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

1. IBM’s Vision
For Business Process Management,
Operational Decision Management,
and Service Oriented Architecture
Peter Beggs
National Certified Specialist for WebSphere
beggs@ca.ibm.com
© 2011 IBM Corporation

2. SOA Reference Architecture – what this session is all about
WebSphere WebSphere
IBM BPM 8.0 Operational Decision Business
Management Monitor
WebSphere MQ Business Innovation & Optimization Services
WebSphere ESB Facilitates better decision-making with real-
time business information
WebSphere
Message Broker
Development
DataPower Interaction Process Services Information
Services
Services Services
Enables collaboration Orchestrate and automate
between people, processes & business processes Manages diverse data in a
information unified manner
Manage and
secure
services,
Integrated ESB applications
environment &
for design resources
Info Assets
and creation Partner Services Business App Services Access Services
Apps &
of solution Connect with trading Build on a robust, Facilitates interactions with
assets partners scaleable, and secure existing information and
services environment application assets
Infrastructure Services
Optimizes throughput, availability and
performance
WebSphere
Integration
Designer
2 © 2010 IBM Corporation

3. The New Normal: Change, Complexity, Uncertainty
3 © 2010 IBM Corporation

4. 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
4 © 2010 IBM Corporation

5. 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.
5 © 2010 IBM Corporation

6. Why is Business Process Management Important?
A few questions…
Think of a key process…
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?
6 © 2010 IBM Corporation

7. Key Messages
In reality, though, Business Process Management has four ways it can add value:
1. driving operational efficiency and quality; Market Insight 2011 Outlook: BPM
Neil Ward-Dutton
2. driving product and service innovation;
December 2010
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.
7 © 2010 IBM Corporation

8. Why Look at Business Process Management?
Can you visualize how work gets Is it easy to reach into, “to see”, and
done? Do you know what people measure the business? In real-time?
do the most (you may be What can you do with those
surprised)? Are people working measurements?
effectively?
How do you decide what to change?
Is the process fast enough from How do you “business case” changes?
start to finish?
Is there too much manual work? Is it easy to change how you work?
too much paper? too many Can you analyze changes before
errors? making them? Are changes a
programming effort or a business
Need to ensure policies and analyst effort?
business rules followed?
Is the connectivity infrastructure
Is audit a concern? brittle? Hand-coded?
8 © 2010 IBM Corporation

9. Today, our current processes are challenged, and trapped
within each application - in Silos.
Critical
3 Care
1. Process Inconsistency
6
2. End User Complexity is
Ambulatory Program
Care Teams Management significant
3. Poor data quality.
Patient
Registration 1
Triage
Redundant manual data
entry
2 4. Inconsistent Prioritization
5. Lack of Control Over
System and Business
Events (Exceptions)
6. Poor Visibility Into
4 Process Performance
Problem:
5
• Missing Deadlines
• Tribal Knowledge
• Painful to change
9 © 2010 IBM Corporation

10. we need a Business Process Management (BPM) platform, to deliver a layer of
Control, Visibility, Standard Rules (Alerts) and Escalation that is Audited.
Critical
Care 1. Automate workflow &
decision making
Ambulatory
Care Teams Program
2. Reduce errors and
Management improve consistency
3. Standardize resolution
Patient Triage across geographies
Registration
4. Leverage existing systems
and data
5. Monitor for business
events and initiate actions
6. Real-time visibility and
Process process control
Customer Benefits:
• Huge Reduction in Manual
Work, Errors
• Faster, More Consistent
Issue Resolution
• Easier to Manage the
Business
10 © 2010 IBM Corporation

11. … built upon a Service Oriented Architecture (SOA)
Critical
Ambulatory Care
Teams
Program  Modeling
Management
 Simulation +
Optimization
Patient
Registration Triage
 Workflow
 Rules
Process  Business Data
Mgmt
 Human
Interfaces
SOA ESB
 Event Monitoring
 System
Integration
 Metrics
 Analytics
11 © 2010 IBM Corporation

12. The BPM
Lifecycle Assemble
Deploy
Process Discovery
Governance &
Processes
Manage
Model
12 © 2010 IBM Corporation

13. Innovative Solutions Are Required To Realize Real Value
10%
Decrease in Cost
84% $130M
Straight Through in cost savings
Processing
Tax Agency: Government Insurance Education:
A Latin America Tax Agency: Australia University of Chile
Agency
Through an on-line The Agency was able to The solution, based on
questionnaire founded on achieve 84-85% straight Operational Decision
Operational Decision through processing by Management, sorts
Management, the Agency implementing Operational proposals within
realized a 10% decrease in Decision Management to minutes, automatically
the cost of tax collection handle the complex rules selecting those that best
in their payment process align with the
requirements, resulting
in $130M in cost savings
13 © 2010 IBM Corporation

14. The Business Environment is Increasingly Dynamic
CEOs expect change to be more frequent and less predictable
More Volatile More Uncertain More Complex
Deeper / Faster Cycles, Less Predictable Multi-faceted,
More Risk Interconnected
Percent of CEOs who answered “To a large or very large extent” Source: IBM CEO Study 2010
14 © 2010 IBM Corporation

15. 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
75% are looking to “drive better
real time decisions.”
of CIOs with mandates to
expand cross-enterprise
72% growth are leading the
charge to “drive better
real time decisions.”
Source: IBM Global CIO Study 2011
15 © 2010 IBM Corporation

16. Day-to-day Operations Require Operational Decisions
Is this person who they say they are?
Eligibility Can we verify other services they receive?
Is this person eligible for this service?
Benefit How much aid do they qualify for?
Payments How to account for this exception?
Citizen Can we recommend additional services?
Servicing How to handle this appeal?
How to ensure fraud is not taking place?
Risk &
Do we have a record of that decision?
Compliance Can we adapt to the new regulations?
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
16 © 2010 IBM Corporation

17. Make Easy, Safe, Reliable Change with Decision
Management
Operational Decision Management
Where Business Rules typically exist
Rules are
Defined,
Analyzed &
Maintained
User Tools
Documents Rules are
Applications Databases Stored &
Shared
Repository
Rules are
Deployed,
Processes Executed &
People
Monitored
Decision Server
17 © 2010 IBM Corporation

18. Key Challenges Addressed by Decision Management
Adapt to Rapid Change
Align Across Business & IT
Act With Precision & Reliability
18 © 2010 IBM Corporation

19. Ensure success with a proven approach for adopting
BPM, ODM and SOA
Project Program Transformation
Technology
Rapid time Simplicity to engage Power to scale
Visibility Governance
to value business users as business requires
Expertise
Turnkey Solution
Training On-Demand Consulting Assistance
Services Mentoring
Maturity Challenges
Transform across
Establish a the enterprise
Program
Succeed with an
Identify Business Initial Project
Challenge & Value
Realize fast value, foster BPM adoption and create transformational impact
19 © 2010 IBM Corporation

20. 20 © 2010 IBM Corporation

21. Summary
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.
BPM and SOA are synergistic and each
adds value to the other
BPM technology has to be “part of the furniture”.
21 © 2010 IBM Corporation

22. thank you!
22 © 2010 IBM Corporation