Business Process Management Executive Roundtable

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1 <Insert Picture Here> Business Process Management Executive Roundtable Prasen Palvankar, Director Strategic Engagements (SOA), Bob Williams, TSM SOA/BPM & E2.0, (615) ,

2 The following is intended to outline our general product direction. It is intended for information purposes only, and may not be incorporated into any contract. It is not a commitment to deliver any material, code, or functionality, and should not be relied upon in making purchasing decisions. The development, release, and timing of any features or functionality described for Oracle s products remains at the sole discretion of Oracle. 2

3 Agenda Registration & Networking Zero to ROI: Setting the Stage for BPM Business Challenges Oracle s Strategy for BPM Product Suite and Roadmap Dinner & Roundtable Discussion 5 Steps to Successful BPM Next Steps

4 What is the Problem? Organizational Units Customer Relationship Management Sales and Marketing Production Planning Manufacturing Inventory & Logistics Finance & HR Processes Product Configuration Order Management Warranty & Returns Management CRM Inv SFA Product product SCM product DB LMS MGMT ERP ERP MES B2B Enterprise Infrastructure Services (Portal, SOA, IDRS, LDAP, EAI, , IT Operations) Real-World Business Processes span organizations, systems, and applications.

5 Challenges Visibility BEA Confidential. 5 Undocumented and unmeasured processes Poor exception-handling Limited accountability Unavailable metrics

6 Challenges Productivity Multiple touchpoints Manual processes span divisional domains Redundant work wastes time and money BEA Confidential. 6

7 Challenges Customer Satisfaction Long response times Unprocessed exceptions Complicated and uncoordinated customer service Unmet SLAs BEA Confidential. 7

8 Challenges Flexibility Quickly launch new business tactics Outgun the competition Attack new opportunities BEA Confidential. 8

9 BPM Solution Across Apps, Functions and People Organizational Units Order Management Process Customer Relationship Management Sales and Marketing Production Planning Manufacturing Inventory & Logistics Finance & HR Processes Product Configuration Order Management Warranty & Returns Management Customer Relationship Management Sales and Marketing Production Planning Manufacturing Inventory & Logistics Finance & HR CRM SFA Product product SCM product DB LMS B2B Inv ERP MES MGMT ERP CRM product SFA Prodict product SCM DB LMS B2B info. Inv ERP. MES MGMT ERP Enterprise Infrastructure Services (Portal, SOA, LDAP, EAI, , IT Operations) Enterprise Infrastructure Services (Portal, SOA, LDAP, EAI, , IT Operations) Real-World Business Processes span organizations, systems, and applications. BPM models, simulates, executes, manages, monitors, & optimizes those Business Processes.

10 Oracle s BPM Strategy Offer Complete & Integrated Business Process Management Platform For System-centric, Human-centric, Document-centric, and Decision-centric Business Processes in a single runtime For Business Owners & Developers to Collaborate To Streamline Processes across Applications & Lines of Business Enabling greater Business Process Efficiency Through Process Monitoring, Analysis, Simulation, Optimization 10

11 The BPM Lifecycle Making the BPM components Work Together Various Stakeholders Business Process Monitoring (BAM) Optimize Model BPM Lifecycle Business Process Modeling Simulate LOB Process Owner Business Analyst BPM Process Architect/ Business Engineer Monitor Implement Deploy Execute Business End User Developer Business Process Execution (BPE) Process Administrator

12 Business Process Improvement Plan Identify and Map Critical Business Processes Define Current State of the Processes Define Desired State of the Processes Prioritize Processes targeted for Improvement by: Value/Impact to the Enterprise Urgency/Need Complexity Identify Key Metrics and Success Criteria for each Develop cost models around traditional approaches to business process improvement (buy/build vertical applications vs. horizontal BPM platform) Maintain cross-functional Sponsorship Focus on Iterative Phases of Improvement driven by Value ORACLE 12

13 Identify and Map Business Processes Process Impact Revenue Cost Customer Service Cycle Time High Risk Management Claims Eligibility Customer Support/Help Desk Sarbanes-Oxley Inventory Management HR Management Transportation Management Service Billing Claims Repricing Employee On Boarding Automated Expense Report Management Claims Adjudication Order-to-Cash Customer Provisioning & Activation Field Service Management Order Management Product Lifecycle Management Customer Credit Management Revenue Recovery Procurement & Sourcing Loan Origination Benefits Administration Reverse Logistics HIPAA Compliance Low Process Complexity # of Process Steps # of Process Participants # of Integration Points # of Transactions # of Process Exceptions # of Organizations High ORACLE 13

14 4 Stages of Improvement and Value Simplicity As Is To Be Document/Simulate Best Practices Analyze Automate Accuracy Manual Activities Integrate Control/Compliance Alignment Innovate Optimize Transparency Agility Monitor/Audit Synchronize Real-Time Metrics Oppty/Change Mgmt Efficiency ORACLE 14

15 A BPM Solution Improves Efficiency Control Agility Deliver more better, faster and cheaper than your current alternative Consistently knowing the current status and outcome of your processes Ability to adapt quickly to changing business conditions Metrics Utilization, capacity Throughput, speed Quality, yield, exceptions Financial Organizational SLA failure rate Rate of non-compliance Speed to create & change processes Time to market Reduced Cost Managed, lower risk New revenue growth Results Improved productivity/roi Effective resource utilization Better quality / service Compliance Financial accountability Lower capital reserves Better visibility Market share growth Increased competitiveness Thought leadership ORACLE 15

16 Business Process Improvement Opportunity Life Cycle Competitive Advantage Analyze Automate Optimize Innovate Time ORACLE 16

17 Combined Product Offering Business Process Management Oracle BPA Designer BEA AL-BPM Designer Oracle BPM (BEA AL- BPM & Oracle BPEL PM) Oracle Document Capture & Imaging Oracle Business Rules Oracle Business Activity Monitoring Oracle WebCenter Structured BPM Designer for Rigorous Process Modeling & Simulation Agile BPM Designer for Iterative Process Modeling Converged BEA AL-BPM & BPEL Process Manager for Human & Structured BPM in Single BPMN & BPEL Runtime Paper Document Capture, Imaging & Document Workflow with ERP Integration Declarative Rules Engine to express Business Policies Dashboards to Monitor Business Events & Business Process KPIs for Optimization Process Portal Interface to visualize Composite Processes 17

18 Oracle BPM Suite Comprehensive Business Process Management Oracle BPM Suite AquaLogic BPM Designer Oracle JDeveloper AquaLogic BPM/ XPDL Runtime Oracle BPEL Process Manager Oracle Business Rules Oracle BPM Oracle WebCenter* * Restricted Use License 18

19 BPM Suite Roadmap Primary Product Integration Milestones Today Best-of-breed portfolio Single point of contact Best practices Customers leveraging today 100-day release Fall 2008 Oracle branded Interoperability between BPM and BPEL PM Certified on WLS 10.3 Features such as enhanced BPMN support, enhanced Office integration 11g CY 09 Platform consolidation BPM Studio unified modeling and simulation environment Native BPMN 2.0 support Process Portal - Collaborative workspace application built on Web Center Process Dashboards Out of box process BAM dashboards Intended for information purposes and may not 19 be incorporated into a contract

20 Agenda Registration & Networking Zero to ROI: Setting the Stage for BPM Business Challenges Oracle s Strategy for BPM Product Suite and Roadmap Dinner & Roundtable Discussion 5 Steps to Successful BPM Next Steps

21 Every Successful Chef Starts with sharp knives makes big meals of small dishes measures to taste and follows it has a recipe

22 Every Successful BPM deployment Starts with common tools builds a platform out of small projects uses simulation and measurement has established best practices and follows them

23 (1) Standardize on a set of tools

24 Common Tools Modeling tools for business users Development tools with shared model Web application for human interaction and metrics

25 Take small bites (2) but plan for a big meal

26 Identify Suitable First Targets Low maturity level: easiest to improve poorly understood processes Low complexity: identifiable touch points, no politics Single department Clear sponsorship High impact: affect sales, profitability or market differentiation Customer or partner touc Need for improved visibil 3-6 month go-live goal

27 But.Plan for Scale

28 But.Plan for Scale One successful project breeds demand Invest early in scale Tools that support both human and system processes Vendors that can support globally distributed businesses Products with a track record Tested methodologies

29 Simulate and constantly (3) measure

30 Process simulation Test processes with real-world assumptions Staffing System performance Costs: systems, salaries, Throughput Business sponsors validate results Activity metrics feed future simulations for refinement

31 Process Simulation Configure Simulation Scenarios (Loads) Observe and manage queues in real time. Adjust staffing/efficiency, etc. Generate detailed reports to assess process design. Export reports for external analysis. Extensive cost-based, time-based, and unit-based reporting.

32 Process Measurement Key metrics Processing time Process activity time Process workload and distribution Process state Web dashboards for selfservice reporting Notification for alerting system operations or process owners

33 (4) Build a Process Center of Excellence

34 Process Center of Excellence Key members COO: operational efficiency mandate Executive IT: sponsor system integration work BPM technology owner: BPM tools, resources, expertise Business analyst: technical liaison with process owners Business operations staff: project resource owners Charter Produce methodology and documentation Prioritize processes and projects Maintain process best practices Evaluate and report on performance

35 (5) Follow a methodology

36 Methodology Implement and follow guidelines from your CoE Leverage best practices Industry methodologies Vendor methodologies Peer-group anecdotes Learn from other s mistakes and experiences

37 Summary Starts with common tools builds a platform out of small projects uses simulation and measurement has established best practices and follows them

38 Oracle BPM drives the dynamic business by leveraging an enterprise s most valuable assets: people, processes and systems Achieve sustainable agility Quickly launch new initiatives Anticipate and adapt to the customer experience Advance and sustain competitive advantage Transcend boundaries to increased visibility Drive accountability and measure performance Embrace and integrate the value chain Comply with regulations, standards and guidelines Operate at maximum efficiency Reduce cost and risk Unify LOB and IT objectives Increase throughput and reduce transaction costs

39 Agenda Registration & Networking Zero to ROI: Setting the Stage for BPM Business Challenges Oracle s Strategy for BPM Product Suite and Roadmap Dinner & Roundtable Discussion 5 Steps to Successful BPM Next Steps

40 Take the BPM Lifecycle Assessment Examination Detailed survey focused on four key process domains Analyze Orchestration Optimization Innovation Diagnosis Based on complex analytics results Compared vs. peer group Prescription Go forward plan based on results Best practices identified and utilized ORACLE. 40

41 Oracle Insight Program Industry Perspective: An interactive discussion with your executives to explore how technology can enable your objectives and strategies Discovery: Collaborative analysis of your current business processes to identify the highest value opportunity Solution Design: Recommended best practices and solutions, including a time-to-benefit analysis and a high-level implementation plan Solution Presentation: Oracle's overview of the industry trends affecting your business, key supporting technologies, business benefits and value drivers, and a phased implementation plan and road map

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