Business Activity Monitoring and ManagementPanel Session Summary Draft

Event Processing SymposiumMarch 14-16, 2006

Eric Wayne, IBM (on behalf of six panelists)ewayne@us.ibm.com

2 Event Processing Symposium

BAM PanelistsPanelist Affiliation

Richard Brooks ISO New England

(Electric Energy Market)

Rohn Griggs Wachovia

(Banking - Retail Loan Origination)

Harpal Kochar Oracle

(Cattles plc, UK – High Risk Loan)

Vaikom Krishnan Celequest

(Food Manufacturer)

Anthony Lopresti Systar

(Shipping Logistics)

Karsten Schwan Georgia Tech

(Delta Airlines)

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Summary– Common Elements

Industries: Energy, Financial Services, Manufacturing/Logistics, Shipping/Logistics

Integration of BAM with other software in customer environment

– BPM, rules engine, packaged apps, legacy/custom apps,

– System Management,

– Business Intelligence

Recurring use cases

– Track and trace

– Process visibility spanning apps and silos

– *External partners – where control leaves enterprise – key visibility pain point

– Dashboards/alerts, detection of patterns representing an issue or situation

– Impact of system events on business

– Anticipate problems

Range of event volume metrics. Range of analysis, correlation techniques.

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Characteristics: Roles consuming, Techniques Value / Benefits – Measurable improvement (or clear problem solved)

Issues / Wish list

ISO New England –

Electric Energy Market.

Monitor systems and processes to anticipate problems before they occur. Prevent repeat of occurrence when trading stopped.

Roles: Business Users, IT responsible for availability performance, problem determination.

*Use of common information model and common base event for integrated logging across systems, built on top of an EAI system.

Example process: Person update across systems.

*Technique: Use of AptSoft Director for CEP and Dashboards.

Reaction time

Visibility to events that might impact trading

Future Intent: Promote as a standard approach to community IRC/ITC.

Wachovia – Retail Loan Origination

Roles: Business Process Owner

State: Requirements/Scorecard, Now in POC stage with chosen vendor

Managed and unmanaged processes.

* Pain point: insight into activities performed by external vendors and suppliers – e.g. document imaging, closing package to atty’. Look for missing event of document being returned before deadline. Rules are sensitive to geography.

Integration with EAI/BPM. Non-intrusive as key element.

SLA controls and alerts

End to end view of retail lending process

BPM enabler – decrease cycle time, customer sat. If cut time by 1 hour, can save $10K’s monthly.

Lesson learned: need strong sponsorship & education.

Creating a BAM CoE leveraging the BPM/EAI CoE’s in place now.

Cattles, plc, UK

High Risk Loan Origination/Customer Acquisition

(Oracle presenter)

Roles: “Paranoid” Operations Managers, Financial Managers

* Integration with EAI/BPM and Rules System – including invocation of process from dashboard.

BAM to monitor straight-through-processing.

Monitor effectiveness of rules.

* Business metrics and IT metrics in dashboard.

Process automation and optimization.

Grow through alliances with visibility.

Quicker reactions.

Issue: Having consistent time dimension with events from multiple application systems required specific programming.

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Characteristics: Roles consuming, Techniques

Value / Benefits – Measurable improvement (or clear problem solved)

Issues / Wish list

Trucking/Logistics

Improve delivery chain efficiency

Hotel – effectiveness of web sales channels

(Celequest presenting)

Roles: Plant Managers. Rolling out to 1000 named users (now 100)

Goal: Increase percentage of “perfect orders.”

KPIs: Fill Ratio, Order Miss

About 8 major events pertaining to trucks, palettes.

Technique: Use of streaming database for “operational business intelligence”

Identify problems in operation – make corrections to improve fill ratio/order miss.

Visibility to inefficient areas of delivery chain.

Analyze root cause of problems.

International shipping and logistics - support of Canadian regulatory security compliance

Has been deployed 2 months.

(Systar)

Problem: packages into Canada must have airbill processed by Canadian customs before the package departs from US. Penalties $2000/non-compliant package.

Roles: Business operations, Application Support, IT support.

Technique: Uses rules with inference engine, metric and dashboard objects.

Efficiencies: Automated surveillance. Alert to right person – reduce false positives.

Discovered some packages not making it to flight.

Better, faster decisions –

E.g. if have one package non-compliant but have $2M revenue on plane, take off or not?

Remove silos – business operations can see across groups.

Challenge: As the business process changes, the requirements on BAM change. Rolling out dashboard with a new process was a challenge.

Delta Airlines

(Georgia Tech presenting)

Design for monitoring complex operational information systems – with large event volumes. Impact of system outages on revenue.

Technique – XML is not efficient – use binary or similar for internal and XML only as needed for open consumption

Legacy systems – need data tapping to get events from legacy systems.

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Summary– Common Elements

Issue: Scope creep on BAM requirements

– When LOB views a dashboard, quickly see new possibilities/areas

– When process being monitored are designed concurrently

Question discussed: is approach of using a standard event format necessarily in conflict with requirement for being non-intrusive to systems being monitored?

Issue: Out of order events, good programmer-free solution?