Intelligent Business Processes

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Martin Stone
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1 Intelligent Business Processes Business Intelligence meets Business Process Management IBM IOD EMEA, Berlin, June 2009 Dr. Wolfgang Martin Analyst and ibond Partner

Retrospective view Lack of operational component Poor concepts for information distribution

2 The Data Analysis Gap Traditional BI did not always meet expectation. Why? Lack of business relevance (bottom up BI) Missed to turn information into action Retrospective view Lack of operational component Poor concepts for information distribution (information hiding or information deluge) Lack of collaborative component Isolated information silos S.A.R.L. Martin

3 BI meets BPM Agenda The Intelligent Enterprise Process-Orientation Metrics-Driven Management Pro-active Business Intelligence You can only manage what you can measure S.A.R.L. Martin

Pro-active Business Intelligence You can only

4 Processes Matter Strategic Approaches Impacts Results Integration Standardization Automation Flexibility Information Management On Demand Higher Productivity Optimized Resources Reduced Complexity Higher Through Put Reduced Error Rate Less Returned Goods Reduced Time-to-Market More Satisfied People Better Ranking & Rating Increased Margins Cost Leadership Quality Leadership Market Leadership Efficiency Effectiveness Agility S.A.R.L. Martin Measure!

Reduced Error Rate Less Returned Goods Reduced Time-to-Market More Satisfied People Better Ranking & Rating

5 The Process-Oriented Enterprise Management Focus Industralization of Processes (Operational Excellence) Flexibility of Processes (Agility) Supplier Enterprise Customer Governance, Risk, Compliance Embedded Intelligence Collaborative Process Department Performance Management Processes are Across and Beyond Functions, Departments, and Corporate Boundaries S.A.R.L. Martin

Compliance Embedded Intelligence Collaborative Process Department Performance Management

BI meets BPM Execute Rules Engine Process Engine collaborative business process Business Process Management collaborative business process

6 BI meets BPM Execute Rules Engine Process Engine collaborative business process Business Process Management collaborative business process Service-Oriented Architecture Model S.A.R.L. Martin Analysis, Design, Test, Simulation Performance Management Plan, Monitor & Control Metrics, Business Intelligence

Service-Oriented Architecture Model 6 2009 S.A.R.L.

7 Performance Management Performance Management is a business modell enabling the enterprise to continuously harmonize business goals and processes and keep them consistent. Performance Management means, planning, monitoring and controlling of ALL processes. You can only manage, what you can measure You should only messure, what management can action S.A.R.L. Martin

Performance Management means, planning, monitoring and controlling of ALL processes.

8 Re-Positioning BI BI 2009 is operational ( Real-Time Analytics ) looks forward - traditional BI only looked backward is more than reporting. It turns information into actions Performance Management and GRC puts the concepts of BI into the context of business processes Take Aways S.A.R.L. Martin

It turns information into actions Performance Management and GRC puts the

9 BI meets BPM Agenda The Intelligent Enterprise Process-Orientation Metrics-Driven Management Pro-active Business Intelligence You can only manage what you can measure S.A.R.L. Martin

10 The Intelligent Enterprise Operational Excellence Efficient Processes Effective Processes Business Partner Collaboration supplier enterprise customer Competitive Intelligence Analytics in Operational Excellence Fraud Detection Fault Detection Risk Management Capacity Management Contract Compliance Supply Chain Excellence others... Customer Intimacy Product Leadership Ubiquitous Intelligence Identify and Solve Problems Before They Arise S.A.R.L. Martin

Detection Fault Detection Risk Management Capacity Management Contract Compliance Supply Chain Excellence others.

11 Closed-Loop Monitoring and Controlling Strategy Events Business Process Goal Result Sensors Metrics Early-Warning Systems Cycle Speed Act Decide Measure S.A.R.L. Martin

12 The Concept of Real-Time Definition: Real-Time in business terms means availability of the right information at the right time at the right place for the right purpose. Real-Time has nothing to do with clock-time Better term for Real-Time would be In-Time or Right-Time Real-Time is all about synchronizing processes and information S.A.R.L. Martin

Real-Time has nothing to do with clock-time Better term for Real-Time would be In-Time

13 Technology BI Governance Enterprise Strategy Goals & Objectives Organisation Processes Rules People Driving the Enterprise Sensors Policies Metrics Culture S.A.R.L. Martin

14 Positioning Performance Management Strategic Approaches Impacts Closing Results the loop. Integration Standardization Automation Flexibility Information Management You can On Demand only manage what you can measure S.A.R.L. Martin Higher Productivity Optimized Resources Reduced Complexity Higher Through Put Reduced Error Rate Less Returned Goods Reduced Time-to-Market More Satisfied People Better Ranking & Rating Increased Margins Measure! Cost Leadership Quality Leadership Market Leadership Performance Management Efficiency is beyond Effectiveness reporting. It turns Agility information into action.

Martin Higher Productivity Optimized Resources Reduced Complexity Higher Through Put Reduced Error Rate Less Returned Goods Reduced Time-to-Market More

15 BI meets BPM Benefits Performance Management is a methodology to link strategy to results. turns data into actionable information. empowers all staff by delivering information not only to power users and business analysts, but to everybody inside and outside the enterprise. delivers high degree of accuracy and consistency of information. provides transparency and traceability to management and enhances the bottom line. delivers the right information to the right information consumer to the right location in due time ( right-time or real-time ). Take Aways S.A.R.L. Martin

delivers high degree of accuracy and consistency of information. provides transparency and traceability to management and enhances the bottom line.

16 BI meets BPM Agenda The Intelligent Enterprise Process-Orientation Metrics-Driven Management Pro-active Business Intelligence You can only manage what you can measure S.A.R.L. Martin

17 Challenging Business Intelligence Identify and solve problems before they arise Ubiquitous intelligence Examples: Product availability: The never empty shelf Sales forecast: Your quota in 3 months S.A.R.L. Martin

Examples: Product availability: The never empty shelf

18 Customer Value Example: Customer Intimacy Customer Life Cycle Customer Acquisition Customer Growth Customer Retention 360 View of Customer Time Interaction data - Offers - Results - Context - Click streams - Notes Descriptive data - Attributes - Characteristics - Self-declared info - Demographics Behavioral data - Orders - Transactions - Payment history - Usage history Attitudinal data - Opinions - Preferences - Needs & Desires S.A.R.L. Martin

Descriptive data - Attributes - Characteristics - Self-declared info - Demographics Behavioral data - Orders -

19 Intelligent Processes SOA Advantage collaborative Business Process Composite/Mashed Application (Web) Services Rules Engine predictive models Integration Hub (ESB) Data Integration Interactive Analytics External Data Operational Data Data Warehouse Dynamic Data Access S.A.R.L. Martin

models Integration Hub (ESB) Data Integration Interactive Analytics

20 Datenintegration The Data Mining Process Data Exploration operational systems Dynamic data marts VSAM SAP Oracle DB2 DW model construction micro geographical data demo- and sociographical data S.A.R.L. Martin Web Data real time people and/or processes PMML Web Services model deployment model management

geographical data demo- and sociographical data 20 2009 S.A.R.L.

21 Meta Data BI Reference Architecture Strategy Metricized Goals Processes & Metrics Embedded Analytics Analytical Services Interactive Analytics Analytical Processes Collaboration Adaptive dynamic Data Integration S.A.R.L. Martin

Pro-Active Business Intelligene Today, BI combines embedded and interactive analytics BI should not be restricted to the Data Warehouse BI should be service-oriented Identify,

22 Pro-Active Business Intelligene Today, BI combines embedded and interactive analytics BI should not be restricted to the Data Warehouse BI should be service-oriented Identify, classify, and intelligently analyze all available information Avoid to be surprised when the unexpected happens Put Your smart brains in the driver s seat! Take Aways S.A.R.L. Martin

The Intelligent Enterprise Process Oriented Enterprises are Agile and Intelligent. Agility Fosters Re-activity, Intelligence Fosters Pro-activity.

23 The Intelligent Enterprise Process Oriented Enterprises are Agile and Intelligent. Agility Fosters Re-activity, Intelligence Fosters Pro-activity. Process Intelligence Drives the Evolution of Business Intelligence. The Ultimate Goal of BI is to Turn Data into Knowledge that Lets Business People Immediately Comprehend the Dynamic State of their Business and Act Accordingly. White Paper CPM Analytical Services in a SOA Free Download at Contact: [email protected] S.A.R.L. Martin

Volume 2: CPM Corporate (Business) Performance Management

The ibond Series intelligent Business on Demand Volume 2: CPM Corporate (Business) Performance Management White Paper Pulse Check : Operational, Tactical, and Strategic CPM Part 1: Vendor Independent White