IBM Process Improvement Workshop (PIW) Overview Quick Reference

1. IBM Process Improvement Workshop (PIW)Overview Quick Reference

2. A 2-4 day educational and problem-solving work sessionduring which wedocument 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 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

3. WebSphere Process Improvement Workshop (PIW)

4. 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 • 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 • 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) • 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 Highlights IBM WebSphere SOA and BPMEnabling Six Sigma Six Sigma Improvement Method

5. EXAMPLE Process Modeling Workshop(Based on a real engagement with a Retail customer on In-Store Workflow)

6. 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

7. Process Modeling Workshop Activities • Provide WebSphere capabilities overview • Business Modeler and Monitor capabilities • WebSphere Process Server and Integration Developer capabilities • Review the high-level, current-state process and environment • Project goals and objectives, potential benefits • In-store activities and applications • Develop the current-state process model • Roles and resources, inputs/outputs • Activities, time estimates • Decisions including Fill need and Fill Types

8. Process Modeling Workshop Activities (continued) • 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 • 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 • Discuss findings and agree on next steps

9. Process Modeling Workshop Current-state Model (at the store) The current in-store process leaves decision-making to the employee with limited data… Employee uses Plan-o-gram to move from aisle to aisle where they replace Header Labels and determine shelf fill requirements for each product. An employee typically works one type of task at a time, cycling repeatedly through the store 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. 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

10. 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

11. 3 1 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 to group activities by location in the store). In-store applications generate individual task lists which are then passed to the corporate workflow management solution 4 2 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. 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 Modeling Workshop Future-state Macro Model The Future-state process manages and monitors store workflow to improve efficiency…

12. Process Modeling Workshop – Future-state Model The number of times that the employee makes Fill Type decisions is minimized The employee works from a prioritized Task List… Workflow enabled steps inred Employee indicates Task complete and moves to next in priority sequence (likely at same Plan-o-gram location) 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 Application suggests Fill Type to the employee based upon inventory data and promotions/product status information

13. 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

14. 3 2 Create tasks list 4 Update results 5 1 High-level architectural component diagram (draft) Monitor dashboards provide insight, allow adjustment Event DB Task Optimization Process Create prioritized lists Distribute task lists Correlate events, apply rules Update event database Gather lists from in-store applications Corporate In-store Applications In-store Task Manager Store Application Task lists are worked by Team members using handheld devices which update the Task Manager Event DB

15. 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?

16. 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

17. Customer References and Successes

18. IBM helps Utility Company meet compliance deadline & save money 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. 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

19. IBM helps Financial Services Provider save 11M$ per year with existing processes. 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. 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.

20. IBM helps Financial Services Provider save 4M$ per year with an existing process 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 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.