SOA Productivity through Automating Business Processes

1. SOA Productivity through Automating Business Processes Paul Smith IBM Software Group – WebSphere Software

2. The Challenge SOA - an enabler to Change BPM for SOA Value Best Practices Getting Started Agenda

3. The top focus for business • Due to competitive and market forces, CEOs plan to radically change their companies in the next 2 years. • > 80% of CEOs stated their organizations have not been very successful at managing change • 78% of CEOs believe integrating business and technology is fundamental for innovation Source: IBM Global CEO Survey, March 2006 The Goal: Strategic Flexibility Through Innovation

4. Business knows what it wants…and what’s preventing progress ...and the barriers …processes are inflexible or unclear …integration challenges prevent timely implementation …long lag-times and inadequate alerting mechanisms prevent insight or action…changes had been expensive with long payback periods What businesses want… A way to change their operational processes quickly… To deploy automated processes fast… A real time view of operations and be able to intervene… To see results and value fast… Companies Want Change At The Speed Of Business

5. Services Oriented Architecture changes the game SOA allows you To create a set of related and integrated services that support a business process • SOA is at the core of BPM • SOA improves how you Design, Manage, and Optimize your business processes by enabling: • Solution Building Efficiency • Reuse of existing assets • Flexibility in change

6. 2 SOA Entry Point to a Process Centric ApproachBusiness Process Management for Continuous Innovation Value Innovative business models deployed quickly with flexible and optimized processes Why SOA? Modeled processes, converted into services, are re-used, connected and re-deployed more flexibly and quickly with SOA Start with A single process – Model an underperforming process. Optimize and deploy as enhanced process. Next steps Flexibly link multiple processes across the enterprise & to suppliers / partners. Monitor the process to measure & track performance. “SOA, done right, enables the creation of a common language shared by IT and the broader business stakeholder community..” - Neil Ward-Dutton

7. The BPM for SOA Value Proposition from IBMManage processes, workflows, and documents to improve your business through innovation. For Companies that need to quickly identify and respond to changing market conditions use Business Process Management (BPM) for SOA to improve the efficiency, flexibility, and control of their key business processes. IBM combines expertise in your industry with world-class software to deliver a comprehensive approach to BPM

8. Flexibility Rapidly change process behavior Adapt to changes with minimal disruption Responsiveness Make proactive changes to processes dynamically Optimization Powerful tools to improve your business processes True understanding of business operations Solution Building Efficiency Deploy business process solutions at lowest cost Import and work with business process models directly from the business analyst Goals of a BPM for SOA Implementation

9. Best Practices for a successful BPM for SOA implementation • Capture and understand your business processes to drive improvement • Bridge the gap between the business and IT • Build a BPM Framework using SOA • Use executive dashboards and scorecards to manange your business

10. Best Practice #1 Capture and modify your business processes to drive improvement 67% of processes fail because their impact was not known prior to execution --Omar Sawy, Redesigning Enterprise Processes For e-business • Identify the core processes that differentiate your business • Import your existing process documentation, or • Create a new process model • Identify the tasks that impact your process performance the most • Modify your process model to create “To-be” scenarios

11. Best Practice #1 cont. • Run simulation to calculate value of improvements • Compare and analyze Results Lower processing time and costs • Publish model for collaboration with the process team • Enable participation in reviews and modifications

12. Best Practice #2 Bridge the gap between the business and IT • Create a process design team: • include both business and IT • assign owners and roles for processes design and management • Tighter alignment assures a seamless handoff from business to IT for assembly and deployment “It is impossible to separate IT and business strategy.IT doesn’t support the business, it is the business.” –Asiff Hirjim, CIO, Ameritrade

13. Wachovia: Optimize Business Processeswith SOAIntegrating multiple systems to deliver a single interface Business Challenge • Needed to accommodate growing channels and integrate IT platforms from acquired businesses Benefits • $6 Million Initial Savings • Process activities reduced from 300 to 120, 31 of which were automated • Fee Income collection increased 10X Action Taken • Transform existing infrastructure to SOA • BPM solution to deliver information to several channels from a single interface

14. Best Practice #3 Build a BPM Framework using SOA • Dramatically reduce process time and deployment costs • Leverage existing and new services • Use a tool for dynamic process assembly • Utilize a single process server for human workflow, process choreography, and information sharing Example: Loan Process

15. get Approved Approved/ Denied If Approved then Send letter offering gold If NOT Approved Send letter offering Credit counseling service Why it is Important to have a Single BPM Framework with SOA? Java Application Assembling Components used in the Business Process Human Workflow Integration with ERP systems Business State Machine WS-BPEL Business Process Business Rules

16. get Approved Approved/ Denied If Approved then Send letter offering gold If NOT Approved Send letter offering Credit counseling service Why it is Important to have a Single BPM Framework with SOA? Java Application Assembling Components used in the Business Process • One Tool • One Server • One vendor Human Workflow Integration with ERP systems Business State Machine WS-BPEL Business Process Business Rules

17. Delaware Electric Coop – Adopting SOA for business flexibility - Agile Processes: make changes on demand Business Challenge • Were losing profits and market share because customer satisfaction was poor due to slow, inflexible business processes • Data was fragmented and applications were in silos Benefits • Improved customer satisfaction using paperless interactions resulting in faster transactions and responses • Open exchange of information to improve customer service representative access to information • Reduce cost and leverage investment in technology. Action Taken • Integrated 27 disparate legacy systems using SCA based process flows • Implemented a standards based development environment to reuse assets

18. Best Practice #4 • View performance of processes through Key Performance Indicators • Track cost, time and resources • Intervene in the process to ensure business is running in compliance • Use data collected for continuous Process Improvement Use executive dashboards and scorecards to manage your business

20. Business achieves its goals with BPM for SOA • Optimize business Customers Understand their processes • Document and validate current business processes, simulate “what-if” scenarios Quickly assemble and deploy solutions • Offers clear understanding of the businesses needs to construct processes on-demand • Allows new and changes to business processes quickly, flexible business Monitor Processes to ensure optimization • Improve business operations through process improvements • Solution Building Efficiency • Reuse existing assets • Flexibility • Responsiveness • Monitor and manage critical business events

21. BPM Methodology is executed with IBM’s SOA LifecycleWebSphere is at the core of BPM Assemble existing and new assets to execute and manage business processes Deployment of models, policies and assemblies to realize business intent Capture, simulate, analyze, and optimize business models to reduce risk and increase flexibility Real-time visibility and analysis of business information for timely and coordinated action

22. ENHANCED! ENHANCED! ENHANCED! ENHANCED! Enhanced! SOA Announcements for ProcessSOA Processes with Built-in Flexibility Business Process Management WebSphere Process Server and Integration Developer WebSphere Business Modeler WebSphere Business Monitor DB2 Content Manager • Hundreds of Process templates • Enhanced analysis and simulation capabilities • Process metric definition for Key Performance Indicators • Interoperability with other modeling tools • National language support • Multiple platforms including System z availability • National language support for BPM • Complete toolbox for building composite SOA applications • Real-time process enhancements; architected for reuse and flexibility • Real-time process visibility and modification • Monitor process metrics and Key Performance Indicators • Event triggers and alerts • Formal, consistent, repeatable document processes • Integration with WebSphere Process Server Quick Start Toolkit - SCA components and objects to implement common interaction patterns • Repository services for Workplace Forms • Supports XML APIs • National language support

23. Why IBM WebSphere software for BPM for SOA? Nobody has the breadth or depth Nobody can get you started faster • IBM offers end-to-end BPM based on an SOA infrastructure • IBM’s BPM portfolio delivers rich functionality: • Sophisticated Modeling/Simulation • Closed loop feedback • Extensive tooling • Best integration engine in the market • Extensive history and leadership in legacy and application integration—critical aspects of BPM • Leading best practices • Unmatched industry expertise • Hundreds of pre-existing process models to speed time to value Award winning software products BPM from IBM leads in Market share Wintergreen Research, Fall 2005 IBM rated as a leader in BPM technology by Network Computing magazine readers--2005 BPM e-Poll (How to Win at BPM, Network Computing Magazine) WebSphere:"impressive management options, support for Web services and general ease of use…" – Network Computing(February 2005)