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Dr. Setrag Khoshafian,C h i e f E v a n g e l i s t a n d V P o f B P M T e c h n o l o g y, P e g a s ys t e m s
Apr i l 11 , 2014
© 2014 Pegasystems Inc. 2
Overview of Session Introductions iBPM’s Impact to Your COE PegaWorld 2014 COE Panel Discussion COE Benchmarking Exercise Next Steps
© 2014 Pegasystems Inc. 3
Introductions
Chief Evangelist and VP of BPM Technology, Pegasystems
Senior Director of BPM Adoption Services, Pegasystems
© 2014 Pegasystems Inc. 4
Overview of Session Introductions iBPM’s Impact to Your COE PegaWorld 2014 COE Panel Discussion COE Benchmarking Exercise Next Steps
© 2014 Pegasystems Inc. 5
Archaic Software & Methodologies (COE) Keeps Hurting Your Business
COMPLICATED SYSTEMS
DISJOINTED CUSTOMER EXPERIENCE
INEFFECTIVE RESPONSE
© 2014 Pegasystems Inc. 6
Huge Disruptive Digital Business Potential …
… but there are challenges … especially for IT
Public Sector interviewees reported that the speed at which new legislation can be deployed is mainly determined by how quickly the supporting IT solutions can be developed. In some cases, even the content of the legislation itself is influenced by what IT can or cannot deliver in time.
© 2014 Pegasystems Inc. 7
© 2014 Pegasystems Inc. 8
Disruptive Technologies are Empowering the Business – and Endangering IT “Business is able to use their credit
card and provision solutions within minutes!”
© 2014 Pegasystems Inc. 9
IT Tries to Modernize …
But Why Do Modernization Efforts Fail?
© 2014 Pegasystems Inc. 10
Big Bang Modernization Initiatives SOA Modernization
Legacy 5 ERP 3 Legacy 6 ECM 1 MDM
Legacy 3 ERP 2 Legacy 4 DBMS 3 DBMS 4
Legacy 1 ERP 1 Legacy 2 DBMS 1 DBMS 2
ESB 1 ESB 2
Manually Coded JAVA
Manually Coded COBOL
Equating Modernization to a “Modern Language”
© 2014 Pegasystems Inc. 12
Model-Driven iBPM for The Digital Enterprise
© 2014 Pegasystems Inc. 13
Mobile iBPM
EMPOWER CHANGE & COLLABORATION
Familiar business metaphors accessed through a web browser Easy forms guide & protect users
Working models replace paper specs & requirements
Automatically tailor user experience to device and channel
© 2014 Pegasystems Inc. 14
What is a Dynamic Case?
Case Subjects Collaboration
Tasks Case Events
Case Business Objectives Rules and Policies
Processes & Dependencies
Case Data
Sub-Cases Case Content
Dynamic Case Management
Case Stages
© 2014 Pegasystems Inc. 15
Social iBPM UNIFIED, CONTEXTUAL, ACTIONABLE, ACCOUNTABLE
Users can quickly communicate about issues. Here, Stephen helps Manny solve a problem. Amanda, a new appraiser, can assess a claim. Manny creates a task for
Amanda, the new appraiser. Amanda gets the
assignment on her phone.
The conversation and actions are stored in the case for later reference or audit.
© 2014 Pegasystems Inc. 16
Business Rules
Business Events & CEP Big Data
Analytics Decision
Management
Process Intelligence
ƒ
Business Rules Decisions
Business Events
0110101010111100101110010101001110010101001110010101001 101010101011000011010100110010101001110011001010100111
10101010100010101001110010101001110010101001110010101001 1100010110110010111000010101100101010011100101010011100 000101011100010101001110010101001110011001010100111001 1010011100100101001110010101001110010101001110010101001 00101010011100101100110010101001110010101001110010101
Big Data
… Block
2 Block 100
Block 1
Data Good 1,000
Bad 120
Bad 60
Good 2,500
Behavior Value 1
2
3
4
ID
Predictive Analytics
Past Experience Predictive Model
The “i” in iBPM: Intelligent
© 2014 Pegasystems Inc. 17
Business Intelligence to Intelligent BPM
Historic Reports Real-Time Actionable Events & Reports
OLAP Real-Time Process Optimization
Predictive Analytics Predictive and Adaptive iBPM
Bus
ines
s Va
lue
ƒ
Actionable, Intelligent, and Adaptive
Data Good 1,000 Bad 120 Bad 60 Good 2,500
Behavior Value 1 2 3 4
ID
Predictive Analytics
Past Experience Predictive Model
© 2014 Pegasystems Inc. 18
IT
Business
Customer
The “M” in iBPM: Management
TA: Technology Strategy Application Servers ESB – EAI - MOM H
R
Lega
cy F
inan
ce E
RP
ECM
D
BM
S
Enterprise Applications and Content
Business Solutions
Business Innovation
Business Objectives -
KPIs
Business Requirements
Business Change and
Agility
iBPM Engage
Simplify
Change
© 2014 Pegasystems Inc. 19
IT Modernization, Transformation, and
Digitization with iBPM
© 2014 Pegasystems Inc. 20
CUSTOMER DATA SCIENTIST BUSINESS ANALYST PROCESS IMPROVEMENT EXPERT (BB, GB)
PROCESS ARCHITECT
New Roles for Business Transformation CPO CCO CDO CMO
:Chief Digital Officer
:Chief Customer Officer
10 9 8 7 6 5 4 3 2 1 0
: Chief Process Officer
Chief Innovation Officer
Chief Transformation Officer
The Chief Digital Officer is essentially the senior executive
responsible for helping the organization transition into the
21st century digital economy and digital society.
Irving Wladawsky-Berger
A chief process officer (CPO) is the senior-most executive …. with
responsibility for an enterprise’s business process transformation and
continuous improvement initiative. Connie Moore
Transformation Roles iBPM
© 2014 Pegasystems Inc. 21
Business Transformation through iBPM
Modernization
Integration Plumbing
Dynamic Case Management
Exceptions Case Management
HR Legacy Finance ERP ECM DBMSs
Integration Plumbing
Agility Layer
Process Excellence: Real-Time Lean Six Sigma
Process Centric Business Transformation Customer Centricity
iBPM COE Team
COE Manager
iBPM COE Leadership
COE Chairman
Process Champion(s)
IT Exec Sponsor(s)
Business Exec Sponsor(s)
iBPM COE
COE LSA
COE LBA
iBPM COE – Extended Team
Engage Directly / Guidance
Test Lead
Infrastructure Lead
DBA Lead
Release Engineer
Performance Lead
PM
Project Leadership
Delivery Partner
PM BA QA LSA
Project Team(s)
BA QA
LSA
Pega Consulting Resources
EL
Customer Program Governance
Governance / G
uidance LBA
Enga
ge
Dire
ctly
Enterprise Architect
Governance Manager
Enablement Lead
Process Owner(s)
Security Liaison
COE SA(s)
Enterprise Architect
COE Manager
iBPM COE and Agile Methodology
Customer Service and Support (CSS)
Sales Force Automation (SFA)
NBA Marketing
Empowering the Business to Own the Change
© 2014 Pegasystems Inc. 22
Modernize through iBPM
Service Service Service Service
Legacy 5 ERP 3 Legacy 6 ECM 1 MDM
Legacy 3 ERP 2 Legacy 4 DBMS 3 DBMS 4
Legacy 1 ERP 1 Legacy 2 DBMS 1 DBMS 2
Infrastructure
IT V
alue
Sys
tem
of R
ecor
d
Sys
tem
to S
yste
m
Incr
ease
d Bu
sine
ss V
alue
Syst
em o
f Inn
ovat
ion
Gui
ded
Inte
ract
ions
iBPM
© 2014 Pegasystems Inc. 23
Business Transformation through iBPM
Modernization
Integration Plumbing
Dynamic Case Management
Exceptions Case Management
HR Legacy Finance ERP ECM DBMSs
Integration Plumbing
Agility Layer
Process Excellence: Real-Time Lean Six Sigma
Process Centric Business Transformation Customer Centricity
iBPM COE Team
COE Manager
iBPM COE Leadership
COE Chairman
Process Champion(s)
IT Exec Sponsor(s)
Business Exec Sponsor(s)
iBPM COE
COE LSA
COE LBA
iBPM COE – Extended Team
Engage Directly / Guidance
Test Lead
Infrastructure Lead
DBA Lead
Release Engineer
Performance Lead
PM
Project Leadership
Delivery Partner
PM BA QA LSA
Project Team(s)
BA QA
LSA
Pega Consulting Resources
EL
Customer Program Governance
Governance / G
uidance LBA
Enga
ge
Dire
ctly
Enterprise Architect
Governance Manager
Enablement Lead
Process Owner(s)
Security Liaison
COE SA(s)
Enterprise Architect
COE Manager
iBPM COE and Agile Methodology
Customer Service and Support (CSS)
Sales Force Automation (SFA)
NBA Marketing
Empowering the Business to Own the Change
© 2014 Pegasystems Inc. 24
Engage the business at the beginning, and keep them engaged
Business
Technologist
© 2014 Pegasystems Inc. 25
Business Can Own the Change
Yes No
Write-Off?
If… ― Dispute Amount is less than $51 ― AND Transaction is not disputed as a fraudulent transaction ― AND Customer has disputed less than two transactions this year
Then… YES: Fully credit the customer without even initiating the dispute (i.e., Write-off the transaction)
© 2014 Pegasystems Inc. 26
Business Transformation through iBPM
iBPM COE Team
COE Manager
iBPM COE Leadership
COE Chairman
Process Champion(s)
IT Exec Sponsor(s)
Business Exec Sponsor(s)
iBPM COE
COE LSA
COE LBA
iBPM COE – Extended Team
Engage Directly / Guidance
Test Lead
Infrastructure Lead
DBA Lead
Release Engineer
Performance Lead
PM
Project Leadership
Delivery Partner
PM BA QA LSA
Project Team(s)
BA QA
LSA
Pega Consulting Resources
EL
Customer Program Governance
Governance / G
uidance LBA
Enga
ge
Dire
ctly
Enterprise Architect
Governance Manager
Enablement Lead
Process Owner(s)
Security Liaison
COE SA(s)
Enterprise Architect
COE Manager
iBPM COE and Agile Methodology Modernization
Integration Plumbing
Dynamic Case Management
Exceptions Case Management
HR Legacy Finance ERP ECM DBMSs
Integration Plumbing
Agility Layer
Process Excellence: Real-Time Lean Six Sigma
Process Centric Business Transformation Customer Centricity
Empowering the Business to Own the Change
Customer Service and Support (CSS)
Sales Force Automation (SFA)
NBA Marketing
© 2014 Pegasystems Inc. 27
Think Big, Think Digital …but Start Small
Impact/Risk Matrix:
Less Risk More Risk
Less
Vi
sibi
lity
Hig
h
Visi
bilit
y
Complexity
Bus
ines
s
Visi
bilit
y
© 2014 Pegasystems Inc. 28
Analyze iBPM Enabled Legacy and ERP Modernization Opportunities: Business Value, Variability, Maintainability, Complexity
Phas
e 0 Wrap ERP or Legacy
Systems and Modules with iBPM for business value Ph
ase
1 Modernize and Replace Custom Code with iBPM Continue with additional Wrap ERP/Legacy Modernization Projects
Phas
e 2 Rip and Replace
costly ERP systems and modules Continue with additional ERP/Legacy Wrap and Modernization Projects
Phas
e 3
© 2014 Pegasystems Inc. 29
Sliver Iterations
Transition
Development Iterations
Delivery Planning
Measure and Improve
Stages Social Collaboration
Cases, Processes, Rules, Decisions, UI, Integration
iBPM Real-Time Lean Continuous Improvement
© 2014 Pegasystems Inc. 30
iBPM COE Maturity M
ATU
RIT
Y
TIME
Establish iBPM LOB COE
iBPM Corporate COE established. Best Practices Defined and Adhered to
iBPM Federated COE model in place. Business Maturity with Common Processes
1
iBPM Method Adoption Building Competence
Business Unit
Process / Rule Architect
PM Leads
Program Mgmt.
Sponsors / Steering Committee Overall Oversight and Initiatives Prioritization
2
3 Claims LOB 1
Region LOB 2
Process / Rule Architect
PM Leads
Program Mgmt.
4 Project Tread:
© 2014 Pegasystems Inc. 31
Build For Change™…
Time
Conventional Solutions
Cap
abilit
y
iBPM Solution
60-90 Days
© 2014 Pegasystems Inc. 32
Overview of Session Introductions iBPM’s Impact to your COE PegaWorld 2014 COE Panel Discussion COE Benchmarking Exercise Next Steps
© 2014 Pegasystems Inc. 33
PegaWorld 2014 Breakout
Center of Excellence Panel Discussion - Best Practices and Benchmarking Please join us for an engaging panel discussion consisting of CISCO, Jabil, JPMC and BNY Mellon as
they present their Center of Excellence best practices. Attendees will also have an opportunity to ask the panelists questions. As an additional benefit, the results of a 2014 COE benchmarking survey will be shared with the audience, including the details of the panelists' responses. Specifically, come learn about: How are the leaders driving Center of Excellence best practices and maturing their operation, what
hurdles did they overcome Preview where are you and other customers along the Center of Excellence Journey How can you address challenges and issues with live Q&A with our expert panelists
© 2014 Pegasystems Inc. 34
Overview of Session
Introductions iBPM’s Impact to your COE PegaWorld 2014 COE Panel Discussion COE Benchmarking Exercise Next Steps
© 2014 Pegasystems Inc. 35
Benchmarking Survey
© 2014 Pegasystems Inc. 36
Overview of Session Introductions iBPM’s Impact to your COE PegaWorld 2014 COE Panel Discussion COE Benchmarking Exercise Next Steps
© 2014 Pegasystems Inc. 37
Next Steps Look for an email containing: Recording link for this session Link for getting a copy of Setrag’s iBPM: The Next Wave book Link for taking the benchmarking survey
Please join us at PegaWorld 2014 for: COE Panel discussion COE Networking Lunch
Invite for the next Peer to Peer COE forum Any questions / feedback please contact
Paul.Roeck@pega.com
© 2014 Pegasystems Inc. 38
Q&A
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