Business Process Management
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Transcript of Business Process Management
© 2011 IBM Corporation
IBM’s Vision
For Business Process Management, Operational Decision Management, and Service Oriented Architecture
Peter Beggs
National Certified Specialist for WebSphere
© 2010 IBM Corporation 2
SOA Reference Architecture – what this session is all about
App
s &
In
fo A
sset
s
Dev
elop
men
t Se
rvic
es Interaction
Services Process Services Information
Services
Partner Services Business App Services Access Services
ESB
Infrastructure Services
IBM BPM 8.0 WebSphere Business Monitor
WebSphere MQ WebSphere ESB
WebSphere Message Broker
DataPower
Enables collaboration between people, processes &
information
Orchestrate and automate business processes Manages diverse data in a
unified manner
Connect with trading partners
Build on a robust, scaleable, and secure services environment
Facilitates interactions with existing information and
application assets
Optimizes throughput, availability and performance
Integrated environment for design
and creation of solution
assets
Facilitates better decision-making with real-time business information
Manage and secure
services, applications
& resources
Business Innovation & Optimization Services
WebSphere Integration Designer
WebSphere Operational Decision
Management
© 2010 IBM Corporation 3
The New Normal: Change, Complexity, Uncertainty
© 2010 IBM Corporation 4
Can Your Processes Handle Change, Uncertainty and Complexity?
Simpler Business Led Change
Full Process Visibility and Governance
Optimized Processes and Decisions
Agile Processes and Decisions with Business Process Management
© 2010 IBM Corporation 5
Why is Business Process Management Important?
How you work defines you.
How you work is a process.
A process can differentiate you – for good or bad.
Managing the process can:
Reduce costs
Provide insight into your business
Insights can be used to improve your business.
Your processes are assets and many are core assets.
Yet we often know little about them.
This is a problem.
© 2010 IBM Corporation 6
Why is Business Process Management Important? A few questions…
1. Is there a burning business issue that needs to be fixed?
2. Is the underlying process well documented? Do all the stakeholders understand and agree on the process?
3. Can you verify that the process you have documented is actually the one running on the floor?
4. Can you see into the process to obtain Key Performance Indicators (KPI’s) about your enterprise?
5. When was the last time you updated the process? The documentation?
Think of a key process…
© 2010 IBM Corporation 7
Key Messages
In reality, though, Business Process Management has four ways it can add value:
1. driving operational efficiency and quality;
2. driving product and service innovation;
3. driving business model innovation; and lastly,
4. driving improved collaboration between IT and business teams.
“…we expect to see continued high levels of interest across industries in the potential for BPM to enhance customer experiences. We also expect to see increased focus on BPM use for profitability and cashflow improvement, as well as to support product and service differentiation and innovation.
“…will see projects looking to institutionalise BPM thinking and make BPM “part of the way things get done”. For them, issues of architecture involvement (including integration with SOA initiatives), process ownership, governance and change management, skills availability and supplier selection will be crucial.
Market Insight 2011 Outlook: BPM Neil Ward-Dutton December 2010
© 2010 IBM Corporation 8
Why Look at Business Process Management?
Is it easy to change how you work? Can you analyze changes before making them? Are changes a programming effort or a business analyst effort?
Is audit a concern? Is the connectivity infrastructure brittle? Hand-coded?
Can you visualize how work gets done? Do you know what people do the most (you may be surprised)? Are people working effectively?
Is the process fast enough from start to finish?
Is there too much manual work? too much paper? too many errors?
Need to ensure policies and business rules followed?
Is it easy to reach into, “to see”, and measure the business? In real-time? What can you do with those measurements?
How do you decide what to change? How do you “business case” changes?
© 2010 IBM Corporation 9
1. Process Inconsistency
2. End User Complexity is significant
3. Poor data quality. Redundant manual data entry
4. Inconsistent Prioritization
5. Lack of Control Over System and Business Events (Exceptions)
6. Poor Visibility Into Process Performance
Problem:
• Missing Deadlines
• Tribal Knowledge
• Painful to change
Program Management
Patient Registration
Ambulatory Care Teams
Critical Care
Triage 1
2
3
4
5
6
Today, our current processes are challenged, and trapped within each application - in Silos.
© 2010 IBM Corporation 10
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
Customer Benefits:
• Huge Reduction in Manual Work, Errors
• Faster, More Consistent Issue Resolution
• Easier to Manage the Business
Process
we need a Business Process Management (BPM) platform, to deliver a layer of Control, Visibility, Standard Rules (Alerts) and Escalation that is Audited.
Program Management
Patient Registration
Ambulatory Care Teams
Critical Care
Triage
© 2010 IBM Corporation 11
Process
SOA ESB
… built upon a Service Oriented Architecture (SOA)
Modeling
Simulation + Optimization
Workflow
Rules
Business Data Mgmt
Human Interfaces
Event Monitoring
System Integration
Metrics
Analytics
Program Management
Patient Registration
Ambulatory Teams
Triage
Critical Care
© 2010 IBM Corporation 12
Governance & Processes
Manage
Assemble
Deploy
Model
The BPM Lifecycle
Process Discovery
© 2010 IBM Corporation 13
Tax Agency: A Latin America Tax Agency
Government Insurance Agency: Australia
in cost savings
The solution, based on Operational Decision Management, sorts proposals within minutes, automatically selecting those that best align with the requirements, resulting in $130M in cost savings
Innovative Solutions Are Required To Realize Real Value
Decrease in Cost 10% $130M 84%
Straight Through Processing
The Agency was able to achieve 84-85% straight through processing by implementing Operational Decision Management to handle the complex rules in their payment process
Through an on-line questionnaire founded on Operational Decision Management, the Agency realized a 10% decrease in the cost of tax collection
Education: University of Chile
© 2010 IBM Corporation 14
Source: IBM CEO Study 2010
Deeper / Faster Cycles, More Risk
More Volatile
Less Predictable
More Uncertain
Multi-faceted, Interconnected
More Complex
Percent of CEOs who answered “To a large or very large extent”
The Business Environment is Increasingly Dynamic
CEOs expect change to be more frequent and less predictable
© 2010 IBM Corporation 15
72%
75%
Source: IBM Global CIO Study 2011
Transformation and Growth Require Better Decisions
CIO’s recognize that effective decision automation is key to success
of CIOs with mandates to
transform the business are looking to “drive better real time decisions.”
of CIOs with mandates to
expand cross-enterprise growth are leading the
charge to “drive better real time decisions.”
© 2010 IBM Corporation 16
Large volumes of simple to complex day-to-day business decisions means there is an opportunity for operational
improvements e.g. greater straight-through processing, shorter time-to-market for new
services, reduced errors in service delivery, and transparent business logic for auditability
Day-to-day Operations Require Operational Decisions Is this person who they say they are? Can we verify other services they receive? Is this person eligible for this service? How much aid do they qualify for? How to account for this exception? Can we recommend additional services? How to handle this appeal? How to ensure fraud is not taking place? Do we have a record of that decision? Can we adapt to the new regulations?
Eligibility
Benefit Payments
Citizen Servicing
Risk & Compliance
© 2010 IBM Corporation 17
Where Business Rules typically exist
Applications
Processes People
Documents Databases
Operational Decision Management
Rules are Defined, Analyzed & Maintained
User Tools
Rules are Stored & Shared
Repository
Rules are Deployed, Executed & Monitored
Decision Server
Make Easy, Safe, Reliable Change with Decision Management
© 2010 IBM Corporation 18
Adapt to Rapid Change
Align Across Business & IT
Act With Precision & Reliability
Key Challenges Addressed by Decision Management
© 2010 IBM Corporation 19
Ensure success with a proven approach for adopting BPM, ODM and SOA
Mat
urity
Cha
lleng
es
Tech
nolo
gy
Expe
rtis
e
Succeed with an Initial Project
Establish a Program
Transform across the enterprise
Identify Business Challenge & Value
On-Demand Consulting Assistance Turnkey Services
Solution Mentoring Training
Simplicity to engage business users
Power to scale as business requires
Realize fast value, foster BPM adoption and create transformational impact
Visibility Rapid time to value Governance
Transformation Program Project
© 2010 IBM Corporation 20
© 2010 IBM Corporation 21
Summary
BPM technology has to be “part of the furniture”.
BPM and SOA are synergistic and each adds value to the other
Continuously optimizing work can provide differentiation and leadership in the marketplace / to your citizens. BPM can enable agility to foster and make delivering on creativity easier.
Improving how you interact with customers / citizens can dramatically improve returns.
BPM can deliver operational dexterity – easier to change how processes work, able to monitor processes.
© 2010 IBM Corporation 22
thank you!