A Practical Approach to Introducing BPM into the Enterprise


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BPM is touted as being able to solve a number of business and technology challenges ranging from simple process modeling to complex application integration. Given this broad range of capabilities how does an organization get started? What tools can be leveraged in a pragmatic, cost-effective way to initiate a BPM project? What are some of the organizational challenges – both business and IT – that need to be addressed? Leveraging recent work at a Fortune 500 company, this presentation will focus on how one CSC client approached adding BPM to their corporate capabilities portfolio. The speakers will cover the challenges, the successes and the failures.

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A Practical Approach to Introducing BPM into the Enterprise

  1. 1. A practical approach to introducing BPM into the Enterprise Jamie Raut & Rob Reti 2004 Technology and Business Solutions Conference June 3-5, 2004 Philadelphia, Pennsylvania Copyright © 2004 Computer Sciences Corporation. All rights reserved. 11/5/2007 11:41:40 AM 1
  2. 2. Speaker Introductions • Robert Reti Principal Consultant, Strategic Services, Consulting Group Senior Business Architect. 9+ years with CSC, CSC Index and The Kalchas Group. BPM advocate since 2000. Initial collaborator with Howard Smith on BPM. Member of BPMI.org and BPMABA. Co-creator of CSC BPR:CI (Continuous Improvement) methodology. Extensive Business Strategy experience. • Jamie Raut Senior Consultant, San Francisco Delivery Services, Consulting Group Technical Designer. 4+ years with CSC Consulting and CSC Australia. BPMABA participant. Application Architect and Developer specializing in J2EE and e4 technologies. Member of the original e3 group in CSC Australia. 11/5/2007 11:41:40 AM 2
  3. 3. Presentation Overview • BPM/BPR Definitions – Technology and Business – CSC Approach • BPM/BPR Methodology in Action – Case study • Questions 11/5/2007 11:41:40 AM 3
  4. 4. An enterprise is only… “a bundle of Business Processes being influenced by and utilizing a range of Assets” Internal External • Employees • Customers • The Board • Partners CRM CIM SCM EIS Business Processes MRP Tangible Planning • People • Corporate • Equipment • Growth • Facilities • Sales Intangible • Segments • Int. Property • Costs • Brand KM ERP The Business Process is the Business The Business Process is the Business 11/5/2007 11:41:40 AM 4
  5. 5. BPM technologies offer a platform for business-led process improvement with unprecedented flexibility and agility 1. Business Led • Designed by process owners BPM • Processes designed in business terms Process Design • IT support to realize B P M Conceptual Overview Tools Process Owner(s)/ User(s) 2. Flexible • Long-lived, complex processes Business Process Layer • Covers automated, human and hybrid Business Process High Level Logic/Rules activities A • Multiple processes on one BPMS BPMS • Open process description languages Process B Orchestration • IT Architecture is process-driven 3. Agile Connectors • Near real-time process editing Middleware Data • Technology abstracted from business processes Applications • Process as executable code & Tools IT Infrastructure Business Process Management (BPM) is key to the next generation process transformation Business Process Management (BPM) is key to the next generation process transformation 11/5/2007 11:41:40 AM 5
  6. 6. Process redesign should be driven by strategy, embedded in the operating model and enabled through BPM technology CSC BPR:CI Methodology 1 2 3 Business Objectives Operating Model Enablement Design ‘Customer-centric’ experience view Information Non- and IT Origination Commercial Experience Experience • How well is Comm Credit info and • How straightforward/simple is the knowledge shared with other origination process? groups (e.g. retail/private) e4 • How many return requests for regarding other products? information are required? Org and Core Culture • How intrusive is the cross-sell, up- Customer • What is expended and elapsed sell activity and is it focused on valuable, relevant products? cycle times to key decision Skills Processes and Norms points? “Adjustment” “Monitoring” Experience Experience • How well can customer make • How well can customers see their changes to their products? products with what degree of Mgmt • How much self service is possible customization? with what safeguards to privacy • How real-time is the monitoring Systems and error-avoidance? info and can it be self serviced? • What interfaces exist for making • How well does monitoring lead to what kind of adjustments? adjustment if required? • Enterprise/BU strategy sets the • End-to-end, process-centric view • BPM provides IT backbone for new process objectives • Op model aligned to strategic goals and existing functionality • Strategic goals evaluated based • Evolving capabilities can impact • New functionality can inform on market demands strategic objectives processes BPR:CI’s bi-directional approach enables enterprise-level continuous improvement BPR:CI’s bi-directional approach enables enterprise-level continuous improvement 11/5/2007 11:41:40 AM 6
  7. 7. A BPM based approach to BPR enables a very rapid parallel and iterative discover, design, develop and deploy cycle Process Activities PROCESS Vision 1. Discovery 2. (Re)Design (Re)Design 8. Analyze • Fast accurate visualization • Process elements captured as data – stored a process repository • Design can analyzed, costed and quantified 3. Simulate 4. Deploy 5. Execute Technology T E C H N O L O G Y Activities Design • Processes can be simulated, automated and deployed on BPMS • Iterative, parallel Mo e nito nag development r Ma approach 6. Operate • Manage and control BUSINESS • Faster deployment executing processes than traditional waterfall 7. Optimize • Activity Monitoring for ongoing analysis and improvement Parallel/iterative BPM development achieves superior results in less time than traditional approaches Parallel/iterative BPM development achieves superior results in less time than traditional approaches 11/5/2007 11:41:40 AM 7
  8. 8. Presentation Overview • BPM/BPR Definitions – Technology and Business – CSC Approach • BPM/BPR Methodology in Action – Case study • Questions 11/5/2007 11:41:40 AM 8
  9. 9. Case Study Background Client • Segment-leading Financial Services company • Strongest, largest, most strategic Line of Business • Industry leading performance by key business metrics • Predominant use of custom, in-house developed technology solutions Account • RFP issued to 8 major IT, Strategy and niche players • CSC deployed a cross-practice team - IT, Process & Domain expertise • Project Teams had equal client and CSC staffing, led by clients & users • Technology and Business Teams tightly integrated 11/5/2007 11:41:40 AM 9
  10. 10. CSC’s BPM/BPR approach is customized to achieve client objectives • Key Client Objectives: – Constraints on growth due to process inefficiencies – Post-merger process inconsistency – Mismatch of customer/market expectations with capabilities • CSC Delivered: – Current State Assessment • 100 interviews, BPM process maps incl. enablement, root-cause analysis – Future State Vision and Design (Process & IT) • Focused on cycle-time and effort reduction, flexible infrastructure – Gap Analysis & Implementation Roadmap • Process, Technology and Organization simultaneously – Business Requirements & Technology Architecture – Rapid Process-Centric Prototyping 11/5/2007 11:41:40 AM 10
  11. 11. A Process-driven Transformation demands an evolution from a Functional to a Process-centric view Traditional Functional “Silo” Deal Analysis Deal Production Deal Support Deal Servicing Deal Security Financials Analysis Search UCC’s Pre Aprvl Initial Analysis Projections BPM-enabled “Process Centric” View Create Materials Document Outside Review Setup Monitor Compl Booking Pre-work Perfect Collateral Book Deal Setup Monitoring Record Scan Documents Maintenance Setup Receive Collateral Maintain Comp Monitoring Deal Maintenance Sec Verification Audit Confirmations Wire Payments Monitor Security Process Demand Final Payments Close Release Collateral Initiation QA Sales Consultation Review Document Collateral Review Data Validation Other 11/5/2007 11:41:40 AM 11
  12. 12. For many processes, the ideal model is Straight-Through Processing (STP), built from modular process components Cyclical Reviews Example: Deal Origination Lifecycle e st eq u ge R • STP minimizes cycle time and effort C h an ewa l Re n Maintain Monitoring • STP avoids iteration between process components 7. Record • STP reuses process components 6. Document Au 5. Execute dit 4. Evaluate l Au dit 3. Define a 2. Qualify e Au dit 1. Acquire D BPM Technology • Universal IT platform for all process Au w dit components Ne l a De • IT architecture follows process not data structures • A BPMS manages the state, flow and monitoring of the deal 11/5/2007 11:41:40 AM 12
  13. 13. The basic systems design uses a Service Oriented Architecture approach, driven by the business process Overall Credit Lifecycle Customer Chan ge Request Cyclical Review Compliance Check Renewal 1. Acquire 2. Qualify 3. Define 4. Evaluate 5. Execute 6. Document 7. Record Maintain New Deal D e a l R Ri AU AU AU AU DIT DIT DIT DIT Qualification Content Risk Content Doc Alert Prospecting Analyzer guidance Guidance guidance Generator Generator Pipeline Pricing/ Approval Pricing/ Collateral Tracker Profitability Grid Profitability Monitoring Business Process Management Process Optimizer Event Tickler/Alerts Integrated System Universal Data Access 11/5/2007 11:41:40 AM 13
  14. 14. Business Process Modeling/Analysis Tool: ProActivity • Flagship product from ProActivity Inc. chosen as BPA tool • Primarily a modeling tool • Add-ons available for BAM • Process exportable to BEA WLI 8.1 and Fuego • Accelerates development in BEA WLI by creating a Java Process Definition (JPD) file as a shell for further development • Captured “as is” and “to be” state using the tool • Existing roles and systems assigned to process steps in “as is” model • Designed roles, systems and services assigned to process steps in “to be” model 11/5/2007 11:41:40 AM 14
  15. 15. The BPMS manages workflow, data and the integration of functionality, within and between process components • BPMS combined with SOA results in highly flexible and extensible solution • BPMS handles the orchestration of business services • Complete abstraction from underlying technologies and systems P TT /H C/ AP RP SO AX- X-M J JA 11/5/2007 11:41:40 AM 15
  16. 16. Delivery Team Composition Officer in Officer in Charge Charge Rosie Rosie Hartman Hartman Technical Technical Project Project Program Program Lead Lead Manager Manager Manager Manager Keith Keith Mike Mike Ken Long Ken Long Mattioli Mattioli Jones Jones Technical Technical Technical Technical Business Business Business Business Business Business Architect Architect Architect Architect Architect Architect Architect Architect Architect Architect Ajay Ajay Jamie Jamie Elaine Elaine George George Rob Reti Rob Reti Chaudhari Chaudhari Raut Raut Anderson Anderson Clark Clark Technical Technical Process Process Process Process Process Process Process Process Process Process Analyst Analyst Analyst Analyst Analyst Analyst Analyst Analyst Analyst Analyst Analyst Analyst Viraz Viraz Philip Philip Jennifer Jennifer Kylie Kylie Johan Johan Robert Pu Robert Pu Fouzdar Fouzdar Kang Kang Tian Tian McKirdy McKirdy Schutz Schutz 11/5/2007 11:41:40 AM 16
  17. 17. Thank you. Questions? 11/5/2007 11:41:40 AM 17