1. Achieve Business Agility with BPM Colin Gniel Business Integration Executive, IBM 31 March 2011 - SYDNEY
2. Business Agility in Action Achieve Business Agility with BPM Colin Gniel, Business Integration Executive, IBM Asia Pacific, WW Business Integration Team
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4. Home Mtg LOB Commercial Finance LOB Services LOB International Bank Branch Site Internal Employees Government Oversight Commercial Customers ATM 3 rd Party Services Business Customers Customers E-Banking 3 rd Party Services Branch Site Payment Service Providers ATM Outsourced service providers Customers Mortgage providers Legal Services Underwriting Customers The Modern Enterprise is a Network of Complex Interactions
5. Organisations are charting a roadmap to Business Agility Across their Dynamic Business Network Strengthen relationships and integrate with customers, suppliers and partners Accelerate change with optimised processes and decisions Control costs and add flexibility with virtualisation and cloud Business Process Management Connectivity (SOA) Dynamic Application Infrastructure Home Mtg LOB Commercial Finance LOB Services LOB International Bank Branch Site Internal Employees Government Oversight Commercial Customers ATM 3 rd Party Services Business Customers Customers E-Banking 3 rd Party Services Branch Site Payment Service Providers ATM Outsourced service providers Customers Mortgage providers Legal Services Underwriting Customers
6. Types of Business Processes Structured Unstructured People Systems Information Non-Deterministic, Event-Driven Collaborative, Artful, Ad-hoc (Fraud Detection, Merchandising) (Contract Negotiation, Collateral Creation) Compliance (Automated Records & Process Management ) Automated, Straight Through Processing Coordinated, Scheduled (Payments, Trade Settlement) (Integrated Supply-Chain, Case Management) Content Intensive (Paper processes, Account Origination, Claims) Processes A business process is a collection of interrelated tasks , which accomplish a particular goal, usually decomposed into several sub-processes.
7. Dynamic business processes are… Explicit: Processes are documented, understood, and agreed upon Visible: Process performance is available in real-time, measurable, and actionable Interconnected: Processes are network-aware and well-connected to the right services at the right time Easily Changed: Process tasks, activities, and end-points are flexible and quickly adjusted Driven by the Business: Process management is contextual, governed, and extended to all stakeholders
8. Simplifying the Layers of Business Agility BUSINESS PROCESS MANAGEMENT CONNECTIVITY APPLICATION INFRASTUCTURE STRATEGIC INTENT Charting a Roadmap to Business Agility End-to-End Processes Continuously Optimize CICS MQ WAS ACCELERATE CHANGE WITH OPTIMISED PROCESSES & DECISIONS INTEGRATE WITH CUSTOMERS, SUPPLIERS & PARTNERS CONTROL COST AND ADD FLEXIBILITY WITH VIRTUALISATION & CLOUD STRATEGIC INTENT
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13. Begin process discovery and improvement with cloud-based BPM tools, content, and community Learn Learn strategies, trends, and best practices for making smart process decisions Experience Capture business intent, understand capabilities, sketch processes Collaborate Leverage community insight and access shared content Optimise Extend strategy to drive processes improvement, and deploy with IBM BPM Suite
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15. Powerful process improvement capabilities put you on the path to business agility Level 1 Initial Level 2 Awareness Level 3 Standardised Level 4 Dynamic Level 5 Agile Siloed, reactive, and rigid business Efficient business focused on cost reduction Efficient and effective business focused on end-to-end automation Highly responsive and continuously optimizing business Highly predictive, innovative, and agile business Maturity Business Value
16. Taking Control of Your Business Processes Achieve Business Agility through…. … to fuel new growth while optimising costs Discover and continuously improve dynamic business activities Optimise decision-making and speed business change Connect and manage interactions across the business network
17. Aligning the engines of business agility Unleashes powerful capabilities for process improvement Events Analytics Collaboration Rules Content Monitoring Detect emerging business situations by capturing and correlating events Adapt and respond rapidly by optimising operational decisions Solve problems and predict outcomes for strategic decisions and actions Maximise people’s interactions across the business network Seamlessly integrate active content with automated business activities Monitor activities in real-time to identify improvement opportunities
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20. ...for more presentations on Business Process Management and Improvement go to www.bpmlink.com /resources
Notes de l'éditeur
Main Point: IBM’s approach to BPM addresses the full spectrum of processes from small, departmental workflows to large end-to-end processes that span the business network. With IBM’s approach you can start anywhere and leverage tools that can easily scale with your implementation Speaker Notes All processes are not the same and to help you be successful with BPM, IBM must be able to address to full spectrum of business processes that our customers are faced with. There are any number of processes that vary depending on the amount of structure in the process, the use cases you see here are: Straight Through, Coordinated/Scheduled, Content Intensive, Compliance, Event-Driven, and Collaborative / Artful. Each of these processes to varying degrees involve systems (integration) business people, and content. In addition to their being a spectrum of business processes; how these processes are changed over time also is different – some changes require business and IT to work together while other changes are purely done by the business. In both cases, strong process governance is required in order to maintain the integrity of the business system. Spectrum of Processes Straight-Through Processes – These processes are linear and deterministic in that they have known start and end points as well as known paths through the process. This is where AIM has been very strong historically – things like Payments, Trade Settlement. Coordinated Scheduled Processes – The main function of these types of processes is to coordinate or schedule the work. The processes are usually still linear with known start and end points but the paths can sometime be non-deterministic (i.e. they don’t happen the same way each time). ERPs and Industry-specific apps have a stronghold in this space. This is also an area that both WebSphere and FileNet BPM can play a role depending on the process. Content Intensive – These processes require a significant amount of unstructured information (images, emails, documents, etc) that initiate a process or used by a process. Typically this information is not simply waiting in another system to be accessed, instead, it is requested of people or of systems that are not a core part of your process infrastructure. Paper intensive projects such as claims or new account opening where you may need an application, referenced documentation and approvals intertwined are good examples of content intensive processes. Non-Deterministic / Event-Driven Processes – Processes that are non-deterministic and non-linear have no specified start or end point. Instead, the processes are defined by event patterns that when matched trigger specific sets of actions. An example of this type of process is Fraud Detection. This is where the AptSoft acquisition play in. Compliance processes – automate your ability to declare information used by or within your process as a record for compliance purposes. This is critical in terms of meeting both regulatory compliance requirements for your industry and governance rules of your company. The declaration of records within a process and storage of those records in a secure repository reduces the opportunity for error over requiring people to manually declare records. It is also a more reliable, auditable way to manage your important records. Collaborative / Artful Processes – These business processes do not have any predefined structure to the work – for example the process of innovation, or creating collateral. Instead, these processes evolve on an ad-hoc basis as they are being executed. In a default process workflow, all documents in a workflow folder follow the same process definition. In an ad hoc workflow process, the user decides how a document should be routed for review when the user saves the document. Ad-hoc amendments to the workflow process, such as those initiated by the persons who collaborate in the work process, can be easily incorporated into a new work process.
Main Point: So what is a dynamic business process? What is it that makes a process dynamic? Here are some of the characteristics of dynamic business processes they are explicit, visible, interconnected, easily changed, and above all – driven by the business. Speaker Notes: We’ve discussed dynamic business processes, as one of the key enablers of agility, but what exactly are dynamic business processes and what is it that makes them dynamic? First of all, dynamic business processes are explicit—they’re documented, understood and agreed upon. They are also visible, with process performance available in real time, measurable and actionable. Dynamic business processes are easily changed, with tasks, activities and end points that are flexible and quickly adjusted. And above all, they are driven by the business, with contextual process management that is governed and extended to all stakeholders.
Speaker notes: This animated slide breaks apart to display how, at each layer of the aligned stack, WebSphere continues to evolve along the path of maximizing business agility for its customers. WebSphere has made many portfolio enhancements both through organic development (highlighted in ‘Blue’) and through acquisition (highlighted in ‘Green’). Some examples from each of the layers are provided to show how WebSphere is committed to driving this aligned evolution at all layers (although please note that the list is not exhaustive).
Main Point: Organizations have the ability to infuse processes with greater intelligence and agility – creating specific “points of agility” that deliver increased visibility into your business, the ability to rapidly enact change, and the ability to successfully manage and improve even very unstructured or case-based processes. These capabilities are illustrated here in a campaign management example for a telecommunications firm. Speaker Notes: These extended-value capabilities infuse processes with greater agility and intelligence, allowing organizations to achieve deeply agile processes that drive greater levels of business performance, and consistent outcomes. Intelligence in the form of analytics, monitoring, and events can improve processes with real-time contextual information. Monitoring deployed business processes to identify performance gaps and improvement opportunities is a critical component of business process management. This information from the running process is also an important source of insight to drive better decisions. In addition to the process data, there are powerful real-time insights to be captured from the millions of events that move through the broader business network every day. These events could be a transaction, a meter signal, or a reading from and RFID chip. In isolation these events likely don’t offer much insight into business conditions, but patterns of events can be very significant. Providing insight requires the ability to determine when an event or pattern of related or seemingly unrelated events from one or more sources has occurred and then to coordinate the execution of the responses to that pattern of events. Visibility into business processes and events can empower decision-makers with real-time information, but the business context of the insight is also important to improve decision making. This is where traditional business intelligence and analytics can provided extended insight. For example, a series of business events might foretell an imminent customer defection, but additional insight from BI and analytics systems can help calculate the lifetime value of that particular customer and estimate the impact of that defection towards the bottom line. Information is of little use if it cannot be readily transformed into action and executed upon. Business rules, can provide this execution channel. Rules can significantly optimize operational decision points in processes, by removing the decision logic from the process. This allows organizations to deploy consistent decisions across the business network, and even begin automating some decision-making processes. Simple authoring tools allow business users to create and modify rules without involving IT, or changing application configuration or code. Many processes are characterized by ad-hoc tasks, or a case-based flows where work is often based specific case, and does not necessarily follow a straight through path. To manage these processes, workers must be able to quickly collaborate on tasks, and insure that all content associated with a case is effectively managed and associated with each process instance. Enhancing processes with collaboration tools, support for ad-hoc work tasks, and extended content management capabilities can allow organizations to begin to better manage even very unstructured processes.
Main Point: Process automation is a great way to optimize business performance, but automation must be flexible. Processes must be able to adapt and respond dynamically to change. Business rule management enables you to automate and manage process decisions while quickly deploying changes throughout company-wide processes and applications Speaker Notes: Even automated processes must be flexible. In today’s world, change is required in almost every aspect of our business. Business Rule Management System allows your business to manage change in the most effective manner enabling your company to multiply its agility and respond to change by faster time to market implementations without compromising the needed visibility and control of your processes and policies. You can automate low-level process decisions, and by separating the business rules from processes and applications easily enact changes and quickly deploy them throughout your company. Net results include improved customer retention and acquisition, greater operational efficiency, while facilitating compliance with regulations and driving lower cost of maintenance. IBM's vision is to allow customers to create more agile and dynamic processes today, that serve as the foundation for greater innovation in the future. A central piece of this vision is to improve the alignment between business architecture and IT infrastructure, and keep this alignment flexible and continuous to adapt to changing business needs. This in turn enables business agility, and allows processes to be continually improved over time. It is important, though, to understand the unique value that different technologies bring to enable agility, specifically Business Process Management and Business Rules Management. There are real synergies between the two, which is clearly identified in this slide. BPM is here to orchestrate the various tasks / actors / services that comprise the end-to-end business of the organizations whereas the BRMS is here to manage automated decisions at specific points in the process. In most of the cases, BRMS is exposed to BPM through web services that are invoked by the process to make a decision that has direct influence on how the business operates. BRMS is not just a technology to do simple routing rules inside a business process, but is instead used to automate complex, highly-variable decisions that take place at different points in a process, as well as in other systems that may not be involved in orchestrated processes. One important benefit of using a BRMS in conjunction with BPM is the ability to allow Decision Services to be used across multiple business processes (as well as other systems that utilize the same rules). This benefit is especially important when considering keeping mission-critical business decisions up-to-date and synchronized across processes as internal policies and external regulations change. A WebSphere ILOG BRMS Decision Service allows for a change once, impact everywhere implementation of business rules. In addition to facilitating decision change and re-use of business rules across processes, the use of a BRMS with BPM allows process models to be streamlined and stabilized which is important for measuring and monitoring process performance. The lifecycle of the process and the lifecycle of automated business decisions can be separated and decision changes can be implemented without requiring re-deployment of the process. Finally, business rules can be treated as enterprise assets with full governance to ensure that automated decisions meet your organization’s requirements and objectives.
MAIN POINT: Making the right decision at the right time is key to be ahead of the curve in a very competitive and dynamic market place. IBM listens to its customers and introduces IBM Decision Server that combines the power of rules and events technologies allowing to automate the detection of important business events and determine and execute the best course of actions following the events. CenterPoint illustrates the crucial need for such a technology. SPEAKER NOTES: CenterPoint Energy's electric operations unit delivers electricity to 2 million customers in a 5,000-square-mile area that includes Houston, the nation's fourth largest city. CenterPoint Energy needs to deliver power more efficiently and reliably in the face of growing consumer expectations, environmental concerns and increasing costs. The company also saw the opportunity to break new ground in grid management practices. To use their words CenterPoint is moving from an Application Centric Environment to a Process Centric Environment, meaning BPM is front and center. “Smart Grid” is a great illustration of how they changed their way of thinking and implementing enterprise wide projects. It is a business initiative , not an IT initiative, but it allows both Business and IT to align their goals. Using IBM WebSphere Business Events connected to their smart meters, they are able to analyze the power usage by the consumers and detect any events or event patterns as they occur. Using this data they are capable of making the right decisions to better respond to these events : sizing the electricity supply with the real demand, improving power distribution, reducing outages, as well as decreasing dramatically the time to restore power in case of an outage. IBM is a strong IT partner to CenterPoint in their “Smart Grid “ initiative where most of our BPM stack + Events and Rules are a crucial part of the solution. What’s New WebSphere Decision Server v7.1 : a combined offering of WebSphere Business Events + WebSphere ILOG JRules. Business Event Processing and Business Rules Management technologies are highly complementary, and both focus on enabling intelligent and responsive decision automation – by making these two technologies available together to customers as a single offering, organizations can flexibly create solutions that detect and react to event-based data patterns in real time, and then provide the appropriate decision response based on a variety of factors, including an organizations business policies and best practices or regulatory requirements. Additional Background: Link to the CenterPoint Video : http://www.centerline.net/review/#/2768_H As part of our focus on process improvement, we are highlighting our capabilities for automating and improving high-volume operational decisions across critical business systems. This involves both being able to allow systems to provide the best possible decision at the current moment based on data and situational context, as well as being able to discover insights that can be used to continually improve automated decisions over time. Automated decision examples include: Product and promotional offers Case and customer prioritizations Fraud and risk determinations Product points: In Q4 2010, WebSphere will assert its capabilities and value in enabling decision management solutions that are highly complementary to our BPM offerings through a set of product-related releases: WebSphere Decision Server v7.1 a combined offering of WebSphere Business Events + WebSphere ILOG JRules. Business Event Processing and Business Rules Management technologies are highly complementary, and both focus on enabling intelligent and responsive decision automation – by making these two technologies available together to customers as a single offering, organizations can flexibly create solutions that detect and react to event-based data patterns in real time, and then provide the appropriate decision response based on a variety of factors, including an organizations business policies and best practices or regulatory requirements. Two integration Support Pacs for our Business Rules Management offering, which assist organizations in continually improving automated decisions. WebSphere Business Monitor integration Support Pac for JRules by supporting the aggregation of rule execution data with data from other applications, customers can more easily determine business performance, trends and potential problems through highly meaningful dashboards and reports, – in addition, Business Monitor can use rule execution data to trigger alerts to both people and systems. Predictive analytics integration Support Pac for JRules this integration with analytics technologies (such as IBM SPSS Modeler) allows for predictive models to be used as part of rule-based, automated decisions, improving decisions related to areas such as risk, fraud and propensity-to-buy.
Main Point: Cloud-based offerings like BPM BlueWorks and Blueprint provides an ideal entry point into BPM for organizations that need to build skills and expertise as well as drive collaborative process discovery Speaker Notes: Discovery & Design serves as a very common entry point into BPM, especially for organizations without extensive process knowledge or expertise. Many business users have an idea about the processes that drive their businesses, and are often aware when their processes are hindering business performance, but do not have the skills to truly understand end-to-end processes, and how to improve them to optimize their businesses. Cloud-based BPM tools and content, can help organizations develop the critical expertise necessary to build truly dynamic processes. With these tools Business Leaders, Business Analysts, and Business Professionals can create, share, and collaborate - leveraging pre-built BPM content and contributions from BPM experts and users around the world to move quickly from strategy mapping to process execution. Users can: Learn - The first step in building skills is to learn more about BPM, and how it can specifically help businesses improve and succeed. BPM BlueWorks provides detailed industry-specific BPM content tailored towards business users. Users can find whitepapers, case studies, and interactive demonstrations showing how they can apply BPM in their industry and business. Collaborate - BPM expertise isn’t built in a vacuum, and BPM BlueWorks offers tools that allow businesses to collaborate with a wider community of practitioners and experts. Users can read the latest thinking from BPM bloggers, pose a question to subject matter experts, and participate in forum discussions to learn from others’ experiences and capture best practices and lessons learned. Experience - BPM BlueWorks and Blueprint allow users to experience BPM – particularly exploring how processes can help them reach their business goals. Using cloud-based business design tools, businesses can develop strategy and capability maps that capture their goals, activities, and measures. By documenting strategies and capabilities, businesses can understand and capture high-level process data, and readily identify areas for improvement. As businesses ramp up their process expertise, IBM gives them the tools to begin working with their processes. Hosted tools in the cloud allow users to find, build, and extend process maps relevant to their industries. Optimize - businesses can leverage the expertise and process components developed in BPM BlueWorks and Blueprint to begin optimizing their business processes with the IBM BPM Suite. Process maps can be viewed and modified directly in BPM BlueWorks, and when users are ready to begin deploying new processes, these process maps can be directly loaded to WebSphere Business Modeler or Teamworks in their own environment.
Main Point: IBM Blueworks Live is new SaaS offering that enables a regular business person with little technical skill to automate processes they currently run over email, giving that person more control and improving productivity via a social, collaborative approach. IBM Blueworks Live combines the best of our two previous BPM in the cloud offerings: the community from BPM BlueWorks, with the process documentation of BPM Blueprint, and on top of that adds in exciting new automation capabilities, to create a first-of-its-kind, best in class new offering to improve processes. IBM BlueWorks Live helps turn the unstructured series of activities of real business people (conducted through documents, spreadsheets) into automated processes offering the benefits of visibility, understanding, insight and control. What's New: IBM Blueworks Live is new SaaS offering that enables anyone, anywhere to be a process expert and get better results for processes done over email, taking your team to the next level to collaboratively document and improve processes. With IBM Blueworks Live you are just 90 seconds away from improving the way you work Better than process-over-email • Easily manage and automate work run today through email; Instantly see status via built-in dashboards and reports; Directly take control of tasks and documents in processes Enables anyone, anywhere to be a process expert • Build process app in 90 seconds with checklist & approval templates; Document processes to easily start making improvements; Link your secure process information directly through your browser Takes you to next level of process improvement • Get better results with less effort via social, collaborative approach; Leverage public, expert communities to gain industry knowledge; Work seamlessly with WebSphere BPM for more complex processes Key Action (what do we want sales team to do): Drive customer adoption of BPM through IBM Blueworks Live . This is a great foot in the door; Cross sell to IBM BPM Suite Key Product Differentiators Easy to get started with BPM; Competitively priced; Easy to use / elegant and simple interface
Main Point: Completing an assessment will show you where on the scale of business agility your organization fits. As organizations build and adopt more capabilities, their agility matures, and they receive greater business outcomes. Speaker Notes: So what does an agile business look like? Once you’ve completed an agility assessment you can determine where precisely your organization lies. Many organizations today are developing a process focus that includes automation as well as process monitoring. As businesses increase their agility and leverage additional capabilities, the business value and outcomes increase accordingly. Let’s take a more detailed look at the different levels of agility that your business can attain. Level 1: Business processes are ad-hoc and workflows are minimally automated . Business users are dependent on IT to make process changes. Process redundancy is the norm. Business processes locked in application. Processes and KPI’s minimally documented. Metrics are not available and rarely used to track performance Level 2: Some level of process documentation and automation of human tasks. Business process integration is minimal. Execution traceable to strategic objectives. KPI’s defined but not adequately leveraged. Governance framework loosely defined. Level 3: Business Architecture defined. Business performance metrics are monitored and measured. Business Processes are standardized, explicit , visible , and reusable . Governance models in place for process management & improvement. Portfolio of business policies, rules, processes and services is managed. Level 4: Business driven process optimization . Business users can make frequent and regular business changes (processes, information, rules, or events). Business performance is measured and updated for continuous improvement . Business and IT can make frequent changes as IT model represents how the business operates Level 5: Business and IT are converged and have collaborated are prepared to handle unpredicted changes. Agile operating model in place that responds to unpredicted changes in business markets. Dynamic and context aware processes, services, and policies. Continuous Optimization and sustained innovation occurs. Business analytics flag and predicatively alert when business results are out of range and dynamically identify what could be changed
Main Point: You can fuel growth while still optimizing costs with a greater focus on your business processes. With new disciplines and technologies, now more than ever organizations have the opportunity and the imperative to increase awareness, understanding, and control over their business processes Speaker Notes: So, take control! You, too, can fuel new growth while still optimizing costs. Improving business processes is also key to driving new growth. As whole industries become vastly more efficient, you must look to balance efficiency gains and cost reductions with growth initiatives. Taking a closer look at exactly how your organizations execute, you can find better ways to understand, measure, and ultimately improve how they work. You can discover and document even ad-hoc and unstructured processes. Even those activities you might assume cannot be improved in any programmatic way. By creating definition and measurement around business processes, you can ensure more consistent, repeatable, and scalable business outcomes. Robust, agile technologies are delivering seamless connectivity inside and outside of the business, enabling dynamic processes to span across your business network with reliability and integrity. You can support processes with rich, integrated information that presents real-time insight about process performance in the right business context, enabling decision-makers to rapidly respond to emerging business opportunities. With new disciplines and technologies, now more than ever, organizations have the opportunity and the imperative to increase awareness, understanding, and control over their business processes. Improving business processes is also key to driving new growth. As whole industries become vastly more efficient, you must look to balance efficiency gains and cost reductions with growth initiatives.
Main Point: Aligning the engines of business agility provides your organization with a rich set of capabilities for process improvement. These include foundational process modeling, orchestration, and integration capabilities as well as extended value capabilities that increase agility for specific process scenarios. Speaker Notes: By aligning the engines of business agility, converging processes with a flexible IT infrastructure, and carefully aligning them with business intent and goals, you can bring in full and rich set of capabilities to drive process improvement. These include foundational capabilities that you would traditionally associate with process improvement and IT integration projects. Capabilities associated with “front office” activities include business design and process modeling. These activities, often performed by business or IT analysts, are critical to understanding current business processes, and discovering opportunities to improve them. Aided by the appropriate tools, analysts can easily capture institutional knowledge from process participants, and create executable process models that can be easily put into production to automate the improved process. On the back-end, foundational capabilities include the key process orchestration capabilities and the IT integration that supports the process. The value of process improvements are limited if the processes cannot be deployed in an automated fashion that drives consistent and repeatable outcomes. Capabilities that can effectively orchestrate these workflows, integrating people, systems, and information across the business network, are the cornerstone of agility for your organization. These rich orchestration capabilities must be able to seamlessly connect to applications and systems across the business network. Without robust connectivity, process hand-offs between systems will remain stubborn bottlenecks that limit process performance, and inhibit business agility. On top of these foundational capabilities, are additional capabilities that allow organizations to extend and enhance business processes – infusing greater agility into specific processes and even process steps to support all types of process projects.
