Phil Gilbert BPM

1. IBM BPM UpdateProcess Improvement PatternsBill.Hahn@us.ibm.comSr. Consulting BPM Solution ArchitectOpen Group Master Certified SW IT Specialisthttp://IBMBPMDemos.comfor more information and resources Phil Gilbert BPM Phil Gilbert DM Worksafe Video Banco Video IBMBPMDemos.com

2. Agenda • The Complexity Challenge • Problem Domain Patterns • BPM Solution Patterns • Continuous Process Improvement • Decision Automation & Improvement • Combining Capabilities • Visibility and Control • Successful BPM Programs 2

3. Business leaders must drive growth amidst complexity Capitalizeon complexity and Outmaneuvercompetitors Innovation • 81% believe innovation is key to getting closer to their customers New Channels • 70% are focusing on new channels to deliver services to their customers Collaboration • 69% are collaborating with customers to deliver better products and services 3 Source: IBM CEO Study, 2010

4. Flexibility Process Improvement Requires A “Third Way” BPM 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. Build “Third Way” + + - - Customized Unique High TCO IT bandwidth Reduced time Initial Cost Standard Feature set Reliance on vendor Response to Change + + - - - Buy Low cost/time

5. 1 3 6 5 2 4 Typical process problems Customer Service Finance and Ops Account Administration • Unstructured Tasks and Communication (ex Paper or email) • Inefficient Working Environment Spans Systems • Inconsistent Prioritization • Incomplete or Inaccurate Data Flow Between Systems • Lack of Control Over System and Business Events (Exceptions) • Poor Visibility Into Process Performance 1 Executive Management 2 3 Invoice Reconciliation Teams 4 5 6 5

6. BPM brings order to the chaos Finance and Ops Executive Management Account Administration • Automate workflow & decision making • Reduce errors and improve consistency • Standardize resolution across geographies • Leverage existing systems and data • Monitor for business events and initiate actions • 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 1 Risk ManagementTeams 2 Customer Service 3 4 5 6 6

7. The essential BPM capabilities Customer Service Finance and Ops Executive Management • Modeling • Monitoring • Automation • Governance • Optimization • Rules • Information • Documents • Events • Sys Integration • Collaboration • Analytics Risk ManagementTeams Account Administration 7

8. 8 Customer Video 8

9. Incremental Improvements Provide Major Benefits With Just One Sigma Shift in Process Improvement: Budget available for new projects • 20% margin improvement • 12 - 18% increase in capacity • 10 - 30% capital reduction Budget Budget spent maintaining existing systems and processes Time Source: Six Sigma:The Breakthrough Management Strategy, Mike Harry, Richard Schroeder, 2000. 9

10. Process is everywhere Campaign Management Account Opening Vendor On-boarding Claims Processing Order Fulfillment Customer Problem Handling 10

11. Agenda • The Complexity Challenge • Problem Domain Patterns • BPM Solution Patterns • Continuous Process Improvement • Decision Automation & Improvement • Combining Capabilities • Visibility and Control • Successful BPM Programs 11

12. Key Technologies for Process Improvement Event Event Event Correlate business events and detect critical business situations Monitor and report on data to provide real-time insight Derive deep understanding of data with analytics data data Orchestrate business processes and human task applications Automate high-volume operational decisions with business rules data data • Business Process Management improves the orchestration of people and systems • Business Rule Management improves the quality of automated decisions • Business Event Processing improves situational awareness and response • Visibility and Analytics enables continuous process improvement 12

13. Solution Pattern 1Continuous Process Improvement Monitor and report on data to provide real-time insight data data Process is invoked Orchestrate business processes and human task applications ApplicationServices and Data data data • Business Process Management improves the orchestration of people and systems 13

14. How is Process Discovery done today? 14 • 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

15. Accelerate Change by Improving the Way You WorkStreamline, document, and run processes • Anyone can improve a process • Automate work run through email • Easily document processes • Gain control and insight • Instant dashboards for visibility • Reporting for improved governance • Collaborate for better results • Team up in secure private workspace • Leverage public expert community The best way to engage line of business users in process discovery, documentation, and simple process automation 15 BW Collab bw bpm e2e bwl s bwl m

16. Lincoln Trust achieves rich teaming between business and IT By leveraging IBM BPM Client Pains: Paper overload • 100,000+ client requests per month each generating a paper-based process instance Poor IT-business relationship • Knew paper problem was a process problem but limited IT/Business collaboration prevented improvement Real Results: • $2.2 millionin savings to date • 120% ROI in one year • 25% increase in employee productivity • 50% - 75% reduction in cycle times Lincoln Trust developed an aligned process focus across the company, removing physical paper from 145 company processes 16 16 IBM Confidential

17. 17 IBM Business Process Management in 2011:Unifying Two Market-Leading Platforms • simple to use • fast time-to-value • deep business engagement • high performance • excellent integration • superior integrity http://www.youtube.com/watch?v=x5aTm7tqXDY (F9) 17

18. Process Server BPMN Process Rules Monitoring BPEL ESB IBM Business Process Manager V7.5 Business & IT Authors IT Developers Authors & Administrators Process Center Integration Designer Process Designer Versioned Assets Server Registry Shared Assets Repository Define Update Governance Visibility Deploy Measure Optional Microsoft Add-ons Out-of-box Process Portal Configurable Business Space Widgets Process Owners Process End-Users End User Interfaces

19. IBM Business Process Mgr v7.5 http://BlueworksLive.com Process Portal Process Optimizer Process CenterShared Model Process Designer The simplest way to get started with BPMProcess Discovery“Modeling for Documentation” The quickest way to deliver robust process applicationsProcess Implementation“Modeling for Execution” iS1 BW Collab PD Collab SnapDesign bw bpm e2e bwl s bwl m iS2 BW>PD S Snap Depl 2 Process Designer OF Optimization

20. BPM Developer Integration Developer Manager Worker Administrator BPM Roles-based Development – Rapid, Agile and Iterative Process Portal Process Portal Admin Console UI Screen Flow Coaches Scoreboards Execute • Collaborative platform • Iterative, shortened development cycle • What you model IS what is executed! • Single, Shared process model • Lower technical effort (less time, cost, risk) • Simplicity with Sophistication(Attractive to BOTH Business and IT) Process Designer BlueworksLive.com Process Modeler BPM Shared ModelProcess Center Optimize Design Process Optimizer Integration Designer Process Designer Business Analyst Process Inspector PD Collab OF BPD XL SnapDesign iS1 Coach BFS Sandbox Portal Optimizer bw bpm e2e Designer ILOG S bwl s ProcRulesEv bwl m BPM 75 Adv Integration BW Collab ILOG 1 OF Full BFS BD Search iS2 QS BFS Snap Depl 2 WODM BPM75 a BW>PD S Process Designer Process Portal OF Optimization BW>PD L ILOG 2

21. IBM BPM In Action • Simplicitywith Sophistication: “Business friendly while IT Savvy” • Powerwith Integration Middleware • Visibilityfor Business Stakeholders: Dashboards, reports and more • Governancethroughout Design-time and Runtime Discover Implement Optimize PD Collab OF BPD XL SnapDesign iS1 Coach BFS Sandbox Portal Optimizer bw bpm e2e Designer ILOG S bwl s ProcRulesEv bwl m BPM 75 Adv Integration BW Collab ILOG 1 OF Full BFS BD Search iS2 QS BFS Snap Depl 2 WODM BPM75 a BW>PD S Process Designer Process Portal OF Optimization BW>PD L ILOG 2

22. Solution Pattern 2Decision Automation & Improvement Monitor and report on data to provide real-time insight data data Business Applications and Processes Application is invoked Derive deep understanding of data with analytics data data Automate high-volume operational decisions with business rules • Operational Decision Management improves the quality of automated decisions Applications and Processes leverage these decision results 22

23. Automate Highly Variable Decisions with Precision WebSphere Operational Decision Management Processes People Applications • Eliminate decision silos • Make decision logic accessible to Business and IT • Implement fine-grained, context-specific logic Operational Decision Managment Where Business Rules Typically Exist Rules and Events are Defined, Analyzed and Maintained User Tools Decisions are Stored and Shared Rule Repository Documents Decisions are Deployed, Executed and Monitored Rule Server 23

24. Decision Management Implementation Patterns BRMS User Tools Rule Repository Execution Server • Streamline processes • Facilitate change • Re-use decision assets • Maximize automation • Improve governance Traditional/Vertical Application Transparent Decision Service Applications & Processes Business Decisions 24 ILOG 2 ProcRulesEv WODM

25. IntroducingWebSphere Operational Decision Management V7.5 Events Rules WebSphere Business Events WebSphere ILOG BRMS Contextual Decisions Situational Awareness WebSphere Operational Decision Management Your business decisions. Delivered in real-time by technology. Made by your business experts.

26. WebSphere Operational Decision Management Business End-Users Business Owners Authors & Administrators Business & IT Authors IT Developers 26

27. How Decision Management Works: Customer Acquisition Detect Decide Respond Multi-channel quote requests Event Pattern: Customer requests a series of quotes with increasing deductibles Make a personalized offer Business Rules: Customer good prospect, find best promotion Internet Event Pattern: 2 web quote requests and 1 direct contact in 3 days Trigger agent call back to assist Business Rules: Determine best product Call Center Event Correlations Event Pattern: Same vehicle ID with different addresses on phone & Web request: Seek clarification Business Rules: Is customer gaming the system? Agency Events Rules Decisions 27 ILOG 2 ProcRulesEv WODM

28. Business Rules Management using Tools Familiar to the Business to Promote Collaboration Managing Rules in Microsoft Word and Excel! ILOG 2

29. Customer Video 29 29

30. Solution Pattern 3Combining Capabilities Monitor and report on data to provide real-time insight data data Process is invoked Orchestrate business processes and human task applications Application Services and Data Derive deep understanding of data with analytics data data Automate high-volume operational decisions with business rules • Operational Decision Management improves the quality of automated decisions • Business Process Management improves the orchestration of people and systems 30

31. Redefined Life Cycle Business Process Updates (Months, Years) Release 1.0 Release 2.0 BPM Business Process Owners Change in production Business Decision Owners Operational Decisions Release 1.1 Release 1.2 Release 1.3 Release 2.0 Release 2.1 Business Decisions Updates (Days, Weeks) ILOG 2 ProcRulesEv WODM

32. BPM delivers increasing business value as adoption progresses Project Program Transformation Business Value Realized Efficiency Effectiveness Agility Outmaneuver competitors with rapid response to change Work smarter to deliver higher revenue and profit Take time and cost out of the process Line of Business Personnel Launch Campaigns in Two Days Instead of Months Reduced development time by 40% Drives $3.6M in additional revenue and saves $2.7M by integrated sourcing processes with real-time inventory visibility Speed to market gains of over 50% Cut “engineering” time of designers on car systems by 20% in one year. Saved more than $100M with improved efficiencies and higher levels of customer service 32

33. Case Study: HealthNow Improved Member Enrollment Processing • Situation • Multiple legacy systems • Highly manual, disjointed processes • Difficulty in adapting systems to meet new regulatory and customer requirements • Process Management Selected WebSphere BPM to: • Improve operational efficiency & accuracy • Improve process orchestration across multiple systems and decrease process costs • Deliver end-to-end process visibility • Rules Management Selected 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 “Websphere BPM and ILOG JRules have enabled us to automate, optimize and monitor critical business decisions within our core processes such as member enrollment while delivering tangible benefits.” 33

34. Automate and Improve High-Volume Operational Decisions Leveraging Business Rules on Multiple, Complex Events Operational Decision Mgmt Combined rules and events capabilities to power flexible decision management solutions • Operational Decision Managementcombines • WebSphere Business Events and WebSphere ILOG JRules • Detect critical events across the business network and automate precise, context-specific decisions • 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 Can be used for fully automated interactions, or… …for decision support in the back-office, or… … to provide decision guidance for personal interactions with customers 34

35. “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 35

36. Build your roadmap to process improvement 3 Establish a Program 2 Succeed with an Initial Project 1 Identify Business Challenge and Value • Extend automation with greater integration across the enterprise • Further optimize decisions with situational context from business events • Provide detailed visibility into running processes with configurable dashboards Business Outcomes • Undertake an initial process or decision improvement project based on assessed need • Leverage proven methodologies to implement process and/or decision automation within 90 days. • Collaborate with colleagues to understand and document existing processes • Use as-is process maps and leverage IBM expertise to identify key improvement opportunities Project Scope 36

37. Get started today • Trial IBM Blueworks Live • Consider a Discovery Workshop • Explore a Quick Win Project • Watch Demos at: http://IBMBPMDemos.com ibm.com/bpm 37