Business Process Management - IBM · PDF fileBusiness Process Management (BPM) is about...

Business Process Management

Towards a Super Regional Bank BPM & FileNet

IBM ECM Executive Summit 2008

Barry McGill – Head of BPM, ANZ Bank

August, 2008

© Copyright IBM Corporation 2007. All Rights Reserved.

IBM ECM Executive Summit

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Presentation Content

• BPM – The ANZ definition

• Goals and the value proposition of BPM

• Technology context for BPM at ANZ

• Challenges & Actions

• Lessons to share …

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Business Process Management (BPM) is about continuously optimising essential end-to-end processes in pursuit of organisational performance objectives

BPM combines a set of methods, tools and techniques to design, deploy, analyse, and change operational business processes. It combines quality improvement and re-engineering principles such as Lean Six Sigma with a maturing breed of BPM technologies (BPMS)

ANZ’s View

Enables (and requires) a collaborative approach between Business and IT to build agility, flexibility and performance insight into essential end-to-end business processes

6σ

1.

2.

Change in Approach

Change in Partnering

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Improve the Customer experience• Increased ‘straight-through’ self-service for convenience and responsiveness • Manage exceptions quickly to remain within agreed customer SLA’s• Increased automation for Staff to focus on value add activities for customers

Achieve Operational Excellence

• Support regional processing ‘hubs’ / consolidation agenda

• ‘Right-sized’ end-to-end processing cycle times

• Streamline management of exception handling (lower cost, faster turnaround)

• Increase levels of Straight Through Processing (STP)

• Support risk and compliance through real time business activity monitoring

• Optimise workforce productivity through skill-based routing to available resources

• Provide focus for IT investment on prioritised business processes

Enable Agility and Innovation

• Rapidly model performance of products and services before launching to market

• Re-deploy best practice processes to acquired or merged businesses

• Enable customer tiered servicing based on value of customer relationship

On average organisations are experiencing operational performance improvements in the 15 – 25 percent range. They are also increasing customer satisfaction (revenue) through improved offerings and services …

1.

2.

3.

Benefits

We are working towards three main goals by adopting BPM …

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Why BPM ?

Major Benefits for ANZ

Model changes to product/service processes before we deploy to determine impacts for business and customers

Increase processing insight and control to better serve customers and optimise business operations

Enable agility, flexibility and responsiveness in our processes to cater for changing market conditions and customer needs/preferences

15 – 25% gains

• Faster customer servicing including increased STP based self-service

• Increased workforce productivity• Faster time to value / market

(getting new capability to market faster and cheaper)

Goal of 80% STP

• Increased customer satisfaction• Staff focus on value-add work

for customers • Lower operating costs• Increased processing efficiency• Real-time process performance

insight

Allows ANZ to better manage and change business processes …. 1.

2. Producing a number of outcomes and benefits

Value Proposition

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BPM from a ‘BPMS’ perspective is an important enabler to a number of future projects across each of our Divisions within ANZ – for us this is about the IBM BPM Suite ..

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4Q1Q1 Q2Q2 Q3Q3 Q4Q4 Q1Q1 Q2Q2 Q3Q3 Q4Q4 Q1Q1 Q2Q2 Q3Q3 Q4Q4

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Consumer Lending Automation

Cash Management

Global Payments

Business Banking Originations

Back Office Servicing Offshore

Risk Management Process

2009 2010


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Cash Management

Global Payments




2009 2010


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Cash Management

Global Payments




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Cash Management

Global Payments




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Business transformation priorities Requiring new technology enabled Business Solutions1. 2.

3.That will be assembled from a mix of technologies from front (channel) to back-end (core banking)4.

Technology Context

Of which BPMS technologies will be required to execute and manage end-to-end business process

Future end-to-end business processes will require multiple technologies to integrate end-to-end, with one ‘master’ BPM technology to manage overall execution

ANZ are adopting the use of IBM’s Business Process Management (BPM) suite to manage end-to-end processes. This consists primarily of FileNet (for People based work-queue and content management) and Websphere Process Server (WPS) for end-to-end process management and Straight Through Processing (STP)

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Pro

cess Im

pro

vem

en

t

Lean / Six Sigma / DFSS

efforts

Tech driven Process

Improvement efforts

Business Process

Outsourcing projects

Technology driven Projects using MDA,

SDLC, UML, SOA, EA etc etc

‘Automation’ Projects

‘STP’ Projects

‘BPR’ Projects

Too many discrete Process Change efforts underway using different approaches

Collaborative and common approach focused on the most essential end-to-end processes

Process Modelling

Efforts


2008


Cash Management

Global Payments




2009 2010

Process GovernanceProg

ram

me

& P

roje

ct M

anag

emen

t

Bus

ines

s St

rate

gy

Understand

Define

Execute

Optimise

• Develop Process Architecture – Guidelines (including process scope, ownership, modeling method and structure, IT view and industry reference model use, LSS, DFSS), Business Process Models including classification and known business priorities

• Establish BPM Governance – Process Vision, Ownership including stakeholders roles and accountability, Input/Decision Rights

• Define Process Transformation Priorities (selection matrix combines baseline performance assessment and Business Strategy priorities) including quick-wins

• Define future (Renewed/Innovated) end-to-end Processes to meet required performance expectations for customer and business (modeled and simulated, metrics and measure based)

• Select deployment approach (scope and implementation scenarios)• Develop new end-to-end process including people and technology components • Execute deployment strategy for new process • Monitor and adjust deployed process to realise performance • Manage exceptions rapidly using Business Activity Monitoring

• Track Measures to identify performance improvement opportunities• Use available real-time Process performance insight to model ‘what-if’ impacts for

changes to business, market and customer needs• Respond quickly to changing business, market and customer conditions, rapidly redeploy

process changes to match these changing requirements

Business Process Priorities

Process Framework

Process Management Methodology

We are facing up to the challenges ..starting by driving a common view and approach to BPM across ANZ …

What are we doing?

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We are establishing Business Process Platform (BPP) capability in preparation for Divisional project demands..


2008


Cash Management

Global Payments




2009 2010


2008


Cash Management

Global Payments




2009 2010


2008


Cash Management

Global Payments




2009 2010


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Cash Management

Global Payments




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Personal Division

Institutional Division

Asia Pac

New Zealand

FileNet service delivery Platform & Centre of Excellence (CoE)

Business Transformation Programmes

Enterprise Business Process Platform (BPP) development

• Add WebSphere Process Server •Create ‘Lite’ Workflow Platforms

Increase FileNet Shared Platforms across Divisions

Combine BPM practice as service offering under EIS for Process Integration Delivery

Business Process Platform Maturity

What are we doing?

1.

2. 3. 4.

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We are building up our preferred suite of BPM Technologies – and applying ‘rules’to their usage ….

Desi

gn

/ O

pti

mis

ati

on

BPM Software Components

2008 2009 2010

Standard

IBM FileNet

IBM WebSphere Process Server (E2E)

Migrate

iLog (BRMS)

Documentum

CentraSite Repository / Registry

FileNet

WebSphere Process Server (STP)

iLog (BRMS)

Documentum

CARbe 6.3

Staffware 9.0 / Tibco IPE

GTM2 (NZ)

WebSphere Business Monitor (BAM)

Execu

tio

nM

on

ito

r

iGrafx and Visio (BPMN)

IBM WebSphere Business Modeller

Under Review

Recommended Use

IBM FileNet P8• Content Centric processing where images, forms and documents are to be managed by people e.g. Mortgages and other forms of Secured Lending (content and work-queues). Websphere Process Server as the ‘master orchestrator’ where there’s a combined need to manage content, people, decisions, and integration across an end-to-end business process (i.e. utilise the full IBM BPM stack)

• Document/Records Management (e.g. Legal, Risk)

•Simple ‘lite’ Workflow (moving documents amongst peers for decision making, one step up from email & SharePoint as documents can be better shared, routed, audited etc).

IBM WebSphere (Process Server)

Recommended as the ‘master orchestrator’ for long-lived end-to-end business processes whereby it will ensure the integration with all required underlying technology components in the management of the business process, including FileNet integration where a process needs to ‘step-out’ to people on a regular basis through work-queues for document sharing and management.

What are we doing?

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We are building the Business Process Management (BPM) Frameworks with the right Business and Technology capabilities …

• Potential for IBM Information Framework (IFW) • Business Services exposure from packages including Finacle, Siebel, etc

ANZ BPM Service Delivery Framework including CoE based Lean Six Sigma (LSS), Design For Six Sigma (DFSS), Model Driven (Agile) Software Development (SDLC)

Software AG CentraSite(Process Registry)

• Process Modeler (LSS)• iGrafx • IBM Telelogic (TBC)• WebSphere Business

Modeler

• WebSphere Process Server (Integration Centric)• FileNet P8 (Document / Human Centric)

• WebSphere Business Monitor• FileNet BAM• Hyperion (scorecards)

iGrafx Process Central

• IBM iLog• IBM WebSphere Fabric

iGrafx, Process Modeler (LSS), WebSphere Business Modeler

Hyperion (Scorecards)

IBM FileNet eForms & BPF (‘lite’ workflow platform) Process

exposed in required technology context e.g. iKnow 2.0, Internet eChannels,Web 2.0

Governance including combined Business and IT BPM CoE & Process Councils

What are we doing?

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Lessons ….

• Keep striving to get the organisation to agree on what BPM is (and isn’t), get it sponsored, have an agreed approach and execution plan, communicate, communicate, communicate …

• Don’t try to boil the ocean – prioritise around the essential business processes with most benefit

• Make it Business Driven – put the BA’s in the drivers seat and strap the IT team in the back

• Setup a BPM CoE and seek external help to get started if required

• Get the funding sorted out upfront – getting FileNet infrastructure up for projects can be a major hurdle especially for smaller projects – so focus on combining small projects onto a shared platform

• Agree an agile delivery approach – pay attention to integration and data challenges, and set realistic delivery expectations. Find a good set of external partners to help with business and IT side of BPM (often requires different types of partners)

• Use simple process maps to conduct Business Process improvement conversations with the business

• Adopt BPMN at level 2 -3 process and develop ‘style guides’ for consistency across the organisation

• Use BPF and eForms for small, low integration type projects

• If you have both IBM Websphere and IBM FileNet – make it clear in the organisation about the usage

• Look for early opportunities to adopt BAM – ‘how is the new process performing for our customers?’is likely the first question asked by project sponsors when the new process is deployed using BPM –be ready to respond

• Recognize that FileNet is often only one piece to an overall business solution – so integrate carefully and don’t be too ambitious !! After all BPM is about rapid continuous improvement, not 100% perfection day one ..

• Be persistent … make believers out of the sceptics, and heroes out of the sponsors

What have we learnt? …Lots!

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Thank You

[email protected] – please feel free to contact me

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