2 Deon Newman Director, SOA Marketing Business Process Management Enabled by SOADeon NewmanDirector, SOA Marketing
3 CEO’s Cite Innovation as Top Priority for Business Business Model Innovation delivers the greatest returnsCEO’s Cite Innovation as Top Priority for BusinessResults of 765 CEO interviews worldwide:Out Performers place 2X emphasis on Business Model innovation than under performersCEOs are under intense pressure to innovateCorporate culture is critical to sustained innovationBusiness model innovation is the new strategic differentiatorMain Point: Innovation is a priority; Business Model Innovation differentiates the outperformers from the underperformers by 2X’s“Constant reinvention is the central necessity at GE… We’re all just a moment away from commodity hell.”– Jeffrey Immelt, Chairman and CEO, GECEOs are under intense pressure to innovate There’s a “glass half full/half empty” dichotomy at work here:65 percent of CEOs recognize that their organizations must make fundamental changes to respond to external forces in the next two years.Yet fewer than half believe they have managed this kind of change successfully in the past.Business model innovation is the new strategic differentiator This is an important departure from the 2004 survey, and reflects a growing sophistication and understanding about how and where innovation occurs. While a lot of the current buzz about innovation begins — and ends — with product and service innovation, the survey findings make it very clear that that view is too limited:Companies that were most successful at growing their profitability had a much stronger focus on business model innovation than others. Said one CEO, "Products and services can be copied. The business model is the differentiator." The study shows that market outperformers are the ones who put the twice the emphasis on business model innovation than the market underperformers.Fully 65 percent of chiefexecutives and other leaders say they will have tomake fundamental changes in their businesses overthe next two yearsSource: IBM 2006 Global CEO Study
4 Which key business priorities will your IT organization implement or support in 2007? Main Point – This is a recent study done by CMP Media which asked companies what their top IT priorities were. As you can see, the top two priorities involved improving business processes and providing better visibility into the business. Clearly these are BPM priorities. However, I would also argue that the remaining priorities – improving customer service, worker productivity, business agility, imrpoved ROI on IT investments, and customer collaboration – are also all BPM projects.Note: Multiple responses allowed.Data: InformationWeek Research Outlook 2007 study of 300 business technology professionals
5 Why? Inability to modify processes on the fly. Inflexible and Outdated Processes Are the Root Cause of Many Corporate DisastersMajor Airline strands passengers on runway for 10 hours – no food, overflowing toiletsMarket-leading cell-phone provider exits market after small fireMain Point: Processes, or the inefficient or inflexible nature of them, and the inability of companies to adapt, evolve, and innovate, will spell the demise of their existExample 1: Jet Blue – Had 9 planes on tarmac, customers trapped in sweltering cabins, with virtually no food and stinking toilets. Company failed to cancel flights but planes kept landing. Causing a traffic jam on the ground. Same lean organization was ill-prepared for a single anomoly. Crew members couldn’t get through an overwhelmed communication system. Reservations system could not handle flood of calls from passengers trying to figure out if they should go to the airport…Quotes from InformationWeek and CIO: “So when the ice storms hit they had no flexibility in their operations; they had no way to respond effectively; they couldn't be agile. They had no Plan B (and winners always have Plan B).”Quotes from CEO: “In our high-change, real time world, responsive-ness trumps efficiency. Companies ignore this at their own risk.”On May 11, 2007, Jet Blue corporation asks their founder, David Neeleman to step down from his role as CEO (he will continue as chariman) but the move signifies the company’s falling confidence in his ability to manage them through the winter-storm crisisExample 2: Nokia / Erricson:IT BEGAN on a stormy evening in New Mexico in March 2000 when a bolt of lightning hit a power line. The temporary loss of electricity knocked out the cooling fans in a furnace at a Philips semiconductor plant in Albuquerque. A fire started, but was put out by staff within minutes. By the time the fire brigade arrived, there was nothing for them to do but inspect the building and fill out a report. The damage seemed to be minor: eight trays of wafers containing the miniature circuitry to make several thousand chips for mobile phones had been destroyed. After a good clean-up, the company expected to resume production within a week.That is what the plant told its two biggest customers, Sweden's Ericsson and Finland's Nokia, who were vying for leadership in the booming mobile-handset market. Nokia's supply-chain managers had realised within two days that there was a problem when their computer systems showed some shipments were being held up. Delays of a few days are not uncommon in manufacturing and a limited number of back-up components are usually held to cope with such eventualities. But whereas Ericsson was content to let the delay take its course, Nokia immediately put the Philips plant on a watchlist to be closely monitored in case things got worse.They did. Semiconductor fabrication plants have to be kept spotlessly clean, but on the night of the fire, when staff were rushing around and firemen were tramping in and out, smoke and soot had contaminated a much larger area of the plant than had first been thought. Production could be halted for months. By the time the full extent of the disruption became clear, Nokia had already started locking up all the alternative sources for the chips.That left Ericsson with a serious parts shortage. The company, having decided some time earlier to simplify its supply chain by single-sourcing some of its components, including the Philips chips, had no plan B. This severely limited its ability to launch a new generation of handsets, which in turn contributed to huge losses in the Swedish company's mobile-phone division. In 2001 Ericsson decided to quit making handsets on its own. Instead, it put that part of its business into a joint venture with Sony.This has become a classic case study for supply-chain experts and risk consultants. The version above is taken from "The Resilient Enterprise" by MIT's Mr Sheffi and "Logistics and Supply Chain Management" by Cranfield's Mr Christopher. It illustrates the value of speed and flexibility in a supply chain. As Mr Sheffi puts it: "Nokia's heightened awareness allowed it to identify the severity of the disruption faster, leading it to take timely actions and lock up the resources for recovery."Other examplesExample 3: In 1998, Netflix opens for business with an online video rental business model. Flat fee plus shipping per DVD. It begins to build out it’s infrastructure of supply chain and distribution centers. By 1999, they launch their monthly subscription for ‘all-you-can-it’ service. At the sametime Blockbuster launches its rewarded program – a paid membership program to encourage customers to rent more frequently. Through the next 3 years Netflix continues to build its customer base and infrastructure while Blockbuster focuses on its traditional business.In 2002, Netflix goes public and by 2003 they are profitable. In 2002, Walmart also enters in the online DVD market. This is probably when the “Oh Crap” moment happened at Blockbuster.2 years later Blockbuster launches it’s online business to compete with Netflix – it’s a ‘me-too’ replica of the Netflix model although many of Blockbuster’s processes are duplicated and separate from the processes it uses for it’s bricks and mortar business. Also, many processes are still manual in order to get up and running quickly.In early 2006, Netflix files patent infringement suits against Blockbuster alleging that Blockbuster infringed on it’s ‘dynamic queueing’ process and its communication and delivery processes.In late 2006, Blockbuster relaunches its online business with a hybrid offering that combines online and instore rentals. It hopes that this will help differentiate its service and combat Netflix.So how could Blockbuster have avoided this? Gotten earlier warning? Reacted faster? Let’s see how BPM could have helped….Example 4: Montgomery Ward / Woolworth’s / K-Mart / A&P, Safeway, others…all succumbing to Wal-Mart’s efficincy, logistical mastery, and innovative use of technology.Why? Inability to modify processes on the fly.
6 Business Process Management is a Discipline… Processes aren’tdocumentedBottlenecks preventefficiencyLimited visibilityinto performanceComplex integrationacross multiple processesProcess changeis cumbersomeKPIs notdefinedBPM Solves:Expertise that Delivers BPMSoftware that Enables BPMBPM Includes:Rules EnginePoliciesBusiness LogicWorkflowModelsIntegrationModelingMonitoringFormsMethodologyProcess KnowledgeMetricsMain Point: So let’s define what IBM means by BPM and what we mean by “BPM Enabled by SOA”.First, what is BPM: Business Process Management is a discipline combining software capabilities and business expertise to accelerate process improvement and facilitate business innovationNext, What is Business Process Management Enabled by SOA? ... BPM enabled by SOA provides a flexible architectural style in support of efficient process change and rapid process deploymentPoint 1: IBM’s leadership in the BPM market is established (Gartner/Forrester have recognized as much). We define BPM is a “discipline” and requires both software and expertise to deliver full value.Point 2: The other main point of this chart is to associate SOA with BPM and describe how SOA makes BPM better, stronger, faster…preparing the company for the inevitable future change in process activity AND the future change in supporting IT. BPM ENABLED BY SOA means you can change the process w/o affecting the IT OR change the IT with out affecting the process.For success in BPM projects, it is critical to utilize not only SOA-enabled software, but also the expertise to deliver and fulfill the promise of BPM. The combination of software and expertise is what IBM is calling “Higher Value BPM”.First, let’s define BPM:Business process management (BPM) governs an organization’s cross-functional, core business processes.It achieves strategic business objectives by directing the deployment of resources from across the organization into efficient processes that create customer value.This focus on driving overall bottom line success by integrating verticals and optimizing core work (e.g. order-to-cash, integrated product development, integrated supply chain) differentiates BPM from traditional functional management disciplines.In addition, intrinsic to BPM is the principle of continuous improvement, perpetually increasing value generation and sustaining market competitiveness (or dominance) of the organization.The benefits to a customer of higher-value bpm include:Process insight and optimization – According to Gartner, the first step in many engagements is to simply monitor what is happening. Having the ability to truly understand what is happening inside the business will then cement and facilitate the ability to enhance the most important and impactful parts of an organization..Accelerated process improvement - It’s not just about “improvement and optimization”…it’s about “how fast you can identify the parts of the business that will drive change and how fast you can implement and deploy those changes to make the improvement happenFlexible design for future change – Finally, it’s critical to not only make the changes once, but to be prepared for the inevitable future changes that every organization faces. Using an SOA complimented by best practices, will ensure the deployed and optimized processes areFirst, let’s discuss expertise: “Expertise” does not equate simply to “implementation services”. Sure, expertise can be in the form of services…but today, it’s much, much more than that. Expertise is the knowledge about the BPM engagement…but it can be packaged in different forms. Expertise can be packaged as services but also as “pre-built” components based on best practices. “pre-built process models, and agreed-to methods.For software, we based the set of capabilities that we bring to market on discussions with hundreds of customers, and in-depth reviews with leading industry analysts, such as Gartner’s David McCoy, Jim Sinur, and Janelle Hill, Forrester’s Connie Moore and Ken Vollmer, and independent analysts such as Bruce Silver, Paul Harmon, and others. The key capabilities include modeling tools with simulation and analysis, policies and rules, integrated development environment, run-times, and a management environment that includes dashboards and monitoring. Repositories such as service repositories to register and house SOA based business services help accelerate projects.Bringing together the most advanced SOA based software capabilities along with broad expertise will provide a higher-value BPM solution.BPM governs organizational and operational activities
8 BPM Starts and Ends with Business Value CollaborationProcess GovernanceBusiness StrategyTrack metrics to measure process performanceHarvest data to optimize process performanceAchieve insight and receive alerts to small problems before they become big onesOptimizeExecuteDeploy on a SOA platformAutomate processes improve profitabilityFacilitate human interaction to increase work efficiency and reduce errorsDefineAlign business strategy and executionCommunicate effectively between business and ITCollaborate to improve business process designLeverage industry standards and frameworksUnderstandAssess, capture, and analyze core behaviorUnderstand value processesIdentify redundant, duplicated, and inefficient processes
9 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”Main Point: Gartner publishes paper “SOA and BPM are Better together” Feb 2007.In February 2007, Gartner Research published a report tauting the synergies between BPM and SOA and citing how the benefits are compounded when BPM and SOA are used together. Of course, we at IBM have been saying that all along but we were happy to see the finally agreed with us.BPM and SOA are becoming business and IT imperatives for companies that want to become and maintain leadership in their industry. Companies that start early will be ahead of the pack.Source: BPM and SOA, Better Together, Paolo Malinverno, Janelle B. Hill, Gartner, Feb 2007.
10 ….and here’s why SOA at the core of BPM: SOA improves how you design, manage, and optimize your businessprocesses by enabling:Solution Building EfficiencyReuse of existing assetsFlexibility in changeSOA at the core of BPM:Services(Application & Information)Operational Systems(Application & Information Assets)Business ProcessesDataRegistryApplicationContentExternalMain Point: Business processes and the underlying IT infrastructure treated as standardized components (services) to be reused and combined to address changing business prioritiesBPM Enabled by SOA Builds Flexibility on Your Current InvestmentsProbably all of you have already invested in critical IT systems and applications. At the same time as these systems and applications serve a business purpose they also, typically, tie you down to a specific way of running the business. It takes too long or is impossible to change the way the business runs because of the nature of the systems you have built or bought. There are two very important criteria for success as you move to a BPM and SOA way of doing business: First , don’t rip and replace – i.e. continue to use existing IT investments wherever possible; Second, leverage existing I/T investments in new flexible ways for new advantage in the market.BPM and SOA allow you to do both and this is fundamental to why companies are getting excited about the approach. SOA is the next stage on the “integration” continuum. The approach is generating excitement because, done right, it allows you to leverage what you have already done in a cost effective manner
11 BPM & SOA Drove Business and IT Success IBM & SOA at WachoviaBPM & SOA Drove Business andIT SuccessMain Point: Sometimes it’s best to hear it straight from a customer.Let’s see how SOA from IBM drove business and IT success a real company. Here’s what Wachovia has to say. They are one of the many customers that IBM has helped implement SOA for better business flexibility.<technical note – put the video (entitled wachovia_BQ_ exe) and this ppt file on your desktop and run the ppt in screenshow mode. Click the Wachovia icon and run the video directly. Expand video to full-screen>Troubleshooting:Place both the Wachovia Video and Presentation #1 on your computer "Desktop"Open Presentation #1 and go to the Wachovia slide (chart #12)Right-click on the Wachovia icon and select "Remove Hyperlink"Right-click again on the Wachovia icon and select "Hyperlink"Point the hyperlink to the Wachovia Video file located on your desktop and click "OK"Run the presentation in SlideShow mode, go to the Wachovia Slide, and then click on the Wachovia iconDepending on your security settings, you may get a warning message - just choose "OK"
12 Customers can start BPM in different ways Five Flexible Starting Points for BPMCustomers can start BPM in different waysBusiness Process ManagementModeling & SimulationBusiness Activity MonitoringProcess AutomationRules and Pre-built FrameworksContent Centric ProcessingMain Point: Customers can start from any number of places depending on their type of BPM project. There is no “required” starting point because the software offerings are interchangeable, and can be deployed independently, or in combination. The components are comprised of modeling and simulation, business activity monitoring, process execution, rules and pre-built frameworks, and content. IBM is a leader in providing a combination of the 5 core software components.Design and simulate business processesTrack performance, gain insight, and take actionChoreograph processes across applications and systemsManage process rules and accelerate design and implementation timeManage processes where content is used as input for a decision or produced as the output
13 Business Level Modeling and Simulation Use ROI reports to compare and analyze ResultsModel “what if” scenariosUse simulation capabilities to:Assess risk mitigationMake investment decisionsCalculate value of improvementsMain Point: Processes are important to not only understand, but it is also important to know how they will impact the business.Quote:Business process simulation and analysis is a critical component of BPM. Predicating your business outcomes is invaluable, it can determine the go or no go of a project, justify your resource investments, help you determine what will yield the best bang for your buck. Once you have determined the best project investment, you can better plan and budget. After deployment you can continue to optimize your business by examining bottlenecks or workload imbalances, and stop any issues while the process executes in production and before problems arise.Its important to understand what makes your business special, or in other words, what differentiates your business from your competitions. First you must identify those core processes that make you stand out from the competition. Once you have identified those, you should now either import any Visio model you may have already started, or create the new model.Once you have the model of your process, you will need to identify the tasks that will have the greatest impact to your process performance. This can be done by running a simulation based on the criteria you provide that reflects your processes environment. If you believe that this process is not running at an optimal level, or if you find bottle necks or workload imbalances, you can modify the model to create what if or “to-be” scenarios.Iterative and continuous improvementImport Visio ModelsWebSphere Business Modeler
14 Support for Visio Documentation IBM Process ModelsModeling & Simulation17 Industry-Specific Process Maps and Models based on IBM best practices and the Standards-Based Process Classification FrameworkHelps clients kick-start process-optimization engagements.Support for Visio DocumentationBoth Modeling tools support leveraging existing Visio documentsWebSphere Business Modeler can import Visio drawingsFileNet P8 Process Designer contains Visio BPMN paletteIndustry-specific process models for 17 industries built to APQC process classification frameworkProvides a reference template to accelerate business process analysisRapid process application development built with industry context and standardsBPMN standard based process modeling using Visio with ability to map it to XPDL for executionBusiness analyst and other non-IT staff can model their process, document them, and communicate them to other organizations including ITRapid process application development; high-fidelity mapping business requirements to IT
15 Identify activities and areas for improvement Driving force behind BPM AdoptionSynchronize SAP ERP system with various production plant software systemsManual processes requiring data gathering, was time consuming and error proneBPM Disguised as:Product Lifecycle Management (Plant Operations)Supply Chain(Inventory Management)Modeled processes for visibilityAligned business and technology prioritiesUsed adaptors to integrate custom apps with SAPDeployed improved processes on an SOANewly Automated System Running on WebSphere SOA FoundationIncreases Productivity and Reduces Errors for SELEXAbout SELEX: SELEX Sistemi Integrati (SELEX), located in Rome, Italy, is a world leader in the design, manufacture, supply, and integration of defense systems. SELEX also creates sensors, radars, mission critical command and control and management systems, and supplies them to defense forces as well as civil air and sea traffic authorities worldwide. The company plays a key role as Systems Integrator both for its parent company, Finmeccanica, and in the international arena. With over 3,000 dedicated personnel, mainly employed in the design and development of high technology, SELEX systems are in service in over 100 countries. The company has been a key supplier to NATO for over 30 years.Business Challenge: SELEX uses a central SAP administration system to submit information to the top management of parent company Finmeccanica. Previously, the company used manual processes to synchronize the SAP system with its Primavera Enterprise plant production software, which is software used to manage the production of goods. Gathering, inserting and assessing the data manually was time consuming and error prone, so SELEX sought to implement an automated solution that would speed the integration process and avoid the potential for human error.Our Solution: SELEX considered different vendors and options, evaluating functionality, transactions per second and strategic future visions. Though the defense technology business sought a point-to-point solution, IBM endorsed a service-oriented architecture (SOA) that would enable the company to develop and modify integration applications to meet its future needs. Ultimately, SELEX implemented IBM WebSphere products and services because the company was impressed with their functionality and with IBM's forward-looking vision.IBM WebSphere Lab Services modeled the processes for the client using IBM WebSphere Business Modeler version 6. With the concept developed, lab services specialists used IBM WebSphere Integration Developer version 6 to create the solution, including integration flows, mapped data and mediation flows. To create the integrated solution, the IBM team deployed IBM WebSphere Business Integration Adapter for mySAP version 6 to integrate with the SAP system and developed custom-coded software to integrate with the Primavera application. The newly developed solution runs on an IBM WebSphere Process Server version 6 platform. The integrated solution, called SDGA, enables individual SELEX plants to update the parent company's central system and the central system to send data directly to each SELEX plant. The solution was deployed in four short months. The project began in February 2006 and SELEX went live with the solution in July 2006.Value to SELEX: By achieving systems integration using WebSphere Integration Developer and WebSphere Business Integration Adapter for mySAP, SELEX now enjoys automatic updates between systems, eliminating the need for human intervention and thereby significantly reducing errors. Employee productivity will also increase with the new system since the automation makes data available almost real-time. As a SOA foundation, the WebSphere Process Server platform offered better functionality than its competitors, allowed SELEX to customize their environment and positions them to meet future needs for integration with additional systems and applications.SELEX also values the IBM team for its in-depth knowledge and professionalism: -- the team produced a successful solution that allowed the client to go live in just four short months.Value to IBM: Due to the success of the SDGA project, there are now significant opportunities for follow-on business with this client. IBM and SELEX are currently in pre-contract negotiations for the second phase of the project called SDGA2. SDGA2 is an extension of the first project and will include a number of significant additions such as SOA governance, modeling, monitoring and high performance.Additionally, due in large part to the efforts of the WebSphere Services Sales team, Alenia Aeronautica, a sister company to SELEX, was encouraged by the success of the SELEX project and has now accelerated the exploration of IBM Business Integration Software. Similarly, MBDA, another sister company, is also looking at IBM's success at SELEX and considering a future partnership with IBM. In short, the initial project, which originally drove150K Euro in revenue, is playing a significant role in building confidence and fostering other opportunities.Rapid Solution Deployment - 4 Months from Concept to ImplementationReduced potential human error with process-controlled automation
16 Business Activity Monitoring ScorecardsKey Performance Indicators for business unitsCollaborationWork with teams to resolve situationsBusiness AlertsNotification of situations that require responseReports & AnalysesUnderstanding trends by combining real-time performance and historical informationWebSphere Business Monitor provides users with the capability to monitor and optimize their business processes in real time. Through very visual dashboards, they can receive immediate notification based upon triggers and alerts they’ve set, and take appropriate actions. Detailed reports are provided for more in-dept analysis. And from the Key Performance Indicators and metrics that have been defined in the WebSphere Business Modeler, customers can pro-actively monitor those critical aspects of their enterprise wide processes.External InformationInformation affecting performanceWebSphere Business Monitor
17 Business Activity Monitoring Expanded BAMBusiness Activity MonitoringMonitoring Third Party SystemsProviding adapters and support for pulling information from a variety of sources.Industry DashboardsTemplates for industry verticals including key methodologiesPredefined, full configurable dashboard templatesHuman Task Mgmt.Extended business activity monitoring to monitor other 3rd party systems.Access to more sources of information to use for calculating Key Performance Indicators and MetricsSample code built on top of existing WBI Adapters that provide patterns for integrating into databases and packaged applications such as SAPIndustry dashboardsAccess to actionable information that is delivered in industry specific dashbaordsFaster time to value to provide dashboards to the line of businessBusiness activity monitoring for human tasksManage performance and workload of people participating in business activities with pre-defined dashboardsFaster time to value for providing human task management to the line of business usersBPM Dashboards for human task monitoring and managementMonitor human tasks in processBPM Dashboards will provide an optimized experience for those roles responsible for managing the people side of process.
18 NYS Dept of Taxation and Finance Business Challenge: NY State Dept of Taxation and Finance (NYS DTF) processes 11 million personal and 2 million corporate returns annually using aging technology that can’t keep up with the demands of citizens and users. NYS DTF needs systems and tools that are flexible, permit faster change and reduce overall costs.Solution: Leveraging SOA and BPM, NYS DTF is rapidly transforming their systems, data, people, and business processes to be more functional, flexible and responsive to citizens, users and legislation. Traditional mainframe batch processing is shifting to transactional. Manual processes are transforming to automated business processes. Real-time business activity monitoring is replacing daily printed run reports.Results: Rapid modernization of legacy batch systems to transactional. More channels to enhance voluntary compliance. Web services and XML linkage to IRS for corporate taxes. High component reuse, lowered costs. Reduced errors and business exceptions. Higher value business metrics.Implementation Details: WebSphere Business Modeler, Business Monitor, Process Server, Integration Developer, Application Server, Flat File Adapter, Commerce, DB2 V9 pureXML, DataStage, Workplace Forms, CICS Transaction Gateway, Rational Suite, Tivoli Composite Application Monitor.Main Point: This is an excellent example of a best in class, industry leader utilizing IBM’s WebSphere portfolio to deliver high volume BAM and BPM functionality.Note: Brian Digman, CIO of NY State Tax and Finance, will speak to anlaysts in a 1:many meeting.Customer background:The New York State Department of Taxation and Finance (NYSDTF) is the revenue-generating arm of the New York state government and manages all of the state's taxation processes. Its responsibilities include managing the state's personal income tax, corporate tax, and sales and use taxes. The agency aims to provide a fair system of tax administration, to be accessible and responsive to taxpayers, and to contribute to a favorable economic climate.Summary:NYSDTF was looking for a way to accelerate the processing of tax returns while reducing the risk of losing paper files. The department had been using a rather cumbersome method of receiving and processing large batch files from banks and other customers in the financial industry. The files would be received by NYSDTF and kept in storage until they were scanned into the system and manually integrated with an e-MPIRE tax-processing application. Not only was this process time-consuming, but often the batch files didn't translate correctly into the system, resulting in data errors on tax returns. Furthermore, the files had the potential to be lost while in storage.To remedy the issue, NYSDTF contracted IBM to deliver a new solution that automates many of the tax process tasks, while enabling the client to efficiently process batch files. To maximize the benefit of the new solution, NYSDTF further engaged IBM to provide skills transfer to its core team of systems engineers and developers. The client started by implementing a robust suite of WebSphere process integration tools, including IBM WebSphere Business Modeler V6, IBM WebSphere Integration Developer V6 and IBM WebSphere Process Server V6 software.By using powerful IBM WebSphere software to automate its tax-processing workflow and streamline the way it handles large batch files, NYSDTF can now process tax returns in a timelier manner. Furthermore, now that batch files are being sent electronically, the risk of losing the files in storage has been substantially reduced.Business needNYSDTF was looking for a way to accelerate the processing of tax returns while reducing the risk of losing paper files. The department had been using a rather cumbersome method of receiving and processing large batch files from banks and other customers in the financial industry. The files would be received by NYSDTF and kept in storage until they were scanned into the system and manually integrated with an e-MPIRE tax-processing application. Not only was this process time-consuming, but often the batch files didn't translate correctly into the system, resulting in data errors on tax returns. Furthermore, the files had the potential to be lost while in storage. Recognizing the serious nature of this issue, NYSDTF set about the task of transforming the way it received and processed batch files. But like many government agencies, NYSDTF had difficulty changing its internal functions because of budget, time and resource constraints.Back to topSolution implementationTo remedy the issue, NYSDTF contracted IBM to deliver a new solution that enables the client to efficiently process batch files. To maximize the benefit of the new solution, NYSDTF further engaged IBM to provide skills transfer to its core team of systems engineers and developers. The client started by implementing a robust suite of WebSphere process integration tools, including IBM WebSphere Business Modeler V6, IBM WebSphere Integration Developer V6 and IBM WebSphere Process Server V6 software. Thus properly equipped to achieve tight process integration, the client leveraged the expertise of IBM WebSphere Software Services to teach two classes at its headquarters in Albany. The first course - WebSphere Business Modeler for Business Practice Management - provided the client with a comprehensive understanding of how its previous business processes worked and how they could be streamlined and improved upon. The client learned how to gather requirements, set goals, create and analyze reports, and update business process models. In addition, the class taught NYSDTF staff how to best use the WebSphere Business Modeler software for performance modeling and Web publishing purposes. In the second course - Integration Using WebSphere Integration Developer and WebSphere Process Server - the client learned how to use the WebSphere Integration Developer platform to integrate various business applications and technologies for optimal processing efficiency. Specifically, NYSDTF used the training to integrate its e-MPIRE application with the WebSphere Process Server application and a J2EE Connector Architecture (JCA) adapter, which will receive the large batch files. Under the new process, banks and the client's external load-processing vendor send large batch files electronically. When the JCA adapter receives the files, it breaks them down into smaller, more manageable data "chunks." These chunks are then passed on to the WebSphere Process Server software, which maps the input of the files into special fields and seamlessly delivers the data to the e-MPIRE application for processing. Back to topBenefit of the solutionBy using powerful IBM WebSphere software to automate its tax-processing workflow and streamline the way it handles large batch files, NYSDTF can now process tax returns in a timelier manner. The seamless, tight integration facilitated by the WebSphere Integration Developer software helps to promote error-free data transfer between the WebSphere Process Server platform and the client's e-MPIRE application. Furthermore, now that batch files are being sent electronically, the risk of losing the files in storage has been substantially reduced. NYSDTF credits a large portion of this project's success to the efficient, insightful onsite courses taught by IBM WebSphere Software Services. As a result of its training, the client's core group of systems engineers and developers was easily able to foster the integration needed to promote quick, efficient processing of batch files.Solutions/OfferingsSoftware:WebSphere: WebSphere Process Server, WebSphere Business Modeler, WebSphere Integration Developer, WebSphere Business Monitor WebSphere Software Services: WTTE - WebSphere Training and Technical Enablement
19 Process Choreography and Automation Transform your business from this…Runtime for end-to-end SOA-based process automationFlexible, reliable, scaleable, secureIntegrated ESB for Range and ReachSeamless access to all available servicesRobust Human and System-centric BPM Capabilities:Human to Human; Human to System; System to System…to thisWebSphere Process Server is the single unified Process engine for all your process needs. It provides an integrated runtime for all SOA-based process automation. It is built upon and leverages the capabilities and common services of the world class WebSphere Application Server, providing tried and tested reliability, scalability and security. Many of our competitors expect you to redesigning your solution as your business grows. With IBM WebSphere you get all this out of the box.As well as being built on WAS, WebSphere Process Server contains a fully integrated ESB. This provides seamless access to all your services so that they can be choreographed into the higher level process.SOA is really about enabling all your assets to be turned into reusable services - both technology AND HUMAN assets. Process Server leverages SOA principles and uses BPEL to choreograph the flow of services, applying business rules at each point in the process. People are your key asset, representing the “corporate knowledge” in terms of skills and expertise. WebSphere Process Server captures this knowledge and expertise and can manage simple and very complex human tasks whether they are human to human interactions or human to system. Human tasks can be fed to individual people, groups of people, substitutes and back up workers. It can also be used to reflect organisational changes and policies, enable escalations and much more.Of course being able to leverage all these capabilities requires a very flexible tool. WebSphere Integration Developer is the common tool for building SOA-based integration solutions across WebSphere Process Server, WebSphere ESB and Adapters. Users can construct process and integration solutions using drag and drop technology without having a working knowledge of Java and can rapidly generate business user interfaces at any point in the process using simplified wizards. It simplifies integration with rich features that accelerate the adoption of SOA by rendering existing IT assets as service components, encouraging reuse and efficiency. WebSphere Integration Developer ships with built-in , FTP, Flat File, and JDBC adapters for development and production use. It also bundles packaged application adapters (SAP, PeopleSoft, Oracle E-business, JD Edwards) for development use.Governance underpins SOA and BPM implementations. WebSphere Service Registry and Repository integration with WebSphere Process Server provides true end-to-end governance for all services, dynamically discovering and invoking services and service metadata information at runtime. This allows real-time process behavior adaptation.Last of all, if WebSphere Process Server is the engine at the heart of your business process management and process automation solutions then z/OS is the ultimate platform to run your mission critical processes on, providing the highest levels of availability and 24x7 business continuity. WPS, WESB, WID v for z/OS Gad March 2007.BPM for the Mainframe
20 BPM for the MainframeProcess AutomationHigh powered process engine on a high powered platformNew business user client generation in WebSphere Integration Developer for processes deployed on z/OSNew Adapters for z/OS: , JDBC, FTP, Flat File, SAPBPM and SOA governance on the Mainframe through WebSphere Service Registry and RepositoryIBM Content Manager with Process Server added content-centric capabilities
21 Rules and Pre-built Frameworks Industry FrameworksService-Oriented Business Solutions FrameworksBased on Industry StandardsCombination of IBM and Business Partner AssetsRules and Pre-built FrameworksIndustry Content PacksBusiness Service Templates to accelerate deploymentsExpanded industry coverage for Banking and TelecommunicationsWebSphere Business Services FabricNational Language SupportAlignment with IBM SOA FoundationAdditional Standard Operation Environments
22 Content Centric Processing Imaging/CaptureDoc MgmtWeb Content Mgt.ComplianceRecords Mgt.Mgt.DiscoveryProcessDev FrameworkDoc RoutingWorkflowMain Point: The IBM FileNet P8 BPM product rounds out our BPM portfolio by providing strong content centric processing capabilities. The IBM FileNet product has strong linkage between the process and content – combining enterprise content management (ECM) with process design and execution. This combination is especially effective in areas such as compliance where advanced eForm capabilities allow the system to capture, record, and maintain content related to the process.
23 WebSphere & FileNet Roadmap BPM Enhancements InnovationInvestment ProtectionIntegrationCommon Service Registry and RepositoryCommon Modeling, Monitoring ToolEnhanced run-time integrationMain Point: To expand and grow capabilities across the full spectrum of BPM opportunities, IBM is continuing to invest in enhancements in the integration of content-centric BPM offered through IBM FileNet with the broader set of BPM offerings. Key highlights include:Phase 1 Interoperability Run time WebSphere v6.02Run Time: Strengthening of the interoperability between the run-times. Certainly, when we look at customers today, there are many BPM engagements that require the combined capabilities of FileNet and WebSphere. Addressing a full-spectrum of process improvement challenges requires the ability to manage content, integrate applications, deliver end-to-end process orchestration and choreography, and do so in an enterprise, value-chain ecosystem environment. Only IBM can offer the full set of capabilities to address the most sophisticated and robust BPM requirementsPhase 2 Integration Design Time, Monitoring, RuntimeDesign Time: News here is that Modeler will be able to export XPDL to be consumed by FileNet Process Designer.-Design Time Integration between FileNet P8 Process Designer v4.0 and WebSphere Business Modeler v6.02 Support PackMonitoring: CBEs (Common Base Event, format) emitted from FileNet Business Process Manager (run-time) will allow WebSphere Business Monitor ability to manage events and monitor performance-Monitoring of both Process Engines by WebSphere Business Monitor v6.02 Support PackWSRR: This supports IBMs BPM enabled by SOA story…giving FileNet greater SOA capabilities and furthering the governance advantages, as well.-Common Service Registry and Repository: FileNet P8 BPM v4.0 interface to WebSphere Service Registry & Repository v6.02Bottom Line: Progress is being made to tighten linkage and, where the business demands, prioritize offerings across the portfolioPhase 3 Innovation—Investment protectionBusiness Process PlatformWebSphere + FileNet P8Facilitate easier upgradepreserve current investmentsisolate customers from changes to run time environmentStrategic Direction:Continued investment in WebSphere and FileNet P8 BPM portfolio to address the entire spectrum of customers’ BPM requirementsIncreased focus on industry expertise that matters – BPM practitioners, best practices, methodology and frameworksWebSphere Business Modeler: Will be the common modeling and simulation tool for combined deploymentsWebSphere Business Monitor: Will be the common BAM tool for combined deploymentsWebSphere Service Registry and Repository: Will be Common Services Registry & Repository across the BPM portfolioInteroperabilityWebSphere & FileNet Processes can invoke each otherQ4 20063Q 20072008
24 BPM Enabled by SOA Services Enhanced BPM capabilities and services to address any point in the SOA journeyIntegrated business solutions to accelerate deployment of new business processesDeep industry expertiseConsulting methods, tools and reference materialsBPMExpertiseBPM MethodologyComprehensive “How-To” reference guide with servicesCovers both the business and IT sides of BPMSix Sigma, Lean, and other methodologies in combination with BPM softwareSupports Organizational and Operational GovernanceIBM BPM Enabled by SOA Services Offerings –It’s not about “services” …it’s about “expertise”. Expertise does not simply mean “systems integrators” or “consultants”. For BPM, expertise means “best practices packaged and delivered to provide value in the form of “frameworks”, ”templates”, “pre-built industry models”, and “assessments”. Expertise = assets and services to accelerate delivery of BPM.Complementing the BPM software enhancements are announcements supporting in-depth, industry expertise in the form of a new BPM Enabled by SOA offering and an enhanced BPM Methodology.I. The BPM Enabled by SOA services engagementThe BPM Enabled by SOA Service Engagement offering addresses any point in the BPM journey. The services engagement integrates business solutions to accelerate deployment of new business processes, leveraging deep industry expertise, benchmarking best practices, methods, tools, and reference materials.This new offering is designed to help you in modeling your existing processes to isolate needed improvements, simulate new and modified processes to better understand how your business will operate in the future. Determine how your future processes can make the best use of an SOA for greater flexibility and improved performance. Define the performance measurements so you can accurately gauge your efficiency and tune your processes accordingly. Establish a governance strategy that will help you regulate business process change in a systematic way.GBS is enabling over 1000 practitioners on this offeringII. BPM MethodologyAdditionally, an IBM developed BPM Methodology has been enhanced and expanded. The Methodology provides Line of Business Leaders with a roadmap of execution points necessary for successful BPM initiatives. Business perspectives connect overall business strategy with required process capabilities and addresses the organization and governance needed to deliver process performance. IBM has expanded the number of practitioners trained on the methodology and broadened the linkage of traditional BPM methods with the latest in SOA-enabled BPM software.Provides a framework that allows you to understand, define, execute and automate your business processesFurthermore, Documented method for implementing BPM from both a business and technical perspectiveProvides a reference guide to BPM methods and accelerates BPM projectsHelps identifying necessary tools and technologies needed in various phases in order to efficiently and effectively manage and governance business processesValue PointsCollective wisdom from hundreds of software and business consulting engagements, incorporating answers to our clients most often asked question: "How do I do it right"Provides an navigable roadmap, including key concepts including: strategy, process management, organizational change, governance, and a services architectureDeveloped to be executed as a partnership between client's management and project teams and IBM's services.Founded on Deming's "Plan, Do, Check, Act" - simple and executableScalable and Flexible - Components can be executed by small businesses or large enterprises, on projects ranging from small process improvement engagements to enterprise re-engineering incorporating BPM and SOA.NumbersWW Consultancy has adopted across IBM's service delivery lines (250 Software Services GBS practitioners to date)ExamplesAutomotive (Global Brand)Modeled entire automotive supply chain: 8 months, 400+ processes,Improved logistics operations- from 4000 vehicles/5-7 days to 4000 vehicles/3 days, while reducing land requirementsStreamlined defective part returnsDeveloped COE to drive organizational and process streamliningEach project was separate and unique, yet was formed on a universally applied discipline. As a result, the team was able to recognize how the core process fit together. The results provided real value to the whole business.Global Banking institutionMethodology applied to drive out inefficiency and reworkConsolidated disparate processes across multiple regions (the result of numerous acquisitions) to improve customer service and drive down costsProvided a single view of operations, giving greater visibility to operational management for further improvement
25 Summary of BPM Announcements ExpertiseEnhanced BPM MethodologyGBS Offering: “BPM Enabled by SOA”Standards Based Process ModelsAcademic InitiativeWebSphere / FileNet BPM RoadmapFileNet P8 4.0Expanded BAMNew Industry DashboardsIndustry Content Packs, Industry Frameworks,WebSphere Bus Services FabricMain Point: As you can see, we are heavily investing in all aspects of BPM enabled by SOA across the IBM company in both software and services. We are committed to this market and committed to provide continuing value to our customers.BPM on Mainframe
26 IBM Expands BPM Value Proposition IBM BPM Enabled by SOAWebSphere BPMFileNet BPMPeopleSystemsDocumentsContent FolderFormImages, …IBM a Leader! (Forrester IC-BPMS 4Q 2006)IBM a Leader! (Forrester HC-BPM for Insurance 3Q 2006)IBM a Leader! (Forrester ECM Wave 2006 – Document Centric BPMS Wave Pending Q2 2007)Main Point: IBM now is the only vendor that can provide end-to-end BPM capabilities from modeling, through execution and management across the entire spectrum of BPM opportunities. FileNet gives IBM a critical piece to the puzzle.Initial BPM efforts were focused on integration of processes across different applicationsIBM extended capabilities to address broader enterprise BPM requirements enabled by SOA, including modeling and simulation, business activity monitoring and human interactionThe addition of FileNet BPM to the IBM portfolio provides support for processes requiring integration of content and formsIBM is now the clear market leader in BPM with the most comprehensive set of software capabilities and business expertise
27 IBM has a complete BPMS“IBM is the first and so far the only infrastructure software supplier to offer a complete BPMS supporting the end-to-end lifecycle from analytical modeling to performance management and optimization – based entirely on service oriented architecture.”Bruce Silver, Bruce Silver Associates – The 2006 BPMS ReportMain Point:
28 IBM Leads in BPM Enabled by SOA Business Expertise:BPM Enabled by SOA Readiness Assessment (www.ibm.com/SOA)1000+ consultants trained in BPM Methodology and BPM Enabled by SOA Engagement20 BPM Training and Education classes availableTechnical LeadershipBreadth of Offerings from Tooling to Runtime; From Dashboards to BAM; Modeling, Simulation, Choreography, Frameworks, and ECMAll supported by SOAMarket Recognition:Leader in Gartner BPA MQLeader in Forrester Integration, Human, and Content centric BPM WAVESVibrant Ecosystem300+ BPM Business Partners4000+ pre-builts assets in the SOA Business Catalog
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