© 2011 ibm corporation ibm bpm update process improvement patterns bill.hahn@us.ibm.com sr....
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© 2011 IBM Corporation
IBM BPM UpdateProcess Improvement Patterns
Bill.Hahn@us.ibm.comSr. Consulting BPM Solution Architect Open Group Master Certified SW IT Specialist
http://IBMBPMDemos.com for more information and resources
Phil Gilbert BPM Worksafe Video Banco VideoPhil Gilbert DM IBMBPMDemos.com
© 2011 IBM Corporation
Agenda
The Complexity Challenge– Problem Domain Patterns
BPM Solution Patterns1. Continuous Process Improvement2. Decision Automation & Improvement 3. Combining Capabilities
Visibility and Control
Successful BPM Programs
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© 2011 IBM Corporation
69% are collaborating with customers to deliver better products and services
Capitalize on complexity and Outmaneuver competitors
81% believe innovation is key to getting closer to their customers
70% are focusing on new channels to deliver services to their customers
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Business leaders must drive growth amidst complexity
Innovation
New Channels
Collaboration
Source: IBM CEO Study, 2010
© 2011 IBM Corporation
Flexibility
Low cost/time
BuildBuild
BuyBuy
CustomizedUniqueHigh TCOIT bandwidth Reduced time
Initial CostStandard Feature setReliance on vendorResponse 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
Process Improvement Requires A “Third Way”
ExecutiveManagement
CustomerService
InvoiceReconciliationTeams
Finance and Ops
AccountAdministration 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
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Typical process problems
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1
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3
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ExecutiveManagement
CustomerService
Risk ManagementTeams
Financeand 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
Customer 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
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The essential BPM capabilities
ExecutiveManagement
CustomerService
Risk ManagementTeams
Financeand Ops
Account Administration
• Modeling
• Monitoring
• Automation
• Governance
• Optimization
• Rules
• Information
• Documents
• Events
• Sys Integration
• Collaboration
• Analytics7
© 2011 IBM Corporation
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Customer VideoCustomer Video
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© 2011 IBM Corporation
Budget
Budget spent maintaining existing systems and processes
Budget available for new projects
Incremental Improvements Provide Major Benefits
With Just One Sigma Shift in Process Improvement:
With Just One Sigma Shift in Process Improvement:
Source: Six Sigma:The Breakthrough Management Strategy, Mike Harry, Richard Schroeder, 2000.Source: Six Sigma:The Breakthrough Management Strategy, Mike Harry, Richard Schroeder, 2000.
Time
• 20% margin improvement• 12 - 18% increase in capacity• 10 - 30% capital reduction
• 20% margin improvement• 12 - 18% increase in capacity• 10 - 30% capital reduction
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© 2011 IBM Corporation
Account Opening
Campaign Management
Claims Processing
Vendor On-
boarding
Order Fulfillment
Customer Problem Handling
Process is everywhere
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© 2011 IBM Corporation
Agenda
The Complexity Challenge– Problem Domain Patterns
BPM Solution Patterns1. Continuous Process Improvement2. Decision Automation & Improvement 3. Combining Capabilities
Visibility and Control
Successful BPM Programs
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© 2011 IBM Corporation
Key Technologies for Process Improvement• 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
Correlate business events and detect critical business
situations
Orchestrate business processes and human task applications
Automate high-volume operational decisions with business rules
Derive deep understanding of data with analytics
Derive deep understanding of data with analytics
Monitor and report on data to provide real-time insight
Monitor and report on data to provide real-time insight
data
data
data
data
Event
EventEvent
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© 2011 IBM Corporation
• Business Process Management improves the orchestration of people and systems
Orchestrate business processes and human task applications
Monitor and report on data to provide real-time insight
Monitor and report on data to provide real-time insight
data
data
data
data
ApplicationServices and Data
ApplicationServices and Data
Process is invoked
Solution Pattern 1Continuous Process Improvement
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© 2011 IBM Corporation
• 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?
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© 2011 IBM Corporation
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
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Accelerate Change by Improving the Way You WorkStreamline, document, and run processes
bwl sbwl mbw bpm e2eBW Collab
© 2011 IBM Corporation
$2.2 million in savings to date
120% ROI in one year
25% increase in employee productivity
50% - 75% reduction in cycle times
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
Lincoln Trust achieves rich teaming between business and IT By leveraging IBM BPM
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Client Pains:
Real Results:
Lincoln Trust developed an aligned process focus across the company, removing physical
paper from 145 company processes
© 2011 IBM Corporation
• simple to use• fast time-to-value• deep business engagement
• high performance• excellent integration• superior integrity
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IBM Business Process Management in 2011:Unifying Two Market-Leading Platforms
17 (F9)(F9)http://www.youtube.com/watch?v=x5aTm7tqXDYhttp://www.youtube.com/watch?v=x5aTm7tqXDY
© 2011 IBM Corporation
Shared AssetsVersioned Assets
Server Registry
Process Center
Repository
BPMN Process Rules Monitoring BPEL ESB
Process Server
Out-of-box Process Portal
Optional Microsoft Add-ons
Configurable Business Space Widgets
IBM Business Process Manager V7.5IBM Business Process Manager V7.5
Define
Deploy
Update
Measure
GovernanceGovernanceVisibilityVisibility
End User InterfacesEnd User InterfacesEnd User InterfacesEnd User Interfaces
Process Designer
Integration Designer
Business & IT Authors IT DevelopersAuthors & Administrators
Process OwnersProcess End-Users
Confidential19
The simplest way to get started with BPM
Process Discovery“Modeling for Documentation”
The quickest way to deliver robust process applications
Process Implementation“Modeling for Execution”
http://BlueworksLive.com
IBM Business Process Mgr v7.5
PD Collab
Process Designer OF Optimization
BW Collab
Snap Depl 2
SnapDesignbwl sbwl m
BW>PD S
bw bpm e2eiS1
iS2
Confidential20
BPM Roles-based Development – Rapid, Agile and Iterative
Worker
BPM Developer
Business Analyst
Manager
Administrator
Process ModelerBPM
Shared ModelProcess Center
Process Designer
Process PortalAdmin Console
OptimizeDesign
Execute
Process Inspector
Process Designer
Process Optimizer
Process Portal
Scoreboards
UI Screen Flow Coaches
• 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)
Integration Developer
Integration Designer
BlueworksLive.com
PD Collab OF BPD XL
OF Full BFSQS BFSBW>PD L
Coach BFS
BD Search
ILOG S ILOG 1
ILOG 2 Process Designer OF OptimizationProcess Portal
ProcRulesEvBW Collab BPM 75 Adv Integration BPM75 a Snap Depl 2
SnapDesignSandboxbwl sbwl m Designer Portal Optimizer
BW>PD S
bw bpm e2eiS1
iS2 WODM
Confidential21
IBM BPM In Action
Simplicity with Sophistication: “Business friendly while IT Savvy”
Power with Integration Middleware
Visibility for Business Stakeholders: Dashboards, reports and more
Governance throughout Design-time and Runtime
PD Collab OF BPD XL
OF Full BFSQS BFSBW>PD L
Coach BFS
BD Search
ILOG S ILOG 1
ILOG 2 Process Designer OF OptimizationProcess Portal
ProcRulesEvBW Collab BPM 75 Adv Integration BPM75 a Snap Depl 2
SnapDesignSandboxbwl sbwl m Designer Portal Optimizer
BW>PD S
bw bpm e2eiS1
iS2 WODM
© 2011 IBM Corporation
Solution Pattern 2Decision Automation & Improvement
• Operational Decision Management improves the quality of automated decisions Applications and Processes leverage these decision results
Business Applications and Processes
Automate high-volume operational decisions with business rules
Monitor and report on data to provide real-time insight
Monitor and report on data to provide real-time insight
data
data
data
data
Application is invoked
Derive deep understanding of data with analytics
Derive deep understanding of data with analytics
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© 2011 IBM Corporation
Where Business Rules Typically Exist
Applications
ProcessesPeople
Documents
Operational Decision Managment
Rules and Events are Defined,
Analyzed and Maintained
User Tools
Decisions are Stored and Shared
Rule Repository
Decisions are
Deployed, Executed
and MonitoredRule Server
Automate Highly Variable Decisions with Precision WebSphere Operational Decision Management
• Eliminate decision silos• Make decision logic
accessible to Business and IT• Implement fine-grained,
context-specific logic
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© 2011 IBM Corporation
Decision Management Implementation Patterns
BRMS
User Tools
Applications & Processes Business Decisions
Transparent Decision Service
Rule Repository
Execution ServerExecution Server
Traditional/Vertical Application
Streamline processes Facilitate change Re-use decision assets Maximize automation Improve governance
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ILOG 2 ProcRulesEv WODM
© 2011 IBM Corporation
Introducing WebSphere Operational Decision Management V7.5
Situational Awareness
ContextualDecisions
WebSphere ILOG BRMS
WebSphere Business Events
WebSphere Operational Decision Management
Rules Events
Your business decisions.
Delivered in real-time by technology. Made by your business experts.
© 2011 IBM Corporation
WebSphere Operational Decision Management
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Rule DesignerEvent Designer
Decision Center Console
Rule Solutions for Office
Decision Center for Business Space
DesignDesignDesign
ManagementManagementManagement
WebSphere Operational Decision Management
WebSphere Decision Center
Decision ArtifactsVersioning
Access and Control
Repository
RuleExecution
RuleExecution
EventExecution
EventExecution
DecisionMonitoringDecision
Monitoring ConnectorsConnectors
WebSphere Decision Server
Define
Deploy
Update
Measure
Visibility & Visibility & GovernanceGovernance
Rule DesignerEvent Designer
Decision Center Console
Rule Solutions for Office
Decision Center for Business Space
DesignDesignDesign
ManagementManagementManagement
WebSphere Operational Decision Management
WebSphere Decision Center
Decision ArtifactsVersioning
Access and Control
Repository
RuleExecution
RuleExecution
EventExecution
EventExecution
DecisionMonitoringDecision
Monitoring ConnectorsConnectors
WebSphere Decision Server
Define
Deploy
Update
Measure
Visibility & Visibility & GovernanceGovernance
Business & IT Authors
IT Developers
Authors & Administrators
Business End-Users Business Owners
© 2011 IBM Corporation
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
RespondRespondDecideDecideDetectDetect
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
DecisionsDecisionsRulesRulesEventsEvents27
ILOG 2 ProcRulesEv WODM
© 2011 IBM Corporation
Managing Rules in Microsoft Word and Excel!Managing Rules in Microsoft Word and Excel!
Business Rules Management using Tools Familiar to the Business to Promote Collaboration
ILOG 2
© 2011 IBM Corporation
Customer VideoCustomer Video
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© 2011 IBM Corporation
• Operational Decision Management improves the quality of automated decisions • Business Process Management improves the orchestration of people and systems
Orchestrate business processes and human task applications
Derive deep understanding of data with analytics
Derive deep understanding of data with analytics
Monitor and report on data to provide real-time insight
Monitor and report on data to provide real-time insight
data
data
data
data
ApplicationServices and Data
ApplicationServices and Data
Process is invoked
Solution Pattern 3Combining Capabilities
Automate high-volume operational decisions with business rules30
© 2011 IBM Corporation
BPM
Operational Decisions
Release 1.0Release 1.0 Release 2.0Release 2.0
Release 1.1Release 1.1 Release 1.2Release 1.2 Release 1.3Release 1.3 Release 2.1Release 2.1
Change in production
Business Decision Owners
Business Decision Owners
Business ProcessOwners
Business ProcessOwners
Release 2.0Release 2.0
Business Process Updates(Months, Years)
Business Decisions Updates(Days, Weeks)
Redefined Life Cycle
ILOG 2 ProcRulesEv WODM
© 2011 IBM Corporation
BPM delivers increasing business value as adoption progresses
Efficiency
Saved more than $100M with improved efficiencies and higher
levels of customer service
Effectiveness Agility
Cut “engineering” time of designers on car systems
by 20% in one year.
Take time and cost out of the process
Work smarter to deliver higher revenue and profit
Outmaneuver competitors with rapid response to change
Speed to market gains of over 50%
Reduced development time
by 40%
Drives $3.6M in additional revenue and saves $2.7M by integrated sourcing processes
with real-time inventory visibility
Line of Business Personnel Launch Campaigns in
Two Days Instead of Months
Business Value RealizedProject Program Transformation
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© 2011 IBM Corporation
Process ManagementSelected WebSphere BPM to:• Improve operational efficiency & accuracy• Improve process orchestration across multiple
systems and decrease process costs• Deliver end-to-end process visibility
Rules ManagementSelected 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
Situation• Multiple legacy systems• Highly manual, disjointed processes• Difficulty in adapting systems to
meet new regulatory and customer requirements
Case Study: HealthNowImproved Member Enrollment Processing
“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.”
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© 2011 IBM Corporation
Can be used for fully automated
interactions, or…
… to provide decision guidance
for personal interactions with
customers
…for decision support in the back-
office, or…
Operational Decision MgmtCombined rules and events capabilities to power flexible decision management solutions
• 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
Operational Decision Management combines WebSphere Business Events and WebSphere ILOG JRules
• Detect critical events across the business network and automate precise, context-specific decisions
Operational Decision Management combines WebSphere Business Events and WebSphere ILOG JRules
• Detect critical events across the business network and automate precise, context-specific decisions
Automate and Improve High-Volume Operational DecisionsLeveraging Business Rules on Multiple, Complex Events
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© 2011 IBM Corporation
“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
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© 2011 IBM Corporation
Build your roadmap to process improvement
Identify Business
Challenge and Value
Succeed with an Initial
Project
Establish a Program
Bu
sin
ess
Ou
tco
mes
Project Scope
• 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.
• 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
• Collaborate with colleagues to understand and document existing processes
• Use as-is process maps and leverage IBM expertise to identify key improvement opportunities
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© 2011 IBM Corporation
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
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