Business Transformation through ibpms. Dr. Setrag Khoshafian, Chief Evangelist and VP of BPM Technology, systems
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1 Business Transformation through ibpms Dr. Setrag Khoshafian, Chief Evangelist and VP of BPM Technology, systems
2 Business Transformation Trends for Doing More Modernize More Innovate More Automate More Accelerate More Adapt More Be More Citizen-Centric 2
3 with Less Silos Less Waste Less Variance 3
4 Scientific Management Structured Production Workflow Business Process Re-engineering TOC Lean Six Sigma Process Improvement Social Mobile Cloud Process Automation Dynamic Case Management NPS BSC Adaptive Enterprise Business Rules Analytics Decision Management Business Events Big Data Intelligent BPM Suites Process Intelligence EA SOA WOA COA 4 Process Architectures
5 What s wrong with this picture? Handle Exceptions & Events Content from multiple sources New tasks 5 Changes to Processes, Cases Related Processes Cases Ad-hoc collaboration with various stakeholders to handle the case
6 Why ibpms Intelligent through DCM The Need for: Dynamic Case Management Ad-Hoc, Unstructured, Untamed, Collaborative processes Case Business Objectives Case Parties Collaboration Tasks Unstructured, Dynamic and Ad-Hoc Rules and Policies Case Data Sub-Cases Case Content Case Events Processes & Dependencies 6
7 EXAMPLE BAA - Heathrow 7
8 8
9 Dynamic Case Management The Case Designer The Case Portal Ad hoc work 9
10 Work on a Single Case The 360 view of a Case shows Case Information, Subcases, and all open and completed tasks 10
11 Case Manager s Dashboard 11
12 Create Ad Hoc Work and Processes 12
13 Why ibpms Social, Mobile, on the Cloud The Need to Operate in Social, Mobile, and the Cloud 13 Networking and Collaboration 2012, Confidential, 2012 systems systems Inc. Inc.
14 14 1. Pingdom 2. Gartner's Top Predictions for IT Organizations and Users, 2010 and Beyond: A New Balance. 3. Garnter, IDC, Strategy Analytics, company filings, BI intelligence estimates 4. Morgan Stanley Research 5. emarketer.com 26x Smartphones and tablet computers will increase mobile traffic by this much during the next four years.1 By 2013, mobile phones will overtake PCs as the most common Web access device.2 By 2013, 80% of businesses will support a workforce using tablets.3 By 2015, smartphones will reach 2 billion globally.4 By 2016, nearly three in five consumers will have a smartphone.5
15 Mobile Workforce Field Workers Mobile Agents Welfare Case Workers 15
16 Design Once and Run Everywhere Back Office Mobile ibpm: The Only Unified Platform For Developing Business Applications Front Office Web Facebook/Social 16
17 Mobile Mobile 17
18 How About Social? LISTEN to the stakeholders: citizens, business managers, employees, peers have a better understanding COMMUNICATE: through sharing ideas, feedback, comments, for exchange and improvement ENERGIZE: through involvement with real-time or asynchronous fresh interactions and feedback responses INNOVATE: through authoring content or building solutions collaboratively SUCCEED: through involving targeted community members to complete cases or work 18
19 Social Activity Streams 19
20 20
21 ibpm: Optimization Cycle Directly Capture Business Requirements & Objectives Directly Capture Objectives: Eliminate Execution Gaps & Efficiently Build Citizen Centric Enterprise Solutions Monitor, Improve, Analyze, & Optimize Business Performance ENTERPRISE REPOSITORY CHANGE, REUSE & SPECIALIZE Automate Work & Manage Dynamic Cases Monitor, Improve & Optimize Business Performance Automate Work & Manage Dynamic Cases 21 Situational Execution Guided Interactions Next Best Actions Unstructured, Dynamic, and AD-HOC
22 LOB Cross LOBs. Increased Challenges In Collaboration BPM Enterprise Citizen & Partner Value Chain Asynchronous Real-Time 22 Build DCM Solutions Execute Dynamic Cases Increased Business Value Improve DCM Solutions
23 ibpm: Cloud On Premise Flexibility Securely Build Enterprise Solutions Directly Capture Business Requirements & Objectives Monitor, Improve & Optimize Business Performance ENTERPRISE REPOSITORY CHANGE, REUSE & SPECIALIZE Securely Run Enterprise Solutions Automate Work & Manage Dynamic Cases Cloud On-Premise 23
24 Business Value Why ibpms Intelligent through Analytics The Need for Actionable Analytics & Business Events Predictive Analytics Predictive and Adaptive ibpm ID Data Behavior Value Good 1,000 Bad 120 Bad 60 Good 2,500 Past Experience Predictive Analytics Predictive Model OLAP Real-Time Process Optimization Historic Reports Real-Time Actionable Events & Reports 24 Actionable, Intelligent, and Adaptive
25 Actionable Predictions, Differentiated Processes 25
26 Predictive and Adaptive Analytics for Case Actions: Prioritize the Next Step 26
27 Learning From Feedback (Responses): Adaptive Self Learning Predictive Models Adaptive Models 1) Run Strategy for Beth Age=25 $35,000 Context: Enquire - Balance 2) Preserve Predictive Data ADM Age = 25, Income = $35,000, Proposition = Personal Loan, Response = Positive - Accepted 3) Capture Response and send to Analytics Server 27
28 Who Benefits from ibpm? Operators Increased Efficiency Intent-aware user interfaces Automated Straight Through Processing Smart Work Management Next Best Actions Dynamic Case Management 28 IT Increased Productivity Model-driven development Instant deployment Enterprise BPM repository Successful SOA through BPM ibpm Build for Change Stakeholders (Business) Increased Visibility and Control Directly capture Business Objectives Monitor business activities Smart control of business processes Manage change Design By Doing
29 Benefits for the Stakeholder (Business) Other Technologies Business Mandate Requirement Docs Analysis Docs Coding Review Re-Coding With BPM Business Mandate Pegasystems Inc.
30 IT Productivity X5 to X7 ibpm X5 to X10 X2 to X3 High-Level Structured Programming Object Oriented Programming Assembly Pegasystems Inc.
31 Managing All Types of Work and Workers Extremely Structured Spectrum of Work Work Automation Unstructured and Ad Hoc System Clerical Worker Knowledge- Assisted Worker Dynamic Case Management Knowledge Worker Dynamic Case Management supports all work needed to handle a case, regardless of kind or who is performing it 31
32 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 32
33 EXAMPLE ibpm 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
34 Coalescing and Collaborating: from IT to BT 34
35 Business Transformation Through ibpm Legacy Modernization and Transformation Empower the Business to Own The Change Easily/Quickly Launch New Services Leverage a ibpm COE to Collaborate and Govern Success Drive Agility and Automation for Efficiency and Effectiveness Demonstrate ROI and Cost Savings 35 From EA to COA
36 Legacy Modernization and Transformation Use ibpm to wrap and renew existing infrastructure, allowing modernization through the ibpm Platform while leveraging legacy or ERP systems as systems of record and achieving success of SOA 36
37 Legacy ERP (especially SAP) Systems Pain Point: Handling Exceptions through Manual Interventions Expensive & Error prone manual solutions to handle exceptions Humans have to be involved to handle suspended processes Millions of lines of custom code to handle sophisticated logic for the exceptions that are difficult to maintain and change Infrastructure Service Service Service Service 37 ERP 1 Legacy 1 ERP 2 Legacy 2
38 ibpm Provides the Business and Citizen Oriented Agility Layer for the Enterprise 38
39 Dynamic Case Management Enterprise Repository Agility Layer Integration Plumbing HR Legacy Finance ERP ECM DBMSs Integration Plumbing Exceptions Case Management Enterprise Repository 39
40 Easily/Quickly Launch New Services ibpm allows agencies to quickly and efficiently specialize and launch new services while re-using existing ones 40
41 ibpm Situational Layered Cake Testing Versioning Reuse/Specialization Auditing Search/Navigation Access control BPM processes for management Instant deployment Rollback Best policy or procedure for a given situation (context): Citizen, channel, product, location, etc. 41
42 Leverage a BPM COE to Collaborate and Govern Success Establish a COE to focus on the deployment of successful ibpm projects. Govern re-use and radiation across business units and the enterprise. This could be with the COE or an internal COE. 42
43 MATURITY BPM Enterprise Maturity Model Method Adoption Building Competence Establish LOB COE Corporate COE established. Best Practices Defined and Adhered to Federated COE model in place. Business Maturity with Common Processes Project Tread: 4 Process / Rule Architect 3 LOB 1 Program Mgmt. PM Leads Claims Process / Rule Architect 2 Program Mgmt. PM Leads LOB 2 Region Sponsors / Steering Committee Overall Oversight and Initiatives Prioritization 43 1 Business Unit TIME Leverage a BPM COE To Collaborate and Govern Success
44 Less Visibility Business Visibility High Visibility Think Big Start Small Impact/Risk Matrix: Account Opening Low Hanging Fruit Claims Processing Time-Off Request More Risk Complexity Less Risk 44
45 Iterative ibpm Methodology Slivers Dynamic Case & Process Discovery Direct Feedback Sticky Collaborative Feeds Planning ITERATION Delivery Leverage a BPM COE To Collaborate and Govern Success Process Discovery / Application Profiler Live Updates Unit Auto Test & Test Management Framework Project Management Framework Status Reporting and Governance Continuous Documentation Reporting & BI 45 Real Time Lean Continuous Improvement
46 Federated ibpm COE 46 Corporate COE PRPC Project Director Architecture Methodology Infrastructure QA Deployment produces Methodology Best Practices Reference Architecture COE Leadership Executive Sponsor, Business C-Level Exec, IT C-Level Exec HR COE COE Manager/PM Lead SA / BA PM UAT/QA Lead Project Team A Tech Lead Developers Project Team B Tech Lead Developers SME s Project Team C Tech Lead Developers Finance COE COE Manager/PM Lead SA / BA PM UAT/QA Lead Project Team D Tech Lead Developers Project Team E Tech Lead Developers Leverage a BPM COE To Collaborate and Govern Success
47 Drive Agility and Automation for Efficiency and Effectiveness Real-Time Lean Six Sigma = Lean Process Efficiency with Six Sigma Effectiveness through ibpm Automation 47
48 Drive Agility and Automation for Efficiency and Effectiveness What is Lean? LEAN = Source: Lean Six Sigma for Service by Michael George INCREASE PROCESS SPEED 48 & REDUCE WASTE
49 Drive Agility and Automation for Efficiency and Effectiveness Real-Time Lean with ibpm Directly Capture Business Requirements & Objectives ENTERPRISE REPOSITORY CHANGE, REUSE & SPECIALIZE Monitor, Improve & Optimize Business Performance Automate Work & Manage Dynamic Cases Unstructured, Dynamic, and AD-HOC 49 Source: Lean Six Sigma for Service by Michael George
50 ibpm Capabilities For Lean: Re-Use and Customization Enterprise Repository Drive Agility and Automation for Efficiency and Effectiveness ibpm Lean Efficiency Who Benefits Change Management Remove waste in introducing minor or major changes while leveraging existing investments. Business and IT Re-Use to Specialize Introduce substantive efficiencies through reuse of process/rules/integration IP. Avoid waste synchronizing multiple repositories Business and IT Contextual and Situational Executive Reduce waste in trying to figure out the best policy or procedure or information for a given context Business, Operations, and IT 50
51 What is Six Sigma? Drive Agility and Automation for Efficiency and Effectiveness Six Sigma = 51 IMPROVE QUALITY & REDUCE VARIATION
52 Drive Agility and Automation for Efficiency and Effectiveness Six Sigma Define Measure Directly Analyze Capture Business Improve Requirements Control & Objectives (DMAIC) Customer Customer Defines High Level CTQ Customer s CTQ Met Step A Define Project CTQs Step B Define Team Charter Step C Define Process Map DEFINE 52 Six Sigma Business Six Sigma Project Team Step 1 Select CTQ Characteristics Monitor, Improve & Optimize Business Performance Real-Time Six Sigma with ibpm Step 2 Define Performance Standards Step 4 Establish Process Capability Step 3 Measurement System Analysis Step 5 Define Performance Objectives Step 7 Screen Potential Causes MEASURE ENTERPRISE REPOSITORY CHANGE, REUSE & SPECIALIZE IMPROVE CONTROL Step 6 Identify Variation Sources Step 8 Discover Variable Relationships Step 10 Define and Validate Measurement System on X s ANALYZE Automate Work & Manage Dynamic Cases Step 9 Establish Operating Tolerances Step 11 Determine Process Capability Unstructured, Dynamic, and AD-HOC Step 12 Implement Process Control
53 EXAMPLE CTQ: Invoice Payment Cycle Time Drive Agility and Automation for Efficiency and Effectiveness The big Y s as well as big X s, small y s and small x s are all identified as properties within the ibpm solution ibpm allows you to directly capture and represent expressions (e.g. a big Y an expression of big X) 53
54 EXAMPLE Drive Agility and Automation for Efficiency and Effectiveness 54
55 BPM for Real-Time Six Sigma Drive Agility and Automation for Efficiency and Effectiveness Maintain each process in control in real time: e.g. SLAs, escalation, etc. Use situational selection to apply the best ibpm asset: e.g. based on type of product, citizen status, location or combination 55
56 Lean and Six Sigma 56
57 Drive Agility and Automation for Efficiency and Effectiveness Real-Time Lean Six Sigma = Lean Process Efficiency with Six Sigma Effectiveness through ibpm Automation 57
58 Foster Great Citizen Experiences With ibpm technology companies transform by providing an enhanced Citizen experience through increased levels of Citizen satisfaction 58
59 From EA to COA Multiple Layers Artifact Heavy: Many Models Mostly IT Focused Structured Core ibpm Layer Executable Models Citizen Focused Dynamic and Adaptive 59
60 From EA to COA 60
61 Business Objectives KPIs CI Methodology Real-Time Lean Six Sigma Real-Time Business Activity Monitoring ibpm 61 Infrastructure (OS, App Server, Database, etc.)
62 What Makes an Enterprise Adaptive? 62
63 CAPABILITY Build For Change For the Adaptive Enterprise Days ibpm Solution Business Stakeholder Expectations And Requirements Conventional Solutions 63 TIME
64 Questions and Answers 64
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