Bpms, Putting Business In The Driver’S Seat

AGILEPOINT BPMSPUTTING BUSINESS IN THE DRIVER’S SEAT

T H E P E O P L E - R E A D Y M O D E R N B P M S

E N A B L I N G A G I L E A N D P R O C E S S - M A N A G E D E N T E R P R I S E S

Hans HantsonBusiness Development Manager ASCENTN EMEA Microsoft

BPAMember

BPMS, PU

TTING

BUSIN

ESS IN TH

E DRIVER’S SEAT

1

2

3

What is BPMS and why should I care about it

BPMS as enabler

Approach

4 Demo

WH

AT IS BPM ?

the practice of improving the efficiency and effectiveness of any organization by automating the organization's business processes.

allows you to bring processes, people and information together. BPM involves looking at automation horizontally instead of vertically.

BPM not only involves managing business processes within the enterprise but also involves real-time integration of the processes of company with those of its suppliers, business partners, and customers.

WH

AT IS BPMS ?

The BPMS is a new category of management software that opens a new era for IT-powered business infrastructure. It "enables” companies to model, deploy and manage mission-critical business processes, that span multiple enterprise applications, corporate departments, and business partners - behinds the firewall and over the Internet."

Dynamic infrastructure requires separation of flows, business rules and services

The “ideal” BPMS solution Connects to any system associated with the process Blurs organizational boundaries Supports compliance Monitors process status with eye toward continuous improvement

http://www.1000ventures.com/business_guide/mbs_mini_spartnerships.html

THE PARAD

IGM

SHIFT O

F PROCESS VALU

ES

On-Demand Automation

Efficiency

Adaptive Integration(Loosely coupled)

Front Office / Information WorkerEmpowerment

BusinessAgility

ContinuousPerformanceImprovement

BusinessValues

ofProcess

TimeChanging Business Drivers and Marketing Conditions

2nd WaveWorkflow &

EAI AutomationEfficiency

Since 1980’s

ProfitabilityDifferentiated

Competitiveness

3rd WaveBPM

Since 2001

Cannot keep up with changes or too expensive to re-automate

BPM H

ISTORY

1980’s = Business Process Reengineering (BPR) Design a simpler process, implement through a one-time organizational change; re-do

the factory flow Benefit

Improved performance within the enterprise Problems

Failed to provide agility, support ongoing change, or combine processes with partners

1990’s = Enterprise Resource Planning (ERP) Ingrained best practices in huge software applications

Emerged from MRP in late 80’s More inflexible Didn’t facilitate integration of business partners into processes Focused mainly on manufacturing & finance only Never really was “enterprise”

TODAY

BPM goals

End-to-end multi-company business processes built to adapt and enable outcome-focused solutions to problems

Share business processes across the enterprise, and with partners, to bring ultimate value to customers

WH

Y TAKE CARE OF BPM

?The pressure to become cheaper, better and faster and provide

a whole new level of customer-oriented service.

Trends which are supporting this shift: King customer is now a dictator Mass production shift to mass customization Customer are demanding total solutions Industry boundaries are blurring Value chains are becoming the unit of competition Collaboration and coo petition are replacing traditional forms of

competition Change has become the only certainty

EFFICIENCY <-> RESPO

NSIVEN

ESSEfficiency

• Long production runs• Standard products• Linear processes• Rely on market• Focus on cost optimalisation

Responsiveness / Agility

• Short production runs• Customized products• Circulair feedback loops• Innovation• Support new opportunities

Rigid Central Control Decentralized Coordination

Requires predictability and low changes

Continious Changes and creating more value

(Innovation)

INN

OVATIO

N AN

D AG

ILITY

Innovation = ExistingProducts

Services+

Added Value ||

End to End Services

Reduce time to deliver

40%

60%

Flexibility level of an organisation to adapt to newservices, products .... Quickly in order to increase profit

AGILITY

SALES LEVEL OF PRO

FIT

Sales

Sale

s le

vel o

f pro

fit

Time

Innovation

Max. Profit term Product gets market stream – Reducing

ProfitStart-Time, Build, Prepare

Traditional business development

Agility-Driven business development

Reducing S

tart-T

ime

Push M

arket-S

tream

More to fu

ture

Increase

Max

. Profit

Term

by small

er and quick

optimalisati

on

cycles

BPM TECH

NO

LOG

Y SPECTRUM

So, what ‘BPM’ are you talking about?

‘Process Foundation’ Infrastructure Play

OEM &Partners

AgilePoint

BUSIN

ESS PROCESS M

ANAG

EMEN

T

Total quality management

Six Sigma

Business engineering

General systems thinking

Application development

Systems integration

Vertical market focus

Service-oriented Architecture

Workflow

Transaction management

XML and Web servicesManagement

Theory

Modern Technology

BPM

ESSENTIAL BPM

CHARACTERISTICS – BEYO

ND

WO

RKFLOW

AU

TOM

ATION

Must be enterprise scalableCould involve everyone & systems in the

companyMust provide highly adaptive automation

Easy and fast process improvementRapid re-automation

Must facilitate change management & roll outMaximize re-useMinimize re-trainingVisual collaboration

Must deliver Information Worker Empowerment

Easily leverage IT assets by business users

Shorten lead time to meet customer demand

SUCCESS FACTO

RS

Business AgilitySuccess

Technology

Process

People

WH

AT DO

I NEED

?BPM IDE. Business Process Management (BPM) IDE is an integrated design environment used to design processes, rules, events and exceptions. Creating a structured definition of each process is very important to any business and the IDE enables a business user to design all processes with no help from IT.

Process Engine. The process engine of a Business Process Management solution keeps track of the states and variables for all of the active processes. Within a complex system, there could be thousands of processes with interlocking records and data.

User Directory. Administrators define people in the system by name, department, role and even potential authority level. This directory will enable tasks to be sent automatically to the defined resources.

WH

AT DO

I NEED

? (2) Workflow. This is the communication infrastructure that forwards tasks to the appropriate individual.

Reporting/Process monitoring. Enables users to track the performance of their current processes and the performance of personnel who are executing these processes.

Integration. Enterprise Application Integration (EAI) and/or Web services is critical to BPM as business processes will require data from disparate systems throughout the organization.

WH

AT ARE THE ADVAN

TAGES ?

BPM is excellent for processes that extend beyond the boundaries of an enterprise and communicate with processes of the partners, customers, suppliers and vendors.

BPM Gives businesses the agility to stay competitive

BPM reduces the time elapsed in a business process

BPM Increases the productivity per person

Business process consists of many steps. A typical BPM initiative reduces the number of steps by 50%.

A Business Process needs many people and resources. A good BPM should reduce the number of resources needed for the same process.

BPM helps improve coordination across departments and geographic locations of a company

BPM enables business process measurement, and gives you control and manageability over the organisation.

BENEFITS FO

R IT Improves business agility

Enables a clearer division between IT & the businessClears up the sourcing “jigsaw puzzle”

Whether or not to outsource…? Leads to determining commodity v. value-add application

development BPM enables control over the process, wherever it resides

Explodes technology stovepipes & silos Leads the way to end-to-end automation

Creates reusable process patterns Once model the process, can implement change rapidly

BOTTLEN

ECKS Identifying the business processes is relatively easy. Breaking down the barriers between business areas, and finding owners for the processes is difficult.

Thinking outside departments.

Define the total business process. (hidden actors)

SOM

E TIPS Try to think and act as a process-managed company.

Needs full support from the top.

Baby-step-approach and not the big-bang.

Projects should be handled by the business, instead of IT.

COLLABO

RATION

IS KEY - TE

AM

AC

TIV

ITIE

S Review requirements early Refactor Business Processes (but not at the same time) Test Process Models with business cases

A TEAM APPRO

ACH - M

EM

BE

R R

OLE

S Subject Matter Expert (SME) – Provides process definition and requirements. Analyst – Optimizes and Models the business process(es). Developer – Creates reusable IT assets to support process automation and interoperability between systems. Administrator – Monitors and maintains the environment.

SOLU

TION

APPROACH

– 4 CORE ELEM

ENTS

Back-Office

Information Content

Business Process

Model/Design Management

Front-End: User Input

Portals Win-Web Form

Dashboard

Tasks Notification

SOLU

TION

APPROACH

– 4 CORE ELEM

ENTS

Back-Office

Information Content

Business Process




Dashboard

Tasks Notification

Webparts ASP.NET EmailAPI Webservices

Visual Studio MS & Java

SOLU

TION

APPROACH

– 4 CORE ELEM

ENTS

Back-Office

Information Content

Business Process




Dashboard

Tasks Notification

SharePoint ASP.NET AgileForms APIWebservices


SOLU

TION

APPROACH

– 4 CORE ELEM

ENTS

Back-Office

Information Content

Business Process




Dashboard

Tasks Notification

Envision Enterprise Manager

APIWebservices


SOLU

TION

APPROACH

– 4 CORE ELEM

ENTS

Back-Office

Information Content

Business Process




Dashboard

Tasks Notification

SharePoint XML Content APIAgileWorks

AgileConnectorAgileParts


Databases

Applications BizTalk ......

KEY ATTENTIO

N PO

INTS

From Technical Point of View Build following .NET best practices. Alligned with AgilePoint Guide lines. SOA alligned

From Business Point of View Setup from a company wide BPM View Solution under business control

GETTIN

G STARTED

IN PRAG

MATIC W

AY Define a dedicated team: inform, educate and train Start with process discovery and design POC. Seed the BPM platform into existing projects. Implement a BPM program management Design new business processes from the outside in (customer centric) Manage the risk by running initial BPM projects in parallel. Look for small mission-critical projects, with a quick win and good ROI. Define centralized process repository.

Use BPM to amplify what the company is ALREADY doing. BPM is NOT the latest new initiative or killer-app.

Remember it’s not a project but a continuous process !

© DigiPoint NV/SA

BPM – FU

LL LIFECYCLE IMPLEM

ENTATIO

N

Model

Automate

Monitor

Analyze

Improve

BPM AS BUSINESS ENABLER

Main ISSU

ES TODAY

TechnicalTechnicalBusinessBusiness

• Business driven process versioning• Rapid adaption of rule changes in a

production environment and on running processes.

• Solutions today are mainly developer oriented.

• Business driven process versioning• Rapid adaption of rule changes in a

production environment and on running processes.

• Solutions today are mainly developer oriented.

• Change is constant - How do we make self-adaptive, smarter

implementations that are better able to cope?

• Change is constant - How do we make self-adaptive, smarter

implementations that are better able to cope?

Gap Between Business (Thinking Business Wise) and IT (Thinking Technical and Deployment Wise); both having different objective and target !

Conc

lusi

onCo

nclu

sion

PROCESS M

ANAG

EMEN

T AS A BUSIN

ESS ENABLER

- SPEED O

F CHAN

GE, VERSATILITY AN

D ADAPTABILITY

© DigiPoint NV/SA

“It is not the strongest of the species that survive, nor the most intelligent, but the one most responsive to change”

-Charles Darwin

Mass-Customization

Mass-Customization

Mass-Production

Mass-Production

ContinualImprovement

ContinualImprovement

Innovation,Agility,

Efficiency &Profitability

Innovation,Agility,

Efficiency &Profitability

Static DynamicAutomation

Stati

cD

ynam

icAu

tom

ation

To be

As is

BPM EN

ABLERS Every organisation is working today on the improvement of their business processes, take a look at running projects like:

ABC (Activity Based Costing) BSC (Balance Score Card) Six Sigma Sarbanes Oxley Basel II KPI’s Self Service and personalisation

They are all focussed in understanding, optimizing and monitoring the business processes.

As BPMS is not a project but a continuous process, it fit well to serve above projects.

AGILEPOINT BPMS APPROACH

THE RIG

HT BPM

S CAN M

AKE ALL THE

DIFFEREN

CE

SharePoint Workflow Designer WF Based Solutions Model Driven BPMS

Hig

hLo

w

Scalability & Broadness of Functionality

Tim

e &

Cos

t

Static SequentialStructured Automation

Some dynamics• Visual & Governance• Dynamic role-based

activities• Delegation & Re-assign

• Parallel & Dynamic Approval

• etc.

Workflow/BPMSolutions based on

or extendingSharePoint/

Windows Workflow

AgilePointProcess Based Composition

Business Agility - dynamic BPM• Run-time Process Mgmt

• Process Migration• Dynamic Rollback• Dynamic Re-route

• Partial Rework• Case Mgmt, Ad-hoc process

• etc.

DO YOU SEE FAR ENOUGH?

CURREN

T STATE SCENARIO

- PRIOR TO

THIRD

WAVE BPM

‘The Business-IT Divide’Business users have no direct control of the executable incarnations of business processes

B C D EA

B C D E

F

Graphical representation of a sample business processBusiness

Managers

IT/Developers

A FBackend IT

Infrastructure(ERP, CRM,

Financial Apps,Etc.)

Hard-coded logic and automation (e.g. traditional workflow)Hard-wired integration (e.g. EAI/adapters)

Entangled automation and integration (hard to manage)

Delivered as a monolithic application- containing

PRIOR TO

THIRD

WAVE BPM

– COSTLY TO

CHAN

GE

‘The Business-IT Divide’

Results Costly Re-Program/Engineering CycleLost Agility, Degraded Efficiency, Reduced Manageability

BC

DEA

B C D E

F

Slight change to process representing business requirement changes

BusinessManagers

IT/Developers

A F

Backend IT Infrastructure Hard-coded automation

Hard-coded business logicHard-wired integration

Another revision ofmonolithic application

THIRD

WAVE BPM

- ENABLE ADAPTIVE PRO

CESS AUTO

MATIO

N AN

D

PROCESS-BASED

INTEG

RATION

Business FunctionService Oriented Components

IT/Developer

BPM Process Builder & Modeling Tool• Process Model

BusinessManagers

B C D EA F

B C D EBackend IT Infrastructure

A F

+ Reusable & Executable Business Functions

BPM Engine

• Executes & manages links between process and people/applications• Delivers adaptive code-free automation

Examples:• update info to ERP• retrieve info from Database• check inventory,…., etc.

THIRD

WAVE BPM

– ENABLE AG

ILE & ADAPTIVE RESPO

NSE TO

CHAN

GES

BC

DEA

E

FBPM Engine


BusinessManagers

IT/DeveloperC D B

BPM Process Builder& Modeling Tool

Simply reconfigure processmodel to respond to changes

• Executes reconfigured process model to deliver new automation and results• Greatly enhances agility and manageability

BPM- EN

ABLES CROSS-O

RGAN

IZATION

AL PROCESS

INTEG

RATION

© DigiPoint NV/SA

BC

DEA

E

F

IT/DeveloperC D

B

Internet

XML/Web Services

Partners,Suppliers,Customers

BPM Process Builder& Modeling Tool

BPM Engine


• monitor• collaborate• administer

BENEFITS O

F AGILEPO

INT BPM

S

Faciliate Creation of Corporate Process Culture Effective Communication & Knowledge Management Better Process Performance Six Sigma, EPM, etc.

Empower Information Worker and Boosts IT Effectiveness On demand Process-based IT Utilization Adaptive Process-based Business Integration Code-Free Process Automation Code-Free Reconfiguration of Process-based Application Business Agility

Create Sustainable Operational Success Through Process Excellence Create & Automate New Process: up to 3x faster than current Improve & Re-Automate Existing Process: up to 10x faster than current Enable Process-based Continuous Business Performance Improvement

POSSIBLE SCEN

ARIO’S

General Business Process Automation & ImprovementAdmin/HR, Expense, Purchase, Customer Service, etc.

Vertical Business Process Automation & ImprovementInsurance, Financial, Healthcare, Legal, Content, etc.

Regulatory Compliance & Risk ManagementGovernment, Document Control, Audit & Accountability, etc.

Merger & AcquisitionsOperations alignment & IT infrastructure consolidation

Operational Efficiency ImprovementDistributed Manufacturing, etc.

Content/DocumentProcesses

Risk Management:Compliance & Governance

HealthCare:HIPAA Compliance

Insurance:Policy Issuance

General Process:Expense Report, HR, etc.

BROAD

APPLICABILITY

LEARNIN

GS FRO

M TH

E PAST More demand for business control, but:

Most are still using IT to get the job done, but with less effort on deployment time

Some are defining a new team; based on Business/IT (not virtual team)

Gouvernments and financial/insurance companies are jumping faster to Form-Based Solutions.

Most of the solution are very new (less then 5 years) Standardisation is still in-progress (Gartner is expecting

improvement around 2010)

SUM

MARIZE

BPM is the future Consider a services-oriented architecture Adopt an evolutionary approach Long term value of software as services

Rapid time-to-market Less risk Easier growth/evolution

IT projects doesn’t exists, it’s all about business projects. BPMS is today on the beginning of a long road, don’t focus yet on the underlying methods and methodologies. (not yet defined as standard)

© 2002-2009 Ascentn Corporation. All rights reserved.This presentation is for informational purposes only. Ascentn makes no warranties, express or implied, in this summary.

“Think Big. Start Small. Scale Fast.”

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