IBM Business Process Management Overview and Demonstration of IBM BPM In Action!

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

http://blueworkslive.com/

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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

6

BPM brings order to the chaos

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ExecutiveManagement

CustomerService

Risk ManagementTeams

Financeand Ops


• 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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The quickest way to deliver robust process applications


IBM Business Process Mgr v7.5


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The quickest way to deliver robust process

applications




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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 quickest way to deliver robust process

applications




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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


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://IBMBPMDemos.com

http://www.ibm.com/developerworks/websphere/services/

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Merci

Grazie

Gracias

ObrigadoDanke

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