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IBM SOA

© 2007 IBM Corporation

BPM and SOA

Committed Relationship or

Convenience?

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Agenda

� Current Market Drivers

� BPM Background

� BPM with SOA

� IBM’s Smart SOA

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The Business Landscape is ChangingForcing Companies of All Sizes to Respond to a ‘Flat World’

Analytical framework from the IBM Global CEO Study to be published May 2008

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Business Benefits

� Estimated total savings of €250,000 per site deployed

� Improved security for mall-based retailers

� Adaptability with componentized

services

� 50% reduction in the cost of cash

processing for retailers and banks

� Reduce amount of cash in

transit via secure merchant

cash handling

� Model critical business processes

� Create new cash management

process to eliminate unnecessary

transfers for retailers and banks

� Integrate & automate processes

Challenge

Solution

Business Model InnovationCashferium

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Optimisation and innovation demand agilityReact quickly to capture value from changing market conditions

AGILITY:ability to quickly and effectively respond to changes, opportunities and threats

� Metric-driven Globally Integrated Enterprises

need to measure their agility

� Key Agility Indicators assess operational costs,

efficiencies and quality measures

Today's Business Metrics = Key Performance Indicators + Key Agility Indicators

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The clock is ticking, can your business act with agility?

Can I prepare for future

changes I can’t see today?

How do I optimise my

business processes to

maximise business value?

How can I take advantage of

the new global economy?

What business models

will drive my industry

in the future?

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Agenda

� Current Market Drivers

� BPM Background

� BPM with SOA

� IBM’s Smart SOA

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Business Process Management is a Discipline…

BPM solves common business challenges . . .

BPM governs organisational and operational activities

Processes aren’t documented

Bottlenecks prevent efficiency

Limited visibility into performance

Complex integration across

multiple processes

Process change is cumbersome

KPIs notdefined

Models Process Knowledge Metrics

Expertise and AssetsPolicies Business Logic Methodology

Integration Modelling Monitoring

SoftwareForms Rules Engine Workflow

BPM Includes

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Evolution of BPM

1950 1980 1990 20001960 1970

Deming/ Juran

Ohno

Just in Time

TQM

Six Sigma

GE

Lean Production

BPR

Lean Sigma

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Future Requirements of BPM

� Business event management, as well as business activity

monitoring

� Complex event processing

� Self repairing processes Increase in requirement for visibility

� Roles/skills

� Market consolidation

� Business Rules Management

WHAT’S AHEAD

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Marketing, sales, and services (Contact Center

Optimization)

Supply Chain(Inventory Management)

Human Capital Management

(Employee Self-Service)

Product Lifecycle Management (Category Line

Extension)

Financial Management

(SOX Compliance)

BPM Projects are Disguised in Various Ways

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Agenda

� Current Market Drivers

� BPM

� BPM with SOA

� IBM’s Smart SOA

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Translate vision into action with BPM enabled by SOA

SOA improves how you

design, manage, and

optimise your business

processes by enabling:

� Solution Building

Efficiency

� Reuse of existing

assets

� Flexibility in change

Services(Application & Information)

Operational Systems(Application & Information Assets)

Business Processes

Data Registry

Application Application

Content

External

SOA at the core of BPM:

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Source: BPM and SOA, Better Together, Paolo Malinverno, Janelle B. Hill, Gartner, Feb 2007.

BPM and SOA – Better Together

“Organizations that align their BPM and SOA initiatives in 2007 will double their likelihood of becoming an industry leader by 2011”

“…SOA and BPM initiatives…are moresuccessful and the benefits are compounded when they are united”

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Respond Quicklywith processes based on a flexible infrastructure

Manage Changeby modelling and analysing

existing or new processes

Ensure Complianceby identifying problems before they get out of control

Enhance Business Efficiency

by analyzing activity to ensure processes meet objectives

BPM Enabled by SOA Delivers Real Customer Value

IBM’s customer order and analysis process reduced time and cost of new process improvement releases by 25%

Danske bank realized $2M savings in the first year through company wide increase

in productivity

Principal Financial reduced paper-intensive mortgage process time by 53%, achieved 34% gains in efficiency and estimated annual savings of $4M

Telefonica to triple its clients in two years by being able to ensure changes made were executing correctly

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Acknowledge Operational

Inefficiencies

Directly link process

model and rules to

execution

Intra-Process Automation and Control

Compare

alternatives

driven by various

optimization

techniques in real-time

Craft process automation and

control across the

enterprise, customers, and

trading partners

Inter-Process Automation and Control

Create a business

performance framework that links business valuation to

process execution

Enterprise Valuation Control

Innovate new businesses,

products, and

services through an agile business

structure

Agile Business Structure

Model and

analyze

business processes

Process Aware

Measure

and monitor

business activities

Generally, where we are today

Begin to identify process owners

BPM can be implemented without SOA, but……forward progress will be hindered

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Common Drivers Of BPM & SOA

� Investment Drivers- Cost of compliance- Cost of development, deployment and

maintenance of business applications- Protect current investments and maximise

reuse

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Agenda

� Current Market Drivers

� BPM

� BPM with SOA

� IBM’s Smart SOA

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There is a Smarter Way!Aligning Service Oriented Approaches

FoundationalExtend

End-to-End TransformAdapt

Dynamically

A set of guiding principles to extend business value of deployment

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Software and Expertise

Pre-built IndustryAccelerators

ComprehensiveBPM Methodology

Best Practices &Benchmarks

Business focusedModelling and Simulation

World-Class SOAProcess Engine

Real-time Business Activity Monitoring

Deeply ExperiencedProfessional Services

Flexible SolutionsDesigned for Change

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§ Optimize measurement management framework

§ Optimize business processes in real time

§ Export first-level Business Process Execution Language (BPEL)

§ Install/configure business process manage-mentsystem (BPMS) runtime environment

§ Choreograph processes across applica-tionsand SOAservices

§ Develop future business processes

§ Develop new organization

§ Develop KPIs

§ Perform process benchmarking

§ Simulate future business processes

§ Develop high-level service model

§ Assess and document current business processes

§ Assess current IT and current organization

§ Document current business rules

§ Analyze process capability gaps

§ Evaluate current business strategy

§ Review and evaluate strategic objectives

§ Select opportunities/projects for improvement

§ Optimise measurement management framework

§ Optimise business processes in real time

§ Export first level-Business Process Execution Language (BPEL)

§ Install/configure business process manage--ment system(BPMS) runtime environment

§ Choreograph processes across applica--tionsand SOAservices

§ Develop future business processes

§ Develop new organisation

§ Develop KPIs

§ Perform process benchmarking

§ Simulate future business processes

§ Develop high-level service model

§ Assess and document current business processes

§ Assess current IT andorganisation

§ Document current business rules

§ Analyse process capability gaps

§ Evaluate current business strategy

§ Review and evaluate strategic objectives

§ Select opportunities/projects for improvement

Process governance

ExecuteDefine OptimiseAssessEnvision

Methodology

Proven BPM Enabled by SOA methodology

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BPM facilitates change and accelerates improvementsSOA provides the flexible design for future change

Model the processDeploy using industry-specific best practices

Measure results with the right business metrics

Continue to innovate and optimise as conditions change

Sales FinanceOperationsBusiness Partners

Simulate and optimise to predict results

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Questions?