Business Communication

An Introduction to Business Process Management: Tools and Techniques An Introduction to Business An Introduction to Business Process Management: Tools Process Management: Tools and Techniques and Techniques Presented by Arthur Hedge © Copyright 2007 Castle Ventures LLC •What is Business Process Management?

•Why it matters •Design Tools Ê Ê Stand Stand - - alone alone Ê Ê Integrated Integrated •Vendors •Questions Agenda Agenda Agenda 1. Way to Improve Operations 2. A Software Category “Business Process Management encompasses the design, automation, management, and continuous improvement of business processes.” What is It? What is It? What is It? •Definition of Business Process “A business process is the complete set of end to end activities required to complete a transaction that provides value to a customer.” Business Processes Business Processes Business Processes SUPPLIERS SUPPLIERS CUSTOMER CUSTOMER PROCESS PROCESS INPUT INPUT OUTPUT OUTPUT •Total Quality Management •Six Sigma •Lean •ISO 9001 Process Methodologies and BPM Process Methodologies and BPM Process Methodologies and BPM Processes must be managed and improved! This involves:

•Defining the process •Measuring process performance (metrics) •Reviewing process performance •Identifying process shortcomings •Analyzing process problems •Making a process change •Measuring the effects of the process change •Communicating both ways between supervisor and user Process Management Process Management Process Management Process embedded in codeProcess easily changed Presentation Layer Application Layer Data Layer Process Layer Presentation Layer Application Layer Data Layer Traditional4-Layer Architecture BPM Architecture BPM Architecture BPM Architecture Gartner Survey Gartner Survey – – BPM Project Success BPM Project Success Source: Gartner Research Report Experienced >90% success rates in BPM projects 95 95 % % Multi-department projects (3 or over) 75% 75% Projects completed in < 6 months 67% 67% Projects completed in 4 months or less 50% 50% Projects currently underway; 25% had 6 or more 75% 75% Source: Gartner Research Report Gartner Survey – BPM ROI Statistics Gartner Survey Gartner Survey – – BPM ROI Statistics BPM ROI Statistics Achieved at least >10% ROI 100% 100% Greater than 15% ROI 78% 78% ROI greater than $100,000 per project 77% 77% ROI greater in $100,000 - $500,000 range 55% 55% •Integrate applications across the entire business process •Provide a single point of entry for related data •Reduce or eliminate human error •Replace people tasks with automated tasks •Reduce or eliminate waiting time for tasks •Provide real-time status about processes to management Benefits Benefits Benefits •Started in the 1980s as an adjunct to Imaging and Document Management systems.

•For our purposes we are using a subset of potential definitions to refer to Workflow as the set of tools necessary to route, manage, and monitor the creation of Electronic documents.

•Structured and collaborative processes Workflow Workflow Workflow Problems Addressed by BPM Problems Addressed by BPM Problems Addressed by BPM = Content retrieval and publishing= X Creation of documents= Ad-hoc process flowX X Repeatable process= System-to-system communicationX = Human-to-system communicationX X Human-to-human communicationBPM WF •Procure to Pay Process Ê Ê Business Issues Business Issues ‹ ‹ 7 Payment methods, six manual 7 Payment methods, six manual Ê Ê Solution Solution ‹ ‹ Web Web - - Based Procurement Based Procurement ‹ ‹ FileNET Imaging System FileNET Imaging System ‹ ‹ SAP Workflow SAP Workflow •Inception to Order Process Ê Ê Business Issues Business Issues ‹ ‹ Lack of Clarity of Roles Lack of Clarity of Roles ‹ ‹ Inconsistent scheduling Inconsistent scheduling Ê Ê Solution Solution ‹ ‹ Map out Complete Business Process Map out Complete Business Process ‹ ‹ Define handoffs Define handoffs Examples Examples Examples •Casino Operations Business Issues ‹ ‹ Manual processes take too long, too many errors Manual processes take too long, too many errors Ê Ê Solution Solution – – Phase 1 Phase 1 ‹ ‹ Business Process Analysis Business Process Analysis ‹ ‹ Improve Data Integration Improve Data Integration ‹ ‹ Automate individual tasks Automate individual tasks •Reinsurance Company Ê Ê Business Issues Business Issues ‹ ‹ Lack of Communication between IT and Business Lack of Communication between IT and Business Ê Ê Solution Solution ‹ ‹ Map out Complete Business Processes Map out Complete Business Processes ‹ ‹ Training in Object Training in Object - - oriented oriented development development ‹ ‹ Integrated Solution Integrated Solution Examples Examples Examples •Graphical Design Tool •Integration with Analysis Tools •Version Control •Process Simulation •Forms Generator •User Management •Business Rules •Prebuilt templates Design Tools Design Tools Design Tools •Microsoft: VISIO •EMC: ProActivity Suite •Metastorm: ProVision •iGrafx: iGrafx Process •IDS Scheer: ARIS Process Platform •Casewise: Corporate Modeler •Telelogic Popkin System Architect •CA: ERWin Product Survey – Modeling Tools Product Survey Product Survey – – Modeling Tools Modeling Tools •Phaon: Beacon •Ultimus: Ultimus BPM Suite •Captaris: Captaris Workflow •Metastorm: e-Work •Lombardi Software: Teamworks •Savvion: Business Manager, Process Modeler •Appian: Appian Enterprise Product Survey – BPM Engines (SM) Product Survey Product Survey – – BPM Engines (SM) BPM Engines (SM) •IBM: Wepshere Business Process Integration Suite •IBM: FileNET P8 Business Process Manager •Documentum: Business Process Manager •TIBCO: iProcess Suite (From Staffware) •BEA: BEA Aqualogic and Fuego BPM •Intalio: Business Process Management System •Pegasystems: Smart BPMSuite Product Survey – BPM Engines (Large) Product Survey Product Survey – – BPM Engines (Large) BPM Engines (Large) DEMO BPM Tools BPM Tools BPM Tools 1. Have Executive Sponsorship 2. Have a Process Owner 3. Change Management Plan 4. Define Business Objectives 5. Understand Customer Objectives 6. Map out as-is process 7. Map out to-be process 8. Simulate to-be process 9. Develop iteratively 10. Be Prepared to Change Top Ten Rules for Success Top Ten Rules for Success Top Ten Rules for Success •BPM Recap •The benefits Summary Summary Summary Contact Information Arthur Hedge President of Castle Ventures LLC [email protected] 973-538-8004 Questions Questions Questions