A Smarter Approach to Processes and Decisions
Proven patterns for successful process improvement
Mike HusemanWW BPM and Decision ManagementIBM Software Group
Mike HusemanWW BPM and Decision ManagementIBM Software Group
Bill HahnBPM Solution ArchitectIBM Software Group, North America
Bill HahnBPM Solution ArchitectIBM Software Group, North America
Agenda
The Agility Challenge Patterns for Success
1. Business Process Management
2. Decision Management
3. BPM & DM Together
Projects to Programs to Transformation
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Business Growth & Complexity
CEOs Recognize the Challenges and Opportunities as the Business Network Becomes More Dynamic
IBM Global CEO Survey, Institute for Business Value, 2010
“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 CEODiversey, Inc.
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Developers Rest of IT
Leveraging yourknowledge workers
can be a huge opportunity
240x
Business Participants
Doing More with Less…Engagement & Self-ServiceEngagement & Self-Service
AgendaThe Agility Challenge
Patterns for Success1. Business Process Management
2. Decision Management
3. BPM & DM Together
Projects to Programs to Transformation
Account Opening
Campaign Management
Regulatory Compliance
Vendor On-
boarding
Order Fulfillment
Customer Problem Handling
Process is everywhere 8
Solution Pattern 1: Business Process Management
ExecutiveManagement
CustomerService
InvoiceReconciliationTeams
Finance and OpsAccount
Administration 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
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3
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Typical process problems
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1
2
3
4
5
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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
Business 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
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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.
Systems
SOA
BPM
ExecutiveManagement
CustomerService
InvoiceReconciliation
Teams
Finance& Ops
AccountAdministration
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Customer VideoCustomer Video
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Process Improvement Requires A “Third Way”
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
• 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
Let’s Start With Process Discovery and how is it done today?
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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
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Accelerate Change by Improving the Way You WorkStreamline, document, and run processes
‣ Increasing Transparency through Documentation• 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
‣ Incorporating Broad Participation• 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
Government Agency
Worldwide Outsourcer
Global Insurer
Lowering Barriers to Collaboration creates Value
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Enable faster business-led change
Power to scale with transactional integrity
Governance to manage change confidently
Change is inevitable. Adapt accordingly.Embrace complexity, adapt quickly and exceed expectations
Simplicity for deep business user engagement
Visibility to empower business users to optimize
processes17
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Shared AssetsVersioned Assets
Server Registry
Process Center
Repository
BPMN Process Rules Monitoring BPEL ESB
Process Server Process Designer
Integration Designer
Process Center Console
Out-of-box Process Portal
Optional Microsoft Add-ons
Configurable Business Space Widgets
IBM Business Process ManagerIBM Business Process Manager
Define
Deploy
Update
Measure
GovernanceGovernanceVisibilityVisibility
ManagementManagementManagementManagement
End User InterfacesEnd User InterfacesEnd User InterfacesEnd User Interfaces
DesignDesignDesignDesign
IBM Business Process Manager Now available in the Cloud
IBM Business Process Manager Leverages SOA Infrastructure
Systems
SOA
BPM
ExecutiveManagement
CustomerService
InvoiceReconciliation
Teams
Finance& Ops
AccountAdministration
•
IBM Business Process Manager Advanced Edition
IBM Business Process Manager Advanced Edition
Individual Processes
Pro
cess C
om
ple
xity
22.5%22.5%22.5%22.5%
75.0%75.0%75.0%75.0%
2.5%2.5%2.5%2.5%
The Full Spectrum of BPM can be addressed
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
IBMIBMBusiness Business Process Process ManagerManager
IBM Blueworks Live
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Paper overload
• 100,000+ client requests per month each generating a paper-based 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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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 Common “shared process” for document imaging and automation document imaging and automation using content management toolsusing content management tools
• Removed physical paper from Removed physical paper from 145 company processes145 company processes
• Business teams created “as-is” and Business teams created “as-is” and “to-be” process models using “to-be” process models using IBM BPM BlueworksIBM BPM Blueworks
• IT teams implemented automated IT teams implemented automated workflows for 15 processes including workflows for 15 processes including service requests, plan establishment, service requests, plan establishment, and distributionsand distributions
Quickly address key pain point
Business-led automation for full business processes1 2
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Partnering for Process ImprovementLincoln Trust developed an aligned process focus across the company
Results
• $2.2 million in savings to date
• 120% ROI in one year
• 25% increase in employee productivity
• 50% - 75% reduction in cycle times
• 90% reduction in customer complaints
Best Practices
• Build a partnership between business and IT
• 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
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Process Improvement Benefits at Lincoln Trust
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IBM Business Process Manager V7.5 Demo
Operational Decision Management Analytical Decision Management
Business Processes, Applications & Solutions
DecisionServices
BusinessRules & Events
Predictive Analytics & Optimization
Internal & External Data
Policy Regulation Best Practices Know-how
Risk Clustering Segmentation Propensity
Scenario Analysis& Simulation
Scenario Analysis& Simulation
Decision Management is a business discipline that enables organizations to automate, optimize and govern repeatable business decisions.
Solution Pattern 2: Decision Management
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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
DecisionsDecisionsRulesRulesEventsEvents26
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
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
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
Human resource savings
Reduced operational costs to comply with regulatory changes
Verizon Wireless increased customer service And achieved business agility
WebSphere Operational Decision Management
Situational AwarenessContextual
Decisions
Business Rules
Real-time BEP (CEP)
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)
WebSphere Operational Decision Management v7.5Combined business rules and business events management platform
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Rule DesignerEvent Designer
Decision Center Console
Rule Solutions for Office
Decision Center for Business Space
DesignDesignDesign
ManagementManagementManagement
WebSphere Operational Decision Management
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 Operational Decision Management
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
Decision Center Contains all the
business user capabilities: repository, web environment, test and validation, Business Space components, Rule Solutions for Office
Decision Server Contains all the
technical capabilities: runtimes for business rules and events, execution mgmt, integration connectors, developer tooling
WebSphere Operational Decision ManagementProducts/Components
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Managing Decisions in Microsoft Word and Excel!Managing Decisions in Microsoft Word and Excel!
Leverages Tools Familiar to the Business to Promote Collaboration
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Customer Video
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
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
WorkSafe Victoria Improves Operational Efficiency
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
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Rules & Events Demo
AgendaThe Agility Challenge
Patterns for Success1. Business Process Management
2. Decision Management
3. BPM & DM Together
Projects to Programs to Transformation
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Distinct technologies but Complementary Solutions
Process Management Operational Decision 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
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StartsNotifies
InvokesResponds
How they collaborate….
Solution Pattern 3: Combining BPM and Decision Management
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May June July August September OctoberApril
Process and Decision Life-Cycles can be Managed Independently
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
Unparalleled Expertise and Investment Expert consulting and implementation services for fast realization of
business value
Industry expertise to customize solutions for your specific industry
Why IBM for BPM and Decision Management?
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
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