Delivering value with bpm

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Delivering value with bpm

  1. 1. Delivering Enterprise Value with Business Process Management Desmond DeLandro WW BUE BPM Channel Sales ddelandro@us.ibm.com
  2. 2. 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
  3. 3. 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
  4. 4. Process efficiency alone is no longer sufficient to ensure success
  5. 5. Customer-centric business operations drive top line growth
  6. 6. 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:
  7. 7. 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
  8. 8. 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
  9. 9. 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
  10. 10. 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
  11. 11. 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
  12. 12. 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
  13. 13. 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
  14. 14. 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
  15. 15. Business Process Management Applications
  16. 16. 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
  17. 17. 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
  18. 18. 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
  19. 19. 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
  20. 20. Jobs portal
  21. 21. Jobs portal
  22. 22. Jobs portal
  23. 23. Applications pipeline
  24. 24. Applications pipeline
  25. 25. Applications pipeline
  26. 26. Real time BI
  27. 27. Real time BI
  28. 28. Real time BI
  29. 29. Other HR examples
  30. 30. 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
  31. 31. 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
  32. 32. 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
  33. 33. Credit card approval
  34. 34. Credit card approval
  35. 35. Credit card approval
  36. 36. Credit card approval
  37. 37. 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
  38. 38. 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
  39. 39. Submit project proposal
  40. 40. Submit project proposal
  41. 41. Select team
  42. 42. Project execution
  43. 43. Project execution
  44. 44. Project execution
  45. 45. Process Live View
  46. 46. 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

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