The document discusses how business process management (BPM) can help companies reinvent their operations in today's changing business environment driven by mobile, social, cloud, and big data. It provides examples of how BPM can deliver value across industries by improving processes related to human capital management, finance, compliance, and more. The document also outlines IBM's approach to BPM and examples of how specific customers have benefited.

2. Delivering Enterprise Value with Business Process Management
Desmond DeLandro
WW BUE BPM Channel Sales ddelandro@us.ibm.com

3. New forces are disrupting how companies do business
Mobile requires process reinvention
Forrester forecasts that companies will spend about $900 million on mobile
process reinvention services in 2013 and up to $2.7 billion in 2014
$3.6B
spend by
2014
Cloud deployments force companies to rethink their
processes
Gartner ranks Business Process as a Service (BPaaS) as the fastest growing cloud
segment with 47% annual growth
47%
growth in cloud
processes
Socially-enabled processes drive increased productivity
According to McKinsey, social technologies, when used within and across enterprises,
can raise productivity of high-skill knowledge workers by 20 to 25%
25%
productivity
improvement
Big data drives insight into processes
McKinsey found government administration could save more than €100 billion
in operational efficiency improvements alone by using big data
€100B
government
savings

4. With heightened expectations, customer-centricity is not optional
US health insurance companies stand to
gain over $6 billion by being simpler to
do business with 1
80% of consumers are more likely to
recommend a brand because it provides
a simpler experience 3
1. Global Brand Simplicity Index, 2012, Siegel and Gale
2. Adapt Business Process Improvement for Customer Experience, 2013, Forrester
3. Global Brand Simplicity Index, 2012, Siegel and Gale
“Transforming the customer experience
means changing the way the company
operates” 2

5. Process efficiency alone is no longer sufficient to ensure success

6. Customer-centric business operations drive top line growth

7. Instant
At Internet speed
47% of online bank account opening applicants don’t successfully
complete the process and fund their accounts
Insightful
Targeted and relevant
47% say it frustrates them when companies don't use the
information they have to make interactions and offers more relevant
Seamless
Interconnected & ubiquitous
In the US, mobile banking jumped to 32% of customers in 2012 up
from 21% in 2011
What do you need from your processes in a customer-centric world?
Processes must be:

8. IBM’s approach for reinventing business operations
 To make end-to-end processes more customer-centric in
the age of mobile, social, cloud and big data
 While continuing to drive efficiency and optimization into
day-to-day operations
IBM Confidential

9. Smarter Process Market Assessment
IBM Market ShareMarket Opportunity & Growth
9% CAGR. growth rate through 2015
Competitive Market Data Key Market Trends
Forward Thinking Customers
Implements IBM Blueworks Live to increase
efficiency to help fighting AIDS
3x faster time to market & 25%
cost reduction with IBM ODM
IBM BPM & ODM help deliver better
patient care
Core Competitors
Focused on BPM/ODM
Niche Competitors
Focused on Fast Growing Sub-Segments of
BPM & ODM
Trends Supported By Market Data
106% YoY Growth in BRMS market, and
growing OpenSource BPM interest
BPM with fully integrated
Rules and Industry
Frameworks.
Leading thought leaders (IDC, Forrester and
Gartner) noticing trend picking up force
Using real-time intelligence in business
process is seen as critical
Buyers/decision makers of ODM is shifting
from it to LOB
Process Improvement is a top priority
Gartner iBPM uncovered a need to drive more
intelligent business operations
99% of CIOs with mandates to transform
the business are looking to better processes
Events, Integration &
BPM
9% CAGR
28%% Growth in 2011 YoY, but has
come up short in 2012 with drop in
revenues and profits
53% SOA 36%Business Optimization
11%BPM
(21% YoY Growth in 2011)
Revenue Breakdown:
Full Stack BPM Vendor
No Growth in 2011. BPM not seen as focus which
has come across in Analyst surveys
Pure BPM Player with
strong cloud & mobile
24% Growth in 2011 with strong Gartner
MQ showing
OpenSource Rules and
BPM competitor
Source: GMV2H12 (July 2012) @
Constant Currency
Source: Gartner 2011 Market
Share Report
Source: Gartner 2012 iBPMS MQ
Source: Gartner & IDC Briefings
Source: IBM Global CIO Study 2011
9

10. Through robust and flexible software capabilities and industry expertise,
BPM enables customers to discover, model, execute, rapidly change,
govern, and gain end-to-end visibility on their business processes
10
What is Business Process Management ?
Visibility & Collaboration
Business User Engagement
Efficiency & Productivity
Documentation &
Compliance
Analysis & Optimization
Deployment &
Execution
Software
Expertise
Continuous
Process
Improvement

11. Executive
Management
Customer
Service
Invoice
Reconciliation
Teams
Finance
and Ops
Account
Administration 1. Unstructured Tasks and
Communication (ex
Paper or email)
2. Inefficient Working
Environment Spans
Systems
3. Inconsistent
Prioritization
4. Incomplete or
Inaccurate Data Flow
Between Systems
5. Lack of Control Over
System and Business
Events (Exceptions)
6. Poor Visibility Into
Process Performance
1
2
3
5
4
6
Typical process problems
11
1
2
3
4
5
6

12. Executive
Management
Customer
Service
Risk Management
Teams
Finance
and Ops
Account
Administration 1. Automate workflow &
decision making
2. Reduce errors and
improve consistency
3. Standardize resolution
across geographies
4. Leverage existing
systems and data
5. Monitor for business
events and initiate actions
6. Real-time visibility and
process control
Customer Benefits:
• Huge Reduction in
Manual Work, Errors
• Faster, More Consistent
Issue Resolution
• Easier to Manage the
Business
• Consistent Case Handling
BPM brings order to the chaos
1
2
3
4
5
6
12

13. Enterprise
Content Mgmt
Master
Data Mgmt
Business
Rule Mgmt
Business
Analytics
ERP / CRM
(SAP)
Other Systems
of Record
The System of Engagement for Enterprise Processes
An Integrated Platform to Manage Change & Business Operations
Orchestration
App Development
Visibility & Analytics
GovernanceProcess Design
Integration
Systems of Record
Collaboration
Optimization Exception Handling
Task Management

14. Product Direction: 2013 and Beyond
IBM Business Process Manager
Broaden Support for Process Collaboration Patterns
Enable data-centric, ad-hoc and goal-driven process patterns
Expand data modeling & sharing for multi-user collaboration & audit
Leverage Mobile and Cloud Platforms for Easy Access, Adoption
Simplify use and creation of process apps that are mobile-aware
Easily deploy preconfigured BPM system patterns in either public or private clouds
Benefits
Reduced cycle-time
Increased process capacity (fit for growth)
Maintain current resource level
Western Union Optimizes Agent
Onboarding Processes
IBM and Western Union Confidential
IBM Business Process Manager

15. Reinvention can happen in many areas of the business
Typical entry points for Smarter Process
Banking
 Loan Origination
 Fraud Management &
Compliance
 Customer Care & Insight
Energy & Utilities
 Power Grid Management
 Energy Consumption
Management
Insurance
 Claims Processing
 Policy & Benefits
Management
 Customer Self Service
Travel & Transportation
 Online Ticketing &
Reservations
 Travel & Hotel Pricing
Management
Healthcare
 Claims Management
 Care Process
Management
 Regulation & Compliance
Management
Government
 Citizen Eligibility
 Safety & Security
 Countering Waste, Fraud &
Abuse
Oil & Gas
 Well Design Management
 Production Expense
Management
 Commodities & Merchandise
Management
Retail
 Retail Distribution Supply
Chain Automation
 Customer Loyalty Programs

16. Business Process Management
Applications

17. Where does BPM provide value?
Lead industries
Banking
Oil & Gas
Constructions
Government
Insurance
Insurance
Energy & Utilities
Telecom
Common customer needs?
• Straight-Through processing
• Manage mission critical processes
with best practice adherence
• Real-time visibility, transparency and
audit trail
• Respond to change faster
• Collaboration across and beyond
the enterprise
• Financial, legal, operational risk
mitigation
• Compliance management
• Better customer service

18. Enterprise Applications - General
Human Capital Management
• Recruiting & New Hire Authorization
• Leave request
• Employee Termination
• Salary increase or modification
• Payroll run approvals
• Promotion pre-qualification approval
• Salary deduction per delays request
• Overtime request, Bonus approval
• Department transfer approval
Finance
• Budgeting Process Management
• CAPEX OPEX Spend Management
• Payment Execution and Cash Playing
• Financial reporting
• Accounts receivables write offs
• Out of budget expense approvals
• Direct debit limit approval
Commercial Policy Management
• Vendor / Supplier agreements
• Customer Discounts
• Customer Balances
• Credit limits
• Payment terms
• Quotation management
• Client contract approvals
• Returns acceptance
Compliance & Risk Management
• Supplier, employee, customer contract
approvals, ISO process automation
• Regulatory compliance process management
(Sarbanes Oxley, EAS, COSO, etc.)
• Internal audits over financial reporting
• Management of legal claims and payments

19. Use case 1
Human Capital Management - Challenges
Unstructured exception management
Multiple approvers & different approval levels
Time constraints – “we need it now !”
Multiple data systems
Complex process tracking
Large hiring pipeline
Poor candidates experience

20. High Level ProcessView
Application
is qualified
Passed
MPE
YES
NO
Assess
Application
Schedule
ELATYES
Portal
Login
Waiting for
ELAT results
NO
END
Schedule
Interview
Interview
Assessment
YES
Passed
Interview
Financial
Offer
Submission
NO
Waiting for
MPE results
Passed
ELAT
YES
NO
ApprovedEND
Accepted
YES
NO
Financial
Offer
Approval
Create Job
Campaign
Apply for job
ELAT
SMS
Alert
MPE
SMS
Alert
Email
Alert
Contract
Template
generated

21. Jobs portal

22. Jobs portal

23. Jobs portal

24. Applications pipeline

25. Applications pipeline

26. Applications pipeline

27. Real time BI

28. Real time BI

29. Real time BI

30. Other HR examples

31. Vertical Market Addressability
Manufacturing
• Concept and production design
• Prototyping
• Materials acquisition
• Assembly and integration
• Customer distribution
• Stock reconciliation
• Trouble ticket management
• Incident management
Aviation
• Maintenance management
• Customer loyalty programs
• Crew management
• Crew Certification management
• Complaint Management
• Time and attendance management
• Incident Management
Oil and Gas (Upstream & Downstream)
• Well design management
• RFE’s
• Request to Drill
• Incident management
• Production expense management
• Disposal of assets
• Commodities and merchandise trading
• Bid management
Banking
• Credit card authorization
• New Account Opening
• Account Switching
• Card Dispute Management
• Loan Origination
• ATM Management
• Basil II Accreditation
• Account limit management

32. Use Case 2
Banking - Challenges
Exception management
Poor user experience
Financially and legally sensitive issues
Highly competitive market
Integration of core banking systems
Highly regulated

33. Credit card approval
Credit Card
Application
Adverse
credit
?
Fraud
suspect
?
Approval
?
Fraud
?
Collect Customer
personal details
Credit check
Financial/Card
details
Analysis
Fraud check
Decline letter
Customer
notification
Card pick-up
YES
NO NO
YES
YES
YES
NO
NO
END

34. Credit card approval

35. Credit card approval

36. Credit card approval

37. Credit card approval

38. Investment analysis and approval
Investment planning
Business analytics and real time monitoring
Bid Development, subcontracting & procurement
Investment execution and reception
Energy
Power & Utilities
Oil & Gas
Construction
Building
Public Infrastructure
Aviation
Use Case 3
Capital Investment Management

39. Engineering Procurement
Project
Management
Logistic
Finance
Planning &
Controlling
Strategy
HSE & QAQCOperations IT
ERP B2B
≠
HCM
≠
Portal
≠
ECM
≠
CMS
≠
CAD
≠
CRM
≠
MS
Suite
≠
PM
≠
Bill of materials Budget Information Vendor List Site Permits
Project Plans GIS maps Employee Certifications Resource Allocations
Supplier Contracts Invoices SLA’s Cost Rollups

40. Submit project proposal

41. Submit project proposal

42. Select team

43. Project execution

44. Project execution

45. Project execution

46. Process Live View

47. Jon Wiener
VP of Global Sales
jon.wiener@bpmwave.ch
www.bpmwave.ch
Europe: +4 0735 012 756
GCC +971 50 738 6359
Gulf BPMWave
Emarat Atrium, Sheikh Zayed Road, Dubai , UAE