a smarter approach to processes and decisions

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A Smarter Approach to Processes and Decisions. Proven patterns for successful process improvement. Bill Hahn BPM Solution Architect IBM Software Group, North America. Mike Huseman WW BPM and Decision Management IBM Software Group. Agenda. The Agility Challenge - PowerPoint PPT Presentation

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  • A Smarter Approach to Processes and DecisionsProven patterns for successful process improvementMike HusemanWW BPM and Decision ManagementIBM Software GroupBill HahnBPM Solution ArchitectIBM Software Group, North America

  • AgendaThe Agility ChallengePatterns for SuccessBusiness Process ManagementDecision Management BPM & DM TogetherProjects to Programs to Transformation

  • *Business Growth & Complexity

  • CEOs Recognize the Challenges and Opportunities as the Business Network Becomes More DynamicIBM Global CEO Survey, Institute for Business Value, 2010In 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 DAscenzo, Commissioner of Taxation, Australian Taxation OfficeThe 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.*

  • Leveraging your knowledge workers can be a huge opportunity Doing More with LessEngagement & Self-Service

  • Transformation and Growth Requires Better Decisions and ProcessesBased on interviews with over 3,000 CIOsof CIOs with mandates to transform the business are looking to drive better internal collaboration processes.of CIOs with mandates to transform the business are looking to drive better real time decisions.Source: IBM Global CIO Study 2011*

  • AgendaThe Agility ChallengePatterns for SuccessBusiness Process ManagementDecision Management BPM & DM TogetherProjects to Programs to Transformation

  • Account OpeningCampaign ManagementRegulatory ComplianceVendor On-boardingOrder FulfillmentCustomer Problem HandlingProcess is everywhere *Solution Pattern 1: Business Process Management

  • ExecutiveManagementCustomerServiceInvoiceReconciliationTeamsFinance and OpsAccountAdministrationUnstructured Tasks and Communication (ex Paper or email)Inefficient Working Environment Spans SystemsInconsistent PrioritizationIncomplete or Inaccurate Data Flow Between SystemsLack of Control Over System and Business Events (Exceptions)Poor Visibility Into Process Performance

    Typical process problems*123456

  • ExecutiveManagementCustomerServiceRisk Management TeamsFinanceand OpsAccount AdministrationAutomate workflow & decision makingReduce errors and improve consistencyStandardize resolution across geographiesLeverage existing systems and dataMonitor for business events and initiate actionsReal-time visibility and process control

    Business Benefits:Huge Reduction in Manual Work, ErrorsFaster, More Consistent Issue ResolutionEasier to Manage the BusinessConsistent Case HandlingBPM brings order to the chaos123456*

  • BPM Leverages a Service Oriented Architecture (SOA)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.

    Users of the process are not affected as services and systems are merged, replaced, or updated.

    SOA

  • *Customer Video*

  • Process Improvement Requires A Third WayFlexibilityLow cost/timeBuildBuyCustomizedUniqueHigh TCOIT bandwidth

    Reduced timeInitial 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.

  • Figure it out yourselfLock the team in a conference room for day(s)Sticky notesWhiteboard drawingsBack and forth till you finally understand your processScribe it all downConvert it to a diagram/drawingLets Start With Process Discovery and how is it done today?*

  • The best way to engage line of business users in process discovery, documentation, and simple process automationGain control and insightInstant dashboards for visibilityReporting for improved governance Anyone can improve a process Automate work run through email Easily document processesCollaborate for better resultsTeam up in secure private workspaceLeverage public expert community*Accelerate Change by Improving the Way You WorkStreamline, document, and run processes

  • Increasing Transparency through DocumentationDocument and provide standard process across 8 regional officesSimple processes from travel requests to complex processes like new traffic control tower setupCentralizing and Standardizing ProcessesDocument and standardize processes across 14 domestic and 5 international call centersAble to centralize core workforce management functions due to large part of standardized processIncorporating Broad ParticipationExternal business areas view and maintain their own processes within a centralized repositoryReduced resources to manage and administer process repository from 14 to 2Reduced change requests from 8 weeks to 2 minutesGovernment AgencyWorldwide OutsourcerGlobal InsurerLowering Barriers to Collaboration creates Value*

  • Enable faster business-led changePower to scale with transactional integrityGovernance to manage change confidentlyChange is inevitable. Adapt accordingly.Embrace complexity, adapt quickly and exceed expectationsSimplicity for deep business user engagementVisibility to empower business users to optimize processes*

  • *Shared AssetsVersioned AssetsServer RegistryProcess CenterRepositoryProcess DesignerIntegration DesignerProcess Center ConsoleOut-of-box Process PortalOptional Microsoft Add-onsConfigurable Business Space WidgetsIBM Business Process ManagerDefineDeployUpdateMeasureGovernanceVisibilityManagementEnd User InterfacesDesignIBM Business Process Manager

  • IBM Business Process Manager Leverages SOA InfrastructureSOA

    IBM Business Process Manager Advanced Edition

  • Individual ProcessesProcess Complexity22.5%75.0%2.5%The Full Spectrum of BPM can be addressed IBMBusiness Process ManagerIBM Blueworks Live*

  • Paper overload100,000+ client requests per month each generating a paper-based process instanceClient complaints due to lost documentsPoor IT-business relationshipPaper problem was understood but limited IT/Business collaboration prevented improvement*Business Challenges at Lincoln Trust CompanyLeading independent provider of trust and custodial services

  • Joint LOB-IT executive steering committee and a small BPM team developed a 2-part strategy for process improvement:Common shared process for document imaging and automation using content management tools Removed physical paper from 145 company processesBusiness teams created as-is and to-be process models using IBM BPM Blueworks IT teams implemented automated workflows for 15 processes including service requests, plan establishment, and distributionsQuickly address key pain point Business-led automation for full business processes12*Partnering for Process ImprovementLincoln Trust developed an aligned process focus across the company

  • Results$2.2 million in savings to date120% ROI in one year 25% increase in employee productivity 50% - 75% reduction in cycle times90% reduction in customer complaintsBest PracticesBuild a partnership between business and ITFocus on business value be willing to trade-off for an initial projectInclude process analysis skills on BPM teams, but dont over-analyze*Process Improvement Benefits at Lincoln Trust

  • *IBM Business Process Manager V7.5 Demo

  • Operational Decision ManagementAnalytical Decision ManagementBusiness Processes, Applications & SolutionsDecisionServicesBusinessRules & EventsPredictive Analytics & OptimizationInternal & External DataPolicyRegulationBest PracticesKnow-howRiskClusteringSegmentationPropensityScenario Analysis& SimulationDecision Management is a business discipline that enables organizations to automate, optimize and govern repeatable business decisions.Solution Pattern 2: Decision Management *

  • How Decision Management Works: Customer AcquisitionCall CenterInternetAgencyMake a personalized offerTrigger agent call back to assistSeek clarificationMulti-channel quote requestsRespondDecideDetectEvent CorrelationsDecisionsRulesEvents*

  • Decision Management SolutionDeployed 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 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

    Verizon Wireless increased customer service And achieved business agility

  • WebSphere Operational Decision Management Situational AwarenessContextualDecisionsBusiness RulesReal-time BEP (CEP)WebSphere Operational Decision Management 7.5 highlightsThe 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 logicThe most powerful governance and management functionality (e.g. versioning and history, role-based security, team collaboration, multiple concurrent release management)WebSphere Operational Decision Management v7.5Combined business rules and business events management platform

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