bpm webinar presentation

© 2012 IBM Corporation

Achieving Business Process Excellence!

Neil TootillBusiness Unit ExecutiveBusiness Process & Decision ManagementWebSphere North America

2 © 2012 IBM Corporation2

Organizations are becoming Increasingly Complex

© 2012 IBM Corporation3

Responses show organizations experiencing significant change

MoreVolatile

MoreUncertain

MoreComplex

StructurallyDifferent

87% 86%82%

74%

= to a large or very large extent

Agile businesses have:

• 40% higher EPS growth

• 45% higher ROI

• 10% faster revenue growth

• 2.6X higher return on capital

than their industry peersSource: IBM Institute for Business Value 2010 Global CEO Study Source: 2009 Convergence Index, BTM Institute

CEOs know their Business Processes must be More Agile


Flexibility

Low cost/time

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CustomizedUniqueHigh TCOIT bandwidth Reduced time

Initial CostStandard Feature setReliance on vendorResponse to Change

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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.

Continuous Process Improvement requires a “Third Way”


Flexibility

Low cost/time

��

��

CustomizedUniqueHigh TCOIT bandwidth Reduced time

Initial CostStandard Feature setReliance on vendorResponse to Change

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++-- +

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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.

BPM

Business Process Management is that “Third Way”


Integrated

Measure

Processes

Optimize

� An integrated approach to aligning the key activities of an organization intoprocesses you can consistently measure to optimize value to your organization and your end customers.

• Align people & tasks to valuable outcomes

• End-to-end vs. silo• Cross-functional

• Technology + Methodology

• Compresses cycle time for process lifecycle

• Enabled by the BPMS platform

• High visibility into performance of process & people

• Metrics that are meaningful to the business

• Quantify impact of process improvements

• Enhance process to maximize business value

• Identify & remove bottlenecks

• Eliminate non-value-add activities

What is Business Process Management?

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� Organizations had more than 90 percent success rates on BPM projects.

� Successful projects had no less than 10% internal rate of return, 78% had more than 15% (some as high as 360%)

� 67% of the projects were completed in less than six months, 50% in less than four months.

� 77% of the projects had returns greater than $100,000 per project.

� 80% of the respondents felt an increase in competitive advantage.

� BPM’s value to the company was higher than ERP, CRM and SCM.

� Organizations had more than 90 percent success rates on BPM projects.

� Successful projects had no less than 10% internal rate of return, 78% had more than 15% (some as high as 360%)

� 67% of the projects were completed in less than six months, 50% in less than four months.

� 77% of the projects had returns greater than $100,000 per project.

� 80% of the respondents felt an increase in competitive advantage.

� BPM’s value to the company was higher than ERP, CRM and SCM.

Source: “Justifying BPM Projects”, Gartner

Why Business Process Management?


September 2011

“In management, it is nice to believe that the world is simple and that we can easily get high-quality answers to our questions. But in fact our reality is mostly very complex, and we don’t understand it well. The bottom line is that we need to spend more time helping people understand and deal with complexity and less time concocting dumbing-down mechanisms.”

BPM helps address a Complex Reality


Account Opening

Pricing / Promotion Management

Claims Processing

Order Management

Employee On-Boarding

Process is Everywhere

Campaign Management


Get Started with Process Discovery...


• 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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…but How?

Get Started with Process Discovery...


IBM Blueworks Live is the best way to facilitate collaborationbetween IT and line of business for

process discovery, documentation and improvement

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13 © 2012 IBM Corporation13

What It Offers

� Insight into processes

� Evergreen documentation

� Rich template library

Benefits

� Easy for novices, rich for experts

� Keeps everyone current and engaged

� Participation of Business and IT

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IBM Blueworks Live: Blueprinting a Process


IBM Blueworks Live: Process Template Library

What It Offers� Search library by process title or

description keywords� Jumpstart process discovery by

leveraging best practices� Pop-up help gives immediate

description of each template stored

Business and IT Benefits� Faster time to value by not

having to start from scratch each time

� Ability to leverage BPM expertise from external sources


�

�

IBM Blueworks Live: Private and Public Activity Streams

What It Offers� One place to view all of your

process info� Ability to exchange information

with your teammates� Access to BPM expertise

Business and IT Benefits� Single view of all of the important

activity in your account� Ability to leverage BPM expertise

from everywhere� Easy mechanism for staying

informed on all process topics of interest


� Enabled 150 users to work remotely and collaborate over large distances� Drastically reduced process duplication, inaccurate data and modification of

older IT platforms� Streamlined all of their business processes, from distribution and logistics to

support and services

Challenges

Results

”IBM Blueworks Live has allowed the business to consciously move away from the traditional hierarchical view of management, with the corporate team and chief executive officer at the top, to a structure which is much more horizontal.”

Steve Burge, IT Director

”IBM Blueworks Live has allowed the business to consciously move away from the traditional hierarchical view of management, with the corporate team and chief executive officer at the top, to a structure which is much more horizontal.”

Steve Burge, IT Director

� Inefficient Collaboration: “Business intelligence” consisted of passing spreadsheets, word documents and napkins back and forth.

� Standardization: Unable to identify and document the firm’s business processes so they could be re-architected into a unified format

� Legacy IT Systems: Lacked consistent IT systems and infrastructure documentation and support making change difficult

Tillamook uses IBM Blueworks Live to Re-Engineer their core Business Processes

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17 © 2012 IBM Corporation

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5

Customer Problem:� Cannot Grow Efficiently� Customer Satisfaction

ExecutiveManagement

CustomerService

InvoiceReconciliationTeams

Finance and Ops

AccountAdministration

1

2

3

61. Informal tasks and

communication (e.g.-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

Barriers to Process Improvement without BPM


Benefits:� 80% Reduction in Manual

Interactions� Faster Issue Resolution

1. Automatically Prioritizes and Routes Work

2. Guides users through decisions

3. Standardizes resolution across geographies

4. Leverages existing systems and data

5. Monitors for business events and initiates action

6. Real-time visibility and process control

BPM

BPM Delivers a Layer for Control and Visibility

ExecutiveManagement

CustomerService

InvoiceReconciliationTeams

Finance and Ops

AccountAdministration


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

Define

Deploy

Update

Measure

GovernanceGovernanceVisibilityVisibility

ManagementManagement

End User InterfacesEnd User Interfaces

DesignDesign

IBM Business Process Manager



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Four Cornerstones of a Process Improvement Foundation

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Modeling

Reports / Analytics

Implementation

Interaction / Forms

Business Leader

Business Analyst

Process Developer

Business Users

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�� Model-Driven Design Facilitates LOB-IT Collaboration ~ “The Picture is the Process”


Process Server

WebSphere ESB

WebSphereApplication Server ND

WebSphereApplication

Server

� Built on the Industry’s Leading Application Server

– Clustering, failover, high availability and robust platform

– Single administration environment– Right-Fit Deployment: XP to Z!

� Standards-based platform – A uniform process composition model

(BPMN)– A uniform invocation programming model

(SCA)– A uniform data representation model (SDO)– Powerful tools based on standards (Eclipse)

to build and reuse standard components– Flexible adapters based on standards (JCA)

to get to existing systems“IBM now has the Broadest SOA Platform Solution”

- Forrester Research

• Single Runtime!• Single Tooling!• Single Administration!

• Single Runtime!• Single Tooling!• Single Administration!

Robust Solution for BPM Built on SOA Scales Horizontally and Vertically� � � �

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Performance Data Warehouse

1

2

3

4

1. Single BPMN model drivesmonitoring as well as execution

2. Data analysis performedcontinuously on-the-fly

3. Real-time visibility to tasks, SLAs that may be in jeopardy

4. Visualize “hot spots” on diagram and drill down for insights

“Automatic” Dashboards, Reports and Analytics for Continuous Process Improvement

� Gather and correlate process metrics and business data for continuous improvement

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• Centralized Repository• Centralized Deployment• Centralized Governance

TestInstance

ProductionInstance

(e.g., US Mfg)

ProductionInstance

(e.g., Europe Sales)

TestInstance . . . . . .

ProcessServer

ProcessServer

ProcessServer

ProcessServer

Process Center

BPM Repository

ProcessDesigner

IntegrationDesigner

Centralized Deployment Control Panel & Dashboard

Integrated Process Governance Simplifies Development and Administration��

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Mapping

Week 1 Weeks 2-3 Weeks 4 to 10 Weeks 11 to 12

Week13

TestTest Go LiveDevelopmentDevelopment

Infrastructure Configuration

Definition

Training/ Mentoring Infrastructure Deployment

Quickly define, test, and deploy complete BPM solutions� Minimal IT skill requirement

� Playback and test exactly how the process will run

� Iterate quickly on different process designs

Speed Process Design and Deployment with Rapid Process Iterations


Challenges:• Lacked integration and cohesion of promotion

forecasting data• Needed ability to scale forecasting process for its

newly expanded enterprise.• Manual reporting and collection process limiting

efficiency, generating inaccuracies and delaying communication of important inventory data

• Wanted a solution that could integrate with its existing business application

Benefits:• Shortened time to market for promotions• Delivered forecast data to managers more quickly

and enabled faster starts for manufacturing and greater inventory readiness

• Achieved more accurate promotional forecasts thru greater insights from previous years forecasts

Business Process Business Process Management SolutionManagement Solution

• Using IBM BPM and IBM Blueworks Live offerings this company enacted greater integration between its business systems, quicker data flows and better coordination between staff

Global Cosmetics and Beauty Conglomerate in New York CityIncreases the efficiency and accuracy of its promotional forecasting process


“Providing innovative products and services while improving the availability, quality, and cost of healthcare is central to our corporate vision. WebSphere Process Server and ILOG JRules have enabled us to automate, optimize and monitor critical business decisions within our core processes.”

~ John Walsh, Chief Enterprise Architect, HealthNow New York Inc.

Challenges:• Respond quickly to regulatory mandates

• Increase efficiency by streamlining internal processes

• Address growing complexity in healthcare

Benefits:• Reduce enrollment time and administrative costs

• Increased speed to market by 50%

• Greater consistency from externalized decision logic and process visibility

Business Process and Decision Business Process and Decision Management SolutionManagement Solution

• Member enrollment process to automate eligibility and coverage for new member applications

• Comprehensive audit trail of rules and decisions

HealthNow Speeds Up Member EnrollmentSpeed to market gains of over 50% to roll out new programs


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Challenges:• Inefficient supply chains drive

up costs• Small companies are

challenged to use technology

• High buffer inventories

• Expedited orders and high transportation costs

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Benefits:• 63% reduction in paper handling costs

• 85% reduction in staffing requirements for manual tasks

• 75% reduction in compliance penalties

Trade Merit Transforms Supply Chain Efficiency with BPM and BAM in the Cloud!


Over 5000 BPM customers worldwide and growing!

#1 in BPMS market share*

IBM was named the number one vendor in BPM

software with a 24.7 percent share, over twice that of its

closest competitor*

Report: A Decade of Leadership. IBM Named Marketshare Leader in Middleware Software for 10th Consecutive Year

*Source: Gartner, Inc., Market Share: All Software Markets, Worldwide, 2010, March 30, 2011

IBM is the Clear Leader in BPM


• Over 8,000 attendees expected – this is the all-in-one conference for Business and IT leaders to learn, network and get access to the top experts in the industry!

• More than 300+ customer, analyst and thought leader speakers available to share their insights and experience!

• Forbes sponsored Business Leadership Forum offering over 40 sessions for LOB executives focusing on the business value and business implications of new technology opportunities and leadership development!

• Extensive Technology Program with over 500 sessions that include a wide array of implementation success stories, lectures, developer education, workshops, hands-on labs, and networking opportunities!

• State of the art Product Technology Center offering open labs, “Meet the Experts” sessions and product demos integrating networking, hands-on training and other social learning into a single program

• World class Solution Showcase Center featuring over 130 business partner and IBM exhibitors demoing the latest technology!

• Industry Zone featuring targeted sessions by industry detailing best practices from the collective experience of 300+ industry leading experts on site!

ibm.comibm.com//impactimpact


� Visit www.blueworkslive.comfor a free 30-day trial

� Attend a free 2-Day Hands-on Workshop: “Discovering the Value of IBM Business Process Manager 7.5”

– February 28-29– IBM Office, 18th floor, Room 18006

11 Madison Ave., New York, NY

� Attend the WebSphere Lab Jam– March 7– IBM Palisades Conference Center

� Come to IMPACT – the largest BPM conference in the world!

– Early Bird discount ends March 2!

ibm.com/bpm

Let’s Get Started!

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