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Responsive Process Management The next generation of BPM. Dr Giles Nelson – Deputy Chief Technology Officer 9 November 2011. Business Striving for Responsiveness. Source:. mail express fax e-mail Document transfer.
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Responsive Process ManagementThe next generation of BPM Dr Giles Nelson – Deputy Chief Technology Officer9 November 2011
Business Striving for Responsiveness Source: mail express fax e-mail Document transfer Algorithmic trading 100 ms 20 ms 20 min 30 sec Airline operations Responsiveness is the key to surviving the pace of competition 8 hr 10 sec Call center inquiries Track financial position 1 day 5 min 1 day 15 min Supply chain updates 3 days 1 min Phone activation 1 week 0.5 hour Refresh data warehouse 5 days 2 hrs. Trade settlement 4 weeks 1 day Build-to-order PC Typical Business SLAs: weeks days hours minutes seconds
Business Process Management (BPM)Provides a Powerful & Agile Platform • Rapid modeling of human & system interactions • Automatic visibility • Agility
Emergence of a New Category IDC: Business Navigation Systems Gartner: Intelligent Business Operations
Gartner evolution of BPM Gartner – Roy Schulte & Janelle Hill “Intelligent Business Operations” New Gartner product category for 2012 – “Intelligent BPMS”
What Makes Business Operations Intelligent?According to Gartner… • Explicit, formal attention to business process design that demonstrates BPM • Situation awareness mechanisms based on recent events • Embedded/inline analytics via or other near real-time processing • Software support for intelligent responses such as a rules/orchestration engine
The Responsive Business Prescription Continuous Business Visibility Senseand Respond to Opportunities & Threats Business Process Improvement Continuously improve your business’ Responsiveness
RPM: the Concept See and anticipate much more, as it is happening Provides far more awareness of current conditions than ever before possible Coordinate effective response to key conditions Adjusts running business activities to respond efficiently and at the most effective time Easily modify both the conditions recognized and the way the system responds System upgrade cycles measured in days/weeks, not months/years “Systems that respond and evolve to the business environment”
Responsive Process Management Real-time Business Visibility & Analytics Immediate Sense-and-Respond Continuous Process Improvement Business Transaction Management (BTM) Transactions Business Event Processing (BEP) Events Business Process Management (BPM) Processes
Warehouse Status SAP Shipping SAP Oracle Siebel Product catalog Logistics ERP CRM
Real-time Visibility Warehouse Status SAP Shipping SAP Oracle Siebel Product catalog Logistics ERP CRM
Mapping Application-driven Transactions to Processes Warehouse Status SAP Shipping SAP Oracle Siebel Product catalog Logistics ERP CRM
Sense-and-Respond Warehouse Status SAP Shipping SAP Oracle Siebel Product catalog Logistics ERP CRM
Sense-and-Respond Warehouse Status SAP Shipping SAP Oracle Siebel Product catalog Logistics ERP CRM
Continuous Process Improvement Warehouse Status SAP Shipping SAP Oracle Siebel Product catalog Logistics ERP CRM
Event processing • Data goes into the database • Analyzed after it is stored • Events go through • Analyzed as they happen
What is event processing? Event Processing is the ability to sense and respond to changing conditions in order to act on business events as they happen. Complex Event Processing (CEP)is the de-facto accepted term
Ways of dealing with events • Event processing models: • Time- and location-based(temporal) windows • Within, near, etc. based in real-time context • Aggregation • Accumulation of values or quantity • Relationships • Event A caused event B to happen
Processes + Events = Responsive Processes Event Pattern Processes Event Pattern Event Pattern Event Pattern Event Pattern
Business Analytics – Blending Historical and Live Visualization and Drilldown • Real-time and historical visual analytics • Drill down into root cause • Discover business patterns and start looking for them live
“Solution Accelerators”: Packaged Apps Your Way Interactive Dashboards Business Users: Adjust parameters & customize interactions Alerts Solution Accelerator Business Processes Event-Driven Rules Business Analysts/IT: Evolve app model Analytics Business Rules Interceptors Adapters IT: Customize/extend
Progress Industry Solution Accelerators Solution Accelerators Capital Markets Communications & Media Banking Supply Chain Solution Foundations Progress Responsive Business Integration
Anatomy of the Progress Control Tower Progress | Control Tower Business Visibility Business Control Collaboration Mobile Support Flexible & Tailorable UI Visual Analytics Process Modeling Process Simulation
Business Visibility & Control • Richly interactive real-time displays • Application specific views • Transactional flow maps • Process heat-maps • Tasks & Alerts • Giving business users the necessary information and means of control at the right level of detail regardless underlying systems
Interactive Business Analytics • Simple, fast and intuitive interactive, visual analysis • Access any data source across the enterprise • Most appropriate means of presenting business data • Elegant, clear, interactive, visualizations
Collaborative Process Modeling • Analysts can quickly define processes without IT involvement • Collaborative “white-boarding” support to do this cooperatively • Publish your models for automation • All in the context of the Control Tower
Process Simulation • Easy to use Process Simulation tooling • Quickly define tests and investigate the results • Allows rapid improvement of business processes prior to IT involvement • Reduces time taken to deliver accurate models
Mobile Support • Quickly and easily access critical business data from any location • Interactive & fully configurable
With 38m subscribers, the 3rd largest mobile phone operator in Europe
Categorizing the challenges Market saturation Improve customer loyalty Reduce customer churn Intense competition Improve SLA performance Reduce product rollout time Increasing complexity Improve revenue retention Reduce transaction fallout
Acquisition cost Retain Attract
Turkcell goal Reducing churn & improving customer loyalty by creating “right-sell” opportunities
Customer engagement Loc Call SMS Turkcell RPM Call behaviour Analysis Respond Send
Maximize Profit - Revenue Assurance: 3Italia – a Communications Service Provider BSS Billing System Core Network Services Pain:Up to $1m per day lost through systems too slow to detect lack of credit on pre-paid cards Solution:Real-time visibility across multimedia services and prevention of revenue loss for 7 million wireless subscribers UMMS Voice/Video Network Layer Progress RPM Data Content
Building apps using RPM: SEB Bank • Monitoring ATMs, credit cards, direct debits and bank transfers • Reduced the time to process a suspected credit card abuse from 5 hours down to seconds
SEB Bank: who benefits? • Head of Fraud • Pain: Identification of card fraud takes hours • Impact of no action:Lost revenue; reputation suffers • RPM Value: Protected revenue and enhanced customer service.
European Bank – Monitoring Sales Performance • Sales Process Platform • Loan, credit-card and mortgage applications • Gives continuous view of sales performance versus objectives • Staff moved to reflect priorities
How the FSA and Turquoise Make Progress:Preventing Market Abuse Pain: Market abuse Solution: Observing and responding to fraudulent patterns in real time Value: Prevented $ millions inloss from rogue traders
Maximize Profit - Responsive Logistics: Royal Dirkzwager – a Port Management Company Pain:Optimization of shipping movements in port to obtain greater efficiencies from port operations and to reduce fuel costs Solution:Monitor global shipping movements, correlated to port berth availability
US provider of healthcare products Serves 2M patients annually 500 branches 13,000 employees
Apria’s business Medical equipment Home healthcare
Apria’s challenges Downward pressure on prices Reduce costs and increase efficiency Order to cash process too long Improve customer serviceDecrease errors Low staff efficiency Provide better visibility into operations
More responsiveness • Real-time operational visibility • Orders and staff can be reassigned easily • Better reaction to supply chain problems – weather/strikes etc. 20-40% savings in order to cash process Better customer satisfaction
The Responsive Business Prescription Continuous Business Visibility Senseand Respond to Opportunities & Threats Business Process Improvement Continuously improve your business’ Responsiveness