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BPM: Prospering in a Lean Economy

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BPM: Prospering in a Lean Economy

  1. 1. <ul><li>Connecting Process Professionals </li></ul>Kiran Garimella Vice President, BPM Solutions BPM: Prospering in a Lean Economy June 4, 2009
  2. 2. BPM: Prospering in a Lean Economy Kiran Garimella Vice President, BPM Solutions Software AG
  3. 3. Speaker Introduction <ul><li>Kiran Garimella, Ph.D. </li></ul><ul><li>Vice President, BPM Solutions </li></ul><ul><li>Software AG </li></ul>© Copyright 2009 Software AG BPM: Prospering in a Lean Economy (Asia, 2009) | Page <ul><li>ELA’s Technology & Operations Conference, Chicago, 2005 </li></ul><ul><li>Association of BPM Professionals, Chicago, 2006 </li></ul><ul><li>DCI BPM Conference, Phoenix, 2006 </li></ul><ul><li>BPM Institute Conference, New York, 2006 (Keynote) </li></ul><ul><li>Shared Insights’ BPM Conference, Boston, 2006 </li></ul><ul><li>Gartner BPM Summit, 2007 </li></ul><ul><li>Shared Insights BPM Conference, Las Vegas, 2007 </li></ul><ul><li>Leaseteam Operations & Technology Conference, Omaha, 2007 (Keynote) </li></ul><ul><li>Shared Insights/IIR, Warsaw, 2007 </li></ul><ul><li>IDC SOA World Conference, Amsterdam, 2008 (Keynote) </li></ul><ul><li>Gartner SOA Conference, Tokyo, 2008 </li></ul><ul><li>Business Innovation Forum, Tokyo, 2008 (Keynote) </li></ul><ul><li>CIO Magazine Conference & Roundtable, Warsaw, 2008 (Keynote) </li></ul><ul><li>Business Innovation Forum, Tel Aviv, 2008 (Keynote) </li></ul>Publications Conference Speaking Bio <ul><li>Ph.D. in Artificial Intelligence, Univ. of Florida </li></ul><ul><li>20 years in IT, Management, Teaching </li></ul><ul><li>Global CIO of GE Healthcare Equipment Finance ($8 billion) </li></ul><ul><li>Chief Architect of GE Healthcare Finance ($14 billion) </li></ul>Advisory Boards & Committees <ul><li>Chair, Software AG’s BPM Advisory Council </li></ul><ul><li>Member, Board of Directors, MINATES </li></ul><ul><li>International Institute of Business Analysts </li></ul><ul><li>Curriculum Planning Committee, Elmbrook Schools </li></ul><ul><li>CIO’s Technology Advisory Council, Elmbrook Schools </li></ul>
  4. 4. <ul><li>A “framework” </li></ul><ul><li>A “platform” </li></ul><ul><li>A “comprehensive suite” </li></ul><ul><li>A “management discipline” </li></ul><ul><li>A “structured approach” </li></ul><ul><li>A “cultural change” </li></ul><ul><li>A “breakthrough” </li></ul><ul><li>A “new way of thinking” </li></ul>© Copyright 2009 Software AG BPM: Prospering in a Lean Economy (Asia, 2009) | Page Business Process Management
  5. 5. Business Manages Process, but IT Delivers Functions © Copyright 2009 Software AG BPM: Prospering in a Lean Economy (Asia, 2009) | Page Find Buyer Sell Product Ship Order Get Paid Buy Resources Make Product BUSINESS ERP CRM ECM Oracle Financials HR IT Suppliers Systems “ Operational Black Box” THE BPM GAP
  6. 6. Buzzwords that mean absolutely nothing to business people: © Copyright 2009 Software AG BPM: Prospering in a Lean Economy (Asia, 2009) | Page WSDL SOA OWL BAM BI CAF Portals ESB BPMN BPEL JSR-168 XPDL AJAX WYMIWYR CMS EAI Web 2.0 Out-of-the-box functionality BPEL Cloud Computing Legacy Modernization Web Services Complex Event Processing ICE PLM PPM SAAS Agile Development
  7. 7. Words and phrases that have real meaning to business people: © Copyright 2009 Software AG BPM: Prospering in a Lean Economy (Asia, 2009) | Page Process Cycle Time Throughput Yield Bottlenecks Wait-times Defects per million opportunities Latency Process Variance Inventory Turns SLA Violations False Demand Triggers Return Rate Percentage Rework Cost of Poor Quality Unnecessary Motion Excess Processing Time to Completion Economic Value Add Transportation Waste Process Variance Process Capability Process Capacity Excess Transactions Root Cause Voice of the Customer Run Chart Critical-to-Quality Reduction of Waste Overall Equipment Effectiveness Key Performance Indicators Baseline Conditions
  8. 8. … and get everyone speaking: © Copyright 2009 Software AG BPM: Prospering in a Lean Economy (Asia, 2009) | Page
  9. 9. BPM isn’t a systems solution. <ul><ul><li>BPM is not owned by the IT organization. </li></ul></ul><ul><ul><li>BPM is not a technology. </li></ul></ul><ul><ul><li>BPM isn’t a system architecture. </li></ul></ul><ul><ul><li>BPM is not an IT cost line-item. </li></ul></ul><ul><ul><li>BPM isn’t an application. </li></ul></ul><ul><ul><li>BPM is not implemented by consultants. </li></ul></ul><ul><ul><li>BPM is not something specialists do. </li></ul></ul>© Copyright 2009 Software AG BPM: Prospering in a Lean Economy (Asia, 2009) | Page
  10. 10. BPM is methodology and technology. <ul><li>“ Business Process Management (BPM) is the discipline that combines business operations with information technology within a process framework to improve the way people utilize their organizations, systems, documents and other assets to create and sustain business and customer value.” </li></ul><ul><li>“ A BPMS is the suite of BPM technologies — including all the functional modules, technical capabilities and supporting infrastructure — integrated into a single environment that performs all the BPM technology functions seamlessly.” </li></ul>© Copyright 2009 Software AG BPM: Prospering in a Lean Economy (Asia, 2009) | Page BPM = CPI + BPMS
  11. 11. The Business Case for BPM
  12. 12. Many Forces of Change © Copyright 2009 Software AG BPM: Prospering in a Lean Economy (Asia, 2009) | Page Globalization Mergers & Acquisitions Technology Innovations Compliance & Regulation Mass Customization Process Methodologies New Technologies Legacy Utility Generational Change New Solutions Forces requiring businesses to improve performance. RECESSION !
  13. 13. Now, Process is an IT priority as well as a business priority. © Copyright 2009 Software AG BPM: Prospering in a Lean Economy (Asia, 2009) | Page 9 of the Top 10 IT Management Priorities are addressed by BPM.
  14. 14. Top Priorities in 2009 © Copyright 2009 Software AG BPM: Prospering in a Lean Economy (Asia, 2009) | Page *CIO Insight Survey, 2009 Business / IT Alignment Improving Business Processes Better Customer Service Cutting costs Improved IT Planning Reducing ROI Costs Creating / Improving Strategic Apps Improving IT ROI Spending Standardizing/Consolidating Architecture Improving Project Management Improving Information Quality Improving ROI of IT Creating Infrastructure for Growth Growth from New Business New Business Strategies Product & Service Innovation New technologies Improving Development Capabilities Productivity Compliance Competitive Differentiation with IT
  15. 15. Defining competitive advantage <ul><li>The New Realities: </li></ul>© Copyright 2009 Software AG BPM: Prospering in a Lean Economy (Asia, 2009) | Page <ul><li>How? </li></ul><ul><ul><li>1. Remove distractions, Free-up brain-cycles </li></ul></ul><ul><ul><li>100s of projects? Do 100,000s of projects!!!! </li></ul></ul><ul><ul><li>Only other options: </li></ul></ul><ul><ul><ul><ul><li>↓ TTM & ↑ Probability of Delivery </li></ul></ul></ul></ul><ul><ul><ul><ul><li>↓ TTP & ↑Probability of Profit </li></ul></ul></ul></ul><ul><ul><ul><ul><li>↑ TIP </li></ul></ul></ul></ul>Productivity Innovation Execution <ul><ul><li>3. Do it often, do it quickly! </li></ul></ul>Continuous Process Improvement Agility <ul><ul><li>Diminishing returns on ↓Cost and ↑Revenues </li></ul></ul>
  16. 16. What moves the business levers? © Copyright 2009 Software AG BPM: Prospering in a Lean Economy (Asia, 2009) | Page Business Performance Management Activities Poor leverage ---> The problems of the modern enterprise: functional silos, point solutions – slow, ineffective, inefficient
  17. 17. BPM is an effective transfer function © Copyright 2009 Software AG BPM: Prospering in a Lean Economy (Asia, 2009) | Page Business Performance Management Activities “ Give me a long enough lever, and I’ll move the earth.” - Archimedes
  18. 18. Yes, but … © Copyright 2009 Software AG BPM: Prospering in a Lean Economy (Asia, 2009) | Page Actually, Archimedes was wrong! Why? This takes too long… … to make a difference! can you do it in time?
  19. 19. You need speed… © Copyright 2009 Software AG BPM: Prospering in a Lean Economy (Asia, 2009) | Page <ul><li>Hours, not days </li></ul><ul><li>Days, not months </li></ul><ul><li>A continuous value-add cycle of 30-60-90 </li></ul>
  20. 20. You need agility… © Copyright 2009 Software AG BPM: Prospering in a Lean Economy (Asia, 2009) | Page <ul><li>Change scope as you design </li></ul><ul><li>Change processes as you execute </li></ul>
  21. 21. Dimensions of the BPM Architecture <ul><li>The Business Dimension - Value </li></ul><ul><ul><li>Business Goals, Objectives, and Strategies </li></ul></ul><ul><ul><li>Structure, Organization, Staffing, Skills </li></ul></ul><ul><li>The Process Dimension - Transformation </li></ul><ul><ul><li>Process Methodology, Frameworks, Life-Cycle </li></ul></ul><ul><ul><li>Effectiveness, Transparency and Agility </li></ul></ul><ul><li>The Management Dimension – Action </li></ul><ul><ul><li>Activity and Movement </li></ul></ul><ul><ul><li>Metrics and Measures </li></ul></ul><ul><ul><li>Sense and Respond </li></ul></ul><ul><ul><li>Direction, Enablement </li></ul></ul><ul><ul><li>BPM Technology is a management enabler. </li></ul></ul>© Copyright 2009 Software AG BPM: Prospering in a Lean Economy (Asia, 2009) | Page No surprise here: Business . Process . Management .
  22. 22. How does BPM provide all this greatness? <ul><li>Business Process Management has all the ingredients for both immediate and long-term business success. </li></ul><ul><li>BPM doesn’t come in a box. You must assemble it. </li></ul><ul><li>You integrate four systems to achieve BPM: </li></ul>© Copyright 2009 Software AG BPM: Prospering in a Lean Economy (Asia, 2009) | Page <ul><ul><ul><li>The business architecture </li></ul></ul></ul><ul><ul><ul><li>The process architecture </li></ul></ul></ul><ul><ul><ul><li>The management architecture </li></ul></ul></ul><ul><ul><ul><li>The technology architecture </li></ul></ul></ul>BPM is a well-conceived set of methods, tools, practices, and technologies.
  23. 23. The Process Architecture © Copyright 2009 Software AG BPM: Prospering in a Lean Economy (Asia, 2009) | Page Process Methodology Process Framework Process Lifecycle
  24. 24. 10 Best Practices <ul><li>Think Process; Be Process </li></ul><ul><li>Get Smart! </li></ul><ul><li>Adopt An Executive </li></ul><ul><li>Great Expectations </li></ul><ul><li>Use a Methodology </li></ul><ul><li>The Right Technology </li></ul><ul><li>Hear the Voice of the Customer </li></ul><ul><li>Pick a Project </li></ul><ul><li>Measure First </li></ul><ul><li>Plan to Change </li></ul>© Copyright 2009 Software AG BPM: Prospering in a Lean Economy (Asia, 2009) | Page 1 2 3 4 5 6 7 8 9 10
  25. 25. 10 Pitfalls <ul><li>Ready, Fire, Aim! </li></ul><ul><li>Thinking in Stovepipes </li></ul><ul><li>The RIF Program </li></ul><ul><li>Tactical Training </li></ul><ul><li>False Empowerment </li></ul><ul><li>Ignoring End Users </li></ul><ul><li>Forgetting to Celebrate </li></ul><ul><li>Hard-Wiring the Framework </li></ul><ul><li>Driving Miss Data </li></ul><ul><li>Automate This! </li></ul>© Copyright 2009 Software AG BPM: Prospering in a Lean Economy (Asia, 2009) | Page 1 2 3 4 5 6 7 8 9 10
  26. 26. 10 Places to Go For Help <ul><li>Web Resources </li></ul>© Copyright 2009 Software AG BPM: Prospering in a Lean Economy (Asia, 2009) | Page 1 www.bptrends.com www.bpminstitute.org www.bpm.com www.ebizQ.net www.alignjournal.com www.bpmi.org www.isssp.com
  27. 27. 10 Places to Go For Help <ul><li>Web Resources </li></ul><ul><li>Blogs </li></ul>© Copyright 2009 Software AG BPM: Prospering in a Lean Economy (Asia, 2009) | Page 1 2 Sandy Kemsley – www.Column2.com Bruce Silver – 69.36.189.101/wordpress/ Kiran Garimella – http://www.bpmenterprise.com/blog/ Kiran Garimella – www.ebizq.net/blogs/bpmblog/
  28. 28. 10 Places to Go For Help <ul><li>Web Resources </li></ul><ul><li>Blogs </li></ul><ul><li>Books </li></ul>© Copyright 2009 Software AG BPM: Prospering in a Lean Economy (Asia, 2009) | Page 1 2 3 Business Process Management: The Third Wave by Howard Smith and Peter Fingar Business Process Management: Profiting From Process by Roger Burlton Business Process Change: A Guide for Business Managers by Paul Harmon The Power of Process: Unleashing the Source of Competitive Advantage by Kiran K. Garimella Six Sigma for Dummies by Craig Gygi, Neil DeCarlo, Bruce Williams, Stephen R. Covey Lean for Dummies by Natalie Sayer and Bruce Williams See www.mkpress.com for summaries of more BPM books
  29. 29. 10 Places to Go For Help <ul><li>Web Resources </li></ul><ul><li>Blogs </li></ul><ul><li>Books </li></ul><ul><li>Conferences </li></ul>© Copyright 2009 Software AG BPM: Prospering in a Lean Economy (Asia, 2009) | Page 1 2 3 4 Shared Insights & IIR BPM Conference Gartner BPM Summit Forrester Technology Leadership Forum ISSSP Leadership Conference
  30. 30. 10 Places to Go For Help <ul><li>Web Resources </li></ul><ul><li>Blogs </li></ul><ul><li>Books </li></ul><ul><li>Conferences </li></ul><ul><li>Technology Vendors </li></ul>© Copyright 2009 Software AG BPM: Prospering in a Lean Economy (Asia, 2009) | Page 1 2 3 4 5 www. [leading vendor] .com
  31. 31. 10 Places to Go For Help <ul><li>Web Resources </li></ul><ul><li>Blogs </li></ul><ul><li>Books </li></ul><ul><li>Conferences </li></ul><ul><li>Technology Vendors </li></ul><ul><li>Consultancies and Integrators </li></ul>© Copyright 2009 Software AG BPM: Prospering in a Lean Economy (Asia, 2009) | Page 1 2 3 4 5 6 <ul><li>Look for: </li></ul><ul><li>Experience in implementing BUSINESS SOLUTIONS </li></ul><ul><li>Support for Organizational and Cultural challenges </li></ul>
  32. 32. 10 Places to Go For Help <ul><li>Web Resources </li></ul><ul><li>Blogs </li></ul><ul><li>Books </li></ul><ul><li>Conferences </li></ul><ul><li>Technology Vendors </li></ul><ul><li>Consultancies and Integrators </li></ul><ul><li>Analyst Firms </li></ul>© Copyright 2009 Software AG BPM: Prospering in a Lean Economy (Asia, 2009) | Page 1 2 3 4 5 6 7 Gartner Research (www.gartner.com) Forrester Research (www.forrester.com) AMR (www.amrresearch.com) Burton Group (www.burtongroup.com) bpTrends (www.bptrendss.com) Aberdeen (www.aberdeen.com) Current Analysis (www.currentlanalysis.com)
  33. 33. 10 Places to Go For Help <ul><li>Web Resources </li></ul><ul><li>Blogs </li></ul><ul><li>Books </li></ul><ul><li>Conferences </li></ul><ul><li>Technology Vendors </li></ul><ul><li>Consultancies and Integrators </li></ul><ul><li>Analyst Firms </li></ul><ul><li>Training and Education Organizations </li></ul>© Copyright 2009 Software AG BPM: Prospering in a Lean Economy (Asia, 2009) | Page 1 2 3 4 5 6 7 8 BPtrends (www.bptrends.com) The Association of Business Process Professionals (www.abpmp.com) Process Renewal Group (www.processrenewal.com) Software AG (www.softwareag.com)
  34. 34. 10 Places to Go For Help <ul><li>Web Resources </li></ul><ul><li>Blogs </li></ul><ul><li>Books </li></ul><ul><li>Conferences </li></ul><ul><li>Technology Vendors </li></ul><ul><li>Consultancies and Integrators </li></ul><ul><li>Analyst Firms </li></ul><ul><li>Training and Education Organizations </li></ul><ul><li>Look Around You! </li></ul>© Copyright 2009 Software AG BPM: Prospering in a Lean Economy (Asia, 2009) | Page 1 2 3 4 5 6 7 8 9 Your Company Your Network
  35. 35. 10 Places to Go For Help <ul><li>Web Resources </li></ul><ul><li>Blogs </li></ul><ul><li>Books </li></ul><ul><li>Conferences </li></ul><ul><li>Technology Vendors </li></ul><ul><li>Consultancies and Integrators </li></ul><ul><li>Analyst Firms </li></ul><ul><li>Training and Eduction Orgs </li></ul><ul><li>Look Around You! </li></ul><ul><li>Software AG! </li></ul>© Copyright 2009 Software AG BPM: Prospering in a Lean Economy (Asia, 2009) | Page 1 2 3 4 5 6 7 8 9 10 www.softwareag.com
  36. 36. Software AG BPM Advisory Council <ul><li>Roger T. Burlton Co-founder of the Process Renewal Group and BPTrends Associates; Chair of Shared Insights/IIR BPM Conferences </li></ul><ul><li>Peter Fingar Executive Partner in the Greystone Group; author of Extreme Competition: Innovation and the Great 21st Century Business Reformation; The Real-Time Enterprise: Competing on Time; Business Process Management: The Third Wave </li></ul><ul><li>Joe Francis Managing Director of the Process Core Group; CTO of the Supply Chain Council; Co-founder of SCOR </li></ul><ul><li>Paul Harmon Executive Editor and Founder, Business Process Trends </li></ul><ul><li>Roxanne O’Brasky Founder and President of the International Society of Six Sigma Professionals </li></ul><ul><li>Dr. Richard Welke Founder and Director of the Center for Process Innovation , and Professor of Computer Information Systems at the Robinson College of Business, Georgia State University </li></ul>© Copyright 2009 Software AG BPM: Prospering in a Lean Economy (Asia, 2009) | Page The most respected thought leaders and visionaries in the BPM marketplace.
  37. 37. BPM Resources © Copyright 2009 Software AG BPM: Prospering in a Lean Economy (Asia, 2009) | Page
  38. 38. Take that Next Step, NOW! Ok, what’s your next step? For further information please contact us at: Level 11, 201 Miller Street North Sydney, NSW 2060 (P) 02 9463 6400 (F) 02 9955 1171 (E) www.softwareag.com/au

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