BPM Powered By Smart SOA

Paul BrunetVice PresidentWebSphere and BPM

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Organizations are raising the bar by continuously improving their business processes

Localized processes

Globalized processes

Automatedand Visible

Optimized and Dynamic

CIO's top priority over last three years: “Improving Business Processes”

Source: Gartner, “Making the Difference: The 2008 CIO Agenda,” Jan. 2008

Agility and Innovation

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BPM Powered By Smart SOA drives agility and innovation through business processes

BPM leverages a strong SOA foundation for process flexibility and responsiveness

SOA at the core of BPM:

Foundational ExtendEnd-to-End

Transform AdaptDynamically

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BusinessView

Business ProcessManagement

SOA Foundation & Infrastructure

Business and IT Alignment is critical for success

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BPM provides benefits across a broad spectrum of business processes

Simple and

Localized

Complex and

Globalized

Payments

Supply-Chain

Contracts

Structured

Unstructured

Claims

Case Mgmt

Merchandising

Employee

On-boarding

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Organizations leverage BPM to address critical business needs

“Greater efficiency and reduced costs”

“Real-time visibility for smarter decisions and actions”

“Faster and easier response to change”

Common BPM Adoption Patterns Business Needs

Process Automation

Insight and Action

Adapt and Respond Dynamically

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Process Automation improves business efficiency and reduces costs

Simplify or eliminate exceptions

Efficiently manage manual tasks

Streamline business activities

Ensure consistency and compliance

Improve Business Performance

Improve Business Performance

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Process Automation eliminates inefficiencies and streamlines processes

�Seamlessly automates manual tasks, IT systems, and information

�Complements and extends current applications

� Leverages reusable process components

IT Systems

Automated Process

InformationManual Tasks

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End-to-End Processes Span Silos

Extending Process Automation end-to-end increases business value by spanning silos

Straight Through Processing results:

� Lower costs

� Reduced cycle time

� Greater consistency

� Easier to manage

Sales FinanceOperations Partners

Reduce staff

associated

with manual

interventions

by 85%

Source: North American company supply chain process

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Process Automation requires process integrity to scale for future business needs

� Businesses live by their Service Level Agreements

� Accommodate demanding, transaction intensive processes

� Process flexibility based on SOA-based

Source: IBM results for market leading financial services firm. Measured from gateway to order matching engine and back

SOA

Automated Processes

Application Application

Content

Best of Both: Flexibility combined with scalability and reliability

Human

Tasks

U.S. financial service firm processes1.2 million orders per second

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Enabling Insurance “Operations of the Future”

Industry Pains� Costly and

inefficient processes

Automate processes, reduce manual tasks, reuse assets, and accelerate the pace of change for operational improvements.

Why BPM Powered by Smart SOA?

Smarter Business Outcomes:� Globally optimized claims process with reduced processing

costs, faster claims cycle times and improved visibility� $50 million in projected annual savings

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2008 Mar 3 Mar 10 Mar 17 Mar 24 Mar 31

85% of CEOs Surveyed Require

More Insightinto their Business

Insight and Action allows you to capitalize on opportunities and mitigate risks

Source: IBM Global CEO Study 2008

Fannie Mae Freddie Mac

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Process Visibility provides customizable, role-based views for faster and smarter decisions

Real-time information aggregated

onto customizable dashboards Business leaders monitor

process KPIs and receive alerts

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Model and

Simulate

Monitor, Predict and Act

End-to-End Processes

Rapidly Deploy and Change

Continuously Optimize

Leverage Insights to continuously improve and optimize your processes

Sales FinanceOperations Partners

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Reduce TCO by 35%

Accelerate acquisitions by 69%

EMEA

Bank

Reduce costs by 35%

Accelerate time to value 80%

US

Bank

Grow top line revenues 15%Reduced costs by 30%

US Insurer

Accelerate time to value 64% Reduce Operating Costs 31%

EMEA

Telco

BenefitsClient

Source: IBM results from client Business Value Assessments

Process Optimization delivers sustainable performance with processes designed for change

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Large companies can experience up to 800 Billion business events daily

Untapped knowledge and insights are contained in business events all around us

Nearly 4 TrillionRFID events are emitted each day

Over 190 Billionemails are sent daily

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Our Event Driven World

An event is:� An occurrence or something that takes place� E.g.: An airplane lands, a light turns green, sharks swimming at the Baltimore

Aquarium

A business event is:� An event that has relevance to the business � E.g.: Text message (Each day more are sent than the population of the world)� E.g.: Bank account password change, a website visit, an email offer

Business Event Processing:� Correlating heterogeneous events together in order to achieve smarter business

outcomes� E.g.: Marketing Campaign

– Attended a seminar

– Member of specified Facebook group (11th largest population in the world)

– Downloaded a whitepaper

� E.g.: Energy efficiency (67% of electricity wasted in US)– Person leaving a room

– Sensor reading in a home

– Weather pattern moving through to reduce waste

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Complex Event Processing

Actionable Business Context

Event pattern detection

Correlation analysis

Real-time event visibility

Event emitters

and sources

AggregationCausality

Complex Queries

+

Capture actionable insights from real-time business events

Patterns and correlations elevated to business users

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� Transport logistics – RFID Asset Tracking

� Warehouse logistics –Supply Chain optimization

Two Key Projects

Airbus Extends BPM with Business Event Processing

Business Benefits

Errors

Operational Events

Key Business Performance

Indicators

Notifications

“Improving visibility is a pre-requisite

to improve the

‘Way of Working’ & to deliver business

savings”

– Carlo Nizam,Head of Value Chain

Visibility & RFID, Airbus

� Visibility to operational events

� Event-driven triggers signal anomalous issues

� Exception management and action

� Metrics track business performance

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SAP & other legacy applications

Business process execution

Enterprise track & trace repository

Central Edge (Device configuration & Data

capture)

RFID Devices

Business Activity Monitoring

WebSphere Premises

Server

WebSphere

Process Server

OAT EDM

WebSphere Business Monitor

IBM / Airbus Architecture at a Glance

OAT Xpress Local Edge(Device control & Data capture)

Best RFID Implementation

Winner!

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BPM with BEP puts the power of business events in the hands of business users

� Broadest range of event sources

� Business user interface

� Massive scalability and speed

� The Power of BPM to respond

BPM

Business UsersRespond

Capture

Event Sources

!

Filter

Alert

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CICS Event Sources

Leverage mainframe transactions and events in powerful new ways

Stock

Trades WebSphere Business Events

Event Streams

Detect fraud and take action

WebSphereBusiness MonitorAccount

Transactions

Authorities

WebSphereProcess Server

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Insight and Action enables market leadership

Industry Pains� Inadequate and

costly access to injectible drugs

Leveraged greater visibility and insights to enable a powerful new business model for the healthcare industry

Why BPM Powered by Smart SOA?

Smarter Business Outcomes:� Detect and respond to disparate events such

as tampering, adverse reactions, pandemics� Optimize resources on-the-fly based on

visibility and insights

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Organizations face significant challenges adapting to today's marketplace

Past Today

Degree of

change

Change is occurring faster

Change is making a bigger

impact

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Organizational Leaders need new tools to Adapt and Respond Dynamically

Past Today

Expected delays in executing commands

Leaders today need a direct response

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IBM's BPM Suite is unique in enabling all Six Agility Enablers

Processes respond faster to changing needs when supported by Agility Enablers

PoliciesBusinessEvents

Service Selection

Active Content

RulesAnalytics

Business Process Management

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Agility Enablers deliver the direct response that government departments and agencies need

Analytics PoliciesRules

“Close the gap”between changes and the ability to implement them

Constituent service goals

are at risk

Modify service eligibility

requirements

Change field resource allocation

Direct Deploy Now

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� Empowers departmental administrators to “take the wheel”

� Enables administrative-IT joint governance

� Drives faster change with fewer IT resources

“8A” agencies get immediate

refund

Chapter “C” and “S”corporations are

processed monthly

For Phone and Web-based transactions

Policies enable administrators to steer processes

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What is a Key Agility Indicator (KAI)?

� Quantitative measurement of how quicklyand effectively you respond to change

What’s Available

� KAI Benchmark Wizard with 300+ KAIs

� Thought leadership whitepapers on agility across 10 industries

Benchmark agility with Key Agility Indicators

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Improving Agility and Market Leadership

Adopt BPM and SOA to model, assemble, and deploy reusable business services across the organization

Why BPM Powered by Smart SOA?

Smarter Business Outcomes:� Improve operational efficiency� Maximize customer access across multiple channels� Ease of doing business and delivery of highly

personalized services

Industry Pains� Aggressive

competition in

multiple markets

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IBM's BPM Suite addresses the full range of business process needs

Comprehensive set of collaborative, role-based capabilities to continuously optimize business

processes and adapt them to rapidly changing needs

Model and Simulate

Monitor, Predict and Act

Rapidly Deploy and Change

IBM BPM Suite

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IBM BPM Suite and Foundational Offerings

WebSphere Dynamic Process Edition

FileNet Active Content Edition

Extended Value Offerings:

Business Event ProcessingAsset repository for BPM

Collaboration ToolsAdvanced Analytics

Process Accelerators and Adaptors

BPM Methodology • BPM Professional Services • BPM Mentoring

IBM BPM SuiteFoundational Offerings:

Now Available!

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Accelerate your BPM success with industry accelerators and expertise

Financial

Government

Insurance

Manufacturing

Telecom

Utilities

RetailHealthcare

Transportation

� Industry Best Practices

� Industry Domain Models

� BPM Methodologies

� BPM and Industry Expertise

� Industry Content Packs

� Industry Solution Partners

� Industry Benchmarks

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Over 4600 BPMcustomers in over

30 countries and growing

#1 in BPMS market share� Market leading

products

� Deep industry knowledge and pre-built assets

� Largest partner ecosystem

� Global reach and scale

BPM from IBM Delivers Unrivaled Customer Value

Thank You!More information 7 October:http://www.ibm.com/software/info/bpm