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Agenda
BPM overview The life cycle of BPM Case study References
Process decomposition
Embedded process
CIO
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
Business expectations and CIO strategiesa continued focus on business process improvement, cost reduction and analytics
(Source: Gartner 2010 CIO Agenda Exec Summary)
Benefits of BPM
BPM allows for an enterprise to be flexible and responsive to the ever changing on-demand business through the optimization and automation of the business processes to:
Identify and eliminate redundancies and bottlenecks Reduce risk by gaining an understanding of process impacts prior to operationalzing Decouple business integration logic from its underlying implementation code Increase portability and decrease maintenance cost by being based on industry standards Automate process implementation, eliminate manual deployment tasks Immediately execute new business rules and processes Visualize actual process performance against key performance indicators Pinpoint future process improvements
Agenda
BPM overview The life cycle of BPM Case study References
Business process is embedded in three or four separate applications Business functions are tightly coupled within applications Business functions have unique and proprietary interfaces, restricting re-use Manual steps introduce functional gaps in the process Process cannot be easily measured or managed Changes to the process are difficult to implement
Customers now order online using a Web browser and the Internet Business partners can enter an order using a call to a Web service from their own business processes Customers are better served
Common business functions are shared across the enterprise Marketing, Billing, and Receivables are handled uniformly Enterprises can scale across divisions and lower costs
Minimize or eliminate inventory management function Costs are reduced because less inventory is needed Inventory servicing is better because of supplier integration with the process
Shipping is not a core competency Shipping companies (FedEx, DHL, UPS, for example) have more capabilities Reduce shipping infrastructure and overhead costs
IT-focused users export models to multiple development environments to jump-start workflow and application development Business View IT View
Business Analyst
IT Architect
Developer
Process modeling
A business process model is a visual representation of a process that contains supporting information:
Documenting existing procedures Determining requirements for staff, systems, and facilities Planning changes to existing processes and systems Testing and analyzing existing and proposed processes
Update process models from real-time instances running in production Documented, auditable process models Achieve regulatory compliance In less time and at lower expensecreate new business process models with Modeler and document in one tool
IT-focused users export models to multiple development environments to jump-start application development
(ROI)
Business Rules
If Approved then Send letter offering gold If NOT Approved Send letter offering Credit counseling service
IT
Service Components
Business Interface RelationObject Mediation Flows Mediation Flows Maps ships Maps
Business Objects
Simulation
Business Optimization
Agenda
BPM overview The life cycle of BPM Case study References
Case study
ClipsAndTacks Office Supplies Ltd. Modeling the current business process
Business problem
Call center hours of operation are not convenient. The telephone order submission process is too long. The order review process delays shipments. Regular customers, in particular, resent delays due to order reviews. The company is losing customers and revenue.
Business objectives
Reduce the average time from when orders are received to the time they are shipped to 3 days Achieve an order approval rate of 90% or better
Revisions
Customers can order online (shortens the order process). Orders are accepted 24 hours a day, 7 days a week. Implementation of rules/policy engine is now included. The threshold for order review has been raised to $750. Orders over $750 must be approved by the order manager shortening average order time and increasing percentage of approved orders.
Solution architecture
Subsystem Description
Product Search UI Web-based user interface for customers to search and/or select products from an integrated product catalog. Order UI Web-based user interface for customers to enter order information, such as quantity and shipping method, or to view the details of existing orders. Order Approval UI User interface for the order manager to view and authorize orders. Configuration UI User interface for ClipsAndTacks' staff to configure the ordering process, specifically, the order approval process. Performance Dashboard Web-based user interface for Business Performance Analyst to query and view business performance results Order Handling Service A business process that responds to the Order UI and creates new orders or displays existing order status. The process determines whether an order can be automatically processed according to the procurement policies. Order Approval Service A workflow process that is used by the order approval staff to validate and approve orders.
References
http://www.ibm.com/developerworks/bpm Business Process Management: Modeling through Monitoring Using WebSphere V6.0.2 Products, August 2007 Designing SOA Solutions with the IBM SOA Foundation,SOA590 / RA911 ,December, 2006 Anthony Catts,Joseph St. Clair. Business Process Management Enabled by SOA. ibm.com/redbooks,2009 Anthony Catts, Joseph St. Clair. Business Process Management Enabled by SOA. ibm.com/redbooks,2009 Getting Started with SOA -WS007 SOA590 Designing SOA Solutions using IBM SOA Foundation Using IBM WebSphere Business Modeler, Monitor and Process for BPM Assessment Assets for Service Oriented Architecture-SW707 http://gocom.cc/ http://www.redbooks.ibm.com/cgibin/searchsite.cgi?query=BPM&SearchOrder=1&SearchFuzzy=