WebSphere Lunch and Learn Series John Denning – Sima Solutions May 31, 2007

Business Optimization with BPM WebSphere Lunch and Learn Series John Denning – Sima Solutions May 31, 2007

Softwarethat Enables BPM • Business Services • Tools, Rules, Servers, Repositories • Business Dashboards, Forms • Expertise that Delivers BPM • Process Knowledge • Industry Methods and Models • Business consulting expertise Business Process Management Overview Business Process Management is a differentiating business capability combining software capabilities and business expertiseto accelerate process improvements and facilitate business innovation

Asia Sales Report 1. User configured business dashboards…. 2. ..based on business processes and external events… 4. …and repurposed to extend the utility of a solution across the business…just by changing policies and dashboard definitions European Sales Report Business Process ManagementThe Impact 3. ..which can be configured on the fly based on business rules and business policies Use “India Credit Corp” credit check service for all orders originating in India.

Bottlenecks prevent efficiency 2 Processes are not documented KPIs not defined 3 1 Complex integration across multiple processes 4 5 Process change is cumbersome Limited / no visibility into performance 6 Innovation can Encounter a Myriad of Process Challenges Ex: Account Opening Process

Exceptions Human System Document Rules The BPM SpectrumWhat Companies Want To Do

Design e.g.Reduce the inherent time and cost of a process; Design for higher quality and customer service Manage Changeby modeling and analyzing existing or new processes. Automate e.g.Run business compliant processes in production fast; Integrate systems and services seamlessly Respond Quicklywith processes based on a flexible infrastructure. Optimize e.g. View and understand real time business facts; Adjust or repurpose processes to meet targets Leverage For Efficiencyby intelligently adapting for optimal performance Three BPM Capabilities

Measure and monitor business activities Generally, where we are today Three Levels Of Maturity – Three Levels Of Value 0 1 2 3 4 5 Design Automate Optimize Acknowledge Operational Inefficiencies Enterprise Valuation Control Intra-Process Automation and Control Process Aware Agile Business Structure Inter-Process Automation and Control Compare alternatives driven by various optimization techniques in real-time Directly link process model and rules to execution Create a business performance framework that links business valuation to process execution Begin to identify process owners Collaborative development Innovate new businesses, products, and services through an agile business structure Model and analyze business processes Craft process automation and control across the enterprise, customers, and trading partners (industry)

WebSphere Delivers Real Customer Value Today Leverage For Efficiencyby intelligently adapting for optimal performance Call center volume down 40% in 3mths IT asset reuse at 52% after 6 mths SOA to deliver $200M savings over 5yrs Respond Quicklywith processes based on a flexible infrastructure. Realized $2M savings in the first year and increase in productivity Manage Changeby modeling and analyzing existing or new processes. Reduced mortgage process time by 53% Achieved 34% gains in efficiency Estimated annual savings of $4M

Design e.g.Reduce the inherent time and cost of a process; Design for higher quality and customer service Manage Changeby modeling and analyzing existing or new processes. Automate e.g.Run business compliant processes in production fast; Integrate systems and services seamlessly Respond Quicklywith processes based on a flexible infrastructure. Optimize e.g. View and understand real time business facts; Adjust or repurpose processes to meet targets Leverage For Efficiencyby intelligently adapting for optimal performance Three Levels Of Maturity – Three Levels Of Value

Lesson LearnedThree purposes for process modeling • Modeling For Documentation & Compliance • Document processes to better understand your business • Understand and capture complex behaviors and domain expertise in processes • Use output for training, collaboration, and documentation • Modeling For Redesign & Optimization • Discover potential areas for process improvement and latent value in processes • Document both the current state and future state business process and the comparison to validate enhancements and ROI before committing resources • Establish and track measurable process metrics for performance • Modeling For Execution • Ability to change the business process to respond to changes in market • Future state business process is ready to be passed to application, workflow and business process development tools to be executed as a new running process • Linked real-time monitoring provides feedback on process improvements and reporting for compliance on running processes

Existing Processes Lesson LearnedUse Simulation to Identify High Impact Process Changes WebSphere Business Modeler Run simulation to estimate savings and support the business case for the process change • Define and optimize processes thru simulation • Justify process changes through ROI calculations • Understand impact of process changes to the business • Example: Simulation results showing areas of greatest opportunity

Business Level Modeling And SimulationImporting Models- Leverage Process Work-To-Date • Visio import • Visio Import Wizard allows Visio shapes to be mapped to Modeler objects. Wizards may be saved for reuse. • Import Existing Industry Models • IBM Industry Models • Enable cross enterprise process simplification and rationalization • Provide a fast-path to an enterprise-wide business process architecture • Document complete business requirements • Manage process change SOA: The Key to Business Flexibility 12

Business Level Modeling And Simulation Simulation and Analysis • Predict business operation outcomes by running "what if" scenarios • Help determine and justify projects that will generate the greatest returns on investments, and help build your business case • Generate comprehensive information around cost, time, and resource savings • Optimize by looking at bottlenecks and workload imbalances before moving any changes into production SOA: The Key to Business Flexibility 13

Business Level Modeling And Simulation Publish And Collaborate • Collaborative modeling • Version controlled models for team modeling • Collaborative reviews • Browser based model review • Easy access for all stakeholders • Web Publishing • Publish final model information • For user training and reference • For compliance documentation

The Challenge Warranty Claims Processing (Asia) Business Solutions And Objectives OEM Warranty Processing Warranty Claims Processing ….introduce and change business solutions…. How can I… ….against measured objectives…. ….leveraging existing resources and IT systems… ….at a pace and cost which outwits my competition. Resources and IT Assets Product Wear Database … … Claims Database Customer Database …

Business process model and metrics Example – Warranty Processing Processes BPEL process for execution Degree of Reuse Rate Of Change Example – Claim Adjustment Service Components Example – Check Customer History WebSphere BPM provides the mechanism for delivering through SOA Warranty Claims Processing (Asia) Business Solutions And Objectives OEM Warranty Processing Warranty Claims Processing Resources and IT Assets Product Wear Database … … Claims Database Customer Database …

get Approved Approved/ Denied If Approved then Send letter offering gold If NOT Approved Send letter offering Credit counseling service I/T Accelerated Solution Assembly Flexibility And Agility Through Standardized Service Invocation Java Application Sell additional services based on customer profile Human Task Human intervention on suspect applications to prevent fraud Enterprise Application Call Credit Rating service from an existing application Business State Machine WS-BPEL Business Process Adapting to business events Flexibly building business processes based on standards Business Rules Enable realtime process adjuestment

I/T Accelerated Solution AssemblyIntegrated ESB for Range and Reach WebSphere Process Server contains WebSphere ESB • ROUTINGmessages between services • CONVERTINGtransport protocols between requestor and service • TRANSFORMINGmessage format between requestor and service • HANDLINGbusiness events from disparate sources • Standards based Integration • Web Services connectivity • JMS messaging

Adapter I/T Accelerated Solution AssemblyAdapter Connectivity • Adapters provide the service on-ramp for existing applications • Enterprise-ready connections based on industry best practices • Broadest reach in the marketplace • Part of IBM’s Access Services portfolio, which delivers reach to hundreds of integration endpoints • Enterprise Ready • Mission-critical quality of service • Full portfolio of integration products available through a single vendor • Best Practices • First-class support for top ISVs • Established relationships with top-tier ISVs • Based on first-hand experience gained from integration services Adapter PeopleSoft SAP

Exceptions Human System Document Rules One Flexible Process Solution For All Process Needs WebSphere Process Server

I/T One Flexible Process Solution For All Process Needs Lowest Total Cost Of Ownership • Lowest Total Cost of Ownership because these capabilities exist on a single server, with no need to purchase separate deployment solutions • Any task can be implemented as human or system workflow • Any document or business object can flow between tasks • Best in class Human Workflow and worklist management • Single point for business rules implementation and modifications

I/T One Flexible Process Solution For All Process Needs Human Workflow Management Human Task Manager (HTM) • Is WebSphere Process Server’s key component forhuman tasksupport: • Builds upon the proven staff runtime introduced in WBI SF v5 in 2003 • AND the functional capabilities known from WebSphere MQ Workflow • AND many many new functions suggested by our customer base • Provides first-class human workflow support for BPEL processes as inline human tasks knowing about the (BPEL) process context and • Provides rich staff support for service-oriented applications, making humans available as ”encapsulated services”: • Allows to “invoke” humans as services • Allows humans to invoke services • Supports Ad-hoc Tasks • Allows for escalation and notification of human tasks during business process execution

I/T One Flexible Process Solution For All Process Needs Document Management Click-to-Action

I/T One Flexible Process Solution For All Process Needs Business Agility Through Business Rules Ruleset • Parameterized business processes • For runtime adaptability • “Ruleset” • If-then statements • “Decision Table” • Compact form for complex nested rules • 3rd party rules engine plug-in • Web based tooling for business users Decision Table

Optimize Govern Publish Find Manage Enrich Automate Design AutomateWebSphere Service Registry & Repository Help optimizeservice performance Enable enforcement of policies. Impact analysis. Enhance Connectivity Enable dynamic and efficient interactions between services at runtime. Encourage Reuse Find and reuse services for building blocks for new composite applications. Enable Governance Govern services throughout the service lifecycle

Lessons LearnedManage for Optimal Performance 69% of CFOs say that measuring and monitoring business process and performance is their top priority IBM Business Consulting Service. IBM Global CFO Study Dec. 2005 • View performance of processes based on Key Performance Indicators • Track cost, time and resources • Achieve real-time visibility into processes • An ongoing, iterative loop of improvement and optimization • Learn from your data • Feedback into model

Business Process Monitoring And Optimization • Scorecard view of business measures and Key Performance Indicators • Cost, time, resources • Task based dashboards and reporting capabilities, • Trending information • Tools to customize or define new dashboards • Track and modify business process flows • Use trends to eliminate redundancies or inefficiencies • Identify bottlenecks – balance workloads • Reduce latencies

Business Process Monitoring And OptimizationFact based business analysis • Real production data imports to business models • Simulate and analyze to fully understand the state of the business • Gauge the impact of initial decisions and make corrections • Informed in-flight decision making • Examples: Task durations; Decision probabilities; average delays; costs…

Optimize Your Business With “Business Services” Select processes and services via business use policies Business Services How can I control which processes and services are used when and by whom? Fabric Organize human and system tasks into automated business processes Process Server How can I automate human and system based tasks for business performance, reuse and compliance ? Processes Implement a governing services repository integrated with the ESB How can I control which service is actually used at runtime based on QoS considerations? Services Repository Implement a comprehensive Enterprise Services Bus Enterprise Service Bus How can I reach any system in my enterprise and treat it as a set of services for reuse? Applications

Optimize Your Business With Business Services • Simplify Your Business Processes • Business Services move many run time decisions points outside of the processes • Simpler processes are quicker to design and deploy • Adapt Your Business Processes • Business Services allow you to change process behavior from outside of the process • Adaptable processes are quicker to change for optimal performance • Repurpose Your Business Processes • Business Services allow you repurpose your processes for other business needs • Repurposed processes result in quicker roll-out, deployment and scaling of business solutions

Three Levels Of Maturity – Three Levels Of Value Optimize WebSphere Business Services Fabric WebSphere Business Monitor Leverage For Efficiencyby intelligently adapting for optimal performance Automate Respond Quicklywith processes based on a flexible infrastructure. WebSphere Integration Developer WebSphere Process Server Design Manage Changeby modeling and analyzing existing or new processes. WebSphere Business Modeler

IBM Leads in Business Process Management with SOAAnalyst Magic Quadrants and Waves deliver the proof • Gartner BPMS Magic Quadrant (June 2006) • Identified as ‘visionary’ within this evolving market • Best positioned of all “major” vendors • Forrester Human-Centric BPM Wave (Insurance, Sept. 2006) • Preliminary results were positive  “…IBM leads the pack” • Establishes IBM as the vendor with leading capabilities across the full spectrum of BPM engagements (human, system, document) • Forrester Integration-Centric Wave (3Q05) • IBM leadership • Next rev targeted for Dec. 2006 (renamed to “BPM”)

Exceptions Human System Document Rules WebSphere BPMOne Flexible Process Solution For All Process Needs

Getting Started with BPM Enabled by SOA • Read the Whitepaper: • “BPM with SOA: Better Together” • Take the Assessment: • BPM enabled by SOA Readiness Assessment • Attend a Workshop: • Get started in your BPM project with a customized Process Improvement Workshop ibm.com/software/info/bpmsoa/

Thanks!

WebSphere Lunch and Learn Series John Denning – Sima Solutions May 31, 2007