A Smarter Approach to
Processes and Decisions
Proven patterns for successful process improvement
Mike Huseman
WW BPM and Decision Management
IBM Software Group
Bill Hahn
BPM Solution Architect
IBM Software Group, North America
Agenda
 The Agility Challenge
 Patterns for Success
1.
2.
3.
Business Process Management
Decision Management
BPM & DM Together
 Projects to Programs to
Transformation
Business Growth & Complexity
3
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.
4
IBM Global CEO Survey, Institute for Business Value, 2010
Doing More with Less…
Developers
Rest of IT
Engagement & Self-Service
Business Participants
240x
Leveraging your
knowledge workers
can be a huge opportunity
Agenda
The Agility Challenge
Patterns for Success
1. Business Process Management
2. Decision Management
3. BPM & DM Together
Projects to Programs to Transformation
Solution Pattern 1: Business Process Management
Campaign
Management
Account
Opening
Vendor Onboarding
Regulatory
Compliance
Order
Fulfillment
Customer
Problem Handling
Process is everywhere
8
Typical process problems
Customer
Service
Account
Administration
Finance
and Ops
1
1.
Unstructured Tasks and
Communication (ex
Paper or email)
2
2.
Inefficient Working
Environment Spans
Systems
3
3.
Inconsistent
Prioritization
4
4.
Incomplete or
Inaccurate Data Flow
Between Systems
5
5.
Lack of Control Over
System and Business
Events (Exceptions)
6
6.
Poor Visibility Into
Process Performance
Executive 6
Management
1
3
Invoice
Reconciliation
Teams
2
4
5
9
BPM brings order to the chaos
Finance
and Ops
Executive
Management
Account
Administration
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
6
6.
Real-time visibility
and process control
Risk Management
Teams
Customer
Service
Business Benefits:
10
•
Huge Reduction in
Manual Work, Errors
•
Faster, More
Consistent Issue
Resolution
•
Easier to Manage the
Business
•
Consistent Case
Handling
BPM Leverages a Service Oriented Architecture (SOA)
Finance
& Ops
Invoice
Reconciliation
Teams
Customer
Service
BPM
Executive
Management
Account
Administration
– BPM can abstract the
“business process”
from underlying
systems and services.
– Over time, IT can
consolidate those
services into a
common set of
services within one
SOA layer.
SOA
Systems
– Users of the process
are not affected as
services and systems
are merged, replaced,
or updated.
1
2
Customer Video
12
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
Reduced time
Initial Cost
Standard Feature set
Reliance on vendor
Response to Change
Let’s Start With Process Discovery
and how is it 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
14
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
15
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
16
• 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
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
Now available
in the Cloud
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
18
BPEL
ESB
Optional
Microsoft Add-ons
Integration
Designer
IBM Business Process Manager Leverages SOA Infrastructure
Finance
& Ops
Invoice
Reconciliation
Teams
Customer
Service
Executive
Management
Account
Administration
•
BPM
SOA
Systems
IBM Business
Process Manager
Advanced Edition
The Full Spectrum of BPM can be addressed
Process Complexity
IBM
Business
Process
Manager
IBM Blueworks Live
Individual Processes
2.5%
22.5%
75.0%
20
Highly complex processes typically found in global enterprises
Somewhat complex processes common to global & mid-market companies
Simple processes common to all sizes of businesses
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
21
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
22
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
23
IBM Business Process Manager V7.5 Demo
24
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
25




Risk
Clustering
Segmentation
Propensity
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
26
Trigger agent
call back to assist
Rules
Decisions
Verizon Wireless increased customer service
And achieved business agility
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
Decision Management
Solution
Deployed a BRMS to automate
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
WebSphere Operational Decision Management v7.5
Combined business rules and business events management platform
Business
Rules
Real-time BEP
(CEP)
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)
28
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
29
 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
 Contains all the
technical
capabilities:
runtimes for
business rules and
events, execution
mgmt, integration
connectors,
developer tooling
Leverages Tools Familiar to the Business to
Promote Collaboration
Managing Decisions in Microsoft Word and Excel!
Customer Video
31
WorkSafe Victoria Improves Operational Efficiency
Client Pains
 Australian state social service agency dedicated to employee
worker safety and compensation
 Ensure timely workplace claims processing for citizens
 Identified a specific project that would benefit from automated
workflows and decision points
Business Outcomes
 Improved efficiencies, higher levels of customer service and
worker safety
 Significant improvement in fraud detection
 Estimated payback of 6 months
 Save more than $100 million dollars
Delivering outstanding workplace safety together with quality
insurance protection to workers and employers
Process automation and business rules software to increase
efficiencies and cut costs while helping Victorian workers
return home safe every day
32
Rules & Events Demo
33
Agenda
The Agility Challenge
Patterns for Success
1. Business Process Management
2. Decision Management
3. BPM & DM Together
Projects to Programs to Transformation
Solution Pattern 3: Combining BPM and Decision Management
Distinct technologies but Complementary Solutions
Operational Decision Management
Process Management
•
•
•
Defines and orchestrates the end-to-end
process
Combines automatable and human elements
Is fundamentally concerned with operational
efficiency of the organization
• 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
How they collaborate….
Starts
Notifies
Invokes
Responds
35
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Process and Decision Life-Cycles can be
Managed Independently
April
36
May
June
July
August
September
October
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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