Management in the Nutshell

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1 Business Process Management in the Nutshell By Maher Salam

2 Agenda Fujitsu Consulting Business Process Modeling Language BPM introduction and concepts, BPM Suite Demonstration (Fujitsu Interstage) Q&A 2

3 Agenda Fujitsu Consulting Who is Fujitsu Consulting? Service Offering BPM Consulting at Fujitsu Business Process Modeling Languages BPM introduction and concepts, BPM Suite Demo (Fujitsu Interstage) Q&A 3

4 Who is Fujitsu Consulting? Fujitsu Consulting delivers the scale and viability of a top-tier global IT services organization but with the responsiveness and adaptability of a local boutique service provider. Fujitsu Consulting offers the best of both worlds: a flexible and adaptable local partner with offices and key resources in every major market in North America, backed by strong worldwide alliances and extensive global delivery capabilities. 4

5 Services Offering Business Process Management Management Consulting IT Consultancy Security Consultancy Application Consultancy Knowledge Management 5

6 BPM Consulting at Fujitsu Fujitsu Consulting has experience helping organizations envision and build business models that integrate strategy, people, processes, customers, suppliers and technology. Our focused and collaborative approach quickly identifies initiatives that deliver measurable business value. We help clients implement new business and technology designs so they can realize the planned return on investment much more rapidly and efficiently. Fujitsu Consulting offers services critical to organizations in the areas of: Operational assessment Business process design Business architecture alignment and strategy IT investment analysis Business process implementation 6

7 Agenda Fujitsu Consulting Business Process Standard Modeling Languages BPMN XPDL BPEL BPM introduction and concepts, BPM Solution (Fujitsu Interstage) 7

8 Business Process Modeling Notations BPMN creates a standardized bridge for the gap between the business process design and process implementation. BPMN defines a Business Process Diagram (BPD), which is based on a flowcharting technique tailored for creating graphical models of business process operations. A Business Process Model, then, is a network of graphical objects, which are activities (i.e., work) and the flow controls that define their order of performance. Object Management Group (OMG) 8

9 BPMN Diagram Elements 9

10 Business Process Execution Language BPEL is an "execution language," a programming language that has variables and operations. The operations can send and receive SOAP messages, and there is strong support for XML and XML transformation. Keith Swenson 10

11 XPDL XPDL is a file format that represents a process definition. It contain X & Y coordinates and node size. It has the concept of lines, and points along the line that gives it a particular path. The nodes and lines have attributes that can specify executable information such as roles, activity descriptions, timers, web service calls, etc. XPDL 2.0 contains extensions in order to be able to represent all aspects of BPMN Keith Swenson 11

12 BPEL vs. XPDL The goal of BPEL is to provide a definition of web service orchestration with underlying interactions i. e. BPEL in BPM solution is all about data transformation from one place to another with web service invocation and data manipulation functions. The goal of XPDL is to allow tools to exchange process diagram files. BPEL and XPDL has entirely different purposes Maher Salam except where noted 12

13 Standard BPMN Suites Interactions 2007 Maher Salam except where noted 13

14 Agenda Fujitsu Consulting Business Process Standard Modeling Languages BPM introduction and concepts, What is PBM? Why BPM Matter Business and IT Deferring perspectives BPM life cycle Where Does BPM fit? Business and IT BPM perspectives Challenges of BPM adoption The nine BPM Misconceptions First Steps BPM Solution (Fujitsu Interstage) Q&A 14

15 Business Process Management (BPM) It is a process based unified approach to accomplish organization goals; it refers to round-tripping improvement life cycle that includes analysis, design, execution, and Monitoring/management of crossfunctional and cross-industry business activities that incorporate people, processes, and systems Maher Salam except where noted 15

16 Why BPM Matter? TQM, Six Sigma Minimum focus on People Islands of automation and record keeping BPR No implementation support One time organizational change ERP (like Concrete) Based on best practice Too complicated, and hard to innovate or develop agile processes Can t handle cross functional Problem effectively Limited user input, minimum customization 2007 Maher Salam except where noted 16

17 BPM and Six Sigma DMAIC Define, BPM helps express the process under study on Value Chain Level Measure, BPM can collect data from operational systems in a fully automated manner. Analyze, BPM can encode metrics within any process design to analyze variation Improve, BPM assist by the ease to generate and simulate processes Control, BPM prevent process reverting 2003 Howard Smith and Peter Finger, BPM The Third Wave 17

18 BPM and Business Process Reengineering BPM provide the right tools and techniques to avoid failure. Hammer and Champy s BPR failure reasons BPR try to fix processes instead of reinventing them Willing to settle for minor results Concentrate on Detailed process design Dragging the effort out and quitting too early 18

19 How BPM makes ERP works ERP Too Complicated, and hard to innovate or develop new processes BPM Manage agile processes across people and systems including ERP module (silos) Can t Handle cross functional Problem effectively Limited users input and customization Business dominates ERP implementation Track Problem across the value chain Allow users to design cross-functional processes Business and IT share the control 2007 Maher Salam except where noted 19

20 Why Now? Customers are asking not only for just-in-time products, but also for just-in-time processes Regis McKenna (fullyinformed customer ) Rapid, endless change is fundamental driving force in today s business Howard Smith and Peter Finger Mass customization vs. mass production (Financial services ) End-to-end process visibility, agility and accountability is mandatory for today s business Industry Boundaries are blurring (Microsoft & MSNBC) It is a Value Chain vs. Value chain competition (process acquisition and aggregation) Collaboration vs. Competition (Insurance quotes) 2007 Maher Salam except where noted 20

21 We Can t t Afford Dumb Systems! Decades of CRUD systems that, Generate reports without learning Build to last and never change Wait and never act 2007 Maher Salam except where noted 21

22 Business and IT Differing Perspectives Business focuses on costs, revenue and firstmover advantage IT focuses on the nuts and bolts of how a process works on a technical level like triggers, rules and the ins and outs of every application BPM align both Business and IT and shift the management of change from reactive to proactive 2007 Maher Salam except where noted 22

23 What BPM can do for IT Bringing all IT development under an overarching BPM platform confers the following benefits to the IT organization: Flexible, rapid development and deployment in one unified platform Reuse of existing IT assets Change management Integration-based infrastructure that allows third-party applications to be leveraged Meet business demands quickly and easily Self-service capability for business users (through governed configuration, customization, and composition) Fast, iterative development, thereby decreasing project risk 23

24 What BPM can do for Business Communicate with IT and other business departments, based on a common shared model of the business Specify project requirements through visual processes without the need to know the underlying IT systems Obtain access to information that is meaningful and linked to business processes and business metrics Share best practices in process improvement across the enterprise Eliminate wasteful, non-value added work, and hereby concentrate on growth and innovation 24

25 Where Does BPM Fit? Layered Solution BPM EAI ESB Process Choreography Service Invocation\Orchestration Rule/Process/Event Engine Simulation Process monitoring Process analytics Process modeling Data transformation Application adapters Process automation Web services XML translation Event triggering Routing Messaging 25

26 BPM Lifecycle and Six Sigma Process Execution Monitoring and Management Design and Implementation Assessment and Discovery Analysis and Optimization 2007 Maher Salam except where noted 26

27 BPM Adoption Challenges Do not know where to begin Lack of visibility into business processes Lack of operations knowledge and processes causes this uncertainty BPM misconceptions presents many challenges 2007 Maher Salam except where noted 27

28 First BPM Misconception BPM is packaged application! BPM usually does not directly provide domain-level functionality offered by commercial off-the-shelf (COTS) applications, it provides the tools to model and mange the execution of processes that flow across multiple functional applications. If a functional application that implements a process does not exist, the BPM platform provides the development environment to create such an application. While most third-party applications are restricted to functional domains, BPM can play the role of a cross-functional process bridge to create end-to-end, dynamic processes. 28

29 What Fujitsu offer? Fujitsu Interstage Suite, Easy to use business process modeling for cross functional process modeling Robust BPM Server for process execution 29

30 Second BPM Misconception BPM is considered very expensive! When compared to ERP and client/server implementations, BPM is not only relatively inexpensive, it is also less risky. The BPM platform facilitates the creation of a common, shared model of the business that minimizes gaps in communication and misunderstanding of requirements, By closely mapping business requirements to IT services The BPM platform also decreases implementation time by providing a development environment that minimizes custom coding and facilitates reuse of previously built processes and services. 30

31 What Fujitsu can offer? Interstage uses Standard modeling notation BPMN, for which minimizing risk by provide common communication framework for both business and IT Interstage Suite provides minimum coding development platform through predefined generic Actions, Timers, Triggers and Forms 31

32 Third BPM Misconception BPM is used only for process modeling! Process model are the corner stones of all BPM phases. BPM makes it possible to create roundtripping environment Discovery, Analysis and Optimization, Design and Modeling, execution, Monitoring 32

33 What Fujitsu can offer? Interstage Suite cover the complete BPM lifecycle and provide round-tripping environment Experience with helping customer to implement BPM solution Interstage Suit process models supports, 1. Simulation 2. Upload to BPM server 3. version control 4. Process monitoring and KPI analysis 33

34 Forth BPM Misconception BPM is an all-or-nothing proposition! Unlike ERP implementations that do not return a single dollar until a full implementation is complete, an incremental implementation of BPM provides benefits from day one. 34

35 What Fujitsu offer? Iterative and incremental methodology for BPM implementation Increased visibility into business operation starts from day one Agile methodology that map project Earned Value to Business Value 35

36 Fifth BPM Misconception BPM is the same as EAI Traditional EAI is limited to addressing issues of transaction and data integration without a focus on the overarching business process. BPM, however, is a framework for business process integration. As EAI is to applications, BPM is to business processes. BPM adds a higher-level of integration capability to enterprise integration. In this sense, BPM does not replace EAI, but extends it to a higher order of abstraction. 36

37 What Fujitsu can offer? Interstage Suite allow process cerography and service orchestration, no application integration is required. Complete support for SOA and related patters 37

38 Sixth BPM Misconception BPM has no hard ROI Traditional ROI, traditional cost-benefit analysis, will not provide the right ROI, With BPM, projects are more efficient ( by decreasing the time to gather requirements, translating them into specs, developing new processes, and promoting reuse). BPM s value is in providing a superior operations management capability. 38

39 Seventh BPM Misconception BPM is a project! The implementation of BPM happens through one or more projects, BPM itself is not only provides the tools to manage a process improvement project, but also to manage business processes continuously. 39

40 Eighth BPM Misconception BPM causes loss of control over operations. This is a serious issue for senior executives who have a need to control their business processes and their enterprise architecture. BPM technology does allow for easy changes to processes. Through design-time, run-time, and change-time governance, BPM improves visibility both into project lifecycles and into business processes, thereby increasing control without increasing bureaucracy. 40

41 Ninth BPM Misconception BPM causes disruptive change There is a lot of truth to the idea that BPM involves a radical re-thinking of business processes. It implies a move away from a function-centric organization to a process-centric organization. The actual transformation into a process-centric organization can happen gradually. Change consultants must not underestimate the resistance to change 41

42 First Phase- Organization Assessment 2007 Maher Salam except where noted 42

43 Second Phase! 1. Process Management training 2. Select a point of entry. This is not a trivial task Too often proposals for new process improvement projects face rejection because the business is struggling with the current broken processes They have no time to consider process improvement proposals. Such a situation is tailor-made for introducing business activity monitoring solutions. 3. Process discovery and design POC 4. Seed BPM platform and tools into existing projects 5. Implement BPM project management to spread BPM competencies 43

44 Third Phase! 1. Design business processes from outside in 2. Look for mission-critical project that yield large payback, and has elements of application integration, workflow, SOA. Value chain integration 3. Seek opportunities to test the promised benefits of BPM, and present BPM as helper and enabler to existing programs 4. Identify commodity business services and show BPM outsourcing and monitoring capability 5. Establish enterprise-wide standards for BPM and build BPMS foundation 44

45 Fourth Phase 1. Once BPM is proven in practice, consider how to gradually phase out work on existing methodologies and business units structure 2. Establish the baseline of BPM value chain processes 3. Apply bottom-up and top-down approach for complete and gradually improve value chain 4. Leverage processes and monitoring data to innovate new management capability to derive enterprise agility 45

46 BPM skills Stages 1. Innocent- Never heard of BPM 2. Aware- Has read something about BPM 3. Apprentice- Has studied BPM (high level) 4. Practitioner-Ready to use BPM 5. Journeyman- Uses BPM naturally 6. Master- knows when to break the rules (Why) 7. Expert- write about BPM 46

47 Agenda Fujitsu Consulting Business Process Standard Modeling Languages BPM introduction and concepts, Fujitsu Interstage, Interstage Business Process Manager Fujitsu Interstage Suite Architecture Demonstration of Fujitsu Interstage Suite 47

48 Interstage Business Process Manager Interstage Business Process Manager helps you detect process bottlenecks quickly, measure deviations from set goals, and recommend measures for improvement. Information can be fed back to refine your business processes inching you closer to the goal of optimized business operations. 48

49 Fujitsu Interstage Architecture Interstage BPM components 49

50 Interstage Studio Interstage BPM has an open, flexible, scalable architecture that integrates seamlessly into existing environments. It's Application Programming Interfaces (APIs) empower developers or system engineers to tailor Interstage BPM to an organizations'specific needs. Interstage BPM is made up of several components. The Interstage BPM Studio is an easy-to-use business process modeling tool. It enables process designers and system integrators to graphically model the business processes of an enterprise. 50

51 Interstage BPM Server Interstage BPM Server is a Web-enabled workflow engine. It provides the run-time environment for process instances created from process definitions. 51

52 Fujitsu Interstage Suite 52

53 Interstage Studio Features Build better, newer business processes, faster Reduce risk by pre-testing various business scenarios before executing Better align and use resources Reduce errors and costs and improve efficiencies by automating tasks Track tasks and business metrics and optimize processes in real-time Demonstrate compliance by documenting processes More can be found at, 53

54 Demonstration 54

55 Q&A 55

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