The Path to Business Transformation Though Business Process Management Suites (BPMS)The Path to Business Transformation Though Business Process Management Suites (BPMS)
Dr. Setrag KhoshafianVice President of Product Marketing and BPM TechnologyPegasystems Inc.
2 Pegasystems 2010
Survey Question
Which best describes your current thoughts/feelings?
A) I am eager to learn. Teach me Jedi Master!
B) I am concerned you are going to try and sell
me Pega Software
C) I can’t wait for Casino Night
D) My boss forced me to come here
3 Pegasystems 2010
BPM Suites: What Are They?
BPM Suites: Who Benefits & Why
Modernization & Transformation
The Problem: Execution Gaps
5 Pegasystems 2010
Today’s Rules: Be Agile or Lose
DRIVERS • Increased Pressures • Demands for Transparency• Legislation
EFFECTSEFFECTS
Increased CostsIncreased Costs Poor ServicePoor Service Operational InefficienciesOperational Inefficiencies
Costs
Business Rule ChangesBusiness Rule Changes
FREQUENCYMA
GN
ITU
DE
6 Pegasystems 2010
Management Goals
Systems
Office Service Operations Product Administration
Business Change Drives Execution GapsBusiness Change Drives Execution Gaps
The Challenge…
Office Service Operations Product Administration
…Execution Gaps!
8 Pegasystems 2010
Eliminate execution
gaps: efficiently build
enterprise solutions
Automate work &
manage cases
Monitor, improve &
optimize business
performance
Change, reuse & Specialize
BPM Suites capture, automate, and optimize policies & procedures.
9 Pegasystems 2010
Survey Question
Which of the three is most important to your organization?
A) Efficiently Build to Close Execution Gaps• Quick time-to-value
• Reduce IT costs
• Reduce time to build
• Reduce time to maintain
B) Automating Work• Reduce operation costs
• Reduce manual errors
• Reduce work duplication
• Reduce resource costs
C) Monitoring & Optimizing Business• Reduce manual reporting
• Increase visibility
• Lower/manage risk
• Lower maintenance costs
11 Pegasystems 2010
Directly Executable Business RequirementsBPMS Put Changes in the Hands of Business and IT
Business Friendly tools allow the business and IT to define business requirements directly in the systems
Working models replace paper specifications & requirements and auto generates documentation
Manages the projects: business justification, planning, deployment
12 Pegasystems 2010
What You Model is What You Execute
• Instantaneous testing and execution with playback feature
• Provides immediate feedback and acceptance testing with business stakeholders
• Business owners can test and make changes
13 Pegasystems 2010
BPM Suites Offer Rules Driven Process Execution
Integration(SOA/WOA/EDA)
Rules
UI Rules
(multi-channel
508 accessibility)
Security
Rules
Event RulesDecision
Rules
Expression
Rules
14 Pegasystems 2010
Survey Question
BPM Suites provides working models that…
A) Allows Business and IT to capture and define business requirements
B) Replaces paper specifications & requirements
C) Executes with Business Rules to drive work to completion
D) Magically generates project and technical documentation
E) All the Above
16 Pegasystems 2010
Automate the Work
CUSTOMERS
Just-When-Needed
Retrieval
Best
Source
Priority
Cases &
Folders
Skill Based
Routing
System-Driven
Processing
Automated
Transactions Guided
Processing
Tailored
Interactions
Proactive
Follow-up
Web
Services
Browser
Scan &
Fax
Telephony
Model &
Simulate
Productivity
& Quality
Alerts
Open
DatabaseProcedural Declarative
17 Pegasystems 2010
Intent Driven, Process Technology
FormsData SourcesProcesses Rules
Customer Channel
Solution
Specialization
Regulations
Business Intent
Call Center
Web Self Service
Field Office
Channel
Features
Citizen Relationship
or Circumstance
Organization &
Language
18 Pegasystems 2010
Structured Case
PredictableWorkflow
Short Duration
Semi StructuredCase
Dynamic CaseUnstructuredCollaborativeLong Duration
Knowledge Worker
Knowledge Assisted Worker
Clerical Worker
Sweet SpotOf
Smart Case Management
TraditionalProduction/StructuredWorkflow
Case EnabledWork Automation
19 Pegasystems 2010
Benefits Case Management
Case: Application for Benefit
Review Application
Interview Applicant
Conduct Screening
Verify Employment
Perform background
check
EnrollPayment of Benefits
Periodic payment
Periodic Re-certification
Fraud Investigation
Contact Employer
Review Tax Filings
Income verification
Background check
Military service history
Attachments
Prior Application A
Prior Application B
Prior Application C
Related CasesCaseworkers
Adjudicator Manager
Adjudicator
Channels
Applicant
Employer:
Wages
inaccurate
Ad Hoc Actions
Request Manager Review
Manual Review of Application
Request Additional Information
Tasks &
Subcases
Citizen
Phone Mail
FaxOnline
Email In-Person
Contact Employer
Subcases
20 Pegasystems 2010
Ad-Hoc, and Collaborative Case Management
Citizen: case subject
Case Workers
Citizen: case subject
Citizen: case subject
23 Pegasystems 2010
Knowing how you got to a particular place in a
process helps you see the forest for the trees
“How did I get here?”
25 Pegasystems 2010
Enterprise Repository� Testing
� Versioning
� Reuse/Specialization
� Auditing
� Searching/Navigating
� Access control
� BPM processes for
management
� Instant deployment
� Rollback
BPM Suites Enterprise RepositoryA single repository to change, deploy, specialize, & re-use
26 Pegasystems 2010
Common Practices
Add Differences to Specialize
Learn By Doing
Citizen A Citizen B Citizen C
Specialized Benefits Offering Other Benefits Offering
Specialize Services
Benefits Offering 1 Benefits Offering 2
Enterprise-wide Standards
BPM Suites & Solution Frameworks
Manage Sophisticated Organizations
Standard Benefits Offering
Value Added Services 2English Spanish
Pilot
Specialize Rules to Adapt and Innovate
28 Pegasystems 2010
Survey Question
Who Benefits from BPM Suites?
A) Business/Program Areas
B) Citizens
C) Knowledge Workers
D) IT
E) Everyone – All of the above
29 Pegasystems 2010
• Ability to respond to market demands and build for change at lower costs
• Consistent customer service experience tailored to their needs
• Empowered to focus on the task at hand vs. the process nuances
• High productivity environment enables IT to respond &deliver on promises
Who Benefits from BPM?- Everyone -
BPM
30 Pegasystems 2010
Example: As-Is State
Claims workers switch & toggle multiple screens: IT and Operator
Policies (business rules) need to be made in different systems: IT and
Business
Little visibility, governance and control of work: Operator and Business
31 Pegasystems 2010
Example: BPM Suites SolutionChanges made in one BPM Enterprise
repository: IT and Business
Business Empowered to make changes to the rules: Business and IT
Workload Balance: Operations and Business
Eliminate some of the incumbent systems: IT
Manage the Service Levels: Operations and Business
34 Pegasystems 2010
Legacy 1 Legacy 2 Legacy 3 Legacy 4
Service Service Service Service
Infrastructure
Composite Service Composite Service Composite Service
Business Performance Objectives
Bo
tto
m-U
p
Architecture
Imp
rove
me
nts
To
p-D
ow
n
Bu
sin
ess P
erfo
rma
nce
Imp
rove
me
nts
BPM Enterprise Repository
Top Down BPM Suite Rhythm of Change
BPM Suite
35 Pegasystems 2010
Incre
ased B
usin
ess V
alu
e
Incre
ased A
gili
ty
Guid
ed H
um
an Inte
ractions
Building for Change
Legacy 1 Legacy 2
Service Service Service Service
Infrastructure
Legacy 3 Legacy 4
BPM Suite
ConnectorsServices
36 Pegasystems 2010
Impact/Risk Matrix:
Less Risk More Risk
Le
ss
V
isib
ilit
yH
igh
V
isib
ilit
y
Complexity
Bu
sin
es
s
Vis
ibil
ity
Think Big …. Start Small
Slivers
37 Pegasystems 2010
Selecting the “low hanging fruit” slivers for modernization
Business Value
Variability / Agility Measure
Maintainability Measure
Complexity Measure
Re-Use and Specialization Measure
Automation Measure
Business Rules Measure
39 Pegasystems 2010
Survey Question
Which best describes your current thoughts/feelings?
A) I want to learn more about BPM Suites
B) Dang it! You just tried to sell me Pega Software
C) I still can’t wait for Casino Night!