A Practical Approach to Introducing BPM into the Enterprise
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Copyright © 2004 Computer Sciences Corporation. All rights reserved. 11/5/2007 11:41:40 AM 1 2004 Technology and Business Solutions Conference June 3-5, 2004 Philadelphia, Pennsylvania A practical approach to introducing BPM into the Enterprise Jamie Raut & Rob Reti
description
BPM is touted as being able to solve a number of business and technology challenges ranging from simple process modeling to complex application integration. Given this broad range of capabilities how does an organization get started? What tools can be leveraged in a pragmatic, cost-effective way to initiate a BPM project? What are some of the organizational challenges – both business and IT – that need to be addressed? Leveraging recent work at a Fortune 500 company, this presentation will focus on how one CSC client approached adding BPM to their corporate capabilities portfolio. The speakers will cover the challenges, the successes and the failures.
Transcript of A Practical Approach to Introducing BPM into the Enterprise
Copyright © 2004 Computer Sciences Corporation. All rights reserved. 11/5/2007 11:41:40 AM 1
2004 Technology and Business Solutions Conference
June 3-5, 2004 Philadelphia, Pennsylvania
A practical approach to introducing BPM into the EnterpriseJamie Raut & Rob Reti
11/5/2007 11:41:40 AM 2
Speaker Introductions
• Robert RetiPrincipal Consultant, Strategic Services, Consulting Group
Senior Business Architect. 9+ years with CSC, CSC Index and The Kalchas Group. BPM advocate since 2000. Initial collaborator with Howard Smith on BPM. Member of BPMI.org and BPMABA. Co-creator of CSC BPR:CI (Continuous Improvement) methodology. Extensive Business Strategy experience.
• Jamie RautSenior Consultant, San Francisco Delivery Services, Consulting Group
Technical Designer. 4+ years with CSC Consulting and CSC Australia. BPMABA participant. Application Architect and Developer specializing in J2EE and e4
technologies. Member of the original e3 group in CSC Australia.
11/5/2007 11:41:40 AM 3
Presentation Overview
• BPM/BPR Definitions
– Technology and Business
– CSC Approach
• BPM/BPR Methodology in Action
– Case study
• Questions
11/5/2007 11:41:40 AM 4
An enterprise is only… “a bundle of Business Processes being influenced by and utilizing a range of Assets”
The Business Process is the BusinessThe Business Process is the Business
Business
Processes
Planning• Corporate• Growth
• Sales
• Segments
• Costs
Tangible• People
• Equipment
• Facilities
Intangible• Int. Property
• Brand
Internal• Employees
• The Board
External• Customers
• Partners
CRMCRM
ERPERP
CIMCIM
SCMSCM
MRPMRP
KMKM
EISEIS
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1. Business Led• Designed by process owners• Processes designed in business terms • IT support to realize
2. Flexible• Long-lived, complex processes • Covers automated, human and hybrid
activities• Multiple processes on one BPMS• Open process description languages• IT Architecture is process-driven
3. Agile• Near real-time process editing• Technology abstracted from business
processes• Process as executable code
Process Owner(s)/ User(s)
BPM Process Design Tools
IT Infrastructure
Data
Applications & Tools
Middleware
Connectors
B P
M
Co
nc
ep
tua
l O
ve
rvie
w
Business Process Management (BPM) is key to the next generation process transformationBusiness Process Management (BPM) is key to the next generation process transformation
BPM technologies offer a platform for business-led process improvement with unprecedented flexibility and agility
Business Process Layer
Business Process
AA
BB
High Level Logic/Rules
BPMSProcess
Orchestration
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Process redesign should be driven by strategy, embedded in the operating model and enabled through BPM technology
BPR:CI’s bi-directional approach enables enterprise-level continuous improvementBPR:CI’s bi-directional approach enables enterprise-level continuous improvement
Business Objectives
• Enterprise/BU strategy sets the
process objectives
• Strategic goals evaluated based
on market demands
‘Customer-centric’ experience view
Non-
Commercial
Experience
“Adjustment”
Experience
Origination
Experience
“Monitoring”
Experience
• How well is Comm Credit info and knowledge shared with other groups (e.g. retail/private) regarding other products?
• How intrusive is the cross-sell, up-sell activity and is it focused on valuable, relevant products?
• How well can customer make changes to their products?
• How much self service is possible with what safeguards to privacy and error-avoidance?
• What interfaces exist for making what kind of adjustments?
• How well can customers see their products with what degree of customization?
• How real-time is the monitoring info and can it be self serviced?
• How well does monitoring lead to adjustment if required?
• How straightforward/simple is the origination process?
• How many return requests for information are required?
• What is expended and elapsed cycle times to key decision points?
Customer
1111
• End-to-end, process-centric view
• Op model aligned to strategic goals
• Evolving capabilities can impact
strategic objectives
Operating Model
Culture
and Norms
Org and
Skills
Mgmt
Systems
Information
and IT
Core
Processes
2222
• BPM provides IT backbone for new
and existing functionality
• New functionality can inform
processes
Enablement Design
3333
e444e444
CSC BPR:CI Methodology
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A BPM based approach to BPR enables a very rapid parallel and iterative discover, design, develop and deploy cycle
Vision
P R
O C
E S
S
BU
SIN
ES
S
6. Operate• Manage and control
executing processes
7. Optimize• Activity Monitoring for
ongoing analysis and
improvement
• Processes can be simulated, automated and deployed on BPMS
• Iterative, parallel development approach
• Faster deployment than traditional waterfall
5. Execute
T E
C
H
N
O
L
O
G
Y
Parallel/iterative BPM development achieves superior results in less time than traditional approachesParallel/iterative BPM development achieves superior results in less time than traditional approaches
4. Deploy
Monitor Manage
Design
1. Discovery 2. (2. (Re)DesignRe)Design 8. Analyze8. Analyze
3. SimulateTechnology Activities
Process Activities
• Fast accurate visualization
• Process elements captured as data – stored a process repository
• Design can analyzed, costed and quantified
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Presentation Overview
• BPM/BPR Definitions
– Technology and Business
– CSC Approach
• BPM/BPR Methodology in Action
– Case study
• Questions
11/5/2007 11:41:40 AM 9
Case Study Background
Client
• Segment-leading Financial Services company
• Strongest, largest, most strategic Line of Business
• Industry leading performance by key business metrics
• Predominant use of custom, in-house developed technology solutions
Account
• RFP issued to 8 major IT, Strategy and niche players
• CSC deployed a cross-practice team - IT, Process & Domain expertise
• Project Teams had equal client and CSC staffing, led by clients & users
• Technology and Business Teams tightly integrated
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CSC’s BPM/BPR approach is customized to achieve client objectives
• Key Client Objectives:
– Constraints on growth due to process inefficiencies
– Post-merger process inconsistency
– Mismatch of customer/market expectations with capabilities
• CSC Delivered:
– Current State Assessment
• 100 interviews, BPM process maps incl. enablement, root-cause analysis
– Future State Vision and Design (Process & IT)
• Focused on cycle-time and effort reduction, flexible infrastructure
– Gap Analysis & Implementation Roadmap
• Process, Technology and Organization simultaneously
– Business Requirements & Technology Architecture
– Rapid Process-Centric Prototyping
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Process Demand
Release Collateral
Booking Pre-work
Deal Analysis Deal Support Deal Servicing Deal SecurityDeal Production
Financials Analysis
Audit Confirmations
Comp Monitoring
Setup Monitor Compl Setup Monitoring
Search UCC’s
Scan Documents
Receive Collateral
Book Deal
Maintenance Setup
Wire Payments
Deal Maintenance
Review Document
Outside Review
Create Materials
Sec Verification
Monitor Security
Pre
Ap
rvl
Pre
Ap
rvl
Do
cu
me
nt
Do
cu
me
nt
Reco
rdR
eco
rdM
ain
tain
Main
tain
Clo
se
Clo
se
Initiation
OtherQA
QA
Initial Analysis
Perfect Collateral
Final Payments
Projections
A Process-driven Transformation demands an evolution from a Functional to a Process-centric view
Sales Consultation Collateral Review Data Validation
Traditional Functional “Silo”
BP
M-e
na
ble
d “
Pro
cess
Ce
ntr
ic”
Vie
w
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For many processes, the ideal model is Straight-Through Processing (STP), built from modular process components
Example: Deal Origination Lifecycle
• STP minimizes cycle time and effort
• STP avoids iteration between process components
• STP reuses process components5. Execute
1. Acquire
6. Document
2. Qualify
3. Define
7. Record
4. Evaluate
D
e
a
l
MaintainMaintainMaintainMaintainRenewa
l
Cyclical Reviews
Monitoring
Change
Request
NNNNeeeewwww
DDDDeeeeaaaallll
D
e
a
l
NNNNeeeewwww
DDDDeeeeaaaallll
Audit
Audit
Audit
Audit
BPM Technology
• Universal IT platform for all process components
• IT architecture follows process not data structures
• A BPMS manages the state, flow and monitoring of the deal
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Integrated System
PipelineTracker
ProspectingQualification
AnalyzerRisk
Guidance
ApprovalGrid
Pricing/Profitability
DocGenerator
Business Process Management
Process Optimizer Event Tickler/Alerts
AlertGenerator
CollateralMonitoring
Pricing/Profitability
Overall Credit Lifecycle
Universal Data Access
The basic systems design uses a Service Oriented Architecture approach, driven by the business process
5. Execute1. Acquire 6. Document2. Qualify 3. Define 7. Record4. Evaluate MaintainMaintainMaintainMaintain
D e a lD e a lD e a lD e a lNewDeal
Customer Change RequestRenewal
Cyclical ReviewComplianceCheck
RiR
AUDITAUDIT
AUDITAUDIT
Content
guidanceContent guidance
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Business Process Modeling/Analysis Tool: ProActivity
• Flagship product from ProActivity Inc. chosen as BPA tool
• Primarily a modeling tool
• Add-ons available for BAM
• Process exportable to BEA WLI 8.1 and Fuego
• Accelerates development in BEA WLI by creating a Java Process Definition (JPD) file as a shell for further development
• Captured “as is” and “to be” state using the tool
• Existing roles and systems assigned to process steps in “as is” model
• Designed roles, systems and services assigned to process steps in “to be” model
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The BPMS manages workflow, data and the integration of functionality, within and between process components
• BPMS combined with SOA results in highly flexible and extensible solution
• BPMS handles the orchestration of business services
• Complete abstraction from underlying technologies and systems
SOAP/HTTP
JAX-RPC/
JAX-M
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Delivery Team Composition
Officer in
Charge
Rosie Hartman
Officer in
Charge
Rosie Hartman
Program
Manager
Ken Long
Program
Manager
Ken Long
Technical
LeadKeith
Mattioli
Technical
LeadKeith
Mattioli
Project
ManagerMike
Jones
Project
ManagerMike
Jones
Business Architect
Elaine Anderson
Business Architect
Elaine Anderson
Business Architect
George Clark
Business Architect
George Clark
Technical Architect
Jamie Raut
Technical Architect
Jamie Raut
Business
Architect
Rob Reti
Business
Architect
Rob Reti
Technical Architect
Ajay Chaudhari
Technical Architect
Ajay Chaudhari
Process
AnalystRobert Pu
Process
AnalystRobert Pu
Process
Analyst
Kylie McKirdy
Process
Analyst
Kylie McKirdy
Process
Analyst
Johan Schutz
Process
Analyst
Johan Schutz
Process
Analyst
Jennifer Tian
Process
Analyst
Jennifer Tian
Process
Analyst
Philip Kang
Process
Analyst
Philip Kang
Technical
Analyst
VirazFouzdar
Technical
Analyst
VirazFouzdar
11/5/2007 11:41:40 AM 17
Thank you.
Questions?
