Center of Excellence Peer to Peer Forum

Dr. Setrag Khoshafian,
C h i e f E v a n g e l i s t a n d V P o f B P M Te c h n o l o g y, P e g a s ys t e m s
April 11, 2014

© 2014 Pegasystems Inc.2
Overview of Session
 Introductions
 iBPM’s Impact to Your COE
 PegaWorld 2014 COE Panel Discussion
 COE Benchmarking Exercise
 Next Steps

Introductions
Chief Evangelist and VP of BPM
Technology, Pegasystems
Senior Director of BPM Adoption
Services, Pegasystems

Overview of Session
 Introductions
 iBPM’s Impact to Your COE
 Next Steps

Archaic Software & Methodologies (COE)
Keeps Hurting Your Business
COMPLICATED
SYSTEMS
DISJOINTED
CUSTOMER
EXPERIENCE
INEFFECTIVE
RESPONSE

Huge Disruptive Digital Business Potential …
… but there are challenges … especially for IT
Public Sector interviewees reported that
the speed at which new legislation can be
deployed is mainly determined by how quickly
the supporting IT solutions can be developed.
In some cases, even the content of the legislation
itself is influenced by what IT can or cannot deliver in time.

Disruptive Technologies are Empowering the
Business – and Endangering IT
 “Business is able to use their credit
card and provision solutions within
minutes!”

IT Tries to Modernize …
But Why Do Modernization Efforts Fail?

Big Bang Modernization Initiatives
SOA Modernization
Legacy 5 ERP 3 Legacy 6 ECM 1 MDM
Legacy 3 ERP 2 Legacy 4 DBMS 3 DBMS 4
ESB 1 ESB 2

Manually Coded
JAVA
Manually Coded
COBOL
Equating Modernization to a “Modern Language”

Model-Driven iBPM for The Digital Enterprise

Mobile iBPM
EMPOWER CHANGE & COLLABORATION
Familiar business
metaphors accessed
through a web
browser
Easy forms guide &
protect users
Working models
replace paper specs
& requirements
Automatically tailor
user experience to
device and channel

What is a Dynamic Case?
Case Subjects Collaboration
Tasks Case Events
Case Business Objectives Rules and Policies
Processes &
Dependencies
Case Data
Sub-Cases Case Content
Dynamic Case
Management
Case Stages

Social iBPM
UNIFIED, CONTEXTUAL, ACTIONABLE, ACCOUNTABLE
Users can quickly
communicate about
issues.
Here, Stephen helps
Manny solve a problem.
Amanda, a new
appraiser, can assess a
claim.Manny creates a task for
Amanda, the new appraiser.
Amanda gets the
assignment on her phone.
The conversation and actions are stored in
the case for later reference or audit.

Business
Rules
Business
Events & CEP Big Data
Analytics
Decision
Management
Process Intelligence

Business Rules
Decisions
Business Events
0110101010111100101110010101001110010101001110010101001
101010101011000011010100110010101001110011001010100111
10101010100010101001110010101001110010101001110010101001
1100010110110010111000010101100101010011100101010011100
000101011100010101001110010101001110011001010100111001
1010011100100101001110010101001110010101001110010101001
00101010011100101100110010101001110010101001110010101
Big Data
…
Block
2
Block
100
Block
1
Dat
a Good 1,000
Bad 120
Bad 60
Good 2,500
Behavior Value
1
2
3
4
ID
Predictive
Analytics
Past Experience
Predictive
Model
The “i” in iBPM: Intelligent

Business Intelligence to Intelligent BPM
Historic Reports Real-Time Actionable Events & Reports
OLAP Real-Time Process Optimization
Predictive Analytics Predictive and Adaptive iBPM
BusinessValue

Actionable, Intelligent, and Adaptive
Data
Good 1,000
Bad 120
Bad 60
Good 2,500
Behavior Value
1
2
3
4
ID
Predictive
Analytics
Past Experience Predictive
Model

IT
Business
Customer
The “M” in iBPM: Management
TA: Technology Strategy
Application Servers
ESB – EAI - MOM
HRLegacyFinanceERPECMDBMS
EnterpriseApplicationsandContent
Business
Solutions
Business
Innovation
Business
Objectives -
KPIs
Business
Requirements
Business
Change and
Agility
iBPM
Engage
Simplify
Change

IT Modernization,
Transformation, and
Digitization with iBPM

CUSTOMER DATA SCIENTIST BUSINESS ANALYST PROCESS IMPROVEMENT
EXPERT (BB, GB)
PROCESS ARCHITECT
New Roles for Business Transformation
CPOCCOCDOCMO
:Chief Digital Officer
:Chief Customer Officer
1
0
9
8
7
6
5
4
3
2
1
0
: Chief Process Officer
Chief Innovation Officer
Chief Transformation Officer
The Chief Digital Officer is
essentially the senior executive
responsible for helping the
organization transition into the
21st century digital economy and
digital society.
Irving Wladawsky-Berger
A chief process officer (CPO) is the
senior-most executive …. with
responsibility for an enterprise’s
business process transformation and
continuous improvement initiative.
Connie Moore
Transformation Roles
iBPM

Business Transformation through iBPM
Modernization
Integration Plumbing
Dynamic Case Management
Exceptions Case Management
HR Legacy Finance ERP ECM DBMSs
Agility
Layer
Process Excellence:
Real-Time Lean Six Sigma
Process Centric
Business TransformationCustomer Centricity
iBPM COE Team
COE
Manager
iBPM COE Leadership
COE
Chairman
Process
Champion(s)
IT Exec
Sponsor(s)
Business Exec
Sponsor(s)
iBPM COE
COE
LSA
COE
LBA
iBPM COE – Extended Team
Engage Directly / Guidance
Test
Lead
Infrastructure
Lead
DBA
Lead
Release
Engineer
Performance
Lead
PM
Project
Leadership
Delivery Partner
PM BA QALSA
Project
Team(s)
BA QA
LSA
Pega Consulting Resources
EL
Customer
Program
Governance
Governance/Guidance
LBA
Engage
Directly
Enterprise
Architect
Governance
Manager
Enablement
Lead
Process
Owner(s)
Security
Liaison
COE
SA(s)
Enterprise
Architect
COE
Manager
iBPM COE and Agile
Methodology
Customer Service
and Support (CSS)
Sales Force
Automation (SFA)
NBA Marketing
Empowering the Business
to Own the Change

Modernize through iBPM
Service Service Service Service
Legacy 5 ERP 3 Legacy 6 ECM 1 MDM
Infrastructure
ITValue
SystemofRecord
SystemtoSystem
IncreasedBusinessValue
SystemofInnovation
GuidedInteractions
iBPM

Modernization
Agility
Layer
Process Excellence:
Process Centric
iBPM COE Team
COE
Manager
iBPM COE Leadership
COE
Chairman
Process
Champion(s)
IT Exec
Sponsor(s)
Business Exec
Sponsor(s)
iBPM COE
COE
LSA
COE
LBA
Test
Lead
Infrastructure
Lead
DBA
Lead
Release
Engineer
Performance
Lead
PM
Project
Leadership
Delivery Partner
PM BA QALSA
Project
Team(s)
BA QA
LSA
EL
Customer
Program
Governance
Governance/Guidance
LBA
Engage
Directly
Enterprise
Architect
Governance
Manager
Enablement
Lead
Process
Owner(s)
Security
Liaison
COE
SA(s)
Enterprise
Architect
COE
Manager
iBPM COE and Agile
Methodology
Customer Service
and Support (CSS)
Sales Force
Automation (SFA)
NBA Marketing
to Own the Change

Engage the business at the beginning,
and keep them engaged
Business
Technologist

Business Can Own the Change
YesNo
Write-
Off?
If…
― Dispute Amount is less than $51
― AND Transaction is not disputed as a fraudulent transaction
― AND Customer has disputed less than two transactions this
year
Then…
YES: Fully credit the customer without even initiating the dispu
(i.e., Write-off the transaction)

iBPM COE Team
COE
Manager
iBPM COE Leadership
COE
Chairman
Process
Champion(s)
IT Exec
Sponsor(s)
Business Exec
Sponsor(s)
iBPM COE
COE
LSA
COE
LBA
Test
Lead
Infrastructure
Lead
DBA
Lead
Release
Engineer
Performance
Lead
PM
Project
Leadership
Delivery Partner
PM BA QALSA
Project
Team(s)
BA QA
LSA
EL
Customer
Program
Governance
Governance/Guidance
LBA
Engage
Directly
Enterprise
Architect
Governance
Manager
Enablement
Lead
Process
Owner(s)
Security
Liaison
COE
SA(s)
Enterprise
Architect
COE
Manager
iBPM COE and Agile
MethodologyModernization
Agility
Layer
Process Excellence:
Process Centric
to Own the Change
Customer Service
and Support (CSS)
Sales Force
Automation (SFA)
NBA Marketing

Think Big, Think Digital …but Start Small
Impact/Risk Matrix:
Less RiskMore Risk
Less
Visibility
High
Visibility
Complexity
Business
Visibility

Analyze iBPM
Enabled Legacy and
ERP Modernization
Opportunities:
Business Value,
Variability,
Maintainability,
Complexity
Phase0
Wrap ERP or Legacy
Systems and
Modules
with iBPM for
business value
Phase1
Modernize and
Replace Custom
Code with iBPM
Continue with
additional Wrap
ERP/Legacy
Modernization
Projects
Phase2
Rip and Replace
costly ERP systems
and modules
Continue with
additional
ERP/Legacy Wrap
and Modernization
Projects
Phase3

Sliver Iterations
Transiti
on
Development
Iterations
DeliveryPlanning
Measure and Improve
Stages
Social Collaboration
Cases, Processes, Rules,
Decisions, UI, Integration
iBPM
Real-Time Lean Continuous Improvement

iBPM COE Maturity
MATURITY
TIME
Establish iBPM
LOB COE
iBPM Corporate
COE established.
Best Practices
Defined and
Adhered to
iBPM Federated
COE model in place.
Business Maturity
with Common
Processes
1
iBPM Method
Adoption Building
Competence
Business Unit
Process / Rule
Architect
PM Leads
Program
Mgmt.
Sponsors / Steering Committee
Overall Oversight and Initiatives Prioritization
2
3
ClaimsLOB 1
RegionLOB 2
Process / Rule
Architect
PM Leads
Program
Mgmt.
4Project Tread:

Build For Change™…
Time
Conventional Solutions
Capability
iBPM Solution
60-90 Days

Overview of Session
 Introductions
 iBPM’s Impact to your COE
 Next Steps

PegaWorld 2014 Breakout
Center of Excellence Panel Discussion - Best Practices and
Benchmarking
 Please join us for an engaging panel discussion consisting of CISCO, Jabil, JPMC and BNY Mellon as
they present their Center of Excellence best practices. Attendees will also have an opportunity to ask
the panelists questions. As an additional benefit, the results of a 2014 COE benchmarking survey will
be shared with the audience, including the details of the panelists' responses. Specifically, come learn
about:
 How are the leaders driving Center of Excellence best practices and maturing their operation, what
hurdles did they overcome
 Preview where are you and other customers along the Center of Excellence Journey
 How can you address challenges and issues with live Q&A with our expert panelists

Overview of Session
 Introductions
 Next Steps

Benchmarking Survey

Overview of Session
 Introductions
 Next Steps

Next Steps
 Look for an email containing:
 Recording link for this session
 Link for getting a copy of Setrag’s iBPM: The Next Wave book
 Link for taking the benchmarking survey
 Please join us at PegaWorld 2014 for:
 COE Panel discussion
 COE Networking Lunch
 Invite for the next Peer to Peer COE forum
 Any questions / feedback please contact
Paul.Roeck@pega.com

Q&A

Center of Excellence Peer to Peer Forum

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