warning: don't assume your business processes use master data · ... don't assume your...

© 2010 Forrester Research, Inc. Reproduction Prohibited© 2009 Forrester Research, Inc. Reproduction Prohibited1

Warning: Don't Assume Your Business Processes Use Master Data

Clay Richardson

September 15, 2010

© 2010 Forrester Research, Inc. Reproduction Prohibited2

Business process professionals must recognize data and

process as two sides of the same coin to drive effective

business transformation.


Survey of 2227 SMB and Enterprise IT decision makers



I heard this BPM thing might help us reduce

costs.


66%BPM



costs.


66%BPM

64%Open

Source



costs.


66%BPM

64%Open

Source40%SaaS



costs.


BPM adoption strongest in hardest hit sectors

Source: August 2010, “Forrester Wave™: Business Process Management Suites, Q3 2010” Forrester report


BPM programs face many critical challenges.



Building consensus and

adoption




adoption

Growing process skills

and roles




adoption

Growing process skills

and roles

Connecting process

improvement to data quality


Why don’t process professionals find data sexy?

Source: http://www1.pictures.gi.zimbio.com/Chanel+Cruise+2010+Fashion+Show+-Fcz3Iv1SeLl.jpg


Why do data management professionals overlook process context?



“Data is an IT problem” business

mentality




mentality

Leads to…



“If we build it, they will come” IT

mentality


mentality

Leads to…


Most teams fail to see the connection between BPM and MDM…

Source: September 2009, “Warning: Don’t Assume Your Business Processes Use Master Data” Forrester report



83%No interaction




83%No interaction

Limited interaction 11%




83%No interaction

Limited interaction 11%

Coordinated 8%



… until it’s too late

Vicious cycle of process data

failure



1. Master data issues unaddressed or left unresolved


failure



2. Garbage in, garbage out creates process confusion



failure




3. Lack of process trust slows BPM momentum



failure




3. Lack of process trust slows BPM momentum

4. Data conflicts reinforce silo’d approach to process improvement



failure


MDM teams only focus on cleaning downstream data – after the fact.

Source: October 2009, “It's Time To Invest In Upstream Data Quality” Forrester report


What are the risks of not connecting data quality to process context?



Low quality data



Low quality data

Business Processes



Low quality data

Business Processes

Process intelligence and reporting



Low quality data

Business Processes


Low quality outcomes



Low quality data

Business Processes


High quality data




Low quality data

Business Processes


High quality data

Processes connected to master data




Low quality data

Business Processes


High quality data






Low quality data

Business Processes


High quality data




High qualityoutcomes


Process data management synchronizes efforts between BPM and MDM teams.



Process data management provides a safety net against process data failure.



MDM

Implement data governance

processes for cleansing

upstream data.




MDM

Implement data governance

processes for cleansing

upstream data.

BPM

Ownership for data quality

throughout all phases of

implementation.



IT stewards

Business-savvy Strong communicators

Educators across ITProcess architects

As IT stewards, data architects and process architects are critical to the success of data governance and process improvement efforts across multiple business initiatives.


Business stewards

IT-savvy Strong communicators

Educators across the business

Experienced business analysts and process analysts with the expertise to bridge business and IT communications often make the best business stewards.


Identify similar roles across BPM and MDM initiatives

No involvement Some involvement Full involvement

BusinessSteward

ITSteward

MDM

BusinessSteward

ITSteward

BPM




BusinessSteward

ITSteward

MDM

BusinessSteward

ITSteward

BPM

Prioritization and business case development




BusinessSteward

ITSteward

MDM

BusinessSteward

ITSteward

BPM


Requirements analysis




BusinessSteward

ITSteward

MDM

BusinessSteward

ITSteward

BPM



Business policies and standards




BusinessSteward

ITSteward

MDM

BusinessSteward

ITSteward

BPM



Define KPI’s and metrics





BusinessSteward

ITSteward

MDM

BusinessSteward

ITSteward

BPM

Technology selection



Define KPI’s and metrics



Governance

Scoping and Assessment

Requirements

Architecture and Solution

Monitoring

Define virtuous cycle of process data management

Is there accountability for data quality throughout the entire lifecycle?

Are we structuring and analyzing process data across internal silos?

Do process models show relationships to existing master data? Do data libraries show relationships to processes?

Is our data and application architecture supporting all information requirements use cases?

Is data quality measured and monitored for business processes?

Feedback


Process analysts should ask probing questions about data…



Data quality teams should map data operations back to key business processes



Software vendors still playing catch up on process data management…

August 2009 “Forrester TechRadar™ For BP&A Pros: Business Process Management Suites, Q3 2009”


… but some vendors beginning to take process data seriously



IBM and Metastorm provide impressive business glossaries



IBM and Metastorm provide impressive business glossaries

Pega and Appian provide support for synchronizing data


First point of process data convergence: “business glossaries”

• Simplified data modeling and definition for process teams

• Connected to existing business glossaries defined by data architects and librarians

• Ability for process analysts to associate CRUD actions with specific activities

• But more needs to be done…

Source: IBM


Some vendors also embedding data quality metrics embedded into processes

Screenshot: Siperian BDD and Lombardi Teamworks Integration

© 2010 Forrester Research, Inc. Reproduction Prohibited© 2009 Forrester Research, Inc. Reproduction Prohibited23

Other BPM Trends To Watch


BPM is now the language of IT-to-BT

Vertical/ functional

Functional/process overlays

Process/functional overlays

Service/process organization

From traditional LOB and functional management

To Horizontal Centers of Excellence

Source: BPM Focus (www.bpmfocus.com)


Old School BPM Suites



Multiple disconnected process models for a single process project.




Unified process repository for single-model refinement.





Process repository





Process repository

Business view





Process repository

Business view

Technical view





Process repository

Business view

Technical view

“Sync and

Merge”


Social adds new layer to BPM fabric

Define Execute MonitorCreate

Manage Optimize




Manage OptimizeSoc

ial L

ayer




Manage OptimizeSoc

ial L

ayer

Real-time,collaborative

discovery




Manage OptimizeSoc

ial L

ayer


discovery

Shareddevelopment




Manage OptimizeSoc

ial L

ayer

Ad-hoc anddynamic routing


discovery

Shareddevelopment




Manage OptimizeSoc

ial L

ayer



discovery

Shareddevelopment

Configurabledashboards, event

streams




Manage OptimizeSoc

ial L

ayer

Enhancement tagging,ad-hoc path analysis



discovery

Shareddevelopment


streams




Manage OptimizeSoc

ial L

ayer

Singlemodel

refinement

Enhancement tagging,ad-hoc path analysis



discovery

Shareddevelopment


streams


Many social BPM patterns emerging



Collaborative Discovery – Extending process discovery to include front-line business users and customers for bi-directional communication




Shared Development - Extending development to include business stakeholders and non-developers as equal partners in process development.




Shared Development - Extending development to include business stakeholders and non-developers as equal partners in process development.

Process Guidance – Tapping internal and external social networks to provide users with real-time guidance on how best to complete a specific process step or activity.


Conclusions

Process improvement and data quality are intimately linked and must work hand-in-hand

Connect process governance and data governance to minimize the risk of process data failure

Review and synchronize key tasks and roles across process improvement and master data initiatives

Develop a shared business glossary across business process and master data teams


Thank you

Clay Richardson

+1 [email protected]

www.forrester.comtwitter: @passion4process

http://www.forrester.com/

http://www.forrester.com/

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