CRM and BPM Suites of the Future Ben Kiker Chief Marketing Officer, Onyx Software

Welcome Why is business process management today’s hot topic? What are you going to learn today? Why are Onyx and IBM sponsoring this event?

Why is business process management today’s hot topic?

What are you going to learn today?

Why are Onyx and IBM sponsoring this event?

CRM and BPM Suites of the Future Jim Sinur VP and Distinguished Analyst, Gartner Group

What is BPM ? Business Defintion BPM is the management of all the processes supporting a business transaction/event from the beginning to the end while applying the policies/rules needed to support an organizations stated business model at a specific point in time BPM runs within the cultural constraints offered by an enterprise BPM runs to meet the conflicting goals set by management and optimizes to find the sweet spot between them BPM considers the contexts that it runs in while meeting stated outcomes BPM ideally suggests better operational behavior BPM ideally points to better tactics BPM runs within tolerated and expected scenarios BPM is flexible in a near real time fashion BPM is not a technology, but is enabled by instances of BPM technology

Business Defintion

BPM is the management of all the processes supporting a business

transaction/event from the beginning to the end while applying the

policies/rules needed to support an organizations stated business model

at a specific point in time

BPM runs within the cultural constraints offered by an enterprise

BPM runs to meet the conflicting goals set by management and optimizes

to find the sweet spot between them

BPM considers the contexts that it runs in while meeting stated outcomes

BPM ideally suggests better operational behavior

BPM ideally points to better tactics

BPM runs within tolerated and expected scenarios

BPM is flexible in a near real time fashion

BPM is not a technology, but is enabled by instances of BPM technology

How Can BPM Serve CRM Initiatives ? Campaign automation and optimization Customer enrollment/onboarding Intelligent Cross Selling Real Time Analytics Integrated Self Service Partner Management Mass Customization of Processes

Campaign automation and optimization

Customer enrollment/onboarding

Intelligent Cross Selling

Real Time Analytics

Integrated Self Service

Partner Management

Mass Customization of Processes

BPM Taxonomy BPM Category Supporting Markets Administrative (Visual BPM) Traditional Workflow Task Oriented Portals Team Process (Collaborative BPM) Knowledge Management Team Support Application Specific (Configured BPM) Packages Content Management Integration Centric (System to System) System to System focused Composite Application Application Independent (Pure Play BPM) Human to Human focused Business Templates

Drivers for BPM Are Numerous New process creation/maintenance Current process understanding Mergers and acquisitions Business process outsourcing Package implementations Core process/systems consolidations Automation of manual processes Value/supply chain creation/maintenance and process fusion Optimized processes Compliance Scenario building for agility and policy management

New process creation/maintenance

Current process understanding

Mergers and acquisitions

Business process outsourcing

Package implementations

Core process/systems consolidations

Automation of manual processes

Value/supply chain creation/maintenance and process fusion

Optimized processes

Compliance

Scenario building for agility and policy management

BPM Is Thriving in Many Industries Insurance Banking Credit Financial markets Discrete manufacturing Healthcare Government Pharmaceuticals Telecommunications Retail

Insurance

Banking

Credit

Financial markets

Discrete manufacturing

Healthcare

Government

Pharmaceuticals

Telecommunications

Retail

BPM Routing Capabilities Enable Direct Submittal (20%+ ROI) Healthcare Payer Organization Case Study Steps In Records Update Process Physician Activities Insurer Activities Activity Eliminated in Automated BPM Environment Contact insurance company Receive change packet Complete change forms Send to insurer Wait for change processing Wait for change packet delivery Receive change request Send change packet Receive completed change information Copy info. To member form Verify information (if necessary) Enter info. Into central database Prepare & mail confirmation letter Send info. To imaging center Image center scans & indexes documents Receive confirmation letter

Process Efficiency is Being Delivered; Get on board or get out of the way 85% 70% 55% In a 2003 study, percent of respondents that achieved key process benefits Reduction in elapsed time Higher productivity per person Improved quality/reduced errors Reduced number of steps Higher employee satisfaction Fewer people needed Improved coordination across depts./geo. Automation of admin. tasks Reduced cost per transaction Enabling external users Improved regulatory compliance Flex. in processes/bus. agility Data/process integ. across apps. Reduced risk Reduced waste/scrap

BPM flows enable optimized business events that coordinate Hardware, Software, Facilities, Process, People BPM is Business Integration at Multiple Levels and Is Ubiquitous Above the water line : Long-Running Human-to-Human (H2H) Business Flows Enabled by Work Lists and Work Throughput Formulas Below the water line: Short-Running System-to-System (S2S) Technical Flows in Support of Business Flows

BPM flows enable optimized business events that coordinate

Hardware, Software, Facilities, Process, People

Comments from a 2004 BPM Survey 50% of the respondents were business professionals 25% of the companies responding had asset bases in the millions 75% had asset bases in the billions 95% of the companies experienced a greater than 90% success rate amongst BPM projects 65% said that 90-100% of their implemented processes were H2H 15% said the were S2S dominated; only 2% said they had no H2H 75% did have projects underway now BPM projects in the planning stage; 25% had 1; 25% had 2; 25% had 3-5; 15% had 6-10; 5% had over 10 Experience from 154 recent BPM projects

Growth Predictions for BPM 67% of the projects were completed in less than 6 months; 50% in 4 months or less ROI none of the successful projects had less than 10% ROI; 78% had greater than 15% ROI; Wild numbers included 100% and 360% 77% had returns greater than $100,000.00 per project 55% has returns in the $100,000.00 to $500,000.00 range Gartner predicts rapid growth

Ingredients for BPM Success Visible and Successful Implementations Real Cost Savings/Avoidance Understanding the Real Process Business Process Ownership Leadership Buy-in Quality Implementations

BPM Suite Taxonomy Analyze and Model Processes Execute Processes Integrate Humans and Applications Monitoring Results Fast Path Changes Dynamic Rules Dynamic Binding CRM B2B .NET J2EE ERP ? ? 1 2 3 4 Reactive Management Proactive Management Simulation Scenarios System Dynamics Adjust Policies and Rules

Fast Path Changes

Dynamic Rules

Dynamic Binding

Simulation

Scenarios

System Dynamics

BPM Suites Require Explicit Flows & Rules Operating System Applications Emerging Current Classic Operating System Database Applications Rules Services Flows Services Flows Data Rules Operating System Database Applications Rules Flows Operating System Database Applications Rules Operating System Database Applications

BPM Suites Will Require Convergence Or Best of Breed IDS Scheer BPM Suites Integration Server Software Platforms “ EAI” Business Rule Engines Pure- Play BPM Analysis, Simulation Modeling, Design, & Construction Tools Business Activity Monitoring IBM BEA Microsoft SeeBeyond Oracle WebMethods Fair Isaac Pega Ilog Corticon Mindbox ESI Pega Metastorm Staffware FileNet Ultimus Orbus Microsoft Proforma Synthean Systar Applix CA Casewise Proactivity Lanner Onyx Software VineyardSoft Hewlett-Packard eiStream Savvion Fujitsu Clear vendors with outboard rules vendors with Inference Tibco

IBM

Microsoft

Oracle

Fair Isaac

Pega

Ilog

Corticon

Mindbox

ESI

Pega

Metastorm

Staffware

FileNet

Ultimus

Synthean

CA

eiStream

Savvion

Fujitsu

Clear

vendors with outboard rules

vendors with Inference

Tibco

Suggested Architecture for Round Trip Engineering Provide continual feedback Build contextual orientation Communicate Encourage reassessment Define Your best practices rapid representation of the knowledge of your experts Validate to confirm that the best practices will meet evolving requirements and active scenarios’ dynamically simulate under the most realistic conditions Deploy best practices within selected scenarios into the operational environment monitor best practices to achieve continuous improvement Improve continuously to keep the process operating at peak efficiency Define Validate Deploy Improve

Define Your best practices

rapid representation of the knowledge of your experts

Validate to confirm that the best practices will meet evolving requirements and active scenarios’

dynamically simulate under the most realistic conditions

Deploy best practices within selected scenarios into the operational environment

monitor best practices to achieve continuous improvement

Improve continuously to keep the process operating at peak efficiency

Architecture for Real Time Reactive Change Detect Diagnose Explain Model Respond with scenario driven rule sets What is the significance of the events/data? Detect data Outputs System boundary Process production, business, supply chain, network, financial, transportation, aerospace… Process and Knowledge based models enable reasoning events Inputs How do I get the process to the condition I want? Respond Selecting scenarios & taking corrective actions In what condition is the process? Diagnose & Explain condition or state Events Rules Optimize Model

CRM and BPM Suites of the Future Ben Kiker Chief Marketing Officer, Onyx Software

Onyx and IBM – Partnering for Success Clear Market Leadership – Technology you can trust Best of Breed Solutions Unparalleled Value CRM that can grow with your business Core competencies let you focus on business, not technology On Demand CRM from IBM and Onyx Partnership with IBM Professional Services Onyx-in-a-Box Offering Through IBM and Sirius Computer

Clear Market Leadership – Technology you can trust

Best of Breed Solutions

Unparalleled Value

CRM that can grow with your business

Core competencies let you focus on business, not technology

On Demand CRM from IBM and Onyx

Partnership with IBM Professional Services

Onyx-in-a-Box Offering Through IBM and Sirius Computer

Business process management is a core component of CRM ─ today It just isn’t easy It doesn’t go deep enough It’s not as broad as it should be World-class CRM deployments don’t just support business processes, they drive them.

It just isn’t easy

It doesn’t go deep enough

It’s not as broad as it should be

World-class CRM deployments don’t just support business processes, they drive them.

The BPM in Onyx CRM today: July 2004 Ability to define business rules Built-in workflow capabilities System triggers for cross-functional activities Onyx Enterprise CRM 5.0 Process Scripting for streamlining customer-centric workflows

Ability to define business rules

Built-in workflow capabilities

System triggers for cross-functional activities

Onyx Enterprise CRM 5.0 Process Scripting for streamlining customer-centric workflows

Graphical design environment for rules authoring Real-time and scheduled rules execution Compatible with Onyx Enterprise CRM 5.0 Fully integrated rules engine Business analysts and administrators—non-technical people— build and modify business rules in Onyx applications without writing code The BPM in Onyx CRM: December 2004

Graphical design environment for rules authoring

Real-time and scheduled rules execution

Compatible with Onyx Enterprise CRM 5.0

How it works Intuitively presents workflows and links to users graphically Determines the order of execution

Intuitively presents workflows and links to users graphically

Determines the order of execution

Adds: Graphical forms designer Onyx Forms, a form rendering environment Non-technical people build custom extensions to the Onyx CRM without coding Supports complex multi-user, multi-threaded processes that span departments and systems A sophisticated process design environment for building forms and data flows Another wave of CRM innovation: Coming Next Year

Adds:

Graphical forms designer

Onyx Forms, a form rendering environment

Non-technical people build custom extensions to the Onyx CRM without coding

Supports complex multi-user, multi-threaded processes that span departments and systems

Our acquired technology is unique because it includes all aspects of BPM and BRA Business process management Workflow Workflow assignment, escalation, and administration Business Rules Engine Wizard guides the user through the steps of creating rules Business rules automation User Interface Designer Enables complex UI design elements, such tab controls Integration Web services, COM, Java, ODBC XML Mapping technology Sync and Async support Onyx Enterprise CRM Customer relationship management

Get on board or get out of the way* Business agility Regulation compliance Enterprise process alignment Organizational collaboration Adherence to methodologies Faster and more cost effectively * Jim Sinur, vice president, Gartner Research * Jim Sinunu

Business agility

Regulation compliance

Enterprise process alignment

Organizational collaboration

Adherence to methodologies

Faster and more cost effectively

* Jim Sinur, vice president, Gartner Research

* Jim Sinunu

Q & A Ben Kiker Chief Marketing Officer, Onyx Software [email_address] Jim Sinur VP and Distinguished Analyst, Gartner Group [email_address]