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M2MSys BPM Executive Summary

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This presentation gives an executive overview of what is Business Process Management and explains why any successful company in the 21st Century organization will use BPM. ...

This presentation gives an executive overview of what is Business Process Management and explains why any successful company in the 21st Century organization will use BPM.
The presentation is divided into 3 parts: introduction of the process (BPM), process digitalization and the process platform (BPMS) and we end with the example of the Microsoft BPM platform. Architect. Mr. Pinto is an expert on Business Process Management, Machine-2-Machine communications and Complex Adaptive Systems, which are disciplines he combines in his designs to build cognitive-event-driven information systems.

Contact us at www.m2msysonline.com and see how we can help you significantly improve efficiency and effectiveness.

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  • 1. BPM Executive Summary www.m2msysonline.com © 2005-2007 M2MSys® LLC
  • 2. Agenda BPM Introduction Today’s Organizations Challenges Organizations Cannot Count on IT Organizations Turn to BPM BPM Early Adopters BPM Science Disciplines The Almighty Process and Process Classification Implementing BPM and Advantages of Using BPM The IT BPM Platform Process Digitalization and Process Languages Business Process Management Systems (BPMS) and BPMS Diagram Gartner’s 2006 BPMS Analysis IT’s new Role in the BPM Organization The Microsoft BPM Platform Microsoft BPMS and Microsoft BizTalk
  • 3. Today’s Organizations Challenges  Customer Dictator – the globalization of the 90s gave the customer the “cheaper, better and faster”. Customers are now looking for superior service or the “when, where and how” they want it. Organizations need to be able to offer mass customization and total solutions.  Fierce Competition – organizations either deliver what customers want or the competition will. Being the best today is no longer enough. Organization need to be efficient and agile as competitors mushroom literally over night.  Relentless Pace of Change – organizations need to predict customer direction and innovate or will have to compete purely on price. This leads to a perpetual state of change and adaptation. Nothing can just be built to last. It has to be built to adapt.
  • 4. Organizations Can’t count on IT Today’s organizations cannot count on IT to take them out of these challenges because IT is trapped by their own wrong doings: Information Silos – the proliferation of 3 letter systems (ERPs, CRMs, etc) that washed away millions, have created information silos that make even small changes turn into expensive projects that take months. Legacy technology – the relentless innovation of IT has left organizations with mission critical systems that are not ready for the real-time economy. Too critical to change, to expensive to replace, they continuing dragging the organization. Loss of credibility –a 50% success rate has left most CEO with a bitter taste enough not to come back. Communication gap – software engineers and their 3 letter acronyms have alienated themselves from understanding the business and the expectations of those they need to serve.
  • 5. Organizations Turn to BPM Business Process Management (BPM) is a MANAGEMENT philosophy built on over 100 years of lessons learned and solid scientific foundations. IT came of age in the mid 80s with the work of very reputable work from Harvard professors and other business scientists. BPM is a MANAGEMENT philosophy that combines: Business science Quality Technology Philosophy (holistic thought process) BPM is NOT a: Quick fix The newest fade
  • 6. BPM Early Adopters Wal-Mart Amazon General Electric Progressive Insurance JetBlue Virgin Group
  • 7. BPM Science Disciplines Modeling Business Quality Process Management Redesign System Mathematics Theory Business Science BPM SOA
  • 8. The Almighty Process WHITESPACE is the void between Departments that prevents interdepartmental processes to be executed in a fast and accurate way. Organization Product Or Production Service Customer Support Customer Sales Order HR IT Process
  • 9. Process Classification --Complexity Complex processes High Added VALUE that are not part of Complex Business the organization’s Processes: core competency. *Strategic Prime candidates *High Added Value for Business *Core Competency Process Outsourcing. -- Competitive advantage ++ Commoditized Business Processes Simple business with low processes can be competitive optimized by advantage: applying Complexity++ procedures such as ERP Six Sigma. CRM
  • 10. Implementing BPM Determine the organization’s strategy. Establish organization goals for the strategy Convert those goals into CROSS- DEPARTMENTAL-FUNCTIONAL processes Assign managers to process owners that are responsible to supervise the process and interact with customers and departmental liaisons Establish measures to track managerial performance for every business process
  • 11. BPM Benefits  Transparency - BPM makes processes absolutely transparent, greatly improving visibility and efficiency of every organization process.  Constant Process Refinement – through experience it is possible to optimize the initial design so it becomes more efficient by identifying new and obscure synergies, more effective and more aligned with constantly evolving requirements from customers and business.  The Path towards Real-time – the process combines time and activities and overtime, it is possible to continuously work for processes to ever more efficient, until they convert to real-time.
  • 12. Process Digitalization Process Digitization is the mechanism of describing the inputs, outputs, activities and behavior of a Business Process using a Business Process Language so it can be executed by a Business Process Execution Engine. Process #n Process #3 Process #2 Process #1 Server (Process Virtual Machine) Process Virtual Machine
  • 13. Business Process Language A Business Process Language needs to be able to describe the activities and the associated services of an end-to-end business process such as: binding to heterogeneous system synch & asynch message exchanges with correlation and dynamic binding data manipulation control structures (sequence, all, switch) exception management compensating transactions auditing.
  • 14. Trip Reservation Example Trip Reservation Process Reserve Event Receive Cancel Itinerary Customer Reserve Cancel Airline Car Hotel Booking Booking Booking Reserve Pay Cancel Send ACK Credit Refund
  • 15. <Process> BPEL Structure <partners>  <process> is the outer wrapper for all <variables>  <partners> define entities that provide and use services  <variables> define process handlers context (instance data)  Fault- and compensation-handlers handle exceptions <correlationSets>  <correlationSets> define process instance identification Activity A  Activities define processing steps for the business process Activity B
  • 16. The BPM Platform – BPMS A Business Process Management System (BPMS) is a platform that coordinates the Business Process Users Community, IT Applications and Data of a Business Process driven Architecture. The platform allows well-researched, efficient and informed decisions to the community by offering the following services: 1. Definition: Documentation, Modeling, Analysis 2. Deployment: Provision, Release management 3. Management: Execution, Application integration 4. Tracking: Business Activity Monitoring (BAM), Portal
  • 17. BPMS Diagram BPMS Business Process #n Activity Process #3 Monitoring Process Portal Process #2 Process #1 Operations Manager Customer Process Persistency DB Process Process Virtual Modeling Machine Technical Business Analyst Manager Health & Human Services Bus Back Office SOA Back Office Application Application
  • 18. Gartner BPMS Analysis (2006) March 2006 – BEA acquires Fuego and rolls it into the AquaLogic Suite
  • 19. IT’s new Role in the BPM Organization Organization CEO BPM Committee Head of Committee BPM Architect Customer Representative(s) Department Representatives IT Department Business BPMS Process #n Activity Process Portal Process #3 Process #2 Monitoring Process #1 Process Persistency DB Process Process Virtual Modeling Machine Technical BA
  • 20. Microsoft BPM Platform Tracking Definition MOSS InfoPath Word Excel. Visio BizTalk Visual Studio Management BAM XLANG Messg. HAT BAS Rules SSO Deploy WS Exp Xform SCOM SQL Analysis Report IIS .NET Deployment Windows
  • 21. BizTalk Core Architecture Message Adapter Process Ability to retrieve any type Message Pipeline of message (XML, ASCII, Ability to apply 4 bin, etc) using any configurable tasks regarding protocol FTP, HTTP(s), the preparation of the MAIL, etc. message for consumption by BizTalk or to export. Rx Rx Pipeline Msg BTS Msg BTS Msg Adapter Decode Disassemble Validate Resolve Party Tx Pipeline Message Tracking Msg Tx BTS Msg DB DB Adapter Pre-Assemble Assemble Encode
  • 22. About M2MSys LLC We build information platforms for the Evernet.  Business Process Management (BPM)  Machine to Machine Communications (M2M)  Physical and Virtual Sensor Networks (SN)  Complex Adaptive System (CAS) www.M2MSysOnline.com