4. Inconsistent Prioritization

5. Lack of Control Over System and Business Events (Exceptions)

6. Poor Visibility Into Process Performance

Problem:

• Missing Deadlines

• Tribal Knowledge

• Painful to change

Program Management

Patient Registration

Ambulatory Care Teams

Critical Care

Triage 1

2

3

4

5

6

Today, our current processes are challenged, and trapped within each application - in Silos.


1. Automate workflow & decision making

2. Reduce errors and improve consistency

3. Standardize resolution across geographies

4. Leverage existing systems and data

5. Monitor for business events and initiate actions

6. Real-time visibility and process control

Customer Benefits:

• Huge Reduction in Manual Work, Errors

• Faster, More Consistent Issue Resolution

• Easier to Manage the Business

Process

we need a Business Process Management (BPM) platform, to deliver a layer of Control, Visibility, Standard Rules (Alerts) and Escalation that is Audited.

Program Management


Ambulatory Care Teams

Critical Care

Triage


Process

SOA ESB

… built upon a Service Oriented Architecture (SOA)

Modeling

Simulation + Optimization

Workflow

Rules

Business Data Mgmt

Human Interfaces

Event Monitoring

System Integration

Metrics

Analytics

Program Management


Ambulatory Teams

Triage

Critical Care


Governance & Processes

Manage

Assemble

Deploy

Model

The BPM Lifecycle

Process Discovery


Tax Agency: A Latin America Tax Agency

Government Insurance Agency: Australia

in cost savings

The solution, based on Operational Decision Management, sorts proposals within minutes, automatically selecting those that best align with the requirements, resulting in $130M in cost savings

Innovative Solutions Are Required To Realize Real Value

Decrease in Cost 10% $130M 84%

Straight Through Processing

The Agency was able to achieve 84-85% straight through processing by implementing Operational Decision Management to handle the complex rules in their payment process

Through an on-line questionnaire founded on Operational Decision Management, the Agency realized a 10% decrease in the cost of tax collection

Education: University of Chile


Source: IBM CEO Study 2010

Deeper / Faster Cycles, More Risk

More Volatile

Less Predictable

More Uncertain

Multi-faceted, Interconnected

More Complex

Percent of CEOs who answered “To a large or very large extent”

The Business Environment is Increasingly Dynamic

CEOs expect change to be more frequent and less predictable


72%

75%

Source: IBM Global CIO Study 2011

Transformation and Growth Require Better Decisions

CIO’s recognize that effective decision automation is key to success

of CIOs with mandates to

transform the business are looking to “drive better real time decisions.”

of CIOs with mandates to

expand cross-enterprise growth are leading the

charge to “drive better real time decisions.”


Large volumes of simple to complex day-to-day business decisions means there is an opportunity for operational

improvements e.g. greater straight-through processing, shorter time-to-market for new

services, reduced errors in service delivery, and transparent business logic for auditability

Day-to-day Operations Require Operational Decisions Is this person who they say they are? Can we verify other services they receive? Is this person eligible for this service? How much aid do they qualify for? How to account for this exception? Can we recommend additional services? How to handle this appeal? How to ensure fraud is not taking place? Do we have a record of that decision? Can we adapt to the new regulations?

Eligibility

Benefit Payments

Citizen Servicing

Risk & Compliance


Where Business Rules typically exist

Applications

Processes People

Documents Databases

Operational Decision Management

Rules are Defined, Analyzed & Maintained

User Tools

Rules are Stored & Shared

Repository

Rules are Deployed, Executed & Monitored

Decision Server

Make Easy, Safe, Reliable Change with Decision Management


Adapt to Rapid Change

Align Across Business & IT

Act With Precision & Reliability

Key Challenges Addressed by Decision Management


Ensure success with a proven approach for adopting BPM, ODM and SOA

Mat

urity

Cha

lleng

es

Tech

nolo

gy

Expe

rtis

e

Succeed with an Initial Project

Establish a Program

Transform across the enterprise

Identify Business Challenge & Value

On-Demand Consulting Assistance Turnkey Services

Solution Mentoring Training

Simplicity to engage business users

Power to scale as business requires

Realize fast value, foster BPM adoption and create transformational impact

Visibility Rapid time to value Governance

Transformation Program Project



Summary

BPM technology has to be “part of the furniture”.

BPM and SOA are synergistic and each adds value to the other

Continuously optimizing work can provide differentiation and leadership in the marketplace / to your citizens. BPM can enable agility to foster and make delivering on creativity easier.

Improving how you interact with customers / citizens can dramatically improve returns.

BPM can deliver operational dexterity – easier to change how processes work, able to monitor processes.


thank you!

Technology

Business Process Management