Integration-centric implementation of BPM in Financial Services

Choose the methods and tools carefullyDetermine the value and then choose the toolsOrganizational willingness determines your paceThe reality of integrationBizTalk handles the bytes with easeIts the other bits that slow up the processThe processing picture is finally complete..or is it?Agenda

People Ready Business is our avenue to successStay focused on our reality

BizTalk Server vs Workflow FoundationOne team - two products?

Static, disparate applications and platformsStandards-based, flexible business applicationsAdaptive platform driving core applications and business processes Fully service-oriented, dynamic application platformCostEfficiencyBusiness EnablerStrategicIs your organization ready & willing?

Communication & CollaborationEnterprise Content Management & IntegrationBusiness IntelligencePhone, paper, fax, email to and from customers.Paper filing systems, offsite storage, emails remain isolated, manual processes.Reports are silo based. Exceptions managed via reports.Centralised digital filing & communications management. Digital process management. SLA managed work.Communicate based on customer choice. Secure email, internal collaboration.Secure & managed collaboration across departments. Unified communications.Processes & documents integrated to transactions. SLA & resources managed. Mundane work is automated.Alerts, scorecards, dashboards integrated to all relevant data sources.Reports integrate multiple data sources, historical trends easily tracked.Seamless communication & collaboration across the firewall. Secure and compliant.Federated processes & documents across all parties. Simulation & prediction of federated resource requirements. Rules based automation.Closed Loop Analysis alters rules which in turn alter processing resources. Reality check per process

AHM Business Innovation

Business Process SegmentationSystem to System - AutomatedSystem to Human - TransactionalHuman to System Case BasedHuman to Human - Collaborative

Office Business Applications

Office SharePoint ServerWordExcelOutlookInfoPathHuman to System BPMS

System to Human / SystemSystem to System - AutomatedSystem to Human - Transactional

Office Business Applications

Office SharePoint ServerWordExcelOutlookInfoPathSystem to System to Human BPMS

The human face of automation

The processing picture is finally complete..or is it?

Market growth drives innovation

Forrester: BPM Market Growth Worldwide, 2005 To 2009

The case for BizTalk

Questions& Answers

**When discussing enterprise wide integration there are two key ingredients to take into consideration:

The value proposition broken down to a case by case basis; The willingness and ability of the organization to introduce and manage change.

These two elements will determine how sophisticated your integration is for the particular project at hand.

What I hope to demonstrate today is that the Microsoft stack, with industry specific extensions from the partner community, can serve all facets of your enterprise integration requirements.

For the first time you are able to select a single technology platform and apply it, in various styles, across your entire enterprise.

Following the that the Microsoft solution is based on several integrated and integrating products.

BizTalk is particularly well suited to system to system integration style, but as we all know, a true process management solution requires a lot more than that.

Lastly I will gaze deep into my crystal ball., but more on that later.Lets start with the most revered form of business process integration, people. Easy to train, quick to learn, can make judgment calls.

So why do we insist on giving them mundane work like key from image. Our strategy has to be to optimize their use through the appropriate application of technology.

Our reality is to keep human resources as the primary resource in any process integration strategy.

As I will discuss throughout this presentation, for each style of processing the use of this key resource changes.

There is no doubt that humans remain the key resource and any integration strategy that ignores them does so at its peril.**You have heard several presenters discussing the virtues of BizTalk.

In our financial services processing world BizTalk is complimented by Windows Workflow Foundation.

Interestingly it was the BizTalk product team that retired the Human Workflow Services component of BizTalk and it was the same team that designed and developed WinWF.

Workflows that need to join systems to other systems, systems to messages, manage complex commit and rollback operations are best handled by BizTalk.

The community at large has invested heavily in this strategy by producing many adapters, some of the most popular having been acquired or licensed by Microsoft.

Our experience has shown that very fast short interactions with rules, line of business systems lookups or any other form of logic is best performed in WinWF.

Human to system interactions need to be very fast and WinWF serves this purpose.

In our e5 solution we use WinWF as the first integration layer and then allow WinWF to integrate to BizTalk and other application layers.* 2004 Microsoft Corporation. All rights reserved.This presentation is for informational purposes only. Microsoft makes no warranties, express or implied, in this summary.*Infrastructure Optimization Model In ActionThe Optimization Models from Microsoft have been developed using industry best practices and Microsofts and its partners own experiences with their shared enterprise customers as well as incorporating the latest IT analysts analysis from leading firms, like Gartner and Forrester.

The first step in using the model is to evaluate what maturity level you are at in the model.

Once the current maturity level has been established, the next step is to use the model to develop a plan on how to progress through each maturity level in order to reach the target level needed for maximum business benefit.

Implementing process improvement programs, particularly those that include integration, require infrastructure, skill and most importantly the willingness to change.

It is vital that you look at each area of your business and determine the maturity level of their business processes.

From there it is relatively simple to determine the steps required to improve your processes..simple, that is, if you know where you wish to end up.* 2004 Microsoft Corporation. All rights reserved.This presentation is for informational purposes only. Microsoft makes no warranties, express or implied, in this summary.*Lets apply the Microsoft model to our business processes. The details on the screen are there to help identify some of the key indicators for each stage of the process optimization.

It is intended to convey the fact that this modeling process does not take you into the land of dark art, but follows a pragmatic progression through each stage.

Level 1 Basic The classic level one is a paper based transactional process or a purely email managed collaborative process. Users rekey information into line of business systems and do a remarkable job of managing the paper shuffle.

We are constantly amazed at the non IT based innovations introduced by paper processors. Magnetic whiteboards with workloads and coloured medallions representing resources and the ever present registers into which manual processing counts are added.

We never underestimate the attention and detail undertaken by supervisors and managers in these paper processing environments.

At this level the only automated reporting comes from the transaction systems. There are no real time reports on workloads and work performance.

All workloads and work registers are manually compiled.

The effort to do all of this is quite significant and detracts key resources from doing work.

In most advanced service based communities the competitive pressure on cost and time to respond means this is no longer a viable means of processing.

Level 2 StandardizedThe standardized level means that your organization is processing digitally.

Even if you cannot remove inbound or outbound paper communications the paper never travels past the mailroom. In many cases the mailroom is outsourced to be at or near the GPO sorting centres. This helps you claw back a few more precious SLA hours.

Faxes and emails are treated in the same manner as paper. They are unstructured communications and need to be tightly integrated into the overall business process.

Every service related communication (paper, fax, email, telephone request, etc) causes or joins work. Each piece of work is classified and linked to the line of business system.

Formal business processes have been mapped and are closely followed.

Level 3 AdvancedThe Advanced processing level is where IT can truly become an enabler and partner with business.

The organization is starting to process data, rather than communications, and is becoming exception rather than work focused.

Tight integration of all business processes, all communications and all actions allow Advanced organizations to present a single view to call centres, customer portals and trading partner

Level 4 DynamicProcesses are fully automated, many human skills are embodied in agile rules, systems are highly integrated.

The use of Service Oriented Architecture is well defined within the company and is delivering adaptive and cost effective applications and application development. Integration spans various supply chains.

Closed Loop Analysis self adjusts resource allocation rules and exception handling rules.

Where to next? With the recent upgrade of the AHM workflow infrastructure they are now positioned to take advantage of the lower cost of projects and the extended reach via mobility.

To be able to offer businesses a Total Health Program requires AHM skills to be onsite. These business sites can be anywhere in the country and it is therefore beneficial for AHM to employ skills close to these businesses.

Equipping the AHM staff with the appropriate tools requires mobile processing. Whether the need is for a wireless notebook or a wireless PDA the single AHM system should be able to cope.

Being able to tailor the programs and case management structure for each major employer at a low cost provides AHM with an added competitive offering. The process management solution needs to be structured in such a way that the rules and business functions can be established to suit the particular requirement without the solution costing more than the opportunity.

In parallel to these two large projects AHM is also running a series of smaller business improvement and compliance projects covering Accounts Payable, Arrears Processing, Contract Management to name a few.

I would suggest that the AHM business processing is more sophisticated than many of their major competitors. Fortunately for their stakeholders they have spent only a fraction of what it would have cost to implement traditional technologies.

* 2004 Microsoft Corporation. All rights reserved.This presentation is for informational purposes only. Microsoft makes no warranties, express or implied, in this summary.*We need to view organisational business processing in 4 broad areas:

Human to Human is where the data is digitally held and managed, but the process is relatively loose. Users decide what happens next. Informal collaboration on document creation is a typical example of this style of business process.

Human to System is where the data is digitally held, the process milestones well defined, but the detailed steps left to the decision of the human participants.

*SUGGESTED TALKING POINTS: Consistent with Microsofts People Ready Business vision, Microsofts business process management solution does not categorize personnel as variables to be factored out through automation but as key players in driving the improvements and innovation that lead to organizational success. By empowering business owners to control and incrementally modify and optimize critical workflow processes, Microsofts approach improves the ability of users to engage with and improve processes, through tools they are already familiar with and can easily modify, like Microsoft Office. This ultimately results in the ability to respond to market changes and innovate faster, thereby delivering sustainable competitive advantage.** 2004 Microsoft Corporation. All rights reserved.This presentation is for informational purposes only. Microsoft makes no warranties, express or implied, in this summary.*System to Human is the classic back-office or call centre style of processing. The system determines what needs to be done next and delivers work appropriately. Service Levels, Quality Assurance and granular process steps are closely managed.

Work is managed in relation to the line of business system to which it applies. Resources are closely managed in skill pools.

The key elements being measured are:Adherence to Service LevelsQuality of processingCost of processingPerceived duration (from the customers viewpoint)Adherence to compliant processing maps

This is an area where we have done a considerable amount of work over the last 10 years as organisations move into the Standardized level of process optimization.

There are several key elements that make this level of process optimization possible, the most important of those is having the technology and processes in place to capture and classify work at the moment it becomes visible.

The last and most optimized style of processing is automation. Here we need to focus on gaining access to work as machine readable data. This data needs to be transformed, enriched, provided to adapters which join to other systems, managed and the updates put on hold or potentially rolled back.

With both System to Human and System to System processing your line of business integration and B2B integration is key to your success. The more advanced and agile this integration layer is, the more likely you are to achieve iterative and ongoing improvements in your level of automation.*Unlike many alternative business process management tools, the Microsoft Office Business Application addresses the full spectrum of business processes from ad-hoc/human unstructured workflows built on Office SharePoint Server to highly structured, transactional workflows built on Biz Talk that integrate disparate systems.

Why would we consider Office when we are talking about B2B or automation? Quite simply because humans are always the core to any business process and as such the Office desktop and server interfaces are the optimum interfaces.Finally, Microsofts solution is built on a common infrastructure and application platform, with an integrated set of capabilities around user presentation (Office), process (SharePoint Portal Server, BizTalk), business analytics (SQL) and development tools (Visio, SharePoint Designer, InfoPath, Visual Studio), supported by the robust and scalable platform provided by the Windows Server family and .NET Framework 3.0 (with Windows Workflow Foundation, a next-generation set of frameworks, reusable components and tools for developing work-flow enabled applications that ships with Windows Vista and forms the underlying basis for future development of Microsoft business process management applications and solutions).

So now you can see how the App Platform technologies were investing in that can integrate these two worlds, built on .NET, Sharepoint, OBA, and our formal business process management solution with BizTalk Server.

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