1. BPM 101 Everything You Ever Wanted To Know About BPM* *But Were Afraid To Ask

2. My History in BPM Mid-late 80’s: from satellite imaging to document imaging to workflow Early 90’s: built desktop imaging/workflow product Mid-late 90’s: integrate custom imaging, workflow, EAI and e-commerce systems 2000-1: FileNet BPM evangelist 2002-now: BPM and Enterprise 2.0 consulting and industry analyst 2 Copyright Kemsley Design Ltd., 2011

3. My BPM Calling Card Column2.com: “a blog about BPM, Enterprise 2.0 and technology trends in business” Community of up to 3,000/day Best known for: Conference blogging Product reviews Independent opinions 3 Copyright Kemsley Design Ltd., 2011

4. Agenda Defining BPM The methodology and the technology The value of BPM Evolution of the BPMS Trends in BPM and BPMS Fit-to-purpose BPM Use cases in BPM Getting started and growing a BPM initiative 4 Copyright Kemsley Design Ltd., 2011

5. Defining BPM Part 1 5 Copyright Kemsley Design Ltd., 2011

6. Methodology AND Technology Copyright Kemsley Design Ltd., 2011 6

7. What Is AnEnterprise Business Process? Chain of activities producing a business result Usually spans functional silos Requirement to “manage the white space” between functional groups Target of high-value BPM efforts Copyright Kemsley Design Ltd., 2011 7

8. What is BPM? BPM is a management practice that provides for governance of a business’ process environment toward the goal of improving agility and operational performance. BPM is a structured approach employing methods, policies, metrics, management practices and software tools to manage and continuously optimize an organization’s activities and processes. Gartner Copyright Kemsley Design Ltd., 2011 8

9. BPM Defined A management discipline for improving cross-functional business processes The methods and technology tools used to manage and optimize business processes Copyright Kemsley Design Ltd., 2011 9

10. Business Process Maturity Model Copyright Kemsley Design Ltd., 2011 10 Source: OMG BPMM specification

11. How BPMM Works Copyright Kemsley Design Ltd., 2011 11 Source: OMG BPMM specification

12. The Value of BPM Copyright Kemsley Design Ltd., 2011 12

13. Copyright Kemsley Design Ltd., 2008 13 BPM Goals Efficiency Automating steps and handoffs Integrating systems and data sources Compliance Achieving and proving standardization Agility Changing processes quickly and easily Visibility See what’s happening in a process

14. Copyright Kemsley Design Ltd., 2008 14 Benefits of BPM Process improvement Cost savings Increased revenue Improved time-to-market Additional business opportunities Business agility through process agility Self-documenting processes

15. The Evolution of BPMS Part 2 15 Copyright Kemsley Design Ltd., 2011

16. History of BPM to mid-2000’s Copyright Kemsley Design Ltd., 2011 16 BPM Suite “Integration-focused” BPM “Pure-play” BPM Business activity monitoring Process governance Process simulation Business rules Process modeling Workflow (person-to-person) Simple workflow (build) Lightweight EAI (OEM) B2Bi extend extend extend extend EAI/IBS (system-to-system) Administrative BPM Collaborative BPM Embedded BPM

17. From 2005 To Now Model-driven development Emergence of standards Integration of key related technologies Social software impacts Composite development environment Market convergence and consolidation 17 Copyright Kemsley Design Ltd., 2011

18. What’s In Today’s BPMS? Process definition/ modeling tool Execution engine User interfaces Integration capabilities incl. web services Business rules Monitoring and governance Dashboards, reporting and analysis Simulation and optimization Application templates 18 Copyright Kemsley Design Ltd., 2011

19. Importance of Model-Driven BPM Reduces need for custom development Graphical model auto-translates to executing process: “zero code” BPM IT resistance to ceding control Enables business-IT collaboration Business people can create and view process models Business resistance to participation 19 Copyright Kemsley Design Ltd., 2011

20. BPM Standards Copyright Kemsley Design Ltd., 2011 20

21. Source: http://bpmb.de/poster 21 Copyright Kemsley Design Ltd., 2011

22. BPM and SOA Copyright Kemsley Design Ltd., 2011 22

23. BPM and SOA Copyright Kemsley Design Ltd., 2011 23 Process Step 1 Process Step 2 Process Step 3 Process Step 4 Service A Service B Service C Service D Service E Legacy System Database ERP System

24. BPM and SOA Together BPM is the “killer app” for SOA; SOA is the enabling infrastructure for BPM SOA alone only allows you to design and build a set of services BPM alone would require custom coding for each system integration BPM + SOA orchestrates people and services into a business process Copyright Kemsley Design Ltd., 2011 24

25. SOA and Process Modeling Discovering services What services already exist Whether existing services meet the needs Specifying services What new services need to be created What legacy functions need to be wrapped in services Copyright Kemsley Design Ltd., 2011 25

26. Implementing BPM and SOA Two basic approaches Bottom-up — SOA then BPM Generate services from existing apps Consume services in processes Top-down — BPM drives SOA Model processes Identify and build services required In practice, a combination of both approaches Copyright Kemsley Design Ltd., 2011 26

27. Issues and Challenges Different vendors and products SOA and BPM seen as competitive Competing standards Separate initiatives within end-user organizations Developed independently in different departments Different sponsors and champions Copyright Kemsley Design Ltd., 2011 27

28. Trends in BPM and BPMS Part 3 28 Copyright Kemsley Design Ltd., 2011

29. Business-Driven Trends in BPM 29 Copyright Kemsley Design Ltd., 2011

30. The Impact of Social Software Copyright Kemsley Design Ltd., 2011 30

31. What Is Enterprise 2.0? Enterprise-facing social software Business purpose, not purely social: Social interaction to strengthen weak ties Social production to collaboratively produce content SaaS or on-premise 31 Copyright Kemsley Design Ltd., 2011

32. Drivers For BPM + Enterprise 2.0 Changing user expectations Trends towards greater collaboration Lack of agility in many current BPMS implementations 32 Copyright Kemsley Design Ltd., 2011

33. Social Software Impacts:The Four C’s Collaboration Configurability Cloud Community 33 Copyright Kemsley Design Ltd., 2011

34. Design-Time Collaboration Multiple people participate in process discovery Internal and external Technical and business Captures “tribal knowledge” 34 Copyright Kemsley Design Ltd., 2011

35. Runtime Collaboration User adds new participants to leverage knowledge and relationship User discussions linked to process instance Threaded discussions Wiki pages Instant messaging Tags and categories 35 Copyright Kemsley Design Ltd., 2011

36. BPM Configurability Composite development environments now included with many BPMS UI forms development Container-based portal environment Ready-made BPM widgets Wiring interfaces between widgets 36 Copyright Kemsley Design Ltd., 2011

37. BPM in the Cloud Reduce capital costs Full capabilities of on-premise version Design and run from anywhere Key targets: Business process outsourcers Small and medium business Business-to-business processes 37 Copyright Kemsley Design Ltd., 2011

38. Process Event Streams Publish and subscribe model for process events Changes to models Runtime process instances Increases visibility Increases participation Supports wider variety of devices, including mobile Copyright Kemsley Design Ltd., 2011 38

39. Online BPM Communities External communities of practice Provide idea exchange, tools Augment or replace internal BPM center of excellence May be vendor specific/sponsored Internal center of excellence Discussion forums Collaboration linked to process models Collaboration linked to process instances 39 Copyright Kemsley Design Ltd., 2011

40. Agile/Dynamic BPM Copyright Kemsley Design Ltd., 2011 40

41. Work: Taylor vs. Drucker Scientific management Standardize processes to increase efficiency Management by objectives Participants choose actions to meet goals 41 Copyright Kemsley Design Ltd., 2011

42. Routine Work Routine work can be analyzed and a common pattern derived...it can be automated by traditional process automation means. Mastering The Unpredictable 42 Copyright Kemsley Design Ltd., 2011

43. Knowledge Work Knowledge work...does not have the level of repeatability found in routine work. When it comes to work automation, any advantage gained from similarities is overwhelmed by the additional costs of having to accommodate the differences. Mastering The Unpredictable 43 Copyright Kemsley Design Ltd., 2011

44. What’s Required For Agile BPM? Modify structured process models during runtime Manage unstructured/unpredictable and semi-structured work Provide real-time process intelligence to identify future problems and inform decision-making 44 Copyright Kemsley Design Ltd., 2011

45. From Structured BPM to ACM 45 Copyright Kemsley Design Ltd., 2011

46. ACM and BPM Together Process spawns exception case Case invokes process fragments Copyright Kemsley Design Ltd., 2011 46

47. Event-Driven BPM Copyright Kemsley Design Ltd., 2011 47

48. What Are Events? Events are how the “real world” interacts with processes and systems An action outside a process that impacts that process Real-time information Instructions Originating with people, sensors or other systems 48 Copyright Kemsley Design Ltd., 2011

49. Why Do Events Matter? Events make processes more responsive to internal and external situations Allow processes to respond to changing conditions Asynchronous information or control provided to process 49 Copyright Kemsley Design Ltd., 2011

50. Combining Events and Processes Event triggers a process System or sensor User action Process creates an event Process log Explicit message or signal Event interrupts or diverts process External error or cancellation Copyright Kemsley Design Ltd., 2011 50

51. Event-Driven Financial Process Scenario: loan origination documents Customer documents created or gathered in front office Transactions created by front office Back office verifies documents against transactions 51 Copyright Kemsley Design Ltd., 2011

52. Events and Process Inbound Events Process initiation from LOB system Document received from ECM system Manual override of documentation requirements Outbound Events Fraud detection Feedback and requests to front office Exceptions and escalations to tracking systems 52 Copyright Kemsley Design Ltd., 2011

53. Event-Driven Process 53 Copyright Kemsley Design Ltd., 2011

54. Business-Led Design Copyright Kemsley Design Ltd., 2011 54

55. How Business Leads BPM Efforts Process discovery/modeling Analysts capturing process models Users reviewing and modifying models Customization of composite applications Users optimizing their own work environment Analysts creating shared views without IT Dynamic BPM Users changing processes on the fly Copyright Kemsley Design Ltd., 2011 55

56. Fit-To-Purpose BPM Part 4 56 Copyright Kemsley Design Ltd., 2011

57. Types of BPMS Copyright Kemsley Design Ltd., 2011 57

58. Gartner’s BPM Use Cases Implementation of company-specific process application Support for continuous process improvement Business transformation initiative Redesign for process-based SOA Gartner MQ for BPMS, 2009 58 Copyright Kemsley Design Ltd., 2011

59. Gartner Use Case Characteristics(a.k.a. “Functions”) Copyright Kemsley Design Ltd., 2011 59 Business perspective on models Orchestration of end-to-end processes Rules engine Pre-built industry-specific content Management visibility and control Model-driven development …and more

60. Forrester Market Divisions Dynamic case management= document-centric BPM Comprehensive integration solutions= integration-centric BPM BPMS= human-centric BPM Forrester Wave for BPMS, 2010 Copyright Kemsley Design Ltd., 2011 60

61. Characteristics of Dynamic Case Management Strong enterprise content management (ECM) requirements Records management Search Content analytics Human-centric BPM capabilities Document approval workflow Ad hoc BPM centered on case file Copyright Kemsley Design Ltd., 2011 61

62. Characteristics of Comprehensive Integration Solutions Heavy integration requirements ESB Service registry, repository and governance SOA development environments Human-centric BPM capabilities Exception handling and escalation Copyright Kemsley Design Ltd., 2011 62

63. Characteristics of BPMS Web service and other lighter-weight integration Lighter-weight content management Focus on process application development Process modeling and design collaboration Process development and composition Collaborative work environment Copyright Kemsley Design Ltd., 2011 63

64. Evaluation Criteria for BPM Copyright Kemsley Design Ltd., 2011 64

65. BPM Evaluation Criteria BPM “style”: integration, human-centric, document-centric Collaborative modeling Process design Application composition/development Business rules ESB/SOA Copyright Kemsley Design Ltd., 2011 65

66. BPM Evaluation Criteria Collaborative/dynamic execution User-configurable user interface Analytics and reporting Simulation Process optimization Copyright Kemsley Design Ltd., 2011 66

67. Starting and Growing a BPM Initiative Copyright Kemsley Design Ltd., 2011 67

68. Getting Started With BPM Picking the right first process Small enough to be manageable Big enough to be relevant Expected return on investment (ROI) Gaining business buy-in Collaborative process discovery and design Ongoing involvement during prototyping and implementation Control over production runtime environment Copyright Kemsley Design Ltd., 2011 68

69. Making It Work Ensuring user adoption Building a user-centric, user-configurable solution Providing benefits to individual users Measuring success Before and after comparisons Post-implementation reviews Hard and soft ROI Understanding disruptive benefits Copyright Kemsley Design Ltd., 2011 69

70. Expanding the Initiative Deeper integration Increase benefits through integration and automation Wider adoption across the organization Generalizing the benefits Finding points of integration with initial processes BPM Center of Excellence Skills and resources Shared artifacts Copyright Kemsley Design Ltd., 2011 70

71. Summary Copyright Kemsley Design Ltd., 2011 71

72. Summary The history and evolution of BPM Current trends in BPM Types of processes and BPMS Starting and growing a BPM initiative Copyright Kemsley Design Ltd., 2011 72

73. Questions? Sandy Kemsley Kemsley Design Ltd. email: sandy@kemsleydesign.com blog: www.column2.com twitter: @skemsley 73 Copyright Kemsley Design Ltd., 2011