IBM Smarter Process BPM - Business Process Manager (Process)

1. BPM 101 IBM Smarter Process BPM - Business Process Manager (Process) ODM – Operational Decision Manager (Rules & Events)

2. BPM Topics What is BPM? Typical Business Value Key Capabilities

3. Have You Ever Experienced This?

4. BPM Can Help Realize Your Business Goals

5. What is Business Process Management (BPM)? Business Process Managementis… … a combination of technology and methodology that allows you to more quickly and clearly… … identifyandcommunicate what you do as an organization … measure how well you’re doing it … optimize and improve your processes … to bring real business value to your organization.

6. Business Process Management Fundamentals BPM Defined: An integrated approach to aligning the key activities of an organization into processes that you can consistently measure to optimize value to your organization and its end customers. 6

7. Typical Business Process Challenges & Results Poor visibility into business processes Significant amount of rework due to exceptions • BPM’s value to the company was higher than ERP, CRM and SCM. • Organizations had > 90% success rates on BPM projects. • 67% of projects were completed in < 6 months, 50% in < 4 months. • 77% of projects had returns greater than $100,000 per project. • BPM projects had 10% or more Internal Rate of Return(78% had >15% IRR, some as high as 360%) • 80% of the respondents felt an increase in competitive advantage. • (Source: “Justifying BPM Projects”, Gartner) Lost productivity due to unstructured tasks or inconsistent prioritization Inefficient handling of work, spanning multiple systems 7 Inability to change processes as frequently as business demands

8. Improve business efficiency & innovation with Smarter Process Typical process problems BPM brings order to the chaos Executive Mgmt Account Administration Billing Risk ManagementTeams Invoice Reconciliation Teams ERP Account Admin Customer Service Imaging Rules Finance & Ops Rules Rules CRM Executive Management Customer Service Finance and Ops • Inefficient working environment • Incomplete or inaccurate data flow • Inconsistent prioritization • Lack of control over the process • Poor visibility into process performance • Automate workflow & decision making • Reduce errors and improve consistency • Leverage existing systems and data • Streamline processes and initiate actions • Real-time visibility and process control

9. 5 2 4 1 3 6 Typical Process Problems – Business Chaos Customer Service Finance and Ops Account Administration • Unstructured Tasks(Phone, paper, email attachments, etc.) • Inefficient Working Environment Spans Systems • Inconsistent Prioritization • Incomplete or Inaccurate Data Flow Between Systems & People • Lack of Control Over Process Flow and Business Events/Exceptions • Poor Visibility Into Process Performance Executive Management Invoice Reconciliation Teams

10. 5 2 4 1 3 6 Typical Process Problems – Business Chaos Customer Service Finance and Ops Account Administration Inefficient Ineffective Inaccurate Incomplete Inconsistent Inflexible Invisible Executive Management Invoice Reconciliation Teams

11. BPM Orchestrates Human to Human, Human to System & Inter-system Interactions…brings order to the chaos • 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 • Customer Benefits: • Huge Reduction in Manual Work, Errors • Faster, More Consistent Issue Resolution • Metrics, measurements, visibility and business-friendly reports • Rapid, Agile and Iterative process improvements Finance and Ops Account Administration Invoice Reconciliation Team Executive Management Customer Service Process Rules Events BPM Layer

12. BPM Orchestrates Human to Human, Human to System & Inter-system Interactions…brings order to the chaos BPM Results: Visibility Agility Control Collaboration Automation Integration Governance Optimization Finance and Ops Account Administration Invoice Reconciliation Team Executive Management Customer Service Process Rules Events BPM Layer eSIG iPAD iPho On Thy Fly MOF Collab OF PD BFS NM NST SnapDesign BFS Visibty VIP ICL Responsiv ART OTP BFS PD Collab OPT+ Dash OF PPTour OF P BK P BK SAP BR1 BR2 BWL2 BR3 BWL1 ODM 1 SAP SAP BWL >PD Incdnt Mgmt Visibty ME ppdDIAGs PPSpanish BFS GEO Snap Deploy Map iPho GOPT Collab AO PD Tour Tour Dash AO SAP BPM85 E2E ODM 2 SAP BWL Col DM3 DM2 DM1 ODM Retail

13. The essential BPM capabilities • Modeling • Monitoring • Automation • Governance • Optimization • Rules • Business Data • Documents • Events • Integration • Collaboration • Analytics Customer Service Executive Management Finance and Ops Account Administration Risk ManagementTeams eSIG iPAD iPho On Thy Fly MOF Collab OF PD BFS NM NST SnapDesign BFS Visibty VIP ICL Responsiv ART OTP BFS PD Collab OPT+ Dash OF PPTour OF P BK P BK SAP BR1 BR2 BWL2 BR3 BWL1 ODM 1 SAP SAP BWL >PD Incdnt Mgmt Visibty ME ppdDIAGs PPSpanish BFS GEO Snap Deploy Map iPho GOPT Collab AO PD Tour Tour Dash AO SAP BPM85 E2E ODM 2 SAP BWL Col DM3 DM2 DM1 ODM Retail

14. BPM delivers business value as adoption progresses Project Program Transformation 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 Cut “engineering” time of designers on car systems by 20% in one year. Speed to market gains of over 50% Saved more than $100M with improved efficiencies and higher levels of customer service

15. Key IBM Smarter Process Capabilities

16. IBM’s approach for reinventing business operations - to enable greater customer-centricity - in the age of mobile, social, cloud and big data - while driving efficiency and optimization intoend-to-end processes

17. IBM Smarter Process Capabilities

18. 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? 18

19. Near Zero Learning Curve … Collaborate, engage, model, analyze and improve your processes… Simple Social Cloud Easy for novices, rich enough for experts Single repository, built for Process and Decisions Focused on broad participation SaaS Offering… Get Started Fast!

20. BPM Imperative: Business led discovery, innovation & changeIntegrating goals, processes, and capabilities • Sketch out initial process designs • Storyboard experiences and explore use cases with process walkthroughs • Describe your processes with the language & organizational roles your business uses • Capture key business factors, actionable strategies, and align your process initiatives • Leverage community-based best practices and industry content • Collaborate and communicate with other stakeholders & leaders across the business

21. Smarter Process Capabilities

22. IBM Business Process Manager 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”

23. Manager Worker BPM in Action Rapid, Agile and Iterative Process Portal Process Portal 1 Process Discovery, Modeling & Analysis Process Coach UIs 4 Execute and Monitor Execute 5 Analyze and Improve Process Center Shared Model 3 Model for Execution XPDL Optimize Design Process Optimizer 2 eSIG iPAD iPho MOF NST ICL P BK On Thy Fly PD BFS NM Collab OF SnapDesign BFS Responsiv BFS Visibty VIP PD Collab OPT+ ART OTP Dash OF PPTour OF SAP BR1 BR2 BWL1 BWL2 BWL >PD BR3 SAP ODM 1 SAP Process Designer Incdnt Mgmt Visibty ME ppdDIAGs PPSpanish Map iPho BFS GEO Snap Deploy GOPT Collab AO PD Tour Dash AO BPM85 E2E Tour SAP ODM 2 SAP BWL Col DM3 DM2 DM1 ODM Retail Import Process Model Business Modeler Business Analyst

24. BPM in Action 2) Modeling Ease of Use 1) BlueworksLive 3) How It Executes 4) End-2-End Playback 6) Optimizer Heat Maps 5) Dashboards eSIG iPAD iPho On Thy Fly MOF Collab OF PD BFS NM NST SnapDesign BFS Visibty VIP ICL Responsiv ART OTP BFS PD Collab OPT+ Dash OF PPTour OF P BK P BK SAP BR1 BR2 BWL2 BR3 BWL1 ODM 1 SAP SAP BWL >PD Incdnt Mgmt Visibty ME ppdDIAGs PPSpanish BFS GEO Snap Deploy Map iPho GOPT Collab AO PD Tour Tour Dash AO SAP BPM85 E2E ODM 2 SAP BWL Col DM3 DM2 DM1 ODM Retail

25. IBM BPM Platform: Key Differentiators 1. Process Blueprints (BlueworksLive)Collaborate on Process Modeling 8. Proven Methodology Rapid, Agile, Iterative 7. Process OptimizerDeep metrics and Visual Heat Maps 2. In-Context CollaborationReal-time Multi-person Screen-sharing Rapid, Agile and Iterative 3. Intelligent DashboardsAnd Custom Reporting Execute 6. Process CenterShares Process Model forContinuous Process Improvement 5. SnapshotsSeamless VersioningDesign-time & Runtime BPM Shared ModelProcess Center Optimize Design 4. Process PlaybacksIt’s ALWAYS Instantly Runnable! 9. Mobile Ready eSIG iPAD iPho MOF NST ICL P BK On Thy Fly PD BFS NM Collab OF SnapDesign BFS Responsiv BFS Visibty VIP PD Collab OPT+ ART OTP Dash OF PPTour OF SAP BR1 BR2 BWL1 BWL2 BWL >PD BR3 SAP ODM 1 SAP Incdnt Mgmt Visibty ME ppdDIAGs PPSpanish Map iPho BFS GEO Snap Deploy GOPT Collab AO PD Tour Dash AO BPM85 E2E Tour SAP ODM 2 SAP BWL Col DM3 DM2 DM1 ODM Retail 10. Cloud Enabled

26. BPM Client Examples

27. Case Study: Original Process (w/o BPM) Complete Application Decision Complete Application Decision Research Eligibility Research Eligibility Create / Finalize Record Create / Finalize Record Sort / Prioritize Work Sort / Prioritize Work Underwriting Decision Underwriting Decision Paper Application Online Application Print Application

28. BPM Phase 1: Add Workflow, Automate Simple Tasks Complete Application Decision Research Eligibility Create / Finalize Record Sort / Prioritize Work Underwriting Decision Paper Application Online Application Data Prioritize Work Underwriting Decision Complete Application Decision Research Eligibility Create / Finalize Record

29. BPM Phase 2: Streamline Paper into Same Process Sort and Image Paper Application Data Entry Online Application Data Prioritize Work Underwriting Decision Complete Application Decision Research Eligibility Create / Finalize Record

30. BPM Phase 3: Setup Growth Platform Auto Approval Sort and Image Auto Approved Auto Completion ? Paper Application Auto Eligibility Data Entry Not Auto Approved Simple Case Online Application Data Prioritize Work ? Underwriting Decision Complete Application Decision Research Eligibility Create / Finalize Record Complex Case

31. Case Study: Benefits Observed $750,000 savings in first year Reduced cycle time from 10 days to 2 days Increased direct and indirect customer satisfaction Balanced workload, improved responsiveness Cost avoidance, even after volumes increased

32. Other Client Examples Insurance Company Credit Insurance Claims Business continuity, improve productivity Reduced cycle time, processing cost 6 month ROI Plastics Distributor Procure to Pay Improved tracking, productivity 30% reduction in processing cost Telecommunications Company DSL Provisioning Existing process inhibited increased volumes Process: reduced from 45 to 7 minutes Call Center: reduced from 400 to 260 employees Volume: from 7,000 to 35,000 starts per month Health Insurance Company Individual and family plan member enrollment Integrate imaging, new system, automate Savings: > $700,000/year Reduced cycle time from 14 days to 4 days Online Retailer and Auction Company Fraud detection Manage legal process for potential fraud Business rules based application $2.5M investment, $1M/month savings Financial Services Company Commercial lending – loan rate options Work automation, efficient rate calculation Visible work-in-process, staging for renewals Small group (15), big savings ($1M/month) 77 Project Days 105 Project Days 120 Project Days

33. IBM Delivery Approach

34. Common Questions Around Process Improvement… Should we start by modeling or automating decision points? How can we improve this process as quickly as possible? What will it take in terms of enablement and ramp-up? What incremental steps can we take? How can I get a better view into what’s happening at each step of our process? Which products are best suited? How will this integrate into our current infrastructure?

35. Iterative Approach = Better Business Outcome Traditional build programs Targeted outcome Targeted outcome Range of traditional outcomes IT-centric development Complex tooling Large release deployments BPM build programs Model-driven tooling Integrated and collaborative development Iterative deployment Faster ROI +

36. IBM BPM: Designed for rapid, agile, iterative deployments Weeks 11 to 12 Week 13 Week 1 Weeks 2-3 Weeks 4 to 10 Go Live Definition Mapping Infrastructure Configuration Infrastructure Deployment Training/ Mentoring Development Test • Quickly define, test, and deploy complete BPM solutions • Playback and test exactly how the process will run (Daily) • Iterate quickly on different process designs • Promote Business Collaboration

37. Project Delivery ApproachCollaborative, Iterative and Continuous Solution Delivery Cycle Solution Release • Key Best Practices • Develop the solution with the Business • Rapid, Agile, Iterative development/deployment cycles • User stories to capture business needs • Time-boxing, 2-4 week iterations • Frequent “Playbacks” to capture feedback • Prioritize iterations: business value vs. risk mitigation. • Deploy business value early and often (It’s always runnable) • Monitor execution, dashboard optimization hot-spots and incorporate changes quickly

38. Quick-Win PilotDemonstrate tangible value in ~90 Days! Quick Win Pilot – 10 weeks to a Deployable Solution Define Implement (2 weeks) (6 weeks) (2 weeks) Definition Development Test Go-Live • Discovery Workshop to define goals, ROI, model as-Is/to-be processes maps(BlueworksLive.com) • User Stories • Problems and Pain Points • KPIs/Metrics/SLAs • Opportunities for Improvement • Model process for execution (IBPM Process Designer) • Build UI shells. • Stub Service flows. • Create Data model. • Prototype Rules. • Prototype integrations and DB design. • Mock up reports. • Develop Process to specification. • Build out rules and decision services. • Implement services with data flow and DB layer • Incorporate external service integrations. • Build out reports. • Finish remaining UI functionality, look and feel. • Complete metrics and reports. • Implement exception handling and error proofing. • Define process and rule governance for continuous improvement. Production Deployment Playbacks = Running the process for an audience of 1+. The main playbacks are for sign-offs of the whole Business+IT team. There are more frequent playbacks, daily/weekly etc., for smaller audiences throughout the project.

39. BPM Projects from Inception to Production in ~90 Days • BPM Analysts (1) • Engagement Manager (1) • Infrastructure Specialists (1) Roles • Add Technical Architect (1) • + Infrastructure Specialists (1) • Add BPM Developers (2) Weeks 2-3 Weeks 4 to 10 Weeks 11 to 12 Week 13 Week 1 Discovery Detailed Requirements Iterative Development with frequent Playbacks Test Go Live Agreement on Project Scope & Goals Agreement on Process Flow and Routing Agreement on Data, UI, and Integrations Agreement that Process Meets Business Goals Technical Validation and User Acceptance Checkpoints • PLAYBACK 0 • “Define the Process” • As-Is and To-Be Process Maps • User Stories • Problems and Pain Points • KPIs/Metrics/SLAs • Opportunities for Improvement • PLAYBACK 1 Series • “Build the Process” • Model process for execution (IBPM Process Designer) • Build UI shells. • Prototype Data Model. • Prototype Rules. • Prototype integrations. • Mock up reports. • PLAYBACK 2 Series • “Continue Process Build-out, Reports & Integrations” • End-2-End Process Flow • Rules & Decision Services. • Services, dataflow & DB layer • External integrations. • Build out reports. • PLAYBACK 3 Series • “Refine the Delivery” • Model Corner Cases • Expanded Search Capabilities • Build Metrics and Performance Reports (Tuning and Measurement) • Other types of Processing Automation • Feedback from Playbacks Playbacks = Running the process for an audience of 1+. The main playbacks are for sign-offs of the whole Business+IT team. There are more frequent playbacks, daily/weekly etc., for smaller audiences throughout the project.

40. Continuous Process Improvement Implementation Business Operations Business Strategy Business Design Model Deploy BPM Enables Continuous Process Improvement Optimize Redesign, Re-strategize Measure Business Analytics Operations Management and Monitoring Analyze

41. Flexible Deployment through the Cloud

42. Summary: IBMs Approach to BPM Model-driven Automation + Collaboration & Sharing Powerfully Simple Simplified Experience to Maximize Business Participation Enterprise-Wide Visibility, Scalability, and Governance Accessible Anytime, Anywhere

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