Sydney, 17 July 2007

IBM SOA EXECUTIVE SUMMIT

IBM SOA

© 2007 IBM Corporation

Business Process Management Enabled by SOA

Deon NewmanDirector, SOA Marketing

IBM SOA

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CEO’s Cite Innovation as Top Priority for Business

Source: IBM 2006 Global CEO Study

Results of 765 CEO interviews worldwide:

Out Performers place 2X emphasis on Business Model innovation than under performers

- CEOs are under intense pressure to innovate

- Corporate culture is critical to sustained innovation

- Business model innovation is the new strategic differentiator

Business Model Innovation delivers the greatest returns

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Which key business priorities will your IT organization implement or support in 2007?

Note: Multiple responses allowed.Data: InformationWeek Research Outlook 2007 study of 300 business technology professionals

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Inflexible and Outdated Processes Are the Root Cause of Many Corporate Disasters

Major Airline strands passengers on runway for 10 hours – no food, overflowing toilets

Market-leading cell-phone provider exits market after small

fire

Why? Inability to modify processes on the fly.

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Business Process Management is a Discipline…

BPM Solves: Processes aren’t documented

Bottlenecks prevent efficiency

Limited visibility into performance

Complex integration across multiple processes

Process change is cumbersome

KPIs notdefined

Expertise that Delivers BPMSoftware that Enables BPM

BPM Includes:

Rules EnginePolicies Business LogicWorkflow

ModelsIntegration Modeling Monitoring

Forms Methodology

Process Knowledge Metrics

BPM governs organizational and operational activities

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Value to shareholders

and competitiveness

Stakeholders

Processmodeling

Processexecution

Knowledge

Efficiency

IT agility

Compliance &consistency

Processmonitoring

Business insight

BPM adoption maturity

Processoptimization Transformation

Workers, supervisors and managers CIO CFO CXO CEO

lower higher

higher

lower

Customers and partners

SOA

Optimizing the business is the ultimate goal

Entire contents © 2007  Forrester Research, Inc. All rights reserved.

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BPM Starts and Ends with Business ValueC

oll

abo

rati

on

Process Governance

Bu

sin

ess

Str

ateg

y

Align business strategy and execution Communicate effectively between business and IT Collaborate to improve business process design Leverage industry standards and frameworks

Assess, capture, and analyze core behavior Understand value processes Identify redundant, duplicated, and inefficient processes

Track metrics to measure process performance Harvest data to optimize process performance Achieve insight and receive alerts to small problems

before they become big ones

Deploy on a SOA platform Automate processes improve profitability Facilitate human interaction to increase work efficiency

and reduce errors

Understand

Define

Execute

Optimize

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Source: BPM and SOA, Better Together, Paolo Malinverno, Janelle B. Hill, Gartner, Feb 2007.

BPM and SOA – Better Together

“Organizations that align their BPM and SOA initiatives in 2007 will double their likelihood of becoming an industry leader by 2011”

“…SOA and BPM initiatives…are moresuccessful and the benefits are compounded when they are united”

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….and here’s why

SOA improves how you design, manage, and optimize your business processes by enabling:

• Solution Building Efficiency

• Reuse of existing assets

• Flexibility in change

Services(Application & Information)

Operational Systems(Application & Information Assets)

Business Processes

Data Registry

Application Application

Content

External

SOA at the core of BPM:

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IBM & SOA at Wachovia

BPM & SOA Drove Business and IT Success

IBM SOA

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Business Process Management

Process Automation

Modeling & Simulation

Content Centric

Processing

Rules and Pre-built

Frameworks

Business Activity

Monitoring

Customers can start BPM in different ways

Design and simulate business

processes

Choreograph processes

across applications and

systems

Manage processes where content is

used as input for a decision or

produced as the output

Manage process rules and accelerate

design and implementation time

Track performance, gain insight, and take

action

Five Flexible Starting Points for BPM

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Iterative and continuous

improvement

Business Level Modeling and Simulation

Import Visio Models

Use ROI reports to compare and analyze Results

Model “what if” scenarios Use simulation capabilities to:

- Assess risk mitigation- Make investment decisions- Calculate value of improvements

Modeling & Simulation

WebSphere Business ModelerWebSphere Business Modeler

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Modeling & Simulation

IBM Process Models

Both Modeling tools support leveraging existing Visio documents

WebSphere Business Modeler can import Visio drawings

FileNet P8 Process Designer contains Visio BPMN palette

17 Industry-Specific Process Maps and Models based on IBM best practices and the Standards-Based Process Classification Framework

Helps clients kick-start process-optimization engagements.

1. CommonDefinitions

2. Classification Framework

3. Models in WebSphere

Support for Visio Documentation

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Identify activities and areas for improvement

Product Lifecycle Management

(Plant Operations)

Supply Chain(Inventory

Management)

Driving force behind BPM Adoption- Synchronize SAP ERP system with various

production plant software systems

- Manual processes requiring data gathering, was time consuming and error prone

Modeled processes for visibility Aligned business and technology priorities

Used adaptors to integrate custom apps with SAPDeployed improved processes on an SOA

BPM Disguised as:

Rapid Solution Deployment - 4 Months from Concept to ImplementationReduced potential human error with process-controlled automation

Rapid Solution Deployment - 4 Months from Concept to ImplementationReduced potential human error with process-controlled automation

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Business Alerts Notification of situations that require response

External InformationInformation affecting performance

ScorecardsKey Performance Indicators for business units

Reports & AnalysesUnderstanding trends by combining real-time performance and historical information

Collaboration Work with teams to resolve situations

Business Activity Monitoring

Business Activity

Monitoring

WebSphere Business MonitorWebSphere Business Monitor

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Business Activity

Monitoring

Expanded BAM

Monitoring Third Party Systems Providing adapters and support for

pulling information from a variety of sources.

Industry Dashboards

Templates for industry verticals including key methodologies

Predefined, full configurable dashboard templates

Human Task Mgmt.

BPM Dashboards for human task monitoring and management

Monitor human tasks in process BPM Dashboards will provide an optimized

experience for those roles responsible for managing the people side of process.

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NYS Dept of Taxation and Finance

Solution: Leveraging SOA and BPM, NYS DTF is rapidly transforming their systems, data, people, and business processes to be more functional, flexible and responsive to citizens, users and legislation. Traditional mainframe batch processing is shifting to transactional. Manual processes are transforming to automated business processes. Real-time business activity monitoring is replacing daily printed run reports.

Results: Rapid modernization of legacy batch systems to transactional. More channels to enhance voluntary compliance. Web services and XML linkage to IRS for corporate taxes. High component reuse, lowered costs. Reduced errors and business exceptions. Higher value business metrics.

Implementation Details: WebSphere Business Modeler, Business Monitor, Process Server, Integration Developer, Application Server, Flat File Adapter, Commerce, DB2 V9 pureXML, DataStage, Workplace Forms, CICS Transaction Gateway, Rational Suite, Tivoli Composite Application Monitor.

Business Challenge: NY State Dept of Taxation and Finance (NYS DTF) processes 11 million personal and 2 million corporate returns annually using aging technology that can’t keep up with the demands of citizens and users. NYS DTF needs systems and tools that are flexible, permit faster change and reduce overall costs.

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Process Choreography and Automation

Runtime for end-to-end SOA-based process automation

Flexible, reliable, scaleable, secure

Integrated ESB for Range and Reach

Seamless access to all available services

Robust Human and System-centric BPM Capabilities:

Human to Human; Human to System; System to System

BPM for the Mainframe

Transform your business from this…

…to this

Process Automation

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Process Automation

BPM for the Mainframe

High powered process engine on a high powered platform

New business user client generation in WebSphere Integration Developer for processes deployed on z/OS

New Adapters for z/OS: e-mail, JDBC, FTP, Flat File, SAP

BPM and SOA governance on the Mainframe through WebSphere Service Registry and Repository

IBM Content Manager with Process Server added content-centric capabilities

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Rules and Pre-built

Frameworks

Industry Content Packs

Business Service Templates to accelerate deployments

Expanded industry coverage for Banking and Telecommunications

Industry Frameworks

Service-Oriented Business Solutions Frameworks

Based on Industry Standards Combination of IBM and Business

Partner Assets

WebSphere Business Services Fabric

National Language Support Alignment with IBM SOA Foundation Additional Standard Operation Environments

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Content Centric Processing

ProcessProcessDev FrameworkDoc RoutingWorkflow

ProcessProcessDev FrameworkDoc RoutingWorkflow

ComplianceComplianceRecords Mgt.

Email Mgt.Discovery

ComplianceComplianceRecords Mgt.

Email Mgt.Discovery

ContentContentImaging/Capture

Doc MgmtWeb Content Mgt.

ContentContentImaging/Capture

Doc MgmtWeb Content Mgt.

Content Centric

Processing

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Q4 2006 3Q 2007 2008

Interoperability• WebSphere & FileNet Processes can invoke each other

Integration•Common Service Registry and Repository•Common Modeling, Monitoring Tool•Enhanced run-time integration

WebSphere & FileNet Roadmap BPM Enhancements

InnovationInvestment Protection

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BPMExpertise

BPM Enabled by SOA Services Enhanced BPM capabilities and services

to address any point in the SOA journey Integrated business solutions to

accelerate deployment of new business processes

Deep industry expertise Consulting methods, tools and reference

materials

BPM Methodology

Comprehensive “How-To” reference guide with services

Covers both the business and IT sides of BPM Six Sigma, Lean, and other methodologies in

combination with BPM software Supports Organizational and Operational

Governance

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Business Process Management

Process Automation

Modeling & Simulation

Content Centric

Processing

Rules and Pre-built

Frameworks

Business Activity

Monitoring

Summary of BPM Announcements

Expanded BAM New Industry Dashboards

WebSphere / FileNet BPM Roadmap

FileNet P8 4.0

Expertise

Enhanced BPM Methodology GBS Offering: “BPM Enabled by SOA”

Standards Based Process Models

Academic Initiative

BPM on Mainframe

Industry Content Packs, Industry Frameworks,

WebSphere Bus Services Fabric

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IBM BPM Enabled by SOAIBM BPM Enabled by SOAFileNet BPMWebSphere BPM

IBM Expands BPM Value Proposition

PeopleSystems Documents

Content Folder Form Images, …

Content Folder Form Images, …

IBM is now the clear market leader in BPM with the most comprehensive set of software capabilities and business expertise

IBM a Leader!(Forrester IC-BPMS

4Q 2006)

IBM a Leader!(Forrester HC-BPM for

Insurance 3Q 2006)

IBM a Leader!(Forrester ECM Wave 2006 – Document Centric BPMS Wave Pending Q2 2007)

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IBM has a complete BPMS

“IBM is the first and so far the only infrastructure software supplier to offer a complete BPMS supporting the end-to-end lifecycle from analytical modeling to performance management and optimization – based entirely on service oriented architecture.”

Bruce Silver, Bruce Silver Associates – The 2006 BPMS Report

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IBM Leads in BPM Enabled by SOA

Technical Leadership

- Breadth of Offerings from Tooling to Runtime; From Dashboards to BAM; Modeling, Simulation, Choreography, Frameworks, and ECM

- All supported by SOA

Market Recognition:-Leader in Gartner BPA MQ-Leader in Forrester Integration, Human, and Content centric BPM WAVES

Vibrant Ecosystem-300+ BPM Business Partners–4000+ pre-builts assets in the SOA Business Catalog

Business Expertise:- BPM Enabled by SOA Readiness Assessment (www.ibm.com/SOA)

- 1000+ consultants trained in BPM Methodology and BPM Enabled by SOA Engagement

- 20 BPM Training and Education classes available