2009 11-04 mm (carson, california - csu-dh) bpm introduction

3. Traditional Application • Targeted to a single user • Examples • Writing a document • Loan Calculator • Designed to achieve a single task • Developed using a programming language 3 © 2009 IBM Corporation

4. Workflow Application • Targeted to a team • Involve several specialized users • Managers, editors, agents, clerks, supervisors, etc. • Examples • Document review • Loan Approval • Designed to achieve a complex business goal • Developed using a Workflow Management System • User Interface design • Define how work flow between users • May still require some programming 4 © 2009 IBM Corporation

7. Business Process Management Application • Targeted to a team or line of business • Examples • Design review • Loan origination • Designed to implement a business process • Process improvement • Developed using a BPM system • User Interface design • Define how work flow between users and applications • Define how to monitor key business metrics • May still require some programming 7 © 2009 IBM Corporation

8. Remove process logic from the application  Elevate business logic – Liberates processes from application code  Eliminate process latency – Strips out “dead time”  Enforce process integrity – Ensures processes are executed correctly – Reduced errors  Enhance process execution – Liberates processes from manual constraints  Enhance task execution – Maximizes user productivity – Resource pooling; workload balancing 8 © 2009 IBM Corporation

9. Evolution of Process Technology “The ability to change is far more prized than the ability to create in the first place.” Business Process Management — The Third Wave Howard Smith & Peter Fingar 1st Wave: Taylorism 2nd Wave: Business Process 3rd Wave: Business Process Reengineering Management (BPM) Frederick Taylor’s “Scientific Processes manually re- Facilitating the ability to change Management” theory engineered (typically a one time Manage and optimize business Division of labour event) processes Managerial control of the Processes implemented via ERP software Perceived as potential next “big workplace thing” in consulting Cost accounting based on Business & process logic hard- systematic time-and-motion coded study Led to EAI (application to application focused) Source: David Knight 9 © 2009 IBM Corporation

10. What is Business Process Management? Process Optimization Continuous Process Improvement: Measurement, Analysis, Simulation, BAM, Change Management External Process Enablement Process Flow Outside the Enterprise: User Inbox, Customer Interaction, Partner Collaboration Customers Suppliers Partners Application Processes Process Flow for automation among systems: Application Events, Dynamic Data Routing, Automatic Updates Workflow Process Flow for human-to-human work: Task Completion, Work Queues, Content Lifecycle, Forms Routing Source: Gartner, FileNet 10 © 2009 IBM Corporation

12. BPM application development stages Business User Business Analyst IT Developer Document Review & Refine Complete Test & Deploy Diagram Review Configure Test Define Roles Simulate & Simulate & Document Steps Document Steps Define Roles Validate Deploy Deploy Validate Annotate Annotate Define In-baskets Define Diagram Diagram Build UI Build UI 12 © 2009 IBM Corporation

15. Continuous Process Improvement Process Definition Process Simulation North $8.00 South Pre-processing $7.00 Underwriting $6.00 $5.00 $4.00 $3.00 $2.00 $1.00 $0.00 Actual Simulation Process Analytics 15 © 2009 IBM Corporation

16. Business Agility Using BPM  Change the process model, not the code  Processes can easily change to reflect and meet changes in the business  Changes are business lead – Process owners are responsible and accountable for process change 16 © 2009 IBM Corporation

19. Microscopic Visibility 11-JUL-2004 13:45 DJONES Task 1 Complete 11-JUL-2004 13:56 MSMITH Task 2 Complete 11-JUL-2004 14:45 DSMITH Task 3 Complete Order Order  Generates business events; full audit trail  Visibility down to an individual process and tasks  Demonstrate compliance  Provide “Live” status 19 © 2009 IBM Corporation

20. Macroscopic Visibility Real-time Workload  Higher level – trends  Real-time process visibility Volume – Better tactical decisioning  Historical process visibility – Better strategic decisioning Tasks 20 © 2009 IBM Corporation

22. Business Activity Monitor - BAM  Real-time operational visibility & performance management  Real-time threshold monitoring & alerts  Comprehensive event detection & correlation  Aggregate and correlate multiple data sources  BPM actions automatically tied to alerts  User-configurable dashboards 22 © 2009 IBM Corporation

25. Building a Smarter Planet Thinking and acting in new ways to make our systems more efficient, productive and responsive New Green Intelligence and Beyond “Data is exploding and “Our resources are it’s in silos” limited” I Need Insight I Need Efficiency Dynamic Smart Work Infrastructure “New business and “My infrastructure is process demands” inflexible and costly” I Need to Work I Need to Respond Smart Quickly 25 © 2009 IBM Corporation

26. Smarter Planet ….. Our world is becoming INSTRUMENTED By 2010, 30 billion RFID tags will be embedded into our world and across entire ecosystems Our world is becoming INTERCONNECTED An estimated 2 billion people will be on the Web by 2011 …. and a trillion connected objects – cars, appliances, camera, roadways, pipelines – comprising the “Internet of Things” All things becoming INTELLIGENT Every day, 15 petabytes of new information are being generated. This is 8x more than the information in all U.S. libraries 26 © 2009 IBM Corporation

27. What Does It Mean to Become Smarter? New Data Sensors and Metering Sensors and Metering  Data collection Event Processing + Real Event Processing + Real Time Data Integration Time Data Integration  Data Integration New Insights Real Time + Historical Real Time + Historical  Comparison of historical data, Data Data with newly collected data Data Modeling + Analytics  Data modeling and analytics to Data Modeling + Analytics create insights from data to feed decision support and actions Process Visualization & Visualization & Innovation Decisions Decisions New and Optimized Business Processes Leading businesses today are benefiting from new sensor data when combined with IBM’s business process management, event processing & business optimization capabilities 27 © 2009 IBM Corporation

28. Three Levels Of Maturity – Three Levels Of Value 0 1 2 3 4 5 Acknowledge Process Intra-Process Inter-Process Enterprise Agile Business Operational Aware Automation Automation Valuation Structure Inefficiencies and Control and Control Control Generally, where we are today Compare alternatives driven by various Automate Begin to process Integrate Directly link optimization techniques in Optimize Create a business identify model and real-time Innovate new process rules to performance businesses, Model and execution framework that Measure owners Craft process products, and analyze links business and monitor business Collaborative automation and valuation to services through business processes development control across the process an agile business activities enterprise, execution structure customers, and trading partners (industry) 28 © 2009 IBM Corporation

29. References • IBM Academic Initiative • http://www.ibm.com/university • • IBM Students Portal • http://www.ibm.com/university/students • BPM Product Sample • http://www.ibm.com/software/info/bpm 29 © 2009 IBM Corporation

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