© 2010 ibm corporation smarter planet means smarter processes october, 2010
TRANSCRIPT
© 2010 IBM Corporation
Smarter Planet Means Smarter Processes
October, 2010
© 2010 IBM Corporation2
Smart Work for a Smarter Planet
AgendaAgenda
Why smarter processes?
The changing architecture of our businesses
A look at some journeys towards a smarter business
© 2010 IBM Corporation3
Smart Work for a Smarter Planet
Yesterday’s Best In Class Is No Longer Good Enough
Workforce 26% more productive since 1990
Dock to Stock 50% faster in 2 years
Supplier Lead Time 62% faster in 2 years
IT Services 25% faster in 2 years
© 2010 IBM Corporation4
Smart Work for a Smarter Planet
Report from 1500 CEOs: Agility is Required
“We have to be ‘change animals.’”
= to a large or very large extent
87% - More Volatile
86% - More Uncertain
82% - More Complex
74% - Structurally Different
Source: IBM Institute for Business Value 2010 Global CEO Study
Michele McKenziePresident and CEO,Canadian Tourism Commission
Responses show organizations experiencing significant change
© 2010 IBM Corporation5
Smart Work for a Smarter Planet
The science of business process has advanced significantly over the past several decades
Source: David Knight
“The ability to change is far more
prized than the ability
to create in the first place.”
Business ProcessManagement
Howard Smith & Peter Fingar
1st Wave:
Taylorism
3rd Wave:
Business Process Management
(BPM)
2nd Wave:
Business Process Reengineering
4th Wave:
Business Performance
TQM, Six Sigma
Michael Hammer, Gary Rummler
Business Agility
IBM
Assembly Lines
Frederick Taylor
© 2010 IBM Corporation6
Smart Work for a Smarter Planet
Today’s IT savvy business are combining two approaches to achieving smarter business infrastructure
SOA helps make the underlying technology that supports the business less rigid and more agile by integrating the business through linked,
repeatable business tasks, and services
BPM engages the business in continuous process improvement to flexibly automate a wide-range of business process, from the human-centric and ad-
hoc to the more documented and structured
© 2010 IBM Corporation7
Smart Work for a Smarter Planet
Organizations are trying to embed new approaches to business change management into their IT infrastructures
This is transforming the way business operations & IT partner to approach the architecture of their business
Increase awareness by capturing relevant internal and external events
Improve decision making through a better understanding of business conditions
Deliver greater flexibility and control over and measurement of business activities
Competitor Introduces
New Product
Competitor Introduces
New Product
Supplier Pricing Trends
Supplier Pricing Trends
Customer Issue
Resolution
Customer Issue
Resolution
Introduce Promotional
Product Offers
Introduce Promotional
Product Offers
Changing Customer
Buying Patterns
Changing Customer
Buying Patterns
Customers Abandon Shopping
Carts
Customers Abandon Shopping
Carts
© 2010 IBM Corporation8
Smart Work for a Smarter Planet
A smarter business architecture means a more intelligent, smarter business
Insurance companies will make marketing offers based on events or patterns displayed by their customers
Communication Service Providers will use past usage trends to offer customers more suitable plans when usage rates near their limits
Retail companies will send personalized promotional offers to high value customers with abandoned shopping carts
Oil companies will optimize oil production by alerting operators of reservoir changes and recommended corrective actions
© 2010 IBM Corporation9
Smart Work for a Smarter Planet
AgendaAgenda
Why smarter processes?
The changing architecture of our businesses
A look at some journeys towards a smarter business
© 2010 IBM Corporation10
Smart Work for a Smarter Planet
Tools for a smarter business architecture
Rules
Analytics
Adapt and respond dynamically by automating decisions
Solve complex business problems and predict outcomes for strategic decisions and actionsEvents
Content
Detect changing business situations by capturing and correlating events from multiple sources
Seamlessly integrating active content with automated business activities
Collaboration
Improve business performance by enabling your internal and external business network to work together
Foundational element enables dynamic modification of business processes as business needs changeProcess
Monitoring
Identify performance gaps and improvement opportunities by monitoring business activities in real-time
Collect new information required to take advantage of new business opportunities
Information
The architecture of our business are undergoing an evolution
Business Application
Services
Strategy and Planning Services
Enterprise Service Bus
Access Services
Partner Services
Process Services
Information Services
Interaction Services
Business Services and Events
Lifecycle Services
Asset and Registry Services
Development Services
Management Services
Infrastructure Services
Business Application
Services
Strategy and Planning Services
Enterprise Service Bus
Access Services
Partner Services
Process Services
Information Services
Interaction Services
Business Services and Events
Lifecycle Services
Asset and Registry Services
Development Services
Management Services
Infrastructure Services
Business Application
Services
Strategy and Planning Services
Enterprise Service Bus
Access Services
Partner Services
Process Services
Information Services
Interaction Services
Business Services and Events
Lifecycle Services
Asset and Registry Services
Development Services
Management Services
Infrastructure Services
Business Outcomes
Business Agility
En
terp
rise
Str
ateg
y an
d P
lan
nin
g
SOA Foundation
Lifecycle Services
A reference model for the new business architecture
Banking Insurance Health Care Telecom Retail Government:
Performance Management
Business Outcomes
Business Agility
En
terp
rise
Str
ateg
y an
d P
lan
nin
g
SOA Foundation
Monitoring and Management
Services
Model and Development
Services
Access Services
Asset and Registry Services
Business Application Services
Interaction and Collaboration Services
Process and Decision Services
Information and Analytic Services
Partner Services
Infrastructure and Virtualization Services
Complexity Management
Risk ManagementDecision
ManagementCase Management
Compliance Management
Business EfficiencyPolicy ManagementGovernanceSecurity
Management
Enterprise Service Bus
Others
Improved customer sat & retention
Improved consistency
Reduced operational costs
Improved cross-business unit coord
Better and faster opportunity id
More successful promotions
Maximized productivity
Expanded market share
Improved customer acquisition
…
Bus Events Bus Rules MonitoringContentAnalytics Collaboration InformationProcess
Approaching the reference architecture from a “business outcome” view
This view is the topmost layer of the Reference Model.The Business Outcomes View focuses on improved business outcomes in the functions the business performs through the adoption of business agility techniques.
Business Agility Capabilities
Sense and Predict
Respond Enforce and Comply Measure
EnterpriseStrategy
andPlanning
Banking Insurance Health Care Telecom Retail Government Others
Order to Cash On-boarding CustomerCare
CustomerInsight
Procurement to Pay
Fulfillment
Fraud Detection
Campaign Management
Order Handling
Risk Management
Regulatory Compliance
Portfolioto Orders
Prod Lifecycle Management
AccountReconciliation
ClaimsManagement
Market & OfferManagement
Provider & Supplier Mgmt …
Business Use Cases
Improved customer sat & retention
Improved consistency
Reduced operational costs
Improved cross-business unit coord
Better and faster opportunity id
More successful promotions
Maximized productivity
Expanded market share
Improved customer acquisition
…
Business Agility Outcomes
Business Agility Disciplines
We must then leverage our tools of business architecture todetermine the “how” of achieving these business outcomes The Business Agility Enablement layer encapsulates the capabilities the business can employ to achieve more agile business outcomes:
• Business Design Enablers that enable the business to be the facilitators of business agility• Business disciplines that enable a business to successfully design and run an agile business
Business Process Optimization Foundation
SCM CRM HR PLM …….Finance
Existing Business Systems
Sense and Predict Respond Enforce and Comply
Measure
Business Agility Enablers
EnterpriseStrategy
andPlanning
Bus Events Bus Rules MonitoringContentAnalytics Collaboration InformationProcess
Business Functions and Outcomes
Performance Management
Complexity Management
Risk Management
Decision Management
Case Management
Compliance Management
Business Efficiency
Policy Management
GovernanceSecurity
Management
The “how” is ultimately mapped to and instantiated by a IT architecture to achieve better business performance
This view reinforces that the reference model is fundamentally based on SOA and BPM.The Foundation View encapsulates the technical capabilities that enable the business to enact business agility
Interaction and Collaboration Services
Enables role-based user experiences and
collaboration
Dynamic Process and Decision Services
Orchestrate and automate business processes and
decisions
Information and Analytic ServicesManage and analyze
diverse data and content in a unified mannerModel and
DevelopmentServices
Integrated environment
for modeling, design,
simulation and creation of
solution assets
Partner Services
Connect with trading partners
Business Application Services
Build on a robust, scaleable, and secure services environment
Access ServicesFacilitate interactions with existing information and
application assets
Monitoring and
Management Services
Monitor, manage and
secure business policies,
processes, decisions &
events; services,
applications &
resourcesInfrastructure and Virtualization ServicesOptimizes throughput, availability and utilization
Enterprise Service Bus Connect and mediate services and events
EnterpriseStrategy
andPlanning
Business Agility Enablers and Disciplines
Asset and Registry Services
Lifecycle Services
© 2010 IBM Corporation16
Smart Work for a Smarter Planet
AgendaAgenda
Why smarter processes?
The changing architecture of our businesses
A look at some journeys towards a smarter business
© 2010 IBM Corporation17
Smart Work for a Smarter Planet
In a Time When Patients Live, Work, Seek Care in New Ways
People expect to interact with healthcare practitioners when personally convenient
– Easy access to doctors, hospitals and each other - anytime, anywhere
– More meaningful interactions, supported by the right information at the right time
– Rising expectations compel improvements
in speed, accuracy, personalization, privacy and security
Focus is expanding from reactive, acute care to prevention and wellness
How do we deliver collaborative care?by connecting people, care teams and information
© 2010 IBM Corporation18
Smart Work for a Smarter Planet
University College London Hospital now has fewer Patient Delays, reduction in Patient Complaints, and greater insight into Resource Planning. - That’s Smart Healthcare!
CHALLENGE:Quickly implement the new UK government policy: “18 Week RTT” and measure end-to-end Patient ‘pathway’
SOLUTION:A Patient Tracking System (PTS) that can signal when a patient is delayed in their treatment pathway and simplicity and accurately enter Patient details once on to the system rather than multiple entries
© 2010 IBM Corporation19
Smart Work for a Smarter Planet
UCLH implements a new Patient Tracking System
Billing / Referral Fees
Patient Appointment / Admissions
Electronic Patient Records System
Map key components of business processes Patient
Satisfaction
© 2010 IBM Corporation20
Smart Work for a Smarter Planet
UCLH – Business Outcomes improve through better Process Management and Work TrackingQuickly finds ₤3M in Referral Fees with new Patient Tracking System (PTS)
BENEFITS: Reduction in patient errors in processing appointments, admissions, multiple entries, etc Decrease in number of patient complaints regarding administrative processes A recovery of ₤3 million Referral fees though this new PTS
A provider of health services in the United Kingdom improves its processes to recover GBP3 million in fees when it implements IBM WebSphere Lombardi Edition and IBM BPM Blueprint software
A provider of health services in the United Kingdom improves its processes to recover GBP3 million in fees when it implements IBM WebSphere Lombardi Edition and IBM BPM Blueprint software
Real-time Collaboration on Patient Records
© 2010 IBM Corporation21
Smart Work for a Smarter Planet
In tough economic times we expect Airlines to operate Reliably, Safely, Efficiently and be Social and Environmentally committed
In past 20 years, Airline strategies to profitability have changed dramatically;– Airlines are more volatile due to consumer
confidence, business travel, regional economic and political issues
– Government deregulation, ‘no-frill fares’ efficiencies, outsourcing of operations help improve yields and better manage capacity
About 1% more passengers traveled in August 2010 but average price to fly one mile rose 14%
• According to the ATA , passenger revenue rose 17% in August 2010 compared to the same month in 2009
How do Airlines remain competitive and viable?by dynamically improving their business processes between customers, employees and operations
“…Money never sleeps, pal …”
© 2010 IBM Corporation22
Smart Work for a Smarter Planet
British Airways increases Upgrade Revenue and improves Business Visibility - That’s a Flying Smart!
CHALLENGE:Increase upgrade revenues via ba.com through improved exploitation of commercial opportunities.
SOLUTION:
Flexible IT infrastructure while reducing IT costs by adopting IBM WebSphere ILOG JRules V6.7.3 software in an SOA configuration. Manage upgrade eligibility and business rules pricing calculations for its mission-critical Website
© 2010 IBM Corporation23
Smart Work for a Smarter Planet
British Airways Redefining Flexibility of the Upgrade process
Availability
3rd partiesRe-booking & Re-ticketing
during disruptions
Customers
Staff
Pricing decisions
Rules services
© 2010 IBM Corporation24
Smart Work for a Smarter Planet
Optimizing Business Performance at British Airways
Real-Time Dynamic
Optimizationof Operations
Benefits: Increased Upgrade Revenue Improved targeting of the commercial market and quick reactions to
a fast-moving environment
Drastically reduced time to market by allowing business users to amend rules without IT involvement
Improved business visibility of upgrade propositions and pricing logic
© 2010 IBM Corporation25
Smart Work for a Smarter Planet
Today, Utilities realize that they need a ‘Smarter Grid’ then what Thomas Edison envisioned!
Energy Grids need to be able to transform its business to meet the new energy landscape;– Monitor grid operation and Outage monitor
(vs you call us) with high-speed, near real-time, two-way communications
– Sensors enabling rapid diagnosis and corrections and repair
Leverage the power of information to improve system design and operation, improved reliability, Improved efficiency and meeting customer needs
How can Utility companies can solve Humanity’s top issue?by leveraging information provided by technology and make efficient use of existing infrastructure assets
Humanity’s Top 10 Problems for next 50
yearsEnergyWaterFoodEnvironmentPovertyTerrorism & WarDiseaseEducationDemocracyPopulation
- R. Smalley, Rice University
© 2010 IBM Corporation26
Smart Work for a Smarter Planet
Dong Energy – Employed Smarter Operations to increase Quality of Service by making the most of the Intelligent Electrical Grid
CHALLENGE:Increasing marketplace and regulatory demands drove Danish utility company DONG Energy to look for a way to better respond to outages faster and more efficiently
SOLUTION:
DONG Energy teamed with IBM to implement an Intelligent Utility Network, installing remote monitoring and control devices that give the company an unprecedented amount of information about the current state of the grid. The new solution also involves extensive analysis of the data provided by the remote devices, as well as reengineering of DONG Energy’s business processes.
© 2010 IBM Corporation27
Smart Work for a Smarter Planet
Dong Energy redefines Quality of Service with new Intelligent Utility Network
Smart Devices Intelligent Management of Physical Assets Grid Integration with Existing IT Systems and Applications
GeneratingPlant
Residence
SOA-based Control Center
Problem Detection
Response
© 2010 IBM Corporation28
Smart Work for a Smarter Planet
28
Smarter Industry Interconnection Turns Information into Power at DONG Energy
Real-time instrumentation
and smart interconnection
BENEFITS: 25-50% reduction in outages Up to 90% savings of new capital
expenditures Fault search time reduced 33%
“"It turns out that the real key isn't the fact that we've got visibility into the grid, though that was our initial goal. It's that we now have information available on grid performance that we didn't have before. We can do a lot with that information.“ — Peter Vinter, power grid specialist, DONG Energy
© 2010 IBM Corporation29
Smart Work for a Smarter Planet
Let’s Work Smarter Together
© 2010 IBM Corporation30
Smart Work for a Smarter Planet