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Welcome! Preparing For Digital Transformation Boston, March 16 2017
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2:30PM—3:15PM
Red Hat Presentation: Powering Digital Transformation
3:15PM—4:00PM
Vizuri Presentation : Preparing for Digital Transformation
4:00PM—4:30PM
Signavio Presentation: Tools for Digital Transformation
4:30PM—5:30PM Happy Hour / Networking Time
AGENDA
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“...Because we have to compete against new disruptive startups that are hiring kids fresh out of college drinking loads of Mountain Dew!”
(CIO @ Global Insurer)
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Vizuri: Preparing for Digital Transformation
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Introductions
Joe Dickman – SVP, Vizuri Business leader working with organizations to understand how to leverage
innovation for increased business agility. Specializes in insurance, healthcare, financial service, retail, and logistics.
Ken Spokas – Technical Director, Vizuri Technology and Subject Matter Expert working with organizations to
evaluate architectural approaches, design extensible solutions, and introduce innovative technologies to improve business agility.
Ben-Johan van der Walt – Solutions Architect Vizuri Architect on many of Vizuri’s Rule engagements, leading projects on both the
technical and analytical side to successfully bridge the gap between business and IT for our clients.
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Vizuri Overview
● Expert Java EE & Open Source Solution Provider ● Premier Red Hat Business Partner ● Preferred JBoss Certified Systems Integrator ● 4 Red Hat Innovation Awards ● 5 Time JBoss Middleware Partner of the Year ● Certified Resources ● Sponsor DC JBoss Users Group
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Vizuri Core Strength
Bridging Business and Tech
● Identify strategic business drivers
● Understand customer’s business
● Evaluate architectural alternatives
● Design solutions using proven, innovative, and adaptable technologies
● Validate designs through iterative prototyping
Business Strategy
Solution Architecture
Development Implementation
Building Extensible Solutions
● Reference Architecture
● Continuous Delivery ● Design Patterns ● Performance ● Scalability ● Resiliency
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Pillars of Digital Transformation
API Management
Infrastructure Management
Knowledge Management
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Pillars of Digital Transformation
API Management
Infrastructure Management
Knowledge Management
● CI/CD ● Repeatable provisioning ● Self-service ● Governance ● On-Premise / Hybrid / Cloud
● Microservices ● 3rd Party / Internal ● Security ● Monetization ● Death Star
Architectures
● Rules / Decision ● Business Processes ● Predictive
Analytics ● Machine Learning ● Unprecedented
amounts of data
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Traditional Sense of SDLC
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Enterprise Software Engineering Focus Areas
API Management
Infrastructure Management
Knowledge Management
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Conway’s Law
Organizations which design systems… are constrained to produce designs which are copies of the communication
structures of these organizations
Melvin Conway - 1967
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Conway’s Law - Variation
If the parts of an organization ... do not closely reflect the essential parts of the product…, then the project will be in
trouble...
Coplien & Harrison, 2004
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Knowledge Based IT Management Challenges
● Disparate Vocabularies ● Translation of defined rules
and processes ● Different Business and IT
Champions
● Lack of 360 degree feedback loop
● Lack of organizational visibility across the entire business
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Expectations vs. Outcomes
Business groups and IT require new positions to be defined that ”bridge” the communication gap.
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What is Knowledge-based IT?
A knowledge-based system (KBS) focuses on systems that use knowledge-based techniques to support human decision-making, learning and action1 Knowledge-based IT (KB-IT) is the application of KBS techniques with information technology • Design process • Models and methods • Software tools • Decision-support mechanisms • Digital representation, and • System architectures
Source: Fujita, H., & Lu, J. (2012). Knowledge-based Systems, Volume(31), pp. 1-211.
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What is Knowledge-based IT?
IT Solution where Knowledge is a first class citizen – Business Rules and Process boundaries are clearly defined – Goals drive the solution, not the IT restrictions
Change can be accommodated quickly without being impeded by IT limitations
– The process knowledge definition and concept model should ”outlive” any technical implementation
– Decouple the concept model and process definition from the underlying implementation to create business agility
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What is Knowledge-based IT?
● BPM provides a systematic approach to making an organization's workflow more effective, efficient, and capable of adapting to ever-changing business conditions
● A business process is an activity or set ● of activities that will accomplish a specific
organizational goal ● A business rule management system (BRMS) enables organizational
policies, and the operational decisions associated with those policies, to be defined, deployed, monitored and maintained separately from core application code
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Primary Goals for Considering Knowledge-based IT
• Increase organizational agility • Document processes to identify gaps
and critical dependencies • Protect Intellectual Capital • Reduce Complexity • Provide insight into implementation • Improve IT Outcomes • Collect Key Performance Indicators • Support Contingency Planning
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Compliance, Audit, and Policy • Insurance
– Underwriting – Claim Adjudication
• Healthcare – Standards of Care – Plans of Action
• HIPAA • SEC Finance Disclosure • Mortgage Lending • Government Agencies
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General Approach : Get Organized!
Both IT and Business Need Coordinated Discipline ● Build a common way to describe things ● Get Commitment! ● Decompose the problem appropriately ● Build with quick iterations ● Continually monitor, adapt and improve ● Take an inventory of the AS-IS problems and solutions
Discipline at each step pays off in both the short and long term!
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Challenge : Disparate Vocabularies
Truck ?
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Challenge : Disparate Vocabularies All stakeholders must be able to communicate effectively: • Common Vocabulary
– Non-ambiguous, understood by all – Understood, or in a central reference – Composes the “Concept Model”
• Business Rules succinctly defined in near human language – Not necessarily executable – Closest to real language the better, but avoiding ambiguity
• High level “happy path” processes modeled visually
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Project Spotlight : Railinc RPM Initiative
● Concentrated (5 year) RPM effort ● Canonical vocabulary and rule
definitions ○ Business Rules Solutions
● Rules Development standards ○ Auditing ○ Traceability ○ Feedback
● Program Assessments ● Rules Training efforts ● Rules Maturity Model
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Challenge : Different IT & Business Champions
Need all stakeholders to make a sincere commitment to collaborate:
● The more management buy-in, the more hope of project success ○ Time-boxed modernization effort (typically 3 to 5 years) ○ Appetite to continue support of center of excellence beyond
inception
● Need influential champions on both Business and IT side ○ IT left alone will mangle Knowledge IT to look like traditional IT ○ Business left alone will make infeasible goals
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Challenge : Different IT & Business Champions
Knowledge management is high-level and high-trust ● Big responsibility… no other IT projects are closer to the
heart of the organization… ● Often straddles business units/departments ● Enable organization and collaboration
○ Tear down walls when appropriate ○ Will fail without sincere buy-in
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Project Spotlight : Large Mutual Insurance Company
● Shortage of underwriters ● Inconsistent risk ratings ● Struggled with IT agility to push
services to help situation ● Previous Project attempt failed ● Built a rules engine group ● Rules exposed as business centric service ● Automated a large portion of the manual decision making
process ● Underwriting approval process was reduced from 40 days to
under 5 days
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Challenge : Lack of 360 Feedback Loop
● Are the Key Performance Indicators provided for processes/decisions?
● Is the process “healthy”? ● What are the bottlenecks? ● Which rules were (or were not) applied
to arrive at a decision?
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Challenge : Lack of Visibility Across Business
● Lost in translation? ○ From requirements to implementation ○ Reduce/simplify translation steps
● Declarative definitions ○ BPMN/DMN
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Project Spotlight : PMI Rate Calculator
Fortune 500 Insurer providing Private Mortgage Insurance ● Legacy Systems were out of date
and existing Rules Technology was being sunsetted
● Business could not keep up with the rate of business rule changes
● “States” and “Dates” ● Performance was becoming an issue
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Going Forward: Process Assessments
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Red Hat Offerings Empowering Digital Transformations
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SO YOU HAVE A MODEL, NOW WHAT?
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AUTOMATING BUSINESS PROCESSES
BUSINESS PROCESS MANAGEMENT SYSTEM
BUSINESS RULES
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NYSE:
OPEN SOURCE LEADER
#1
* Red Hat client data, 2014
500 S&P
COMPANY RHT
MORE THAN
90% of the
FORTUNE
500 RED HAT
use
PRODUCTS & SOLUTIONS*
~10,000 EMPLOYEES
85 OFFICES
35 COUNTRIE
S
THE FIRST
$2 OPEN
SOURCE COMPANY IN THE WORLD
BILLION
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Tools for business experts
Tools for developers
PROCESS PARTICIPANTS
ON-PREMISE SYSTEMS
CLOUD SERVICES
APPS APPS
APPS
Process Services
Decision Services
Business Central Process Server
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PROCESS AUTOMATION WITH RED HAT
Your business experts build...
Process models
Decision models
Which are stored in the Red Hat repository...
Where they are packaged into applications...
And deployed... To the cloud...
or to servers in your data center.
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PROCESS AUTOMATION WITH RED HAT AND SIGNAVIO
Your business experts build...
Process models
Decision models
Which are stored in the Red Hat repository...
Where they are packaged into applications...
And deployed... To the cloud...
or to servers in your data center.
Process Editor
Decision Manager
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DEPLOY TO THE THE CLOUD?
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DEPLOY TO THE THE CLOUD?
Decision Microservice
Process Application Planning Microservice
Payment Microservice
Modern microservices architectures
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DEPLOY TO THE THE CLOUD?
Decision Microservice
Process Application Planning Microservice
Payment Microservice
Modern microservices architectures
Next-gen user experience
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Siganvio: Business Transformation Suite
The smarter way to continuously translate between strategy and execution
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Welcome, introduction ― David Gaudin,
SVP Sales, Signavio, Inc.
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Today’s World
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Agility is not a Buzzword, it’s a Necessity The pace, volume and complexity of change of today’s world demands that every organization becomes agile
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▪ Rapid Pace of Technology Evolution
▪ Focus shift on Customer Experience
▪ New & Evolving Complex Regulations
▪ The Battle for Talent
▪ Decipher Volume of Intelligent Data
▪ Rising Security Threats
KeepingupwiththePace,Volume,Complexity,&CostsofChange
Today‘s World
What are we hearing
that is driving the
constant state of
Change?
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VP/Director/Manager of…
• Performance Excellence • Business Transformation • Customer Experience • Process Excellence • Risk and Compliance • Operational Excellence • Digital Transformation • Employee Engagement • Risks & Controls • …..dozens more
KeepingupwiththePace,
Volume,Complexity,&Costs
ofChangeStruggling to keep up with
the Continuous State of
Change
The New Normal
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• Time & money wasted by multiple groups changing in isolation
• High customer complaints & retention issues
• Employees having poor process understanding or unable to access needed information
• Change initiatives failing, lack of employee engagement
• Rising costs of duplication and re-work
• Knowledge gap between business and IT, leading to wrong system priorities, and wasted IT resources
Business Impact
Traditional
Approach to
Managing Change
as “Initiatives“
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Reactive Approach
✓ Unmanageable Static Documents (Visio, PowerPoint, Word, Excel)
✓ Document Storage Initiatives (SharePoint, Box, OneDrive)
✓ Multiple All-Day Meetings
✓ Training Sessions & Initiatives
✓ Uncontrollable Volumes of Emails
✓ Post-It Notes Everywhere
✓ Tribal Knowledge & Superheroes Prevail
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KeepingupwiththePace,
Volume,Complexity,&Costs
ofChange
Are you keeping
up?
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KeepingupwiththePace,
Volume,Complexity,&Costs
ofChange
So what is on
your Mind?
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Over the next 5 Years …
Organizations will be competing against,
partnering with, or serving customers they
never would have expected.
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“We didn’t do anything
wrong, but somehow, we
lost”
- Nokia CEO
Hard Lessons: o The advantage you have today
will be replaced by the trends of tomorrow.
o You must innovate & improve, or one day become redundant & irrelevant.
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Razor Wars: Gillette Vs. Harry’s Vs. Dollar Shave Club
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The Current Uber Vs. Taxi Turf War
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Hotels Vs. Airbnb: Let the Battle Begin
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New Business Challenge: Agility & Innovation
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▪ Accelerate our speed to market?
▪ Govern the pace & lower the cost of change?
▪ Shortcut traditional approaches?
▪ Align Business & IT on strategic outcomes?
▪ Impact customer journey vs. minor stovepipe improvements?
New Business Challenge:
Agility &
Innovation
So how can I…
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✓ A single source of truth for – Business Process, Business Rules, Enterprise Architecture, Roles and Responsibilities, Risks and Controls, SOP’s, Training Resources
✓ Model-based Business – continuous business improvement and agile operating model
✓ Readily acceptable common language between business and IT teams to work collaboratively on strategic outcomes
✓ Leverage wisdom of the crowd to promote contribution to and sharing of process knowledge throughout the organization
✓ Visibility & Transparency for all to easily find information - anyplace, time, device - and through any lens, across barriers
✓ Visual gap analysis to view potential changes to current vs. intended state
KeepingupwiththePace,
Volume,Complexity,&Costs
ofChange
A Better Way
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Signavio & Redhat The Best of Both Worlds
Business Community
Collaborative Design, Analysis, Validation, Optimization, Governance
IT Community
Develop, Deploy, Run, Monitor
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Process Manager: An Intuitive BPM Solution
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QuickModel: The Easiest Way to get started
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Collaboration: Knowledge of the Crowd
Signavio https://editor.signavio.com
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Visual Comparison & Version Control
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Simulation: Optimize Costs, Time, Resources
Signavio https://editor.signavio.com
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Roles & Responsibilities
Signavio https://editor.signavio.com
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Data Dictionary: Consistency & Reuse
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Reports & Documen- tation
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Decision Manager: Decision Modeling
Signavio https://editor.signavio.com
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Decision Manager: Decision Modeling
Signavio https://editor.signavio.com
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Decision Manager: Decision Logic
Signavio https://editor.signavio.com
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Decision Assistant
Signavio https://editor.signavio.com
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Collaboration Hub: Your BPM Process Landscape
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Collaboration Hub: Overview
Signavio https://editor.signavio.com
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Process Intelligence: Insight into your Process Operations
Expected Path vs.
Actual Path
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Global Financial Services
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Regulatory Compliance ▪ Rapid growth of new
regulations ▪ Increasing
complexity ▪ Ever-changing
interpretations ▪ Very costly to
implement
Model for Success ▪ Thousands of
regulations modeled ▪ Rules visibility across
organization ▪ Business community in
control ▪ Governance & Audit
Trail
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Results ▪ Lower cost of change,
dramatic savings $M
▪ Speed to market, change cycle: From 6-18 months to Days/Weeks
▪ Clear Visibility & audit trail
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Major US Life Insurance
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Market Opportunity ▪ New Customer
Journeys & Experiences
▪ New Products and Paths to Market
▪ Increase Innovation and Agility
▪ Slow Manual Legacy Systems & Processes
▪ Tribal knowledge
Innovative Approach ▪ Business Community in
Control of Process & Decision Logic
▪ Crowd Contribution and Knowledge Share
▪ Governance & Oversight of changes
▪ Seamless integration with IT Systems and Applications
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Results ▪ New operating model for today
& tomorrow
▪ Wide audience contributing innovative ideas for new products and services
▪ Business community validation of business rules & logic before promoting to IT
▪ Dramatic reduction in change cycle, delivery reduction from 6+months to weeks
▪ Everyone on same page, awareness & notifications of changes
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Signavio
2009 founded
1000+ customers
Offices: Berlin Boston Singapore
The first web-based modeling tool
The next generation business process and decision modeling platform
150+ employees
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Small Company, Many Customers
Public Sector
Software & Internet Retail & Logistics
Manufacturing Communications
Banking & Insurance
Utilities and Energy
Academic Institutions
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