Presentation Title:

1. Presentation Title: Utilizing Business Process Management (BPM) and Enterprise Architecture (EA) to Achieve and Maintain a Competitive Advantage Presented By: Joe Henneberry ARIS Practice Manager IDS Scheer Canada

2. Agenda • Introduction • Business Process Management / Enterprise Architecture Primer • Business Process Management Approach at Merrill Lynch • Client Account Opening Process • Developing a Business Process Architecture • Benefits of a Business Process Management Approach

3. Introduction • Merrill Lynch – The Company • Merrill Lynch is one of the world's leading financial management and advisory companies • Offices in 36 countries • Total client assets of approximately $1.6 trillion • Leading global underwriter of debt and equity securities • Through Merrill Lynch Investment Managers, the company is one of the world's largest managers of financial assets. • Firm wide, assets under management total $479 billion.

4. Introduction • Merrill Lynch - The Challenge • Determine root cause of “Pain Points” of the Account Opening Process which were discovered through previous customer surveys • Improve initial point of contact with customers • Understand the complexities of Merrill Lynch’s Client Account Opening Process which spans multiple products, organizations structures, application systems and data stores.

5. Introduction • Merrill Lynch – The Solution • Utilize a Business Process Management (BPM) methodology to understand the complexity between KPIs, business processes, application systems, data and organizational systems. • The BPM application selected was IDS Scheer’s ARIS Platform with it’s inherent ARIS methodology

6. Business Process Management Enterprise Architecture Integration Business Process Management Tools Business Process Modeling Business Performance Management BPM / EA Primer Articulated and maintained Business Process Modeling is the core for business Process Management (BPM) Business Process Modeling Articulated and maintained end to end business process models used to manage process strategy across business and organizational silos. Enterprise Architecture Articulated and maintained models which map the processes to data, applications and infrastructure to manage the elimination of redundant data, software and hardware. Business Performance Management Integration of Key Process Indicators (cost, timing, resources) from the legacy applications into the business process models for real-time management dashboards for day-to-day management. Business Process Management Systems Leveraging Service Oriented Applications (SOA) and Business Rule Engines as a integration layer on top of legacy applications to implement solutions and empower the business to design and implement process changes.

7. BPM Approach at Merrill Lynch • Determine enterprise initiatives • Develop business processes that are in line with businessobjectives and KPIs • Create enterprise repositories • Organizational structures • Application systems • Data • Products • Processes • Manage Tactical Projects • Narrow scope by tactically focusing on specific areas of concern • Don’t model the world

8. BPM Approach at Merrill Lynch Merrill Lynch’s BPM End User Interface

9. Client Opening Account Process The ARIS Methodology was used to decompose and document a current state “As Is” analysis. The “As Is” analysis consisted of: • Step 1 - Qualitative As Is Analysis: • Architecture analysis focusing on • Organization structure (e.g.. hierarchies, org responsibilities, fragmentation, org breaks) • Products portfolio & structure (e.g.. number & structure of products, differentiation between products) • Process architecture (e.g.. flow through the organization, fragmentation, automation, level of standardization) • Application system inventory (e.g.. number of systems, information flow, fragmentation) • Datarepository (e.g.. number of data clusters, storage of data, duplication, fragmentation) • Pain points • Step 2 - Quantitative As Is Analysis: • Product quantities • Process times • Process costs • Employee utilization

10. Client Opening Account Process Organizational View • The organization structure of ML GPC is mapped in the organization view. The hierarchy is decomposed from top to bottom showing the Names of the organizational units and positions. These objects are re-used in the processes.

11. Client Opening Account Process Product View • The Product structure of ML GPC is mapped in the product view. A decomposition of available product & services is shown in the product & service tree.

12. Client Opening Account Process Process View • The New Account Opening process flow is described in the process view. • A high level value chain showing the main steps & responsible Organizational Units is broken down into a detailed process with the functions, the position executing these functions & the system supporting them as well as the in-& output of each activity. • The average processing time per function & probabilities per decision are recorded and allow process time calculations. The cost rates for the position that execute the functions are mapped and enable process costing.

13. Client Opening Account Process Data View • The data structure of ML GPC is mapped in the data view. The hierarchy is decomposed from top to bottom showing the data clusters for the different products; the data clusters are then broken down to the different Entity Types that they contain. The clusters are re-used in the processes.

14. Client Opening Account Process Application System View • The application system structure within ML GPC is mapped in the Application View. The hierarchy is decomposed from top to bottom showing the different systems used in the processes. These objects are re-used in the processes.

15. Client Opening Account Process Pain Point Tree • More than 100 Pain Points were considered during the As Is Analysis that were gathered during previous surveys and during the interviews (selection provided)

16. Developing a BP Architecture • Process Approach Overview • Merrill Lynch Global Private Client Services explored the use of creating a business process repository to capture and document all business processes for the division. • Approach • Top / down organization focused approach • Bottom-up process-focused approach • Integrate top-down and bottom-up approach through process decomposition

17. Developing a BP Architecture • Create top-down views of the organization

18. Developing a BP Architecture At lowest levels of the organization define business processes

19. Developing a BP Architecture Create organizational process buckets to capture generic business processes and create process from lowest process levels up

20. Developing a BP Architecture The As Is process flows were the bases to create To Be process flows to quantitatively and qualitatively identify areas for improvement. The business benefits gained were: • Process visibility (end-to-end) • Information Repository • Streamlined process • Increased efficiency of applications • Increased data usage • Mitigation of pain points in the process

21. Benefits of a BPM Approach • Alignment of process flows to KPIs • Integrated understanding of how changes in process effect application systems, data, products and organizational structures • Significant reduction in cycle time for introducing process change • Central repository i.e. one point of reference • Decomposition of business processes from high level value added chains to process step analysis

22. Questions