Take a Smarter
Approach to Processes
and Decisions
Proven patterns for successful process
improvement
Pablo Irassar
Director, BPM Development
IBM Software Group
Agenda
The Agility Challenge
Patterns for Success
1. Business Process Management
2. Decision Management
3. BPM & DM Together
Agility in Action
CEOs Recognize the Challenges and Opportunities as the
Business Network Becomes More Dynamic
“In these uncertain times, effective and swift
decision making is more important than ever.”
Shuzo Sumi, President and CEO
Tokio Marine Holdings, Inc.
“Our products need to
anticipate need, rather than
respond to a request.”
Michael D’Ascenzo, Commissioner of
Taxation, Australian Taxation Office
“The complexity over the next five years is off the
charts – a 100 on your scale from 1 to 5”
Edward Lonergan, President and CEO
Diversey, Inc.
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IBM Global CEO Survey, Institute for Business Value, 2010
Transformation and Growth Require Better Decisions
and Processes
Based on interviews with over 3,000 CIOs
95%
of CIOs with mandates to
transform the business are
looking to “drive better
real time decisions.”
of CIOs with mandates to
transform the business are
looking to “drive better
99% internal collaboration
processes.”
Source: IBM Global CIO Study 2011
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Process Improvement Requires A “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.
“Third
Way”
BPM
Build
Flexibility
+
+
-
Customized
Unique
High TCO
IT bandwidth
Buy
Low cost/time
5
+
+
-
Reduced time
Initial Cost
Standard Feature set
Reliance on vendor
Response to Change
Agenda
The Agility Challenge
Patterns for Success
1. Business Process Management
2. Decision Management
3. BPM & DM Together
Agility in Action
Key Technologies for Process Improvement
Business Process
Management
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• improves the orchestration of people and
systems
Decision Management
• improves situational awareness and the quality
of decisions
Visibility and Analytics
• improves situational awareness and the quality
of decisions
Solution Pattern 1: Business Process Management
Through robust and flexible software capabilities and industry expertise, BPM enables
customers to discover, model, execute, rapidly change, govern, and gain end-to-end
visibility on their business processes
Achieve better business outcomes with BPM
BPM capabilities enable:
 Visibility
 Productivity
 Collaboration
 Efficiency
 Business User
Engagement
 Faster response
to change
 Governance
8
BPM delivers business value:
How is Process Discovery done today?
• Figure it out yourself
• Lock the team in a conference
room for day(s)
• Sticky notes
• Whiteboard drawings
• Back and forth till you finally
understand your process
• Scribe it all down
• Convert it to a diagram/drawing
9
Accelerate Change by Improving the Way You Work
Streamline, document, and run processes
Anyone can improve a process
• Automate work run through email
• Easily document processes
Gain control and insight
• Instant dashboards for visibility
• Reporting for improved governance
Collaborate for better results
• Team up in secure private workspace
• Leverage public expert community
The best way to engage line of business
users in process discovery, documentation,
and simple process automation
10
Lowering Barriers to Collaboration creates Value
‣ Increasing Transparency through
Documentation
Government Agency
• Document and provide standard process across 8
regional offices
• Simple processes from travel requests to complex
processes like new traffic control tower setup
‣ Centralizing and Standardizing Processes
• Document and standardize processes across 14
domestic and 5 international call centers
• Able to centralize core workforce management
functions due to large part of standardized process
Worldwide Outsourcer
‣ Incorporating Broad Participation
Global Insurer
11
• External business areas view and maintain their own
processes within a centralized repository
• Reduced resources to manage and administer process
repository from 14 to 2
• Reduced change requests from 8 weeks to 2 minutes
Blueworks Live Demo
12
Change is inevitable. Adapt accordingly.
Embrace complexity, adapt quickly and exceed expectations
Simplicity for deep business
user engagement
Power to scale with
transactional integrity
Governance to manage
Enable faster business-led
change
change confidently
Visibility to empower
business users to optimize
processes
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IBM Business Process Manager
IBM Business Process Manager
Management
Process Center
Shared Assets
Versioned Assets
Server Registry
Process Center
Console
Repository
Design
Define
Deploy
Governance
Visibility
Update
Measure
Process
Designer
Process Server
BPMN
Out-of-box
Process Portal
Process
Rules
Monitoring
Configurable
Business Space Widgets
End User Interfaces
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BPEL
ESB
Optional
Microsoft Add-ons
Integration
Designer
Business Challenges at Lincoln Trust Company
Leading independent provider of trust and custodial services
Paper overload
• 100,000+ client requests per
month each generating a paperbased process instance
• Client complaints due to lost
documents
Poor IT-business relationship
• Paper problem was understood
but limited IT/Business
collaboration prevented
improvement
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Partnering for Process Improvement
Lincoln Trust developed an aligned process focus across the company
Joint LOB-IT executive steering committee and a small BPM team
developed a 2-part strategy for process improvement:
1
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Quickly address
key pain point
2
Business-led automation
for full business processes
• Common “shared process” for
document imaging and automation
using content management tools
• Business teams created “as-is” and
“to-be” process models using
IBM BPM Blueworks
• Removed physical paper from
145 company processes
• IT teams implemented automated
workflows for 15 processes including
service requests, plan establishment,
and distributions
Process Improvement Benefits at Lincoln Trust
Best Practices
Results
• Build a partnership between
business and IT
• $2.2 million in savings to date
• Focus on business value –
be willing to trade-off for an
initial project
• Include process analysis skills
on BPM teams, but don’t
over-analyze
• 120% ROI in one year
• 25% increase in employee
productivity
• 50% - 75% reduction in cycle
times
• 90% reduction in customer
complaints
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Why Better Processes are Critical to Success
Automated and streamlined processes help drive greater productivity and
faster response to change
Automate and streamline tasks to increase
productivity
Eliminate manual entry and redundancies to drive
down costs
Visibility and control to
achieve better business
outcomes
“ Our business process transformation has differentiated Lincoln Trust in the marketplace. Through automation and
process simplification, we’ve leapfrogged larger competitors in terms of our superior ability to on-board and
service customers.”
—Helen Z. Cousins, executive vice president and CIO, Lincoln Trust Company
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IBM Business Process Manager Demo
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Solution Pattern 2: Decision Management
Decision Management is a business discipline that enables
organizations to automate, optimize and govern repeatable
business decisions.
Business Processes, Applications & Solutions
Decision
Services
Operational Decision Management




Policy
Regulation
Best Practices
Know-how
Analytical Decision Management
Business
Rules & Events
Predictive Analytics
& Optimization
Scenario Analysis
& Simulation
Internal & External Data
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



Risk
Clustering
Segmentation
Propensity
WebSphere Operational Decision Management v7.5
Combined business rules and business events management platform
WebSphere
ILOG BRMS
WebSphere
Business Events
Situational
Awareness
Contextual
Decisions
WebSphere Operational
Decision Management
WebSphere Operational Decision Management 7.5 highlights
 The most complete platform for building decision management solutions that can
use both event-based and knowledge-based decision logic
 The most extensive capabilities for LOB subject matter experts to directly participate
in the definition and maintenance of decision logic
 The most powerful governance and management functionality (e.g. versioning and
history, role-based security, team collaboration, multiple concurrent release management)
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WebSphere Operational Decision Management
Products/Components
WebSphere Operational Decision Management
Management
Management
WebSphere Decision Center
Decision Artifacts
Versioning
Access and Control
Decision Center
Console
Repository
Define
Rule Solutions
for Office
Update
Visibility &
Governance
Deploy
Decision Center
for Business Space
Design
Design
Event
Event
Execution
Execution
Decision
Decision
Monitoring
Monitoring
Connectors
Connectors
Rule Designer
Event Designer
Both Decision Center and Decision Server include WAS ND + DB2 WSE
entitlements (supporting program limited use)
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 Contains all the
business user
capabilities:
repository, web
environment, test
and validation,
Business Space
components, Rule
Solutions for Office
Decision Server
Measure
WebSphere Decision Server
Rule
Rule
Execution
Execution
Decision Center
Simplified product structure vs. previous business offerings
 Contains all the
technical
capabilities:
runtimes for
business rules and
events, execution
mgmt, integration
connectors,
developer tooling
How Decision Management Works: Customer Acquisition
Detect
Decide
Respond
Multi-channel
quote requests
Event Pattern: Customer requests
a series of quotes with increasing
deductibles
Business Rules: Customer good
prospect, find best promotion
Make a
personalized offer
Internet
Event Pattern: 2 web quote
requests and 1 direct contact in 3
days
Business Rules: Determine best
product
Call Center
Event
Correlations
Event Pattern: Same vehicle ID
with different addresses on phone
& Web request:
Seek clarification
Business Rules: Is customer
gaming the system?
Agency
Events
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Trigger agent
call back to assist
Rules
Decisions
Benefits of WebSphere Operational Decision Management
Automating repeatable decisions for use across processes & applications
 Business experts are directly
involved in their required solutions
 Reduce turnaround time for
business changes
 Ensure changes meet business
requirements
Business User Empowerment
Enable business experts to author, improve and
maintain decision logic in partnership with IT
Decision Externalization
Separate decisions from processes and
applications to simplify visibility and reuse
 Improve visibility for the
business
 Increase consistency of
application of corporate policies
and best practices
 Increase flexibility at lower cost
 Make decision making
more precise and informed
 Increase revenue and
reduce risk through more
timely detection and
response
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Real-time Decision Automation
Execute real-time decisions precisely and reliably
based on the context of specific interactions
Solution Pattern 3: Combining BPM and Decision Management
Distinct technologies but Complementary Solutions
Process Management
Operational Decision Management
•
• Defines and executes specific decision points in
processes and applications
• Is focused on automating and improving
decisions
• Is fundamentally concerned with the operational
intelligence of the organization
•
•
Defines and orchestrates the end-to-end
process
Combines automatable and human
elements
Is fundamentally concerned with
operational efficiency of the organization
How they collaborate….
Starts
Notifies
Invokes
Responds
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Combining BPM and Decision Management Increases Agility
500$ in
USA
3 ATM withdraws in
the same day from
different countries
300€ in
France
200Y in
Japan
Classify risk based on
locations and amounts
Initiate a credit card
fraud management
process
The best combination to support When / What / How kind of decisions from immediate
to very long term ones
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Process and Decision Life-Cycles can be
Managed Independently
April
27
May
June
July
August
September
October
Value of Combining BPM and Decision Management
Increased Process and Decision Automation
Automate processes and decisions & streamline exceptions
Reuse of process and decision services
Enhanced Business Interactions
LOB are more involved in the processes
Transparency on how decisions are made in the processes
IT and LOB collaboration
Reduced Cycle Times
Streamlined processes for faster execution
Decisions are managed in a shorten life cycle
Change once, impact everywhere
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Enabling Agile Processes & Applications
Aligned Product Architectures Improves Collaboration
IBM Business Process Manager
WebSphere Operational
Decision Management
Process Center
Decision Center
Process Server
Decision Server
Unified management of all BPM components
Unified management of business rules & events
Work together to deliver effective solutions for business
operation improvement
Rules & Events Demo
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Agenda
The Agility Challenge
Patterns for Success
1. Business Process Management
2. Decision Management
3. BPM & DM Together
Agility in Action
IF Insurance Streamlines Claims Process
Increases productivity and responsiveness with BPM and BRMS
Challenge:
 Claims process was too long, resulting in lost
productivity and poor customer satisfaction
 Increase efficiency by streamlining claims processes
Benefits:
 Decreased the cost of claims
 Increased of customer satisfaction through faster
turnaround
 Substantial savings of employee work
 3 out of 5 private claims are settled in the same
day they are received!
BPM and Decision Management
Solution
 The automated claims processes
are expected to increase revenue
by between SEK85 million and
SEK100 million each year.
 More responsive to business and
market changes, improving
internal communication and
productivity.
The SOA approach will enable it to reduce time to market for new
processes and realize an easy migration to other base systems.
Verizon Wireless increased customer service
And achieved business agility with BPM and BRMS
Challenge:
 The nation's most reliable and largest wireless voice
and 3G data network, serving more than 93 million
customers
 Needed to increase self service, improve customer
experience and be quickly adapt to meet pressures of
the market
Benefits:
 Keep invalid orders off the system
 Shorten fulfillment cycle
BPM and Decision
Management Solution
 Deployed a BPM and BRMS
automates its order system,
eliminates invalid orders,
shortens the fulfillment cycle,
while saving the company
manpower costs and reduces
operational costs to comply
with regulatory changes
 Human resource savings
 Reduced operational costs to comply with
regulatory changes
Verizon Wireless used the WebSphere ILOG JRules business rule management
system (BRMS) to automate its order validation process. The JRules BRMS
automates the verification of incoming orders and diagnoses errors. Verizon
has been able to reduce invalid orders out of its systems, reduce operational
costs and shorten fulfillment cycle time
Customer Video
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Why IBM for BPM and decision management?
Unparalleled Expertise and Investment
 Expert consulting and implementation services for fast realization of
business value
 Industry expertise to customize solutions for your specific industry
Largest Customer Base
 #1 in Business Rule Management Systems (BRMS) market share
according to all leading analysts
 #1 in Business Process Management (BPM) market share according
to all leading analysts
Strongest Ecosystem and Partner Network
 800+ Business Partners authorized and certified to support customers
 Strongest global ecosystem including major global and regional
system integrators skilled to provide comprehensive solutions
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