IBM - Business Process Management From Strategy to Reality: … · 2009-08-27 · IBM Global...
Transcript of IBM - Business Process Management From Strategy to Reality: … · 2009-08-27 · IBM Global...
IBM Global Business Services
Business Process Management g
From Strategy to Reality:Pulling tactical levers to realisePulling tactical levers to realise your business strategy
IBM Insight ForumAugust, 2009
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A ‘level-set’ view of BPM will help us to understand the context and business value of the approach
Business Process ManagementBusiness Process Management- Actively management- Continuous improvement focus
M ki f li it- Making process performance explicit
Processes aren’t documented
Bottlenecks prevent efficiency
Limited visibility into performance
Complex hand-offs crossmultiple processes
Process change is cumbersome
KPIs not defined
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BPM encompasses many things, such as methods and systems for process modelling, workflow, or performance management…..
“A discipline that optimizes the performance of end to end business processesA discipline that optimizes the performance of end-to-end business processes (interdepartmental functions, partners, suppliers and service providers)”
Business Process Business Activity M it i (BAM)
Business Process E ti (BPE)
Gartner 2009
Analysis (BPA) Monitoring (BAM)Execution (BPE)
Automate and orchestrate processes
across applications
Design and simulate business processes
Track performance, processes and operational
activity using keyacross applications and systems
activity using key performance indicators
Pre-built industry accelerators
Accelerate delivery of composite applications using process, services, and data assets
Processgovernance
Assess
Opt
ne
Envision
Established Methods, Standards and Governance accelerators
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Execute
timize De
fine
Improve quality & agility, reduce risk, and manage change better
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The three core BPM components can each deliver business value on their own, and aggregated value when used together
Business ActivityBusiness ProcessBusiness Process
Business user owned & led Business & IT collaboration Business user owned & led
Business Activity Monitoring (BAM)
Business Process Execution (BPE)
Business ProcessAnalysis (BPA)
Visualise, analyse, quantify & improve business operations,
Support alternate business
Leverage BPA models
Link back-end IT system
Execute automated processes
measures
Leverage Key Performance measuresSupport alternate business
views
Identify relationships
Single point of truth
Execute automated processes
Capture measures for Monitor
Administer automated process ti l
Graphical dash-board
Alerts triggered from measures
‘Actual’ operational metrics dataSingle point of truth exceptions, user roles, permissions and access rights
Accelerate IT deployment viabl t
Actual operational metrics data for continuous improvement
re-useable process assets
Start here to maximise business value and
Start here to automate process execution
Start here to automate process insight
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business value and control of improvements
process execution ASAP
process insight ASAP
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Why should organisations pay attention to process?
Link strategic intention andLink strategic intention and operational effectivenessLink organisation components –
l d t h l t ore
+
75thpeople, process and technology – to create performing organisationsDefine the organisation structure
+20%+8%
actic
es S
co75th
Percentile and above
needed to meet the organisation’s goalsLeverage synergy between process +2%0%ge
men
t Pra
25th
Percentile design and organisation change management with IT development
2%0%
Intensity of IT Development
Man
ag
+
and below
Intensity of IT Development +-75th
Percentile and above
25th
Percentile and below
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Source: Dorgan, S.J and J. J. Dowdy (2004), “When IT lifts productivity”, McKinsey Quarterly, No. 4.
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A staged BPM life-cycle provides the framework for business driven BPM
The BPM life cycle needs to be deployed with proven methods and standardsThe BPM life-cycle needs to be deployed with proven methods and standards for BPM development & governance
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Case Study: Lands NSW – Industry wide change
State public sector land management authorityState public sector land management authority. Manages registry of land title information for the state covering 800,642 kms sq, 800,000 land transactions each yearabout 10,000 plans and 40,000 new titles.Operating the Torrens system since 1863.Operating the Torrens system since 1863.The industry includes:- the surveyor community,
land developers- land developers, - solicitors, - municipal government - intermediary organisations.
28% of dealings are lodged electronically.
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Statistical data based on the Lands NSW 07/08 Annual Report
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The challenge – how to bring a 19th century industry into the 21st
Technology advances allow cadastral information to be managed entirelyTechnology advances allow cadastral information to be managed entirely electronically. - Cadastral xml
i f t t d th t h l t ti- infrastructure and the technology automationThe industry structure is still based on the paradigms of the late 1800’s..The processes and expectations remain in the 20th century, the expectations of the public are 21st
centuryEntrenched interests have to be brought into the fold of the change
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The possibility of the technology outstrips the expectations of the participants by a country mile
Cadastral databases have been able manage the land data for some timeCadastral xml and supporting applications enable transfer and management of data objects and the automation of a number of human tasksLong transfer times from regional centres unless electronic transfer isLong transfer times from regional centres unless electronic transfer is used –requires high standard broadband networksHuman examination lengthy and is subject to error. Automated examination is fast immediate and accurateAutomated examination is fast, immediate and accurate
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In order to realise the potential of the technology, internal Lands NSW processes had to be updated to account for the technology
Approach Proof of Concept projectApproach - Proof of Concept project tied with an enablement - process mapping training using
WebSphere Business ModelerWebSphere Business Modeler- Principles of Process re-design and
Lean SigmaProcess Analytics- Process Analytics
- Joint proof of concept projectLinked BPI enablement with graduate d l tdevelopment Processes already linked to a technology development
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Two processes were re-designed – this example demonstrates the power of linking process and technology
R l d t D ti d C t
$30.0060
Relodgment - Duration and CostsResource Duration Resource Cost
$20.00
$25.00
40
50
($ p
er p
lan)
on (m
inut
es)
$10.00
$15.00
20
30
Res
ourc
e C
ost
esou
rce
Dur
atio
-18%
Current State Future State -Relocate
Future State -SPAC
Future State -SPAC and
e-Relodge 2009
e-Relodge 2013
$0.00
$5.00
0
10 RRe
-58%
-71%-88% 100%
EmailResource Duration 51 42 21 15 6 0Resource Cost $29.15 $26.08 $12.89 $9.06 $3.23 0
Relodgment Processes
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NB: Does not include wait time
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The results on the Lands NSW example are dramatic but are achievable in other operational environments
NZ Public Sector ClientNZ Public Sector ClientSAMPLE PROCESSES, INCLUDING COMBINED DATA
COSTS[D ll ]
ELAPSED DURATION [hrs]
RESOURCE DURATION [hrs]
CASES[ it ][Dollars] DURATION [hrs] DURATION [hrs] [units]
CURRENT STATE $358.74 2,088.62 12.53 3272FUTURE STATE $189.37 270.38 6.22 55% VARIANCE - 47.21% - 87.05% - 50.36% -98.32%
Australian Agribusiness Client- Conservatively, $9 million annually from a sub $100,000 engagement
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BPM is the mechanism by which the strategy of the business is effected in the operational environment
Enabling your business to be process centric bl t t t b t i t tienables your strategy to be put into action
Integrating technology and process makes the machine work for youIntegrating the whole WebSphere suite significantly enables your capacity to manage your business process continually and be y p yresponsive to change
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