A Smarter Approach to
Processes and Decisions
Proven patterns for successful process improvement
Mike Huseman
WW BPM and Decision Management
IBM Software Group
Bill Hahn
BPM Solution Architect
IBM Software Group, North America
Agenda
The Agility Challenge
Patterns for Success
1.
Business Process Management
2.
Decision Management
3.
BPM & DM Together
Projects to Programs to
Transformation
3
Business Growth & Complexity
CEOs Recognize the Challenges and Opportunities as the
Business Network Becomes More Dynamic
IBM Global CEO Survey, Institute for Business Value, 2010
“
In these uncertain times,
effective and swift
decision making
is more important than ever.
”
Shuzo Sumi,
President and CEO
Tokio Marine Holdings, Inc.
“
Our products
need to
anticipate need
, rather than
respond to a request.
”
Michael D
’
Ascenzo,
Commissioner of
Taxation, Australian Taxation Office
“
The
complexity over the next five years
is off the
charts
–
a 100 on your scale from 1 to 5
”
Edward Lonergan,
President and CEO
Diversey, Inc.
4
Developers
Rest of IT
Leveraging your
knowledge workers
can be a huge opportunity
240x
Business Participants
Doing More with Less…
Engagement & Self
-
Service
Agenda
The Agility Challenge
Patterns for Success
1.
Business Process Management
2.
Decision Management
3.
BPM & DM Together
Projects to Programs to Transformation
Account
Opening
Campaign
Management
Regulatory
Compliance
Vendor On
-
boarding
Order
Fulfillment
Customer
Problem Handling
Process is everywhere
8
Solution Pattern 1:
Business Process Management
Executive
Management
Customer
Service
Invoice
Reconciliation
Teams
Finance
and Ops
Account
Administration
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
1
2
3
5
4
6
Typical process problems
9
1
2
3
4
5
6
Executive
Management
Customer
Service
Risk Management
Teams
Finance
and 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
Business 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
1
2
3
4
5
6
10
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
Executive
Management
Customer
Service
Invoice
Reconciliation
Teams
Finance
& Ops
Account
Administration
1
2
Customer Video
12
Process Improvement Requires A “Third Way”
Flexibility
Low cost/time
Build
Buy
Customized
Unique
High TCO
IT bandwidth
Reduced time
Initial Cost
Standard Feature set
Reliance on vendor
Response 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
•
Figure it out yourself
•
Lock the team in a conference
room for day(s)
•
Sticky notes
•
Whiteboard drawings
•
Back and forth till you finally
understand your process
•
Scribe it all down
•
Convert it to a diagram/drawing
Let’s Start With Process Discovery
and how is it done today?
14
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
15
Accelerate Change by Improving the Way You Work
Streamline, document, and run processes
‣
Increasing Transparency through
Documentation
•
Document and provide standard process across 8
regional offices
•
Simple processes from travel requests to complex
processes like new traffic control tower setup
‣
Centralizing and Standardizing Processes
•
Document and standardize processes across 14
domestic and 5 international call centers
•
Able to centralize core workforce management
functions due to large part of standardized process
‣
Incorporating Broad Participation
•
External business areas view and maintain their own
processes within a centralized repository
•
Reduced resources to manage and administer process
repository from 14 to 2
•
Reduced change requests from 8 weeks to 2 minutes
Government Agency
Worldwide Outsourcer
Global Insurer
Lowering Barriers to Collaboration creates Value
16
Enable faster business
-
led
change
Power
to scale with
transactional integrity
Governance
to manage
change confidently
Change is inevitable. Adapt accordingly.
Embrace complexity, adapt quickly and exceed expectations
Simplicity
for deep business
user engagement
Visibility
to empower
business users to optimize
processes
17
18
Shared Assets
Versioned 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
IBM Business Process Manager
Define
Deploy
Update
Measure
Governance
Visibility
Management
End User Interfaces
Design
IBM Business Process Manager
Now available
in the Cloud
IBM Business Process Manager Leverages SOA Infrastructure
Systems
SOA
BPM
Executive
Management
Customer
Service
Invoice
Reconciliation
Teams
Finance
& Ops
Account
Administration
•
IBM Business
Process Manager
Advanced Edition
Individual Processes
Process Complexity
22.5%
75.0%
2.5%
The Full Spectrum of BPM can be addressed
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
IBM
Business
Process
Manager
IBM Blueworks Live
20
Paper overload
•
100,000+ client requests per
month each generating a paper
-
based process instance
•
Client complaints due to lost
documents
Poor IT
-
business relationship
•
Paper problem was understood
but limited IT/Business
collaboration prevented
improvement
21
Business Challenges at Lincoln Trust Company
Leading independent provider of trust and custodial services
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 BPM Blueworks
•
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 processes
1
2
22
Partnering for Process Improvement
Lincoln Trust developed an aligned process focus across the company
Results
•
$2.2 million
in savings to date
•
120%
ROI in one year
•
25%
increase in employee
productivity
•
50%
-
75%
reduction in cycle
times
•
90%
reduction in customer
complaints
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
23
Process Improvement Benefits at Lincoln Trust
24
IBM Business Process Manager V7.5 Demo
Operational Decision Management
Analytical Decision Management
Business Processes, Applications & Solutions
Decision
Services
Business
Rules & Events
Predictive Analytics
& Optimization
Internal & External Data
Policy
Regulation
Best Practices
Know
-
how
Risk
Clustering
Segmentation
Propensity
Scenario Analysis
& Simulation
Decision Management
is a business discipline that enables
organizations to automate, optimize and govern repeatable
business decisions.
Solution Pattern 2:
Decision Management
25
How Decision Management Works: Customer Acquisition
Call Center
Internet
Agency
Make a
personalized offer
Trigger agent
call back to assist
Seek clarification
Multi
-
channel
quote requests
Respond
Decide
Detect
Business Rules:
Is customer
gaming the system?
Event Pattern:
Same vehicle ID
with different addresses on phone
& Web request:
Event
Correlations
Business Rules:
Customer good
prospect, find best promotion
Event Pattern:
Customer requests
a series of quotes with increasing
deductibles
Event Pattern:
2 web quote
requests and 1 direct contact in 3
days
Business Rules:
Determine best
product
Decisions
Rules
Events
26
Decision Management
Solution
Deployed a BRMS to automate
its order system, eliminates
invalid orders, shortens the
fulfillment cycle, while saving
the company manpower costs
and reduces operational costs to
comply with regulatory changes
Verizon Wireless used the WebSphere ILOG JRules business rule management
system (BRMS) to automate its order validation process. The JRules BRMS
automates the verification of incoming orders and diagnoses errors. Verizon
has been able to reduce invalid orders out of its systems, reduce operational
costs and shorten fulfillment cycle time
Challenge:
The nation's most reliable and largest wireless voice
and 3G data network, serving more than 93 million
customers
Needed to increase self service, improve customer
experience and be quickly adapt to meet pressures of
the market
Benefits:
Keep invalid orders off the system
Shorten fulfillment cycle
Human resource savings
Reduced operational costs to comply with
regulatory changes
Verizon Wireless increased customer service
And achieved business agility
WebSphere Operational
Decision Management
Situational
Awareness
Contextual
Decisions
Business
Rules
Real
-
time BEP
(CEP)
WebSphere Operational Decision Management 7.5 highlights
The
most complete platform for building decision management solutions
that can
use both event
-
based and knowledge
-
based decision logic
The
most extensive capabilities for LOB subject matter experts
to directly participate
in the definition and maintenance of decision logic
The
most powerful governance and management functionality
(e.g. versioning and
history, role
-
based security, team collaboration, multiple concurrent release management)
WebSphere Operational Decision Management v7.5
Combined business rules and business events management platform
28
Rule Designer
Event Designer
Decision Center
Console
Rule Solutions
for Office
Decision Center
for Business Space
Design
Design
Design
Management
Management
Management
WebSphere Operational Decision Management
WebSphere Decision Center
Decision Artifacts
Versioning
Access and Control
Repository
Rule
Execution
Rule
Execution
Event
Execution
Event
Execution
Decision
Monitoring
Decision
Monitoring
Connectors
Connectors
WebSphere Decision Server
Define
Deploy
Update
Measure
Visibility &
Visibility &
Governance
Governance
Rule Designer
Event Designer
Decision Center
Console
Rule Solutions
for Office
Decision Center
for Business Space
Design
Design
Design
Management
Management
Management
WebSphere Operational Decision Management
WebSphere Decision Center
Decision Artifacts
Versioning
Access and Control
Repository
Rule
Execution
Rule
Execution
Event
Execution
Event
Execution
Decision
Monitoring
Decision
Monitoring
Connectors
Connectors
WebSphere Decision Server
Define
Deploy
Update
Measure
Visibility &
Visibility &
Governance
Governance
Decision Center
Contains all the
business user
capabilities
:
repository, web
environment, test
and validation,
Business Space
components, Rule
Solutions for Office
Decision Server
Contains all the
technical
capabilities:
runtimes for
business rules and
events, execution
mgmt, integration
connectors,
developer tooling
WebSphere Operational Decision Management
Products/Components
29
Managing Decisions in Microsoft Word and Excel!
Leverages Tools Familiar to the Business to
Promote Collaboration
31
31
Customer Video
Improved efficiencies, higher levels of customer service and
worker safety
Significant improvement in fraud detection
Estimated payback of 6 months
Save more than $100 million dollars
Client Pains
Australian state social service agency dedicated to employee
worker safety and compensation
Ensure timely workplace claims processing for citizens
Identified a specific project that would benefit from automated
workflows and decision points
Business
Outcomes
WorkSafe Victoria Improves Operational Efficiency
Delivering outstanding workplace safety together with quality
insurance protection to workers and employers
Process automation and business rules software to increase
efficiencies and cut costs while helping Victorian workers
return home safe every day
32
33
Rules & Events Demo
Agenda
The Agility Challenge
Patterns for Success
1.
Business Process Management
2.
Decision Management
3.
BPM & DM Together
Projects to Programs to Transformation
35
Distinct technologies but Complementary Solutions
Process Management
Operational Decision Management
•
Defines and orchestrates the end
-
to
-
end
process
•
Combines automatable and human elements
•
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
35
Starts
Notifies
Invokes
Responds
How they collaborate….
Solution Pattern 3:
Combining BPM and Decision Management
36
May
June
July
August
September
October
April
Process and Decision Life
-
Cycles can be
Managed Independently
Strongest Ecosystem and Partner Network
800+
Business Partners authorized and certified to support customers
Strongest global ecosystem including major global and regional
system integrators skilled to provide
comprehensive solutions
Unparalleled Expertise and Investment
Expert consulting and implementation services for
fast realization
of
business value
Industry expertise to
customize solutions
for your specific industry
Why IBM for BPM and Decision Management?
Largest Customer Base
#1
in Business Rule Management Systems (BRMS) market share
according to all leading analysts
#1
in Business Process Management (BPM) market share according
to all leading analysts
37
38
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