IBM Business Process Management
Overview and Demonstration of IBM BPM In Action!
Bill.Hahn@us.ibm.com
Sr. Consulting BPM Solution Architect
Open Group Master Certified SW IT Specialist
Goto > http://IBMBPMDemos.com for more information and resources
http://BlueworksLive.com
The simplest way to get started
with BPM
The quickest way to deliver
robust process applications
Process Discovery
“Modeling for Documentation”
Process Implementation
“Modeling for Execution”
Business Process Inefficiencies Represent $500B+ Opportunity
Fortune 500 Companies:
$488B Lost in Process Inefficiencies
Source:
Tech CEO Council Report Oct 2010: “BPM improvements can be expected to yield savings of up to 5% of sales”;
CNN Money U.S. Fortune 500 Revenues, May 2010
Federal Government:
$450B - $1.3T in Process Inefficiency Costs
Source:
McKinsey & Company The Case for Government Reform 2009, “5 to 15% improvement in efficiency of Federal
government operations could generate $450B-$1.3T in savings.” Tech CEO Council Report Oct 2010.
In a recent InformationWeek CIO
survey, Process Improvement was
the #1 priority for CIOs (56% of
respondents): “Make business
processes more efficient” was the
top issue for respondents, even
ahead of “Lower business costs”
and “Improve customer service”.
Process Improvement is the #1
Priority for CIOs - 5 years in a row
Gartner, Inc, “Leading in Times of
Transition: The 2011 CIO Agenda”
Source: Sept 2010 Information Week 500 Survey
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The New Normal: Change, Complexity, Uncertainty
$488 billion
$534 billion
Lost in process inefficiencies
in Fortune 500 companies
85%
In mobile
transactions by 2015
50%
Of enterprises use
external cloud services
Of businesses plan to adopt more
collaborative sourcing models
70%
Of businesses outsource one
or more strategic activities
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50 billion
Devices connected to
the Internet by 2020
Complexity exists within organizations and the broader business network
Companies need end-to-end process management
To orchestrate human tasks…
… to increase visibility…
Partners &
Re-insurers
Agents &
Producers
Insurance
Carrier
Internal
Employees
Consumers
Auto
LOB
Commercial
LOB
Consumers
Home
LOB
Financial
Institutions
Outsourced
Service
Providers
… to manage exceptions and cases…
DMV
3rd Party
Services
… and for scalable transactions…
… everything you need to manage end-to-end business networks
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What is 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
Documentation &
Compliance
Deployment &
Execution
Software
Expertise
Continuous
Process
Improvement
Analysis & Optimization
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Visibility & Collaboration
Business User Engagement
Efficiency & Productivity
Business Process Management (BPM)
Save $Millions
With just One Sigma Shift
in Process Improvement:
Budget
available for
new projects
•
•
•
•
Budget
Budget spent
maintaining
existing systems
and processes
20% margin improvement
12 - 18% increase in capacity
12% reduction in employees
10 - 30% capital reduction
Time
Source: Six Sigma:The Breakthrough Management Strategy, Mike Harry, Richard Schroeder, 2000.
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Typical Business-Driven Process Problems
Common symptoms that BPM is needed
‣ Human to Human and Human to System process activities
‣ Individual or group heroics make the process work
‣ Operational “fire” or fire drills are a common occurrence
‣ Poorly understood end-to-end process metrics
‣ One Sigma quality .. a 32% error rate
(Small changes can yield large improvements)
‣ Process Changes 3+ times per year
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The Value of Business Driven Change
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Efficiency
Effectiveness
Agility
•Eliminating up to 80% of
the “human touches” in
Invoice Reconciliation
•Built supplier on-boarding system
for 40% less than code based
alternative in 66% of the time
•Identified issues in their lending
process, eliminated bottlenecks and
identified waste while adjusting to
2008-2011 economic turmoil
•Standardized Mall Branch
•office processes and made
•tasks easier for staff.
•Saves $2M per quarter
by resolving Distressed
Shipments more effectively
•Implemented Full Audit Trail for
Compliance in their Grants Process
– 1st major Pharma to be compliant
•Reduced time to
•document and comply
•with NERC regulations
Cut “engineering” time
of designers on car systems
by 20% in one year.
•End Cap Product Display
Management, optimization and
delays identified months in advance
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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. - Analyst Community Consensus
“Third
Way”
BPM
Build
Flexibility
+ Customized
+ Unique
- High TCO
- IT bandwidth
Buy
+
+
-
Reduced time
Initial Cost
Standard Feature set
Reliance on vendor
Response to Change
Low cost/time
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Typical process problems
Customer
Service
Account
Administration
Finance
and Ops
Executive 6
Management
1
1 Unstructured Tasks and
1.
Communication (ex
Paper or email)
2 Inefficient Working
2.
Environment Spans
Systems
3
3 Inconsistent
3.
Prioritization
Invoice
Reconciliation
Teams
4 Incomplete or
4.
Inaccurate Data Flow
Between Systems
2
5 Lack of Control Over
5.
System and Business
Events (Exceptions)
4
6 Poor Visibility Into
6.
Process Performance
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BPM brings order to the chaos
Finance
and Ops
Account
Administration
Invoice
Reconciliation
Team
Customer
Service
Executive
Management
1.
1
Automate workflow &
decision making
2.
2
Reduce errors and
improve consistency
3.
3
Standardize resolution
across geographies
4.
4
Leverage existing
systems and data
5
5.
Monitor for business
events and initiate
actions
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6.
Real-time visibility and
process control
Customer Benefits:
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•
Huge Reduction in
Manual Work, Errors
•
Faster, More Consistent
Issue Resolution
•
Metrics, measurements,
visibility and businessfriendly reports
•
Rapid, Agile and
Iterative process
improvements
The essential BPM capabilities
• Modeling
Customer
Service
Finance
and Ops
Executive
Management
• Monitoring
• Automation
Account
Administration
Risk Management
Teams
• Governance
• Optimization
• Rules
• Business Data
• Documents
• Events
• Integration
• Collaboration
• Analytics
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BPM Roles-based Development – Rapid, Agile and Iterative
Process Portal
Process Portal
Admin Console
UI Screen
Flow Coaches
Manager
Worker
Scoreboards
Process Designer
Execute
Administrator
• Collaborative platform
• Iterative, shortened development cycle
BlueworksLive.com
• What you model IS what is executed!
Process Modeler
Design
Process Designer
BPM
Shared Model
Process
Center
• Single, Shared process model
• Lower technical effort (less time, cost, risk)
Optimize
• Simplicity with Sophistication
(Attractive to BOTH Business and IT)
BPM Developer
Process Inspector
Process Optimizer
Integration
Designer
Business
Analyst
Integration
Developer
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IBM Business Process Mgr v7.5
http://BlueworksLive.com
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The simplest way to get started
with BPM
The quickest way to deliver
robust process applications
Process Discovery
“Modeling for Documentation”
Process Implementation
“Modeling for Execution”
Confidential
IBM Business Process Mgr v7.5
http://BlueworksLive.com
The quickest way to
deliver robust process
applications
The simplest way to get
started with BPM
Process Discovery
“Modeling for Documentation”
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Process Implementation
“Modeling for Execution”
How is Process Discovery done today?
‣ 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
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Easy for novices, rich
enough for experts
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Single repository,
built for process
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Focused on
participation
BlueworkLive.com  Simple Enough for Novices…Rich Enough for Experts
“Process Discovery…Blueprint your process”
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IBM Business Process Mgr v7.5
http://BlueworksLive.com
The quickest way to
deliver robust process
applications
The simplest way to get
started with BPM
Process Discovery
“Modeling for Documentation”
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Process Implementation
“Modeling for Execution”
IBM Business Process Manager
IBM Business Process Manager
Management
Process Center
Shared Assets
Versioned Assets
Server Registry
Process Center
Console
Repository
Design
Define
Deploy
Update
Governance
Visibility
Measure
Process
Designer
Process Server
BPMN
Out-of-box
Process Portal
Process
Rules
Monitoring
BPEL
Configurable
Business Space Widgets
End User Interfaces
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ESB
Optional
Microsoft Add-ons
Integration
Designer
BPM in the IBM SmartCloud
Rapid, Agile Infrastructure – Spin up BPM in ~10min
‣ Gain the simplicity, visibility, governance and power
of the most comprehensive BPM platform without
sacrificing capital and resource budgets
‣ Kick off that ever important initial BPM project within
minutes versus weeks by turning to the IBM
Smart Cloud Enterprise
‣ Leave the scalability and security of your
infrastructure up to IBM while maintaining control
over the service level agreement required by your
business
‣ Bring your own licenses or pay as you go, you
can now take resource constraints out of the project
to program roadmap and you can focus on
delivering business value
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Cloud 1
Cloud 2
IBM Business Process Manager - Built on SOA Infrastructure
Finance
& Ops
Invoice
Reconciliation
Teams
Customer
Service
Executive
Management
Account
Administration
IBM Business
Process Manager
BPM
– BPM can abstract the “business
process” from underlying
systems and services.
SOA
– Over time, IT can consolidate
those services into a common
set of services within one SOA
layer.
– Users of the process are not
affected as services and systems
are merged, replaced, or updated.
Systems
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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
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IBM is the proven leader in all aspects of BPM
Largest Customer Base
• #1 in Market Share
• 5,000 + customers
Strongest Ecosystem
• 1000+ business
partners
• Global Users group
Unparalleled expertise, and
level of investment
• Over 15 years of industry
leadership
• 100’s of assets
• Broadest, Deepest solution
portfolio & services
Broadest and Most Differentiated Software Capabilities
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• Simplicity for fast deployment and full business user participation
• Centralized governance for repeatability and consistency
• Visibility and Control to continuously improve business operations
• Power through High Scalability, Integrity & Quality of Service
• Market Leading decision and rules capabilities
• Best in class exceptions handling and case management
Ensure success with a proven approach for adopting BPM
Technology
Visibility
Rapid time
to value
Expertise
Project
Training
Turnkey
Services
Program
Simplicity to engage
business users
Solution
Mentoring
Governance
Transformation
Power to scale
as business requires
On-Demand Consulting Assistance
Maturity Challenges
Establish a
Program
Identify Business
Challenge & Value
 Understand and document
existing processes
 Identify key improvement
opportunities
Succeed with an
Initial Project
 Target high return
projects
 Leverage proven
methodologies to
ensure success
 Increase skills
 Establish CoE
 Optimize
established projects
 Extend to new projects
Transform across
the enterprise
 Infuse a culture of
process across the
organization
Realize fast value, foster BPM adoption and create transformational impact
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Links to Your Next Steps…
IBM BPM Delivery Capabilities
Including Education and Enablement Services
http://BlueworksLive.com
http://IBMBPMDemos.com
BPM Process Discovery & Modeling in the Cloud
• Blueprint Process Modeling for inventory & mapping
• Knowledge sharing & collaboration
• Process analysis & prioritization
BPM Process Modeling & Implementation
• Rapid process application development
• Continuous process improvement
• BPM program management
Education, Enablement and on-demand Services
• Quick Win Pilots
• Role-based education & mentoring
• Expert Services when and where they’re needed
http://www.ibm.com/developerworks/
websphere/services/
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