BPM Group Assignment #07

“Study of Business Process Management Suites”

Group No. - 18

MBA-IT 2015-17

KUSUMANJALI SRIVASTAVA 15030141040

YOGESH KHETAN 15030141062

NILESH PATIL 15030141107

GANESH SWAMI 15030141089

SRASHTI RANE 15030141125

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1.Study Gartner’s Magic Quadrant for iBPMS (Intelligent BPMS):a.Indicate what requirements are critical for a BPMS to be in the Magic Quadrant and give your critique of the parameters used for selection.

Business managers and knowledge workers today face a key challenge: They are being asked to make faster and better decisions and to "do more with less" in an ever-changing business context, but cannot do so without improved visibility into their operations and environments. To meet this challenge, leading organizations are seeking to make their business operations more intelligent by integrating analytics into their processes and the applications that enable them. Gartner has identified this trend as a new usage scenario for a business process management suite (BPMS) — a scenario that Gartner calls "intelligent business operations".

To meet the needs for IBO, a BPMS must be enhanced with new capabilities. Accordingly, Gartner has evolved its definition of the business process management (BPM) market to reflect the IBO usage scenario and to introduce the next generation of BPMSs, which we identify as intelligent business process management suites (iBPMSs).

GARTNER’S Magic Quadrant Criteria:

Gartner rates vendor/product on two criteria –

Completeness of vision: Reflects the vendor innovation, whether the vendor follows or drives the market, and whether the vendor's view of how the market will develop matches Gartner's perspective.

Ability to execute: Summarize factors as the vendor’s financial stability, market responsiveness, product development, sales channels and customer base

GARTNER’S Four Quadrant: 1. Leaders are said to score higher on both criteria: the ability to

execute and completeness of vision. These are said to be typically larger, mature businesses.

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2. Challengers are said to score higher on the ability to execute and lower on the completeness of vision. Typically, larger, settled businesses with what Gartner claims to be minimal future plans for that industry.

3. Visionaries are said to score lower on the ability to execute and higher on the completeness of vision. Typically, smaller companies.

4. Niche players are said to score lower on both criteria: the ability to execute and completeness of vision. Typically, new additions to the Magic Quadrant.

Intelligent BPMS (iBPMS) :

Today, companies of all types want faster and better insight into their operations. This growing demand for operational intelligence has given rise to a new, "smarter" variety of business process management suites (BPMSs) termed as iBPMS.

An intelligent BPM suite provides the functionality needed to support more intelligent business operations, including real-time analytics, extensive complex event processing (CEP), and business activity monitoring (BAM) technologies and enhanced mobile, social and collaborative capabilities.

An iBPMS has all of the following elements : A process orchestration engine to drive the progression of work in

structured and unstructured processes or cases A model-driven composition environment for designing processes

and their supporting activities and process artifacts Content interaction management to support the progression of

work, especially cases, based on changes in the content itself (such as documents, images and audio)

Human interaction management to enable people to naturally interact with the processes they are involved in

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Connectivity to link processes to the resources they control, such as people, systems, data, event streams, goals and key performance indicators (KPIs)

Active analytics (sometimes called continuous intelligence) for monitoring activity progress, and analyzing activities and changes in and around processes

On-demand analytics to provide decision support or decision automation using predictive analytics or optimization technology

Business rule management to guide and implement process agility and ensure compliance

Management and administration to monitor and adjust the technical aspects of the iBPMS

A process component registry/repository for process component leverage and reuse

iBPMS Vendors Come From Two Main Sources There are two distinct sources of vendors for the iBPMS market:

■ The first group includes the innovators that were fast-acting pioneers in adding intelligence to the BPMS, yielding an iBPMS. These players are often referred to as pure-play vendors. They generally offer significant features that enable clients to quickly deliver intelligent process solutions. See "Case Study: Learn Some Lessons from TXU Energy's Operational Intelligence System" for an example of an intelligent process. Their products are, in general, easy to use and nicely integrated from a business development and process composition perspective.

The pure-play vendors tend to offer better visibility and collaboration and joined the social, mobile cloud bandwagon early in the emergence of IBO. They are quick on their feet and are generally the first to deliver compelling functionality. Their tight focus on the BPM software market enabled them to see the benefits of adding additional real-time analytic capabilities to BPM products before the larger vendors did, and their relatively small size allowed them to get to market quickly.

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■ The second group includes large, software infrastructure and middleware providers, also known as "stack vendors," with products aimed at the mainstream technology buyer. These providers generally serve a large base of existing clients and are software generalists that offer many different kinds of infrastructure software. BPM is just one of their concerns. They generally have rich and deep systems or application features. Their aim is to offer an array of products to their large client bases. They plan to be around for a long time and seek to handle large-scope processes, which are likely to include some deep system uses. In general, they are established, financially stable, and good at integration and complex system capabilities. They tend to be fast followers with deep pockets, and often break the lead that innovators have by buying innovators and integrating them into their offerings.

The level and speed of integration of such innovators' functionality vary by vendor. The following vendors are primarily seen as stack vendors because of their origins in the application development and application integration/ middleware markets: Cordys, IBM, Oracle, Software AG and Tibco Software. It is important for organizations to determine whether they need offerings from one of these vendor camps or the other, or both, depending on the projects that are seen on the horizon. In general, pure-play vendors are good at innovative and tightly scoped processes, but there are exceptions. Pure-play vendors also tend to provide greater business role empowerment, letting business users undertake some elements of process governance. In general, the broader the process scope is, the more appealing the stack vendors tend to be because of the need to cross applications, data sources and localized processes. Over time, this distinction and overlap may decrease to some extent, but it is a clear distinction in the iBPMS market today.

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b. Does the Magic Quadrant apply to a product or the company which has the IPR for the product?

Magi c Quadrant is applying to the company which has the IPR for the product and not apply to a product. Because Intellectual Property Rights (IPR) include patents, copyright, industrial design rights, trademarks, plant variety rights, trade dress, and in some jurisdictions trade secrets. There are also more specialized or derived varieties of sui generis exclusive rights, such as circuit design rights and supplementary protection certificates for pharmaceutical products (after expiry of a patent protecting them) and database rights.Gartner Magic Quadrants is a research methodology and visualization tool for monitoring and evaluating the progress and positions of companies in a specific, technology-based market.

Magic Quadrants research reports can be highly useful tools for investors looking to find a company that fits their needs and businesses seeking to compare competitors in their market and possibly gain the upper hand.

Instead of simply showing statistics or ranking companies in lists, Magic Quadrants uses a two-dimensional matrix to illustrate the strengths and differences between companies. The display divides competing businesses into four distinct sections, based on both completeness of vision and ability to execute it:

Niche Players: Scoring low in both completeness of vision and ability to execute, these companies may do well in a segment of the market but cannot outperform larger vendors. Usually focused on functionality or a specific region, or are new businesses.

Visionaries: Have awareness of how the market will evolve and can potentially be innovative, but may not be able to execute these visions. Normal for businesses in early markets, but visionaries in more mature markets are usually either smaller businesses trying to compete, or larger businesses trying to escape a rut.

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Challengers: Have ability to execute, but may lack strong vision. Challengers tend to be larger vendors in mature markets who do not want to disrupt their current plan. They have the ability to become leaders if their vision evolves.

Leaders: Scoring high on both completeness of vision and ability to execute, leaders tend to be large companies in mature markets, have a large customer base, and be highly visible in that market. Leaders have a large amount of pull over a specific market, and even have the ability to effect the market’s overall direction.

While it may seem as though the companies in the “leaders” category are always the best option, Gartner advises users to examine all quadrants, since businesses in every category have their own unique strengths and weaknesses that should be taken into consideration. It is also important to note that Magic Quadrants is designed to help narrow down a vendor search, not tell a customer what vendor they should choose.

Magic Quadrants can also be a useful instrument for vendors who wish to analyze their competition. Magic Quadrants gives synopses of a market’s top businesses, displaying their strengths and weaknesses. Competing companies can then use that information to improve their own business where others are weak, giving them an advantage in the market.

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2. Explain how a BPMS is different from an ERP (out of the box) software package. What selection criteria would you apply for selection of an ERP package as against those for a BPMS? How would the total lifecycle (from building a business case to selection to going live) be different with an ERP package versus with a BPMS?

The difference between Business Process Management (BPM) and

Enterprise Resource Planning (ERP) can be quite fuzzy.

BPM is a practice while ERP is one of the many technologies that can

support that practice. BPM can be achieved with or without technology

though having a Business Process Management System (BPMS) and/or an

ERP can enhance your ability to do BPM.ERP, on the other hand, can only

be achieved with technology (and some process re-engineering, no matter

how minimal).

The principle behind this is simple: Integration of information across

business functions. With ERP, the organization has access to a single

source of data by implementing and linking modules that cater to different

organizational functions. Eg HR, Procurement and so on. Some Enterprise

applications may have in-built BPM functionality, but their reach does not

typically extend beyond the application.

If you choose to implement BPM with technology, you’ll be looking at

technologies that form the BPMS Architecture: Design & Simulation tools,

Process Registry, Rules Engine, Integration Services, Data Repository, and

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Monitoring Services. You may deploy all or some of these components as

part of your BPMS Architecture, but you’re not likely to get them all from

the same vendor

Unlike the ERP Software that may come “integrated”, the components of

the BPMS Architecture are not commonly available as an integrated whole.

BPMS adopts a process-centric approach while ERP focuses on

organizational functions. They both, however, have elements of process

definition and integration.

BPMS at its core focuses on optimizing the efficiency of existing business

processes; monitoring process effectiveness, process modelling and

simulations. It can thus, be described as a process-intelligent layer that may

or may not be integrated with an organization’s ERP.

Most ERPs come with inbuilt process functionalities, which you may

decide to adopt, customize or configure to suit your operations. if you’re

looking for the flexibility that comes with changing processes, flexible

business rules management, process modelling, designing, executing and

monitoring your business processes for continuous improvement, BPMS is

the way to go. You won’t be stuck with one version of the process and you

can dynamically decide which process versions to map to which system

users.

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Though both technologies can exist independently, a combination of the

two or a combination of their components, may serve you well until both

technologies are available as one in the market.

Selection criteria for selection of an ERP package as against those for a BPMS

Structured approachThe first step in selection of a new system is to adopt a structured approach to the process. The set of practices are presented to all the stakeholders within the enterprise before the system selection process begins. Everyone needs to understand the method of gathering requirements; invitation to tender; how potential vendors will be selected; the format of demonstrations and the process for selecting the vendor. Thus, each stakeholder is aware that the decision will be made on an objective and collective basis and this will always lead to a high level of co-operation within the process.Focused demonstrationsDemonstrations by potential vendors must be relevant to the business. However, it is important to understand that there is considerable amount of preparation required by vendors to perform demonstrations that are specific to a business. Therefore it is imperative that vendors are treated equally in requests for demonstrations and it is incumbent on the company [and the objective consultant assisting the company in the selection process] to identify sufficient demonstrations that will allow a proper decision to be made but will also ensure that vendors do not opt out of the selection process due to the extent of preparation required.Objective decision process"Choosing which ERP to use is a complex decision that has significant economic consequences, thus it requires a multi-criterion approach."There are two key points to note when the major decision makers are agreeing on selection criteria that will be used in evaluating potential vendors. Firstly, the criteria and the scoring system must be agreed in advance prior to

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viewing any potential systems. The criteria must be wide-ranging and decided upon by as many objective people as possible within and external to the enterprise. In no circumstance should people with affiliations to one or more systems be allowed to advise in this regard.Full involvement by all personnelThe decision on the system must be made by all stakeholders within the enterprise. "It requires top management leadership and participation… it involves virtually every department within the company". Representatives of all users should:

Be involved in the project initiation phase where the decision making process is agreed;

Assist in the gathering of requirements;

Attend the Vendor Demonstrations;

Have a significant participation in the short-listing and final selection of a vendor.

The total lifecycle (from building a business case to selection to going live) be different with an ERP package versus with a BPMS.

ERP systems offer great benefits in being able to integrate disparate systems and applications, insight and visibility into the ERP processes is limited. Moreover, in today’s market and economy, it is vital to be able to move quickly when deciding to automate new systems for various reasons (cost, resources, competitive advantage, etc.). A Business Process Management Software Suite provides strengths in four main areas regarding business processes:

▪ Process Modeling▪ Automation▪ Management▪ Process Optimization

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An advantage that ERP systems offer is that they effectively handle Process Automation and Management, but do not require the intense coding resources and long project plans that many BPM software systems do. A BPMS like the Ultimus Suite not only provides workflow automation capabilities, but offers the ability to automate and manage business processes with little to no coding needed.

Moreover, BPM software has the ability to provide process analytics BEFORE AND AFTER the business process goes live, a true differentiator from ERP. Having the ability to “take a step back” from the day to day of your business and analyze your business processes for bottlenecks, inefficiencies, and cost control will enable you to ensure your process automation efforts provide you the return on investment (ROI) your company executives are demanding. The fact that ERP packaged systems do not require development or long-term resources to carry out a project, as they are based on best practices and allow some level of parameterization, could be an argument used in favor of BPM. This argument is hardly valid for those BPM technologies that still require extensive programming efforts, as currently technologies such as Aura Portal enable the automation of business processes without any programming. Any workflow execution code is automatically generated by the BPM engine based on the process model. Another important factor in favor of BPM is its ability to provide analysis before and after running processes because of its analytical and simulation capabilities, promoting the ability to step back into the day-to-day business and analyze problems and inefficiencies, which culminates in the actual conduct of research and an expected ROI of that type of IT initiative.

Difference between BPMS and ERP

BPMS

Focused on a process-oriented organizational structure.

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It covers every business process across the organization, in addition to ready-to-use process patterns, both functional and organizational.

It automates business processes that are interconnected and defined from end to end (cross-functional).

Characterized by agility and flexibility, with 100% adherence to the business reality of the time.

The basic components are: modeling and simulation tools, web forms editor, process and/or independent business rules system, integration tools, collaboration portals generator, a workflow manager (BPMS Engine), Content Management, Online Commerce, among others.

ERP

Oriented to functional organizational structures Some workflows are absorbed in the application at a functional level. It automates highly structured and predictable transactions and

integrates business-specific functionalities. It is more inflexible, it does not allow changes in the business logic

without going through the traditional development. Divided into basic modules: Accounting/Finance, Commercial

Management, Planning/Production Management, Stock Management, among others.

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