The Path to Business Transformation Though Business Process Management Suites (BPMS)

Dr. Setrag KhoshafianVice President of Product Marketing and BPM TechnologyPegasystems Inc.

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Survey QuestionWhich best describes your current thoughts/feelings?

A) I am eager to learn. Teach me Jedi Master!

B) I am concerned you are going to try and sell me Pega Software

C) I can’t wait for Casino Night

D) My boss forced me to come here

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BPM Suites: What Are They?

BPM Suites: Who Benefits & Why

Modernization & Transformation

The Problem: Execution Gaps

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The Problem: Execution Gaps

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Today’s Rules: Be Agile or Lose

DRIVERS • Increased Pressures • Demands for Transparency• Legislation

EFFECTS

Increased Costs Poor Service Operational Inefficiencies

Costs

Business Rule Changes

FREQUENCYMA

GN

ITU

DE

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Management Goals

Systems

Office Service Operations Product Administration

Business Change Drives Execution Gaps

The Challenge…

Office Service Operations Product Administration

…Execution Gaps!

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BPM Suites: What Are They?

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Eliminate execution gaps: efficiently build enterprise solutions

Automate work & manage cases

Monitor, improve & optimize business

performance

Change, reuse & Specialize

BPM Suites capture, automate, and optimize policies & procedures.

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Survey QuestionWhich of the three is most important to your organization?

A) Efficiently Build to Close Execution Gaps• Quick time-to-value• Reduce IT costs• Reduce time to build• Reduce time to maintain

B) Automating Work• Reduce operation costs• Reduce manual errors• Reduce work duplication• Reduce resource costs

C) Monitoring & Optimizing Business• Reduce manual reporting• Increase visibility• Lower/manage risk• Lower maintenance costs

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Eliminate Execution Gaps: Build Enterprise Solutions

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Directly Executable Business RequirementsBPMS Put Changes in the Hands of Business and IT

Business Friendly tools allow the business and IT to define business requirements directly in the systems

Working models replace paper specifications & requirements and auto generates documentation

Manages the projects: business justification, planning, deployment

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What You Model is What You Execute

• Instantaneous testing and execution with playback feature

• Provides immediate feedback and acceptance testing with business stakeholders

• Business owners can test and make changes

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BPM Suites Offer Rules Driven Process Execution

Integration(SOA/WOA/EDA)

Rules

UI Rules(multi-channel

508 accessibility)

Security

Rules

Event RulesDecision

Rules

Expression

Rules

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Survey QuestionBPM Suites provides working models that…

A) Allows Business and IT to capture and define business requirements

B) Replaces paper specifications & requirements

C) Executes with Business Rules to drive work to completion

D) Magically generates project and technical documentation

E) All the Above

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Work and Case Automation

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Automate the Work

CUSTOMERS

Just-When-NeededRetrieval

Best Source

Priority

Cases &Folders

Skill BasedRouting

System-DrivenProcessing

AutomatedTransactions Guided

Processing

TailoredInteractions

ProactiveFollow-up

WebServices

Browser

Scan &Fax

Telephony

Model &Simulate

Productivity & Quality

Alerts

OpenDatabaseProcedur

alDeclarativ

e

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Intent Driven, Process Technology

FormsData SourcesProcesses Rules

Customer Channel

SolutionSpecialization

Regulations

Business Intent

Call Center

Web Self Service

Field Office

Channel Features

Citizen Relationshipor Circumstance

Organization & Language

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Structured Case

PredictableWorkflow

Short Duration

Semi StructuredCase

Dynamic CaseUnstructuredCollaborativeLong Duration

Knowledge Worker

Knowledge Assisted Worker

Clerical Worker

Sweet SpotOf

Smart Case Management

TraditionalProduction/StructuredWorkflow

Case EnabledWork Automation

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Benefits Case Management

Case: Application for Benefit

Review Application

Interview Applicant

Conduct Screening

Verify Employme

nt

Perform backgroun

d check

Enroll Payment of Benefits

Periodic payment

Periodic Re-certification

Fraud Investigatio

n

Contact Employer

Review Tax Filings

Income verification

Background check

Military service history

Attachments

Prior Application A

Prior Application B

Prior Application C

Related CasesCaseworkers

Adjudicator Manager

Adjudicator

Channels

Applicant

Employer: Wages inaccurate

Ad Hoc Actions

Request Manager Review

Manual Review of

Application

Request Additional

Information

Tasks & Subcases

Citizen

Phone Mail

FaxOnline

Email In-Person

Contact Employer

Subcases

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Ad-Hoc, and Collaborative Case Management

Citizen: case subject

Case Workers

Citizen: case subject

Citizen: case subject

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Monitor, Improve & Optimize Business Performance

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Business Activity Monitoring (BAM)

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Knowing how you got to a particular place in a process helps you see the forest for the trees

“How did I get here?”

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Enterprise Repository & Assets

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Core

Proc

ess

Decide

Pres

ent

Inte

grat

e

Secu

re

Constr

ain

Stru

cture

Comm

unica

teCalc

ulate

Enterprise Repository

Compo

site

App

Extens

ion Testing Versioning Reuse/Specialization Auditing Searching/Navigating Access control BPM processes for

management Instant deployment Rollback

BPM Suites Enterprise Repository A single repository to change, deploy, specialize, & re-use

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Common Practices

Add Differences to Specialize

Learn By Doing

Citizen A Citizen B Citizen C

Specialized Benefits Offering Other Benefits Offering

Specialize Services

Benefits Offering 1 Benefits Offering 2

Enterprise-wide Standards

BPM Suites & Solution Frameworks

Manage Sophisticated Organizations

Standard Benefits Offering

Value Added Services 2English Spanish

Pilot

Specialize Rules to Adapt and Innovate

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BPM Suites: Who Benefits & Why

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Survey QuestionWho Benefits from BPM Suites?

A) Business/Program Areas

B) Citizens

C) Knowledge Workers

D) IT

E) Everyone – All of the above

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• Ability to respond to market demands and build for change at lower costs

• Consistent customer service experience tailored to their needs

• Empowered to focus on the task at hand vs. the process nuances

• High productivity environment enables IT to respond &deliver on promises

Who Benefits from BPM?- Everyone -

BPM

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Example: As-Is State

Claims workers switch & toggle multiple screens: IT and Operator

Policies (business rules) need to be made in different systems: IT and Business

Little visibility, governance and control of work: Operator and Business

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Example: BPM Suites Solution

Changes made in one BPM Enterprise repository: IT and Business

Business Empowered to make changes to the rules: Business and IT

Workload Balance: Operations and Business

Eliminate some of the incumbent systems: IT

Manage the Service Levels: Operations and Business

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Modernization & Transformation

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The Challenges and Problems of LegacyLegacy systems have been acquired or built over time: Different,

Heterogeneous, Replications

They reflect huge investments in both physical and intellectual capital

These systems are inflexible and difficult to use or change

Difficult to have transparency, visibility (reporting) or control of end-to-end processes

Changes to Legacy (Enhancements) consume 50% - 80% of IT spend

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Legacy 1 Legacy 2 Legacy 3 Legacy 4

Service Service Service Service

Infrastructure

Composite Service Composite Service Composite Service

Business Performance Objectives

Bot

tom

-Up

Arch

itect

ure

Impr

ovem

ents

Top-Dow

nB

usiness Perform

ance Im

provements

BPM Enterprise Repository

Top Down BPM Suite Rhythm of Change

BPM Suite

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Incr

ease

d B

usin

ess

Val

ue

Incr

ease

d A

gilit

y

Gui

ded

Hum

an In

tera

ctio

ns

Building for Change

Legacy 1 Legacy 2

Service Service Service Service

Infrastructure

Legacy 3 Legacy 4

BPM Suite

ConnectorsServices

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Impact/Risk Matrix:

Less Risk More Risk

Less

Vi

sibi

lity

Hig

h Vi

sibi

lity

Complexity

Bus

ines

s Vi

sibi

lity

Think Big …. Start SmallSlivers

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Selecting the “low hanging fruit” slivers for modernization

Business Value

Variability / Agility Measure

Maintainability Measure

Complexity Measure

Re-Use and Specialization Measure

Automation Measure

Business Rules Measure

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Modernization Phases through BPMS

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Survey QuestionWhich best describes your current thoughts/feelings?

A) I want to learn more about BPM Suites

B) Dang it! You just tried to sell me Pega Software

C) I still can’t wait for Casino Night!

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Question & Answer