Take a Smarter Approach to Processes and Decisions
Proven patterns for successful process improvement
Pablo IrassarDirector, BPM DevelopmentIBM Software Group
Pablo IrassarDirector, BPM DevelopmentIBM Software Group
Agenda
The Agility Challenge
Patterns for Success1. 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
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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Transformation and Growth Require Better Decisions and Processes
Based on interviews with over 3,000 CIOs
of 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 internal collaboration processes.”
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 real time decisions.”
Source: IBM Global CIO Study 20114
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
Process Improvement Requires A “Third Way”
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AgendaThe Agility Challenge
Patterns for Success1. Business Process Management
2. Decision Management
3. BPM & DM Together
Agility in Action
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Key Technologies for Process Improvement
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
Solution Pattern 1: Business Process Management
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BPM capabilities enable:
Visibility
Collaboration
Business User Engagement
Governance
BPM delivers business value:
Productivity
Efficiency
Faster response to change
• 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
How is Process Discovery 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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Blueworks Live Demo
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
processes13
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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
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
Visibility and control to achieve better business outcomes
Visibility and control to achieve better business outcomes
Why Better Processes are Critical to Success
Eliminate manual entry and redundancies to drive down costs
Eliminate manual entry and redundancies to drive down costs
Automate and streamline tasks to increase productivity
Automate and streamline tasks to increase productivity
Automated and streamlined processes help drive greater productivity and faster response to change
“ 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 andservice customers.”—Helen Z. Cousins, executive vice president and CIO, Lincoln Trust Company
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IBM Business Process Manager 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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WebSphere Operational Decision Management
Situational AwarenessContextual
Decisions
WebSphere ILOG BRMS
WebSphere Business Events
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 toolingBoth Decision Center and Decision Server include WAS ND + DB2 WSE
entitlements (supporting program limited use)
Simplified product structure vs. previous business offerings
WebSphere Operational Decision ManagementProducts/Components
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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
DecisionsDecisionsRulesRulesEventsEvents23
Decision ExternalizationSeparate decisions from processes and
applications to simplify visibility and reuse
Real-time Decision AutomationExecute real-time decisions precisely and reliably
based on the context of specific interactions
Business User EmpowermentEnable business experts to author, improve and
maintain decision logic in partnership with IT
Make decision making more precise and informed
Increase revenue and reduce risk through more timely detection and response
Make decision making more precise and informed
Increase revenue and reduce risk through more timely detection and response
Improve visibility for the business
Increase consistency of application of corporate policies and best practices
Increase flexibility at lower cost
Improve visibility for the business
Increase consistency of application of corporate policies and best practices
Increase flexibility at lower cost
Business experts are directly involved in their required solutions
Reduce turnaround time for business changes
Ensure changes meet business requirements
Business experts are directly involved in their required solutions
Reduce turnaround time for business changes
Ensure changes meet business requirements
Benefits of WebSphere Operational Decision ManagementAutomating repeatable decisions for use across processes & applications
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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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Combining BPM and Decision Management Increases Agility
The best combination to support When / What / How kind of decisions from immediate to very long term ones
300€ in France300€ in France500$ in
USA500$ in
USA 200Y in Japan
200Y in Japan
3 ATM withdraws in the same day from different countries
Classify risk based on locations and amounts
Initiate a credit card fraud management process
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May June July August September OctoberApril
Process and Decision Life-Cycles can be Managed Independently
Automate processes and decisions & streamline exceptions
Reuse of process and decision services
Automate processes and decisions & streamline exceptions
Reuse of process and decision services
Increased Process and Decision Automation
Streamlined processes for faster execution
Decisions are managed in a shorten life cycle
Change once, impact everywhere
Streamlined processes for faster execution
Decisions are managed in a shorten life cycle
Change once, impact everywhere
Reduced Cycle Times
LOB are more involved in the processes
Transparency on how decisions are made in the processes
IT and LOB collaboration
LOB are more involved in the processes
Transparency on how decisions are made in the processes
IT and LOB collaboration
Enhanced Business Interactions
Value of Combining BPM and Decision Management
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Aligned Product Architectures Improves Collaboration
Decision CenterDecision Center
Decision ServerDecision Server
WebSphere Operational Decision Management
WebSphere Operational Decision Management
IBM Business Process ManagerIBM Business Process Manager
Process CenterProcess Center
Process ServerProcess Server
Unified management of business rules & eventsUnified management of all BPM components
Work together to deliver effective solutions for business operation improvement
Enabling Agile Processes & Applications
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Rules & Events Demo
AgendaThe Agility Challenge
Patterns for Success1. Business Process Management
2. Decision Management
3. BPM & DM Together
Agility in Action
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.
IF Insurance Streamlines Claims ProcessIncreases 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
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
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 with BPM and BRMS
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Customer Video
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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