ECM BPM Strategy With Enterprise Architecture Maturity Model


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Applying the MIT Enterprise Architecture Maturity Model to ECM and BPM

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  • It is necessary to understand the business operating model.
  • Seamless access to shared dataAll things to some peopleIntegrated but not standardized product lines and functionsBuilt to enhance customer service
  • EA envelopes IT Arch or is the marriage between the business and IT
  • If you don’t know where you are going, you’ll never get there. Each company must understand the phases that it must pass through and the process of moving from phase to phase. Just like in software development, you cannot skip a phase.
  • Business Silos – Vertical applications, separate admin systems, multiple development teams, more than one CIOStandardized Technologies – Standard toolkit to build business applications. Cuts costs, allows for IT people to move around.Optimized Core – Vertical walls between business start to come down. More shared infrastructure, faster time to market, enterprise services.Business Modularity – The dream of every business, having the pieces in place to deliver business applications quickly to allow the business to lead the market.This is the result of a study from MIT’s Sloan School of Management released in 2006 “Enterprise Architecture as Strategy”Some large financial services companies were a part of the study.
  • These three area of knowledge are necessary to build a team that can take the business vision and turn it into an enterprise strategy.
  • Financial services companies deal in content and process. Content comes in from many sources and in many forms. It is stored in a common repository (or group of repositories federated together to look like one). Three things can happen to this content:It can just stay in the repository i.e. archived.It can be attached to a in-process workflow.It can launch a new workflow.Content arrival is decentralized. Content storage is centralized. Content launches business processes that are decentralized. A claim can be processed in Paducah, KY while a policy can be underwritten in Moosejaw, Saskatchewan. Business processes produce more content (audit trails, event logs, reports, database updates, reports, datastreams, corp documents, etc.) which are stored in the repository. This content can then be distributed outside the enterprise to customers, vendors, clients.
  • Underneath the content and business processes are the engines the drive everything. These engines must work as one to move the content through the enterprise. Content is centralized into the repositories, processes are decentralized.
  • Almost everything that an financial service company does is built around the case. Each case has certain object relationships while it is in process.
  • Current and Target State diagrams combined with vision statements form the foundation for an enterprise CM/BPM strategy. Each project must contribute something to the enterprise vision.
  • The business must have a vision.Moving from Bus Silos to Standard Tech is the most difficult phase transition in the arch maturity processThe decision of core technologies is first and foremost a business decisionSome of the requirements for standardized CM and BPM arePerformanceScalabilityCompanies business strengths
  • From a high of 120 to today’s price of $7 the company has lost 95% of its market cap. This is a company that will not be around much longer.The problem is that no one is in a position to buy them. The big boys (Oracle, MSFT, IBM) already have made their purchases and have their products and visions in place.
  • Meanwhile, IBM is near its 2000 mania highs. It has weathered the storm well and is positioned to weather the next downturn.
  • The same mentality is applied to developing software. Never code for the exception, always the rule. Speed up the processing of 80% of the claims and this frees up resources to deal with the other 20%. Building for the exception causes delay, poor performance, and business rules that cannot be understood.An ECM/BPM platform that can do 80+% out-of-the-box and is well integrated will put you miles ahead. Projects and strategies do not fail because of technology (this is another of my presentations, “Why DoProjects Fail?”
  • One CTO said “We will not implement a content engine in Windows”. The performance is not there.Content must be able to be distributed around the enterprise for business processing (caching and prefetching of images)FileNet has been doing these things for over 25 years.
  • ECM BPM Strategy With Enterprise Architecture Maturity Model

    1. 1. Enterprise Content and Business Process Management<br />Developing an ECM/BPM architecture<br />David M Champeau<br />Feb 2008<br />
    2. 2. The Operating Model<br />Coordination Model<br />Organic: stream of product innovations easily made available to existing customers using existing integrated channels<br />Acquisition: can acquire new customers for existing products but must integrate data<br />Diversification Model<br />Organic: small business units may feed core business; company grows through business unit growth<br />Acquisition: unlimited opportunities; must ensure shareholder value<br />Unification Model<br />Organic: leverage economies of scale by introducing existing products/services in new markets; grow product line incrementally<br />Acquisition: can acquire competitors to leverage existing foundation; must rip and replace infrastructure<br />Replication<br />Organic: replicate best practices in new markets; innovations extended globally<br />Acquisition: can acquire competitors to extend market reach; must rip and replace<br />High<br />Business Process Integration<br />Low<br />Low<br />High<br />Business process standardization<br />
    3. 3. Operating Model Examples<br />Coordination Model<br />MetLife<br />Diversification Model<br />Carlson Companies<br />Unification Model<br />Delta Airlines<br />Replication Model<br />ING Direct<br />
    4. 4. Characteristics of Four Operating Models<br />Coordination<br />Shared customers, products or suppliers<br />Impact on other business unit transactions<br />Operationally unique business units or functions<br />Autonomous business management<br />Business unit control over business process design<br />Shared customer/supplier/product data<br />Consensus processes for designing IT infrastructure services; IT application decisions made in the business units<br />
    5. 5. Coordination Model Example<br />Merrill Lynch Global Private Client<br />Single face to customer through multiple channels<br />Customer transactions are independent, but product data is shared<br />Individual financial advisors own their customer relationships<br />Financial advisors customize their interactions with customers<br />Financial advisors in 630 offices exercise local autonomy within bounds of their responsibilities<br />Total Merrill platform provides shared access to technology and data<br />IT organization provides central technology standards<br />Goals<br />Seamless access to shared data<br />All things to some people<br />Integrated but not standardized product lines and functions<br />Built to enhance customer service<br />
    6. 6. Enterprise Architecture vs IT Architecture<br />Enterprise Architecture<br />Organizing logic for business process and IT infrastructure reflecting the integration and standardization requirements of the companies operating model<br />Identify the processes, data, technologies and customer interfaces that take the operating model from vision to reality<br />IT Architecture<br />Business process architecture (tasks)<br />Data or information architecture<br />Application architecture<br />Infrastructure and standards<br />
    7. 7. Understand Where You Are and Where You Want to Go<br />Undertand that you must go through certain phases as a company<br />It takes a team effort<br />Everything revolves around the business<br />IT needs to learn the business before offering solutions<br />
    8. 8. Phases of Architecture Maturity<br />Business<br />Silos<br />Standardized<br />Technologies<br />Optimized<br />Core<br />Business<br />Modularity<br />Phase 1<br />Phase 2<br />Phase 4<br />Phase 3<br />You are here<br />Some of your competitors are here<br />
    9. 9. Building a team<br />3 areas of knowledge are required<br />Business<br />Technology<br />Process<br />
    10. 10. CM and BPM enterprise model<br />Scan<br />BP1<br />Rpts<br />Fax<br />BP2<br />XML<br />Content<br />Repository<br />Content<br />Repository<br />PDF<br />BP3<br />PDF<br />XML<br />BP4<br />DB<br />email<br />
    11. 11. CM and BPM enterprise model<br />CM and BPM enterprise model<br />Scan<br />BP1<br />Rpts<br />Fax<br />BP2<br />XML<br />Content<br />Repository<br />Content<br />Repository<br />PDF<br />BP3<br />PDF<br />XML<br />BP4<br />DB<br />email<br />Content<br />Engine<br />Process<br />Engine<br />Appl<br />Engine<br />Rules<br />Engine<br />Web<br />Services<br />Admin<br />Systems<br />Content Repositories<br />
    12. 12. Insurance Business Model<br />Case management<br />Case - a specific occurrence or matter requiring discussion, investigation and decision<br />A Case contains one-to-many object relationships<br />Claim can relate to multiple policies and accounts<br />Address change can affect multiple accounts<br />A Case is a work-in-process folder<br />
    13. 13. Where to Start<br />Current State diagram<br />Target State diagram<br />Identify the gaps (gap analysis)<br />Each future project must contribute something to the Enterprise Architecture<br />
    14. 14. Next Step – Standardized Technologies<br />Understand the Business Vision<br />Moving from Business Silos to Standardized Technologies requires some hard decisions<br />Understand that we are making business decisions<br />Identify requirements for the technologies<br />
    15. 15. Technology Business Requirements in CM and BPM<br />How do we decide on which company(s) is best positioned to provide strategic technologies?<br />One place to start is the stock prices<br />
    16. 16. Example - Stock price of Tibco<br />
    17. 17. Stock price of IBM<br />
    18. 18. Enterprise CM and BPM Requirements<br />Integrated product suite<br />Performance<br />Scalability<br />Centralized and Distributed<br />Integration with other technologies<br />Complete content federation<br />
    19. 19. Integrated Product Suite<br />Content Management<br />Business Process Management<br />Records Management<br />Email Management<br />Web Content Management<br />Application Development Frameworks (BPF)<br />Component Plug-in capability<br />
    20. 20. Why an integrated product suite?<br />Why not mix and match pieces from many companies?<br />Too much time wasted trying to figure out how the pieces fit together<br />Perfection does not exist<br />Begin today implementing a platform that does 80%<br />This will free up resources to deal with the other 20%<br />
    21. 21. Performance<br />Federated content repositories need high-performance content engines<br />Ability to cache images around the enterprise<br />
    22. 22. Scalable<br />Horizontally<br />Build up the core engines<br />Vertically<br />Distribute engines<br />Standardized server platform<br />
    23. 23. Integration with other technologies<br />LDAP<br />Rules engines<br />Web services<br />On-Demand<br />Sharepoint connectivity<br />
    24. 24. Expanding the vision<br />Process Analysis<br />Process Simulation<br />Records Management<br />Records Crawler<br />Electronic Forms<br />System Monitoring<br />Process modeling tools<br />