What's New in BPM Technologies and Why Business Process Improvement Leaders Should Care. Michele Cantara Janelle Hill

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1 What's New in BPM Technologies and Why Business Process Improvement Leaders Should Care Michele Cantara Janelle Hill

2 Welcome! Here s how to participate in today s webinar You can listen to the presentation using your computer s speaker system as the default (VoIP). Or dial the conference line by selecting Use Telephone in the webinar audio pane. Have a question for the presenter(s)? Type it into the Questions pane we will answer as many as time permits. A recording of this presentation will be sent to you within 48 hours. If you would like a copy of today s presentation, contact your Gartner Account Executive or us at: GartnerWebinars@gartner.com. Please note you may be polled during the webinar; only aggregate answers will appear.

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4 What's New in BPM Technologies and Why Business Process Improvement Leaders Should Care Michele Cantara Janelle Hill

5 Key Issues 1. What are BPM-enabling technologies (BPMTs)? 2. How many BPMTs do you need? 3. How should clients evaluate business process management suites (BPMSs)?

6 Question: What is Business Process Management (BPM)? Answer: Key Tenets of BPM BPM is a management discipline that treats processes as assets that directly contribute to enterprise performance Visibility Accountability by driving operational excellence and business agility. Adaptability

7 BPM-Enabling Technologies Definition: A BPM-enabling technology (BPMT) is one that makes one or more aspects of a process explicit via abstract models. Explicit models are easily understood and readily changed. Abstract models are independent of (separate from) their implementation. Source: "The Changing Concept of Model-Driven Approaches," G

8 Explicit Process Models: The New Imperative for Process Agility Why Bother? Models provide a common language and, thus, common understanding. Process and work item visibility (via the model as UI) creates shared context for achieving objectives. - Shared context means higher process performance results. Models are easier to change than than the real thing they represent. (BPMS models are easier to change than code.)

9 BPMT Examples Technology/Product Category Business Rule Engines (BRE and BRMS) Process Modeling Tools (EA and BPA tools) Process Discovery Tools (BAM dashboards, APD tools) Simulation/Optimization Engines Business Process Management Suite What's Explicit? Decision criteria Activity sequences, functional roles, information flows, decision points, etc. Performance levels and patterns of work item execution Resource dependencies Technical implementations of activities, flows, actors, decisions, etc. (e.g., data, services, workflows, UIs and rules)

10 BPM-Enabling Technologies Converge Into BPM Suites Process Component Registry/Repository System Management and Administration Model-Driven Composition Environment Business Rule Engine Simulation and Optimization Process Execution and State Mgmt. Engine Document and Content Interaction User and Group Interaction BAM and Business Event Support Basic Connectivity

11 A BPMS Model Is More Than a Picture: It Drives the Runtime Engine The model and its implementation stay synchronized.

12 Key Issues 1. What are BPM-enabling technologies (BPMTs)? 2. How many BPMTs do you need? 3. How should clients evaluate business process management suites (BPMSs)?

13 Match Tools to Phases of the Process Improvement Cycle The Process of Process Improvement Define Optimize Design Analyze Discover Simulate Monitor Execute Deploy

14 BPMTs That Aid Comprehension (Beyond Design Time) Diagramming Tools Butcher Block Paper and Sticky Notes Visio/Visio "Plus" Business Process Analysis Tools - Individual Efforts - Collaborative Modeling Analyze Optimize Define Discover Design Simulate Monitor Execute Deploy

15 BPMTs That Aid Comprehension (Beyond Design Time) Diagramming and Modeling Tools Butcher Block Paper and Sticky Notes Visio/Visio "Plus" Business Process Analysis Tools - Individual Efforts - Collaborative Modeling Analyze Optimize Define Discover Design Simulate Measurement/Benchmarking Tools Stopwatch and Clipboard BAM Tools Automated Process Discovery Tools Pattern Discovery Execution Flow Analysis Monitor Execute Deploy

16 BPMTs That Aid Comprehension (Beyond Design Time) Diagramming and Modeling Tools Butcher Block Paper and Sticky Notes Visio/Visio "Plus" Business Process Analysis Tools - Individual Efforts - Collaborative Modeling Measurement/Benchmarking Tools Stopwatch and Clipboard BAM Tools Automated Process Discovery Tools Pattern Discovery Execution Flow Analysis Process Modeling and Analysis BPA Tools EA Tools Analyze Optimize Monitor Define Discover Execute Design Deploy Simulate

17 BPMTs That Synchronize Changes in the Model With Its Execution Tools to Support Continuous Process Improvement BRE/BRMS BPMS Simulation/Optimization Engines Analyze Optimize Monitor Define Discover Execute Design Deploy Simulate

18 Key Issues 1. What are BPM-enabling technologies (BPMTs)? 2. How many BPMTs do you need? 3. How should clients evaluate business process management suites (BPMSs)?

19 Where Are BPMSs Most Appropriate? Build to Last Business Roles Dominate Change Control Build for Change Consider BPM BPM Sweet Spot Infrequent Process Change Question Value of BPM Consider BPM Frequent or Continuous Process Change IT Roles Dominate Change Control

20 Top Four BPMS Usage Scenarios Source: "Using the Top Four BPMS Usage Scenarios to Evaluate a Vendor's BPMS Strategy," G Specific Process-Based Solution Business buyer (supported by IT) Rapid time to solution for new application Extension to existing applications Goal is broader, and better coordination of mission-critical process Continuous Process Improvement Business and IT as buyer BPM is a program Goal is business agility for key processes Redesign for a Process-Based SOA IT and business buyer Improve visibility and change management Goal is application rationalization and modernization Business Transformation Senior business executive as buyer Rethink entire business process Goal is to make a "game changing" play

21 Gartner's "Four Corners Framework" Overlaid With Top Four BPMS Usage Scenarios Build to Last Business Roles Dominate Change Control Build for Change Business Transformation Business Transformation Continuous Process Improvement Infrequent Process Change Process-Based Solutions Process-Based Solutions Process-Based Solutions Frequent or Continuous Process Change Process-Driven SOA Compositions IT Roles Dominate Change Control

22 The Need for BPMTs Varies with BPM Maturity Level Adaptive Enterprise More Mature BPM Early BPM Pre-BPM Visibility expands to include external parties External parties participate in process change Visibility of internal KPIs/SLAs and those of external parties. Organization rapidly adapts to business events Live business model across functions/orgs Clear ownership and transparency for each KPI. Business stakeholders begin to change processes. Process change takes days/week vs. months. Instrumented processes monitored in real-time Business Process Model and/or BAM Execs have better visibility Rapid iterations to optimal process Insight into process problems and areas for change Periodic reports by function Exec responsibility with little visibility Risk exposure is high Extensive IT backlog. Process measures don t match desired metrics. Need for BPMS

23 Feel the Difference: Guidelines for a BPMS Proof of Concept Invite three vendors Provide vendors with your "to be" process design - External-facing - Not highly automated today - Coordinates interactions between people, one to two systems and information - Measurable improvement Execute on your premises, your infrastructure Two days per vendor Work side-by-side with vendor rep Demonstrate the solution to business stakeholders Challenge the vendor to demonstrate live specific kinds of changes Scaling the solution is least important.

24 Recommendations / Summary 1. Resist the normal temptation to buy a tool early in your discovery phase. Wait until you understand what you most need in a tool. 2. Pick tools that business process experts find most intuitive. 3. Consider low-cost diagramming tools to gain broad participation across business roles and subject matter experts. 4. Advance your use of BPMTs only as you mature with BPM disciplines.

25 Related Gartner Research Research Index: A Guide to Principles of Business Process Management, G BPM Research Index: Business Process Management Technologies, G Distinguishing the BPMS From the SOA Application Infrastructure, G Composition and BPM Will Change the Game for Business System Design, G Magic Quadrant for Business Process Management Suites," G Flow Management in SOA: One Size Doesn't Fit All, G "Maturity Assessment for Business Process Improvement Leaders: Six Phases for Successful BPM Adoption," G Using the BPM Four Corners Framework to Evaluate a Vendor's BPMS Strategy, G Using the Top Four BPMS Usage Scenarios to Evaluate a Vendor's BPMS Strategy, G Signs That a BPMS Vendor Is Following One or More Technology Evolutionary Paths, G Gartner Evaluates SAP's BPM Strategy and BPMS Product, G Gartner Evaluates Oracle's BPM Strategy and BPMS Product, G Gartner's Evaluation of IBM's BPM Strategy and BPMS Product, G Gartner Evaluates Microsoft's BPM Strategy and Partner BPMS Products, :G

26 More opportunities for you to engage with Gartner analysts Gartner Business Process Management Summit: The Process Value of People, Patterns and Possibilities March Las Vegas, NV gartner.com/us/bpm As a webinar participant you re entitled to receive a $300 discoun off the standard rate. Register with priority code BPMWEB at gartner.com/us/bpm

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