© 2011 ibm corporation process improvement ~ patterns for success david keyes bpm sales executive...
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© 2011 IBM Corporation
Process Improvement ~ Patterns for Success
David KeyesBPM Sales Executive
IBM Software Group, North America
Agenda The Complexity Challenge
Patterns for Success1. Business Process Management2. Business Rules Management 3. BPM plus Business Rules Mgmt4. Business Events with Business Rules
Break
BPM in Action - Demo
11 Habits of Highly Successful BPM Projects
2
Complexity
IT Budget
Complexity
IT Budget
Have You Experienced this Issue?
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CommercialLOB
AutoLOB
InternalEmployees
InsuranceCarrier
Sales
Finance
Marketing
Complexity exists internally within organizations……
HomeLOB
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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
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…
….and externally within the broader business network Companies need end-to-end process management
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Can Your Processes Handle Change, Uncertainty and Complexity?
Transformation Today Means:
Simpler Business Led Change
Full Process Visibility and Governance
Optimized Processes and Decisions
Agile Processes and Decisions with Business Process Management
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Account Opening
Campaign Management
Claims Processing
Vendor On-
boarding
Order Fulfillment
Customer Problem Handling
Process is everywhere
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Agenda The Complexity Challenge
Patterns for Success1. Business Process Management2. Business Rules Management 3. BPM plus Business Rules Mgmt4. Business Events with Business Rules
Break
BPM in Action - Demo
11 Habits of Highly Successful BPM Projects
11
Key Technologies for Process Improvement
• Business Process Management improves the orchestration of people and systems• Business Event Processing improves situational awareness and response• Business Rule Management improves the quality of automated decisions • Visibility and Analytics enables continuous process improvement
Correlate business events and detect critical business
situations
Orchestrate business processes and human task applications
Automate high-volume operational decisions with business rules
Derive deep understanding of data with analytics
Derive deep understanding of data with analytics
Monitor and report on data to provide real-time insight
Monitor and report on data to provide real-time insight
data
data
data
data
Event
EventEvent
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• Business Process Management improves the orchestration of people and systems
Orchestrate business processes and human task applications
Monitor and report on data to provide real-time insight
Monitor and report on data to provide real-time insight
data
data
data
data
ApplicationServices and Data
ApplicationServices and Data
Process is invoked
Solution Pattern 1Business Process Management
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ExecutiveManagement
CustomerService
InvoiceReconciliationTeams
Finance and Ops
AccountAdministration 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
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3
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Typical process problems
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1
2
3
4
5
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ExecutiveManagement
CustomerService
Risk ManagementTeams
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
• Easier to Manage the Business
• Consistent Case Handling
BPM brings order to the chaos
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2
3
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BPM Leverages a Service Oriented Architecture (SOA)
– 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.
Systems
SOA
BPM
ExecutiveManagement
CustomerService
InvoiceReconciliation
Teams
Finance& Ops
AccountAdministration
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.
BPM
Individual Processes
Pro
cess C
om
ple
xity
22.5%22.5%22.5%22.5%
75.0%75.0%75.0%75.0%
2.5%2.5%2.5%2.5%
The Full Spectrum of BPM is Daunting
Highly complex processes typically found in global enterprises
Somewhat complex processes common to global & mid-market companies
Simple processes common to all sizes of businesses
IBMIBMBusiness Business Process Process ManagerManager
IBM Blueworks Live
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• 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
How is Process Discovery done today?
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Accelerate Change by Improving the Way You WorkStreamline, document, and run processes
The best way to engage line of business users in process discovery, documentation, and simple process automation
Gain control and insight• Instant dashboards for visibility
• Reporting for improved governance
Anyone can improve a process • Automate work run through email
• Easily document processes
Collaborate for better results• Team up in secure private workspace
• Leverage public expert community
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Simple. Social. SaaS.Simple. Social. SaaS.http://BlueworksLive.com
Business challenges at Lincoln Trust CompanyLeading independent provider of trust and custodial services
Paper overload
• 100,000+ client requests per month each generating a paper-based process instance
Poor IT-business relationship
• Paper problem was understood but limited IT/Business collaboration prevented improvement
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Partnering for process improvementLincoln Trust developed an aligned process focus across the company
Joint LOB-IT executive steering committee and a small BPM team developed a 2-part strategy for process improvement:
• Common “shared process” for document imaging and automation using content management tools
• Removed physical paper from 145 company processes
• Business teams created “as-is” and “to-be” process models using IBM Blueworks Live
• IT teams implemented automated workflows for 15 processes including service requests, plan establishment, and distributions
Quickly address key pain point
Business-led automation for full business processes1 2
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Process Improvement Benefits at Lincoln Trust
Results
• $2.2 million in savings to date
• 120% ROI in one year
• 25% increase in employee productivity
• 50% - 75% reduction in cycle times
Best Practices
• Build a partnership between business and IT
• Focus on business value – be willing to trade-off for an initial project
• Include process analysis skills on BPM teams, but don’t over-analyze
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Visibility
Simple, easy-to-use modeling using standard BPMN
Immediate “playback” for rapid collaboration
Process rule editor uses ILOG language
Real-time process scoreboards
“Heat maps” show bottlenecks in process model
Real-time reports delivered within process “coaches”
Simplicity
Industry standard BPEL orchestration
Built-in ESB and integration adapters
Transaction support
Power
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Introducing a new solution to a complex problemEmbrace complexity, adapt quickly and exceed expectations
Single repository of all process assets
“Toolkits” for sharing assets
Simple snapshot versioning (1-click)
Centralized deployment control center (1-click)
Governance
Out-of-box Process Portal
ConfigurableBusiness Space
Optional Microsoft Add-ons
BPMN Rules Monitoring BPEL ESB
Process Server
Process Designer
Governance of Entire BPM Life Cycle
Shared AssetsVersioned Assets
Server Registry
DesignDeployImprove
Measure
Business & IT Authors IT Developers
Authors & Administrators
Process End-Users Process Owners
Integration Designer
Process Center
BPM Repository
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IBM Business Process Manager V7.5
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IBM Business Process Manager Leverages SOA Infrastructure
Systems
SOA
BPM
ExecutiveManagement
CustomerService
InvoiceReconciliation
Teams
Finance& Ops
AccountAdministration
•
IBM Business Process Manager Advanced Edition
IBM Business Process Manager Advanced Edition
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Different configurations match typical entry points or stages in a company’s BPM program
Extended support for high-volume process automation, with high quality-of-service
Built-in SOA components for extensiveenterprise-wide service integration, orchestration
Complete set of advanced BPM capabilities
Configured for typical BPM projects For multi-project improvement programs,
with high business involvement Basic system integration support Rapid time-to-value: improved user productivity
For small number of users – single server,no clustering
Low entry price Install in a few clicks
Configured for first BPM project
Advanced
Standard
Express
Solution Pattern 2Business Rules Management
• Business Rules Management improves the quality of automated decisions • Applications and processes use decision results
Business Applications and Processes
Automate high-volume operational decisions with business rules
Monitor and report on data to provide real-time insight
Monitor and report on data to provide real-time insight
data
data
data
data
Application is invoked
Derive deep understanding of data with analytics
Derive deep understanding of data with analytics
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Where Business Rules Typically Exist
Applications
ProcessesPeople
Documents
Business Rule Management System
Rules are Defined, Analyzed
and MaintainedUser Tools
Rules are Stored and
Shared
Rule Repository
Rules are Deployed, Executed
and MonitoredRule Server
Automate Highly Variable Decisions with Precision WebSphere ILOG Business Rule Management System
• Eliminate decision silos• Make decision logic
accessible to Business and IT• Implement fine-grained,
context-specific logic
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Managing Rules in Microsoft Word and Excel!Managing Rules in Microsoft Word and Excel!
Business Rules Management using Tools Familiar to the Business to Promote Collaboration
• Business Rules Management improves the quality of automated decisions • Business Process Management improves the orchestration of people and systems
Orchestrate business processes and human task applications
Derive deep understanding of data with analytics
Derive deep understanding of data with analytics
Monitor and report on data to provide real-time insight
Monitor and report on data to provide real-time insight
data
data
data
data
ApplicationServices and Data
ApplicationServices and Data
Process is invoked
Solution Pattern 3Combining BPM and Business Rules Mgmt
Automate high-volume operational decisions with business rules32
Two-Pronged Approach to Process Improvement
Process Management Rules Management
• Defines and orchestrates the end-to-end process
• Combines automation with user interaction
• Is fundamentally concerned with operational efficiency of the organization
• Defines and executes specific decision points in processes and applications
• Is focused on automating and improving decisions
• Is fundamentally concerned with the operational intelligence of the organization
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BRMS Enables a Consistent Implementation of Business Policies
BRMS
User Tools
Applications & Processes Business Decisions
Transparent Decision Service
Rule Repository
Execution ServerExecution Server
Traditional/Vertical Application
Streamline processes Facilitate change Re-use decision assets Maximize automation Improve governance
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Process ManagementSelected WebSphere BPM to:• Improve operational efficiency & accuracy• Improve process orchestration across multiple
systems and decrease process costs• Deliver end-to-end process visibility
Rules ManagementSelected WebSphere ILOG JRules for:• Straight-through eligibility determinations• Compliance enforcement• Accelerate implementation of decision changes
New Enrollment System Benefits• Time-to-market gains of over 50%• Ability to introduce new policies into systems in
days rather than weeks or months• Reduction in enrollment time and costs• Increased business and IT collaboration• Comprehensive audit trail
Situation• Multiple legacy systems• Highly manual, disjointed processes• Difficulty in adapting systems to
meet new regulatory and customer requirements
Case Study: HealthNowImproved Member Enrollment Processing
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“…enabled us to automate, optimize and monitor critical business decisions within core processes”
John Walsh, Chief Enterprise Architect, HealthNow New York Inc
Common Use Cases
• Improve Workflow– Claims handling, end-to-end loan
origination, grants approval, customer service / call center, engineering change management
• Handle Business Exceptions– Billing disputes, invoice reconciliation,
distressed shipment rescue, proactive error reduction
• Compliance Oversight– Disclosure filings, legal reviews, permit
approvals
• Improve Visibility– Bridge siloed applications, unified user
interface, end-to-end monitoring
• Straight-through Processing– Eligibility determinations, pricing
calculations, promotional offer selection, claims assessment and benefits determination
• Risk Mitigation– Credit eligibility determination, liability
calculations, fraud assessment, product configuration review
• Compliance Oversight– Multi-level regulatory requirements
enforcement, contractual terms administration, legal document selection
• Decision Support– Service level assignment and case
prioritizations, product recommendations, self-service problem resolution
Process Management Rules Management
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Solution Pattern 4 Combining Business Events and Business Rules
• Business Events Processing improves situational awareness and response• Business Rules Management improves the quality of automated decisions
Correlate business events and detect critical business
situations
Orchestrate business processes and human task applications
Automate high-volume operational decisions with business rules
Monitor and report on data to provide real-time insight
Monitor and report on data to provide real-time insight
data
data
data
data
Event
EventEvent
Derive deep understanding of data with analytics
Derive deep understanding of data with analytics
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Business Event Processing and Business Rules Management
Decide (BRMS)
Decide (BRMS)
Evaluations Correlations
Event Sources
Detect (BEP)
Detect (BEP)
Actions Actions
BEP - Detects when events or patterns of events occur to notify people or systems to take action
BRMS - Decides business outcome through execution of business rules against available data
Together : Additional Insight for ActionTogether : Additional Insight for Action
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Can be used for fully automated
interactions, or…
… to provide decision guidance
for personal interactions with
customers
…for decision support in the back-
office, or…
WebSphere Decision ServerCombined rules and events capabilities to power flexible decision management solutions
• Major American Utility Company delivers electricity to 2 million customers in a 5,000-square-mile area
• Smart Grid is a top priority:
– Business Events Processing is used for detecting events and event patterns from Smart Meters as they occur
– Business Rules Management increases automation of follow-up decisions on Smart Meter alerts, based on the collective knowledge of operational subject matter experts
WebSphere Decision Server combines WebSphere Business Events and WebSphere ILOG JRules
• Detect critical events across the business network and automate precise, context-specific decisions
WebSphere Decision Server combines WebSphere Business Events and WebSphere ILOG JRules
• Detect critical events across the business network and automate precise, context-specific decisions
Automate and Improve High-Volume Operational DecisionsIBM WebSphere Decision Server v7.1
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“Complexity should not be viewed as a burden to be
avoided; we see it as a catalyst and an accelerator to create innovation and new ways of
delivering value.”Juan Ramon Alaix, President,
Pfizer Animal Health
Think big
Start small
Scale fast
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