Copyright © 2005 Computer Sciences Corporation. All rights reserved. 11/5/2007 11:45:18 AM 1

2005 Technology and Business Solutions Conference

June 9 – 11, 2005 Miami, Florida

Applying a BPM Approach to Three Similar but Distinct Business EnvironmentsGeorge Clark and Jamie Raut

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Speaker Introductions

• George N ClarkPrincipal Consultant, Denver Delivery Services, Consulting Group

Senior Business Process Specialist. 7+ years with CSC Consulting working in Project Management, Business Architecture, and Business Process roles.

Actively involved in the Private Banking and Commercial Real Estate projects discussed in this presentation.

• Jamie RautSenior Consultant, San Francisco Delivery Services, Consulting Group

Technical Designer. 5+ years with CSC Consulting and CSC Australia. Application Architect and Developer specializing in J2EE technologies.

Actively involved in the Commercial Middle Market, Private Banking, and Commercial Real Estate projects discussed in this presentation.

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Presentation Overview

• Project background and review of last year’s presentation

– A Practical Approach to Introducing BPM into the Enterprise

• BPM Approach

• Review of Approach as Applied to the Financial Services Industry

– Commercial (Middle Market)

– Private Banking

– Commercial Real Estate

• Lessons Learned

• Questions

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Case Study Background

Client

• Segment-leading Financial Services company

• Industry leading performance by key business metrics

• Predominant use of legacy, in-house developed technology solutions

Account

• Initial RFP for Wholesale Banking issued to 8 major IT, Strategy and niche players

– Subsequent project for Private Banking and Commercial Real Estate Groups have started without going through an RFP process

• CSC deployed a cross-practice team - IT, Process & Domain expertise

• Projects have been business driven with joint CSC and client management

• Technology and Business Teams tightly integrated

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1. Business Led• Designed by process owners• Processes designed in business terms • IT support to realize business vision

2. Flexible• Long-lived, complex processes • Covers automated, human and hybrid

activities• Multiple processes on one BPMS• 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

Last Year our team presented on the benefits of a BPM based approach to BPR

Business Process Layer

Business Process

AA

BB

High Level Logic/Rules

BPMSProcess

Orchestration

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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. (Re)Design2. (Re)Design 8. Analyze8. Analyze

3. SimulateTechnology Activities

Process Activities

• Fast accurate visualization

• Process elements captured as data – stored a process repository

• Design can be analyzed, costed and quantified

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CSC’s BPM approach was customized to achieve client objectives

• Key Client Objectives:

– Constraints on growth due to process inefficiencies

– Process inconsistency across lines of business and regions

– Mismatch of customer/market expectations with capabilities

• CSC Process Delivers:

– 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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The basic systems design uses a Service Oriented Architecture approach, driven by the business process

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We have applied our approach to three distinct business environments all related to lending

Commercial –Middle Market

Private Banking CommercialReal Estate

Product Types

Transaction Volume

Transaction per Lender

Process Standardization

Existing Technology

Other Active Technology Projects

Mix of commercial and retail lending, each with different product sets

Relationship based real estate lending, recourse and non-

recourse

Low

Low

High level of exceptions and human intervention in the

majority of transactions. Need for ongoing collaboration.

Point solutions, excel spreadsheets, and enterprise

accounting systems

No major technology projects in active development that are specific to Real Estate lending

High

High

Standardized process in majority of transactions, with

some exceptions and human intervention

Origination system built on aging technology, various point

solutions, and enterprise accounting systems

PeopleSoft CRM and BEA

implementations ongoing

Commercial loans- Funding

working capital, equipment leasing, agricultural financing, commercial real estate, etc.

Medium

Medium

Standardized with regional variations, with medium level of

exceptions and human intervention

Origination system built on outdated technology, various point solutions, and enterprise

accounting systems

Development of internal portal application

Transaction Size LargeSmallMedium

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Commercial – Middle Market

• Existing Technologies and Ongoing Projects– Good traction on SOA (Service Oriented Architecture)

– Shared customer data through web services

• Process Standardization– Strong management support

– Underlying resistance to change in line, but some willingness to change due to compliance / regulatory factors

• Project Direction Decisions– TIBCO Staffware chosen as BPM tool

– High level architecture is comprised of custom J2EE portal application, sitting on top of TIBCO, which in turn orchestrates the shared service layer

– Presentation layer built on BEA WebLogic Portal 8.1

– Services layer built on webMethods Integration Platform 6.0.1

– Long-term (multi-year), large functional release chosen due to lack of existing systems to leverage, and decision to provide a large amount of functionality

– Leveraged Portal application that was being developed at the same time

– ProActivity used for current and future state modeling

– Existing methodology in place, including UI standards

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Private Banking

• Existing Technologies and Ongoing Projects– Stand alone system for loan origination in place. Good example of a rushed

prototype system that was prematurely deployed to production.

– PeopleSoft CRM project and BEA projects in the initial stages of development

• Process Standardization– Commitment from Senior Management to standardize processes, including:

Approvals, Underwriting, Documentation and Booking

– Some resistance to automating previously manual activities within the line. Realization that the standardized process had many exceptions.

• Project Direction / Decisions– Large technology investments just prior to the BPM project. Due to budgetary

concerns, determination made to not evaluate new software for BPM project.

– Data-centric CRM project made a priority, with focus from senior management

– ProActivity used for current and future state modeling

– BEA WLI used for production build of lending processes

– Small, manageable releases chosen based on the larger CRM/BPM roadmap

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Commercial Real Estate

• Existing Technologies and Ongoing Projects– Point solutions built on modern technologies, with ongoing minor enhancements

– Desire to leverage the Commercial Middle Market solution described earlier

• Process Standardization– Three distinct real estate lending groups have different cultures and perceive their

processes as unique

– Regional and office variations are common based on personal styles and market factors. Senior Management has expressed a desire to standardize processes.

• Project Direction / Decisions– Project is currently in the Discover and Design phase

– Senior management has indicated the desire to explore a rapid development process

– Knowledge worker environment with a high level of exceptions and human intervention is impacting the analysis of what tools are appropriate

• Applying Lessons Learned– Rapid prototyping will be used to drive out functional design, with the goal of leveraging

the prototype into development

– Solution Demonstration Lab (SDL) is being used to gain user buy-in and to create champions within the organizations

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3 Implementations of the Architecture

Commercial Middle MarketCommercial Real Estate(Prototype)

Private Banking

Presentation

Process

Execution/

Service

Orchestration

Service/

Data Access

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Lessons Learned

• Implementation of New BPM Technologies

– IT Departments

• Our projects were the first where the process wasn’t baked into the source code

• There are some challenges in communicating the value of the BPM approach and tools

• Existing development staff are focused on coding to specifications, not understanding the process

– Existing Technology Base

• Difficult to justify the cost of acquiring more appropriate tools if the organization already has licenses for a product that could be utilized

• Every technology is a BPM technology these days

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Lessons Learned (continued)

• Nature of the Business Processes

– Fundamental question of whether the process is well defined and repeatable, or mostly exception processes?

– Influences on the tool selection

• Tool strength may be in system-to-system, or human-to-human interactions

• High transaction volumes and large user base emphasize scalability and standardization

– Knowledge Worker – Human to Human

• Knowledge worker environment creates the need for an iterative working environment that facilitates collaboration

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Lessons Learned (continued)

• Finance Industry Specific Factors

– Content Management

• The ability to re-use financial analysis requires the use of content management functionality

– Business Intelligence / CRM

• Industry emphasis on ‘know your customer’ can dictate a data centric approach

– Compliance

• Rapidly changing requirements are significantly impacting processes

• Project Planning

– Smaller releases preferred over large releases (90-120 days)

– Preferable to avoid the temptation to model the universe of processes in the first release

– Keep it simple, address the largest pain points in the first release (and not much else)

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Current Delivery Team Composition

Industry Expert

Rosie HartmanAccount Manager

Ken Long

Technical Architect

Jamie Raut

Industry Expert

David NashProcess Modeler

Neil KakitaBusiness Analyst

Amy Haase

Project Manager /

Business Architect

George Clark

Business Analyst

Hunter StairBusiness Analyst

Jennifer TianTechnical Analyst

Renée Lum

Support Team and Previous CSC Project Team Members

• Elaine Anderson

• Robert Reti

• Keith Mattioli

• Kerry Bardwil

• Viraz Fouzdar

• Ajay Chaudhari

• Johan Schutz

• Anil Joshi

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Thank you.

Questions?

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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 toBEA WLI, Fuego, Oracle

• Captured “as is” and “to be”state using the tool

• Existing roles and systems assigned to process stepsin “as is” model

• Designed roles, systems and services assigned to process steps in“to be” model