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IBM Smarter Process BPM, ODM and Mobile - Overview and Demonstration Sr. Consulting BPM Solution Architect Open Group Master Certified SW IT Specialist for more information and resources
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Agenda BPM Overview BPM in Action Demonstration: Questions and Answers
Where BPM fits – Human-to-Human and Human-to-System BPM Capabilities – Design, End-user Experience, Analysis Business-friendly & I/T savvy – Simplicity with Sophistication Rapid, Agile and Iterative Lifecycle BPM in Action Demonstration: Process Designer – Model, Build, and Run using Agile “Playback” approach Process Optimizer – Heat Maps, path analysis and end-2-end metrics Process Portal & Mobile – Turnkey End User Experience Easy to use Inbox for Task Management Social features for collaboration BAM Dashboards for monitoring in-flight work Custom Reporting for visibility and insight Mobile enabled for any device Questions and Answers
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Why shouldn’t opening a new account or filing an insurance claim be as easy as buying a book online?
“An estimated $5 billion is up for grabs for the insurer who figures out how to make insurance as simple as ordering a value meal from a local fast food joint.” ~ US Consumers Willing to Pay Five Percent More For Their Insurance 3
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What does it mean to be easy to do business with?
“Amazon, Apple and Netflix provide the customer satisfaction benchmarks to which [other business] must aspire” ~ Where is the ROI on Customer Experience? Systems & Technology Journal, 2012 Insurance: Can I report an accident on my mobile device and automatically trigger a tow truck and taxi? Banking: Can I instantly add a family member to my credit card account? Is it easy for your customers to do business with you? What are your customers asking you? What are your competitors doing? What are your Business Executives asking? How can I ensure social services checks are paid faster and more accurately? How can I speed up immigration formalities at the border with increased security? Healthcare: Can I shorten hospital stays by one or two days without compromising treatment quality? Government: Can I speed up passport control at the border for pre-certified frequent travelers?
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“Retention is the new holy grail”
Your customers are no longer your customers Homeowners in the range changed insurance carriers 2.5x more often than those 51 and older ~ The Voice of the Personal Lines Consumer Deloitte Research, 2012 ~ Global Consumer Banking Survey 2012, Ernst & Young “The proportion of customers planning to change banks has grown by 70% since 2011” “Retention is the new holy grail” ~ Beyond Price: The Rise of Customer-Centric Marketing in Insurance, McKinsey & Company, 2012 5
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Effective business operations create superior customer experiences
Process today plays a critical role in driving customer experience initiatives…from companies looking to overhaul customer service processes to companies seeking to deliver more compelling experiences that incorporate big data analytics and real-time guidance. The Forrester Wave: BPM Suites, Clay Richardson & Derek Miers, 2013 Customer experience is the #1 factor in both customer retention and acquisition: “Customer-Centricity…”, Boston Consulting Group, 2012. Smarter Process today plays a critical role in driving customer experience initiatives These initiatives range from companies looking to overhaul customer service processes to companies seeking to deliver more compelling experiences that incorporate big data analytics and real-time guidance. 6
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Process efficiency alone is no longer sufficient to ensure success
Process has been around for more than 100 years, perhaps even longer, since the seminal idea about division of labor sustained the growth of the industrial revolution. Around the year 1900, Frederick Taylor introduced process standardization to increase economic efficiency and labor productivity, bringing greater managerial control over production. During the same period, Henry Ford’s assembly line ushered in a new era of mass production to manufacture the Model-T, the first affordable automobile for the middle class. These early pioneering steps in process yielded business outcomes, but the outcomes plateaued out over time. During the 1980s, leaders saw a renewed push to apply rigorous scientific analysis to process. The primary goal was the focus on cutting costs by reducing variability, identifying and removing bottlenecks, and eliminating any unneeded steps to create cost-effective processes. The Six Sigma set of tools and strategies for process improvement brought in a rigorous standard for minimizing defects to deliver total quality management. Michael Hammer introduced Process Reengineering in the mid-1990s to eliminate forms of work that do not add value, rather than to automate existing inefficient processes. Process Reengineering became associated with major cost cutting, increased managerial oversight and reductions in the workforce. With the emphasis on cost reduction, this most recent wave of process-as-a-science has hit upon diminishing returns. Today, the world stands at a turning point, where everything companies do will be challenged again.
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Customer-centric business operations drive top line growth
A nexus of forces—mobile, social, cloud and big data—fundamentally change what customers expect from companies, and not just consumer products and retail companies. Leaders in the complex, information-rich service industries such as banking, insurance and healthcare will find their businesses disrupted. This new world will be one that is completely customer-centric, and one in which the need to pursue top line growth will be relentless.
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IBM’s approach for reinventing business operations
- to enable greater customer-centricity - in the age of mobile, social, cloud and big data - while driving efficiency and optimization into end-to-end processes Smarter Process is IBM’s approach to reinvent business operations. Reinvention is need to be more customer-centric and to grow the top line and in the age of mobile, social, cloud and big data, customers have more information in-context. Your business operations need to add to this information that customers have, in an instant, seamless and insightful way. None of this is possible if processes are efficient and optimized and build to deliver complete end-to-end outcomes. 9
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Improve business efficiency & innovation with Smarter Process
Typical process problems BPM brings order to the chaos Account Administration Executive Mgmt Billing Risk Management Teams Invoice Reconciliation Teams ERP Customer Service Account Admin Imaging Rules Finance & Ops Executive Management CRM Rules Rules Customer Service Finance and Ops Inefficient working environment Incomplete or inaccurate data flow Inconsistent prioritization Lack of control over the process Poor visibility into process performance Automate workflow & decision making Reduce errors and improve consistency Leverage existing systems and data Streamline processes and initiate actions Real-time visibility and process control 10 10
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Process Orchestration Decision Mgmt (Rules & Events)
Smarter Process in Action BAM Dashboards Process Orchestration Social Collab Decision Mgmt (Rules & Events) Mobile 11
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Business Process Management Fundamentals
BPM Defined: An integrated approach to aligning the key activities of an organization into processes that you can consistently measure to optimize value to your organization and its end customers. Main Point: BPM helps organizations of all sizes and in all industries achieve their business goals by addressing the processes that drive their business. As companies look to transform and grow, they are turning to BPM as the engine for growth. Process improvement yields significant business value, and combining BPM with decision management provides the full spectrum of capabilities to achieve process optimization. Organizations looking to adopt BPM typically struggle with one or more of the following pain points: Poor visibility into business processes and how work is actually done Employees spend too much time managing exceptions and doing rework Sub-optimal productivity due to ad-hoc processes or inconsistent prioritization Work environment spans multiple systems that are disparate and siloed Can not react quickly to changing market, consumer, or regulatory demands 12 12
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Typical Business Process Challenges & Results Optimize Human-to-Human and Human-to-System workflows
Poor visibility into business processes Significant amount of rework due to exceptions Lost productivity due to unstructured tasks or inconsistent prioritization Inefficient work environment spanning multiple systems Inability to change processes as frequently as business demands Organizations had > 90% success rates on BPM projects. 67% of projects were completed in < 6 months, 50% in < 4 months. 77% of projects had returns greater than $100,000 per project. BPM projects had 10% or more Internal Rate of Return (78% had >15% IRR, some as high as 360%) 80% of the respondents felt an increase in competitive advantage. BPM’s value to the company was higher than ERP, CRM and SCM. (Source: “Justifying BPM Projects”, Gartner) Main Point: BPM helps organizations of all sizes and in all industries achieve their business goals by addressing the processes that drive their business. As companies look to transform and grow, they are turning to BPM as the engine for growth. Process improvement yields significant business value, and combining BPM with decision management provides the full spectrum of capabilities to achieve process optimization. Organizations looking to adopt BPM typically struggle with one or more of the following pain points: Poor visibility into business processes and how work is actually done Employees spend too much time managing exceptions and doing rework Sub-optimal productivity due to ad-hoc processes or inconsistent prioritization Work environment spans multiple systems that are disparate and siloed Can not react quickly to changing market, consumer, or regulatory demands 13 13
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Process Improvement requires a “Third Way”
Process-improvement requirements are likely to be unique, which favors build rather than buy. And, the timeframes and costs of both are often not compatible with process improvement. So, a ‘third way’ is required. IBM BPM is a “Best of Both Worlds” approach. Rapid ~ Agile ~ Iterative Roll out a custom Process Application in less time & lower cost than buying and customizing a packaged application. Build BPM “Third Way” Flexibility + - Customized Unique High TCO IT bandwidth Reduced time Initial Cost Standard Feature set Reliance on vendor Response to Change + - Buy Lower cost/time Why BPM 14
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Typical Process Problems – Business Chaos
Customer Service Finance and Ops Account Administration Unstructured Tasks (Phone, paper, attachments, etc.) Inefficient Working Environment Spans Systems Inconsistent Prioritization Incomplete or Inaccurate Data Flow Between Systems & People Lack of Control Over Process Flow and Business Events/Exceptions Poor Visibility Into Process Performance 1 2 3 4 5 6 6 Executive Management 1 3 Invoice Reconciliation Teams 2 4 Main Point: A deeper look at typical process problems to highlight BPM’s value Speaker Notes: Here is a deeper look at the problems that cause process management problems. The key points here: Yes, you have systems. But they typically only solve part of the process. At the human level, the problem is that work is not well controlled Finally, there is no end to end visibility to the process – that spans humans and systems 5
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Typical Process Problems – Business Chaos
Customer Service Finance and Ops Account Administration Inefficient Ineffective Inaccurate Incomplete Inconsistent Inflexible Invisible 6 Executive Management 1 3 Invoice Reconciliation Teams 2 4 Main Point: A deeper look at typical process problems to highlight BPM’s value Speaker Notes: Here is a deeper look at the problems that cause process management problems. The key points here: Yes, you have systems. But they typically only solve part of the process. At the human level, the problem is that work is not well controlled Finally, there is no end to end visibility to the process – that spans humans and systems 5
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BPM Layer Process Rules Events
BPM Orchestrates Human to Human, Human to System & Inter-system Interactions …brings order to the chaos 1 Automate workflow & decision making Reduce errors and improve consistency Standardize resolution across geographies Leverage existing systems and data Monitor for business events and initiate actions Real-time visibility and process control Customer Benefits: Huge Reduction in Manual Work, Errors Faster, More Consistent Issue Resolution Metrics, measurements, visibility and business-friendly reports Rapid, Agile and Iterative process improvements Executive Management Customer Service Invoice Reconciliation Team Finance and Ops Account Administration 2 Process Rules Events BPM Layer 3 4 5 6 Main Point: A deeper look at typical process problems to highlight BPM’s value Speaker notes: So, a good way to think about BPM is that it is a layer that gives you the control and visibility over the processes. Key points: It sits between people and systems and manages the process across those participants Prioritizes your work, but also gives you visibility and control And when the process evolves and changes – you can quickly implement that change and that is immediately
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BPM Layer BPM Results: Visibility Agility Control Collaboration
BPM Orchestrates Human to Human, Human to System & Inter-system Interactions …brings order to the chaos Executive Management Customer Service Invoice Reconciliation Team Finance and Ops Account Administration BPM Results: Visibility Agility Control Collaboration Automation Integration Governance Optimization Process Rules Events BPM Layer Main Point: A deeper look at typical process problems to highlight BPM’s value Speaker notes: So, a good way to think about BPM is that it is a layer that gives you the control and visibility over the processes. Key points: It sits between people and systems and manages the process across those participants Prioritizes your work, but also gives you visibility and control And when the process evolves and changes – you can quickly implement that change and that is immediately
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The essential BPM capabilities
Modeling Monitoring Automation Governance Optimization Rules Business Data Documents Events Integration Collaboration Analytics Finance and Ops Customer Service Executive Management Account Administration Risk Management Teams
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BPM Roles-based Platform – Rapid, Agile and Iterative
Goto for Demos BPM Roles-based Platform – Rapid, Agile and Iterative Process Portal Process Portal Admin Console UI Screen Flow Coaches Worker Manager Administrator Dashboards BPM Developer Execute Collaborative platform Iterative, shortened development cycle What you model is what is executed! Shared process model (Always Runnable) Lower technical effort (less time, cost, risk) Simplicity with Sophistication (Business-friendly & IT-Savvy) Process Designer Process Inspector BPM Shared Model Process Center Design Optimize Process Templates BlueworksLive.com Process Designer Process Optimizer Business Analyst Process Modeler
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IBM Business Process Manager
Goto for Demos BlueworksLive & BPM IBM Business Process Manager Process Portal Process Optimizer Process Center Shared Model Process Designer Introduction to Lombardi and a brief demonstration of the key capabilities. Intro: Touch on 3 quick topics: You can use all different kinds of software to build applications and systems. Lombardi Edition is a purposed built platform to building not only process centric applications, but the right ones that solve burning business pains. A lot of applications or suites have reporting modules. Lombardi Edition was purposed built for process improvement (defining KPIs & SLAs during design, understanding at risk work items during execution, and visualizing bottlenecks for continuous improvement) Process apps are not one and done. They are typically 90-day deployments with iterations every 6-8 weeks. And with programs like Allianz you can realize business value early and change frequently thereafter. But, you have to have a scalable and repeatable platform to realize BPM success across an enterprise. Demo: In this demonstration we’ll touch on all three of the Lombardi edition environments. We’re going to start in the process designer and see how processes are modeled. Then we’re going to look at the execution environment and the business user’s interface for performing and managing work. We’ll finish the Lombardi Edition tour looking at the Optimizer environment to see how you can analyze performance data to identify areas for improvement. Then we’ll wrap up with a look at how Blueprint can be used to help define and document business processes. The simplest way to get started with BPM Process Discovery “Modeling for Documentation” The quickest way to deliver robust process applications Process Implementation “Modeling for Execution”
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BPM in Action Rapid, Agile and Iterative
Goto for Demos BlueworksLive & BPM BPM in Action Rapid, Agile and Iterative Worker Process Portal Process Coach UIs 4 Execute and Monitor Manager 1 Process Discovery, Modeling & Analysis Process Center Shared Model Optimize Design Execute Business Analyst 5 Analyze and Improve Process Optimizer 2 Import Process Model Business Modeler Process Designer 3 Model for Execution XPDL
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IBM “BPM on Cloud” Demos
Goto for Demos IBM “BPM on Cloud” Demos 1) Invite New User 2) Accept Invite 5) Use Process Designer with BlueworksLive 3) Admin BPM Users & Groups Announcement: GA: April 29, 2013 Product Announcement Description (High Level) Follow on to the IBM BPM on Cloud announcement at Impact 2013 to expand on how to sell it based on different customer situations and needs. Dedicated BPM cloud environment that is for process application development, testing, and deployment Highly available process application deployment environment Managed by IBM with support 24 hours a day, every day of the week Product Capabilities Passport Advantage offering Monthly per User subscription, minimum # months Subscription based BPM environment BPM end User per Month pricing, minimum 50 users Includes designers seats, up to 5 authors BPM cloud environment that is secure and scalable Process Center development environment Stand-alone test server environment Highly available pilot/production server environment SMTP capability Includes BPM software + SmartCloud infrastructure + management services Full capabilities of IBM BPM (IBM BPM Advanced) IBM managed BPM environment and Cloud infrastructure Value Props Ease of design and deployment of process applications through an integrated design time experience. Governance through an integrated environment that scales smoothly from initial project to enterprise-wide program. Visibility through a business-led change design. Greater collaboration between business and IT through a unified, model-driven environment. A subscription-based consumption and delivery model Dedicated BPM cloud environment for process application development, testing, and deployment An IBM-managed cloud environment that is exclusively available on the IBM SmartCloud™ Competitive differentiation Competitive offering against Appian, Pega and Cordys Cloud offerings Additional Information 6) Process Designer Realtime Collab 4) Download Process Designer 7) The Art of the Possible… File Name Here.ppt
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BPM in Action BPM End2End DEMOS 1) BlueworksLive
Goto for Demos BPM in Action 1) BlueworksLive 2) Modeling Ease of Use 3) How It Executes 4) End-2-End Playback Main Point: A deeper look at typical process problems to highlight BPM’s value Speaker Notes: Here is a deeper look at the problems that cause process management problems. The key points here: Yes, you have systems. But they typically only solve part of the process. At the human level, the problem is that work is not well controlled Finally, there is no end to end visibility to the process – that spans humans and systems 5) Dashboards 6) Optimizer Heat Maps
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OnTheFly DEMO Smarter Process – Mobile + Process, Rules & Events
Goto for Demos Smarter Process – Mobile + Process, Rules & Events Introduction to Lombardi and a brief demonstration of the key capabilities. Intro: Touch on 3 quick topics: You can use all different kinds of software to build applications and systems. Lombardi Edition is a purposed built platform to building not only process centric applications, but the right ones that solve burning business pains. A lot of applications or suites have reporting modules. Lombardi Edition was purposed built for process improvement (defining KPIs & SLAs during design, understanding at risk work items during execution, and visualizing bottlenecks for continuous improvement) Process apps are not one and done. They are typically 90-day deployments with iterations every 6-8 weeks. And with programs like Allianz you can realize business value early and change frequently thereafter. But, you have to have a scalable and repeatable platform to realize BPM success across an enterprise. Demo: In this demonstration we’ll touch on all three of the Lombardi edition environments. We’re going to start in the process designer and see how processes are modeled. Then we’re going to look at the execution environment and the business user’s interface for performing and managing work. We’ll finish the Lombardi Edition tour looking at the Optimizer environment to see how you can analyze performance data to identify areas for improvement. Then we’ll wrap up with a look at how Blueprint can be used to help define and document business processes. SAP SAP SAP BWL1 BWL2 BWL >PD PPTour OF Dash OF OPT+ I C L Collab OF i P A D i P h o e S I G Responsiv M O F ART OTP BK P PD BFS NM BFS BFS Visibty VIP N S T PD Collab SnapDesign On Thy Fly BR1 BR2 BR3 ODM 1 Tour SAP SAP BWL Col PPSpanish Dash AO GOPT Collab AO Map iPho BPM85 E2E PD Tour BFS GEO Visibty ME ppdDIAGs Snap Deploy Incdnt Mgmt ODM Retail DM1 DM2 DM3 ODM 2
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IBM BPM Platform: Key Differentiators
Goto for Demos IBM BPM Platform: Key Differentiators 1. Process Blueprints Collaborate on Process Modeling 8. Proven Methodology Rapid, Agile, Iterative 2. In-Context Collaboration Real-time Multi-person Screen-sharing Rapid, Agile and Iterative 7. Process Optimizer Deep metrics and Visual Heat Maps 3. Intelligent Dashboards And Custom Reporting 6. Process Center Shares Process Model for Continuous Process Improvement Optimize Design Execute BPM Shared Model Process Center The key characteristics that must be enabled to achieve quick and reliable change by business users is Visibility, Collaboration and Governance. Leveraging Visibility, the organization can achieve a clearer line-of-site into the operational side of the business. This enables new insight and creates opportunities from a clearer understanding of operational conditions. Collaboration fosters cross-functional and cross-divisional synchronization across all operations. This enable the sharing and consolidation of business services, which results in operational cohesiveness. Governance aligns business operations with strategy within operational processes. This enables uniform interpretation of corporate and business unit policy in in every operational situation. Simplicity is a common theme that goes across VCG. Without simplicity, business users will not effectively be able to manage change. 4. Process Playbacks It’s ALWAYS Instantly Runnable! 5. Snapshots Seamless Versioning Design-time & Runtime 9. Mobile Ready 10. Cloud Enabled
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IBM BPM+ODM: Key Capability Areas (a.k.a. Differentiators)
Goto for Demos IBM BPM+ODM: Key Capability Areas (a.k.a. Differentiators) 1. Process/Decision Discovery 2. Social Collaboration 9. Loosely Coupled, Tightly Integrated: BPM + ODM + Mobile BPM Project to Program 3. Social Intelligent Dashboards 8. Proven Methodology: Rapid, Agile, Iterative Main Point: BPM/ODM provides a way for business and IT to collaborate and continuously optimize business processes across the process lifecycle. Speaker notes: BPM is a discipline consisting of software and expertise to improve the performance, visibility, and agility of business processes by enabling customers to discover, model, execute, rapidly change, govern, and gain end-to-end visibility on their business processes. The Key to remember is that “BPM” has to be more than just software… whether it’s your expertise, that of an industry partner working with you, that of integrators and consultants such as IBM Global Services – most likely a combination of more than one of these – successful business outcomes come only with the involvement of the business expertise with IT expertise. At its heart, business process management is about continuously optimizing business processes. This continuous optimization means working to improve business processes throughout the process lifecycle. The process lifecycle spans three steps: Documentation and Compliance where business process improvements are documented, and tested prior to Deployment & Execution where new or improved processes are deployed in an automated, repeatable fashion with flexibility for rapid change, and Analysis & Optimization where deployed processes are closely monitored and measured in real-time to enable rapid response to emerging business situations as well as identify new process improvement opportunities. Underpinning this cycle of continuous process improvement is the need for robust Governance to ensure that business processes are operating consistently and are complying with internal policies as well as external regulations and controls. Processes are also most effective and efficient when they are enabled with broad reuse of service-enabled IT assets. Optimizing end-to-end business processes across the lifecycle requires participation and collaboration between business and IT. Business and IT leaders must work together to develop the flexibility processes and underlying systems that allow the organization to embrace change and achieve a dynamic business network. Business process management provides the means and the tools to facilitate this collaboration, creating the visibility, engagement and efficiency expected from your solution. The key characteristics that must be enabled to achieve quick and reliable change by business users is Visibility, Collaboration and Governance. Leveraging Visibility, the organization can achieve a clearer line-of-site into the operational side of the business. This enables new insight and creates opportunities from a clearer understanding of operational conditions. Collaboration fosters cross-functional and cross-divisional synchronization across all operations. This enable the sharing and consolidation of business services, which results in operational cohesiveness. Governance aligns business operations with strategy within operational processes. This enables uniform interpretation of corporate and business unit policy in in every operational situation. Simplicity is a common theme that goes across VCG. Without simplicity, business users will not effectively be able to manage change. 7. BPM/ODM for Private/Public Clouds 6. Mobility 5. Visibility/Optimization 4. Process/Decision Centers Private Clouds Shared Model Optimize Design Execute
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Links to Your Next Steps… Including Education and Enablement Services
BPM Process Discovery & Modeling in the Cloud Process modeling and analysis Social collaboration Easy enough for novices and rich enough for experts Demos & Cloud Test-drive BPM Process Modeling & Implementation Rapid process application development Continuous process improvement BPM program management Education, Enablement and on-demand Services Quick Win Pilots Role-based education & mentoring Expert Services when and where they’re needed Confidential 28
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