8wp-ilog filenet bpm business
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Business Process Management
January 2008
Business Process Management with
a Competitive Edge
Implementing Transparent, Agile
and Consistent Business Process
Management
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Business Process Management with a Competitive Edge
Implementing Transparent, Agile and Consistent Business Process Management
Page 2
Automating business processes is not the current IT trend or marketing buzz in
the software industry. Rather, it is a fundamental strategy employed by those who
plan to stay in the game in the long run. It is what allows companies to remain
competitive by reducing cycle time in business value development, delivery and
support.
According to Forrester, “The confluence of several strategic business issues is
accelerating the high level of interest in BPMS software.” Specifically:
• A growing number of companies are realigning functional managers to
become cross-functional process owners, implementing Six Sigma and lean
manufacturing quality initiatives to improve business processes and shifting
their focus from applications to business processes supported by composite
applications.
• Compliance mandates such as Sarbanes-Oxley, Basel II, and the Health
Insurance Portability and Accountability Act (HIPAA), where BPMS tools
provide the framework to ensure required procedures are adhered to.
• Advanced BPMS tools empower authorized business users and managers to
model and monitor business processes and modify business rules.
In the pursuit of business process improvement, companies face important
challenges such as being able to better understand the behavior of their business
processes, being able to adapt business processes in a timely fashion, and
ensure the consistency across the enterprise.
• Total business insight
• Total business agility
• Total business process consistency
The benefits of implementing Business Process Management, or BPM, with IBM
Enterprise Content Management are significant, quantifiable and reach across theentire organization touching on all elements of the business. The reduced cycle
times and enhanced visibility into what stage of the process is in play, who is taking
action, the status of approvals and what hurdles must be overcome result in:
• Reduced operational cost
• Reduced risk in regulatory compliance
• Improved management oversight capabilities
“ Forrester believes the
shift from functional
alignment to business
process ownership willincrease corporate
performance, and the
adoption of BPMS will
drive a fundamental
and positive change in
the relationship between
business and IT.”
– Forrester
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Business Process Management with a Competitive Edge
Implementing Transparent, Agile and Consistent Business Process Management
Page 3
Until now, business process improvement practices have either removed human-intervention as much as possible and focused
resources on exception processing or simply automated as many business decisions as possible. While both approaches are
valid, the outcome can vary substantially based on how you automate the decisions in your processes. If you don’t pay attention
to the “how,” you are likely to significantly limit your improvement options, resulting in reduced visibility, limited agility and a lack
of consistency.
Businesses can approach automating the decision logic of their business processes a number of ways. Let’s review the differen
options on how to automate decisions and how they impact overall process efficiency.
Traditional Software Coding
This process allows the decisions made in the automation process to become part of the actual software code. While there is
likely to be some consultation with the end users of how the process works, as a matter of practice decisions are often made in
the IT department as they create the workflows and develop the software program. Once the process is launched, any changes
that are needed require IT effort to revise the software code. Obviously, this becomes a labor intensive and costly ongoing
exercise for any process that operates in a highly dynamic environment.
This approach will also limit your business insight and ability to improve your processes since decisions coded in a
programming language will prevent business users from understanding how and why business decisions have been made.
Standard Business Rule Engine (BRE)
Employing a standard business rules engine (BRE) is a step in the right direction when it comes to building in efficiencies into the
business process automation effort. A rules engine utilizes business rules expressed as if…then statements in a fairly technical
language for decision points that can be updated only by IT when changes in the process need to be made. However, the same
issues of decision points being determined in the IT department and a need for IT intervention every time a change needs to
be made still prevails. While process maintenance is less labor intensive and costly than traditional software coding, IT time
required to update the rules engine will be a built-in bottleneck in realizing the desired speed and efficiency from automation in a
dynamic environment.
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Business Process Management with a Competitive Edge
Implementing Transparent, Agile and Consistent Business Process Management
Page 4
ILOG Business Rule Management System (BRMS)
Employing the ILOG JRules Business Rule Management System (BRMS) with IBM FileNet Business Process Manager,
companies find themselves in a whole different efficiency league where they have the power of automation and decision making
at the control of the person who understands the process and issues best.
We took a lesson from nature and designed our rules engine with a lead bird efficiency strategy. Have you ever watched a flock
of birds in flight and marveled at how they moved so quickly, effortlessly and synergistically time and again? It is because the
whole team of birds is following the lead bird, the one out in front who has the best view of conditions and knows where and when
to dip, dart and duck. The same is true in process management. It is that front line person that knows the challenges of their
process that is in the best position to lead the automation decision making and keep it up to date as the process environment
changes.
With ILOG JRules BRMS, business process automation is easier to understand, maintain and manage. Decision logic is
presented in business terms instead of programming language. The power of change specific to particular workflow segments
is put in the hands of the business manager with a user-friendly web portal. A view into what is going on in the workflow finally
becomes visible to management through the business level reporting and the ability to test a change before implementation is
available through business process simulation.
As a result organizations:
Increase throughput – with the flexibility to customize individual processes for dif ferent situations, you can eliminate
unnecessary steps required in less robust rules engines.
Leverage dynamic environment for competitive advantage – instead of being challenged by living in a dynamic
marketplace, you can use the constant change to your advantage by building agility and flexibility into your rules engine
maintenance by putting it at the fingertips of your front line managers.
Reduce costs – extending control out to the front line managers minimizes the number of people that need to be involved in
making process changes, improving organizational productivity and lowering IT maintenance costs.
Reduce risk in regulatory compliance – with the flexibility to implement decision point changes quickly, you can improveadherence to new regulations as they develop and improve consistency, traceability and auditing of decisions.
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Business Process Management with a Competitive Edge
Implementing Transparent, Agile and Consistent Business Process Management
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What approach is best for you?
According to Forrester, there are four categories of processes:
Category Definition Example
People-intensive Strong focus on automating people
intensive activities
Customer support
Decision-intensive Strong focus on processes that require
employees to make mission-criticaldecisions
Lending process
Document-intensive Strong focus on processes that involveextensive use of scanned images forback-office processes
Claim processing
Integration-intensive Strong focus on automating processesthat integrate systems and applications
Order fulfillment
While ILOG JRules BRMS can be instrumental in gaining efficiencies in all of the categories, your best value will be realized in
process environments that are decision-intensive and people-intensive.
As a further guide to what is the best fit for your organizational needs, we have compared the features and functionality of
approaching BPM with traditional software coding, a standard rules engine and ILOG JRules BRMS.
Capabilities Traditional software coding Standard Rules Engine ILOG BRMS
Externalization of business
rules from codeVery limited Yes Yes
Business rule metaphor
supportNone If..then statements only If..then, decision tables,
decision trees
Business rule executionreports
None Technical report only Full support for IT andbusiness
Enterprise business rulerepository
No No Yes
Business rule maintenance
tools for business people
(authoring, test andsimulation)
No No Yes
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Business Process Management with a Competitive Edge
Implementing Transparent, Agile and Consistent Business Process Management
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ILOG JRules BRMS integrates rule management with your choice of platform and data storage, supporting every major
runtime platform.
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Business Process Management with a Competitive Edge
Implementing Transparent, Agile and Consistent Business Process Management
Page 7
Reference: Social Affairs of Junta de Castilla y León
Situation
Solution
Benefits
The Social Affairs agency of Junta de Castilla y León is
responsible for administering the social health programs of one
of Spain’s 17 regional departments. The agency has more than
50,000 people in its program, each with specific healthcare
needs.
With rising healthcare costs, an aging population and
increasingly complex regulations, calculating their socialsecurity benefits and managing their records has become
very complex and time consuming since care must be taken to
always apply the most recent regulations.
• ILOG JRules Business Rule Management System
• IBM FileNet Business Process Manager
• Rapid delivery of social services
• Quick compliance with new laws
• Direct access to decision logic for business users
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Business Process Management with a Competitive Edge
Implementing Transparent, Agile and Consistent Business Process Management
Page 8
Welsh Assembly Government
Situation
Solution
Benefits
The European Union Common Agricultural Policy provides
annual subsidies of more than £250 million for the 19,000
farmers in Wales. As a major source of income for the Welsh
economy, it is vital that Common Agricultural Policy (CAP)
subsidies are processed as quickly and efficiently as possible.
The Welsh Assembly Government was facing a lot of challenges
with regards to the management of CAP. The previous process
management was based on paper-based applications and abespoke legacy computer system based on 3rd generation
code. The legacy system was slow to change, difficult to use
and each scheme was implemented separately, based on a
different manual process.
IBM FileNet Platform + ILOG: Fully automated request capture
and submission with standardized business processes
throughout all line of subsidies
• Automated request capture and submission
• Standardized business processes throughout all subsidies• Automated best practices
• Improved customer service--on the first day of payment,
more than 75 percent of Single Payment Applicants had
received their payments instead of waiting weeks with the
previous system. In addition, Wales was one of the first (if not
the first) country in Europe to make these payments in 2005.
• Greater flexibility and ability to modify business policies in
hours rather than weeks
• Improved legacy systems integration
• Business process and business rules traceability and
auditability
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Business Process Management with a Competitive Edge
Implementing Transparent, Agile and Consistent Business Process Management
Page 9
Reference: US Commercial Lender, Automated Credit Request Processing
Situation
Solution
Benefits
This US Commercial Lender has grown rapidly through organic
growth and acquisition over the past several years.
As the bank has expanded, their method for handling
the approval of commercial loans has remained mostly
unchanged over the past ten years. As the bank has expanded
its geographical reach, bank relationship managers were
experiencing delays in routing and approving commercial loanrequests. Ultimately, the bank needed to find a way to deploy a
solution that could replace their current paper-based process
while remaining highly flexible to accommodate planned future
acquisitions and growth.
• ILOG BRMS to handle core business logic across a number
of functional areas including: routing, compliance, scoring
& rating
• IBM FileNet Business Process Manager to handle core
business processes across the enterprise
• Processing cost savings - estimated 10,000 man days the
first year and 12,000 man days thereafter
• Improved staff focus and satisfaction
• Improved compliance - estimated 1,000 man days per year
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About ILOG
ILOG delivers software and services that empower customers to make better
decisions faster and manage change and complexity. Over 2,500 corporations
and more than 465 leading software vendors rely on ILOG’s market-leading
business rule management system (BRMS), supply chain planning and scheduling
applications, and optimization and visualization software components, to achievedramatic returns on investment, create market-defining products and services, and
sharpen their competitive edge. ILOG was founded in 1987 and employs more than
800 people worldwide. For more information, please visit www.ilog.com.
About IBM ECM
As the clear market leader in Enterprise Content Management (ECM), IBM’s ECM
solutions help organizations make better decisions, faster by managing content,
optimizing business processes and enabling compliance through an integrated
information infrastructure. IBM’s ECM portfolio delivers a broad set of capabilities
and solutions that integrate with existing information systems to help organizations
drive greater value from their content to solve today’s top business challenges.
The world’s leading organizations rely on IBM enterprise content management to
manage their mission-critical business content and processes.