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  1. 1. IBM SOA BPM and SOA Committed Relationship or Convenience? © 2007 IBM Corporation Agenda Current Market Drivers BPM Background BPM with SOA IBM’s Smart SOA 2 1
  2. 2. The Business Landscape is Changing Forcing Companies of All Sizes to Respond to a ‘Flat World’ Analytical framework from the IBM Global CEO Study to be published May 2008 3 Business Model Innovation Cashferium Challenge Reduce amount of cash in transit via secure merchant cash handling Business Benefits Estimated total savings of Solution €250,000 per site deployed Improved security for mall-based Model critical business processes retailers Create new cash management Adaptability with componentized process to eliminate unnecessary services transfers for retailers and banks 50% reduction in the cost of cash Integrate & automate processes processing for retailers and banks 4 2
  3. 3. Optimisation and innovation demand agility React quickly to capture value from changing market conditions AGILITY: ability to quickly and effectively respond to changes, opportunities and threats Metric-driven Globally Integrated Enterprises need to measure their agility Key Agility Indicators assess operational costs, efficiencies and quality measures Today's Business Metrics = Key Performance Indicators + Key Agility Indicators 5 The clock is ticking, can your business act with agility? How do I optimise my How can I take advantage of business processes to the new global economy? maximise business value? Can I prepare for future What business models changes I can’t see today? will drive my industry in the future? 6 3
  4. 4. Agenda Current Market Drivers BPM Background BPM with SOA IBM’s Smart SOA 7 Business Process Management is a Discipline… BPM solves common business challenges . . . Processes aren’t Bottlenecks prevent Limited visibility documented efficiency into performance Complex integration across Process change KPIs not multiple processes is cumbersome defined BPM Includes Integration Modelling Monitoring Models Process Knowledge Metrics Software Expertise and Assets Forms Rules Engine Workflow Policies Business Logic Methodology BPM governs organisational and operational activities 8 4
  5. 5. Evolution of BPM Just in Lean Time Production TQM BPR Six Sigma Deming/ Ohno Lean Juran GE Sigma 1950 1960 1970 1980 1990 2000 9 Future Requirements of BPM Business event management, as well as business activity monitoring Complex event processing Self repairing processes Increase in requirement for visibility Roles/skills WHAT’S AHEAD Market consolidation Business Rules Management 10 5
  6. 6. BPM Projects are Disguised in Various Ways Marketing, sales, and services Financial (Contact Center Management Optimization) (SOX Compliance) Supply Chain (Inventory Management) Product Lifecycle Management (Category Line Extension) Human Capital Management (Employee Self-Service) 11 Agenda Current Market Drivers BPM BPM with SOA IBM’s Smart SOA 12 6
  7. 7. Translate vision into action with BPM enabled by SOA SOA improves how you SOA at the core of BPM: design, manage, and optimise your business Business processes by enabling: Processes External Solution Building Services (Application & Information) Efficiency Reuse of existing Operational Application Application assets Systems (Application & Information Assets) Content Data Registry Flexibility in change 13 BPM and SOA – Better Together “…SOA and BPM initiatives…are more successful and the benefits are compounded when they are united” “Organizations that align their BPM and SOA initiatives in 2007 will double their likelihood of becoming an industry leader by 2011” Source: BPM and SOA, Better Together, Paolo Malinverno, Janelle B. Hill, Gartner, Feb 2007. 14 7
  8. 8. BPM Enabled by SOA Delivers Real Customer Value Manage Change IBM’s customer order and analysis by modelling and analysing process reduced time and cost of existing or new processes new process improvement releases by 25% Respond Quickly Danske bank realized $2M savings in the with processes based on a first year through company wide increase flexible infrastructure in productivity Ensure Compliance Telefonica to triple its clients in two years by by identifying problems before being able to ensure changes made were they get out of control executing correctly Enhance Business Efficiency Principal Financial reduced paper-intensive by analyzing activity to ensure mortgage process time by 53%, achieved processes meet objectives 34% gains in efficiency and estimated annual savings of $4M 15 BPM can be implemented without SOA, but… …forward progress will be hindered 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 Compare Generally, where we are today alternatives driven by various Directly link optimization process techniques in Create a Begin to model and real-time business Innovate new identify rules to performance businesses, Model and framework that process execution Craft process products, and Measure analyze links business owners automation and services through and monitor business valuation to business processes control across the process an agile business activities enterprise, execution structure customers, and trading partners 16 8
  9. 9. Common Drivers Of BPM & SOA Investment Drivers - Cost of compliance - Cost of development, deployment and maintenance of business applications - Protect current investments and maximise reuse 17 Agenda Current Market Drivers BPM BPM with SOA IBM’s Smart SOA 18 9
  10. 10. There is a Smarter Way! Aligning Service Oriented Approaches Extend Adapt Foundational End-to-End Transform Dynamically A set of guiding principles to extend business value of deployment 19 Software and Expertise Flexible Solutions Designed for Change Business focused Comprehensive Modelling and Simulation BPM Methodology World-Class SOA Pre-built Industry Process Engine Accelerators Real-time Business Best Practices & Activity Monitoring Benchmarks Deeply Experienced Professional Services 20 10
  11. 11. Methodology Proven BPM Enabled by SOA methodology Envision Assess Define Execute Optimise § Evaluate current § Assess and § Develop future § Export firstlevel - level § Optimize Optimise business document business Business measurement strategy current business processes Process management § Review and processes § Develop new Execution framework evaluate § Assess current IT organisation organization Language (BPEL) § Optimize Optimise strategic IT and and current § DevelopKPIs § Install/configure business objectives organisation organization business processes in real § Perform process process manage manage-- time § Select § Document benchmarking opportunities/ current business ment system system projects for rules § Simulate future (BPMS) runtime improvement business environment § Analyze process Analyse processes capability gaps § Choreograph § Develop high - processes level service across applica applica- - model tions and SOA services Process governance 21 BPM facilitates change and accelerates improvements SOA provides the flexible design for future change Simulate and optimise to predict results Deploy using industry- Model the process specific best practices Business Sales Operations Finance Partners Continue to innovate and Measure results with the optimise as conditions change right business metrics 22 11
  12. 12. Questions? 23 12