1 Richard Soley OMG Negocios Codelco

7/28/2019 1 Richard Soley OMG Negocios Codelco

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Business Process Redesign:Taming the Information Explosion

Richard Mark Soley, Ph.D.Chairman and CEO

Object Management Group, Inc.

Photo courtesy of NASA Goddard Photo and Video 2012 Lundberg Media & Object Management Group


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We live in a complex,

volatile world

Photo courtesy of NASA Goddard Photo and Video 2011 Lundberg Media


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you arehere



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2011 Lundberg Media

digital explosion


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2009: 800,000 petabytes2020: 35 zettabytes

2011 Lundberg Media


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global connections,global complexity

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untetheredempowered

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2011 Lundberg Media

escalating

customerdemand


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So What is ITs Mission?

IT-led teams have consistentlyfound new ways to streamlineenterprise business processes,vastly improving operating

efficiency and reducing costs.

Corporate leaders, however, areraising the bar: they expect ITscore mission to expand from

cost-cutting to enabling revenuegeneration within a short periodof time.

EIU, December 2006


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According to recent CIO pollsfrom research firm Gartner Inc.,50% of CIOs surveyed said theynow have duties outside of coretechnology, such as helping tocraft corporate strategy .

Wall Street Journal, 20 February 2007


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Three Stories Secretary of US Agency to CIO: Fix my BlackBerry. What is the proper role of the CIO? Are we just fixing computers?

CEO of major computer hardware firm to CIO: CIO means career is over , didnt you know?

Is the CIO part of the team or just overhead?

CIO of a large Defense IT consulting firm, complainingabout CIO-focused events: why is every discussionabout business alignment?

Do other departments have trouble aligning?


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Observation:

Colgate-Palmolive no longer hasan electricity department

Google doesnt have an ITdepartment

Are you the electricity department?


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IT Knows the Enterprise

Nobody knows the wholecompany like the CIO (AndrMendes, Special Olympics)

Precise descriptions of businessprocesses are a prerequisite tounderstanding those processes.

We understand business processoptimization: streamliningprocesses, leaning processes,greening processes


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IT IS the Enterprise

Business should bedoing enterprisearchitecture, but they

wont do it so we haveto do it for them.

John Zachman


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Opportunities, Challenges,

Expectations Oh My!1. Integrated, world-class services2. Accelerated implementation of the new

3. Expanded roles & responsibilities4. Global platform

5. Culture change

6. Transform business processes7. Reduce complexity

8. Increase agility

9. Repeatable, sustainable2011 Lundberg Media


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Big Trends: Globalization


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Big Trends: Connectedness


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Big Trends: Digital Value Chains


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Big Trends: Continuous Innovation


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Big Trends: Continuous Change

"If you don't like change, you're going to like irrelevance even less.

- General Eric Shinseki, Chief of Staff, US Army.


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Big Trends: Big Problems

=

Complexity


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The CIO Mission

That Embraces: And Manages:

Create an Environment for:


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Build New CapabilitiesBe More Responsive

CustomizeBe OpenMake Business Agile

Think StrategicallyBusiness Unit Goals

Cut CostsBe More Efficient

StandardizeBe SecureMake IT Predictable

Execute FlawlesslyEnterprise Goals

The CIOs Dilemma

2011 Lundberg Media


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"Being highly responsive to our businesspartners and customers needs andcreating standardizedprocesses and technologyplatforms can seem likeconflicting goals, butdoing BOTH is key to

maximizing value . Stuart McGuigan, CIO,CVS Caremark

2011 Lundberg Media


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57% of executivessay innovation and costreduction are equallyimportant to their companys ability toachieve future growth

Source: Accenture survey of 630 U.S. and U.K.executives, Nov. 2009

Innovation & Cost Reduction

Both Key To Future Growth


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IT savvy firms are

20% more profitablethan their competitors

-MIT Center for Information Systems Research

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does IT matter?How

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information

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Please rate how important each of the following information strategies is to your organizationsgrowth over the next 1 3 years. Please rate how well your organization is currently doing each.

Performance Gap

Source: Unlocking the Value of the Information Economy, a global survey of 1,375 executives conducted by Harvard BusinessReview Analytic Services and sponsored by Symantec 2011 Lundberg Media


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Closing the Performance GapWhat are the three most important things your organization can do to close the gap fromwhere you are today and where you want to be to make better use of information? (Selectup to three)

31Source: Unlocking the Value of the Information Economy, a global survey of 1,375 executives conducted by Harvard BusinessReview Analytic Services and sponsored by Symantec 2011 Lundberg Media


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Barriers to Leveraging InformationWhich of the following are barriers to your organization's ability to use information to growyour business? (Select all that apply)

Source: Unlocking the Value of the Information Economy, a global survey of 1,375 executives conducted by Harvard BusinessReview Analytic Services and sponsored by Symantec 2011 Lundberg Media


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We can do anything youwant; we just cant doeverything you want.

-Healthcare CIO

2011 Lundberg Media


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IT and business

view the worldthroughdifferent lenses,speak differentlanguages

2011 Lundberg Media


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Standards are important:

Example: Great Baltimore Fire


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Integration is Hard

Executive decisions, mergers & acquisitions have a way of surprising us


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One Standard?

And the cost of adaptation must be low.

Never let the engineers bring out solution N+1


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OMGs Mission

Develop an architecture, using appropriatetechnology, for modeling & distributedapplication integration, guaranteeing:

reusability of components interoperability & portability basis in commercially available software

Specifications freely available Implementations exist Member-controlled not-for-profit


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Who Are OMG?AdaptiveAtego

Boeing

BP Trends

CA Technologies

Citigroup

Cognizant

CSC

EADS

Energistics

FICOFirestar Software

Fujitsu

HCL

Hewlett Packard

Hitachi

HSBC

IBM

Japan Biological

Lockheed Martin

MicrosoftMITRE

National Archives

NEC

NIST

No Magic

Nokia

NTT DoCoMo

Northrop Grumman

OASIS

OISOracle

PrismTech

Real-Time Innov.

SAP

TCS

Tethers End

THALES

Unisys

W3C


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OMGs Focus

Three key infrastructure standards foci: Modeling (including Business Modeling) Middleware Real-time & other specialized systems

More than 20 vertical market foci: Healthcare Financial services

Robotics

Etc.

Focused working groups Business Architecture

Cloud Computing


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OMG & Modeling

Best known for key standards in modelinglanguages: UML (broad software & systems)

SysML (systems engineering) SoaML (service-oriented architectures) BPMN (business processes) CWM (data warehouses) MOF (modeling languages) UPDM (enterprise architectures)


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Business Modeling Isnt Hard

1. Receive the order

2. If accepted, fill the order

3. Ship it and send the invoice

4. Close out the order


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Why is that Important?

A permanent specification for the business process,whether its taking an order or digging ore

A process specification that can be moved fromperson to person, unit to unit, company to companyand outsourced if necessary

A process that can be metered, evaluated, tuned andupdated (a learning organization)

A process that can be reused within the company, orsold as an outsourced service (think Amazon WebServices) an opportunity for new revenue

A process can be redesigned as necessary to meet

new needs, adding value throughout the company


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Measuring BPM Maturity: BPMM

Level 1: Initial performed in inconsistent sometimes ad hoc ways

Level 2: Managed stabilizes the work within local work units in a repeatable

way Level 3: Standardized common, standard processes are synthesized

Level 4: Predictable capabilities enabled by standard processes, performance is

managed statistically Level 5: Innovating

proactive and opportunistic improvement actions seekinnovations; between the organizations current capabilityand the capability required to achieve its business

objectives


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OMGs Breadth of Standards

Besides key modeling, distributed computing& realtime/embedded standards, OMGdevelops standards in

Healthcare Financial Services Telecommunications

Government Military Logistics Manufacturing

Robotics Systems Engineering Military Comms

Smart Grid Automotive/Consumer Device Safety

these are shared, industry -specific standard business processes!


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Some Examples Cloud computing

Cofounded cloudstandards.org; focused on portable deployment tosupport many business models

Enterprise Architecture DoDAF/MODAF architecture frameworks Languages for interoperability

Military systems Both communications and C4I command/control

Civil Government Electronic records management

Skills management Telecommunications, Robotics, Healthcare, Manufacturing,

etc. Software Quality


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OMG is.

23+ years of adopted, implemented, worldwidestandards with strong liaisons to ISO and otherstandards organizations

Vertical-market focus in government, militarycomms, healthcare, finance, manufacturing, lifesciences,

Community of cloud computing adopters willing toshare experiences

Software quality, model-driven integration,certification, support for training, books


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Standards and BPM

Thats just two of a dozen standards formapping, understanding, and redesigningbusiness processes

The result is measurable, repeatable,transferable, and reusable processes

The hard part is figuring out the as -is andthe to -be worlds thats process mining

But we understanding mining dont we?


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More Steps for Companies

Recognize the value of understanding, capturing,defining and measuring your processes

Understand which certifications are critical to yourneeds re enterprise architecture and BPM

Consider corporate ability to take advantage of BPMinnovation (BPMM maturity model)

Why are so many Hitachi engineers certified in the

OCUP certification? What are so many IDS Scheer employees certifiedwith OCEB?


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information

simplicityspeed

convergence

BPM is the key to agilityBPM knowledge is the key


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Richard Mark Soley, Ph.D.www.omg.org

[email protected]

responsive, sustainable, secureBPM is the key to agility

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