the path to business transformation though business process management suites (bpms) dr. setrag...
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The Path to Business Transformation Though Business Process Management Suites (BPMS)The Path to Business Transformation Though Business Process Management Suites (BPMS)
Dr. Setrag KhoshafianVice President of Product Marketing and BPM TechnologyPegasystems Inc.
2 Pegasystems 2010
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
3 Pegasystems 2010
BPM Suites: What Are They?
BPM Suites: Who Benefits & Why
Modernization & Transformation
The Problem: Execution Gaps
5 Pegasystems 2010
Today’s Rules: Be Agile or Lose
DRIVERS • Increased Pressures • Demands for Transparency• Legislation
EFFECTSEFFECTS
Increased CostsIncreased Costs Poor ServicePoor Service Operational InefficienciesOperational Inefficiencies
Costs
Business Rule Changes
FREQUENCYMA
GN
ITU
DE
6 Pegasystems 2010
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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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.
9 Pegasystems 2010
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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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
12 Pegasystems 2010
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
14 Pegasystems 2010
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
16 Pegasystems 2010
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
18 Pegasystems 2010
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 Employm
ent
Perform background check
EnrollPayment 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
20 Pegasystems 2010
Ad-Hoc, and Collaborative Case Management
Citizen: case subject
Case Workers
Citizen: case subject
Citizen: case subject
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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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Core
Proce
ssD
ecid
e
Prese
ntIn
tegr
ate
Secur
e
Con
stra
in
Struct
ure
Com
mun
icat
eC
alcu
late
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
28 Pegasystems 2010
Survey QuestionWho Benefits from BPM Suites?
A) Business/Program Areas
B) Citizens
C) Knowledge Workers
D) IT
E) Everyone – All of the above
29 Pegasystems 2010
• 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
30 Pegasystems 2010
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
31 Pegasystems 2010
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
33 Pegasystems 2010
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
34 Pegasystems 2010
Legacy 1 Legacy 2 Legacy 3 Legacy 4
Service Service Service Service
Infrastructure
Composite Service Composite Service Composite Service
Business Performance Objectives
Bo
tto
m-U
p
Arc
hit
ect
ure
Imp
rove
me
nts
Top
-Do
wn
Bu
sine
ss Pe
rform
an
ce
Imp
rove
me
nts
BPM Enterprise Repository
Top Down BPM Suite Rhythm of Change
BPM Suite
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Incr
ease
d B
usin
ess
Va
lue
Incr
ease
d A
gili
ty
Gui
ded
Hum
an I
nter
actio
ns
Building for Change
Legacy 1 Legacy 2
Service Service Service Service
Infrastructure
Legacy 3 Legacy 4
BPM Suite
ConnectorsServices
36 Pegasystems 2010
Impact/Risk Matrix:
Less Risk More Risk
Les
s
Vis
ibili
tyH
igh
V
isib
ility
Complexity
Bu
sin
ess
Vis
ibili
ty
Think Big …. Start SmallSlivers
37 Pegasystems 2010
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
39 Pegasystems 2010
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!