Agenda. How Process & Decision Management Help to Increase Business Value? WebSphere Business Process Management



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提 升 企 業 營 運 價 值 即 時 行 銷 及 時 調 校 企 業 體 質 高 效 優 化 Katrina Li WebSphere Client Technical Professional yili@tw.ibm.com

Agenda How Process & Decision Management Help to Increase Business Value? WebSphere Business Process Management WebSphere Operational Decision Management Why IBM Websphere?

The New Normal: Change, Complexity, Uncertainty $488 billion $534 billion Lost in process inefficiencies in Fortune 500 companies In mobile transactions by 2015 85% 50% Of enterprises use external cloud services Of businesses plan to adopt more collaborative sourcing models 70% Of businesses outsource one or more strategic activities 3 50 billion Devices connected to the Internet by 2020

Complexity exists internally within organizations and externally within the broader business network Companies need end-to-end process management To orchestrate human tasks to increase visibility Agents & Producers Partners & Re-insurers Insurance Carrier Internal Employees Consumers Commercial LOB Auto LOB Consumers Home LOB DMV Financial Institutions Outsourced Service Providers 3 rd Party Services 4 to manage exceptions and cases and for scalable transactions everything you need to manage end-to-end business networks

Can Your Processes Handle Change, Uncertainty and Complexity? Turn complexity into opportunity through: Simpler Business Led Change Full Process Visibility and Governance Optimized Processes and Decisions 5 Agile Processes and Decisions with Business Process Management

BPM is About Value not Technology BPM Defined: An integrated approach to aligning the key activities of an organization into processes you can consistently measure to optimize value to your organization and its end customers. Integrated Technology + methodology Compresses cycle time for process lifecycle Enabled by BPMS platform Processes Align people & tasks to valuable outcomes End-to-end vs. silo Cross-functional Measure High visibility into performance of process & people Metrics that are meaningful to the business Quantify impact of process improvements Optimize Enhance process to maximize business value Identify & remove bottlenecks Eliminate non-value-add activities 6 Optimize processes for better business outcomes

Typical process problems Account Invoice Reconciliation Teams Customer Service Finance and Ops Administration 1. 1 Unstructured Tasks and Communication (ex 6 Paper or email) 5 2 1 4 3 Executive Management 2. 2 Inefficient Working Environment Spans Systems 3. 3 Inconsistent Prioritization 4. 4 Incomplete or Inaccurate Data Flow Between Systems 5. 5 Lack of Control Over System and Business Events (Exceptions) 6. 6 Poor Visibility Into Process Performance 7

BPM brings order to the chaos Customer Service Account Finance and Ops Risk Management Teams Executive Management Administration 1. 1 Automate workflow & decision making 2. 2 Reduce errors and improve consistency 3. 3 Standardize resolution across geographies 4. 4 Leverage existing systems and data 5. 5 Monitor for business events and initiate actions 6. 6 Real-time visibility and process control Customer Benefits: Huge Reduction in Manual Work, Errors Faster, More Consistent Issue Resolution Easier to Manage the Business Consistent Case Handling 8

Processes, Decisions, Situations: 共 生 系 統 Triggers Event Event Event Informs Situational Awareness Informs Processes Invokes Informs Informs Invokes Invokes Informs Invokes Business Monitoring Predictive Models Informs Automated Decisions 9 9

Transformation and Growth Require Better Decisions CIOs recognize that effective decision automation is key to success of CIOs with mandates to transform the business are looking to drive better real time decisions. of CIOs with mandates to expand cross-enterprise growth are leading the charge to drive better real time decisions. Source: IBM Global CIO Study 2011 10

Why Better Decisions are Critical to Success Accurate, real-time decisions improve business performance and results Identify opportunities to increase profitability Enforce consistency to ensure compliance Leverage information to manage risk Decisions are what make strategy real and drive results and performance against metrics decisions made about how to interact with partners, suppliers, customers, employees. 11 James Taylor, Becoming a Decision-centric Organization, 2011

What is Decision Management? Decision Management is a business discipline that enables organizations to automate, optimize and govern repeatable business decisions. Business Processes, Applications & Solutions 營 運 型 決 策 管 理 Operational Decision Management Decision Services 分 析 型 決 策 管 理 Analytical Decision Management Policy Regulation Best Practices Know-how Business Rules & Events Predictive Analytics & Optimization Risk Clustering Segmentation Propensity Scenario Analysis & Simulation Internal & External Data 12

Decisions are Often Locked within Processes Without Decision Management Decisions are locked in processes and applications Programming skills are needed to create & modify decision logic Speed of business change is limited by IT bandwidth 13 Manual intervention increases costs & reduces customer satisfaction

Decision Management Enables Reuse Across Processes With Decision Management Decision Service: Risk Scoring Decision Service: Eligibility Decision Service: Offers & Promotions Reuse decision assets across processes Empower business people to own, author and update decision services Respond quickly to changing market conditions 14 Maximize automation and straight-through processing

Analyst View of Operational Decision Management At the core of Decision Management is a focus on Operational Decisions. These decisions are those required to make day to day operations run effectively. They ensure that customers are treated consistently, that the right price is offered, that the most effective offer is made. 15 While the value of each individual decision is small, the cumulative effect is very large because organizations make these decisions often. ~ James Taylor, Decision Management Solutions

Decision Management increases business agility and extends BPM flexibility, effectiveness and value Business agility and responsiveness Business alignment, compliance and transparency Smarter personalization and self-service 16 16 Empower LOB users to manage and improve decisions Shorten response time to changing market conditions and events New pricing time-to-market in 2 days vs. 3 months at online travel website Achieve high passthrough rates in process automation Maximize decisions for resources, risk and value Real results 50% increase in new business quotes at major US insurance company Achieve finer-grain personalization in customer interaction Move decision-making to point of contact with customers 10x offer acceptance increase at major Canadian retail bank

Ensure success with a proven approach for adopting BPM Project Program Transformation Maturity Challenges Expertise Technology Visibility Training Identify Business Challenge & Value Rapid time to value Turnkey Services Understand and document existing processes Identify key improvement opportunities Simplicity to engage business users Solution Mentoring Succeed with an Initial Project Target high return projects Leverage proven methodologies to ensure success Governance On-Demand Consulting Assistance Establish a Program Increase skills Establish CoE Optimize established projects Extend to new projects Power to scale as business requires Transform across the enterprise Infuse a culture of process across the organization Realize fast value, foster BPM adoption and create transformational impact 17 17

Agenda How Process & Decision Management Help to Increase Business Value? WebSphere Business Process Management WebSphere Operational Decision Management Why IBM Websphere? 18

IBM BPM Vision: One BPM Human-centric A multi-year strategy delivered over multiple releases Content-centric Integration-centric Leverage the best of all offerings All starting points are valid based on customer needs Protect and extend all customer investments Create the best and broadest BPM suite in the market Have multiple product packages to match market/customer buying occasions 19

IBM Business Process Management in 2011: Unifying Two Market-Leading Platforms simple to use fast time-to-value deep business engagement high performance excellent integration superior integrity Announced at IMPACT 2011 20

Deliver on your business promises with IBM Software for BPM Reduce complexity, automate processes and boost productivity Simplicity Simplify operations and improve entire experience Simple tooling for deep business user engagement Boost productivity with efficient and effective tools for doing business Power Powerful, dependable for mission critical processes Scale smoothly and easily from initial project to enterprise-wide program Execute processes consistently, reliably, securely, and with transactional integrity SOA components for integrating applications and services 21 21 Visibility Centralizes visibility and control Empowers knowledge workers with built-in real time analytics to optimize business processes Optimize process outcomes with realtime understanding & control Governance Achieve consistency and repeatability to ensure processes execute as designed Simplify life-cycle management of process applications across 1000s of projects Easily and securely manage versions & dependencies in complex, ever-changing process applications

The essential BPM capabilities Finance and Ops Customer Service Risk Management Teams Executive Management Modeling Account Administration Monitoring Automation Governance Optimization Rules Information Cases Events Integration Collaboration 22 22 Analytics

IBM Business Process Manager V7.5 Process End-Users Process Owners Business & IT Authors Process Designer Authors & Admins Process Center Governance of Entire BPM Life Cycle IT Developers Integration Designer Shared Assets Versioned Assets Server Registry BPM Repository IBM BPM widgets work with IBM WebSphere Portal Design Improve Deploy Measure Process Server BPMN Rules Monitoring BPEL ESB Backward compatibility, easy migration from WLE & WPS Out-of-box Process Portal Configurable Business Space Optional Microsoft Add-ons 23

IBM Business Process Manager: Configurations Different configurations match typical entry points or stages in a company s BPM program Advanced Standard Express Transformation Complete set of advanced BPM capabilities Extended support for high-volume process automation, with high quality-of-service Built-in SOA components for extensive enterprise-wide service integration, orchestration Program Configured for typical BPM projects For multi-project improvement programs, with high business involvement Basic system integration support Rapid time-to-value: improved user productivity Project Configured for first BPM project For small number of users single server, no clustering Low entry price Easy to install, easy to use 24

Key Elements of IBM s Vision for BPM 1 2 3 4 5 Dramatically improve operations China Mobile centralizes process management and brings down errors by 50% Give direct control of an organization s processes to business users Bank achieves speed to market gains with 200 processes built by business users Enable repeatable success for clients World s leading grocer accelerates the completion of requests by over 400% Increase our customers ability to change and innovate JB Hunt added $870K in revenues annually by automating its billing processes. Improve organizational decision making Travelers reduces risk assessment and rate changes by 95% 25 25

Agenda How Process & Decision Management Help to Increase Business Values? WebSphere Business Process Management WebSphere Operational Decision Management Why IBM Websphere? 26

As of 2011, 2 distinct products for Business Event Processing and Business Rules Management System Detect (BEP) Decide (BRMS) Event Sources Actions Request Response BEP - Detects when events or patterns of events occur, brings situational awareness, and calls for action 27 27 BRMS - Decides business outcome through execution of business rules against data brought in by a request

The Three A s of Operational Decision Management Rules Events Contextual Decisions WebSphere ILOG BRMS WebSphere Business Events Situational Awareness A WebSphere Operational Decision Management dapt to change with increased speed & agility Intuitive natural language for specifying rules and events 28 A A lign business units and IT through enhanced visibility & governance Integrated repository for reliable versioning and change control ct in real-time with high performance & reliability Robust runtime for mission-critical deployment

WebSphere Operational Decision Management WebSphere Operational Decision Management 7.5 Management WebSphere Decision Center Decision Artifacts Versioning Access and Control Decision Center Console Repository Define Deploy Visibility, Testing & Governance WebSphere Decision Server Rule Event Execution Execution Update Measure Rule Solutions for Office Decision Center for Business Space Design Rule Designer Event Designer 29 29

How Decision Management Works: Customer Acquisition Insurance multi-channel customer acquisition Detect Decide Respond Multi-channel quote requests Internet Event Pattern: Customer requests a series of quotes with increasing deductibles Business Rules: Customer good prospect, find best promotion Make a personalized offer Call Center Event Correlations Event Pattern: 2 web quote requests and 1 direct contact in 3 days Business Rules: Determine best product Trigger agent call back to assist Agency Event Pattern: Same vehicle ID with different addresses on phone & Web request: Business Rules: Is customer gaming the system? Seek clarification Events Rules Decisions 30

How Decision Management Works: Payments Processing Financial corporate payment notification Detect B2B Payments Decide Respond Payer 1 Event Pattern: Single payment over $500k Business Rules: Alert approving accountant Approve high dollar transaction Event Pattern: Cumulative payments to a single company over $5M within a week Business Rules: Alert controller Review spending policy Payer 2 Event Correlations Payer 3 Event Pattern: Multiple payment requests for the same invoice Business Rules: Alert fraud department Stop payment 31 Events Rules Decisions

How Decision Management Works: Logistics Transportation real-time logistical support Detect Decide Respond Train geo-spatial location information Event Pattern: Train within 30 miles of station Business Rules: Location alert Update estimated time of arrival Train 1 Train 2 Event Correlations Event Pattern: Overheated wheel bearing sensor reading Business Rules: Assess risk of derailment Schedule maintenance Train 3 Event Pattern: Cumulative assessment of train delays Business Rules: Identify high priority cargo on delayed train Determine cargo re-routing Events Rules Decisions 32

Agenda How Process & Decision Management Help to Increase Business Values? WebSphere Business Process Management WebSphere Operational Decision Management Why IBM WebSphere?

Why IBM for BPM & WODM? Unparalleled Expertise and Investment Expert consulting and implementation services for fast realization of business value Industry expertise to customize solutions for your specific industry Largest Customer Base #1 in Business Rule Management Systems (BRMS) market share according to all leading analysts #1 in Business Process Management (BPM) market share according to all leading analysts 34 Strongest Ecosystem and Partner Network 800+ Business Partners authorized and certified to support customers Strongest global ecosystem including major global and regional system integrators skilled to provide comprehensive solutions

Think big Start small Scale fast Complexity should not be viewed as a burden to be avoided; we see it as a catalyst and an accelerator to create innovation and new ways of delivering value. Juan Ramon Alaix, President, Pfizer Animal Health 35 35

Think Big, Start Small, Scale Fast Business Outcomes 1Succeed With An Initial Project 2 Establish A Program 3 Extend Success Across The Enterprise A BPM Project should deliver targeted results that directly support the strategic goals of the business. Thus, a successful BPM Project requires close collaboration between business operations and technologists. A successful BPM program ties all business process projects to core business initiatives. A Transformational BPM Program enables you to manage your processes and support corporate initiatives such as improving product quality, reducing time-to-market, expanding to new markets, raising customer satisfaction, and increasing profit margins. Project Scope 36

Questions? As a reminder, please fill out a session evaluation 37