© 2006 IBM Corporation IBM Software Group SOA: The Key to Business Flexibility WebSphere Process...

© 2006 IBM Corporation

IBM Software Group

SOA: The Key to Business Flexibility

WebSphereProcess Improvement Workshop

Overview and preparation requirements

Hans Skalle

Workshop Facilitator

612-220-1880, [email protected]

2 SOA: The Key to Business Flexibility

WebSphere Process Improvement WorkshopTopics

Background – Why process improvement?

The WebSphere Process Improvement Workshop (PIW) – Overview

Sample Results

Preparation Requirements

2


WebSphere Process Improvement WorkshopTopics

Background – Why business process management? Business process overview

Introduction to Business Services

IBM’s Services Oriented Architecture (SOA) Lifecycle for continuous improvement

IBM’s WebSphere BPM suite


Sample Results


3


Business processes…

Coordinated chains of activities producing business value and results

Typically consist of:

Human activities (Human Workflow)

Business system activities (such as ERP, or CRM,…)

Combinations of human and system activities

Define how the business runs at an operational level

May be hidden or embedded:

In the organization and culture of a company

In the business systems of a company

Are often poorly understood

Reactively managed, improved


“Three-quarters of 160 companies surveyed recently believe they are flying their business processes ‘blind and without instruments.’ This lack of visibility, often due to old application software, is inhibiting all levels of management from seeing bottlenecks

in such critical processes as capital risk management, claims tracking, compliance, inventory management, and customer service.”

Source: AberdeenGroup, The Business Process Management Benchmark Report, October 2006

Companies that have implemented Business Process Monitoring systems are seeing results…

An average 9% improvement in revenues

A median 12% decrease in process-related expenses

A 10% return on assets (ROA)

An 18% return on investment (ROI)

94% are moderately or very pleased with the overall improvement Business Process Monitoring has delivered


Pressure to grow, innovate and drive costs down – Business Process Management (BPM) is critical

According to Gartner, pressure is coming from global competition, especially around price, which is commoditizing many businesses, and compliance with regulatory requirements such as the Sarbanes-Oxley Act.

“To meet these challenges, organizations must find ways to better manage their business processes — that is, the ways in which they operate.”

– Gartner's Position on Business Process Management, 2006

According to Gartner, pressure is coming from global competition, especially around price, which is commoditizing many businesses, and compliance with regulatory requirements such as the Sarbanes-Oxley Act.

“To meet these challenges, organizations must find ways to better manage their business processes — that is, the ways in which they operate.”

– Gartner's Position on Business Process Management, 2006

Two factors are now enabling BPM:

• The advance of BPM technology (BPM Suites) and technology standards for Services Oriented Architectures (SOA), XML and Web services.

• The spread of Six Sigma and other process improvement methods, and the availability of process modeling tools for business analysts, in addition to architects and IT professionals.

Two factors are now enabling BPM:

• The advance of BPM technology (BPM Suites) and technology standards for Services Oriented Architectures (SOA), XML and Web services.

• The spread of Six Sigma and other process improvement methods, and the availability of process modeling tools for business analysts, in addition to architects and IT professionals.


Flexibility through Business Services

Business process logic will no longer be deeply embedded in application code, where it is locked away and expensive to change. Instead, process

logic will exist in the form of high value business services that are reusable. Processes using these services will be much more flexible and cheaper to maintain over time, allowing businesses to achieve dramatic

results in responsiveness, cost effectiveness and profitability.

Service Components are reusable building

blocks

Flexible, componentized business processes


Improving performance – Service-driven realignment

Div B

Div C

Div A

SALES FINANCESUPPLY CHAIN

Corporate

Billing

A/R

Orders

OTC

CU

ST

OM

ER

Component reuse within and across processes drives costs down even more over time

Examples: Credit authorization

As we create the future-state model we’ll look for opportunities to use Business Services to improve performance

Reusable Business Services

Customer self-service


IBM’s Services Oriented Architecture (SOA) framework for continuous improvement

Multi-dimensional framework designed to enable and sustain continued high performance Managed interactions between people,

processes and information

Model-driven implementation cycle

Governance framework supported by Registry and Repository

Enables the gap between business and technical design to be bridged

The WebSphere suite includes tools to measure and report process performance, supporting data-driven process management


Supporting continuous improvement and innovationThe WebSphere BPM suite

WebSphere Business Modeler

WebSphere Integration Developer

WebSphere Process Server

WebSphere Business Monitor

Simple to use process modeling for the business analyst to help maximize process and business

resource re-use

Easy-to-use graphical tools to simplify and speed the assembly

of composite applications

Flexible deployment of business processes, making plug-and-play of components

a reality

Real-time visibility into process performance enabling process

intervention and continuous improvement“IBM has the broadest SOA platform…”

Source: Forrester Research, Dec 21, 2005

“IBM has the broadest SOA platform…”

Source: Forrester Research, Dec 21, 2005


WebSphere Process Improvement Workshop KickoffTopics

Background – Why business process management?

The WebSphere Process Improvement Workshop (PIW) – Overview Activities and scope

The PIW process

Sample results


11


IBM Process Improvement Workshop (PIW) – Scope

ConsultingServices

Engagement

WebSpherePIW

Goals:

• Demonstrate Modeler value, capability

• Demonstrate five-step improvement method

Scope:

• Business (vs. technical) modeling

• Sub-process (limited to +/- 20 tasks)

Simple Complex

2-3 days +/-1 week

On-site:Elapsed:


What to look for in the current and future states

Current state process

Bottlenecks and constraints

Rework, errors and exceptions

Missing, incomplete information

Fragmented processes held together through spreadsheets, re-keying, informal workarounds

Numerous approvals and audits

Sequential activities creating delays

Paper-based processes

Lack of measures, performance indicators

Decisions based on feelings vs. facts

Processes that are too slow, too costly to be competitive

Future state process

Improved process

Streamlined with automated workflow

Exception-based including alerts and escalation (out of bounds conditions and time triggered)

Improved access to accurate information through integration

Rules-driven approvals and routing

Use of managed parallel activities

Dashboard monitoring and decision-making based on real-time Key Performance Indicators, results

Improved ability to respond to and implement required regulatory controls

Reusable business services


Placing the scope of the PIW on the prioritization and evaluation matrix

Initiative A Initiative B Initiative C Initiative D

Scope of PIW

Associated with a key, meaningful

initiative

Associated with a key, meaningful

initiative

Lower effort

Lower, non-strategic value

Higher strategic value, linked to key initiative

Greater effort

Payback

Simulation may be used to assist with the calculation

of payback and positioning

Reengineering project


WebSphere Business Modeler – Five steps to continuous process improvement


Define and Align Objectives

Assess and Analyze

Model Current State and Gather Data

Cycle of Improvement

Model Future State, Evaluate Options

Implement and Manage

Link to core process and/or key initiative

Define improvement objective (e.g. “Reduce process cycle time by…”)

Model exception paths including required corrective action

Gather and load cost and time (duration) data

Classify activities (e.g. value add vs. rework) Develop a simulation test plan Simulate “As-Is” process to identify

bottlenecks and high cost areas Prioritize improvement opportunities

Look for opportunities to automate (e.g. workflow, integration vs. re-keying)

Model alternatives and rank by payback (use a simple matrix)

Gather feedback on the proposed process

Develop pilot and implementation plans

Create measures Assign technical

attributes Implement, Monitor

performance


WebSphere Process Improvement Workshop process

Onsite WorkshopPre-Workshop (approx 1 – 2 wks) Post Workshop


Customer LOB SMEs

Create draft current-state model, project

tree, Exec ppt


Provide documentation (Visio, procedures, forms, input sheet)

Identify process, set expectations

regarding scope

Execute next steps

IBM Sales RepresentativeCustomer

Prepare Executive presentation, next steps summary


IBM Representative Discuss workshop

value, process and determine dates

Possible next steps: Proof of Technology lab Additional workshop(s) Software Investment

You are here

Workshop FacilitatorCustomer Representatives

Conduct Process Improvement

Workshop

2 to 3 Days


Day One

Conduct Process Improvement Workshop – Day One

Deliver kickoff presentation to level-

set expectations

Approx 2 Hours

Review current state and agree on/refine

scope

Approx 2 Hours

Model current state using WebSphere Business Modeler

Approx 4 Hours

Current State

Day One: Establish boundaries, model and/or review the current state


Day One

Conduct Process Improvement Workshop – Day Two

Deliver kickoff presentation to level

set expectations

Approx 2 Hours


scope

Approx 2 Hours


Approx 4 Hours

Current State

Day Two

Review current state and brainstorm future-

state improvements

Approx 1 Hours

Create future-state process model

Approx 4 Hours

Compare current- and future-state models

(simulation)

Approx 2 Hours

Future State

Day Two: Brainstorm improvements, model the future state


Conduct Process Improvement Workshop – Day Three

Day One

Deliver kickoff presentation to level

set expectations

Approx 2 Hours


scope

Approx 2 Hours


Approx 4 Hours

Day Two

Review current state and brainstorm future-

state improvements

Approx 1 Hours

Create future-state process model

Approx 4 Hours

Compare current- and future-state models

(simulation)

Approx 4 Hours

Current State Future State

Day Three

Package results, create Executive

Presentation

Approx 4 Hours

Deliver Executive Presentation

Approx 2 Hours

Agree on next steps

Approx 1 Hour

Next Steps





Sample Results


20


Sample ResultsCustomer background

Had used Visio to document processes Inconsistent from modeler to modeler No ability to simulate Some modeling standards in place Various symbols used for Task attributes

Six Sigma company First major Six Sigma initiative Worked with a newly formed Six Sigma project team User of Six Sigma’s Design, Measure, Analyze, Improve, Control

(DMAIC) methodology Very talented team

Strong engineering and manufacturing backgroundsExperienced with statistical process analysis


Sample ResultsPIW Activities

Pre-workshop Activities Customer provided VISIO diagrams, documentation Imported prior to the on-site workshop

On-site Activities Refined and validated current state process flow

Resolved VISIO symbols that did not map to BPML constructs Added model attributes including time and cost

Conducted simulation and analysis using basic techniques Analyzed standard time and cost reports Identified problem areas, constraints

Identified improvements based on problem areas Created the proposed future state process model Ran simulations and conducted comparative analysis

Analyzed standard time and cost reports Analyzed Comparative reports

Created and delivered executive presentation to sponsors


Process Improvement Workshop – Visio import

Minor Visio clean-up was required for import

Model was completed by resolving and adding

required BPMN components

Model was completed by resolving and adding

required BPMN components


Process Improvement Workshop –attributes added


Process Improvement Workshop – current state simulation


Process Improvement Workshop – evaluated improvement options

Potential Areas of Improvement Consolidate / Eliminate Tasks

Maximize the use of Parallel paths

Increase probability of most desirable paths

Reduce task durations

Modify resource requirements

Automate tasks or sub-processes

Implemented in the To-Be model


Process Improvement Workshop – Process Comparison





Sample Results


28


Typical Process Improvement Workshop Timeline

Week 1

Prep Work (checkpoint calls as required)

Workshop (2-3 days)

Deliver Executive Presentation*

Week 2 Week 3 Week 4

Kickoff Call

Complete Data

Collection

Complete Current- and Future-state Process Models

*Note: Executive Presentation typically delivered on the last day of the workshop or shortly after.


Pre-workshop preparation requirements and timeline

Timeframe Customer IBMDay 1 (approx. 1 hr)

Sponsor organizes initial Preparation Kick-off call

Meet with Sponsor and discuss objectives of initial Prep kick-off call and determine required attendees

Week 1 – Day 1 (approx. 1 hr)

Sponsor and key participants attend the PIW Preparation Kick-Off

Conduct Preparation Kick-off meeting. Review workshop methodology, set expectations and determine timeline.

Week 1 (approx. 4-8 hrs)

Identify applicable business processes and select one simple process

Provide guidance on scope

Week 1 thru 2 (approx. 4-8 hrs)

Sponsor arranges room, invites key stakeholders for Executive Presentations, and schedules process SMEs for workshop

Prepare Executive Kick-off Presentation.

Week 1 thru 2 (approx. 3-5 days)

Process SMEs gather and provide process documentation (Visio, forms, procedures).

Draft current state model in WebSphere Business Modeler. Provide guidance for data collection. (optional Data Collection worksheet)

End of Week 2 (approx 2 hrs)

Review draft current state model Refine draft process model prior to workshop


Process Improvement Workshop Resource Involvement

Customer

Executive Sponsor – interested in the outcome, attends the PIW Kickoff and final Executive presentation

Client Lead - coordinates customer activities, active in preparation of executive presentation

Process SMEs – familiar with business process, conducts data collection for one simple business process, participates in workshop

Key Stakeholders – interested in the outcome, attends the PIW Kickoff and final Executive presentation, influences decision to move forward

IBM

WebSphere Sales Rep – opportunity owner and manages client relationship

PIW Lead – manages PIW process and workshop, delivers PIW Executive Presentation (may also be Modeling Specialist)

PIW Modeling Specialist – assists client with data collection and selection of one simple business process, facilitates discussion and creates As Is and To Be models during workshop, conducts demo during Executive Presentation


Backup


Insurance Industry “New life policy” process – example

Insurance company, high cost, slow turn around for new business life policies Paper based process, dependent on the resources constrained agents Expensive High Underwriter involvement Very Static and prone to losing documentation

Modeled future-state process Added portal at the front-end Converted paper requests to electronic format Process streamlined and automated

Business Value The weighted average cost for this process

As-Is $16.75 To-Be $14.72 The duration for the process

As-Is 7 hours To-Be 3.5 hours


Cross Industry Customer Record Update Process – example

Management is concerned about the accuracy and timeliness of the process and the eventual impact to business productivity Sales, credit, and customer service use separate applications, using

manual entry

Improved process WebSphere Process Server and adapters to automatically detect new

customers in SAP R/3, new data is sent to the appropriate applications, including the supplier

Business Value Information is available in real-time and is accurate The weighted average cost for this process:

Current: $44 Future: $22 The duration for the process:

Current: 4 hours Future: 4 minutes


Activities Establish process boundaries and link the process to business goals and benefits Model the activities that make up the current-state process including decisions, failure

points and exception paths Document inputs/outputs, resources, roles, along with duration and revenue/cost values. Identify changes to the process that would result in an improved, workflow- and/or

services-enabled alternative and model the future-state process Develop simulation test cases and perform static and dynamic analysis Discuss Key Performance Indicators (KPIs) and implementation attributes

Deliverables Current- and future-state simulation results, process diagrams

Participants Customer: LOB executive sponsor, business process SMEs, IT architects IBM: Process modeling experts, technology specialists

A three-day educational and problem-solving work session during which we document a current business process,

define a high level technology-enabled alternative process, and compare the two using WebSphere Modeler’s

advanced simulation capability

WebSphere Process

Improvement Workshop


WebSphere Business Modeler – Five steps to


New process design

New ProcessDesign Cycle

Define Requirements and Align Objectives

1

Evaluate Building Blocks for Reuse

Create Process Model(s) and Test

with Simulation

(Pilot) Implement and Manage

Establish Key Measures, Examine

Best Practices

4

5

2

Goal: Use the building blocks – global tasks,

sub-processes, services – to design and “wire

together” new processes

Goal: Use the building blocks – global tasks,

sub-processes, services – to design and “wire

together” new processes

3


Business Process Management combines business expertise and enabling software

Expertise that Delivers BPM• Process Knowledge

• Industry Methods and Models

• Business consulting expertise

Software that Enables BPM• Tools, Rules

• Dashboard, Forms

• Repositories

Business Process ManagementBusiness Process Management

Business Process Management is a differentiating business capability combining software capabilities and business expertise … through people, systems, and information to accelerate process improvements and facilitate business innovation

Date post:	16-Jan-2016
Category:	Documents
Upload:	silvester-stanley
View:	213 times
Download:	0 times

© 2006 IBM Corporation IBM Software Group SOA: The Key to Business Flexibility WebSphere Process...

Documents