Introduction to BPM. Dr. Setrag Khoshafian. Chief Evangelist & VP of BPM Technology

Transcription

1 Introduction to BPM Dr. Setrag Khoshafian Chief Evangelist & VP of BPM Technology

2 Agenda: Business Transformation Through BPM Suite The Vision: Realizing the Adaptive Enterprise What is a BPM Suite? How are Organizations Succeeding with BPM Suites? Who Benefits from BPM Suites? Conclusion 2 2

3 Scientific Management Business Process Re-engineering Lean Six Sigma Adaptive Enterprise Process Improvement Structured Production Workflow Business Rules Social Collaborative Process Automation Decision Management Dynamic Case Management Business Events Intelligent BPM Suites Process Intelligence EA SOA WOA COA 3 3 Process Architectures

4 A Business As A Collection of Policies and Procedures Policy & Procedure Manuals Policies & Procedures In People s Head Policies & Procedures Hidden in Code Policies & Procedures Hidden In Operational Data & Data Warehouses Policy & Procedure Models 4 4 Automated Policies & Procedures: BPM Suite

5 Policies and Procedures = Process Flow + Information / Content + Business Rules + Integration + User Interface + Case Management + Collaboration + = Automated Through BPM Suite 5 5

6 Agenda: Business Transformation Through BPM Suite The Vision: Realizing the Adaptive Enterprise What is a BPM Suite? How are Organizations Succeeding with BPM Suites? Who Benefits from BPM Suites? Conclusion 6 6

7 The B in BPMS Business Objectives - KPIs Business Change and Agility Business Requirements Business Business Business Solutions 7 7

8 The P in BPMS Skill Based Routing Model & Simulate Quality Alerts Open Productivity & Database Anticipatory Adaptive Retrieval Analytics Tailored Interactions Cases & Folders Priority Next Best Imaging Telephony Multi-Channel Web Services Automated Transactions Guided Processing Action System-Driven Processing 8 8

9 The MS in BPMS 9 9 Business Activity Monitoring

10 The MS in BPMS: Methodology Slivers Direct Feedback Sticky Process Discovery Collaborative Feeds Process Discovery Application / Application Profiler Profiler Live Updates Unit Auto Test & Test Management Framework Project Management Framework Status Reporting and Governance Continuous Documentation Transition Reporting & BI 10 Continuous Improvement

11 The MS in BPMS: Re-Use and Specialization Customer A Customer B Customer C Elite Service Offering Standard Service Offering Other Service Offering Customer Specialization Line of Business Standard Offering Pega Framework BPM Suite Platform & Accelerators Pilot Gold Customers Silver Customers Value Added Services US & Canada Offerings Europe Offering Customer Process Manager - (Packaged Contact Center Best Practices) BPM Suite 111

12 BPM Suite: Continuous Improvement Cycle Directly Capture Objectives: Eliminate Execution Gaps & Efficiently Build Enterprise Solutions Monitor, Improve, Analyze & Optimize Business Performance Change, reuse & Specialize Automate Work & Manage Dynamic Cases 12

13 Directly Capture Objectives for Business Applications 13

14 Rule Types Business Rule Decision Event Constraint Expression Decision Tree Decision Table SLA Trigger On Change 14

15 Business Rule Example Situation World MasterCard VIP Customer IF Dispute Amount is less than $51 AND Transaction is not disputed as a fraudulent transaction AND Customer has disputed less than two transactions this year No Write-Off? Yes 15 Then Fully credit the customer without even initiating the dispute (i.e., Write-off the transaction)

16 Business Rules Drive The Processes Expression Rules Integration (SOA/WOA/EDA) Rules Decision Rules UI Rules (multi-channel 508 accessibility) Security Rules Event Rules 16

17 Elements of a Typical Case Case Subjects Collaboration Case Business Objectives Case Rules / Policies Case Data Sub-Cases Case Content Tasks Case Events Process fragments 17 Unstructured, Dynamic and Ad-Hoc

18 Pega Dynamic Case Management Ad-Hoc Changes Subject Subject Subject Case Workers 18

19 19 BPM Suite Enterprise Repository Enterprise Repository Testing Versioning Reuse/Specialization Auditing Search/Navigation Access control BPM processes for management Instant deployment Rollback Best policy or procedure for a given situation (context): customer, channel, product, location, etc.

20 Agenda: Business Transformation Through BPM Suite The Vision: Realizing the Adaptive Enterprise What is a BPM Suite? How are Organizations Succeeding with BPM Suites? Who Benefits from BPM Suites? Conclusion 20

21 The Nine Attributes of Business Transformation Through BPM Suite Legacy Modernization and Transformation Empower the Business to Own The Change Change the Organizational Structure to Meet Market Demands Easily/Quickly Innovate with New Products and Services Leverage a BPM COE To Collaborate and Govern Success Expand Solutions Globally Drive Agility and Automation for Efficiency and Effectiveness Demonstrate ROI and Cost Savings 21 Foster Great Customer Experiences

22 Legacy Modernization and Transformation Example Web Branch Phone Mail Etc BPM Suite Case Management Integration Plumbing Agility Layer Billing Customer Accounts Debit Credit Integration Plumbing BPM Suite Exceptions Case Management 222

23 Empower the Business to Own The Change Example Business People Writing Business Rules Why: Benefits: Challenge: Eliminate translation errors Not a trust issue between the Business and IS Not a lack of IS resources Increased accuracy Increased time to delivery Very agile change process Most Claims Specialist do not understand programming basics Error handling Logging Data declarations Solution: IS utilized PegaSystems BPM Suite to build the Claims Optimization Framework 23 Source: BCBS NC

24 Easily/Quickly Innovate with New Products and Services Change the Organizational Structure to Meet Market Demands Example 24

25 Change the Organizational Structure to Meet Market Demands Business Innovation & Agility Centers TRC & Extended Enterprise COE Market Groups Lines of Business Retiree Solutions Accredo Liberty New Markets BIAC BIAC BIAC BIAC BIAC Operations Centers Clinical Example Advocacy COE Advocacy Order Processing COE Order Processing Shared Services Shared Services 25 Inc.

26 Maturity BPM Enterprise Maturity Model Federated COE model in place. Business Maturity with Common Processes LOB 1 LOB 2 Sponsors / Steering Committee Overall Oversight and Initiatives Prioritization Expert Servic es Resou rce Process / Rule Architect Program Mgmt. PM Leads 4 Busine ss Analys t Claims Region Method Adoption Building Competence 1 Project Tread: Business Unit Expert Services Resourc e Process / Rule Architect Program Mgmt. PM Leads 3 Busines s Analyst Establish LOB COE Corporate COE established. Best Practices Defined and Adhered to Leverage a BPM COE To Collaborate and Govern Success Time

27 Iterative BPM Suite Methodology Slivers Direct Feedback Sticky Process Discovery Collaborative Feeds Process Discovery Application / Application Profiler Profiler Live Updates Unit Auto Test & Test Management Framework Project Management Framework Status Reporting and Governance Continuous Documentation Transition Reporting & BI 27 Leverage a BPM COE To Collaborate and Govern Success Continuous Improvement

28 Federated BPM COE Leverage a BPM COE To Collaborate and Govern Success Corporate COE PRPC Project Director Architecture Methodology Infrastructure QA Deployment COE Leadership Executive Sponsor, Business C-Level Exec, IT C-Level Exec HR COE COE Manager/PM Lead SA / BA PM UAT/QA Lead Finance COE COE Manager/PM Lead SA / BA PM UAT/QA Lead produces 28 Methodology Best Practices Reference Architecture Project Team A Tech Lead Developers Project Team B Tech Lead Developers Project Team C Tech Lead Developers SME s Project Team D Tech Lead Developers Project Team E Tech Lead Developers

29 Drive Agility and Automation for Efficiency and Effectiveness Six Sigma Define Measure Analyze Improve Control (DMAIC) Customer Step A Define Project CTQs Customer Defines High Level CTQ Step B Define Team Charter Step C Define Process Map DEFINE Customer s CTQ Met Real-Time Six Sigma with BPM Suite Six Sigma Business Six Sigma Project Team Step 1 Select CTQ Characteristics Step 2 Define Performance Standards Change, reuse & Specialize Step 4 Establish Process Capability IMPROVE Step 3 Measurement System Analysis Step 5 Define Performance Objectives Step 7 Screen Potential Causes MEASURE Step 6 Identify Variation Sources Step 8 Discover Variable Relationships ANALYZE Step 9 Establish Operating Tolerances 29 CONTROL Step 10 Define and Validate Measurement System on X s Step 11 Determine Process Capability Step 12 Implement Process Control

30 Drive Agility and Automation for Efficiency and Effectiveness Real-Time Lean Six Sigma = Lean Process Optimization with Six Sigma Efficiency through BPM Automation 30

31 Farmers: Collaboration for Results Example 31 Submission to policy issue process cut from 14 days to 14 minutes New BOP product line live in 29 states in 5 months Quotes in 1.5 minutes instead of 45 minutes 70% increase in policy umbrella sales Doubled BOP market share in one year Demonstrate ROI and Cost Savings We went from having people in a room talking about what was possible, to having something for our agents to use in 5 months. That s pretty lightning speed in my view Mhayse Samalya, President of Farmers Commercial Business Insurance, Farmers Insurance Group

32 Agenda: Business Transformation Through BPM Suite The Vision: Realizing the Adaptive Enterprise What is a BPM Suite? How are Organizations Succeeding with BPM Suites? Who Benefits from BPM Suites? Conclusion 32

33 Who Benefits from BPM Suitess? IT Operators Increased Efficiency Intent-aware user interfaces Automated Straight Through Processing Smart Work Management Next Best Actions Dynamic Case Management Business Increased Productivity Model-driven development Instant deployment Enterprise BPM repository Successful SOA through BPM 333 Build for Change Increased Visibility and Control Directly capture Business Objectives Monitor business activities Smart control of business processes Manage change Design By Doing

34 STP, Custom & Guided Interactions Operators Customer Requests New Insurance Policy Up Sell or Provide Status On Current Requests Manual Searches for Customer Information Manual Review For Missing Data Manually Retrieve Missing Information from Customer DB Automatically Obtain Customer Information and fill in missing data Manually Calculate Customer Predictive Score Manually Assign Policy To Risk Assessment Business Rules (Expressions/Decision) calculate Score and Route to Eligibility Decision Maker 34 Decide Eligibility Risk Business Rules Assist and Guide User in Assessing Eligibility Is Customer Eligible? No Manually Write And Send Rejection Letter Automatically Generate and Send Rejection Correspondence Yes Manually Automatically Notify Generate Customer and Send Of Acceptance Correspondence

35 Direct Feedback 35

36 As-Is State Example Claims workers switch & toggle multiple screens: IT and Operator Policies (business rules) need to be made in different systems: IT and Business Little visibility, governance and control of work: Operator and Business 36

37 Example: BPM Suite Solution Changes made in one BPM Enterprise repository: IT and Business Example Business Empowered to make changes to the rules: Business and IT Workload Balance: Operations and Business Eliminate some of the incumbent systems: IT Manage the Service Levels: Operations and Business 37

38 Enterprise Collaboration and Web 2.0 What Should You Look For in a BPM Suite? DBMSs Legacy Finance ERP ECM HR 1. Directly Capture Objectives Business Performance BPM Suite 2. Situational Layer Cake ESB EAI - MOM Application Servers 3. Automate the Work Enterprise Applications and Content 38 Z/Os Windows Solaris AIX Linux HP UX

39 CUSTOMERS Pilot Gold Customers Customer A Customer B Customer C Elite Service Offering Value Added Services Silver Customers US & Canada Offerings Standard Service Offering Company-wide Standards BPM Suites& Frameworks Other Service Offering Europe Offering What Should You Look For in a BPM Suite? BPM Suite Makes the Enterprise Adaptive Driven by Customer Focused Value and Continuously Monitored Objectives Automated, Dynamic, and Continuously Improving Customer Oriented Architecture BPM Suite Contextual, Specialized, and Continuously Innovating Value Added Services 2 39 Slivers Thinking big and starting small with Continuous Iterations Insightful and Continuously Learning ID 1 For 2 Better Decisions 3 4 Data Behavior Value Good 1,000 Bad 120 Bad 60 Good 2,500 Past Experience Predictive Analytics Predictive Model

40 Build For Change For the Adaptive Enterprise Days BPM Suite Solution Capability Conventional Solutions 40 Time

41 Questions & Answers Introduction to BPM