1. BPM 101 IBM Smarter Process BPM - Business Process Manager (Process)
ODM – Operational Decision Manager (Rules & Events)
Vignette:
Instant: What if you new who your customers were when the walked into the store?
Seamless: What if you could

2. BPM Topics
What is BPM?
Typical Business Value
Key Capabilities

3. Have You Ever Experienced This?
Oops, I didn’t know that this customer just became a Premium Client
I love helping our customers, but I can’t take too much time or I’ll never get my other work done.
Why did we touch that request 20 different times?
I really wanted to help out, but I couldn’t find the information they kept asking for!
This guy just kept on calling, wondering why he had not received an answer yet!
I had to spend so much time updating systems and status information – I barely got anything done today!
This is the first part of the introductory slides. Ask audience who has experienced these kinds of issue (suggested to do it issue by issue as it is unveiled).
Key Points:
Illustrate the kinds of business issues that may lead a business organization to consider using BPM approaches and technologies.

4. BPM Can Help Realize Your Business Goals
Customer Focus
Service Culture
Cost Effective and Price Competitive
Enable Workers To Provide Optimal Customer Experience
Easier To Do Business With
Grow and Scale Efficiently
Second part of the introductory slides.
Key points:
BPM needs to be focused on realizing business goals.
BPM works best if driven by business objectives and business leaders

5. What is Business Process Management (BPM)?
Business Process Management is…
… a combination of technology and methodology that allows you to more quickly and clearly…
… identify and communicate what you do as an organization
… measure how well you’re doing it
… optimize and improve your processes
… to bring real business value to your organization.

6. 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 6 6

7. Typical Business Process Challenges & Results
Poor visibility into business processes
Significant amount of rework due to exceptions
Lost productivity due to unstructured tasks or inconsistent prioritization
Inefficient handling of work, spanning multiple systems
Inability to change processes as frequently as business demands
BPM’s value to the company was higher than ERP, CRM and SCM.
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.
(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 7 7

8. 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 8

9. Typical Process Problems – Business Chaos
Customer
Service
Account
Administration
Finance and Ops
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 6
Executive
Management 1 3
Invoice
Reconciliation
Teams 2 4 5
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

10. Typical Process Problems – Business Chaos
Customer
Service
Account
Administration
Finance and Ops
Inefficient
Ineffective
Inaccurate
Incomplete
Inconsistent
Inflexible
Invisible 6
Executive
Management 1 3
Invoice
Reconciliation
Teams 2 4 5
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

11. BPM Layer Process Rules Events
BPM Orchestrates Human to Human, Human to System & Inter-system Interactions …brings order to the chaos
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
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
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

12. BPM Layer Process Rules Events BPM Results: Visibility Agility Control
BPM Orchestrates Human to Human, Human to System & Inter-system Interactions …brings order to the chaos
BPM Results:
Visibility
Agility
Control
Collaboration
Automation
Integration
Governance
Optimization
Executive
Management
Customer
Service
Invoice
Reconciliation
Team
Finance
and Ops
Account Administration
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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13. 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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14. BPM delivers business value as adoption progresses
Project
Program
Transformation
Efficiency
Effectiveness
Agility
Take time and cost out of the process
Work smarter to deliver higher revenue and profit
Outmaneuver competitors with rapid response to change
Reduced development time by 40%
Drives $3.6M in additional revenue and saves $2.7M by integrated sourcing processes with real-time inventory visibility
Line of Business Personnel Launch Campaigns in Two Days Instead of Months
Saved more than $100M with improved efficiencies and higher levels of customer service
Cut “engineering” time
of designers on car systems
by 20% in one year.
Speed to market gains of over 50%
Main Point: BPM delivers business value from Project to Program to Transformation. Organizations adopt BPM for variety of reasons, but no matter the reason, BPM delivers real business value as these company examples show.
Main Point: Organizations adopt BPM for a variety of different reasons, but no matter what the specific process challenge is, BPM delivers real business value. Organizations just starting out with an initial project typically benefit from greater efficiency. As business value is realized and the project is extended into a program, additional value is realized, usually in the form of effectiveness…..the ability to work smarter. Extending BPM across the enterprise for transformation yields additional business value in the form of agility.
Project
Victoria Worksafe deployed a first phase claims processing application to ensure timely workplace claims processing for their citizens. The project is estimated to have payback of 6 months and hundreds of millions in savings from improved fraud detection. Due to the success and cost savings of this initial project, Victoria Worksafe has plans to expand scope to program level.
Program
Mark’s Work Wearhouse a Canadian retail chain specializing in work clothes was struggling with product sourcing processes and a lack of visibility into inventory that were causing lost sales. Mark’s ultimately deployed a new automated process that integrated the sourcing processes with real-time inventory visibility across all stores. This new process made it much easier for customers to get the merchandise they were looking for, and resulted in 3.6 million dollars in additional sales in the first 10 weeks that the new sourcing process was deployed. A great example of implementing an effective BPM program to work smarter and increase revenue.
Ford Motor Credit was not flexible enough to meet shifting user demands; their technology was outdated and no longer supported. Ford Motor Credit wanted to find a way to revamp and upgrade its existing applications using multiple workflow applications to support its day-to-day business and development efforts. To achieve its goals, Ford Motor revamped its critical workflow applications. By using IBM IBM to redesign its critical workflow applications, Ford Motor Credit has increased the efficiency of its development efforts by 25 percent. The new workflow applications offer improved performance as well as significantly more functionality. The successful deployment of this project has caused Ford Motor Company to take note and transition its process development efforts to use this team's approach in terms of technology choices and infrastructure.
Transformation
HealthNow built an agile member enrollment system to automate, optimize and monitor key business decisions throughout the enrollment process determining eligibility and applicable coverage, easily identifying pending enrollment and exception cases, processing new member application and current member policy changes, enforcing regulatory compliance, disseminating tasks and triggering notifications as required. The IBM BPM solution yielded speed to market gains of more than 50%. It provided HealthNow with the ability to introduce new behaviors into systems in days rather than weeks or months, and enabled end-to-end visibility into the enrollment process - resulting in greater clarity, accuracy and consistency – transforming the way HealthNow approached and conducted business.
**NEED EMT INFO** 14

15. Key IBM Smarter Process Capabilities
The following section explains the various features and functions of a BPM system that enable the realization of the benefits described earlier and implement BPM approaches to address business concerns.

16. 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.

17. IBM Smarter Process Capabilities

18. How is Process Discovery done today?
Figure it out yourself
Lock the team in a conference room for day(s)
Sticky notes
Butcher paper
Whiteboard drawings
Back and forth till you finally understand your process
Scribe it all down
Convert it to a diagram/drawing 18

19. Simple Social Cloud SaaS Offering… Get Started Fast!
Near Zero
Learning Curve
… Collaborate, engage, model, analyze and improve your processes…
Simple
Social
Cloud
Easy for novices, rich enough for experts
Focused on broad participation
Single repository, built for Process and Decisions
SaaS Offering… Get Started Fast! 19

20. BPM Imperative: Business led discovery, innovation & change Integrating goals, processes, and capabilities
Sketch out initial process designs
Storyboard experiences and explore use cases with process walkthroughs
Describe your processes with the language & organizational roles your business uses
Capture key business factors, actionable strategies, and align your process initiatives
Leverage community-based best practices and industry content
Collaborate and communicate with other stakeholders & leaders across the business
IBM BPM portfolio differentiators include Business Led Discovery, Innovation, and Change across the application development lifecycle for a truly business driven design
The new V7 capabilities around business led discovery, innovation, and change are exciting. These allow customers to:
Sketch out initial BPMN process designs
Storyboard experiences and explore use cases with process walkthroughs
Describe your processes with the language & organizational roles your business uses
Capture key business factors, actionable strategies, and align your process initiatives
Leverage community-based best practices and industry content
Collaborate & communicate with other stakeholders & leaders across the business
You can have a conversation with your client about their business, and use the V7 tools to facilitate discussion around discovery, design, innovation, and change.
Customers take different approaches to describing their business. Some think strategically and use SWOT analysis (Strengths, Weaknesses, Opportunities, Threats). Others look at organizational capabilities or think about the organizational overall, and some think about describing their business through a process view.
With BlueWorks and WebSphere Business Compass, the technology allows you to sketch out descriptions of the business, sketch BPMN processes, storyboard and walkthrough the process right there, and describe processes with the language and organizational roles the business uses.
At the end, you can leave your customers with the URL to go access the artifacts themselves or you can leave PowerPoints with the assets you just created.
These are fundamental new features of V7 that are going to help make a difference with customers and that are going to help sell BPM ! 20

21. Smarter Process Capabilities

22. IBM Business Process Manager
Process Portal
Process Optimizer
Process Center Shared Model
Process Designer
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”
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.

23. 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
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24. BPM in Action 1) BlueworksLive 2) Modeling Ease of Use
3) How It Executes
4) End-2-End Playback
6) Optimizer Heat Maps
5) Dashboards
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25. IBM BPM Platform: Key Differentiators
1. Process Blueprints (BlueworksLive) 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
4. Process Playbacks It’s ALWAYS Instantly Runnable!
5. Snapshots Seamless Versioning Design-time & Runtime
9. Mobile Ready
10. Cloud Enabled
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.
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26. BPM Client Examples
This section covers some typical business situations that are “sweet spots” for BPM-enabled solutions. The section also outlines benefits that have been realized by employing BPM for these situations.
This section addresses typical business situations and how BPM can provide benefits for solving these business situations. The section starts with an in-depth look at a case study of an organization that adopted BPM. It then illustrates benefits that other organizations have observed after implementing BPM. The section concludes with a more generic view of the typical business concerns and benefits that can be achieved with BPM.
Key Points:
Case study and benefits
Typical business concerns and business goals realized

27. Case Study: Original Process (w/o BPM)
Sort / Prioritize Work
Complete Application Decision
Research Eligibility
Create / Finalize Record
Paper Application
Underwriting Decision
Print Application
Sort / Prioritize Work
Complete Application Decision
Research Eligibility
Create / Finalize Record
Underwriting Decision
Online Application
Similar, but separate online and paper processes
All work done sequentially
Online applications printed for filing and routing
All tasks done manually – no automated business rules
Work moved via “mail carts”
The case study is based on the BPM project at a health insurance company. The process handles requests submitted by customers (aka members) applying for enrollment in health insurance provided by the company. After receiving the request from the customer, the work is sorted and prioritized and then sequentially routed through various processing steps that determine whether the customer can be enrolled. If the customer can be enrolled, all necessary systems will need to be updated so that the customer receives health insurance through the company.
In the original process that existed prior to the implementation of BPM, all steps were performed manually. The applications from the customer were received on paper, even the online submissions were printed onto paper. The paper was sorted, prioritized (by being placed in color-coded folders) and routed through inter-office mail carts. Each worker in the process was triggered to perform their work by receiving a stack of these paper applications in the “inbox” on their desk. Once their step in the process was completed, they placed the paper in the “outbox” on their desk where it was picked up by the mail cart and transported to a worker who performed the next step.
Some of the key issues with this process included:
All steps were sequential, resulting in long processing times that impacted the ability to win new customers (customers typically chose the health insurance company that was able to respond fastest with reasonable premiums)
Work was managed by supervisors keeping track of how many applications were “sitting on someone’s desk”
Applications were easily lost or significantly delayed, especially in “exception” situations were information from the customer was missing
Separation of paper vs. online process resulted in inefficient use of human resources
Key Points:
Similar processes for online and paper, but evolved and executed separately
Work management entirely manual, using paper for routing
Long cycle times resulting in lost business
Inefficient use of human resources

28. BPM Phase 1: Add Workflow, Automate Simple Tasks
Sort / Prioritize Work
Complete Application Decision
Research Eligibility
Create / Finalize Record
Paper Application
Underwriting Decision
Underwriting Decision
Complete Application Decision
Create / Finalize Record
Online Application
Data
Prioritize Work
Research Eligibility
Used online data entered by customer
Prioritization based on rules using application data
Work routing based on data
Work pushed along as soon as prior task completed, no wait for “mail cart” needed
Work arranged in parallel
The first implementation of a BPM system focused on the process associated with online applications. Rather than printing the application to be routed in a paper-based process, the entire process was converted to using electronic data. In addition, the electronic data was used in business rules to allow the BPM system to prioritize the work and route it to the right pool of workers – multiple workers that could perform the task, not just one. Since the application is now electronically available, the process was restructured to allow some steps to be performed in parallel (they were already independent of each other in the original process, but the paper-based process did not allow the application to be in multiple different steps at the same time).
Some important differences to the original process resulted from this first implementation:
Work is routed via the BPM system, immediately after a task is completed
The same application is routed to multiple workers who can perform the next task in the process (only one worker actually performs and completes the task for a specific application)
BPM determines the pool of workers that can perform a task and the task priority based on the data associated with an application
Some tasks are performed in parallel
Key Points:
This is phase 1 of a multi-phase implementation, focusing on important process and work management issues
Key design principles for BPM implementations were applied

29. BPM Phase 2: Streamline Paper into Same Process
Paper Application
Sort and Image
Data Entry
Underwriting Decision
Complete Application Decision
Create / Finalize Record
Online Application
Data
Prioritize Work
Research Eligibility
Enter (all) data upfront
Enable better workload balancing
Reuse same routing and prioritization rules
Images follow work automatically (no search), all related documents grouped into cases
Same task automation regardless of entry point
The second phase of the BPM implementation focused on flowing the applications that were received on paper into the same process as the online applications. Document imaging and data entry to create the electronic data associated with the application was the technology that was integrated with the BPM system. To accomplish this approach the workers that were previously needed to run the mail carts were transferred to the data entry task.
Key Points:
Process is the same for online and paper applications
Workload is balanced across all available resources
Information (whether electronic data or imaged document) is immediately available to each tasks, reducing time spent searching for information needed to perform task
Although this phase emphasized document imaging over additional BPM features, it laid the foundation for exploiting BPM strengths in the next phase

30. BPM Phase 3: Setup Growth Platform
Auto Approval
Paper Application
Sort and Image ?
Auto Approved
Auto Completion
Auto Eligibility
Not Auto Approved
Data Entry
Simple Case
Underwriting Decision
Complete Application Decision
Create / Finalize Record
Online Application
Data
Prioritize Work ?
Research Eligibility
Complex Case
Focus humans on critical decision making
More effectively support growth
Automate tasks incrementally
Direct process to automated and/or manual tasks based on application data
Manage service and risk
Phase 3 built on the foundational steps of Phase 1 and Phase 2 by creating an application processing platform that allowed the company to significantly improve business operations.
Significant improvements can be accomplished by attempting to process as many applications (that do not require human decision-making) as possible in an automated fashion. Unfortunately, not every application is fit for automated processing, especially when the application is complex or contains inconsistent information. Automated processing is typically only cost-effective when the processing and evaluation rules are relatively simple to develop, deploy and change. However, most business processes today are not setup to efficiently sort the applications that could be automatically processed from those that can’t, resulting in all applications being processed manually. This was the case in the original process.
However, by setting up rules that inspect the data for each application, BPM can evaluate whether to route an application through the automated processing path or directly for human processing. If the automated processing still cannot make a decision, BPM then routes it to the human-based processing. After human-based processing is sufficient, another attempt at automated processing could be made or a decision to complete the process through human tasks could be derived.
Changing the process to incorporate tasks that automatically processed a portion of all applications further reduced processing times and resulted in significant cost savings per application processed. However, since the volume of applications and revenue increased (now that the company was able to respond faster to its customers), humans were required for making decisions about the more complex applications.
Key Points:
Automated vs. human processing based on rules that evaluate application data
Automation was incrementally introduced into the process based on analysis of highest impact and volumes
Humans are focused on critical decision-making vs. performing routine, mundane tasks
Significant benefits: lower cost per application, increased revenue from more applications converted into customers

31. Case Study: Benefits Observed
$750,000 savings in first year
Reduced cycle time from 10 days to 2 days
Increased direct and indirect customer satisfaction
Balanced workload, improved responsiveness
Cost avoidance, even after volumes increased
The company achieved some significant benefits from the implementation of BPM approaches and technology. Benefits were reflected in monetary savings from reallocating human resources and labor costs. Additional revenue, by converting more applications into paying customers, were generated through shorter processing times and more consistent process execution that was experienced by the company’s customers. When the volumes increased, the additional workload was absorbed into the BPM solution without requiring a significant addition of staff, which would have been the case in the original process.
Key Points:
Typical benefits associated with BPM implementations were achieved.

32. Other Client Examples Insurance Company Health Insurance Company
March 2010
Insurance Company
Credit Insurance Claims
Business continuity, improve productivity
Reduced cycle time, processing cost
6 month ROI
Plastics Distributor
Procure to Pay
Improved tracking, productivity
30% reduction in processing cost
Telecommunications Company
DSL Provisioning
Existing process inhibited increased volumes
Process: reduced from 45 to 7 minutes
Call Center: reduced from 400 to 260 employees
Volume: from 7,000 to 35,000 starts per month
Health Insurance Company
Individual and family plan member enrollment
Integrate imaging, new system, automate
Savings: > $700,000/year
Reduced cycle time from 14 days to 4 days
Online Retailer and Auction Company
Fraud detection
Manage legal process for potential fraud
Business rules based application
$2.5M investment, $1M/month savings
Financial Services Company
Commercial lending – loan rate options
Work automation, efficient rate calculation
Visible work-in-process, staging for renewals
Small group (15), big savings ($1M/month)
77 Project Days
105 Project Days
120 Project Days
Insurance Company
On-line access to Credit Insurance Claims
Prevent loss of critical data
Ensure business continuity
Integrate/automate manual processes
Rapid BPM Implementation – 77 day project implementation
Improved productivity, process tracking, continuity
Reduced cycle time, processing cost, risk of data loss
6 month ROI
Plastics Distributor
Procure to Pay
Legacy, manual, paper based, uncontrolled application
Eliminate duplicate entries, optimize purchasing requisition
Rapid BPM Implementation – 105 day project implementation
Human flow integration with electronic forms
Improved tracking, productivity
30% reduction in processing cost
Application replacement
Telecommunications Company
DSL Provisioning
Highly competitive – other providers
Engineering enabled increased volumes
Process inhibited increased volumes
Rapid BPM Implementation – 120 day project implementation
Process duration: reduced from 45 to 7 minutes
Call Center: reduced from 400 to 260 employees
Volume: increased from 7,000 to 35,000 starts
Health Insurance Company
Individual and family plan member enrollment
Integrate imaging, new application, automated process
Spread work, improve responsiveness
Comprehensive BPM Implementation
> $700,000 savings per year
Reduced cycle time from 14 days to 4 days
Increased producer and member satisfaction
Balanced workload, future cost avoidance
Online Retailer and Auction Company
Fraud detection
Managed legal process for identified potential fraud
Business rules based application
$2.5M investment
$1M savings/cost avoidance per month
Financial Services Company
Commercial lending – loan rate options
Fluctuations in rate
Poor turnaround of annual renewals
Variability in service levels to customers
Small Area – 10 to 15 Users
$1M savings/month
Workflow automation and efficiency in rate calculation
Higher visibility of work-in-process and staging of work in anticipation of renewals

33. IBM Delivery Approach
In addition to addressing business process definition and modeling needs, as well as providing process management and monitoring technology, BPM is also a business management discipline that is executed through the delivery of various types of projects.
This section briefly outlines the BPM discipline and typical BPM projects.

34. Common Questions Around Process Improvement…
Should we start by modeling or automating decision points?
How can we improve this process as quickly as possible?
What will it take in terms of enablement and ramp-up?
What incremental steps can we take?
Which products are best suited?
How can I get a better view into what’s happening at each step of our process?
How will this integrate into our current infrastructure?

35. Iterative Approach = Better Business Outcome
Range of traditional outcomes
Traditional build programs
Targeted
outcome
IT-centric development
Complex tooling
Large release deployments
BPM build programs
Model-driven tooling
Integrated and collaborative
development
Iterative deployment
Targeted
outcome
Faster
ROI +
3 Months
6 Months
12 Months
18 Months
24 Months
30 Months
36 Months

36. IBM BPM: Designed for rapid, agile, iterative deployments
3636
IBM BPM: Designed for rapid, agile, iterative deployments
Weeks
11 to 12
Week 13
Week 1
Weeks 2-3
Weeks 4 to 10
Go Live
Definition
Mapping
Development
Test
Infrastructure Configuration
Infrastructure Deployment
Training/ Mentoring
Quickly define, test, and deploy complete BPM solutions
Playback and test exactly how the process will run (Daily)
Iterate quickly on different process designs
Promote Business Collaboration
It has become common knowledge in the BPM space that in order to deliver business value, the only methodology that works is iterative delivery of a process. The traditional waterfall methodology has high risk of failure, because the business and its requirements may change by the time the “final” process is ready to be deployed. Instead, through iteration and playbacks you can engage the business throughout the development phase and they will be able to share with you where the key points of value are in the process, which ultimately ensures that the right application gets built.
When using IBM BPM we suggest conducting at least three major playbacks in each project delivery. It is imperative that you bring together all stakeholders and step through the process application at three or more playbacks over the course of a 10- to 12-week long project. We even have some customers who, after realizing the importance of playbacks, hold them every week! 36

37. Solution Delivery Cycle
Project Delivery Approach Collaborative, Iterative and Continuous
Solution Delivery Cycle
Solution Release
Key Best Practices
Develop the solution with the Business
Rapid, Agile, Iterative development/deployment cycles
User stories to capture business needs
Time-boxing, 2-4 week iterations
Frequent “Playbacks” to capture feedback
Prioritize iterations: business value vs. risk mitigation.
Deploy business value early and often (It’s always runnable)
Monitor execution, dashboard optimization hot-spots and incorporate changes quickly 37

38. Quick-Win Pilot Demonstrate tangible value in ~90 Days!
Quick Win Pilot – 10 weeks to a Deployable Solution
Define
Implement
(2 weeks)
(6 weeks)
(2 weeks)
Definition
Development
Test
Go-Live
Production
Deployment
Discovery Workshop to define goals, ROI, model as-Is/to-be processes maps (BlueworksLive.com)
User Stories
Problems and Pain Points
KPIs/Metrics/SLAs
Opportunities for Improvement
Model process for execution (IBPM Process Designer)
Build UI shells.
Stub Service flows.
Create Data model.
Prototype Rules.
Prototype integrations and DB design.
Mock up reports.
Develop Process to specification.
Build out rules and decision services.
Implement services with data flow and DB layer
Incorporate external service integrations.
Build out reports.
Finish remaining UI functionality, look and feel.
Complete metrics and reports.
Implement exception handling and error proofing.
Define process and rule governance for continuous improvement.
Playbacks = Running the process for an audience of 1+. The main playbacks are for sign-offs of the whole Business+IT team. There are more frequent playbacks, daily/weekly etc., for smaller audiences throughout the project. 38

39. Roles BPM Projects from Inception to Production in ~90 Days Week 1
BPM Analysts (1)
Engagement Manager (1)
Infrastructure Specialists (1)
Roles
Add Technical Architect (1)
+ Infrastructure Specialists (1)
Add BPM Developers (2)
Week 1
Weeks 2-3
Weeks 4 to 10
Weeks
11 to 12
Week 13
Discovery
Detailed Requirements
Iterative Development with frequent Playbacks
Test
Go Live
Checkpoints
Agreement on Project Scope & Goals
Agreement on Process Flow and Routing
Agreement on Data, UI, and Integrations
Agreement that Process Meets Business Goals
Technical Validation and User Acceptance
PLAYBACK 3 Series
“Refine the Delivery”
Model Corner Cases
Expanded Search Capabilities
Build Metrics and Performance Reports (Tuning and Measurement)
Other types of Processing Automation
Feedback from Playbacks
PLAYBACK 2 Series
“Continue Process Build-out, Reports & Integrations”
End-2-End Process Flow
Rules & Decision Services.
Services, dataflow & DB layer
External integrations.
Build out reports.
PLAYBACK 1 Series
“Build the Process”
Model process for execution (IBPM Process Designer)
Build UI shells.
Prototype Data Model.
Prototype Rules.
Prototype integrations.
Mock up reports.
PLAYBACK 0
“Define the Process”
As-Is and To-Be Process Maps
User Stories
Problems and Pain Points
KPIs/Metrics/SLAs
Opportunities for Improvement
Playbacks = Running the process for an audience of 1+. The main playbacks are for sign-offs of the whole Business+IT team. There are more frequent playbacks, daily/weekly etc., for smaller audiences throughout the project.

40. Continuous Process Improvement
Business Strategy
Business Design
Implementation
Model
Business Operations
Deploy
Redesign, Re-strategize
Optimize
BPM Enables Continuous Process Improvement
Operations Management and Monitoring
Measure
Business Analytics
Analyze
Continuous Process Improvement is a business management approach that establishes an overall design of the business (based on customer needs and business strategy) and then implements this design into the daily business operations through a series of phases. After deploying each phase, the daily business operations are measured and analyzed to determine if the business design can be further optimized or whether it needs to be redesigned.
The steps in Continuous Process Improvement include:
Business Strategy and Business Design creates the vision for how the business operation need to function to realize the business goals set by the business strategy
Implementation uses process modeling and other development and design approaches to create a solution that is then deployed into the daily business operations
Business Operations represents the executing of the developed business solution so that it can be managed and measured
Operations Management and Monitoring signifies the real-time management and measurement of the business operations
Business Analytics performs the analysis that is necessary to determine whether the implementation of the business solution can be further optimized or whether the conditions have shifted such that a redesign of the business design is necessary.
It is important to note that an organization can start utilizing aspects of Continuous Process Improvement without fully embracing the entire improvement cycle right away. However, experience has shown that executing on the Continuous Process Improvement will deliver the largest amount of benefits.
BPM enables Continuous Process Improvement by allowing a business to develop a solution that implements, measures, analyzes and improves business processes.

41. Flexible Deployment through the Cloud
4141
Flexible Deployment through the Cloud
Vision of the platform….
BWL, moving to private and public cloud…
In 2012, BPM and DM and Monitor…
- (1) intent, discussing, sizing BPM and DM, Monitor
- this is first step to deliver the BPM
- (2) Integrated BPM & DM via application Pattern
- (3) Preserve the design and runtime integration (process and centers)

42. Summary: IBMs Approach to BPM
Model-driven Automation + Collaboration & Sharing
Simplified Experience to Maximize Business Participation
Powerfully Simple
Accessible Anytime, Anywhere
Enterprise-Wide Visibility, Scalability, and Governance

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