Implementing BPM Experienced Challenges and Lessons learned

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1 Implementing BPM Experienced Challenges and Lessons learned Steen Brahe, Finance IT Tuesday

2 Agenda BPM implementation: The Customer package process Business Perspective Software Engineering Perspective Process Participants Perspective Organizational and Technological challenges Lessons Learned Summary Finance IT Tuesday 2

3 BPM Implementation The Customer Package process Finance IT Tuesday

4 Customer package Customer package = A number of financial products bundled together for a specific group of customers Example customer package: Account Credit card Credit Internet access Finance IT Tuesday 4

5 Business Perspective From Manual to Automatic Coordination of Work Finance IT Tuesday

6 Customer package scenario Juni 2003 August 2003 October 2003 December 2003 Marts 2007 Introduction of Customer packages. Word template to collect info Finance IT Tuesday 6

7 Customer package scenario Juni 2003 August 2003 October 2003 December 2003 Marts 2007 Backoffice group created Handles the creation process Finance IT Tuesday 7

8 Customer package scenario Juni 2003 August 2003 October 2003 December 2003 Marts 2007 Case Transfer System Automatic validation and transfering Finance IT Tuesday 8

9 Customer package scenario Juni 2003 August 2003 October 2003 December 2003 Marts 2007 Workflow enabled creation process v. 1 Automatic process control, 0% automated activities Finance IT Tuesday 9

10 Customer package scenario Juni 2003 August 2003 October 2003 December 2003 Marts 2007 Workflow v. 6 80% automated activities Finance IT Tuesday 10

11 Customer Packages values WFM has shown real business value Is the glue that binds different systems together 27 different products, 10 different silos, 30 sub processes Workers have become more efficient Before 20 cases a day. Now 50 cases a day Approximately 40 fulltime positions cut away Process instances are handled homogeneously Process is better understood Centralized process control enables continuous optimization Finance IT Tuesday 11

12 Software Engineering Perspective Challenges experienced by the project team Finance IT Tuesday

13 Business Process Development From manual work practice to Implementation Engineering Perspective Talks with Worker describes Business Analyst Solution/Technical Architect Process Developer creates implements creates Packaging Quality Assurance Accounting Shipping Work practice ASIS/TOBE Process model BPEL Finance IT Tuesday 13

14 Understanding work practice Difficult to understand real business process. Workers have different views of the reality Workers work differently Engineering Perspective Before, we thought we knew our process. Now, after implementing WFM we know do! Finance IT Tuesday 14

15 Solution not complete Engineering Perspective Model of initial incomplete version ASIS Process model Finance IT Tuesday 15

16 Solution not complete Engineering Perspective Developer creates implementation based on solution model from architect. Encounters following: Missing scenarios Missing information Activities not broken down Sequence of dependent activities Several iterations between developer/architect, users and business analyst before complete version 1 Finance IT Tuesday 16

17 Model of version 1 Engineering Perspective Finance IT Tuesday 17

18 Using SOA Engineering Perspective Integrates services from 10 systems Loans, Cards, Agreements, Accounts Services are developed and maintained by different departments No services developed by Customer Package project Several manual activities could by automated Does it allready exist? How do I find it? Who shall develop, support and maintain it? Finance IT Tuesday 18

19 Using SOA : Service standards No common enterprise domain model Difficult to understand semantic of attributes Difficult to map data No standards for return codes Difficult to implement exception handling Engineering Perspective Finance IT Tuesday 19

20 Engineering Perspective Implementation version 1 (FDML) Finance IT Tuesday 20

21 Engineering Perspective Implementation version 6 (BPEL1) Finance IT Tuesday 21

22 Backoffice Workers Perspective Will not be in a factory line Finance IT Tuesday

23 BPM Systems Ideal To externalize process knowledge from within minds and applications into a centralized executable workflow Only one place to change process knowledge Workers should only focus on separated tasks. Process knowledge is not needed by people The Process distributes tasks to the right person at right time Finance IT Tuesday 23

24 Reality Completely new way of working Fragmentized, no understanding of working context Things happen unexpected, exceptions occur: Technical failures Business Scenarios not thought of Easier, quicker to handle exceptions when the same person has handled a complete case Claimed control of the workflow IT development team created an imaginary task as the first one in the workflow This activity assigns all tasks to the claiming worker Finance IT Tuesday 24

25 Reality We will not be a factory Group Manager for workers You get better case workers when they follow complete cases It gives a better feeling when doing a complete piece of work Vibeke, a worker Finance IT Tuesday 25

26 Challenges Technological and Organizational Finance IT Tuesday

27 Technological challenges We were early on combining WFM(BPM) and SOA System Stability Long response times Instability Technological Complexity Workflow language has changed 3 times on three year Translation from one language to another is very time consuming and expensive Finance IT Tuesday 27

28 Technological challenges Developer complexity: Many technologies: XML, WSDL, XSD, Java, BPEL, SCA, XPath, COBOL, zos, JMS, Webspere, Transactions, compensation Multiple versions of same process templete Running instances of different versions of same process Instances running up to 5 years Service dependency management Finance IT Tuesday 28

29 Organizational challenges Participants all new to MDD, SOA, BPM Received no education, no best practices, no governance Development process has not been followed Other services not service oriented Old COBOL developers Who owns a service? Who owns a process? Much more difficult than service ownership The business owner does not understand process thinking Finance IT Tuesday 29

30 Finance IT Tuesday Lessons Learned

31 Lessons learned Lessons Learned Development process is VERY important Service orientation and business process management requires much of a project team Static tests, Documentation, Governance SOA and BPM experience important for smooth project Stepwise optimization User involvement very valuable Process oriented thinking is not easy. Finance IT Tuesday 31

32 Today Much work on maintaining and operating the BPMS platform Development outsourced to India Much work on how to construct processes Correct specification is a key to success Projects must specify the process model Workflow Consultant helps projects Expert from the BPM System department The business owners still do not think in processes Finance IT Tuesday 32

33 Summary SOA and BPM have proved business value Hugh savings in labor numbers Consistent handling of cases It is difficult to adopt SOA and BPM. It requires Technical excellent skills Inhouse experience / experts Educated, trained organization Development process & Governance! The business owner must think in processes, understand the possibilities of BPM technology, take leadership of the implementation project. Finance IT Tuesday 33

34 Further information Software Engineering Perspective S. Brahe: BPM on top of SOA: Experiences from the Financial Industry. 5th International Conference on Business Process Management, LNCS 4714 p (2007) S. Brahe: Early Experiences on Adopting BPM and SOA: An Empirical Study. Technical report, IT University of Copenhagen, TR (2007) Computer Supported Cooperative Work Perspective S. Brahe & K. Schmidt: The Story of a Working Workflow Management System. GROUP 2007, Sanibel Island, Florida (2007) Finance IT Tuesday 34

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