© 2011 IBM Corporation IBM BPM Update Process Improvement Patterns [email protected] Sr. Consulting BPM Solution Architect Open Group Master Certified.

© 2011 IBM Corporation

IBM BPM UpdateProcess Improvement Patterns

[email protected]. Consulting BPM Solution Architect Open Group Master Certified SW IT Specialist

http://IBMBPMDemos.com for more information and resources

Phil Gilbert BPM Worksafe Video Banco VideoPhil Gilbert DM IBMBPMDemos.com


Agenda

The Complexity Challenge– Problem Domain Patterns

BPM Solution Patterns1. Continuous Process Improvement2. Decision Automation & Improvement 3. Combining Capabilities

Visibility and Control

Successful BPM Programs

2


69% are collaborating with customers to deliver better products and services

Capitalize on complexity and Outmaneuver competitors

81% believe innovation is key to getting closer to their customers

70% are focusing on new channels to deliver services to their customers

3

Business leaders must drive growth amidst complexity

Innovation

New Channels

Collaboration

Source: IBM CEO Study, 2010


Flexibility

Low cost/time

BuildBuild

BuyBuy

CustomizedUniqueHigh TCOIT bandwidth Reduced time

Initial CostStandard Feature setReliance on vendorResponse to Change

“Third Way”

++-- +

+---

Process-improvement requirements are likely to be unique, which favors build rather than buy. And the timeframes and costs of both are often not compatible with process improvement, so a ‘third way’ is required.

BPM

Process Improvement Requires A “Third Way”

ExecutiveManagement

CustomerService

InvoiceReconciliationTeams

Finance and Ops

AccountAdministration 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

5

4

6

Typical process problems

5

1

2

3

4

5

6

ExecutiveManagement

CustomerService

Risk ManagementTeams

Financeand Ops

Account Administration 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

BPM brings order to the chaos

1

2

3

4

5

6

6

The essential BPM capabilities

ExecutiveManagement

CustomerService

Risk ManagementTeams

Financeand Ops

Account Administration

• Modeling

• Monitoring

• Automation

• Governance

• Optimization

• Rules

• Information

• Documents

• Events

• Sys Integration

• Collaboration

• Analytics7


8

Customer VideoCustomer Video

8


Budget

Budget spent maintaining existing systems and processes

Budget available for new projects

Incremental Improvements Provide Major Benefits

With Just One Sigma Shift in Process Improvement:

With Just One Sigma Shift in Process Improvement:

Source: Six Sigma:The Breakthrough Management Strategy, Mike Harry, Richard Schroeder, 2000.Source: Six Sigma:The Breakthrough Management Strategy, Mike Harry, Richard Schroeder, 2000.

Time

• 20% margin improvement• 12 - 18% increase in capacity• 10 - 30% capital reduction

• 20% margin improvement• 12 - 18% increase in capacity• 10 - 30% capital reduction

9


Account Opening

Campaign Management

Claims Processing

Vendor On-

boarding

Order Fulfillment

Customer Problem Handling

Process is everywhere

10


Agenda

The Complexity Challenge– Problem Domain Patterns

BPM Solution Patterns1. Continuous Process Improvement2. Decision Automation & Improvement 3. Combining Capabilities

Visibility and Control

Successful BPM Programs

11


Key Technologies for Process Improvement• Business Process Management improves the orchestration of people and systems• Business Rule Management improves the quality of automated decisions • Business Event Processing improves situational awareness and response• Visibility and Analytics enables continuous process improvement

Correlate business events and detect critical business

situations

Orchestrate business processes and human task applications

Automate high-volume operational decisions with business rules

Derive deep understanding of data with analytics


Monitor and report on data to provide real-time insight


data

data

data

data

Event

EventEvent

12


• Business Process Management improves the orchestration of people and systems




data

data

data

data

ApplicationServices and Data


Process is invoked

Solution Pattern 1Continuous Process Improvement

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• Figure it out yourself

• Lock the team in a conference room for day(s)

• Sticky notes

• Butcher paper

• Whiteboard drawings

• Back and forth till you finally understand your process

• Scribe it all down

• Convert it to a diagram/drawing

How is Process Discovery done today?

14


The best way to engage line of business users in process discovery, documentation, and simple process automation

Gain control and insight• Instant dashboards for visibility

• Reporting for improved governance

Anyone can improve a process • Automate work run through email

• Easily document processes

Collaborate for better results• Team up in secure private workspace

• Leverage public expert community

15

Accelerate Change by Improving the Way You WorkStreamline, document, and run processes

bwl sbwl mbw bpm e2eBW Collab


$2.2 million in savings to date

120% ROI in one year

25% increase in employee productivity

50% - 75% reduction in cycle times

Paper overload

100,000+ client requests per month each generating a paper-based process instance

Poor IT-business relationship

Knew paper problem was a process problem but limited IT/Business collaboration prevented improvement

Lincoln Trust achieves rich teaming between business and IT By leveraging IBM BPM

16

Client Pains:

Real Results:

Lincoln Trust developed an aligned process focus across the company, removing physical

paper from 145 company processes


• simple to use• fast time-to-value• deep business engagement

• high performance• excellent integration• superior integrity

17

IBM Business Process Management in 2011:Unifying Two Market-Leading Platforms

17 (F9)(F9)http://www.youtube.com/watch?v=x5aTm7tqXDYhttp://www.youtube.com/watch?v=x5aTm7tqXDY


Shared AssetsVersioned Assets

Server Registry

Process Center

Repository

BPMN Process Rules Monitoring BPEL ESB

Process Server

Out-of-box Process Portal

Optional Microsoft Add-ons

Configurable Business Space Widgets

IBM Business Process Manager V7.5IBM Business Process Manager V7.5

Define

Deploy

Update

Measure

GovernanceGovernanceVisibilityVisibility

End User InterfacesEnd User InterfacesEnd User InterfacesEnd User Interfaces

Process Designer

Integration Designer

Business & IT Authors IT DevelopersAuthors & Administrators

Process OwnersProcess End-Users

Confidential19

The simplest way to get started with BPM

Process Discovery“Modeling for Documentation”

The quickest way to deliver robust process applications

Process Implementation“Modeling for Execution”

http://BlueworksLive.com

IBM Business Process Mgr v7.5

PD Collab

Process Designer OF Optimization

BW Collab

Snap Depl 2

SnapDesignbwl sbwl m

BW>PD S

bw bpm e2eiS1

iS2

Confidential20

BPM Roles-based Development – Rapid, Agile and Iterative

Worker

BPM Developer

Business Analyst

Manager

Administrator

Process ModelerBPM

Shared ModelProcess Center

Process Designer

Process PortalAdmin Console

OptimizeDesign

Execute

Process Inspector

Process Designer

Process Optimizer

Process Portal

Scoreboards

UI Screen Flow Coaches

• Collaborative platform

• Iterative, shortened development cycle

• What you model IS what is executed!

• Single, Shared process model

• Lower technical effort (less time, cost, risk)

• Simplicity with Sophistication(Attractive to BOTH Business and IT)

Integration Developer

Integration Designer

BlueworksLive.com

PD Collab OF BPD XL

OF Full BFSQS BFSBW>PD L

Coach BFS

BD Search

ILOG S ILOG 1

ILOG 2 Process Designer OF OptimizationProcess Portal

ProcRulesEvBW Collab BPM 75 Adv Integration BPM75 a Snap Depl 2

SnapDesignSandboxbwl sbwl m Designer Portal Optimizer

BW>PD S

bw bpm e2eiS1

iS2 WODM

Confidential21

IBM BPM In Action

Simplicity with Sophistication: “Business friendly while IT Savvy”

Power with Integration Middleware

Visibility for Business Stakeholders: Dashboards, reports and more

Governance throughout Design-time and Runtime

PD Collab OF BPD XL

OF Full BFSQS BFSBW>PD L

Coach BFS

BD Search

ILOG S ILOG 1

ILOG 2 Process Designer OF OptimizationProcess Portal

ProcRulesEvBW Collab BPM 75 Adv Integration BPM75 a Snap Depl 2

SnapDesignSandboxbwl sbwl m Designer Portal Optimizer

BW>PD S

bw bpm e2eiS1

iS2 WODM


Solution Pattern 2Decision Automation & Improvement

• Operational Decision Management improves the quality of automated decisions Applications and Processes leverage these decision results

Business Applications and Processes

Automate high-volume operational decisions with business rules



data

data

data

data

Application is invoked



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Where Business Rules Typically Exist

Applications

ProcessesPeople

Documents

Operational Decision Managment

Rules and Events are Defined,

Analyzed and Maintained

User Tools

Decisions are Stored and Shared

Rule Repository

Decisions are

Deployed, Executed

and MonitoredRule Server

Automate Highly Variable Decisions with Precision WebSphere Operational Decision Management

• Eliminate decision silos• Make decision logic

accessible to Business and IT• Implement fine-grained,

context-specific logic

23


Decision Management Implementation Patterns

BRMS

User Tools

Applications & Processes Business Decisions

Transparent Decision Service

Rule Repository

Execution ServerExecution Server

Traditional/Vertical Application

Streamline processes Facilitate change Re-use decision assets Maximize automation Improve governance

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ILOG 2 ProcRulesEv WODM


Introducing WebSphere Operational Decision Management V7.5

Situational Awareness

ContextualDecisions

WebSphere ILOG BRMS

WebSphere Business Events

WebSphere Operational Decision Management

Rules Events

Your business decisions.

Delivered in real-time by technology. Made by your business experts.



26

Rule DesignerEvent Designer

Decision Center Console

Rule Solutions for Office

Decision Center for Business Space

DesignDesignDesign

ManagementManagementManagement


WebSphere Decision Center

Decision ArtifactsVersioning

Access and Control

Repository

RuleExecution

RuleExecution

EventExecution

EventExecution

DecisionMonitoringDecision

Monitoring ConnectorsConnectors

WebSphere Decision Server

Define

Deploy

Update

Measure

Visibility & Visibility & GovernanceGovernance

Rule DesignerEvent Designer

Decision Center Console

Rule Solutions for Office

Decision Center for Business Space

DesignDesignDesign

ManagementManagementManagement


WebSphere Decision Center

Decision ArtifactsVersioning

Access and Control

Repository

RuleExecution

RuleExecution

EventExecution

EventExecution

DecisionMonitoringDecision

Monitoring ConnectorsConnectors

WebSphere Decision Server

Define

Deploy

Update

Measure

Visibility & Visibility & GovernanceGovernance

Business & IT Authors

IT Developers

Authors & Administrators

Business End-Users Business Owners


How Decision Management Works: Customer Acquisition

Call Center

Internet

Agency

Make a personalized offer

Trigger agent call back to assist

Seek clarification

Multi-channel quote requests

RespondRespondDecideDecideDetectDetect

Business Rules: Is customer gaming the system?

Event Pattern: Same vehicle ID with different addresses on phone & Web request:

Event Correlations

Business Rules: Customer good prospect, find best promotion

Event Pattern: Customer requests a series of quotes with increasing deductibles

Event Pattern: 2 web quote requests and 1 direct contact in 3 days

Business Rules: Determine best product

DecisionsDecisionsRulesRulesEventsEvents27



Managing Rules in Microsoft Word and Excel!Managing Rules in Microsoft Word and Excel!

Business Rules Management using Tools Familiar to the Business to Promote Collaboration

ILOG 2


Customer VideoCustomer Video

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• Operational Decision Management improves the quality of automated decisions • Business Process Management improves the orchestration of people and systems






data

data

data

data



Process is invoked

Solution Pattern 3Combining Capabilities

Automate high-volume operational decisions with business rules30


BPM

Operational Decisions

Release 1.0Release 1.0 Release 2.0Release 2.0

Release 1.1Release 1.1 Release 1.2Release 1.2 Release 1.3Release 1.3 Release 2.1Release 2.1

Change in production

Business Decision Owners

Business Decision Owners

Business ProcessOwners

Business ProcessOwners

Release 2.0Release 2.0

Business Process Updates(Months, Years)

Business Decisions Updates(Days, Weeks)

Redefined Life Cycle



BPM delivers increasing business value as adoption progresses

Efficiency

Saved more than $100M with improved efficiencies and higher

levels of customer service

Effectiveness Agility

Cut “engineering” time of designers on car systems

by 20% in one year.

Take time and cost out of the process

Work smarter to deliver higher revenue and profit

Outmaneuver competitors with rapid response to change

Speed to market gains of over 50%

Reduced development time

by 40%

Drives $3.6M in additional revenue and saves $2.7M by integrated sourcing processes

with real-time inventory visibility

Line of Business Personnel Launch Campaigns in

Two Days Instead of Months

Business Value RealizedProject Program Transformation

32


Process ManagementSelected WebSphere BPM to:• Improve operational efficiency & accuracy• Improve process orchestration across multiple

systems and decrease process costs• Deliver end-to-end process visibility

Rules ManagementSelected WebSphere ILOG JRules for:• Straight-through eligibility determinations• Compliance enforcement• Accelerate implementation of decision changes

New Enrollment System Benefits• Time-to-market gains of over 50%• Ability to introduce new policies into systems in

days rather than weeks or months• Reduction in enrollment time and costs• Increased business and IT collaboration• Comprehensive audit trail

Situation• Multiple legacy systems• Highly manual, disjointed processes• Difficulty in adapting systems to

meet new regulatory and customer requirements

Case Study: HealthNowImproved Member Enrollment Processing

“Websphere BPM and ILOG JRules have enabled us to automate, optimize and monitor critical business decisions within our core processes such as member enrollment while delivering tangible benefits.”

33


Can be used for fully automated

interactions, or…

… to provide decision guidance

for personal interactions with

customers

…for decision support in the back-

office, or…

Operational Decision MgmtCombined rules and events capabilities to power flexible decision management solutions

• Major American Utility Company delivers electricity to 2 million customers in a 5,000-square-mile area

• Smart Grid is a top priority:

– Business Events Processing is used for detecting events and event patterns from Smart Meters as they occur

– Business Rules Management increases automation of follow-up decisions on Smart Meter alerts, based on the collective knowledge of operational subject matter experts

Operational Decision Management combines WebSphere Business Events and WebSphere ILOG JRules

• Detect critical events across the business network and automate precise, context-specific decisions

Operational Decision Management combines WebSphere Business Events and WebSphere ILOG JRules

• Detect critical events across the business network and automate precise, context-specific decisions

Automate and Improve High-Volume Operational DecisionsLeveraging Business Rules on Multiple, Complex Events

34


“Complexity should not be viewed as a burden to be

avoided; we see it as a catalyst and an accelerator to create innovation and new ways of

delivering value.”

Juan Ramon Alaix, President,Pfizer Animal Health

Think big

Start small

Scale fast

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Build your roadmap to process improvement

Identify Business

Challenge and Value

Succeed with an Initial

Project

Establish a Program

Bu

sin

ess

Ou

tco

mes

Project Scope

• Undertake an initial process or decision improvement project based on assessed need

• Leverage proven methodologies to implement process and/or decision automation within 90 days.

• Extend automation with greater integration across the enterprise

• Further optimize decisions with situational context from business events

• Provide detailed visibility into running processes with configurable dashboards

• Collaborate with colleagues to understand and document existing processes

• Use as-is process maps and leverage IBM expertise to identify key improvement opportunities

12

3

36


Get started today

Trial IBM Blueworks Live

Consider a Discovery Workshop

Explore a Quick Win Project

Watch Demos at: http://IBMBPMDemos.com

ibm.com/bpm

37

© 2011 IBM Corporation IBM BPM Update Process Improvement Patterns [email protected] Sr. Consulting BPM Solution Architect Open Group Master Certified.

Documents

process discovery

ibm corporationfigure

ibm corporation budgetbudget

line of business users

ibm corporationthe best

inaccurate data flow

orchestration of people

human task applicationsmonitor