e- Financial World Expo 2004

e-Financial World Expo 2004

Mike ForsterCEO & Chairman, CommerceQuest

© CommerceQuest 2004 www.CommerceQuest.com

Uncertainty and Business Process


Compliance now a critical operational risk

Ex-CA CEO Kumar pleads not guilty

Kumar arraigned on fraud, obstruction of justice charges regarding revenue accounting.September 23, 2004- Former Computer Associates International Inc. chief executive Sanjay Kumar pleaded not guilty Thursday to charges of securities fraud and obstruction of justice, stemming from a two-year investigation into accounting fraud at the company. Former Computer Associates International Inc. chief executive Sanjay Kumar pleaded not guilty Thursday to charges of securities fraud and obstruction of justice, stemming from a two-year investigation into accounting fraud at the company.

Enron's Lay fights back

Former Enron chief tells Larry King he's responsible for Enron, but not for hidden criminal conduct.

July 12, 2004 - Former Enron Corp. Chairman and Chief Executive Kenneth Lay said Monday in a television interview that he takes full responsibility for events at Enron -- both the positive and negative -- but denies he is to blame for criminal conduct that caused the collapse of the Houston energy giant.


Compliance now a critical operational risk

Feds Chase TomoFederal authorities have put a bounty on ex-Symbol Technologies CEO Tomo Razmilovic

September 10, 2004 - Federal authorities have put a bounty on ex-Symbol Technologies CEO Tomo Razmilovic, who fled from securities fraud charges to Sweden earlier this year. The U.S. government is offering a $100,000 reward for information leading to his arrest and conviction. Razmilovic is among "the most wanted" by the U.S. Postal Inspection Service, which posted a reward notice for the 62-year-old former exec yesterday on its Web site.

Former HealthSouth CEO indicted

Scrushy pleads not guilty to all 85 counts in connection with alleged $2.7B corporate fraud scheme.

November 4, 2003 - Former HealthSouth CEO Richard Scrushy was indicted Tuesday on 85 criminal counts stemming from a $2.7 billion accounting fraud at the physical rehabilitation company.


When it REALLY backfires

PRESS RELEASE

The Royal Dutch/Shell Group of Companies (Shell) today [29/07/2004] announced that it has reached agreements in principle with the United Kingdom’s Financial Services Authority (FSA) and the staff of the United States Securities and Exchange Commission (SEC) to resolve their pending inquiries related to Shell’s reserves recategorization.

In connection with the agreement in principle with the FSA, Shell will agree, without admitting or denying the FSA’s findings or conclusions, to the entry of a Final Notice by the FSA finding that Shell breached market abuse provisions of the UK’s Financial Services and Markets Act 2000 and the Listing Rules made under it. In connection with the proposed settlement, Shell will pay a penalty of $17 million.

In connection with the agreement in principle with the SEC staff, Shell will consent, without admitting or denying the SEC’s findings or conclusions, to an administrative order finding that Shell violated, and requiring Shell to cease and desist from future violations of, the antifraud, reporting, recordkeeping and internal control provisions of the US Federal securities laws and related SEC rules. In connection with the proposed settlement, Shell will pay a $120 million civil penalty and has undertaken to spend an additional $5 million developing a comprehensive internal compliance program. The agreement in principle with the SEC staff is subject to final approval by the SEC. No further details respecting the proposed settlements will be released at this time.


And some use process as competitive edge

Vision & Values

Customer satisfaction and constant innovation in products and services are the core values of our day-to-day work.

1. Dynamism: Initiative and agility to discover and make the most of business opportunities before our competitors do and agility to adapt to market changes.

2. Strength: Through the solidity of our balance sheet and prudence in risk management, which are the best guarantees of our capacity for growth and for generating value for our shareholders in the long term.

3. Innovation: Constant search for products and services to meet the new needs of customers and which enable us to obtain higher profitability increases than our competitors.

4. Leadership: Spirit of leadership in every market where we operate, with the best teams and a constant orientation towards customers and results.


The Last 25 years in Business Process

MModelingodeling

Focus on business process

Web services

Service Oriented Architectures

ExecutionExecution IntegrationIntegration End-to-EndEnd-to-End

Focus on data accessibility

Quick Realization of Process Benefits Thru Visualization

• Greater division of labour

• Full managerial control of the workplace

• No Execution• No Measurement of

Process Performance

Focus on automation/ decisions

Collaborative workflow within applications

Software and systems implemented

• Numerous independent system resources

• Few front office applications integrated to back office

• Different data formats and applications

• Multiple component models that don’t interoperate

• Different network protocols

• Difficult and expensive problems with software version control and upgrade management

Focus on broader access

Enterprise Application Integration

Accelerate Business Velocity and Leverage Time As a Competitive Advantage While Lowering Infrastructure

1980s Early 90s Late 90s 2000+


What the Analysts are saying

It’s no surprise then that BPM is quickly emerging as the moniker for the next Killer App in enterprise software. Few areas of software will receive more attention in the coming months and years than BPM. Yet the greatest challenges to the BPM market are the very forces making it so attractive.

Firms will need process integration servers that model and carry out broad business processes. … The adoption of packaged apps and the development of integration standards like Web Services, has primed the market for a new breed of BPM suites. Firms should start BPM projects today to design, execute, and optimize cross-function business processes.


What the Analysts are saying

Business Process Management (BPM) software brings together people, data and enterprise applications in efficient, adaptable and automated processes.

By 2005, at least 90% of large enterprises will have BPM…”

BPM software…”It represents the next level of business integration.”


The Emperor’s New Clothes

ERP

CRM

EAI

SCM

Workflow

Packaged Vertical Applications

DB Vendors


Enterprise BPM

Unique processes

BPM

An Organization’s Processeswhere does BPM fit?

Generic processes

Packaged Apps

EAI BPI


Enterprise BPM Layer

Enterprise BPM

Innovation Xcelerator

Integration Xcelerator

Business Process Management fills the process gaps

SalesSalesMarketingMarketing FinanceFinanceOperationsOperations Back OfficeBack Office

Presentation (eg. Web, Portal, PDA, paper)Presentation (eg. Web, Portal, PDA, paper)

ERPERP LegacyLegacyBranch Office

Branch Office

Back Office

Back Office

OracleOracle WarehouseWarehouseDB2DB2SQLSQL

Customers & Clients

Suppliers & Partners


Why bother? What’s the payback?

Money (More)

Effectiveness (Better)

Agility (More)

Risk (Reduced)


Why bother? What’s the payback?

Means reduced business risk

Means staying/becoming competitive

Means $ off costs or onto revenue

Means greater customer responsiveness

Process Control

Process Agility

Process Efficiency

Process Effectiveness


How Do/Should we Measure?

ProcessEfficiency

Throughput/ Speed

Utilization/ Capacity

Yield/Quality

Process Effectiveness

Customer Responsiveness

Duplication errors

Upstream/ Downstream

Visibility

Maintenance Costs

Process Control

Individual Risk

Organizational Risk

Financial Risk

Process Agility

Impact on Quality

Speed to Change &

Execute


What WE mean by EnterpriseBPM


Step 1. Understand

Business Process Analysis


Business Process Optimization


Business Process Monitoring


Process Modeler

Resource Modeler

Process Simulator


Step 2. Implement

Business Process Execution


Business Process Integration


LINKS

COMMAREA

FEPI

LINK 3270

CICS

IO

SQL

DLI

ProcessCoordinator

Interface Drivers / Adapters

SOAP / XML

or WMQ / HTTP

Interface

IMS CICS TPF

KSDS ESDSRRDS and AIX

All Data Types Supported

LUO/LU23270/BMS

Any CICSCA program

LU 6.2APPC

DB2 StoredProcedures

Existing MQ

CICS TSTDQ

VSAM

DB2

IMS CICS TPF

IMS

PM4CICS

PM4CICS

Dynamic XMLTranslation

Meta Data Repository

Process Integration

Process Execution Manager (PEM)


Step 3. Improve

Process Monitor

Business Dashboard

Business Process Modeling


Business Process Simulation



Process ModelerResource ModelerProcess Automation Modeler

PM4CICSPM4OS/LSPM4Data

Process Execution Manager

Process MonitorBusiness Dashboard

What WE mean by EnterpriseBPM
















Summary

BPM helps organizations improve their most complex & unique business processes

• and provide the proven business integration hooks into ‘generic’ process areas

Providing a framework for continuous process improvement

• with up-front, measurable, cost/benefit analysis/simulation BEFORE implementation

Bringing process improvements in 4 areas

• Efficiencies

• Business Integration

• Control, which reduces process risk

• Business agility


Better processes win every time

e- Financial World Expo 2004

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