The Future of BPM: Tips, Trends & Customer Pain Points
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Transcript of The Future of BPM: Tips, Trends & Customer Pain Points
THE FUTURE OF BPM:
TIPS, TRENDS &
CUSTOMER PAIN POINTS
Steve HambyMac McConnellCTO, Orbis Technologies VP of Marketing, BonitaSoft
28/09/2012 1
Steve Hamby Mac McConnell
28/09/2012 2
WELCOME: ABOUT STEVE & MAC
Steve has 25 years of experience in the IT
industry, concentrating on XML, SOA, IT
consulting, data architecture, and data
management. Steve has authored
numerous articles on information
technologies, including his regular
technology blog on The Huffington Post.
Steve is an awardee of the 2012
InfoWorld Technology Leadership Award.
Mac McConnell is the VP of Marketing at
BonitaSoft and is responsible for all
aspects of global marketing, including
brand
awareness, communications, demand and
lead generation, and go to market. He
comes to BonitaSoft from BlueBird
Strategies, a San Francisco-based lead
generation advisory firm.
WEBINAR OVERVIEW
• Business Process and BPM Terminology
• BPM Lifecycle
• BPM Historical Perspective
• BPM Interest Trend
• BPM Market Overview
• BPM Standards
• BPM Drivers for Adoption
• BPMS Common Components
• BPMS Pain Points Addressed
• BPMS Obstacles to Avoid
• BPMS Deployment Issues
• BPM Trends and Future
28/09/2012 3
BUSINESS PROCESS AND BPM
• A business process is [or should be] a collection [serial, parallel,
network, etc.] of related, structured, value-added activities,
performed by relevant roles or collaborators, which purposefully
produce specific services or products and/or satisfy particular
business objectives
• Business processes are often visualized as a sequence of activities
with interleaving decision points or as a sequence of activities with
relevance rules based on the data in the process
• Composed of human and technological factors
• BPM is a holistic management approach focused on aligning
organizational objectives and other aspects to
continuouslyimprove business processes; i.e., a “process
improvement” process
28/09/2012 4
Understanding the Terminology
Source: Derived from multiple sources including Wikipedia
BPM LIFECYCLE
28/09/2012 5
The “Continuous Process Improvement” Process
Identify and describe existing
processes and define "to-be"
processes:
• Process flow and attributes
• Alerts and notifications
• Escalations
• SOPs
• SLAs
• Task hand-offs
Perform “what-if” analysis on
combinations of variables to
determine how the process
might operate under different
circumstancesTracking individual
processes:
Process state –
Performance statistics –
Identify potential
or actual
bottlenecks
Identify potential
opportunities for
cost savings or
improvements
BPM HISTORICAL PERSPECTIVE
• BPM has Multiple Use Cases
– More than just human workflow automation
• BPM Supports Process Design as it Exists
• BPM Integrates Business Requirements in Enterprise IT Ecosystem
– Leverages IT Capabilities and Goodness
• Single BPMN Standard Promotes Interoperability
28/09/2012 6
Hasn‟t This Been Done Before?
BPM INTEREST TREND
28/09/2012 7
How HOT is BPM?
Search trend for “BPM”
Search trend for
“business process”
News trend for “BPM”
Search trend for “BPM”
Search trend for “SOA”
Search trend for “Cloud Computing”
Source: Google Trends, SEP 2012
BPM MARKET OVERVIEW
• Worldwide spending on BPMS is expected to reach $2.6 billion, up 6.9%
compared to 2011 (Source: Gartner)
• Global Industry Analysts research suggests that the global BPM market will
reach $5.3 billion by 2017
28/09/2012 8
Growing Market With Mature Products
BPM Deployments by Region
North America
South America
Europe
Asia & Pacific
Africa & Middle East
BPM Deployments By Industry
Manufacturing
Government
Utilities
Financial Services
Technology
Other
Source: Transformation and Innovation State of the Market Report
BPM STANDARDS
• Business Process Model and Notation (BPMN):
– Provides model to describe internal business processes, collaborations, and transactions
in a graphical notation
– Promotes communication of processes in a standard format
– Managed by Object Management Group (OMG)
– Can be represented as XML Metadata Interchange (XMI)
• Other Standards:
– Business Process Execution Language (BPEL): Organization for the Advancement of
Structured Information Standards (OASIS) standard executable language for specifying
actions within business processes with web services
– Web Services Flow Language (WSFL): An XML language for the description of Web
Services compositions as part of a business process
– Business Process Markup Language (BPML): BPM Initiative (BPMI) standard language
for modeling business processes
28/09/2012 9
Promoting Interoperability
WHY BPM
• BPM promotes a collaboration to rapidly automate processes
– Business users design processes with IT … business “owns” the process
– IT facilitates with deployment infrastructure, system integration, and
enterprise IT governance
• Getting IT and Business Users to Collaborate on Process
Optimization Fosters “Business Agility”
– 99% of the CIOs with a mandate to transform their business are
considering BPM to provide better internal collaborative processes to
assist in that transformation (Source: 2011 IBM CIO Survey)
28/09/2012 10
Drivers for Adoption: Aligning IT to Business Needs
By 2020, Empowered Business Technology will be commonplace in organizations
Source: Forrester Research
WHY BPM
• Minimizing waste within operations
• Volatile marketplace continues to drive cost-cutting measures
– Global marketplace demands competitive price and quality
• BPM helps organizations reduce costs by creating smarter processes
that increase operational efficiencies
– Automating manual processes increases productivity
– Reducing cycle times for key processes reduces costs
• Customer satisfaction
– Optimize partner network processes
– Regulatory compliance reporting automation
28/09/2012 11
Drivers for Adoption: Operational Efficiency
WHY BPM
• Establish innovation process to drive innovation from analysis of
strategic goals to idea generation to product release to measuring
success and more
– Collaboration is key
» Innovation team
» Operations
» Across traditional business silos
– BPM simulation can be used to select new ideas
– Monitoring helps optimize the innovation process
• Create new processes to drive innovation
– New supply chain process
– Enhancing customer-facing processes (e.g., claims process)
28/09/2012 12
Drivers for Adoption: Innovation
WHY BPM
28/09/2012 13
Drivers for Adoption
Busin
ess D
river
Source: Derived from BPTrends Research Data
0% 10% 20% 30% 40% 50% 60% 70%
Manage IT resources
Other
Regulatory
Customer Service
Innovation
Organizational Agility
Operational Efficiency
2011
2009
2007
2005
BPM SERVER / SUITE (BPMS)
• Process Modeling Interface
• Process Execution Engine
• Development Tools
• Monitoring Components (Business Activity Monitoring [BAM])
• Optimization Services
• System Administration
• Usability, Documentation, and Technical Support
• Collaboration Services
• Mobile Capabilities
• Cloud Deployment
• Social BPM Services
• Preconfigured Industry Modules
• Case Management
• Process Mining and BI tools
28/09/2012 14
Common Capabilities
BPM SERVER / SUITE (BPMS)
28/09/2012 15
Addressing User Pain Points
0% 5% 10% 15% 20% 25% 30%
Visualize, Simulate, and Troubleshoot Business Processes
Analytical Reporting
Automation of SOPs
Change Business Rules and Processes Without Impacting …
Enforce Best Practices and Required Procedures
Ensure Accurate and Consistent Data Entry or Document …
Operations and Personnel Performance
Standardize Process Models
Top Pain Point Addressed in BPM Deployments
% Selected
Source: Transformation and Innovation State of the Market Report
BPM SERVER / SUITE (BPMS)
• “It's not really implementing the software that's the problem … you're
changing the way people work, and [need to ensure] that two years from
now, they don't go back to their old habits while also trying to circumvent
[what they were told to change],"Source: Gartner
• Five barriers to BPM success (Source: Forrester):
– Unable to demonstrate the value delivered
– Starting BPM without understanding BPM
– Rely on facts, not perceptions
– Don't forget ROI
– Measuring rather than improving
• Implementing a BPMS without analyzing requirements for BPM use cases
• Forgetting human factors with “blind” focus on process optimization
• Not establishing a BPM Maturity Model
28/09/2012 16
Obstacles to Avoid
BPM SERVER / SUITE (BPMS)
28/09/2012 17
Deployment Issues
0% 10% 20% 30% 40% 50%
Underestimated Processor Organizational Issues
Training
Politics
Excessive Scope Creep
Top BPM Deployment Issues
% Selected
Source: MarketIQ
BPM TRENDS AND FUTURE
• Continued Growth in BPM Market
– $8 Billion Global Market by 2020
• Mergers and Acquisitions … Market Consolidation and Market Integration
– Open Text‟s ~$440 million acquisitions of Metastorm and Global 360
– IBM Acquisition of Lombardi
• Increased Social BPM Offerings
• BPM & Cloud Growth
– Automating Cloud Governance Processes
– PaaS / SaaS / AaaS BPM Offerings
• Expansion of Mobile Offerings
• Intersection with Web 3.0 (LinkedData, etc.)
• Increased Use of BPM to Empower Business Technology
28/09/2012 18
The Crystal Ball Perspective
SUMMARY
• BPM is a HOT Market
– Market Growth Expected to Double in 5 Years and Continue to Grow for Foreseeable
Future
• BPM:
– Enables „Business Agility‟
– Drives Operational Efficiencies
– Promotes Innovation
• BPM Servers / Suites Provide Key Capabilities to Enable BPM
• Many Successful Implementations Exist to Leverage Best Practices
– Several obstacles and pitfalls to avoid have been documented
• BPM is a HOT Market
28/09/2012 19
YOUR QUESTIONS ANSWERED
28/09/2012 20
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