Presentation Title:Utilizing Business Process Management (BPM) and Enterprise Architecture (EA) to Achieve and Maintain a Competitive AdvantagePresented By:Joe HenneberryARIS Practice ManagerIDS Scheer Canada

Introduction

Business Process Management / Enterprise Architecture Primer

Business Process Management Approach at Merrill Lynch

Client Account Opening Process

Developing a Business Process Architecture

Benefits of a Business Process Management ApproachAgenda

IntroductionMerrill Lynch The CompanyMerrill Lynch is one of the world's leading financial management and advisory companiesOffices in 36 countries Total client assets of approximately $1.6 trillionLeading global underwriter of debt and equity securitiesThrough Merrill Lynch Investment Managers, the company is one of the world's largest managers of financial assets. Firm wide, assets under management total $479 billion.

IntroductionMerrill Lynch - The ChallengeDetermine root cause of Pain Points of the Account Opening Process which were discovered through previous customer surveysImprove initial point of contact with customersUnderstand the complexities of Merrill Lynchs Client Account Opening Process which spans multiple products, organizations structures, application systems and data stores.

IntroductionMerrill Lynch The SolutionUtilize a Business Process Management (BPM) methodology to understand the complexity between KPIs, business processes, application systems, data and organizational systems.The BPM application selected was IDS Scheers ARIS Platform with its inherent ARIS methodology

BPM / EA PrimerBusiness Process ModelingArticulated and maintained end to end business process models used to manage process strategy across business and organizational silos.

Enterprise ArchitectureArticulated and maintained models which map the processes to data, applications and infrastructure to manage the elimination of redundant data, software and hardware.

Business Performance ManagementIntegration of Key Process Indicators (cost, timing, resources) from the legacy applications into the business process models for real-time management dashboards for day-to-day management.

Business Process Management SystemsLeveraging Service Oriented Applications (SOA) and Business Rule Engines as a integration layer on top of legacy applications to implement solutions and empower the business to design and implement process changes.Articulated and maintained Business Process Modeling is the core for business Process Management (BPM)

BPM Approach at Merrill LynchDetermine enterprise initiativesDevelop business processes that are in line with business objectives and KPIsCreate enterprise repositoriesOrganizational structuresApplication systemsDataProductsProcessesManage Tactical ProjectsNarrow scope by tactically focusing on specific areas of concernDont model the world

BPM Approach at Merrill LynchMerrill Lynchs BPM End User Interface

Client Opening Account ProcessThe ARIS Methodology was used to decompose and document a current state As Is analysis. The As Is analysis consisted of:Step 1 - Qualitative As Is Analysis: Architecture analysis focusing on Organization structure (e.g.. hierarchies, org responsibilities, fragmentation, org breaks)Products portfolio & structure (e.g.. number & structure of products, differentiation between products) Process architecture (e.g.. flow through the organization, fragmentation, automation, level of standardization)Application system inventory (e.g.. number of systems, information flow, fragmentation)Data repository (e.g.. number of data clusters, storage of data, duplication, fragmentation)Pain pointsStep 2 - Quantitative As Is Analysis: Product quantitiesProcess timesProcess costsEmployee utilization

Client Opening Account ProcessOrganizational ViewThe organization structure of ML GPC is mapped in the organization view. The hierarchy is decomposed from top to bottom showing the Names of the organizational units and positions. These objects are re-used in the processes.

Client Opening Account ProcessProduct ViewThe Product structure of ML GPC is mapped in the product view. A decomposition of available product & services is shown in the product & service tree.

Client Opening Account ProcessProcess ViewThe New Account Opening process flow is described in the process view.A high level value chain showing the main steps & responsible Organizational Units is broken down into a detailed process with the functions, the position executing these functions & the system supporting them as well as the in-& output of each activity.The average processing time per function & probabilities per decision are recorded and allow process time calculations. The cost rates for the position that execute the functions are mapped and enable process costing.

Client Opening Account ProcessData ViewThe data structure of ML GPC is mapped in the data view. The hierarchy is decomposed from top to bottom showing the data clusters for the different products; the data clusters are then broken down to the different Entity Types that they contain. The clusters are re-used in the processes.

Client Opening Account ProcessApplication System ViewThe application system structure within ML GPC is mapped in the Application View. The hierarchy is decomposed from top to bottom showing the different systems used in the processes. These objects are re-used in the processes.

Client Opening Account ProcessPain Point Tree More than 100 Pain Points were considered during the As Is Analysis that were gathered during previous surveys and during the interviews (selection provided)

Developing a BP Architecture

Process Approach Overview

Merrill Lynch Global Private Client Services explored the use of creating a business process repository to capture and document all business processes for the division.

Approach

Top / down organization focused approachBottom-up process-focused approachIntegrate top-down and bottom-up approach through process decomposition

Developing a BP ArchitectureCreate top-down views of the organization

Developing a BP ArchitectureAt lowest levels of the organization define business processes

Developing a BP ArchitectureCreate organizational process buckets to capture generic business processes and create process from lowest process levels up

Developing a BP ArchitectureThe As Is process flows were the bases to create To Be process flows to quantitatively and qualitatively identify areas for improvement. The business benefits gained were:

Process visibility (end-to-end)Information RepositoryStreamlined processIncreased efficiency of applicationsIncreased data usageMitigation of pain points in the process

Benefits of a BPM ApproachAlignment of process flows to KPIsIntegrated understanding of how changes in process effect application systems, data, products and organizational structuresSignificant reduction in cycle time for introducing process changeCentral repository i.e. one point of referenceDecomposition of business processes from high level value added chains to process step analysis

Questions