IBM Business Process Management Overview and Demonstration of IBM BPM In Action!

1. Process Optimizer Process Portal Bill.Hahn@us.ibm.comSr. Consulting BPM Solution ArchitectOpen Group Master Certified SW IT SpecialistGoto > http://IBMBPMDemos.comfor more information and resources IBM Business Process ManagementOverview and Demonstration of IBM BPM In Action! Process CenterShared Model Process Designer http://BlueworksLive.com The simplest way to get started with BPMProcess Discovery“Modeling for Documentation” The quickest way to deliver robust process applicationsProcess Implementation“Modeling for Execution”

2. Business Process Inefficiencies Represent $500B+ Opportunity Fortune 500 Companies: $488B Lostin Process Inefficiencies Source: Tech CEO Council Report Oct 2010: “BPM improvements can be expected to yield savings of up to 5% of sales”; CNN Money U.S. Fortune 500 Revenues, May 2010 Federal Government: $450B - $1.3TinProcess Inefficiency Costs Source: McKinsey & Company The Case for Government Reform 2009, “5 to 15% improvement in efficiency of Federal government operations could generate $450B-$1.3T in savings.” Tech CEO Council Report Oct 2010. In a recent InformationWeek CIO survey, Process Improvement was the #1 priority for CIOs (56% of respondents): “Make business processes more efficient” was the top issue for respondents, even ahead of “Lower business costs” and “Improve customer service”. Process Improvement is the #1 Priority for CIOs - 5 years in a row Gartner, Inc, “Leading in Times of Transition: The 2011 CIO Agenda” Source: Sept 2010 Information Week 500 Survey

3. The New Normal: Change, Complexity, Uncertainty $488 billion $534 billion Lost in process inefficienciesin Fortune 500 companies In mobile transactions by 2015 70% 50 billion Of businesses outsource oneor more strategic activities Devices connected to the Internet by 2020 85% 50% Of enterprises use external cloud services Of businesses plan to adopt more collaborative sourcing models 3

4. Complexity exists within organizations and the broader business network Companies need end-to-end process management Partners &Re-insurers Agents & Producers Insurance Carrier InternalEmployees Con-sumers AutoLOB Con-sumers CommercialLOB HomeLOB DMV Out- sourced Service Providers Financial Institutions 3rd PartyServices To orchestrate human tasks… … to increase visibility… … to manage exceptions and cases… … and for scalable transactions… … everything you need to manage end-to-end business networks 4

5. What is Business Process Management ? Through robust and flexible software capabilities and industry expertise, BPM enables customers to discover, model, execute, rapidly change, govern, and gain end-to-end visibility on their business processes Documentation & Compliance Deployment & Execution Visibility & Collaboration Software Continuous Process Improvement Business User Engagement Expertise Efficiency & Productivity Analysis & Optimization 5

6. Business Process Management (BPM)Save $Millions With just One Sigma Shift in Process Improvement: Budget available for new projects • 20% margin improvement • 12 - 18% increase in capacity • 12% reduction in employees • 10 - 30% capital reduction Budget Budget spent maintaining existing systems and processes Time Source: Six Sigma:The Breakthrough Management Strategy, Mike Harry, Richard Schroeder, 2000.

7. Typical Business-Driven Process ProblemsCommon symptoms that BPM is needed • Human to Human and Human to System process activities • Individual or group heroics make the process work • Operational “fire” or fire drills are a common occurrence • Poorly understood end-to-end process metrics • One Sigma quality .. a 32% error rate(Small changes can yield large improvements) • Process Changes 3+ times per year 7

8. The Value of Business Driven Change Efficiency Effectiveness Agility • Built supplier on-boarding system for 40% less than code based alternative in 66% of the time • Identified issues in their lending process, eliminated bottlenecks and identified waste while adjusting to 2008-2011 economic turmoil • Eliminating up to 80% ofthe “human touches” inInvoice Reconciliation • Standardized Mall Branch • office processes and made • tasks easier for staff. • Saves $2M per quarterby resolving DistressedShipments more effectively • Implemented Full Audit Trail for Compliance in their Grants Process – 1st major Pharma to be compliant • Reduced time to • document and comply • with NERC regulations Cut “engineering” time of designers on car systems by 20% in one year. • End Cap Product Display Management, optimization and delays identified months in advance 8

9. BPM Process Improvement Requires A “Third Way” Process-improvement requirements are likely to be unique, which favors build rather than buy. And the timeframes and costs of both are often not compatible with process improvement, so a ‘third way’ is required. - Analyst Community Consensus Flexibility Build “Third Way” + + - - Customized Unique High TCO IT bandwidth Buy + + - - - Reduced time Initial Cost Standard Feature set Reliance on vendor Response to Change Low cost/time

10. 5 4 2 6 3 1 Typical process problems Customer Service Finance and Ops Account Administration • Unstructured Tasks and Communication (ex Paper or email) • Inefficient Working Environment Spans Systems • Inconsistent Prioritization • Incomplete or Inaccurate Data Flow Between Systems • Lack of Control Over System and Business Events (Exceptions) • Poor Visibility Into Process Performance 1 Executive Management 2 3 Invoice Reconciliation Teams 4 5 6

11. BusinessRules BPM brings order to the chaos • Automate workflow & decision making • Reduce errors and improve consistency • Standardize resolution across geographies • Leverage existing systems and data • Monitor for business events and initiate actions • Real-time visibility and process control • Customer Benefits: • Huge Reduction in Manual Work, Errors • Faster, More Consistent Issue Resolution • Metrics, measurements, visibility and business-friendly reports • Rapid, Agile and Iterative process improvements 1 Finance and Ops 2 Account Administration Invoice Reconciliation Team 3 Executive Management Customer Service 4 5 6

12. The essential BPM capabilities • Modeling • Monitoring • Automation • Governance • Optimization • Rules • Business Data • Documents • Events • Integration • Collaboration • Analytics Customer Service Executive Management Finance and Ops Account Administration Risk ManagementTeams

13. BPM Developer Integration Developer Manager Worker Administrator BPM Roles-based Development – Rapid, Agile and Iterative Process Portal Process Portal Admin Console UI Screen Flow Coaches Scoreboards Execute • Collaborative platform • Iterative, shortened development cycle • What you model IS what is executed! • Single, Shared process model • Lower technical effort (less time, cost, risk) • Simplicity with Sophistication(Attractive to BOTH Business and IT) Process Designer BlueworksLive.com Process Modeler BPM Shared ModelProcess Center Optimize Design Process Optimizer Integration Designer Process Designer Business Analyst Process Inspector

14. Product Demos IBM Business Process Mgr v7.5 http://BlueworksLive.com Process Portal Process Optimizer Process CenterShared Model Process Designer The simplest way to get started with BPMProcess Discovery“Modeling for Documentation” The quickest way to deliver robust process applicationsProcess Implementation“Modeling for Execution”

15. IBM Business Process Mgr v7.5 Process Portal http://BlueworksLive.com Process Optimizer Process CenterShared Model Process Designer The simplest way to get started with BPMProcess Discovery“Modeling for Documentation” The quickest way to deliver robust process applicationsProcess Implementation“Modeling for Execution”

16. How is Process Discovery done today? • Figure it out yourself • Lock the team in a conference room for day(s) • Sticky notes • Butcher paper • Whiteboard drawings • Back and forth till you finally understand your process • Scribe it all down • Convert it to a diagram/drawing

17. Easy for novices, rich enough for experts Single repository, built for process Focused on participation Get Started Fast

18. BlueworkLive.com  Simple Enough for Novices…Rich Enough for Experts“Process Discovery…Blueprint your process”

19. IBM Business Process Mgr v7.5 Process Portal http://BlueworksLive.com Process Optimizer Process CenterShared Model Process Designer The simplest way to get started with BPMProcess Discovery“Modeling for Documentation” The quickest way to deliver robust process applicationsProcess Implementation“Modeling for Execution”

20. Process Server BPMN Process Rules Monitoring BPEL ESB IBM Business Process Manager IBM Business Process Manager Management Process Center Versioned Assets Server Registry Shared Assets Process Center Console Repository Design Define Update Governance Visibility Deploy Measure Process Designer Optional Microsoft Add-ons Out-of-box Process Portal Configurable Business Space Widgets Integration Designer End User Interfaces

21. BPM in the IBM SmartCloudRapid, Agile Infrastructure – Spin up BPM in ~10min Gain the simplicity, visibility, governance and power of the most comprehensive BPM platform without sacrificing capital and resource budgets Kick off that ever important initial BPM project within minutes versus weeks by turning to the IBM Smart Cloud Enterprise Leave the scalability and security of your infrastructure up to IBM while maintaining control over the service level agreement required by your business Bring your own licenses or pay as you go, you can now take resource constraints out of the project to program roadmap and you can focus on delivering business value Cloud 1 Cloud 2

22. IBM Business Process Manager - Built on SOA Infrastructure Billing ERP CRM Imaging Finance & Ops Invoice Reconciliation Teams Executive Management Customer Service Account Administration IBM Business Process Manager BPM • BPM can abstract the “business process” from underlying systems and services. • Over time, IT can consolidate those services into a common set of services within one SOA layer. • Users of the process are not affected as services and systems are merged, replaced, or updated. SOA Systems

23. IBM BPM In Action • Simplicitywith Sophistication: “Business friendly while IT Savvy” • Powerwith Integration Middleware • Visibilityfor Business Stakeholders: Dashboards, reports and more • Governancethroughout Design-time and Runtime Discover Implement Optimize

24. IBM is the proven leader in all aspects of BPM Largest Customer Base • #1 in Market Share • 5,000 + customers Unparalleled expertise, and level of investment • Over 15 years of industry leadership • 100’sof assets • Broadest, Deepest solution portfolio & services Strongest Ecosystem • 1000+ business partners • Global Users group Broadest and Most Differentiated Software Capabilities • Simplicity for fast deployment and full business user participation • Centralizedgovernance for repeatability and consistency • Visibility and Control to continuously improve business operations • Powerthrough High Scalability, Integrity & Quality of Service • Market Leadingdecision and rules capabilities • Best in classexceptions handling and case management 24

25. Ensure success with a proven approach for adopting BPM Project Program Transformation Rapid time to value Governance Visibility Simplicity to engage business users Power to scale as business requires Technology Turnkey Services Training Solution Mentoring On-Demand Consulting Assistance Expertise Transform across the enterprise Establish a Program • Infuse a culture of process across the organization Succeed with an Initial Project • Increase skills • Establish CoE • Optimize established projects • Extend to new projects Identify Business Challenge & Value • Target high return projects • Leverage proven methodologies to ensure success Maturity Challenges • Understand and document existing processes • Identify key improvement opportunities Realize fast value, foster BPM adoption and create transformational impact 25

26. Links to Your Next Steps…IBM BPM Delivery CapabilitiesIncluding Education and Enablement Services BPM Process Discovery & Modeling in the Cloud • Blueprint Process Modeling for inventory & mapping • Knowledge sharing & collaboration • Process analysis & prioritization http://BlueworksLive.com Demos & Free Cloud Test-drive • BPM Process Modeling & Implementation • Rapid process application development • Continuous process improvement • BPM program management http://IBMBPMDemos.com • Education, Enablement and on-demand Services • Quick Win Pilots • Role-based education & mentoring • Expert Services when and where they’re needed http://www.ibm.com/developerworks/websphere/services/ Confidential

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