© 2011 ibm corporation process improvement ~ patterns for success david keyes bpm sales executive...

© 2011 IBM Corporation

Process Improvement ~ Patterns for Success

David KeyesBPM Sales Executive

IBM Software Group, North America

Agenda The Complexity Challenge

Patterns for Success1. Business Process Management2. Business Rules Management 3. BPM plus Business Rules Mgmt4. Business Events with Business Rules

Break

BPM in Action - Demo

11 Habits of Highly Successful BPM Projects

2

Complexity

IT Budget

Complexity

IT Budget

Have You Experienced this Issue?

4

CommercialLOB

AutoLOB

InternalEmployees

InsuranceCarrier

Sales

Finance

Marketing

Complexity exists internally within organizations……

HomeLOB

5

AutoLOBCommercial

LOB

HomeLOB

InsuranceCarrier

Agents & Producers

Partners &Re-insurers

Con-sumers

Out- sourced Service

Providers

Financial Institutions 3rd Party

Services

DMV

Con-sumers

InternalEmployees

To orchestrate human tasks…

… and for scalable transactions…

… to increase visibility…

… everything you need to manage end-to-end business networks

… to manage exceptions and cases…

….and externally within the broader business network Companies need end-to-end process management

6

Can Your Processes Handle Change, Uncertainty and Complexity?

Transformation Today Means:

Simpler Business Led Change

Full Process Visibility and Governance

Optimized Processes and Decisions

Agile Processes and Decisions with Business Process Management

7

Account Opening

Campaign Management

Claims Processing

Vendor On-

boarding

Order Fulfillment

Customer Problem Handling

Process is everywhere

9

Agenda The Complexity Challenge

Patterns for Success1. Business Process Management2. Business Rules Management 3. BPM plus Business Rules Mgmt4. Business Events with Business Rules

Break

BPM in Action - Demo

11 Habits of Highly Successful BPM Projects

11

Key Technologies for Process Improvement

• Business Process Management improves the orchestration of people and systems• Business Event Processing improves situational awareness and response• Business Rule Management improves the quality of automated decisions • Visibility and Analytics enables continuous process improvement

Correlate business events and detect critical business

situations

Orchestrate business processes and human task applications

Automate high-volume operational decisions with business rules

Derive deep understanding of data with analytics


Monitor and report on data to provide real-time insight


data

data

data

data

Event

EventEvent

12

• Business Process Management improves the orchestration of people and systems




data

data

data

data

ApplicationServices and Data


Process is invoked

Solution Pattern 1Business Process Management

13

ExecutiveManagement

CustomerService

InvoiceReconciliationTeams

Finance and Ops

AccountAdministration 1. Unstructured Tasks and

Communication (ex Paper or email)

2. Inefficient Working Environment Spans Systems

3. Inconsistent Prioritization

4. Incomplete or Inaccurate Data Flow Between Systems

5. Lack of Control Over System and Business Events (Exceptions)

6. Poor Visibility Into Process Performance

1

2

3

5

4

6

Typical process problems

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1

2

3

4

5

6

ExecutiveManagement

CustomerService

Risk ManagementTeams

Financeand Ops

Account Administration 1. Automate workflow &

decision making

2. Reduce errors and improve consistency

3. Standardize resolution across geographies

4. Leverage existing systems and data

5. Monitor for business events and initiate actions

6. Real-time visibility and process control

Customer Benefits:

• Huge Reduction in Manual Work, Errors

• Faster, More Consistent Issue Resolution

• Easier to Manage the Business

• Consistent Case Handling

BPM brings order to the chaos

1

2

3

4

5

6

15

BPM Leverages a Service Oriented Architecture (SOA)

– BPM can abstract the “business process” from underlying systems and services.

– Over time, IT can consolidate those services into a common set of services within one SOA layer.

– Users of the process are not affected as services and systems are merged, replaced, or updated.

Systems

SOA

BPM

ExecutiveManagement

CustomerService

InvoiceReconciliation

Teams

Finance& Ops

AccountAdministration

Process Improvement Requires A “Third Way”

Flexibility

Low cost/time

BuildBuild

BuyBuy

CustomizedUniqueHigh TCOIT bandwidth Reduced time

Initial CostStandard Feature setReliance on vendorResponse to Change

“Third Way”

++-- +

+---

Process-improvement requirements are likely to be unique, which favors build rather than buy. And the timeframes and costs of both are often not compatible with process improvement, so a ‘third way’ is required.

BPM

Individual Processes

Pro

cess C

om

ple

xity

22.5%22.5%22.5%22.5%

75.0%75.0%75.0%75.0%

2.5%2.5%2.5%2.5%

The Full Spectrum of BPM is Daunting

Highly complex processes typically found in global enterprises

Somewhat complex processes common to global & mid-market companies

Simple processes common to all sizes of businesses

IBMIBMBusiness Business Process Process ManagerManager

IBM Blueworks Live

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• Figure it out yourself

• Lock the team in a conference room for day(s)

• Sticky notes

• Butcher paper

• Whiteboard drawings

• Back and forth till you finally understand your process

• Scribe it all down

• Convert it to a diagram/drawing

How is Process Discovery done today?

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Accelerate Change by Improving the Way You WorkStreamline, document, and run processes

The best way to engage line of business users in process discovery, documentation, and simple process automation

Gain control and insight• Instant dashboards for visibility

• Reporting for improved governance

Anyone can improve a process • Automate work run through email

• Easily document processes

Collaborate for better results• Team up in secure private workspace

• Leverage public expert community

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Simple. Social. SaaS.Simple. Social. SaaS.http://BlueworksLive.com

http://blueworkslive.com/

Business challenges at Lincoln Trust CompanyLeading independent provider of trust and custodial services

Paper overload

• 100,000+ client requests per month each generating a paper-based process instance

Poor IT-business relationship

• Paper problem was understood but limited IT/Business collaboration prevented improvement

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Partnering for process improvementLincoln Trust developed an aligned process focus across the company

Joint LOB-IT executive steering committee and a small BPM team developed a 2-part strategy for process improvement:

• Common “shared process” for document imaging and automation using content management tools

• Removed physical paper from 145 company processes

• Business teams created “as-is” and “to-be” process models using IBM Blueworks Live

• IT teams implemented automated workflows for 15 processes including service requests, plan establishment, and distributions

Quickly address key pain point

Business-led automation for full business processes1 2

22

Process Improvement Benefits at Lincoln Trust

Results

• $2.2 million in savings to date

• 120% ROI in one year

• 25% increase in employee productivity

• 50% - 75% reduction in cycle times

Best Practices

• Build a partnership between business and IT

• Focus on business value – be willing to trade-off for an initial project

• Include process analysis skills on BPM teams, but don’t over-analyze

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Visibility

Simple, easy-to-use modeling using standard BPMN

Immediate “playback” for rapid collaboration

Process rule editor uses ILOG language

Real-time process scoreboards

“Heat maps” show bottlenecks in process model

Real-time reports delivered within process “coaches”

Simplicity

Industry standard BPEL orchestration

Built-in ESB and integration adapters

Transaction support

Power

24

Introducing a new solution to a complex problemEmbrace complexity, adapt quickly and exceed expectations

Single repository of all process assets

“Toolkits” for sharing assets

Simple snapshot versioning (1-click)

Centralized deployment control center (1-click)

Governance

Out-of-box Process Portal

ConfigurableBusiness Space

Optional Microsoft Add-ons

BPMN Rules Monitoring BPEL ESB

Process Server

Process Designer

Governance of Entire BPM Life Cycle

Shared AssetsVersioned Assets

Server Registry

DesignDeployImprove

Measure

Business & IT Authors IT Developers

Authors & Administrators

Process End-Users Process Owners

Integration Designer

Process Center

BPM Repository

25

IBM Business Process Manager V7.5

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IBM Business Process Manager Leverages SOA Infrastructure

Systems

SOA

BPM

ExecutiveManagement

CustomerService

InvoiceReconciliation

Teams

Finance& Ops

AccountAdministration

•

IBM Business Process Manager Advanced Edition

IBM Business Process Manager Advanced Edition

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Different configurations match typical entry points or stages in a company’s BPM program

Extended support for high-volume process automation, with high quality-of-service

Built-in SOA components for extensiveenterprise-wide service integration, orchestration

Complete set of advanced BPM capabilities

Configured for typical BPM projects For multi-project improvement programs,

with high business involvement Basic system integration support Rapid time-to-value: improved user productivity

For small number of users – single server,no clustering

Low entry price Install in a few clicks

Configured for first BPM project

Advanced

Standard

Express

Solution Pattern 2Business Rules Management

• Business Rules Management improves the quality of automated decisions • Applications and processes use decision results

Business Applications and Processes




data

data

data

data

Application is invoked



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Where Business Rules Typically Exist

Applications

ProcessesPeople

Documents

Business Rule Management System

Rules are Defined, Analyzed

and MaintainedUser Tools

Rules are Stored and

Shared

Rule Repository

Rules are Deployed, Executed

and MonitoredRule Server

Automate Highly Variable Decisions with Precision WebSphere ILOG Business Rule Management System

• Eliminate decision silos• Make decision logic

accessible to Business and IT• Implement fine-grained,

context-specific logic

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Managing Rules in Microsoft Word and Excel!Managing Rules in Microsoft Word and Excel!

Business Rules Management using Tools Familiar to the Business to Promote Collaboration

• Business Rules Management improves the quality of automated decisions • Business Process Management improves the orchestration of people and systems






data

data

data

data



Process is invoked

Solution Pattern 3Combining BPM and Business Rules Mgmt

Automate high-volume operational decisions with business rules32

Two-Pronged Approach to Process Improvement

Process Management Rules Management

• Defines and orchestrates the end-to-end process

• Combines automation with user interaction

• Is fundamentally concerned with operational efficiency of the organization

• Defines and executes specific decision points in processes and applications

• Is focused on automating and improving decisions

• Is fundamentally concerned with the operational intelligence of the organization

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BRMS Enables a Consistent Implementation of Business Policies

BRMS

User Tools

Applications & Processes Business Decisions

Transparent Decision Service

Rule Repository

Execution ServerExecution Server

Traditional/Vertical Application

Streamline processes Facilitate change Re-use decision assets Maximize automation Improve governance

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Process ManagementSelected WebSphere BPM to:• Improve operational efficiency & accuracy• Improve process orchestration across multiple

systems and decrease process costs• Deliver end-to-end process visibility

Rules ManagementSelected WebSphere ILOG JRules for:• Straight-through eligibility determinations• Compliance enforcement• Accelerate implementation of decision changes

New Enrollment System Benefits• Time-to-market gains of over 50%• Ability to introduce new policies into systems in

days rather than weeks or months• Reduction in enrollment time and costs• Increased business and IT collaboration• Comprehensive audit trail

Situation• Multiple legacy systems• Highly manual, disjointed processes• Difficulty in adapting systems to

meet new regulatory and customer requirements

Case Study: HealthNowImproved Member Enrollment Processing

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“…enabled us to automate, optimize and monitor critical business decisions within core processes”

John Walsh, Chief Enterprise Architect, HealthNow New York Inc

Common Use Cases

• Improve Workflow– Claims handling, end-to-end loan

origination, grants approval, customer service / call center, engineering change management

• Handle Business Exceptions– Billing disputes, invoice reconciliation,

distressed shipment rescue, proactive error reduction

• Compliance Oversight– Disclosure filings, legal reviews, permit

approvals

• Improve Visibility– Bridge siloed applications, unified user

interface, end-to-end monitoring

• Straight-through Processing– Eligibility determinations, pricing

calculations, promotional offer selection, claims assessment and benefits determination

• Risk Mitigation– Credit eligibility determination, liability

calculations, fraud assessment, product configuration review

• Compliance Oversight– Multi-level regulatory requirements

enforcement, contractual terms administration, legal document selection

• Decision Support– Service level assignment and case

prioritizations, product recommendations, self-service problem resolution

Process Management Rules Management

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Solution Pattern 4 Combining Business Events and Business Rules

• Business Events Processing improves situational awareness and response• Business Rules Management improves the quality of automated decisions

Correlate business events and detect critical business

situations





data

data

data

data

Event

EventEvent



37

Business Event Processing and Business Rules Management

Decide (BRMS)

Decide (BRMS)

Evaluations Correlations

Event Sources

Detect (BEP)

Detect (BEP)

Actions Actions

BEP - Detects when events or patterns of events occur to notify people or systems to take action

BRMS - Decides business outcome through execution of business rules against available data

Together : Additional Insight for ActionTogether : Additional Insight for Action

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Can be used for fully automated

interactions, or…

… to provide decision guidance

for personal interactions with

customers

…for decision support in the back-

office, or…

WebSphere Decision ServerCombined rules and events capabilities to power flexible decision management solutions

• Major American Utility Company delivers electricity to 2 million customers in a 5,000-square-mile area

• Smart Grid is a top priority:

– Business Events Processing is used for detecting events and event patterns from Smart Meters as they occur

– Business Rules Management increases automation of follow-up decisions on Smart Meter alerts, based on the collective knowledge of operational subject matter experts

WebSphere Decision Server combines WebSphere Business Events and WebSphere ILOG JRules

• Detect critical events across the business network and automate precise, context-specific decisions

WebSphere Decision Server combines WebSphere Business Events and WebSphere ILOG JRules

• Detect critical events across the business network and automate precise, context-specific decisions

Automate and Improve High-Volume Operational DecisionsIBM WebSphere Decision Server v7.1

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“Complexity should not be viewed as a burden to be

avoided; we see it as a catalyst and an accelerator to create innovation and new ways of

delivering value.”Juan Ramon Alaix, President,

Pfizer Animal Health

Think big

Start small

Scale fast

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© 2011 ibm corporation process improvement ~ patterns for success david keyes bpm sales executive...

Documents

business processes

business rules management

business events

simpler business

business networks

business rules mgmt

data process

critical business situations