Prolifics Customer Case Study: Cigna Healthcare and BPM process-centric tools - Impact 2012
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Speakers: Kevin Hutt, Cigna; Anant Gupta, Prolifics Description: See how Cigna Healthcare is investing in the innovation needed to maintain its position as a global health services leader by putting the Customer first. Cigna has embarked on what might become their most strategic and transformational initiative ever. Cigna is approaching this complex project utilizing a coherent set of BPM process-centric tools to extract the business rules out of their core systems and business processes. With the ability to link end to end business rules with business process, while supporting business policy, this business led transformation will allow Cigna to strengthen its customer-centric competitive edge while providing the agility needed to grow and evolve over time.
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Prolifics Customer Case Study: Cigna Healthcare and BPM process-centric tools - Impact 2012
- 1. Customer Case Study: Cigna and BPM Adoption Impact 2012 Speakers: Kevin Hutt, Cigna Anant Gupta, Prolifics
- 2. Speakers Kevin Hutt– Assistant Vice President, BPM Delivers BPM initiatives at Cigna in the Healthcare segment Anant Gupta – Vice President, BPM & Connectivity Provides BPM initiatives guidance to clients primarily in the BFSI and healthcare sectors 2
- 3. Ag enda • About Cigna • Where we are today & our goals • Challenges to reaching our goals • Solutions of the past • Choosing BPM • Challenges to Adoption • Successes • Q&A
- 4. Prolifics at a Glance Prolifics at a glance… Who Are We? A Corporate Group of 1200 Employees Worldwide specializing in the expert delivery of end-to-end IBM Solutions Over 30 years in business, Prolifics is an end-to-end systems integrator specializing in IBM technologies New York Orlando Boston San Francisco Philadelphia London Application Testing Washington DC Hamburg Santa Clara, CA USA Off-Shore Development Center Hyderabad, India Awards Solution Leadership 2012 IBM Beacon Award for Business Agility SOA solutions and appliances for Business Process Management and Integration 2012 IBM Smart SOA Impact Award Collaboration and Content Management Portals Finalist for the IBM Impact Smarter Decision Information Management for Data Cleansing, Business Management Award Intelligence and Dashboards Security for Web, Portal and Enterprise Applications IBM 2012 Awarding Client Excellence Monitoring and Managing Applications 2011 IBM BPM Award Finalist Testing, Governance and Methodology Technology Migrations to the IBM Software Platform 2010 Best BPM Solution Award
- 5. About Cigna… • One of the largest health service companies in the US market, Cigna does business in 30 countries / jurisdictions through local licenses and business partnerships. We have over 70 million customer relationships around the world. • Cigna is a global health service company, dedicated to helping the people we serve improve their health, well-being and sense of security. • We make this happen through a broad range of integrated health care and related plans and services, and proven health and well-being programs that are targeted to the unique needs of our customers, clients and partners. 5
- 6. Where we are today • Strong financial results • Keenly focused on improving service to our customers • Innovative industry leading products Our Goal • Providing more seamless service and lower operating costs via better orchestration of:
- 7. Challenges to reaching our goals anual, complex workflow rocess variability, inconsistent execution rocesses patched vs. redesigned epartmental silos imited visibility into process execution ack of performance measures for core end-to-end processes
- 8. Solutions of the past • Solutions were myopic – solving the most pressing problems first • Solutions created new challenges • Focus was on cost savings, or headcount reduction, or outsourcing strategies, and not always strategic • Business and technology solutions were not in concert • The underlying root causes were not always revealed
- 9. Our new approach to overcoming our challenges Business Strategy Customer Experience Business Design Business Goals and Measures Business Capabilities Business Processes Business Rules Business Information Organizational Setup
- 10. What is BPM Business Process Management (BPM) is a continuous quest to methodically understand your processes and find ways to align current and future resources to improve on pre-defined business outcomes
- 11. Our Nirvana Moment • BPM as an approach matches what we are striving to achieve • The methodology is proven with companies our size and is delivering tremendous value • We have used BPM toolings but cannot claim to have adopted the approach before • There is no downside to taking the initial steps • The investment to bring the decision makers on board is not a huge barrier
- 12. Reality Check • BPM adoption is not a cookie cutter solution just yet • It takes time, effort and most importantly commitment and sponsorship from the top • Its tough for people to buy into the BPM value and easy to drop out • People are immersed in other approaches which are also considered successful Unrelenting focus and commitment is key
- 13. Challenges to BPM Adoption: Culture • Moving from a technology-driven project culture • Identifying Process Owners • Lack of strategic future-state process thinking • BPM and Six Sigma: How to align? • Overall alignment of BPM and Corporate Strategy
- 14. Challenges to BPM Adoption: Process • Integrating BPM into Traditional IT System Development Lifecycle (SDLC) • Business Rules – where do these fit in? • Business Architecture is not fully established and embraced
- 15. BPM requires understanding how each part affects the whole… Process, Data, & Components Process Data Business affecting measuring Business KPI Policy Goal Logical Physical affecting resulting Data Data Attribute Attribute measuring affecting Function containing containing containing describing implementing SOP Business Logical describing Sub Function CRUD Physical Data Data Data Entity containing Entity Entity including Function CRUD Activity CRUD Process supporting describing affecting Physical Conceptual implementing Process being including Application/ Application including including Service Business Business being affecting Rule Capability Process supporting Activity originating Invoked by Legend: Cardinalities: Process affecting Business describing 1 Invocation passing Item 0,1 Components 1,n supporting 0,n
- 16. Challenges to BPM Adoption: Technology • Much more than features and functions or modeling tool • Moving from Visio to IBM Websphere model views • BPMN 2.0- what do we adopt now? • Artifact Management
- 17. Successes of BPM Adoption We are… • Gaining much better visibility into our processes • Producing better system requirements • Enabling the business to define and improve processes agnostic of the technology solution. • Raising the importance of Business Architecture and its role in the organization – Scoping projects in the context of business architecture – Properly handling project and process overlaps • Integrated BPM into Traditional IT SDLC • Leveraging visual models to drive process-driven requirements – As is models: capturing pain points – To be models: aligning models to process goals 17
- 18. Path forward • Process and Rules planning till 2015 with incremental value attainment • Take it on.. keep the focus • Will there be setbacks – Yes • Will it be hard work – Yes • Will the effort be worth it – Absolutely!!
- 19. Q&A Kevin Hutt– Assistant Vice President, BPM Delivers BPM initiatives at Cigna in the Healthcare segment Kevin.hutt@cigna.com Anant Gupta – Vice President, BPM & Connectivity Provides BPM initiatives guidance to clients primarily in the BFSI and healthcare sectors agupta@prolifics.com 19
- 20. 20
Editor's Notes
- Kevin Hutt is an Assistant Vice President of BPM at Cigna. In his role he is responsible for delivering BPM initiatives at Cigna in the Healthcare segment. He leads a team of Process Architects and BPM analysts that specialize in re-engineering customer-critical, cross-functional processes in support of Enterprise Programs and Continuous Quality Improvement initiatives. He has over 15 years of experience in the Healthcare space and well as holding a variety of roles within IT and Business Operations. Kevin holds a bachelors degree in Finance for the University of Connecticut and a Masters in Computer Science from Rensselaer Polytechnic Institute (RPI). Anant Gupta is the Vice President of BPM & Connectivity at Prolifics. In his role he is responsible for providing guidance to clients around their BPM initiatives primarily in the BFSI and healthcare sector. He leads a global team of Process Architects and BPM analysts that specialize in understanding the process landscape and charting out a roadmap for measurable improvement through detailed analysis and prioritization workshops. He has over 10 years of experience in the BPM space and has worked as a business integration architect prior to that. Anant holds a bachelors degree in electronics engineering from Delhi University and an MBA in Finance from New York University
- A holistic process-centric approach to addressing business challenges Align business strategy with process execution Visualize processes through process modeling Current and future states Improve processes through optimization and redesign before applying automation Implement BPM technology to support the new process Workflow automation Business rules management Performance monitoring 1) We start by aligning our Vision/Goals to the voice of all customers (Clients, Customers and HCP Partners) 2) We employ Process modeling./simulation which enables more precise Workflow Definition and Validation 3) We implement a robust technology stack that supports Process Execution and Management 4) The technology stack includes real time performance monitoring which enables our ability to act on fact. -This is what makes BPM different than other CQI disciplines 5) Finally, we will the reduce the cycle time of process improvement through continuous process re-engineering
- Moving from a Technology-driven project culture Observation: Business and IT did not speak in process terms – rather org or application silos Projects presented in terms of technical enhancements as opposed to how goals to be met Recommendation: BPM team worked with program office to change project charter template to include (process owner, process scope, firstcut process goals) Takeaway: Getting BPM right requires more rigorous work in project definition phase in terms of defining process scope, goals. Plan for the additional upfront work as it will pay off down the line Finding Process Owners: Observation: Critical to establish measuring cross-functional process performance and aligning to overall business goals Need an overall decision maker to provide guidance for the goals and approve the to- be models Need renaissance leaders- many of which already have a day job Recommendation: Have sold the concept to Executive leadership team Identified our initial set of process owners Planned set of induction activities for Q2 2012 Takeaway: Process Owners are critical for defining the goals for cross-functional, customer-critical processes Start early with the identification and on-boarding of these leaders Lack of strategic future state process thinking Observation: Challenging for project team participants to design future state processes that align to end state vision/goals Recommendation: Centering our to-be design around process goals Organizational Change management activities Takeaway: - Take some time to establish a vision for your future state process with senior leaders - Train your teams on the possibilities of BPM workflow capabilities BPM and Six Sigma: Observation: Six Sigma operated independently of BPM Use of process models not an integral part of the Six Sigma approach Recommendation: Recognition of the synergy of BPM and Six Sigma was reinforced Six Sigma techniques a valuable part of process analysis The process models are very valuable to process analysis to identify where in the process problems surface and where root causes exist Takeaway: There is a lot of confusion of how BPM and Six Sigma interrelate Figure out what are the real interconnect issues for your company and get creative on how to create new synergies Overall alignment of BPM/Corporate Strategy Observation: Tying BPM to Customer Centricity Recommendation: Involving Voice of the Customer within process design work We include customer activities in the actual models. Launching an education and communication plan to increase awareness of BPM Concepts and how it supports Enterprise Strategy Takeaway: There is a strong correlation between being process centric and customer centric, but they are still two different concepts. Figure out the interconnects between the two and synergize
- Integrating BPM into Traditional IT SDLC Challenge Not enough time allowed up front for new BPM activities Overcome by: Rigourous re-planning to incorporate these activities Broad education with regards to why these new activities are needed Formal Program Gate Reviews now include BPM artifacts us Tight integration now of BPM and IT SDLC processes and artifacts Takeaway: BPM means new project tasks-many times earlier than the traditional SDLC Plan for integration activities with New BPM and Traditional SDLC Business Rules Challenge Clear that rules need to be externalized and also align to our business policy Discovery of business rules via process analysis needs Rigourous definition. Not easy! Overcome by: Overcome by really digging into how business rules should be discovered, verified and documented while doing process analysis. Still need to address how a "mining project" works when looking at an application rather than a process. Takeaway: Business Rules is an entirely different discipline than modeling process Integrating Business Rules discovery into Process Analysis can be complex. Seek help if you need it Business Architecture not fully established Challenge -Need to support large program initiatives - many people read articles and think they know what to do. There are a lot of subtleties and implications that most people are not aware of, but they barge in anyway Overcome by: Takeaway: Next Slide
- While it is much easier to start a BPM program with a single isolated process, very quickly it becomes clear that to have a coherent program a bigger picture exists and needs to be understood. There are three main core areas of business architecture, and then several aspects that change over time The stable parts of Business Architecture include: What the company does (One approach is a Functional Decomp) The set of processes they execute (just the list) The Business Information (Conceptual data Model) need to do what the company does The types of “Conceptual” applications (not just I/T) to support what the company does These remain stable as long as they only represent “what”, and not “who” and “how”, and usually only change if the company goes into a new type of business (e.g. when Cigna decided to run a mail in pharmacy – nothing to do with insurance) By understanding that core, it becomes possible to more easily categorize and organize the processes and create coherence in describing what is passed process to process (information / business items) and what types of systems support them. If I/T is working to the same picture, a solid link is formed between the business and I/T
- Much more than learning features and functions or modeling tool Challenge: Initially, we were trained on how to use the features and functions of the tool Did not have business architecture in place to give our models Process Inventory Functional Decompositon Business Data models Overcome By: Establishing core aspects of business architecture in order to provide context for our models Takeaway - Don’t assume just because you know the features and functions of a tool, you know how to model a complex end-to-end customer process Moving from Visio to IBM Websphere model views. Challenge: The audience for each model type needs to be identified and the appropriate view constructed Project teams constantly asking for print outs Overcome by: Defining four primary views for our core audiences Getting folks comfortable with Websphere Business Compass Takeaway - It will take a bit of an adjustment for your stakeholders to see process represented in something like Websphere Modeler, Blueworks or Process Designer. Plan for it and adjust BPMN 2.0- What do we adopt now? Challenge: BPMN 2.0 offers a very expressive modeling notation which is great, but can be overwhelming with a big blast rollout Overcome by: Determining which aspects of the notation will give us the most bang for our buck and rolling those out first Takeaway Every solution does not need a problem. Take advantage of the graphical elements that apply to your problem set Artifact Management Challenge process library and common process artifacts? If you leave people to their own devices, models will become scattered, not a coherent set, and inconsistent in terms. Overcome by Hiring a "Librarian/Common artifacts" guru to make this happen - more robust than we have done to date. Takeaway You will be building a lot of models. Plan for a librarian role.
- People/Culture BPM puts forward a strong unifying vision, but.. Getting started early on the cultural barriers is key Lots of gut check moments to go back to the old way Hard to get people to think strategically about process Don’t go it alone and Start Staffing Early Bring in trusted advisors who have done it before if you don’t already have them on board Not many folks who have done it before Process Go hard at BPM/IT SDLC integration Go hard at creating a robust business architecture Tools More to tools than features and functions
- Kevin Hutt is an Assistant Vice President of BPM at Cigna. In his role he is responsible for delivering BPM initiatives at Cigna in the Healthcare segment. He leads a team of Process Architects and BPM analysts that specialize in re-engineering customer-critical, cross-functional processes in support of Enterprise Programs and Continuous Quality Improvement initiatives. He has over 15 years of experience in the Healthcare space and well as holding a variety of roles within IT and Business Operations. Kevin holds a bachelors degree in Finance for the University of Connecticut and a Masters in Computer Science from Rensselaer Polytechnic Institute (RPI). Anant Gupta is the Vice President of BPM & Connectivity at Prolifics. In his role he is responsible for providing guidance to clients around their BPM initiatives primarily in the BFSI and healthcare sector. He leads a global team of Process Architects and BPM analysts that specialize in understanding the process landscape and charting out a roadmap for measurable improvement through detailed analysis and prioritization workshops. He has over 10 years of experience in the BPM space and has worked as a business integration architect prior to that. Anant holds a bachelors degree in electronics engineering from Delhi University and an MBA in Finance from New York University