Warning: Don't Assume Your Business Processes Use Master Data
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1 Warning: Don't Assume Your Business Processes Use Master Data Clay Richardson September 15, Forrester Research, Inc. Reproduction Prohibited
2 Business process professionals must recognize data and process as two sides of the same coin to drive effective business transformation. 2
3 Survey of 2227 SMB and Enterprise IT decision makers 3
4 I heard this BPM thing might help us reduce costs. Survey of 2227 SMB and Enterprise IT decision makers 3
5 I heard this BPM thing might help us reduce costs. 66% BPM Survey of 2227 SMB and Enterprise IT decision makers 3
6 I heard this BPM thing might help us reduce costs. 66% BPM 64% Open Source Survey of 2227 SMB and Enterprise IT decision makers 3
7 I heard this BPM thing might help us reduce costs. 66% BPM 64% Open Source 40% SaaS Survey of 2227 SMB and Enterprise IT decision makers 3
8 BPM adoption strongest in hardest hit sectors Source: August 2010, Forrester Wave : Business Process Management Suites, Q Forrester report 4
9 BPM programs face many critical challenges. 5
10 BPM programs face many critical challenges. Building consensus and adoption 5
11 BPM programs face many critical challenges. Building consensus and adoption Growing process skills and roles 5
12 BPM programs face many critical challenges. Building consensus and adoption Growing process skills and roles Connecting process improvement to data quality 5
13 Why don t process professionals find data sexy? Source: 6
14 Why do data management professionals overlook process context? 7
15 Why do data management professionals overlook process context? Data is an IT problem business mentality 7
16 Why do data management professionals overlook process context? Leads to Data is an IT problem business mentality 7
17 Why do data management professionals overlook process context? Leads to Data is an IT problem business mentality If we build it, they will come IT mentality 7
18 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 8
19 Most teams fail to see the connection between BPM and MDM No interaction 83% Source: September 2009, Warning: Don t Assume Your Business Processes Use Master Data Forrester report 8
20 Most teams fail to see the connection between BPM and MDM No interaction 83% Limited interaction 11% Source: September 2009, Warning: Don t Assume Your Business Processes Use Master Data Forrester report 8
21 Most teams fail to see the connection between BPM and MDM No interaction 83% Limited interaction 11% Coordinated 8% Source: September 2009, Warning: Don t Assume Your Business Processes Use Master Data Forrester report 8
22 until it s too late Vicious cycle of process data failure 9
23 until it s too late 1. Master data issues unaddressed or left unresolved Vicious cycle of process data failure 9
24 until it s too late 1. Master data issues unaddressed or left unresolved 2. Garbage in, garbage out creates process confusion Vicious cycle of process data failure 9
25 until it s too late 1. Master data issues unaddressed or left unresolved 2. Garbage in, garbage out creates process confusion Vicious cycle of process data failure 3. Lack of process trust slows BPM momentum 9
26 until it s too late 1. Master data issues unaddressed or left unresolved 2. Garbage in, garbage out creates process confusion Vicious cycle of process data failure 4. Data conflicts reinforce silo d approach to process improvement 3. Lack of process trust slows BPM momentum 9
27 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 10
28 What are the risks of not connecting data quality to process context? 11
29 What are the risks of not connecting data quality to process context? Low quality data 11
30 What are the risks of not connecting data quality to process context? Business Processes Low quality data 11
31 What are the risks of not connecting data quality to process context? Process intelligence and reporting Business Processes Low quality data 11
32 What are the risks of not connecting data quality to process context? Low quality outcomes Process intelligence and reporting Business Processes Low quality data 11
33 What are the risks of not connecting data quality to process context? Low quality outcomes Process intelligence and reporting Business Processes Low quality data High quality data 11
34 What are the risks of not connecting data quality to process context? Low quality outcomes Process intelligence and reporting Business Processes Processes connected to master data Low quality data High quality data 11
35 What are the risks of not connecting data quality to process context? Low quality outcomes Process intelligence and reporting Process intelligence and reporting Business Processes Processes connected to master data Low quality data High quality data 11
36 What are the risks of not connecting data quality to process context? Low quality outcomes High quality outcomes Process intelligence and reporting Process intelligence and reporting Business Processes Processes connected to master data Low quality data High quality data 11
37 Process data management synchronizes efforts between BPM and MDM teams. 12
38 Process data management synchronizes efforts between BPM and MDM teams. 12 Process data management provides a safety net against process data failure.
39 Process data management synchronizes efforts between BPM and MDM teams. MDM Implement data governance processes for cleansing upstream data. 12 Process data management provides a safety net against process data failure.
40 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. 12 Process data management provides a safety net against process data failure.
41 IT stewards As IT stewards, data architects and process architects are critical to the success of data governance and process improvement efforts across multiple business initiatives. 13 Business-savvy Strong communicators Educators across IT Process architects
42 Business stewards Experienced business analysts and process analysts with the expertise to bridge business and IT communications often make the best business stewards. 14 IT-savvy Strong communicators Educators across the business
43 Identify similar roles across BPM and MDM initiatives MDM BPM Business Steward IT Steward Business Steward IT Steward No involvement Some involvement Full involvement 15
44 Identify similar roles across BPM and MDM initiatives MDM BPM Business Steward IT Steward Business Steward IT Steward Prioritization and business case development No involvement Some involvement Full involvement 15
45 Identify similar roles across BPM and MDM initiatives MDM BPM Business Steward IT Steward Business Steward IT Steward Prioritization and business case development Requirements analysis No involvement Some involvement Full involvement 15
46 Identify similar roles across BPM and MDM initiatives MDM BPM Business Steward IT Steward Business Steward IT Steward Prioritization and business case development Requirements analysis Business policies and standards No involvement Some involvement Full involvement 15
47 Identify similar roles across BPM and MDM initiatives MDM BPM Business Steward IT Steward Business Steward IT Steward Prioritization and business case development Requirements analysis Business policies and standards Define KPI s and metrics No involvement Some involvement Full involvement 15
48 Identify similar roles across BPM and MDM initiatives MDM BPM Business Steward IT Steward Business Steward IT Steward Prioritization and business case development Requirements analysis Business policies and standards Define KPI s and metrics Technology selection No involvement Some involvement Full involvement 15
49 Define virtuous cycle of process data management Governance Is there accountability for data quality throughout the entire lifecycle? Scoping and Assessment Are we structuring and analyzing process data across internal silos? Requirements Do process models show relationships to existing master data? Do data libraries show relationships to processes? Architecture and Solution Is our data and application architecture supporting all information requirements use cases? Monitoring Is data quality measured and monitored for business processes? Feedback 16
50 Process analysts should ask probing questions about data Source: October 2009, It's Time To Invest In Upstream Data Quality Forrester report 17
51 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 18
52 Software vendors still playing catch up on process data management 19 August 2009 Forrester TechRadar For BP&A Pros: Business Process Management Suites, Q3 2009
53 Software vendors still playing catch up on process data management 19 August 2009 Forrester TechRadar For BP&A Pros: Business Process Management Suites, Q3 2009
54 but some vendors beginning to take process data seriously 20
55 but some vendors beginning to take process data seriously 20
56 but some vendors beginning to take process data seriously IBM and Metastorm provide impressive business glossaries 20
57 but some vendors beginning to take process data seriously IBM and Metastorm provide impressive business glossaries Pega and Appian provide support for synchronizing data 20
58 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 21
59 Some vendors also embedding data quality metrics embedded into processes 22 Screenshot: Siperian BDD and Lombardi Teamworks Integration
60 Other BPM Trends To Watch Forrester Research, Inc. Reproduction Prohibited
61 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 ( 24
62 Old School BPM Suites 25
63 Old School BPM Suites Multiple disconnected process models for a single process project. 25
64 Old School BPM Suites Multiple disconnected process models for a single process project. 25
65 Old School BPM Suites Multiple disconnected process models for a single process project. 25
66 Old School BPM Suites Multiple disconnected process models for a single process project. 25
67 Old School BPM Suites Multiple disconnected process models for a single process project. 25
68 Old School BPM Suites Multiple disconnected process models for a single process project. Unified process repository for singlemodel refinement. 25
69 Old School BPM Suites Multiple disconnected process models for a single process project. Unified process repository for singlemodel refinement. Process repository 25
70 Old School BPM Suites Multiple disconnected process models for a single process project. Unified process repository for singlemodel refinement. Business view Process repository 25
71 Old School BPM Suites Multiple disconnected process models for a single process project. Unified process repository for singlemodel refinement. Business view Technical view Process repository 25
72 Old School BPM Suites Multiple disconnected process models for a single process project. Unified process repository for singlemodel refinement. Sync and Merge Business view Technical view Process repository 25
73 Social adds new layer to BPM fabric Define Create Execute Monitor Manage Optimize 26
74 Social adds new layer to BPM fabric Social Layer Define Create Execute Monitor Manage Optimize 26
75 Social adds new layer to BPM fabric Real-time, collaborative discovery Social Layer Define Create Execute Monitor Manage Optimize 26
76 Social adds new layer to BPM fabric Real-time, collaborative discovery Shared development Social Layer Define Create Execute Monitor Manage Optimize 26
77 Social adds new layer to BPM fabric Real-time, collaborative discovery Shared development Ad-hoc and dynamic routing Social Layer Define Create Execute Monitor Manage Optimize 26
78 Social adds new layer to BPM fabric Real-time, collaborative discovery Shared development Ad-hoc and dynamic routing Configurable dashboards, event streams Social Layer Define Create Execute Monitor Manage Optimize 26
79 Social adds new layer to BPM fabric Real-time, collaborative discovery Shared development Ad-hoc and dynamic routing Configurable dashboards, event streams Social Layer Define Create Execute Monitor Manage Optimize Enhancement tagging, ad-hoc path analysis 26
80 Social adds new layer to BPM fabric Real-time, collaborative discovery Shared development Ad-hoc and dynamic routing Configurable dashboards, event streams Social Layer Define Create Execute Monitor Manage Optimize Single model refinement Enhancement tagging, ad-hoc path analysis 26
81 Many social BPM patterns emerging 27
82 Many social BPM patterns emerging Collaborative Discovery Extending process discovery to include front-line business users and customers for bi-directional communication 27
83 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. 27
84 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. 27
85 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 28
86 Thank you Clay Richardson
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