2009 11-04 mm (carson, california - csu-dh) bpm introduction

© 2009 IBM Corporation1

Business Process Management – An Introduction

Mike Marin, IBM Distinguished EngineerMikemarin <at> us.ibm.com


Agenda

• Business Process Management Introduction• Application• Workflow• BPM

• Smarter Planet • References• Q & A


Traditional Application

• Targeted to a single user• Examples

• Writing a document• Loan Calculator

• Designed to achieve a single task• Developed using a programming language


Workflow Application

• Targeted to a team• Involve several specialized users

• Managers, editors, agents, clerks, supervisors, etc.• Examples

• Document review• Loan Approval

• Designed to achieve a complex business goal• Developed using a Workflow Management System

• User Interface design• Define how work flow between users• May still require some programming


Workflow model

• Defined as an acyclic graph or Petri-net


Work delivered via an Inbox


Business Process Management Application

• Targeted to a team or line of business• Examples

• Design review• Loan origination

• Designed to implement a business process• Process improvement

• Developed using a BPM system• User Interface design• Define how work flow between users and applications• Define how to monitor key business metrics• May still require some programming


Elevate business logic– Liberates processes from application code

Eliminate process latency– Strips out “dead time”

Enforce process integrity– Ensures processes are executed correctly– Reduced errors

Enhance process execution– Liberates processes from manual

constraints Enhance task execution

– Maximizes user productivity– Resource pooling; workload balancing

Remove process logic from the application


Frederick Taylor’s “Scientific Management” theoryDivision of labourManagerial control of the workplaceCost accounting based on systematic time-and-motion study

1st Wave: Taylorism 2nd Wave: Business Process Reengineering

Processes manually re-engineered (typically a one time event)Processes implemented via ERP softwareBusiness & process logic hard-codedLed to EAI (application to application focused)

3rd Wave: Business Process Management (BPM)

Facilitating the ability to changeManage and optimize business processes Perceived as potential next “big thing” in consulting

“The ability to change is far more prized than the ability to

create in the first place.”Business Process Management — The Third Wave

Howard Smith & Peter Fingar

Source: David Knight

Evolution of Process Technology


What is Business Process Management?

Source: Gartner, FileNet

WorkflowProcess Flow for human-to-human work:Task Completion, Work Queues, Content Lifecycle, Forms Routing

Application ProcessesProcess Flow for automation among systems:Application Events, Dynamic Data Routing, Automatic Updates

External Process EnablementProcess Flow Outside the Enterprise:User Inbox, Customer Interaction, Partner Collaboration Suppliers PartnersCustomers

Process OptimizationContinuous Process Improvement:Measurement, Analysis, Simulation, BAM, Change Management


BPM application development stages

Document Review & Refine

Annotate Diagram

Annotate Diagram

Document StepsDocument Steps

DiagramDiagram

Define In-basketsDefine In-baskets

Define RolesDefine Roles

ReviewReview

Complete

Simulate & Validate

Simulate & Validate

ConfigureConfigure

Test & Deploy

DeployDeploy

TestTest

Business User Business Analyst IT Developer

Build UIBuild UI


Process Model


Process Simulation


Continuous Process Improvement

ActualSimulation

$0.00

$1.00

$2.00

$3.00

$4.00

$5.00

$6.00

$7.00

$8.00 NorthSouthPre-processing Underwriting

Process DefinitionProcess Definition Process SimulationProcess Simulation

Process AnalyticsProcess Analytics


Business Agility Using BPM Change the process model, not

the code Processes can easily change

to reflect and meet changes in the business

Changes are business lead– Process owners are

responsible and accountable for process change


Human activities Intuitive UI Intelligent documents Field validation DB look-up Automate data capture Eliminate paper

Electronic Forms / User interface


Process Forms – Step User Interface

1234512345


Microscopic Visibility

Generates business events; full audit trail Visibility down to an individual process and tasks Demonstrate compliance Provide “Live” status

11-JUL-2004 14:45 DSMITH Task 3 Complete

11-JUL-2004 13:56 MSMITH Task 2 Complete

11-JUL-2004 13:45 DJONES Task 1 Complete

Order OrderOrder


Higher level – trends Real-time process visibility

– Better tactical decisioning

Historical process visibility– Better strategic decisioning

Real-time WorkloadReal-time Workload

Volu

me

Volu

me

TasksTasks

Macroscopic Visibility


Get reports on process performances

Business intelligence (BI) embedded within BPM

Make better decisions faster

Historical Performance Visibility – Analytics


Business Activity Monitor - BAM

Real-time operational visibility & performance management

Real-time threshold monitoring & alerts

Comprehensive event detection & correlation

Aggregate and correlate multiple data sources

BPM actions automatically tied to alerts

User-configurable dashboards


The World Is Changing

Complexity

Security

Globalization

Scale

Information ExplosionEnergy


Dynamic Infrastructure

Dynamic Infrastructure

Thinking and acting in new ways to make our systems more efficient, productive and responsive

“Data is exploding and it’s in silos”

I Need Insight

“Our resources are limited”

I Need Efficiency

“New business and process demands”I Need to Work

Smart

“My infrastructure is inflexible and costly”

I Need to Respond Quickly

New Intelligence

New Intelligence

Smart WorkSmart Work

Green and Beyond

Green and Beyond

Building a Smarter Planet


Smarter Planet …..

By 2010, 30 billion RFID tags will be embedded into our world and across entire ecosystems

An estimated 2 billion people will be on the Web by 2011 …. and a trillion connected objects – cars, appliances, camera, roadways, pipelines – comprising the “Internet of Things”

Every day, 15 petabytes of new information are being generated. This is 8x more than the information in all U.S. libraries

All things becomingINTELLIGENT

Our world is becoming INSTRUMENTED

Our world is becoming INTERCONNECTED


What Does It Mean to Become Smarter?Sensors and MeteringSensors and Metering

Event Processing + Real Time Data Integration


Real Time + Historical Data


New Data

New Insights

ProcessInnovation

New and OptimizedBusiness Processes

Data Modeling + AnalyticsData Modeling + Analytics

Visualization &Decisions


Data modeling and analytics to create insights from data to feed decision support and actions

Comparison of historical data, with newly collected data

Data collection

Data Integration

Sensors and MeteringSensors and Metering





New Data

New Insights

ProcessInnovation

New and OptimizedBusiness Processes

Data Modeling + AnalyticsData Modeling + Analytics



Data modeling and analytics to create insights from data to feed decision support and actions

Comparison of historical data, with newly collected data

Data collection

Data Integration

Leading businesses today are benefiting from new sensor data when combined with IBM’sbusiness process management, event processing & business optimization capabilities


Three Levels Of Maturity – Three Levels Of Value

0 1 2 3 4 5Acknowledge 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

Automate Integrate Optimize

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


References

• IBM Academic Initiative• http://www.ibm.com/university

•• IBM Students Portal

• http://www.ibm.com/university/students

• BPM Product Sample• http://www.ibm.com/software/info/bpm

http://www.ibm.com/university

http://www.ibm.com/university/students

http://www.ibm.com/software/info/bpm


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