From Data Centric to Business Process Centric

Transcription

1 From Data Centric to Business Process Centric the Business Operating System of the Cloud Internet becomes the Computer BPM becomes the software OR IT Doesn't Matter published in the May 2003 edition of the Harvard Business Review The End of Corporate Computing (2005) By Nicholas G. Carr

2 IT Doesn t Matter Business Processes Do Complex event processing, in a wired world, using real-time information, generated both within the firm and across the value-delivery system, to trigger custom business processes to get work done over the Web, for their customers, employees, suppliers and trading partners

3 Supply Chain Management 2 1 Suppliers Supply Planning Demand Planning Customers 5 Inbound Logistics Enterprise 4 Outbound Logistics 3 Production Distribution Planning CRM / PLM / MES Buy Add Value Sell 3

4 Supply Chain Management 2 1 Supply chains become hot and big savings can be achieved with Suppliers Supply Planning Demand Planning the new IT. Logistics cost worldwide are estimated at $2,000 to Customers $3,000 billion. The Internet have opened up new possibilities for small to medium size enterprises. Inbound Logistics Enterprise 4 5 End-to-end supply webs containing real-time business process Outbound Logistics facilities for decision support. Real success is increasing the 3 Production Distribution Planning CRM / PLM / MES profitability of every link in the chain. Supply chain IT is more capable of dynamic management, Buy Add Value assigning the right product to the right supply chain at the right time. Sell 4

5 The New IT embrace human interaction management Driving Agility and Innovation in Business Operations The Old IT doesn t matter, it is about handling transactions we ve used during the first 50 years. The New IT (BPM) is all about helping people get their work done. The New IT will embrace human interaction management, that s centered on the interactions of people, not the interactions of computers

6 Accelerates time to value Metric Strategy layer Enterprise Product Value stream analysis 1-2 years Cordys helps businesses Organization 3-6 months layer Process Layer dramatically improve the speed BPM 2.0 Business Operations Platform to sync different process cycles of change, fundamentally altering the way Software layer Infrastructure layer years they innovate their Business 6-10 years Operations

7 Business aligned with IT Two different kinds of BPMS Document imaging Enterprise Application Integration Workflow Business Process Integration Integration Centric Business Process Management Business Process Management Human Centric BPM Process Focus The New IT IT Doesn t Matter Business Processes Do Mid-late 1980s Mid-late 1990s Total BPM

8 the Business Operating System of the Cloud Value Proposition End-to-end process automation vs. DMS/Imaging Workflows

9 Imaging Workflow Solutions Business Process is a combination of Human Activities System Activities Document Flow Traditional Imaging Workflow Systems offer Strong Document Management and Imaging Workflow Limited capabilities / external dependency for Human and System Activities (BPM, Rules and Integration) Piece-meal approach to address process automation using multiple components Higher TCO due to dependency on App-Server, Hardware and multiple skill sets And hence higher operational and maintenance costs 9

10 BPM-2.0 Value Proposition Comprehensive Business Operations Platform for end-to-end process automation BPM (H-H, H-S, S-S) SOA based Integration (SOA-Grid) RIA (Rich Internet applications) development capabilities Built-in Business Rules Engine and BAM Model, Execute and Deploy executable business processes from a single screen One-time SOA-based integration with third party (low cost) DMS and Image viewer enables integrating the document flow in to the processes Lower TCO - generic skill-set (Java, JavaScript, XML) and commodity hardware for deployment; no dependency on App-server Leverage investments by addressing multiple requirements with one product 10

11 The Changing Focus on Business Processes From Cross-Process Companies To Cross-Company Processes The New IT Supply Network Transition from: Compliance Process Into: Life Business Service Business Services 11

12 Before : Process automation kept the Intelligence out! A pre-planned Flow Chart for Business Automated Information flows in defined path Industrialized : No customization, Can t make situational decisions Business changes are not reflected Where is my brain in my business? Not much space for human and so less scope for innovation 15

13 Now: Process automation with human input! Bring human (intelligence) in the flow! Information flows in a more flexible way People take control, Innovation goes back to business Not rigidly automated Mobile workforce: Business knowledge in transition 25 million users 16

14 Case Management: Calamity handling in railways Case management: putting the knowledge worker in control. No predetermined activity sequence. Knowledge workers decide themselves and on-the-fly which activities to do and to do when.

15 Sub-case: Staffing trains The model just specifies how the system guides the knowledge worker in taking these decisions (case-based constraints on when to decide and which activities to add)

16 Sub-case: Supply station facilities

17 BOP: for True Business Agility Single View The business user Enterprise MashApps BPM Composer Admin Developer Multi-Tenant SaaS Deployment Framework The switch between all Enterprise Services Nonstop SOA GRID ERP CRM Legacy SCM PLM 17

18 Typical Collaboration With Process Control Process Control Partners Sub-Contractor Supplier Process Visibility External Domain People as part of a workflow Applications Strategic Partner Design Partner Support Sales Finance Manufacturing PLM ERP CRM MES 30

19 The Business Operations Platform Model Driven Customers Managers Suppliers Staff Visualization of Performance Business Operations Platform Multi-Tenant Saas Deployment Framework Business Logic, Metadata and UI UCF Business Services BPMS MDM BAM Case Mgmt Rules Single View of Enterprise Data Model GUI Mashups Proactive KPI & threshold Management SOA Grid Integrated Business Rules Engine Corporate Data ERP CRM Legacy App s Claims 19 Products Composite Apps SOA from the Ground up for true Linear Scalability Mashups for improved productivity

20 Aligning business & IT from two perspectives Delivering Operational Control Technology perspective CIO cares for new enabling technologies, controlling resources and automating work procedures Business perspective COO cares about top-line growth and bottom-line cost cutting From BPMS to BOP (Business Operations Platform) 20

21 So companies can improve, innovate Deming QA (PDSA) kaizen, poka yoke Modular & Island admin. Integrated System Collaborative Systems SixSigma (DMAIC) activity process chain oriented oriented oriented Business Activity Management ERP: collection of linked functions or hard coded process Function Process Collaboration Business Process Management Metric Enterprise Corporate Performance Management Product Value stream analysis 21

22 Differentiate by value stream Engineer Build Deliver Order Order Build Deliver

23 Business Operations Platform The power of Value Stream Mngt and BPMS combined Value stream analysis Metric Product Implement Service Unit Technology Role Enterprise Performance feedback Business process management and monitoring 23

24 How do I achieve the process for me? Business Metric Product Value stream analysis Operations Platform Business Enterprise Enterprise Mashups Role based Web UI s composed to the knowledge worker Process owners of end-to-end views taking functions away from traditional leaders Total BPMS Process Orchestration and Management Collaborative Workspace to accelerate time to value Real time SOA Grid nonstop - carrier grade 3rd Party Integration Bus IT ERP CRM Legacy App s SCM PLM 24

25 McKinsey & Company: SaaS Platforms For ISVs - Who Wins? SaaS is highly disruptive for existing hardware and software providers and contain new core components, such as web services and usage-based billing capabilities. This disrupts existing platform providers like BEA and Microsoft SaaS platforms are designed for multi-tenancy. This disrupts Oracle and SAP SaaS platform are delivered on-demand, not on premises. This threatens providers like IBM and HP SaaS products need on-demand customization tools to compete with enterprise solutions like Siebel and SAP 25

26 SaaS Is Make or Break for ISVs - Which Platform Will Win the ISV Business? Every ten years there is a dramatic shift in the development tools world in the 80 s to client/server in the 90s to three tier and now in the 00 s to SaaS Over the next five years, we will see the 500 pound gorillas of the development world like Microsoft s ASP.NET and Sun s J2EE unseated. In their place will be new software platforms based on traditional languages that are specially designed to enable development of SaaS applications 26

27 A New ERP For The 21st Century Extended-Enterprise Resource Management Extended-Enterprise Resource Management October 3, 2008 Today s Knowledge Economy Demands A New Resource Management system This is the first document in the Enterprise Resource Management series Tim Harmon 27

28 Extended-Enterprise Resource Management (EERM) ERP is the planning of how (physical-based) business resources are acquired and moved from one state to another Command-and-control leadership gives way to connect-and-collaborate, where every member of a business team is a "leader. (Peter Fingar) Forrester defines EERM: The planning and management of people and the knowledge resources they apply to the transformation of the business from one state to another 28

29 Customer Order Decoupling Point Engineer-to-Order Assemble-to-Order Make-to-Stock Mass Customization Billions $ Millions $ XX-K $ 0,X-K $ Generic Components IT Engineer logic to Database Customize logic to project Software as a Service Model to Business Process Specific Components Business one-off culture culture of re-use Customized solutions Vanilla ERP: Bespoke with 4GL SaaS BPM as a Service 29

30 Built to Change 4 GL - Developers Business Operations Platform Composers unstructured data Enterprise MashApps In the prison of the database The Process Board Room Real-time SOA GRID Internet becomes the Computer BPM becomes the software Generic Components IT Engineer logic to Database Customize logic to project Software as a Service Model to Business Process Total BPM Business Customized solutions one-off culture Vanilla ERP: Bespoke with 4GL SaaS culture of re-use BPM as a Service 30

31 Mash-up Composer Gartner: By 2010, web mash-ups will be the dominant model (80%) for the creation of new enterprise applications. Source: ComputerWeekly.com May

32 Cordys is the Business Operating System of the Cloud RAM : 200 terabytes 20 Exabytes of data per year Has 1 billion processors Processes a million s per second Now we take Everything Online 32

33 Mashups and Integrations: On-Premise and On-Demand MashApps Webservices Customer Small Business Applications THE PROCESS FACTORY NetWeaver ERP Information Composer Admin MASHAPPS Composer Online Modeling Environment SaaS Deployment Framework Deployment, Enrollment, Metering Business Operations Platform BAM BPM Non-stop SOA-grid Developer ESB Fusion ESB... EAI.Net Legacy CRM SCM ERP PLM Developer JD Edwards PeopleSoft 35

34 Thank you