Frank Chisholm Executive Solutions Program Manager - Business Event Processing Jared Michalec

1. 2073: Using Event Processing to Dynamically Adjust Human-centric Business ProcessesSmarter BPM using WebSphere Lombardi Edition and WebSphere Business Events Frank Chisholm Executive Solutions Program Manager - Business Event Processing Jared Michalec WW WebSphere Technical Sales Leader

2. Agenda • The Current BPM Landscape • WebSphere Business Events Overview • (Complex) Event-Driven BPM • WLE + WBE • Architecture and Value Proposition • Demonstration • Summary and Questions

3. Billing ERP CRM Imaging Speed of Business Requires More Responsive Process Automation with Situational Awareness 1 • Informal Tasks and Communication (ex Paper or email) • Inefficient Working Environment Spans Systems • Inconsistent Prioritization and Decision Making • Incomplete or Inaccurate Data Flow Between Systems • Lack of Cross Process or Process Instance Insight • Lack of Insight into Exceptions • Unacceptable latency in detecting patterns of activity requiring timely response • Customer Problems: • Cannot Grow Efficiently • Poor Customer Satisfaction • Limited Visibility Finance and Ops 2 1 Risk Management Teams Executive Management 3 6 3 Customer Service 4 Account Administration 7 ???? 5 6 2 5 7 4

4. Barriers to More Responsive Process Automation with Situational Awareness No consistency No auditability No optimization No automation Over-reliance on a few “gurus” Documentation does not = process improvement No enforcement of how process actually runs Typically leads to “tribal knowledge” scenario TribalKnowledge Documentsand Spreadsheets Many of the same challenges as applications Tooling too hard to use for all process stakeholders Result in brittle, expensive applications Often used for “stand alone” projects Focus only on point problems Applications predetermine business processes Inflexible – they do what they do High cost of customization Long deployments Traditional Approaches MonolithicApplications Technical Implementation Tools

5. Billing ERP CRM Imaging Process Automaton & Business Event Processing Enable More Responsive Processes with Situational Awareness • Automate workflow & business event processing • Monitor for patterns of activity and initiate actions at the right time • Real-time visibility and process control • Reduce errors and improve consistency • Leverage existing systems and data • Standardize response enterprise wide • Customer Benefits: • Improve responsiveness to actionable business situations • Huge Reduction in Manual Work, Errors • Easier to Manage the Business 1 Finance and Ops Risk ManagementTeams Executive Management Account Administration 2 Customer Service 3 4 RULES 5 PROCESS 6

6. Agenda • The Current BPM Landscape • WebSphere Business Events Overview • (Complex) Event-Driven BPM • WLE + WBE • Architecture and Value Proposition • Demonstration • Summary and Questions

7. ! A call to the help desk What is… …a Business Event? Any electronic signal (message) indicating a change in the state of the business has occurred A sale is made A New Location is Detected A PIN is changed …Business Event Processing? The ability to sense when an event or event pattern has occurred (or not occurred) – indicating an actionable business situation – and to coordinate the right response (action) at the right time. Sales Follow-up Correlation Multiple Product Inquiries “Events… pass silently back and forth… as unrelated pieces of communication. They are a source of great power, for when they are correlated, they yield a wealth of information.” -Dr. David Luckham, Professor Emeritus, Stanford University

8. Fraud Detection: Financial institutions require constant monitoring for suspicious patterns of diverse activities and the ability to continually and quickly adjust for interesting patterns. Cross-Sell/Up-Sell: Abandoned shopping carts present a sizeable opportunity to online retailers. Successful Companies Sense and Respond to Opportunities and Risks Increase Sales Mitigate Risk

9. WebSphere Business Events: Empowering the Business User WebSphere Business Events + Complex Event Processing Business User Interface The Convergence of Power and Ease of Use

10. WebSphere Business Events Correlation of business events from any source, over any time frame Large Purchase Long Time Customer Cash Transaction Turbulent, Disparate, Non-Deterministic, Un-sequenced Events Same/Similar Product Line More Than 15 Visits in 1 Year 5th Purchase in 3 months Capture Empowered Business User WBE Runtime Evaluations Correlations “Offer reduced rate Credit Card" Event Sources Automated Action External Event Sources “Offer Customer Loyalty Discount" BPM Business Processes Business Services Web Services Applications Alerts/KPIs 10

11. WebSphere Business Events – Key Benefits Sense and Respond to Actionable Situations at the Right Time Mitigate Risk and Identify Opportunities Faster Time to Value Greater Agility Real-time Discovery and Response to Actionable Situations Reduced time to Implement Sense and Response Process Through earlier and more intelligent insight

12. Agenda • The Current BPM Landscape • WebSphere Business Events Overview • (Complex) Event-Driven BPM • WLE + WBE • Architecture and Value Proposition • Demonstration • Summary and Questions

13. How to Make Process Automation Smarter, Simpler, Faster Smarter.Intelligent user interfaces and rule-driven business event management. Simpler.Graphical, business-friendly tools allow everyone to participate easily. Faster.Rapid build, reuse, analysis, and change - with strong governance. Process Owners &Analysts BusinessSubject Matter Experts Process Mgmt / Analysis Tools End Users CollaborativeDiscovery Tools Intelligent User Interfaces Process Process . . . Application Process Developers Business event Business event Business Event RapidDevelopmentTools Real-timeVisibility / Control . . . Rule Developers Business Event Processing Tools Operational Managers ITGovernance Policy Managers &Analysts

14. Different roles can drive process management and business event logic Flexibility, Scalability of a Two-Pronged ApproachCritical for a long-term business improvement program • Process improvement team: process owners, analysts, developers • Policy managers & analysts (e.g., pricing, eligibility, risk/compliance specialists) Processes and Business Event logic can be deployed independently • Implementation can be done in parallel or staged according to priorities • Decision changes tend to be more frequent • Externalizing rules allows processes to remain more stable and streamlined Process and business event logic can have separate lifecycles and governance requirements Business Event logic can be shared and reused across processes and other applications • Change once, apply everywhere • Ensure decision consistency when required by policies or regulations

15. Two-Pronged Approach to More Responsive Process Automation Defines and orchestrates the end-to-end process Combines automation with user interaction Is fundamentally concerned with operational efficiency of the organization Defines and detects event patterns which start, stop or resume process execution Is focused on detecting actionable business situations as they happen and initiating the right response at the right time Is fundamentally concerned with the situational awareness of the organization Event Processing Correlate Business Events and detect Business Situations Business Event Management Process Management 1. Recognizes patterns which requires action 2. Action to initiate/interrupt appropriate process 3. Execute the business process BPM Events Business Processes and Human Task Applications 4. Event representing key business process step or outcome

16. Agenda • The Current BPM Landscape • WebSphere Business Events Overview • (Complex) Event-Driven BPM • WLE + WBE • Architecture and Value Proposition • Demonstration • Summary and Questions

17. Integrated Process & Business Event Management from IBM WebSphere Lombardi Edition Single, comprehensive platform for rapid development and management of business process applications • Simplicity & sophistication – user experience allows business users to engage more fully in process design and improvement • Lower implementation cost, effort, and risk – than other BPM alternatives • Built-in Performance Data Warehouse, Optimizer – for automatic tracking, analysis, and optimization of process applications • Designed to scale easily to multi-project, multi-version enterprise BPM programs WebSphere Business Events Enterprise BEP that supports management and sharing of business event logic across applications • A powerful, scalable, flexible event processing platform - enables situational awareness - manages the business events flowing across systems and people and detects and responds to actionable situations • Business user oriented interfaces reducing time to value - enables users to describe in business terms the events and patterns to detect and react to through intuitive business user tools • Designed to expect change – supports incremental development and deployment Empowers the line of business user, rapid deployment and responsiveness to change Lombardi Edition + WBE together provide a scalable enterprise platform for smarter, more responsive process automation

18. Example #1: Pre-qualification Benefit: Reduce the need for human intervention Web Page Viewed WBE WLE Call Received Initiate Sales Follow-up Process Email Question If any 2 of these events received within 1 week for the same customer, this is a possible opportunity.

19. Example #2: Interruptions to In-Flight Processes Benefit: Reduce the need for human intervention Credit Application Started WLE WBE Cancel all applications for people in the same household If the total value of credit requested > $50,000 for a household, this is possible fraud.

20. Example #3: Use Outcomes of Previous Business Processes Benefit: Ability to adjust logic on the fly based on past behavior Email Address Changed Investigate suspicious activity WBE WLE International Transaction These transactions were valid Address Change If email or address change and more than 4 international transactions, this is possibly suspicious. If email or address change and more than 2 international transactions, this is possibly suspicious.

21. Example #4: Cross-Process Correlation Benefit: Better responsiveness and visibility into existing business logic Loan Approval Started WLE WBE Initiate a new process If more than 20 approvals for same branch are still pending after 10 days, need to escalate.

22. Manufacturing Reusable Container Tracking Business Challenge: Improving manufacturing efficiency and traceability requires the ability to identify potential manufacturing delays immediately and respond A large aircraft manufacturer continuously receives parts and sub-assemblies from suppliers and partners that must be directed to the right place in the manufacturing process at exactly the right time. Solution: Reusable wheeled containers move parts from where they are received to where they need to be. WBE and WebSphere Premises Server utilize RFID tag signals from the containers to achieve visibility and traceability of their movement and use and the parts they carry throughout the plant. WBE detects patterns of activity representing inefficiencies, component shortages, misplaced inventory, or potential problems from supplier, warehousing, or manufacturing processes and to provide notification and alerts and initiate BPM processes for corrective action. Results: • Improved operational efficiency • Increased awareness and responsiveness to manufacturing processes • Improved inventory utilization • Reduction of costly manufacturing delays

23. Government – Court Management Business Challenge:Court systems are challenged to maximize the effectiveness of resource utilization. Cases are often scheduled for appearance before case files are complete. Solution: They are implementing WBE to ensure all required case information is received before scheduling a court hearing. WBE will monitor events around captured information and initiate appropriate notifications and actions to various systems/people when critical information is missing or requirements for appearance are in jeopardy. Results: • Automated the tracking of receipt of critical case information • Ensured all case files sent to court are complete • Improved court resource utilization

24. Agenda • The Current BPM Landscape • WebSphere Business Events Overview • (Complex) Event-Driven BPM • WLE + WBE • Architecture and Value Proposition • Demonstration • Summary and Questions

25. Business Users Directly Manage Process & Business Events • Lombardi • 100% graphical design • “Picture is the process” • Designed for business engagement / collaboration • Business Events • Unequaled business • user empowerment • Superior event • processing functionality • Broadest access to • event sources

26. Action Action Event Event Event Action Event Action Extended Information Infrastructure Event Sources /Event Sinks WebSphere Business Events Leveraging the Existing Infrastructure -- Detecting and Responding to Actionable Situations Event Processing is About Determining “When” To Act Sensors People Information Transactions • WBE detects “when” an event or event pattern occurs (actionable situation) and generates one or more messages (actions) alerting the infrastructure Infrastructure Applications Events Processes BEP Knowing “When” Allows Coordination of “What” To Do WHEN To Respond • When any application or process, operating in the IT infrastructure, receives an alert message (posted by WBE) indicating an actionable situation has occurred, it will determine “what” to do” I.e. do nothing, execute and when finished create a new event message or not WHAT To Do

27. Business Event Processing to Interrupt or Start a New Process Credit Card Application Process Fraud Investigation Process Sample WBE Interaction

28. WebSphere Lombardi Edition + WebSphere Business Events Portal / ScoreBoards Coaches Lombardi for Office WLE Process Optimizer WebSphere Lombardi Edition Authoring WebSphere Business Events Testing/Simulation WebSphere Business Events Design Tools WebSphere Lombardi Edition Process Portal WebSphere Business Events Design Data WebSphere Business Events Design WLE Authoring Environment WLEProcess Server WLEPerformance Data Warehouse WebSphere Business Events Server WBE Connector Framework Integration components / services Business Events Repository ProcessRepository PerformanceRepository

29. Agenda • The Current BPM Landscape • WebSphere Business Events Overview • (Complex) Event-Driven BPM • WLE + WBE • Architecture and Value Proposition • Demonstration • Summary and Questions

30. Agenda • The Current BPM Landscape • WebSphere Business Events Overview • (Complex) Event-Driven BPM • WLE + WBE • Architecture and Value Proposition • Demonstration • Summary and Questions