© 2010 Forrester Research, Inc. Reproduction Prohibited© 2009 Forrester Research, Inc. Reproduction Prohibited1
Warning: Don't Assume Your Business Processes Use Master Data
Clay Richardson
September 15, 2010
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Business process professionals must recognize data and
process as two sides of the same coin to drive effective
business transformation.
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Survey of 2227 SMB and Enterprise IT decision makers
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Survey of 2227 SMB and Enterprise IT decision makers
I heard this BPM thing might help us reduce
costs.
© 2010 Forrester Research, Inc. Reproduction Prohibited3
66%BPM
Survey of 2227 SMB and Enterprise IT decision makers
I heard this BPM thing might help us reduce
costs.
© 2010 Forrester Research, Inc. Reproduction Prohibited3
66%BPM
64%Open
Source
Survey of 2227 SMB and Enterprise IT decision makers
I heard this BPM thing might help us reduce
costs.
© 2010 Forrester Research, Inc. Reproduction Prohibited3
66%BPM
64%Open
Source40%SaaS
Survey of 2227 SMB and Enterprise IT decision makers
I heard this BPM thing might help us reduce
costs.
© 2010 Forrester Research, Inc. Reproduction Prohibited4
BPM adoption strongest in hardest hit sectors
Source: August 2010, “Forrester Wave™: Business Process Management Suites, Q3 2010” Forrester report
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BPM programs face many critical challenges.
© 2010 Forrester Research, Inc. Reproduction Prohibited5
BPM programs face many critical challenges.
Building consensus and
adoption
© 2010 Forrester Research, Inc. Reproduction Prohibited5
BPM programs face many critical challenges.
Building consensus and
adoption
Growing process skills
and roles
© 2010 Forrester Research, Inc. Reproduction Prohibited5
BPM programs face many critical challenges.
Building consensus and
adoption
Growing process skills
and roles
Connecting process
improvement to data quality
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Why don’t process professionals find data sexy?
Source: http://www1.pictures.gi.zimbio.com/Chanel+Cruise+2010+Fashion+Show+-Fcz3Iv1SeLl.jpg
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Why do data management professionals overlook process context?
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Why do data management professionals overlook process context?
“Data is an IT problem” business
mentality
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Why do data management professionals overlook process context?
“Data is an IT problem” business
mentality
Leads to…
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Why do data management professionals overlook process context?
“If we build it, they will come” IT
mentality
“Data is an IT problem” business
mentality
Leads to…
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Most teams fail to see the connection between BPM and MDM…
Source: September 2009, “Warning: Don’t Assume Your Business Processes Use Master Data” Forrester report
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Most teams fail to see the connection between BPM and MDM…
83%No interaction
Source: September 2009, “Warning: Don’t Assume Your Business Processes Use Master Data” Forrester report
© 2010 Forrester Research, Inc. Reproduction Prohibited8
Most teams fail to see the connection between BPM and MDM…
83%No interaction
Limited interaction 11%
Source: September 2009, “Warning: Don’t Assume Your Business Processes Use Master Data” Forrester report
© 2010 Forrester Research, Inc. Reproduction Prohibited8
Most teams fail to see the connection between BPM and MDM…
83%No interaction
Limited interaction 11%
Coordinated 8%
Source: September 2009, “Warning: Don’t Assume Your Business Processes Use Master Data” Forrester report
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… until it’s too late
Vicious cycle of process data
failure
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… until it’s too late
1. Master data issues unaddressed or left unresolved
Vicious cycle of process data
failure
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… until it’s too late
2. Garbage in, garbage out creates process confusion
1. Master data issues unaddressed or left unresolved
Vicious cycle of process data
failure
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… until it’s too late
2. Garbage in, garbage out creates process confusion
3. Lack of process trust slows BPM momentum
1. Master data issues unaddressed or left unresolved
Vicious cycle of process data
failure
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… until it’s too late
2. Garbage in, garbage out creates process confusion
3. Lack of process trust slows BPM momentum
4. Data conflicts reinforce silo’d approach to process improvement
1. Master data issues unaddressed or left unresolved
Vicious cycle of process data
failure
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MDM teams only focus on cleaning downstream data – after the fact.
Source: October 2009, “It's Time To Invest In Upstream Data Quality” Forrester report
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What are the risks of not connecting data quality to process context?
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What are the risks of not connecting data quality to process context?
Low quality data
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What are the risks of not connecting data quality to process context?
Low quality data
Business Processes
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What are the risks of not connecting data quality to process context?
Low quality data
Business Processes
Process intelligence and reporting
© 2010 Forrester Research, Inc. Reproduction Prohibited11
What are the risks of not connecting data quality to process context?
Low quality data
Business Processes
Process intelligence and reporting
Low quality outcomes
© 2010 Forrester Research, Inc. Reproduction Prohibited11
What are the risks of not connecting data quality to process context?
Low quality data
Business Processes
Process intelligence and reporting
High quality data
Low quality outcomes
© 2010 Forrester Research, Inc. Reproduction Prohibited11
What are the risks of not connecting data quality to process context?
Low quality data
Business Processes
Process intelligence and reporting
High quality data
Processes connected to master data
Low quality outcomes
© 2010 Forrester Research, Inc. Reproduction Prohibited11
What are the risks of not connecting data quality to process context?
Low quality data
Business Processes
Process intelligence and reporting
High quality data
Processes connected to master data
Process intelligence and reporting
Low quality outcomes
© 2010 Forrester Research, Inc. Reproduction Prohibited11
What are the risks of not connecting data quality to process context?
Low quality data
Business Processes
Process intelligence and reporting
High quality data
Processes connected to master data
Process intelligence and reporting
Low quality outcomes
High qualityoutcomes
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Process data management synchronizes efforts between BPM and MDM teams.
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Process data management synchronizes efforts between BPM and MDM teams.
Process data management provides a safety net against process data failure.
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Process data management synchronizes efforts between BPM and MDM teams.
MDM
Implement data governance
processes for cleansing
upstream data.
Process data management provides a safety net against process data failure.
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Process data management synchronizes efforts between BPM and MDM teams.
MDM
Implement data governance
processes for cleansing
upstream data.
BPM
Ownership for data quality
throughout all phases of
implementation.
Process data management provides a safety net against process data failure.
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IT stewards
Business-savvy Strong communicators
Educators across ITProcess architects
As IT stewards, data architects and process architects are critical to the success of data governance and process improvement efforts across multiple business initiatives.
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Business stewards
IT-savvy Strong communicators
Educators across the business
Experienced business analysts and process analysts with the expertise to bridge business and IT communications often make the best business stewards.
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Identify similar roles across BPM and MDM initiatives
No involvement Some involvement Full involvement
BusinessSteward
ITSteward
MDM
BusinessSteward
ITSteward
BPM
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Identify similar roles across BPM and MDM initiatives
No involvement Some involvement Full involvement
BusinessSteward
ITSteward
MDM
BusinessSteward
ITSteward
BPM
Prioritization and business case development
© 2010 Forrester Research, Inc. Reproduction Prohibited15
Identify similar roles across BPM and MDM initiatives
No involvement Some involvement Full involvement
BusinessSteward
ITSteward
MDM
BusinessSteward
ITSteward
BPM
Prioritization and business case development
Requirements analysis
© 2010 Forrester Research, Inc. Reproduction Prohibited15
Identify similar roles across BPM and MDM initiatives
No involvement Some involvement Full involvement
BusinessSteward
ITSteward
MDM
BusinessSteward
ITSteward
BPM
Prioritization and business case development
Requirements analysis
Business policies and standards
© 2010 Forrester Research, Inc. Reproduction Prohibited15
Identify similar roles across BPM and MDM initiatives
No involvement Some involvement Full involvement
BusinessSteward
ITSteward
MDM
BusinessSteward
ITSteward
BPM
Prioritization and business case development
Requirements analysis
Define KPI’s and metrics
Business policies and standards
© 2010 Forrester Research, Inc. Reproduction Prohibited15
Identify similar roles across BPM and MDM initiatives
No involvement Some involvement Full involvement
BusinessSteward
ITSteward
MDM
BusinessSteward
ITSteward
BPM
Technology selection
Prioritization and business case development
Requirements analysis
Define KPI’s and metrics
Business policies and standards
© 2010 Forrester Research, Inc. Reproduction Prohibited16
Governance
Scoping and Assessment
Requirements
Architecture and Solution
Monitoring
Define virtuous cycle of process data management
Is there accountability for data quality throughout the entire lifecycle?
Are we structuring and analyzing process data across internal silos?
Do process models show relationships to existing master data? Do data libraries show relationships to processes?
Is our data and application architecture supporting all information requirements use cases?
Is data quality measured and monitored for business processes?
Feedback
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Process analysts should ask probing questions about data…
Source: October 2009, “It's Time To Invest In Upstream Data Quality” Forrester report
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Data quality teams should map data operations back to key business processes
Source: October 2009, “It's Time To Invest In Upstream Data Quality” Forrester report
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Software vendors still playing catch up on process data management…
August 2009 “Forrester TechRadar™ For BP&A Pros: Business Process Management Suites, Q3 2009”
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Software vendors still playing catch up on process data management…
August 2009 “Forrester TechRadar™ For BP&A Pros: Business Process Management Suites, Q3 2009”
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… but some vendors beginning to take process data seriously
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… but some vendors beginning to take process data seriously
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… but some vendors beginning to take process data seriously
IBM and Metastorm provide impressive business glossaries
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… but some vendors beginning to take process data seriously
IBM and Metastorm provide impressive business glossaries
Pega and Appian provide support for synchronizing data
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First point of process data convergence: “business glossaries”
• Simplified data modeling and definition for process teams
• Connected to existing business glossaries defined by data architects and librarians
• Ability for process analysts to associate CRUD actions with specific activities
• But more needs to be done…
Source: IBM
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Some vendors also embedding data quality metrics embedded into processes
Screenshot: Siperian BDD and Lombardi Teamworks Integration
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Other BPM Trends To Watch
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BPM is now the language of IT-to-BT
Vertical/ functional
Functional/process overlays
Process/functional overlays
Service/process organization
From traditional LOB and functional management
To Horizontal Centers of Excellence
Source: BPM Focus (www.bpmfocus.com)
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Old School BPM Suites
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Old School BPM Suites
Multiple disconnected process models for a single process project.
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Old School BPM Suites
Multiple disconnected process models for a single process project.
© 2010 Forrester Research, Inc. Reproduction Prohibited25
Old School BPM Suites
Multiple disconnected process models for a single process project.
© 2010 Forrester Research, Inc. Reproduction Prohibited25
Old School BPM Suites
Multiple disconnected process models for a single process project.
© 2010 Forrester Research, Inc. Reproduction Prohibited25
Old School BPM Suites
Multiple disconnected process models for a single process project.
© 2010 Forrester Research, Inc. Reproduction Prohibited25
Old School BPM Suites
Multiple disconnected process models for a single process project.
Unified process repository for single-model refinement.
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Old School BPM Suites
Multiple disconnected process models for a single process project.
Unified process repository for single-model refinement.
Process repository
© 2010 Forrester Research, Inc. Reproduction Prohibited25
Old School BPM Suites
Multiple disconnected process models for a single process project.
Unified process repository for single-model refinement.
Process repository
Business view
© 2010 Forrester Research, Inc. Reproduction Prohibited25
Old School BPM Suites
Multiple disconnected process models for a single process project.
Unified process repository for single-model refinement.
Process repository
Business view
Technical view
© 2010 Forrester Research, Inc. Reproduction Prohibited25
Old School BPM Suites
Multiple disconnected process models for a single process project.
Unified process repository for single-model refinement.
Process repository
Business view
Technical view
“Sync and
Merge”
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Social adds new layer to BPM fabric
Define Execute MonitorCreate
Manage Optimize
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Social adds new layer to BPM fabric
Define Execute MonitorCreate
Manage OptimizeSoc
ial L
ayer
© 2010 Forrester Research, Inc. Reproduction Prohibited26
Social adds new layer to BPM fabric
Define Execute MonitorCreate
Manage OptimizeSoc
ial L
ayer
Real-time,collaborative
discovery
© 2010 Forrester Research, Inc. Reproduction Prohibited26
Social adds new layer to BPM fabric
Define Execute MonitorCreate
Manage OptimizeSoc
ial L
ayer
Real-time,collaborative
discovery
Shareddevelopment
© 2010 Forrester Research, Inc. Reproduction Prohibited26
Social adds new layer to BPM fabric
Define Execute MonitorCreate
Manage OptimizeSoc
ial L
ayer
Ad-hoc anddynamic routing
Real-time,collaborative
discovery
Shareddevelopment
© 2010 Forrester Research, Inc. Reproduction Prohibited26
Social adds new layer to BPM fabric
Define Execute MonitorCreate
Manage OptimizeSoc
ial L
ayer
Ad-hoc anddynamic routing
Real-time,collaborative
discovery
Shareddevelopment
Configurabledashboards, event
streams
© 2010 Forrester Research, Inc. Reproduction Prohibited26
Social adds new layer to BPM fabric
Define Execute MonitorCreate
Manage OptimizeSoc
ial L
ayer
Enhancement tagging,ad-hoc path analysis
Ad-hoc anddynamic routing
Real-time,collaborative
discovery
Shareddevelopment
Configurabledashboards, event
streams
© 2010 Forrester Research, Inc. Reproduction Prohibited26
Social adds new layer to BPM fabric
Define Execute MonitorCreate
Manage OptimizeSoc
ial L
ayer
Singlemodel
refinement
Enhancement tagging,ad-hoc path analysis
Ad-hoc anddynamic routing
Real-time,collaborative
discovery
Shareddevelopment
Configurabledashboards, event
streams
© 2010 Forrester Research, Inc. Reproduction Prohibited27
Many social BPM patterns emerging
© 2010 Forrester Research, Inc. Reproduction Prohibited27
Many social BPM patterns emerging
Collaborative Discovery – Extending process discovery to include front-line business users and customers for bi-directional communication
© 2010 Forrester Research, Inc. Reproduction Prohibited27
Many social BPM patterns emerging
Collaborative Discovery – Extending process discovery to include front-line business users and customers for bi-directional communication
Shared Development - Extending development to include business stakeholders and non-developers as equal partners in process development.
© 2010 Forrester Research, Inc. Reproduction Prohibited27
Many social BPM patterns emerging
Collaborative Discovery – Extending process discovery to include front-line business users and customers for bi-directional communication
Shared Development - Extending development to include business stakeholders and non-developers as equal partners in process development.
Process Guidance – Tapping internal and external social networks to provide users with real-time guidance on how best to complete a specific process step or activity.
© 2010 Forrester Research, Inc. Reproduction Prohibited28
Conclusions
Process improvement and data quality are intimately linked and must work hand-in-hand
Connect process governance and data governance to minimize the risk of process data failure
Review and synchronize key tasks and roles across process improvement and master data initiatives
Develop a shared business glossary across business process and master data teams
© 2010 Forrester Research, Inc. Reproduction Prohibited29
Thank you
Clay Richardson
www.forrester.comtwitter: @passion4process