IBM Business Process ManagementOverview and Demonstration of IBM BPM In Action!
http://BlueworksLive.com
The simplest way to get started with BPM
Process Discovery“Modeling for Documentation”
The quickest way to deliver robust process applications
Process Implementation“Modeling for Execution”
[email protected]. Consulting BPM Solution Architect Open Group Master Certified SW IT Specialist
Goto > http://IBMBPMDemos.com for more information and resources
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Fortune 500 Companies:
$488B Lost in Process Inefficiencies
Fortune 500 Companies:
$488B Lost in Process Inefficiencies
Business Process Inefficiencies Represent $500B+ Opportunity
Source: Tech CEO Council Report Oct 2010: “BPM improvements can be expected to yield savings of up to 5% of sales”; CNN Money U.S. Fortune 500 Revenues, May 2010
Source: Tech CEO Council Report Oct 2010: “BPM improvements can be expected to yield savings of up to 5% of sales”; CNN Money U.S. Fortune 500 Revenues, May 2010
Federal Government:
$450B - $1.3T in Process Inefficiency Costs
Federal Government:
$450B - $1.3T in Process Inefficiency Costs
Source: McKinsey & Company The Case for Government Reform 2009, “5 to 15% improvement in efficiency of Federal government operations could generate $450B-$1.3T in savings.” Tech CEO Council Report Oct 2010.
Source: McKinsey & Company The Case for Government Reform 2009, “5 to 15% improvement in efficiency of Federal government operations could generate $450B-$1.3T in savings.” Tech CEO Council Report Oct 2010.
Process Improvement is the #1 Priority for CIOs - 5 years in a row
Gartner, Inc, “Leading in Times of Transition: The 2011 CIO Agenda”
Source: Sept 2010 Information Week 500 Survey
In a recent InformationWeek CIO survey, Process Improvement was the #1 priority for CIOs (56% of respondents): “Make business processes more efficient” was the top issue for respondents, even ahead of “Lower business costs” and “Improve customer service”.
In a recent InformationWeek CIO survey, Process Improvement was the #1 priority for CIOs (56% of respondents): “Make business processes more efficient” was the top issue for respondents, even ahead of “Lower business costs” and “Improve customer service”.
The New Normal: Change, Complexity, Uncertainty
50%Of businesses plan to adopt more
collaborative sourcing modelsOf businesses plan to adopt more
collaborative sourcing models
50 billionDevices connected to the Internet by 2020
$534 billionIn mobile
transactions by 2015
$488 billionLost in process inefficiencies
in Fortune 500 companies
70% Of businesses outsource one
or more strategic activities
85%Of enterprises use
external cloud servicesOf enterprises use
external cloud services
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To orchestrate human tasks…
… and for scalable transactions…
… to increase visibility…
… everything you need to manage end-to-end business networks
… to manage exceptions and cases…
Complexity exists within organizations and the broader business network Companies need end-to-end process management
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AutoLOBCommercial
LOB
HomeLOB
InsuranceCarrier
Agents & Producers
Partners &Re-insurers
Con-sumers
Out- sourced Service
Providers
Financial Institutions 3rd Party
Services
DMV
Con-sumers
InternalEmployees
Through robust and flexible software capabilities and industry expertise, BPM enables customers to discover, model, execute, rapidly change, govern, and gain end-to-end visibility on their
business processes
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What is Business Process Management ?
Visibility & Collaboration
Business User Engagement
Efficiency & Productivity
Documentation & Compliance
Analysis & Optimization
Deployment & Execution
Software
ExpertiseContinuous
Process Improvement
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Budget
Budget spent maintaining existing systems and processes
Budget available for new projects
Business Process Management (BPM)Save $Millions
With just One Sigma Shift in Process Improvement:
With just One Sigma Shift in Process Improvement:
Source: Six Sigma:The Breakthrough Management Strategy, Mike Harry, Richard Schroeder, 2000.Source: Six Sigma:The Breakthrough Management Strategy, Mike Harry, Richard Schroeder, 2000.
Time
• 20% margin improvement• 12 - 18% increase in capacity• 12% reduction in employees• 10 - 30% capital reduction
• 20% margin improvement• 12 - 18% increase in capacity• 12% reduction in employees• 10 - 30% capital reduction
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Typical Business-Driven Process ProblemsCommon symptoms that BPM is needed
‣ Human to Human and Human to System process activities
‣ Individual or group heroics make the process work
‣ Operational “fire” or fire drills are a common occurrence
‣ Poorly understood end-to-end process metrics
‣ One Sigma quality .. a 32% error rate(Small changes can yield large improvements)
‣ Process Changes 3+ times per year
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The Value of Business Driven Change
•Eliminating up to 80% ofthe “human touches” inInvoice Reconciliation
•Standardized Mall Branch •office processes and made •tasks easier for staff.
•Reduced time to •document and comply •with NERC regulations
•Built supplier on-boarding system for 40% less than code based alternative in 66% of the time
•Saves $2M per quarterby resolving Distressed
Shipments more effectively
Cut “engineering” time of designers on car systems
by 20% in one year.
•Identified issues in their lending process, eliminated bottlenecks and identified waste while adjusting to
2008-2011 economic turmoil
•Implemented Full Audit Trail for Compliance in their Grants Process – 1st major Pharma to be compliant
•End Cap Product Display Management, optimization and
delays identified months in advance
Efficiency Effectiveness Agility
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Process Improvement Requires A “Third Way”
Flexibility
Low cost/time
BuildBuild
BuyBuy
CustomizedUniqueHigh TCOIT bandwidth Reduced time
Initial CostStandard Feature setReliance on vendorResponse to Change
“Third Way”
++-- +
+---
Process-improvement requirements are likely to be unique, which favors build rather than buy. And the timeframes and costs of both are often not compatible with process improvement, so a ‘third way’ is required. - Analyst Community Consensus
BPM
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ExecutiveManagement
CustomerService
InvoiceReconciliationTeams
Finance and Ops
AccountAdministration
1
2
3
5
4
6
1. Unstructured Tasks and Communication (ex Paper or email)
2. Inefficient Working Environment Spans Systems
3. Inconsistent Prioritization
4. Incomplete or Inaccurate Data Flow Between Systems
5. Lack of Control Over System and Business Events (Exceptions)
6. Poor Visibility Into Process Performance
1
2
3
4
5
6
Typical process problems
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ExecutiveManagementCustomer
Service
InvoiceReconciliation
Team
Financeand Ops
Account Administration
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
• Metrics, measurements, visibility and business-friendly reports
• Rapid, Agile and Iterative process improvements
1
2
3
4
5
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BPM brings order to the chaos
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ExecutiveManagement
CustomerService
Risk ManagementTeams
Financeand Ops
AccountAdministration
• Modeling
• Monitoring
• Automation
• Governance
• Optimization
• Rules
• Business Data
• Documents
• Events
• Integration
• Collaboration
• Analytics
The essential BPM capabilities
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BPM Roles-based Development – Rapid, Agile and Iterative
Worker
BPM Developer
Business Analyst
Manager
Administrator
Process ModelerBPM
Shared ModelProcess Center
Process Designer
Process PortalAdmin Console
OptimizeDesign
Execute
Process Inspector
Process Designer
Process Optimizer
Process Portal
Scoreboards
UI Screen Flow Coaches
• Collaborative platform
• Iterative, shortened development cycle
• What you model IS what is executed!
• Single, Shared process model
• Lower technical effort (less time, cost, risk)
• Simplicity with Sophistication(Attractive to BOTH Business and IT)
Integration Developer
Integration Designer
BlueworksLive.com
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http://BlueworksLive.com
The simplest way to get started with BPM
Process Discovery“Modeling for Documentation”
The quickest way to deliver robust process applications
Process Implementation“Modeling for Execution”
IBM Business Process Mgr v7.5
Confidential15
The simplest way to get started with BPM
Process Discovery“Modeling for Documentation”
http://BlueworksLive.com
The quickest way to deliver robust process
applications
Process Implementation“Modeling for Execution”
IBM Business Process Mgr v7.5
Confidential16
How is Process Discovery done today?
‣Figure it out yourself‣Lock the team in a
conference room for day(s)‣Sticky notes‣Butcher paper‣Whiteboard drawings‣Back and forth till you finally
understand your process‣Scribe it all down‣Convert it to a
diagram/drawing
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Focused on participation
Single repository, built for process
Easy for novices, rich enough for experts
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BlueworkLive.com Simple Enough for Novices…Rich Enough for Experts“Process Discovery…Blueprint your process”
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The simplest way to get started with BPM
Process Discovery“Modeling for Documentation”
http://BlueworksLive.com
The quickest way to deliver robust process
applications
Process Implementation“Modeling for Execution”
IBM Business Process Mgr v7.5
Confidential20
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Shared AssetsVersioned Assets
Server Registry
Process Center
Repository
BPMN Process Rules Monitoring BPEL ESB
Process Server Process Designer
Integration Designer
Process Center Console
Out-of-box Process Portal
Optional Microsoft Add-ons
Configurable Business Space Widgets
IBM Business Process ManagerIBM Business Process Manager
Define
Deploy
Update
Measure
GovernanceGovernanceVisibilityVisibility
ManagementManagementManagementManagement
End User InterfacesEnd User InterfacesEnd User InterfacesEnd User Interfaces
DesignDesignDesignDesign
IBM Business Process Manager
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BPM in the IBM SmartCloudRapid, Agile Infrastructure – Spin up BPM in ~10min
‣ Gain the simplicity, visibility, governance and power of the most comprehensive BPM platform without sacrificing capital and resource budgets
‣ Kick off that ever important initial BPM project within minutes versus weeks by turning to the IBM Smart Cloud Enterprise
‣ Leave the scalability and security of your infrastructure up to IBM while maintaining control over the service level agreement required by your business
‣ Bring your own licenses or pay as you go, you can now take resource constraints out of the project to program roadmap and you can focus on delivering business value
Cloud 1 Cloud 2
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IBM Business Process Manager - Built on SOA Infrastructure
Systems
SOA
BPM
ExecutiveManagement
CustomerService
InvoiceReconciliation
Teams
Finance& Ops
AccountAdministration
IBM Business Process ManagerIBM Business Process Manager
– BPM can abstract the “business process” from underlying systems and services.
– Over time, IT can consolidate those services into a common set of services within one SOA layer.
– Users of the process are not affected as services and systems are merged, replaced, or updated.
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IBM BPM In Action
Simplicity with Sophistication: “Business friendly while IT Savvy”
Power with Integration Middleware
Visibility for Business Stakeholders: Dashboards, reports and more
Governance throughout Design-time and Runtime
IBM is the proven leader in all aspects of BPM
Largest Customer Base• #1 in Market Share • 5,000 + customers
Strongest Ecosystem• 1000+ business
partners• Global Users group
Unparalleled expertise, and level of investment
• Over 15 years of industry leadership
• 100’s of assets• Broadest, Deepest solution
portfolio & services
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Broadest and Most Differentiated Software Capabilities • Simplicity for fast deployment and full business user participation
• Centralized governance for repeatability and consistency• Visibility and Control to continuously improve business operations
• Power through High Scalability, Integrity & Quality of Service • Market Leading decision and rules capabilities
• Best in class exceptions handling and case management
Ensure success with a proven approach for adopting BPMM
atu
rity
Ch
alle
ng
esT
ech
no
log
yE
xper
tise
Succeed with an Initial Project
Establish a Program
Transform across the enterprise
Identify Business Challenge & Value
On-Demand Consulting Assistance Turnkey Services
Solution MentoringTraining
Simplicity to engage business users
Power to scale as business requires
Realize fast value, foster BPM adoption and create transformational impactRealize fast value, foster BPM adoption and create transformational impact
Visibility Rapid time to value Governance
Understand and document existing processes
Identify key improvement opportunities
Target high return projects
Leverage proven methodologies to ensure success
Increase skills Establish CoE
Optimize established projects
Extend to new projects
TransformationProgramProject
Infuse a culture of process across the
organization
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BPM Process Discovery & Modeling in the Cloud• Blueprint Process Modeling for inventory & mapping• Knowledge sharing & collaboration• Process analysis & prioritization
BPM Process Modeling & Implementation• Rapid process application development• Continuous process improvement• BPM program management
Education, Enablement and on-demand Services• Quick Win Pilots• Role-based education & mentoring• Expert Services when and where they’re needed
Links to Your Next Steps…IBM BPM Delivery CapabilitiesIncluding Education and Enablement Services
http://BlueworksLive.com
http://IBMBPMDemos.com
http://www.ibm.com/developerworks/websphere/services/
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Merci
Grazie
Gracias
ObrigadoDanke
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