Business Process Management Systems

Description
It also presents the case study of Real-Time Business Process Risk Analysis and Monitoring.

Business Process Management System

What is BPM ??

BPM Concepts
People
- Creating, nurturing & growing Business Relationships -Foundation to achieving consistently superior quality deliverables - De-risking from over-dependence on technology & people

Processes

BPM
Systems
- Indispensable means to be able to scale business volume through transaction automation

BPM provides seamless integration of information across People, Processes and Systems

Processes are cross-functional

Overview

“Cross-functional end-to-end processes are the ones that matter most to the bottom line: to overall efficiency, customer satisfaction, compliance, and responsiveness”
- Bruce Silver, “The 2006 BPMS Report”

BPM - Evolution
Pre- 2002 2002 and beyond Orchestrate a cross-function business process
BPM

Automates a single business function

BPM

BPM

Business function A

Business function B Business function A Business function B Business partner

• IT developer’s model process

• Single business unit participates in processes • Solution relies on proprietary integration infrastructure (message queues and adapters)

• Business analysts model processes • Multiple business units and business partners
participate in processes • Solution leverages integration standards (JCA, JMS, Web services)

Source – Forrester Research Inc (TechStrategyTM Research: The Right Way To Manage Business Processes

BPM Concepts
People
- Creating, nurturing & Optimize growing Business Relationships -Foundation to achieving consistently superior quality deliverables DefineDe-risking from over-dependence on technology & people

Processes
Analyse

Continuous Improvement

BPM

Deploy

Systems
- Indispensable means to be Monitor able to scale business volume Execute through transaction automation

What is a BPMS ?

Business Process Management System (BPMS) – what is it?
BPM System
Process Owners User Authentication Role based Systems, Policies

Define / Modify Rules

Business Rules

Refine Processes Feedback
Underwriting Loan Origination Loan Delivery

People

Loan Vendor Loan Data Entry Underwriting Production Operation Processing

Loan Closing

Loan Audit

Investor Payment

Loan Specialist

Monitoring Old Processes Process Modeling / Transformation New Processes

Reporting

Business Activity Monitoring

Processes
Integration
Technological Interfaces & Inter-communication

Technology Systems
ERP Systems SCM Systems CRM Systems Legacy Systems LDAP Systems Other IT Systems

BPM Engagement Phases – Where BPMS Comes to Picture ?
Competition / change in business landscape

Business – customers & competition
Business Consultancy Services Expertise in process discovery, modeling and analysis Process Consultancy Services using various standard tools

Quest for areas of improvement

Triggers

Customer organization Service levels

GAP / root cause analysis

Process Discovery/ Re-engineering Process Analysis/ Modeling

Package implementation

? Expertise in leading Pure Play BPM Products Package Implementation ? Global Offshore Advantage

FlowCustomized solution development

Custom Development Services briX – Wipro’s Innovative Reusable framework

ADM Services Wipro –maintenance A Global Cost Effective leader in this space Professional Services - BPO
Deployment &

Why BPMS?
Why do113 out of 145 business and IT decision-makers say they have already completed, are piloting, or plan to implement BPMS?

The answer — BPMS empowers enterprises to:

? Manage cross-functional, customer-facing and interenterprise business processes ? Realize benefits, like shorter cycle times, increased productivity, and satisfied customers ? Improve management control ? Increase effectiveness of outsourcing efforts

? Achieve agility in spite of systemic limitations in business apps
? Lock down processes to meet quality initiatives and compliance regulations
Source: Forrester Research

Components to Meet BPM Requirements
Process Definition
Create Process Flow

Process Modeler, Simulator Business Rules Editor

Define Business Rules
Process Analysis & Simulation

Execute Workflow

BPM Engine Business Rules Engine Business Application Integrator

Process Execution BPMS

Execute Rules Integrate with Applications

Offline Reports

Process Monitoring

Business Activity Monitoring (BAM) Online Filters

Business Activity Monitor

Process Editor LEGEND
User Interfaces Server Components

Process Change

Version Management

Process Version Manager

Flow Change

Core BPMS Components
Process Modeler
Process Modeling and Analysis

Process Monitor
Real-time Monitoring and Management

Workflow/ BPM Engine
Business Process Workflows

Rules Engine
Business Rules

Invoke Invoke Invoke Invoke

Execute

Invoke

Business Application Integrator
Enterprise Services – Business Functions
Routing Pub/Sub Transformation Transport Mediation

Types of Business Processes

Source: Forrester Research

BPMS –Two Major Categories

Evaluation Criteria: Human Centric BPMS
Evaluation

Select Right BPMS

Human Centric BPMS Comparison

Lombardi Software, Pega Systems, and Savvion lead the pack
?Lombardi provides the strongest simulation and optimization ?Savvion has excellent architecture and good process modeling ?Pega differentiates through frameworks and support of state-of-arts Business Rules Management ?TIBCO has come roaring back with a major refresh of the Staffware suite- Advanced UI and Integration ?Fuego has a strong application development and integration platform ?Fuego, HandySoft, Metastorm, and TIBCO bridge the gap in human and integration BPMS ?FileNet is also the undisputed king of BPMS for document-centric processes ?Fujitsu —while a strong performer — needs more functionality to break out of OEM sales ?Ultimus — a contender — delivers strong functionality to Microsoft shops.

Human Centric BPMS: Gartner’s Magic Quadrant

Source: Gartner

Evaluation Criteria: Integration Centric BPMS
Evaluation

Select Right BPMS

Integration Centric BPMS Comparison
webMethods, TIBCO, IBM, Oracle, Sun, BEA Systems, and Software AG lead the pack
?webMethods augments its traditional integration capability with extensive BPM capability ?TIBCO covers both integration-centric and human-centric (through Staffware) features ?Oracle has strong integration solutions with BPM capability via a partnership with IDS Scheer ?IBM has significant BPM and SOA capabilities with industry specific process templates ?BEA Systems has now strong SOA features with BPM (through Fuego) ?Sun through SeeBeyond Technologies now a leader in this space ?SAP NetWeaver provides strong integration, BPM, and but need to support standards like EDI ?Vitria is strong in integration but need to improve on the BPM ?Microsoft- With BiZTalk it has good integration , but need BPM capabilities ?Cordys- It has a broad suite of integration, BPM, and SOA features but lack depth

BPMS: Market Trend

Forrester – BPM Market Growth

?

Compounded Annual Growth Rate (CAGR) >
20 % between 2005 and 2009 More than 150 companies offer BPM solutions

?

Market is active with mega size M&A deals – ? IBM => FileNet @ US$ 1.2 B ? TIBCO => Staffware @ US$ 320M ? BEA => Fuego @ US$250 M

?

World-wide BPM Implementation-Sector Wise
Process Manufacturing 2% Local and Regional Govt Discrete 2% Manufacturing 2% Utilities 3% Services (includes IT Services) 5% National and International Govt 8% Healthcare 10% Communications 12% Education 2% Retail Trade Transportation 2% 1% Others 5%

Financial Services 46%

*Source: Gartner Research

Interest in BPM is high!

*Source: December 5, 2006: Forrester Research

Flow-briX: Case Studies

Case Study: Real-Time Business Process Risk Analysis and Monitoring
Before
? The client had various systems capturing risk data such as losses, metrics, and capital - but no Business Process focused view of risk ? Business units struggled with defining and understanding Business Processes ? Risk managers desired a solution for defining and monitoring activities in a holistic and robust manner ? Senior risk managers desired a concise and holistic view of risks faced while performing Business operations “The Flow-briX framework provided a great level of customizability so that we could meet both the business challenges and the technical requirements needed for our solution.” – Senior Architect of client organisation commenting on the Risk Management solution developed on Flow-briX

How Wipro helped
? Wipro customized a proprietary Business Process Monitoring solution based on Flow-briX, Wipro’s BPM framework. ? Wipro led requirements meetings and workshops with business and risk managers to: ? Define end-to-end Processes as they occur in the organization ? Utilize Wipro’s tool to identify Gaps in control environment ? Develop sophisticated “what-if” scenario analyses ? Wipro implementing the resulting solution, which included customization and integration with existing systems

After
? Wipro built a web-based solution and integrated it with multiple systems to source and aggregate data in real-time Flow-briX Cockpit and Dashboard allows an organization to map and monitor Business processes across several systems, providing an end-to-end view of risk

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System is scalable to additional systems for capturing and monitoring metrics and transactions
Capable of Process activity monitoring – following a transaction as it flows through several systems, monitoring metrics and performance along the way Able to maintain inventories of analysis (libraries of metrics, period-to-period comparison, etc.)

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Case Study: Real-Time Business Process Risk Analysis and Monitoring

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Business Processes sourced from reference data Capital allocated on an Activity and Control level State of control environment Real-time monitoring of losses and failures Configurable heat-map features for performing gap analysis Scenario Analysis: ? What if this Activity fails? ? What are the savings from fixing a control gap? ? What if I outsource this Activity?

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Drill-down capabilities into underlying systems

Thank You



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