Dr. Setrag Khoshafian, - pega.com Peer to Peer... · Huge Disruptive Digital Business Potential …...

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Dr. Setrag Khoshafian, Chief Evangelist and VP of BPM Technology, Pegasystems April 11, 2014

Transcript of Dr. Setrag Khoshafian, - pega.com Peer to Peer... · Huge Disruptive Digital Business Potential …...

Page 1: Dr. Setrag Khoshafian, - pega.com Peer to Peer... · Huge Disruptive Digital Business Potential … ... New Roles for Business Transformation CMO. CDO. CCO. CPO ... Architect Governance

Dr. Setrag Khoshafian,C h i e f E v a n g e l i s t a n d V P o f B P M T e c h n o l o g y, P e g a s ys t e m s

Apr i l 11 , 2014

Page 2: Dr. Setrag Khoshafian, - pega.com Peer to Peer... · Huge Disruptive Digital Business Potential … ... New Roles for Business Transformation CMO. CDO. CCO. CPO ... Architect Governance

© 2014 Pegasystems Inc. 2

Overview of Session Introductions iBPM’s Impact to Your COE PegaWorld 2014 COE Panel Discussion COE Benchmarking Exercise Next Steps

Page 3: Dr. Setrag Khoshafian, - pega.com Peer to Peer... · Huge Disruptive Digital Business Potential … ... New Roles for Business Transformation CMO. CDO. CCO. CPO ... Architect Governance

© 2014 Pegasystems Inc. 3

Introductions

Chief Evangelist and VP of BPM Technology, Pegasystems

Senior Director of BPM Adoption Services, Pegasystems

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© 2014 Pegasystems Inc. 4

Overview of Session Introductions iBPM’s Impact to Your COE PegaWorld 2014 COE Panel Discussion COE Benchmarking Exercise Next Steps

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© 2014 Pegasystems Inc. 5

Archaic Software & Methodologies (COE) Keeps Hurting Your Business

COMPLICATED SYSTEMS

DISJOINTED CUSTOMER EXPERIENCE

INEFFECTIVE RESPONSE

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© 2014 Pegasystems Inc. 6

Huge Disruptive Digital Business Potential …

… but there are challenges … especially for IT

Public Sector interviewees reported that the speed at which new legislation can be deployed is mainly determined by how quickly the supporting IT solutions can be developed. In some cases, even the content of the legislation itself is influenced by what IT can or cannot deliver in time.

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© 2014 Pegasystems Inc. 7

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© 2014 Pegasystems Inc. 8

Disruptive Technologies are Empowering the Business – and Endangering IT “Business is able to use their credit

card and provision solutions within minutes!”

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© 2014 Pegasystems Inc. 9

IT Tries to Modernize …

But Why Do Modernization Efforts Fail?

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© 2014 Pegasystems Inc. 10

Big Bang Modernization Initiatives SOA Modernization

Legacy 5 ERP 3 Legacy 6 ECM 1 MDM

Legacy 3 ERP 2 Legacy 4 DBMS 3 DBMS 4

Legacy 1 ERP 1 Legacy 2 DBMS 1 DBMS 2

ESB 1 ESB 2

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Manually Coded JAVA

Manually Coded COBOL

Equating Modernization to a “Modern Language”

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© 2014 Pegasystems Inc. 12

Model-Driven iBPM for The Digital Enterprise

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© 2014 Pegasystems Inc. 13

Mobile iBPM

EMPOWER CHANGE & COLLABORATION

Familiar business metaphors accessed through a web browser Easy forms guide & protect users

Working models replace paper specs & requirements

Automatically tailor user experience to device and channel

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© 2014 Pegasystems Inc. 14

What is a Dynamic Case?

Case Subjects Collaboration

Tasks Case Events

Case Business Objectives Rules and Policies

Processes & Dependencies

Case Data

Sub-Cases Case Content

Dynamic Case Management

Case Stages

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© 2014 Pegasystems Inc. 15

Social iBPM UNIFIED, CONTEXTUAL, ACTIONABLE, ACCOUNTABLE

Users can quickly communicate about issues. Here, Stephen helps Manny solve a problem. Amanda, a new appraiser, can assess a claim. Manny creates a task for

Amanda, the new appraiser. Amanda gets the

assignment on her phone.

The conversation and actions are stored in the case for later reference or audit.

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© 2014 Pegasystems Inc. 16

Business Rules

Business Events & CEP Big Data

Analytics Decision

Management

Process Intelligence

ƒ

Business Rules Decisions

Business Events

0110101010111100101110010101001110010101001110010101001 101010101011000011010100110010101001110011001010100111

10101010100010101001110010101001110010101001110010101001 1100010110110010111000010101100101010011100101010011100 000101011100010101001110010101001110011001010100111001 1010011100100101001110010101001110010101001110010101001 00101010011100101100110010101001110010101001110010101

Big Data

… Block

2 Block 100

Block 1

Data Good 1,000

Bad 120

Bad 60

Good 2,500

Behavior Value 1

2

3

4

ID

Predictive Analytics

Past Experience Predictive Model

The “i” in iBPM: Intelligent

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© 2014 Pegasystems Inc. 17

Business Intelligence to Intelligent BPM

Historic Reports Real-Time Actionable Events & Reports

OLAP Real-Time Process Optimization

Predictive Analytics Predictive and Adaptive iBPM

Bus

ines

s Va

lue

ƒ

Actionable, Intelligent, and Adaptive

Data Good 1,000 Bad 120 Bad 60 Good 2,500

Behavior Value 1 2 3 4

ID

Predictive Analytics

Past Experience Predictive Model

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© 2014 Pegasystems Inc. 18

IT

Business

Customer

The “M” in iBPM: Management

TA: Technology Strategy Application Servers ESB – EAI - MOM H

R

Lega

cy F

inan

ce E

RP

ECM

D

BM

S

Enterprise Applications and Content

Business Solutions

Business Innovation

Business Objectives -

KPIs

Business Requirements

Business Change and

Agility

iBPM Engage

Simplify

Change

Page 19: Dr. Setrag Khoshafian, - pega.com Peer to Peer... · Huge Disruptive Digital Business Potential … ... New Roles for Business Transformation CMO. CDO. CCO. CPO ... Architect Governance

© 2014 Pegasystems Inc. 19

IT Modernization, Transformation, and

Digitization with iBPM

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© 2014 Pegasystems Inc. 20

CUSTOMER DATA SCIENTIST BUSINESS ANALYST PROCESS IMPROVEMENT EXPERT (BB, GB)

PROCESS ARCHITECT

New Roles for Business Transformation CPO CCO CDO CMO

:Chief Digital Officer

:Chief Customer Officer

10 9 8 7 6 5 4 3 2 1 0

: Chief Process Officer

Chief Innovation Officer

Chief Transformation Officer

The Chief Digital Officer is essentially the senior executive

responsible for helping the organization transition into the

21st century digital economy and digital society.

Irving Wladawsky-Berger

A chief process officer (CPO) is the senior-most executive …. with

responsibility for an enterprise’s business process transformation and

continuous improvement initiative. Connie Moore

Transformation Roles iBPM

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© 2014 Pegasystems Inc. 21

Business Transformation through iBPM

Modernization

Integration Plumbing

Dynamic Case Management

Exceptions Case Management

HR Legacy Finance ERP ECM DBMSs

Integration Plumbing

Agility Layer

Process Excellence: Real-Time Lean Six Sigma

Process Centric Business Transformation Customer Centricity

iBPM COE Team

COE Manager

iBPM COE Leadership

COE Chairman

Process Champion(s)

IT Exec Sponsor(s)

Business Exec Sponsor(s)

iBPM COE

COE LSA

COE LBA

iBPM COE – Extended Team

Engage Directly / Guidance

Test Lead

Infrastructure Lead

DBA Lead

Release Engineer

Performance Lead

PM

Project Leadership

Delivery Partner

PM BA QA LSA

Project Team(s)

BA QA

LSA

Pega Consulting Resources

EL

Customer Program Governance

Governance / G

uidance LBA

Enga

ge

Dire

ctly

Enterprise Architect

Governance Manager

Enablement Lead

Process Owner(s)

Security Liaison

COE SA(s)

Enterprise Architect

COE Manager

iBPM COE and Agile Methodology

Customer Service and Support (CSS)

Sales Force Automation (SFA)

NBA Marketing

Empowering the Business to Own the Change

Page 22: Dr. Setrag Khoshafian, - pega.com Peer to Peer... · Huge Disruptive Digital Business Potential … ... New Roles for Business Transformation CMO. CDO. CCO. CPO ... Architect Governance

© 2014 Pegasystems Inc. 22

Modernize through iBPM

Service Service Service Service

Legacy 5 ERP 3 Legacy 6 ECM 1 MDM

Legacy 3 ERP 2 Legacy 4 DBMS 3 DBMS 4

Legacy 1 ERP 1 Legacy 2 DBMS 1 DBMS 2

Infrastructure

IT V

alue

Sys

tem

of R

ecor

d

Sys

tem

to S

yste

m

Incr

ease

d Bu

sine

ss V

alue

Syst

em o

f Inn

ovat

ion

Gui

ded

Inte

ract

ions

iBPM

Page 23: Dr. Setrag Khoshafian, - pega.com Peer to Peer... · Huge Disruptive Digital Business Potential … ... New Roles for Business Transformation CMO. CDO. CCO. CPO ... Architect Governance

© 2014 Pegasystems Inc. 23

Business Transformation through iBPM

Modernization

Integration Plumbing

Dynamic Case Management

Exceptions Case Management

HR Legacy Finance ERP ECM DBMSs

Integration Plumbing

Agility Layer

Process Excellence: Real-Time Lean Six Sigma

Process Centric Business Transformation Customer Centricity

iBPM COE Team

COE Manager

iBPM COE Leadership

COE Chairman

Process Champion(s)

IT Exec Sponsor(s)

Business Exec Sponsor(s)

iBPM COE

COE LSA

COE LBA

iBPM COE – Extended Team

Engage Directly / Guidance

Test Lead

Infrastructure Lead

DBA Lead

Release Engineer

Performance Lead

PM

Project Leadership

Delivery Partner

PM BA QA LSA

Project Team(s)

BA QA

LSA

Pega Consulting Resources

EL

Customer Program Governance

Governance / G

uidance LBA

Enga

ge

Dire

ctly

Enterprise Architect

Governance Manager

Enablement Lead

Process Owner(s)

Security Liaison

COE SA(s)

Enterprise Architect

COE Manager

iBPM COE and Agile Methodology

Customer Service and Support (CSS)

Sales Force Automation (SFA)

NBA Marketing

Empowering the Business to Own the Change

Page 24: Dr. Setrag Khoshafian, - pega.com Peer to Peer... · Huge Disruptive Digital Business Potential … ... New Roles for Business Transformation CMO. CDO. CCO. CPO ... Architect Governance

© 2014 Pegasystems Inc. 24

Engage the business at the beginning, and keep them engaged

Business

Technologist

Page 25: Dr. Setrag Khoshafian, - pega.com Peer to Peer... · Huge Disruptive Digital Business Potential … ... New Roles for Business Transformation CMO. CDO. CCO. CPO ... Architect Governance

© 2014 Pegasystems Inc. 25

Business Can Own the Change

Yes No

Write-Off?

If… ― Dispute Amount is less than $51 ― AND Transaction is not disputed as a fraudulent transaction ― AND Customer has disputed less than two transactions this year

Then… YES: Fully credit the customer without even initiating the dispute (i.e., Write-off the transaction)

Page 26: Dr. Setrag Khoshafian, - pega.com Peer to Peer... · Huge Disruptive Digital Business Potential … ... New Roles for Business Transformation CMO. CDO. CCO. CPO ... Architect Governance

© 2014 Pegasystems Inc. 26

Business Transformation through iBPM

iBPM COE Team

COE Manager

iBPM COE Leadership

COE Chairman

Process Champion(s)

IT Exec Sponsor(s)

Business Exec Sponsor(s)

iBPM COE

COE LSA

COE LBA

iBPM COE – Extended Team

Engage Directly / Guidance

Test Lead

Infrastructure Lead

DBA Lead

Release Engineer

Performance Lead

PM

Project Leadership

Delivery Partner

PM BA QA LSA

Project Team(s)

BA QA

LSA

Pega Consulting Resources

EL

Customer Program Governance

Governance / G

uidance LBA

Enga

ge

Dire

ctly

Enterprise Architect

Governance Manager

Enablement Lead

Process Owner(s)

Security Liaison

COE SA(s)

Enterprise Architect

COE Manager

iBPM COE and Agile Methodology Modernization

Integration Plumbing

Dynamic Case Management

Exceptions Case Management

HR Legacy Finance ERP ECM DBMSs

Integration Plumbing

Agility Layer

Process Excellence: Real-Time Lean Six Sigma

Process Centric Business Transformation Customer Centricity

Empowering the Business to Own the Change

Customer Service and Support (CSS)

Sales Force Automation (SFA)

NBA Marketing

Page 27: Dr. Setrag Khoshafian, - pega.com Peer to Peer... · Huge Disruptive Digital Business Potential … ... New Roles for Business Transformation CMO. CDO. CCO. CPO ... Architect Governance

© 2014 Pegasystems Inc. 27

Think Big, Think Digital …but Start Small

Impact/Risk Matrix:

Less Risk More Risk

Less

Vi

sibi

lity

Hig

h

Visi

bilit

y

Complexity

Bus

ines

s

Visi

bilit

y

Page 28: Dr. Setrag Khoshafian, - pega.com Peer to Peer... · Huge Disruptive Digital Business Potential … ... New Roles for Business Transformation CMO. CDO. CCO. CPO ... Architect Governance

© 2014 Pegasystems Inc. 28

Analyze iBPM Enabled Legacy and ERP Modernization Opportunities: Business Value, Variability, Maintainability, Complexity

Phas

e 0 Wrap ERP or Legacy

Systems and Modules with iBPM for business value Ph

ase

1 Modernize and Replace Custom Code with iBPM Continue with additional Wrap ERP/Legacy Modernization Projects

Phas

e 2 Rip and Replace

costly ERP systems and modules Continue with additional ERP/Legacy Wrap and Modernization Projects

Phas

e 3

Page 29: Dr. Setrag Khoshafian, - pega.com Peer to Peer... · Huge Disruptive Digital Business Potential … ... New Roles for Business Transformation CMO. CDO. CCO. CPO ... Architect Governance

© 2014 Pegasystems Inc. 29

Sliver Iterations

Transition

Development Iterations

Delivery Planning

Measure and Improve

Stages Social Collaboration

Cases, Processes, Rules, Decisions, UI, Integration

iBPM Real-Time Lean Continuous Improvement

Page 30: Dr. Setrag Khoshafian, - pega.com Peer to Peer... · Huge Disruptive Digital Business Potential … ... New Roles for Business Transformation CMO. CDO. CCO. CPO ... Architect Governance

© 2014 Pegasystems Inc. 30

iBPM COE Maturity M

ATU

RIT

Y

TIME

Establish iBPM LOB COE

iBPM Corporate COE established. Best Practices Defined and Adhered to

iBPM Federated COE model in place. Business Maturity with Common Processes

1

iBPM Method Adoption Building Competence

Business Unit

Process / Rule Architect

PM Leads

Program Mgmt.

Sponsors / Steering Committee Overall Oversight and Initiatives Prioritization

2

3 Claims LOB 1

Region LOB 2

Process / Rule Architect

PM Leads

Program Mgmt.

4 Project Tread:

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© 2014 Pegasystems Inc. 31

Build For Change™…

Time

Conventional Solutions

Cap

abilit

y

iBPM Solution

60-90 Days

Page 32: Dr. Setrag Khoshafian, - pega.com Peer to Peer... · Huge Disruptive Digital Business Potential … ... New Roles for Business Transformation CMO. CDO. CCO. CPO ... Architect Governance

© 2014 Pegasystems Inc. 32

Overview of Session Introductions iBPM’s Impact to your COE PegaWorld 2014 COE Panel Discussion COE Benchmarking Exercise Next Steps

Page 33: Dr. Setrag Khoshafian, - pega.com Peer to Peer... · Huge Disruptive Digital Business Potential … ... New Roles for Business Transformation CMO. CDO. CCO. CPO ... Architect Governance

© 2014 Pegasystems Inc. 33

PegaWorld 2014 Breakout

Center of Excellence Panel Discussion - Best Practices and Benchmarking Please join us for an engaging panel discussion consisting of CISCO, Jabil, JPMC and BNY Mellon as

they present their Center of Excellence best practices. Attendees will also have an opportunity to ask the panelists questions. As an additional benefit, the results of a 2014 COE benchmarking survey will be shared with the audience, including the details of the panelists' responses. Specifically, come learn about: How are the leaders driving Center of Excellence best practices and maturing their operation, what

hurdles did they overcome Preview where are you and other customers along the Center of Excellence Journey How can you address challenges and issues with live Q&A with our expert panelists

Page 34: Dr. Setrag Khoshafian, - pega.com Peer to Peer... · Huge Disruptive Digital Business Potential … ... New Roles for Business Transformation CMO. CDO. CCO. CPO ... Architect Governance

© 2014 Pegasystems Inc. 34

Overview of Session

Introductions iBPM’s Impact to your COE PegaWorld 2014 COE Panel Discussion COE Benchmarking Exercise Next Steps

Page 35: Dr. Setrag Khoshafian, - pega.com Peer to Peer... · Huge Disruptive Digital Business Potential … ... New Roles for Business Transformation CMO. CDO. CCO. CPO ... Architect Governance

© 2014 Pegasystems Inc. 35

Benchmarking Survey

Page 36: Dr. Setrag Khoshafian, - pega.com Peer to Peer... · Huge Disruptive Digital Business Potential … ... New Roles for Business Transformation CMO. CDO. CCO. CPO ... Architect Governance

© 2014 Pegasystems Inc. 36

Overview of Session Introductions iBPM’s Impact to your COE PegaWorld 2014 COE Panel Discussion COE Benchmarking Exercise Next Steps

Page 37: Dr. Setrag Khoshafian, - pega.com Peer to Peer... · Huge Disruptive Digital Business Potential … ... New Roles for Business Transformation CMO. CDO. CCO. CPO ... Architect Governance

© 2014 Pegasystems Inc. 37

Next Steps Look for an email containing: Recording link for this session Link for getting a copy of Setrag’s iBPM: The Next Wave book Link for taking the benchmarking survey

Please join us at PegaWorld 2014 for: COE Panel discussion COE Networking Lunch

Invite for the next Peer to Peer COE forum Any questions / feedback please contact

[email protected]

Page 38: Dr. Setrag Khoshafian, - pega.com Peer to Peer... · Huge Disruptive Digital Business Potential … ... New Roles for Business Transformation CMO. CDO. CCO. CPO ... Architect Governance

© 2014 Pegasystems Inc. 38

Q&A