WebSphere Lunch and Learn Series John Denning – Sima Solutions May 31, 2007

IBM Business Process Management

© 2007 IBM Corporation

Business Optimization with BPM

WebSphere Lunch and Learn SeriesJohn Denning – Sima SolutionsMay 31, 2007

WebSphere Lunch and Learn Series – Process Server

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Business Process Management Overview

Business Process Management is a differentiating business capability combining software capabilities and business expertise to accelerate

process improvements and facilitate business innovation

Expertise that Delivers BPM Process Knowledge Industry Methods and Models Business consulting expertise

Software that Enables BPM Business Services Tools, Rules, Servers, Repositories Business Dashboards, Forms


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Business Process ManagementThe Impact

2. ..based on business processes and external

events…

3. ..which can be configured on the fly based on business rules and business policies

Use “India Credit Corp” credit check service for all orders originating in India.

1. User configured business

dashboards….

Asia Sales Report

4. …and repurposed to extend the utility of a solution across the business…just by changing

policies and dashboard definitions

European Sales Report


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Innovation can Encounter a Myriad of Process Challenges Ex: Account Opening Process

1 Processes are not documented

2 Bottlenecks prevent efficiency

3 KPIs not defined

5 Process change is cumbersome

6 Limited / no visibility into performance

4 Complex integration across multiple processes


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The BPM SpectrumWhat Companies Want To Do

Exceptions

HumanDocument System

Rules


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Three BPM Capabilities

DesignManage Change by modeling and analyzing existing or new processes.

e.g. Reduce the inherent time and cost of a process;

Design for higher quality and customer service

AutomateRespond Quickly with processes based on a flexible infrastructure.

e.g. Run business compliant processes in production fast;

Integrate systems and services seamlessly

OptimizeLeverage For Efficiency by intelligently adapting for optimal performance

e.g. View and understand real time business facts;

Adjust or repurpose processes to meet targets


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Three Levels Of Maturity – Three Levels Of Value

0 1 2 3 4 5

Acknowledge Operational

Inefficiencies

Directly link process

model and rules to

execution

Intra-Process Automation and Control

Compare alternatives driven by various

optimization techniques in

real-time

Craft process automation and

control across the enterprise,

customers, and trading partners

(industry)

Inter-Process Automation and Control

Create a business

performance framework that links business valuation to

process execution

Enterprise Valuation

Control

Innovate new businesses,

products, and services through an agile business

structure

Agile Business Structure

Model and analyze business

processes

Process Aware

Measure and monitor

business activities

Generally, where we are today

Begin to identify process owners

Collaborative development

Design Automate Optimize

http://www.gartner.com/silentlocalechooser.jsp?locale=wcw


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WebSphere Delivers Real Customer Value Today

Respond Quickly with processes based on a flexible infrastructure.

Realized $2M savings in the first year and increase in productivity

Leverage For Efficiency by intelligently adapting for optimal performance

Reduced mortgage process time by 53% Achieved 34% gains in efficiency Estimated annual savings of $4M

Manage Change by modeling and analyzing existing or new processes.

Call center volume down 40% in 3mthsIT asset reuse at 52% after 6 mths

SOA to deliver $200M savings over 5yrs

http://images.google.com/imgres?imgurl=http://www.danskebank.dk/image/logodb/$file/logo_db.gif&imgrefurl=http://www.danskebank.dk/link/parkeringspil&h=46&w=152&sz=1&hl=en&start=12&tbnid=Lc1TiInzY9eXYM:&tbnh=29&tbnw=96&prev=/images?q=Danske+bank+logo&svnum=10&hl=en&lr=&rls=GGLF,GGLF:1969-53,GGLF:en&sa=N

http://www.principal.com/


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Lesson LearnedThree purposes for process modeling

Modeling For Documentation & Compliance- Document processes to better understand your business - Understand and capture complex behaviors and domain expertise in

processes- Use output for training, collaboration, and documentation

Modeling For Redesign & Optimization- Discover potential areas for process improvement and latent value in

processes- Document both the current state and future state business process and the

comparison to validate enhancements and ROI before committing resources

- Establish and track measurable process metrics for performance Modeling For Execution

- Ability to change the business process to respond to changes in market - Future state business process is ready to be passed to application,

workflow and business process development tools to be executed as a new running process

- Linked real-time monitoring provides feedback on process improvements and reporting for compliance on running processes


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Current State – Times & CostsCase Analysis with Unlimited Resources

Future State – Times & CostsCase Analysis with Unlimited Resources

$5.40 10:1132.91%

$1.67 3:1132.10%

$7.56 14:1115.01%

$1.77 3:2115.20%

$5.93 11:114.78%

Average Cost

AverageProcess

Time(min:sec)Probability

$5.40 10:1132.91%

$1.67 3:1132.10%

$7.56 14:1115.01%

$1.77 3:2115.20%

$5.93 11:114.78%

Average Cost

AverageProcess


Email, Simple

Email, Complex

Telemarketing

Direct Mail, Simple

Direct mail, Complex

Case Description

1

2

3

4

5

Case

Email, Simple

Email, Complex

Telemarketing

Direct Mail, Simple

Direct mail, Complex

Case Description

1

2

3

4

5

Case

$4.38 8:1635.57%

$0.96 1:5133.03%

$4.16 7:5113.51%

$0.96 1:5414.50%

$4.38 8:162.39%

Average Cost

AverageProcess


$4.38 8:1635.57%

$0.96 1:5133.03%

$4.16 7:5113.51%

$0.96 1:5414.50%

$4.38 8:162.39%

Average Cost

AverageProcess


WebSphere Business Modeler

Run simulation to estimate savings and support the business case for the process

change

Define and optimize processes thru simulationJustify process changes through ROI calculationsUnderstand impact of process changes to the business

Example: Simulation results showing areas of greatest opportunity

Existing Processes

Lesson LearnedUse Simulation to Identify High Impact Process Changes


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Visio import

Visio Import Wizard allows Visio shapes to be mapped to Modeler objects. Wizards may be saved for reuse.

Import Existing Industry ModelsIBM Industry Models• Enable cross enterprise process

simplification and rationalization• Provide a fast-path to an enterprise-wide

business process architecture• Document complete business

requirements• Manage process change

Business Level Modeling And Simulation Importing Models- Leverage Process Work-To-Date

12 SOA: The Key to Business Flexibility


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Business Level Modeling And Simulation Simulation and Analysis

Predict business operation outcomes by running "what if" scenarios

Help determine and justify projects that will generate the greatest returns on investments, and help build your business case

Generate comprehensive information around cost, time, and resource savings

Optimize by looking at bottlenecks and workload imbalances before moving any changes into production

13 SOA: The Key to Business Flexibility


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Business Level Modeling And Simulation Publish And Collaborate

Collaborative modeling- Version controlled models for team

modeling Collaborative reviews- Browser based model review- Easy access for all stakeholders

Web Publishing - Publish final model information- For user training and reference- For compliance documentation


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The Challenge

BusinessSolutions And Objectives

Resources and IT Assets

….introduce and change business solutions….

….leveraging existing resources and IT systems…

….against measured objectives….

….at a pace and cost which outwits my competition.

How can I…

…Customer Database

Claims Database …

Product Wear

Database…

Warranty Claims

Processing

OEM Warranty

Processing

Warranty Claims

Processing (Asia)


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WebSphere BPM provides the mechanism for delivering through SOA

BusinessSolutions And Objectives

Resources and IT Assets

Warranty Claims

Processing

…Customer Database

Claims Database …

Product Wear

Database

OEM Warranty

Processing

Processes

Business process model and metrics

Example – Warranty Processing

BPEL process for execution

Service Components

Example – Claim Adjustment

Rat

e O

f C

han

ge

Deg

ree of R

euse

Warranty Claims

Processing (Asia)

…

Example – Check Customer History


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get Approved

Approved/Denied

Accelerated Solution Assembly Flexibility And Agility Through Standardized Service Invocation

If Approved thenSend letter offering gold

If NOT ApprovedSend letter offering Credit counseling service

Human intervention on suspect

applications to prevent fraud

Adapting to business

events

Sell additional services based on customer profile

Call Credit Rating service from an

existing application

Enable realtime process

adjuestment

Flexibly building business processes based on standards

Human Task

Business State Machine

Java Application

Enterprise Application

WS-BPEL Business Process

Business Rules

I/T


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Accelerated Solution AssemblyIntegrated ESB for Range and Reach

WebSphere Process Server contains WebSphere ESB

- ROUTING messages between services

- CONVERTING transport protocols between requestor and service

- TRANSFORMING message format between requestor and service

- HANDLING business events from disparate sources

Standards based Integration- Web Services connectivity- JMS messaging

I/T


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Accelerated Solution AssemblyAdapter Connectivity

Adapters provide the service on-ramp for existing applications- Enterprise-ready connections based on

industry best practices- Broadest reach in the marketplace- Part of IBM’s Access Services portfolio,

which delivers reach to hundreds of integration endpoints

- Enterprise Ready Mission-critical quality of service Full portfolio of integration products

available through a single vendor Best Practices- First-class support for top ISVs- Established relationships with top-tier

ISVs- Based on first-hand experience gained

from integration services

PeopleSoft

Adapter

SAP

Adapter

I/T


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One Flexible Process Solution For All Process Needs WebSphere Process Server

Exceptions


Rules


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One Flexible Process Solution For All Process Needs Lowest Total Cost Of Ownership

Lowest Total Cost of Ownership because these capabilities exist on a single server, with no need to purchase separate deployment solutions- Any task can be implemented as human or system workflow

- Any document or business object can flow between tasks

- Best in class Human Workflow and worklist management

- Single point for business rules implementation and modifications

I/T


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One Flexible Process Solution For All Process Needs Human Workflow Management

Human Task Manager (HTM) Is WebSphere Process Server’s key component for human task

support:- Builds upon the proven staff runtime introduced in WBI SF v5 in 2003

- AND the functional capabilities known from WebSphere MQ Workflow

- AND many many new functions suggested by our customer base

Provides first-class human workflow support for BPEL processes as inline human tasks knowing about the (BPEL) process context and

Provides rich staff support for service-oriented applications, making humans available as ”encapsulated services”:- Allows to “invoke” humans as services

- Allows humans to invoke services

- Supports Ad-hoc Tasks

- Allows for escalation and notification of human tasks during business process execution

I/T


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One Flexible Process Solution For All Process Needs Document Management

I/T

Click-to-Action


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One Flexible Process Solution For All Process Needs Business Agility Through Business Rules

Parameterized business processes - For runtime adaptability

“Ruleset”- If-then statements

“Decision Table”- Compact form for complex nested

rules

3rd party rules engine plug-in Web based tooling for business

users

Ruleset

Decision Table

I/T


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Design

Automate

Optimize

Encourage ReuseFind and reuse services for building blocks for new composite applications.

Enhance ConnectivityEnable dynamic and efficient interactions between services at runtime.

Enable GovernanceGovern services throughout the service lifecycle

Publish Find

Enrich

Govern

Manage

Help optimizeservice performanceEnable enforcement of policies. Impact analysis.

AutomateWebSphere Service Registry & Repository


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Lessons LearnedManage for Optimal Performance

View performance of processes based on Key Performance Indicators- Track cost, time and resources

Achieve real-time visibility into processes- An ongoing, iterative loop of improvement and

optimization Learn from your data

- Feedback into model

69% of CFOs say that measuring and monitoring business process and performance is their top priority

IBM Business Consulting Service. IBM Global CFO Study Dec. 2005


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Business Process Monitoring And Optimization

Scorecard view of business measures and Key Performance Indicators- Cost, time, resources- Task based dashboards and reporting

capabilities, - Trending information - Tools to customize or define new

dashboards

Track and modify business process flows- Use trends to eliminate redundancies or

inefficiencies- Identify bottlenecks – balance workloads- Reduce latencies


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Business Process Monitoring And OptimizationFact based business analysis

Real production data imports to business models- Simulate and analyze to fully

understand the state of the business- Gauge the impact of initial decisions

and make corrections - Informed in-flight decision making- Examples: Task durations; Decision

probabilities; average delays; costs…


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Optimize Your Business With “Business Services”

How can I control which service is actually used at runtime based

on QoS considerations?

How can I automate human and system based tasks for business

performance, reuse and compliance ?

How can I control which processes and services are used

when and by whom?

Services

Processes

Business Services

Implement a governing services repository integrated with the ESB

Organize human and system tasks into automated business

processes

Select processes and services via business use policies

How can I reach any system in my enterprise and treat it as a set

of services for reuse?

Applications Implement a comprehensive Enterprise Services Bus

Fabric

Repository

Process Server

Enterprise Service Bus


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Optimize Your Business With Business Services

Simplify Your Business Processes- Business Services move many run time decisions points outside of the processes- Simpler processes are quicker to design and deploy

Adapt Your Business Processes- Business Services allow you to change process behavior from outside of the process- Adaptable processes are quicker to change for optimal performance

Repurpose Your Business Processes- Business Services allow you repurpose your processes for other business needs- Repurposed processes result in quicker roll-out, deployment and scaling of business

solutions


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Design

AutomateWebSphere

Process Server

Optimize

WebSphere Business Modeler

Manage Change by modeling and analyzing existing or new processes.

WebSphere Business Services Fabric

Respond Quickly with processes based on a flexible infrastructure.

Leverage For Efficiency by intelligently adapting for optimal performance


WebSphere Business Monitor

WebSphere Integration Developer


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IBM Leads in Business Process Management with SOAAnalyst Magic Quadrants and Waves deliver the proof

Gartner BPMS Magic Quadrant (June 2006)- Identified as ‘visionary’ within this evolving market

- Best positioned of all “major” vendors

Forrester Human-Centric BPM Wave (Insurance, Sept. 2006)- Preliminary results were positive “…IBM leads the pack”

- Establishes IBM as the vendor with leading capabilities across the full spectrum of BPM engagements (human, system, document)

Forrester Integration-Centric Wave (3Q05)- IBM leadership- Next rev targeted for Dec. 2006 (renamed to “BPM”)

http://www.gartner.com/silentlocalechooser.jsp?locale=wcw


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WebSphere BPMOne Flexible Process Solution For All Process Needs

Exceptions


Rules


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Read the Whitepaper: - “BPM with SOA: Better Together”

Take the Assessment:- BPM enabled by SOA Readiness Assessment

Getting Started with BPM Enabled by SOA

ibm.com/software/info/bpmsoa/

(Pilot) Implement and Manage

Create Process Model(s) and Test

with Simulation

New ProcessDesign Cycle

Define Requirements and Align Objectives

Establish Key Measures, Examine

Best Practices

Evaluate Service Components, Building

Blocks for Reuse

(Pilot) Implement and Manage

Create Process Model(s) and Test

with Simulation

New ProcessDesign Cycle

Define Requirements and Align Objectives

Establish Key Measures, Examine

Best Practices

Evaluate Service Components, Building

Blocks for Reuse

Attend a Workshop: - Get started in your BPM project with a

customized Process Improvement Workshop

http://images.google.com/imgres?imgurl=http://www-03.ibm.com/servers/eserver/iseries/hardware/threeinone/graphics/3in1.gif&imgrefurl=http://www-03.ibm.com/servers/eserver/iseries/hardware/threeinone/report.html&h=186&w=144&sz=3&hl=en&start=18&tbnid=dFNUHccVoDpEYM:&tbnh=102&tbnw=79&prev=/images?q=ibm+whitepaper&svnum=10&hl=en&lr=


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Documents

WebSphere Lunch and Learn Series John Denning – Sima Solutions May 31, 2007