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© 2012 IBM Corporation
Achieving Business Process Excellence!
Neil TootillBusiness Unit ExecutiveBusiness Process & Decision ManagementWebSphere North America
2 © 2012 IBM Corporation2
Organizations are becoming Increasingly Complex
© 2012 IBM Corporation3
Responses show organizations experiencing significant change
MoreVolatile
MoreUncertain
MoreComplex
StructurallyDifferent
87% 86%82%
74%
= to a large or very large extent
Agile businesses have:
• 40% higher EPS growth
• 45% higher ROI
• 10% faster revenue growth
• 2.6X higher return on capital
than their industry peersSource: IBM Institute for Business Value 2010 Global CEO Study Source: 2009 Convergence Index, BTM Institute
CEOs know their Business Processes must be More Agile
© 2012 IBM Corporation4
Flexibility
Low cost/time
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CustomizedUniqueHigh TCOIT bandwidth Reduced time
Initial CostStandard Feature setReliance on vendorResponse to Change
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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.
Continuous Process Improvement requires a “Third Way”
© 2012 IBM Corporation5
Flexibility
Low cost/time
����������
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CustomizedUniqueHigh TCOIT bandwidth Reduced time
Initial CostStandard Feature setReliance on vendorResponse to Change
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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
Business Process Management is that “Third Way”
© 2012 IBM Corporation6
Integrated
Measure
Processes
Optimize
� An integrated approach to aligning the key activities of an organization intoprocesses you can consistently measure to optimize value to your organization and your end customers.
• Align people & tasks to valuable outcomes
• End-to-end vs. silo• Cross-functional
• Technology + Methodology
• Compresses cycle time for process lifecycle
• Enabled by the BPMS platform
• High visibility into performance of process & people
• Metrics that are meaningful to the business
• Quantify impact of process improvements
• Enhance process to maximize business value
• Identify & remove bottlenecks
• Eliminate non-value-add activities
What is Business Process Management?
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© 2012 IBM Corporation7
� Organizations had more than 90 percent success rates on BPM projects.
� Successful projects had no less than 10% internal rate of return, 78% had more than 15% (some as high as 360%)
� 67% of the projects were completed in less than six months, 50% in less than four months.
� 77% of the projects had returns greater than $100,000 per project.
� 80% of the respondents felt an increase in competitive advantage.
� BPM’s value to the company was higher than ERP, CRM and SCM.
� Organizations had more than 90 percent success rates on BPM projects.
� Successful projects had no less than 10% internal rate of return, 78% had more than 15% (some as high as 360%)
� 67% of the projects were completed in less than six months, 50% in less than four months.
� 77% of the projects had returns greater than $100,000 per project.
� 80% of the respondents felt an increase in competitive advantage.
� BPM’s value to the company was higher than ERP, CRM and SCM.
Source: “Justifying BPM Projects”, Gartner
Why Business Process Management?
© 2012 IBM Corporation8
September 2011
“In management, it is nice to believe that the world is simple and that we can easily get high-quality answers to our questions. But in fact our reality is mostly very complex, and we don’t understand it well. The bottom line is that we need to spend more time helping people understand and deal with complexity and less time concocting dumbing-down mechanisms.”
BPM helps address a Complex Reality
© 2012 IBM Corporation9
Account Opening
Pricing / Promotion Management
Claims Processing
Order Management
Employee On-Boarding
Process is Everywhere
Campaign Management
© 2012 IBM Corporation1010
Get Started with Process Discovery...
© 2012 IBM Corporation11
• 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
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…but How?
Get Started with Process Discovery...
© 2012 IBM Corporation12
IBM Blueworks Live is the best way to facilitate collaborationbetween IT and line of business for
process discovery, documentation and improvement
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�
13 © 2012 IBM Corporation13
What It Offers
� Insight into processes
� Evergreen documentation
� Rich template library
Benefits
� Easy for novices, rich for experts
� Keeps everyone current and engaged
� Participation of Business and IT
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IBM Blueworks Live: Blueprinting a Process
© 2012 IBM Corporation14
IBM Blueworks Live: Process Template Library
What It Offers� Search library by process title or
description keywords� Jumpstart process discovery by
leveraging best practices� Pop-up help gives immediate
description of each template stored
Business and IT Benefits� Faster time to value by not
having to start from scratch each time
� Ability to leverage BPM expertise from external sources
© 2012 IBM Corporation15
�
�
IBM Blueworks Live: Private and Public Activity Streams
What It Offers� One place to view all of your
process info� Ability to exchange information
with your teammates� Access to BPM expertise
Business and IT Benefits� Single view of all of the important
activity in your account� Ability to leverage BPM expertise
from everywhere� Easy mechanism for staying
informed on all process topics of interest
© 2012 IBM Corporation16
� Enabled 150 users to work remotely and collaborate over large distances� Drastically reduced process duplication, inaccurate data and modification of
older IT platforms� Streamlined all of their business processes, from distribution and logistics to
support and services
Challenges
Results
”IBM Blueworks Live has allowed the business to consciously move away from the traditional hierarchical view of management, with the corporate team and chief executive officer at the top, to a structure which is much more horizontal.”
Steve Burge, IT Director
”IBM Blueworks Live has allowed the business to consciously move away from the traditional hierarchical view of management, with the corporate team and chief executive officer at the top, to a structure which is much more horizontal.”
Steve Burge, IT Director
� Inefficient Collaboration: “Business intelligence” consisted of passing spreadsheets, word documents and napkins back and forth.
� Standardization: Unable to identify and document the firm’s business processes so they could be re-architected into a unified format
� Legacy IT Systems: Lacked consistent IT systems and infrastructure documentation and support making change difficult
Tillamook uses IBM Blueworks Live to Re-Engineer their core Business Processes
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17 © 2012 IBM Corporation
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Customer Problem:� Cannot Grow Efficiently� Customer Satisfaction
ExecutiveManagement
CustomerService
InvoiceReconciliationTeams
Finance and Ops
AccountAdministration
1
2
3
61. Informal tasks and
communication (e.g.-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
Barriers to Process Improvement without BPM
18 © 2012 IBM Corporation
Benefits:� 80% Reduction in Manual
Interactions� Faster Issue Resolution
1. Automatically Prioritizes and Routes Work
2. Guides users through decisions
3. Standardizes resolution across geographies
4. Leverages existing systems and data
5. Monitors for business events and initiates action
6. Real-time visibility and process control
BPM
BPM Delivers a Layer for Control and Visibility
ExecutiveManagement
CustomerService
InvoiceReconciliationTeams
Finance and Ops
AccountAdministration
© 2012 IBM Corporation19
Shared AssetsVersioned Assets Server Registry
Process Center
Repository
BPMN Process Rules Monitoring BPEL ESB
Process Server Process Designer
Integration Designer
Process Center Console
Out-of-box Process Portal
Optional Microsoft Add-ons
Configurable Business Space Widgets
Define
Deploy
Update
Measure
GovernanceGovernanceVisibilityVisibility
ManagementManagement
End User InterfacesEnd User Interfaces
DesignDesign
IBM Business Process Manager
© 2012 IBM Corporation19
20 © 2012 IBM Corporation
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Four Cornerstones of a Process Improvement Foundation
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© 2012 IBM Corporation21
Modeling
Reports / Analytics
Implementation
Interaction / Forms
Business Leader
Business Analyst
Process Developer
Business Users
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�������������������� Model-Driven Design Facilitates LOB-IT Collaboration ~ “The Picture is the Process”
22 © 2012 IBM Corporation
Process Server
WebSphere ESB
WebSphereApplication Server ND
WebSphereApplication
Server
� Built on the Industry’s Leading Application Server
– Clustering, failover, high availability and robust platform
– Single administration environment– Right-Fit Deployment: XP to Z!
� Standards-based platform – A uniform process composition model
(BPMN)– A uniform invocation programming model
(SCA)– A uniform data representation model (SDO)– Powerful tools based on standards (Eclipse)
to build and reuse standard components– Flexible adapters based on standards (JCA)
to get to existing systems“IBM now has the Broadest SOA Platform Solution”
- Forrester Research
• Single Runtime!• Single Tooling!• Single Administration!
• Single Runtime!• Single Tooling!• Single Administration!
Robust Solution for BPM Built on SOA Scales Horizontally and Vertically� � � �
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23 © 2012 IBM Corporation
Performance Data Warehouse
1
2
3
4
1. Single BPMN model drivesmonitoring as well as execution
2. Data analysis performedcontinuously on-the-fly
3. Real-time visibility to tasks, SLAs that may be in jeopardy
4. Visualize “hot spots” on diagram and drill down for insights
“Automatic” Dashboards, Reports and Analytics for Continuous Process Improvement
� Gather and correlate process metrics and business data for continuous improvement
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24 © 2012 IBM Corporation
• Centralized Repository• Centralized Deployment• Centralized Governance
TestInstance
ProductionInstance
(e.g., US Mfg)
ProductionInstance
(e.g., Europe Sales)
TestInstance . . . . . .
ProcessServer
ProcessServer
ProcessServer
ProcessServer
Process Center
BPM Repository
ProcessDesigner
IntegrationDesigner
Centralized Deployment Control Panel & Dashboard
Integrated Process Governance Simplifies Development and Administration��� �������� �����
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© 2012 IBM Corporation25
Mapping
Week 1 Weeks 2-3 Weeks 4 to 10 Weeks 11 to 12
Week13
TestTest Go LiveDevelopmentDevelopment
Infrastructure Configuration
Definition
Training/ Mentoring Infrastructure Deployment
Quickly define, test, and deploy complete BPM solutions� Minimal IT skill requirement
� Playback and test exactly how the process will run
� Iterate quickly on different process designs
Speed Process Design and Deployment with Rapid Process Iterations
© 2012 IBM Corporation26
Challenges:• Lacked integration and cohesion of promotion
forecasting data• Needed ability to scale forecasting process for its
newly expanded enterprise.• Manual reporting and collection process limiting
efficiency, generating inaccuracies and delaying communication of important inventory data
• Wanted a solution that could integrate with its existing business application
Benefits:• Shortened time to market for promotions• Delivered forecast data to managers more quickly
and enabled faster starts for manufacturing and greater inventory readiness
• Achieved more accurate promotional forecasts thru greater insights from previous years forecasts
Business Process Business Process Management SolutionManagement Solution
• Using IBM BPM and IBM Blueworks Live offerings this company enacted greater integration between its business systems, quicker data flows and better coordination between staff
Global Cosmetics and Beauty Conglomerate in New York CityIncreases the efficiency and accuracy of its promotional forecasting process
© 2012 IBM Corporation27
“Providing innovative products and services while improving the availability, quality, and cost of healthcare is central to our corporate vision. WebSphere Process Server and ILOG JRules have enabled us to automate, optimize and monitor critical business decisions within our core processes.”
~ John Walsh, Chief Enterprise Architect, HealthNow New York Inc.
Challenges:• Respond quickly to regulatory mandates
• Increase efficiency by streamlining internal processes
• Address growing complexity in healthcare
Benefits:• Reduce enrollment time and administrative costs
• Increased speed to market by 50%
• Greater consistency from externalized decision logic and process visibility
Business Process and Decision Business Process and Decision Management SolutionManagement Solution
• Member enrollment process to automate eligibility and coverage for new member applications
• Comprehensive audit trail of rules and decisions
HealthNow Speeds Up Member EnrollmentSpeed to market gains of over 50% to roll out new programs
© 2012 IBM Corporation28
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Challenges:• Inefficient supply chains drive
up costs• Small companies are
challenged to use technology
• High buffer inventories
• Expedited orders and high transportation costs
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Benefits:• 63% reduction in paper handling costs
• 85% reduction in staffing requirements for manual tasks
• 75% reduction in compliance penalties
Trade Merit Transforms Supply Chain Efficiency with BPM and BAM in the Cloud!
© 2012 IBM Corporation29
Over 5000 BPM customers worldwide and growing!
#1 in BPMS market share*
IBM was named the number one vendor in BPM
software with a 24.7 percent share, over twice that of its
closest competitor*
Report: A Decade of Leadership. IBM Named Marketshare Leader in Middleware Software for 10th Consecutive Year
*Source: Gartner, Inc., Market Share: All Software Markets, Worldwide, 2010, March 30, 2011
IBM is the Clear Leader in BPM
© 2012 IBM Corporation30
• Over 8,000 attendees expected – this is the all-in-one conference for Business and IT leaders to learn, network and get access to the top experts in the industry!
• More than 300+ customer, analyst and thought leader speakers available to share their insights and experience!
• Forbes sponsored Business Leadership Forum offering over 40 sessions for LOB executives focusing on the business value and business implications of new technology opportunities and leadership development!
• Extensive Technology Program with over 500 sessions that include a wide array of implementation success stories, lectures, developer education, workshops, hands-on labs, and networking opportunities!
• State of the art Product Technology Center offering open labs, “Meet the Experts” sessions and product demos integrating networking, hands-on training and other social learning into a single program
• World class Solution Showcase Center featuring over 130 business partner and IBM exhibitors demoing the latest technology!
• Industry Zone featuring targeted sessions by industry detailing best practices from the collective experience of 300+ industry leading experts on site!
ibm.comibm.com//impactimpact
© 2012 IBM Corporation31
� Visit www.blueworkslive.comfor a free 30-day trial
� Attend a free 2-Day Hands-on Workshop: “Discovering the Value of IBM Business Process Manager 7.5”
– February 28-29– IBM Office, 18th floor, Room 18006
11 Madison Ave., New York, NY
� Attend the WebSphere Lab Jam– March 7– IBM Palisades Conference Center
� Come to IMPACT – the largest BPM conference in the world!
– Early Bird discount ends March 2!
ibm.com/bpm
Let’s Get Started!