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© 2006 IBM Corporation
IBM Software Group
IBM Process Improvement Workshop (PIW)
Overview Quick Reference
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Activities Establish process boundaries and link the process to business goals and benefits Model the activities that make up the current “As Is” process including decisions,
failure points and exception paths Document resources, roles, along with duration and revenue/cost values. Identify changes to the process that would result in an improved, workflow-and/or
services-enabled alternative and model the future “To-Be” process Develop simulation cases and perform static and dynamic simulation analysis Discuss Key Performance Indicators (KPIs) and implementation attributes
Deliverables “As Is” and “To Be” simulation results and comparative reports, process diagrams
Participants Customer: LOB executive sponsor, business process SMEs, IT architects IBM: Process modeling specialist, technology specialists, Industry SME
A 2-4 day educational and problem-solving work session during which we document a current business process,
define a high level technology-enabled alternative process, and compare the two using WebSphere Modeler’s
advanced simulation capability
WebSphere Process
Improvement Workshop
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WebSphere Process Improvement Workshop (PIW)
Description
A 2-4 day engagement designed to document the benefits of an improved business process and to demonstrate the value of the WebSphere Business Modeler and the IBM software portfolio. During the workshop a limited-scope current-state model is developed and compared to one or more future-state alternatives enabled through IBM software.
Duration Cost Customer Sponsor
With Customer: 2 – 4 daysTotal: +/- 1 week
No-charge, Est. value = $25K-$50K
LOB executive
Objectives
Customer/IBM
Model, analyze and improve a limited-scope business process using WebSphere Business Modeler to develop an improved understanding of modeling best practices including simulation and dynamic analysis.
When to UseCustomer has process improvement initiatives planned or underway and funded, or an active Six Sigma program
Client Deliverables
• Current-state and future-state business process models• High-level solution architecture• Business justification for the investment
Next StepsIf a more elaborate business case is needed to justify investment, then a Business Value Assessment, TCO or more detailed architecture workshop can be conducted.
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Highlights
IBM WebSphere SOA and BPMEnabling Six
Sigma
Drag and drop speeds model development
Visio import saves time, extends capability, minimizes rework
Modeler repository enables workload to be divided
Process model and data repository becomes rich basis for improvement
Drag and drop speeds model development
Visio import saves time, extends capability, minimizes rework
Modeler repository enables workload to be divided
Process model and data repository becomes rich basis for improvement
Swimlane editor, classifiers, color coding allows a single model to be viewed, shared and edited from different perspectives
Simulation capability, including exception path analysis, enables problems to be understood and impact more accurately determined
Swimlane editor, classifiers, color coding allows a single model to be viewed, shared and edited from different perspectives
Simulation capability, including exception path analysis, enables problems to be understood and impact more accurately determined
Dynamic analysis enables current- and future-state alternatives to be evaluated in multiple ways
WebSphere Publisher enables feedback and publishes documentation
Technical attributes may be assigned for seamless IT handoff (BPEL, UML)
Dynamic analysis enables current- and future-state alternatives to be evaluated in multiple ways
WebSphere Publisher enables feedback and publishes documentation
Technical attributes may be assigned for seamless IT handoff (BPEL, UML)
Business measures/KPI are defined by business users
WebSphere Business Monitor provides real-time management and historical analysis capability
Runtime data may be imported to set up next cycle
Components may be reused to design new processes
Business measures/KPI are defined by business users
WebSphere Business Monitor provides real-time management and historical analysis capability
Runtime data may be imported to set up next cycle
Components may be reused to design new processes
Six Sigma Improvement Method
© 2006 IBM Corporation
IBM Software Group
EXAMPLE Process Modeling Workshop
(Based on a real engagement with a Retail customer on In-Store Workflow)
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Business Objectives
To increase productivity and efficiency of in-store employees by more effectively managing store workflow and use of data.
To capture lost margin and increase profit by Making sure that product is out on the shelves when space is
available (discontinued items may remain in the backroom even with shelf space available; eventually these are marked down to clearance-level pricing)
Improving in-store employee productivity and right-sizing staff levels
Decreasing the time it takes new employees to be productive through managed workflow and task lists
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Process Modeling Workshop Activities
1. Provide WebSphere capabilities overview Business Modeler and Monitor capabilities
WebSphere Process Server and Integration Developer capabilities
2. Review the high-level, current-state process and environment Project goals and objectives, potential benefits
In-store activities and applications
3. Develop the current-state process model Roles and resources, inputs/outputs
Activities, time estimates
Decisions including Fill need and Fill Types
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Process Modeling Workshop Activities (continued)
4. Sketch the solution architecture Workflow components including ability to monitor and manage work lists
Task prioritization, assignment, and override requirements
Use of application data and event triggers to build (prioritized) work lists including suggested Fill Types
5. Create a draft future-state process model Revised, simplified decision steps
Reduced cycle times and improved overall efficiency
Load base data for further analysis and simulation
6. Discuss findings and agree on next steps
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Process Modeling WorkshopCurrent-state Model (at the store)
Current-state Issues• Employee work inefficiently, tasks take longer to
complete (less time with customers)• Potential for lost profit – Discontinued items remain
in the backroom with shelf space available
Employee uses Plan-o-gram to move from aisle to aisle where
they replace Header Labels and determine shelf fill requirements
for each product.
Employee uses Plan-o-gram to move from aisle to aisle where
they replace Header Labels and determine shelf fill requirements
for each product.
Employee determines Fill Type based upon what they can observe
and with a limited amount of product. Best Fill Type decisions
are not always made.
Employee determines Fill Type based upon what they can observe
and with a limited amount of product. Best Fill Type decisions
are not always made.
The current in-store process leaves decision-making to the employee with limited data…
An employee typically works one type of task at a
time, cycling repeatedly through the store
An employee typically works one type of task at a
time, cycling repeatedly through the store
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Process Modeling Workshop
Potential Areas of Improvement Consolidate / Eliminate Tasks
Maximize the use of Parallel paths
Increase probability of most desirable paths
Reduce task durations
Modify resource requirements
Improve the use of data and information
Automate tasks or sub-processes
Implemented in the To-Be model
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Process Modeling WorkshopFuture-state Macro Model
In-store applications generate individual task lists which are then passed to the corporate
workflow management solution
In-store applications generate individual task lists which are then passed to the corporate
workflow management solution
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Process verifies that all tasks lists have been received (overnight) from each
store before creating prioritized Master Task Lists. Events during store hours
can trigger changes in the list.
Process verifies that all tasks lists have been received (overnight) from each
store before creating prioritized Master Task Lists. Events during store hours
can trigger changes in the list.
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Data from the store applications are used, in combination with a set of rules,
to prioritize each store's master Task List (e.g. Plan-o-gram information is used togroup activities by location in the store).
Data from the store applications are used, in combination with a set of rules,
to prioritize each store's master Task List (e.g. Plan-o-gram information is used togroup activities by location in the store).
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Role-based task lists are then pushed back down to store devices for
completion. Higher-level event-driven metrics are used by LOB to manage the
process through Monitor dashboards.
Role-based task lists are then pushed back down to store devices for
completion. Higher-level event-driven metrics are used by LOB to manage the
process through Monitor dashboards.
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The Future-state process manages and monitors store workflow to improve efficiency…
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Process Modeling Workshop – Future-state Model
Application suggests Fill Type to the employee based upon
inventory data and promotions/product status
information
Application suggests Fill Type to the employee based upon
inventory data and promotions/product status
information
Future-state Benefits• Employee work more efficiently, tasks take less time to
complete• Improved use of application and in-store data results in
increased profit (discontinued items rarely remain in the back room with shelf space available)
• Improved ability to detect and respond to changing conditions
Employee indicates Task complete and moves to next in priority sequence (likely at same Plan-o-gram location)
Employee indicates Task complete and moves to next in priority sequence (likely at same Plan-o-gram location)
Workflow enabled steps in red
The employee works from a prioritized Task List… The number of times that the employee makes Fill Type
decisions is minimized
The number of times that the employee makes Fill Type
decisions is minimized
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Proposed architectural approach
The architecture to implement the store task optimization system would be built on the IBM Service Oriented Architecture foundation Events trigger business processes which would perform the work list
analysis based on rules and event correlation Business process and integration capabilities in the IBM SOA would
be utilized to examine existing in store application data stores and generate events
The result would be an optimized work list presented to in-store employees, on existing devices
The system would also utilize the monitoring and analytical capabilities of the IBM SOA to track the execution of in-store work against store results
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Task lists are worked by Team members using
handheld devices which update the Task Manager
High-level architectural component diagram (draft)
Gather lists from in-store applications
Create prioritized
lists
Distribute task lists
Event DB
Monitor dashboards provide insight, allow adjustment
Correlate events, apply
rules
Update event database
Cor
pora
teS
tore In-store Applications
Update results
Create tasks list
Application
Event DB
In-store Task
Manager
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3
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Task Optimization Process
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Architectural discussion items
What would the Task Optimization process look like and what services and information would be required to execute it?
How will existing, non GUI, in-store devices be handled?
How complicated are the business rules used to generate the consolidated/prioritized task lists?
How do we manage the delivery and presentation of the Task List (XML format) to the employees in the store?
How would the collection of tasks that would be assigned to employees be managed (roles)?
How will the in-store applications be made aware of Task List completion prior to generating the next day’s list?
How are tasks overridden and accounted for by the process?
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Recommended next steps
2- to 3-day Architectural workshop to further develop the required solution architecture Address the discussion items on the previous slides
Determine requirements for In-store Task Manager
Identify reusable business services and solution components
Jointly develop a requirements document for a limited-scope pilot that would test the feasibility of the solution
Develop and Statement of Work for a go-forward project
© 2006 IBM Corporation
IBM Software Group
Customer References and Successes
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IBM helps Utility Company meet compliance deadline & save money
Solution: IBM Business Integration Modeler, WebSphere Business Integration Server, WebSphere Integration Monitor
Result: The company implemented a Business Process Nervous System in three months' time, including modeling and automation of first processes.They were able to implement medium to-complex integrations at a rate of one per week meeting the deadline specified by the Belgian government
Challenge: Maintain leadership in an increasingly competitive European energy market by implementing a Business Integration system that enabled Electrabel to change existing and implement new business processes quickly and efficiently & meet compliance guidelines.
Airbus anticipatesAirbus anticipates
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IBM helps Financial Services Provider save 11M$ per year with existing processes.
Solution: IBM Business Integration Modeler & IBM Business Integration
Result: Three Parallel Projects incorporating 15 processes, 100+ activities and 2000+ workstations resulted in 10 – 40% process improvement in the Personal and Corporate Trust departments and realized a significant reduction in processing time in the Annuities department. Achieved an overall savings of $11M.
Challenge: A competitive Financial Services market required Wachovia to implement a set of completely integrated investment banking, brokerage and asset management processes to reduce costs and increase efficiency and secondary initiative to achieve a merger with best of breed business processes..
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IBM helps Financial Services Provider save 4M$ per year with an existing process
Solution: IBM Business Integration Modeling & IBM Business Integration
Result:The company cut its labor and paper-intensive post-closing mortgage process time by an average 53 percent while achieving a 34 percent increase in efficiency and a realized estimated annual savings of $4 million.
Challenge: Principal Residential Mortgage Inc. needed to streamline operations to keep up with competition and consumer demand. They needed a way to understand how much volume the new system could handle before bottlenecks arose and where costs could be trimmed