ibm achieving business process excellence webinar

© 2011 IBM Corporation

Achieving Business Process Excellence Kristin Anderson – IBM WebSphere Alicia Brandon – IBM WebSphere Mike Holp – IBM BPM Pramod Sachdeva – Princeton Blue

Feb. 3rd, 2012

© 2010 IBM Corporation CIBC and IBM Confidential 2

Meeting Agenda

1. BPM Introduction & Overview

2. IBM BPM Success Stories

3. Q & A

2

© 2010 IBM Corporation CIBC and IBM Confidential 3 Information Week: September 2010

Business Process Improvement is #1 Priority

40% higher EPS growth

45% higher ROI

10% faster revenue growth

2.6X higher return on capital

23% lower valuation volatility

than their industry peers

Source: 2010 Convergence Index, BTM Institute

Agile businesses have:

Process optimization drives agility

3


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, well over

twice that of its closest

competitor*

Report: A Decade of Leadership. IBM Named Marketshare Leader in Middleware Software for 10th Consecutive Year

IBM is the undisputed leader in BPM

*Source: Gartner, Inc., Market Share: All Software Markets, Worldwide, 2010, March 30, 2011


“Customer references are among the most advanced in

BPM maturity. They demonstrate broad adoption of

BPM across an organization that yields transformative

business results.”

Analysts validating IBM’s story

Source: 3Q 2010 Gartner BPMS Magic Quadrant.

“Consistently produces highly intuitive software that addresses each role's perspective, while providing an integrated round-trip user experience.”

“IBM's market reach and strong brand should accelerate the revenue growth”

“Process governance is a sweet spot”

Janelle Hill

VP Gartner Research

Jim Sinur

VP Gartner Research


Typical Process Problems Without BPM

Customer Problem:

• Lack of scale

• Tribal Knowledge

• Painful to change

Executive Management

Customer Service

Invoice Reconciliation Teams

Finance and Ops

Account Administration

1

2

3

5

4

6

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

1

2

3

4

5

6


BPM Delivers A Layer for Control, Visibility & Auditability

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

5

6

7

Executive

Management

Customer

Service

Risk Management

Teams

Finance

and Ops

Account

Administration

1

2

3

4

© 2010 IBM Corporation CIBC and IBM Confidential 8 8

Visibility

Simplify operations and improve

customer experience

Easy to engage all process

participants, powerful enough

for mission critical processes

Centralized visibility and control

Empower knowledge workers

with real time analytics to

optimize business processes

Simplicity Scales smoothly and easily

from initial project to enterprise-

wide program

Power

Governance Reduce risk through automated and

governed business processes to

reduce manual labor and increase

accountability

Deliver on your business promises Reduce complexity, automate processes and boost productivity

© 2010 IBM Corporation CIBC and IBM Confidential

Succeed with an Initial Project

Establish a Program

Extend Success to Transform Across

the Enterprise

Bu

sin

ess O

utc

om

es

Project Scope

• Improve speed of operational decisions

• Quickly change and integrate business processes

• Deliver new services faster

1 2

3

• Match customers with products in real-time

• Link customers and partners into processes

• Deliver new customer self-service features to beat competition

• Extend real-time operational decision making capabilities

• Enable rapid business led process changes

• Streamline multiplatform development, deployment, and information delivery for mobile, web, and cloud

Build Your Roadmap To Agility


Princeton Blue Background

Exclusive focus on: Process/Rule automation, management and optimization

10 © 2012 Princeton Blue

Enabled through: Business Process Management (BPM), Business Rules (BRMS), Integration and SOA technologies

Customer Referenceability: 100%

Service offerings: • Architecture, design and technical leadership

• End-to-end project development and delivery

• Strategy, business case, roadmap and technology selection

• Readiness and maturity assessment, evaluation and proof of concept

• Establishing Process and Rules Center of Excellence

Princeton Blue recognized by Gartner

Who's Who in Business

Process Management

Consulting and System

Integration, Volume 2

Released February 23, 2011

“Although many consultants and

system integrators offer some form of

business consulting or process

optimization services, they may not

have the capabilities appropriate for

business process management.”


Major Pharmaceutical Company HR Employee & Contractor On-boarding

An all-encompassing streamlined process solution for employee and contractor

new hires that covers all types of compensations and access to validated and non-

validated systems.

A consistent approach to onboarding all personnel ensures a smoother and more

predictable process with better employee experience.

Results

• Many different employee onboarding processes across different LOBs and geographies.

• Needed to standardize the employee on-boarding process to meet the increasing

demand of quickly on-boarding new hires as a result of acquisitions.

Multiple systems. Process information spread across multiple systems and people.

Unstructured Process. Multiple starting points, no methodical approach to getting the

tasks done, no way to ensure all tasks are complete and in the right order and no

accountability.

Regulatory Requirements. No easy way to ensure that all the regulatory controls are

properly implemented and followed every time a new hire is made.

Challenges

11


Promotional Branding Co. Streamlines Order-to-Cash Process

Training time reduced from a few weeks to just 2 days

Order-to-Cash cycle time reduced from 60 days to 27 days

Now capable of handling 10x their previous volume

Challenges

Results

• This US-based company specializes in promotional branding.

• “…rapid growth despite the recent economic conditions is validation that the promotional products industry is ready for innovation. This investment demonstrates our confidence that their technology platform will enable them to rapidly scale their business.”

Thomas Ball, Partner Austin Ventures

Training Required Weeks. Only industry experts could be hired because they

required extensive training on the process which was costly.

Lengthy Cycle Times. Once a customer placed an order it took 60 days to process

and ship.

High Volume of Orders and Multiple Processing Systems. They received 100+

orders per day and had 3000+ active orders at any given time. These needed to all

be maintained across Salesforce.com and their sales support teams.


Energy Management Company Implements a Country Launch Dashboard

Product Launch Process deployed with visibility across 130 countries

Business Departments effectively inform and receive feedback from countries

Easily able to highlight disagreements and capitalize on the launch experience

Challenges

Results

• This European-based company has been using IBM BPM since Q2 of 2007.

• This customer is the global specialist in energy management with over a 100,000 employees in more than 100 countries.

Incoherent Processes. The approval, localization and product launch processes across

many countries for their products were not standardized.

Delayed Product Launches. They introduce thousands of products each year; at times

there was 8 months of latency in the launch process per product.

Ineffective Collaboration. Business Departments and Countries did not have

opportunities for discussion to finalize commitments needed to launch products.

Challenges


Travel and Tourism Operator Pricing and Promotion Management

A process based solution that allows all the pricing rules to be managed by

business, using the right business terminology and does not require any IT

involvement to make pricing changes or roll out new promotion strategies.

Business can now offer instant promotions and price match offers to stay ahead

of the competition.

Results

• Major travel and tourism operator wants to stay ahead of the pack by offering vacation

packages online in the same way most sites today offer airline travel

• Due to the competitive nature of the industry, the company needs to be agile in offering

instant promotions and price match offers online

ERP System. Pricing processes are not business friendly and require specialized

technical pricing experts to make any changes. In addition, ERP terms are not consistent

with business terms.

Online Traffic. More and more people are going online for the vacation planning rather

than coming into an agency, thus the need to be more agile with pricing processes.

Instant Promotion and Price Match. Business wants to offer promotions and price

match guarantees instantly without the needs for lengthy IT change requests.

Challenges

14


Major Financial Services Company Wealth Management Platform

Current documentation of the processes for business and technical stakeholders

Easily identify areas of improvement within the business process

Faster turnaround of process changes and enhancement to constantly changing

business and regulatory needs.

Results

• Wealth Management platform for account opening, account maintenance and

investment strategies

• Integrates with multiple external Trading Platforms, internal and external custodian

systems and portfolio performance systems

Unmanaged Processes. Process information was spread across multiple platforms and

many people.

Little or no visibility. No easy way to improve the process to deliver a better customer

experience.

Sunset Platform. A key part of their applications were built on a platform that had been

sunset by the vendor and out of support.

Challenges

15


Pattern Typical Questions Outcomes Realized via BPM

• Is there an excess of manual work?

• Are activity sequences performed differently?

• Improved efficiency / effectiveness

• Consistent and repeatable processes

Workflow

• What are people doing?

• Could people be doing it better?

• Visibility into productivity

• Identified opportunities for improvement

Business Activity

Monitoring

• Is excessive time spent in different applications / systems?

• Are training / ramp-up costs high?

• Improved task efficiency / effectiveness

• Lower training costs

Unified Workspace

• Is there unnecessary rework?

• Do exceptions require disproportionate attention?

• Reduced rework

• Reduced effort with increased flexibility

Exception Handling

• Do projects take too long to deliver?

• Is there a backlog of projects?

• Improved IT creativeness

• Reduced backlog

Application Development

Common Solution Patterns

16 16

ibm achieving business process excellence webinar

Documents