IBM ECM Executive Summit
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Business Process Management Towards a Super Regional Bank BPM & FileNet IBM ECM Executive Summit 2008 Barry McGill – Head of BPM, ANZ Bank August, 2008
Presentation Content
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BPM – The ANZ definition
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Goals and the value proposition of BPM
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Technology context for BPM at ANZ
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Challenges & Actions
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Lessons to share …
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Business Process Management (BPM) is about continuously optimising essential end-to-end processes in pursuit of organisational performance objectives
ANZ’s View
BPM combines a set of methods, tools and techniques to design, deploy, analyse, and change operational business processes. It combines 1. quality improvement and re-engineering principles such as Lean Six Sigma with a maturing breed of BPM technologies (BPMS)
Change in Approach
6σ
Enables (and requires) a collaborative approach between Business and IT
2. to build agility, flexibility and performance insight into essential end-toend business processes
Change in Partnering
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We are working towards three main goals by adopting BPM …
Benefits
1.
Improve the Customer experience • Increased ‘straight-through’ self-service for convenience and responsiveness • Manage exceptions quickly to remain within agreed customer SLA’s • Increased automation for Staff to focus on value add activities for customers
2.
Achieve Operational Excellence • Support regional processing ‘hubs’ / consolidation agenda • ‘Right-sized’ end-to-end processing cycle times • Streamline management of exception handling (lower cost, faster turnaround) • Increase levels of Straight Through Processing (STP) • Support risk and compliance through real time business activity monitoring • Optimise workforce productivity through skill-based routing to available resources • Provide focus for IT investment on prioritised business processes
3.
Enable Agility and Innovation • Rapidly model performance of products and services before launching to market • Re-deploy best practice processes to acquired or merged businesses • Enable customer tiered servicing based on value of customer relationship
On average organisations are experiencing operational performance improvements in the 15 – 25 percent range. They are also increasing customer satisfaction (revenue) through improved offerings and services …
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Why BPM ? Value Proposition
1. Allows ANZ to better manage and change business processes …. Model changes to product/service processes before we deploy to determine impacts for business and customers
Enable agility, flexibility and responsiveness in our processes to cater for changing market conditions and customer needs/preferences
Increase processing insight and control to better serve customers and optimise business operations
2.
Producing a number of outcomes and benefits
Major Benefits for ANZ
• Faster customer servicing including increased STP based self-service • Increased workforce productivity • Faster time to value / market (getting new capability to market faster and cheaper)
• Increased customer satisfaction • Staff focus on value-add work for customers • Lower operating costs • Increased processing efficiency • Real-time process performance insight
15 – 25% gains
Goal of 80% STP 5
BPM from a ‘BPMS’ perspective is an important enabler to a number of future projects across each of our Divisions within ANZ – for us this is about the IBM BPM Suite .. Technology Context
1.
Business transformation priorities Q1
Q2
Q3
Q4
Q1
Requiring new technology enabled Business Solutions
2010
2009
2008
2.
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Consumer Lending Automation Cash Management
Q1 Business Banking Originations
Back Office Servicing Offshore
2010
2009
2008
Global Payments
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Consumer Lending Automation Cash Management
Q1 Business Banking Originations
Back Office Servicing Offshore
2010
2009
2008
Risk Management Process Global Payments
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Consumer Lending Automation Cash Management
Q1 Business Banking Originations
Back Office Servicing Offshore Risk Management Process
2010
2009
2008
Global Payments Risk Management Process
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Consumer Lending Automation Cash Management
Global Payments Business Banking Originations
Back Office Servicing Offshore Risk Management Process
4.
Of which BPMS technologies will be required to execute and manage end-to-end business process
3.
That will be assembled from a mix of technologies from front (channel) to back-end (core banking)
Future end-to-end business processes will require multiple technologies to integrate end-to-end, with one ‘master’ BPM technology to manage overall execution ANZ are adopting the use of IBM’s Business Process Management (BPM) suite to manage endto-end processes. This consists primarily of FileNet (for People based work-queue and content management) and Websphere Process Server (WPS) for end-to-end process management and Straight Through Processing (STP)
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We are facing up to the challenges ..starting by driving a common view and approach to BPM across ANZ …
Process Modelling Efforts
Tech driven Process Improvement efforts
‘STP’ Projects Business Process Outsourcing projects ‘BPR’ Projects Technology driven Projects using MDA, SDLC, UML, SOA, EA etc etc
Too many discrete Process Change efforts underway using different approaches
Process Improvement
‘Automation’ Projects
Q1 Consumer Lending Automation
2010
2009
2008 Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Cash Management
Optimise
• Track Measures to identify performance improvement opportunities • Use available real-time Process performance insight to model ‘what-if’ impacts for changes to business, market and customer needs • Respond quickly to changing business, market and customer conditions, rapidly redeploy process changes to match these changing requirements
Execute
• • • • •
Define
• Define Process Transformation Priorities (selection matrix combines baseline performance assessment and Business Strategy priorities) including quick-wins • Define future (Renewed/Innovated) end-to-end Processes to meet required performance expectations for customer and business (modeled and simulated, metrics and measure based)
Understand
• Develop Process Architecture – Guidelines (including process scope, ownership, modeling method and structure, IT view and industry reference model use, LSS, DFSS), Business Process Models including classification and known business priorities • Establish BPM Governance – Process Vision, Ownership including stakeholders roles and accountability, Input/Decision Rights
Q4
Select deployment approach (scope and implementation scenarios) Develop new end-to-end process including people and technology components Execute deployment strategy for new process Monitor and adjust deployed process to realise performance Manage exceptions rapidly using Business Activity Monitoring
Business Strategy
Lean / Six Sigma / DFSS efforts
Programme & Project Management
What are we doing?
Process Governance
Process Framework
Global Payments Business Banking Originations
Back Office Servicing Offshore Risk Management Process
Business Process Priorities
Process Management Methodology
Collaborative and common approach focused on the most essential end-to-end processes
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We are establishing Business Process Platform (BPP) capability in preparation for Divisional project demands.. What are we doing? Business Transformation Programmes Personal Division
2010
2009
2008 Q1
Q2
Q3
Q4
Q2
Q3
Q4
Q2
Q3
Q4
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q2
Q3
Q4
Q2
Q3
Q4
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q2
Q3
Q4
Q2
Q3
Q4
Q2
Q3
Q4
Consumer Lending Automation Cash Management
Institutional Division Global Payments
2010
2009
2008 Q1
Q1
Q1
Business Banking Consumer Lending Originations Automation Cash Management Back Office Servicing Offshore Global Payments Risk Management Process Business Banking Originations
Asia Pac
2010
2009
2008 Q1
Q1
Q1
Consumer Back OfficeLending Servicing Automation Offshore Cash ManagementProcess Risk Management
Global Payments
New Zealand
Business Banking Originations
2010
2009
2008 Q1
Q1
Q1
Consumer Lending Automation Back Office Servicing Offshore Cash Management Risk Management Process Global Payments Business Banking Originations
Back Office Servicing Offshore Risk Management Process
Enterprise Business Process Platform (BPP) development 1. FileNet service delivery Platform & Centre of Excellence (CoE)
Business Process Platform Maturity 2.
• Add WebSphere Process Server •Create ‘Lite’ Workflow Platforms
3.
Increase FileNet Shared Platforms across Divisions
4.
Combine BPM practice as service offering under EIS for Process Integration Delivery
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We are building up our preferred suite of BPM Technologies – and applying ‘rules’ to their usage …. What are we doing? Recommended Use BPM Software Components
Design / Optimisation
2008
2009
2010
IBM FileNet IBM WebSphere Process Server (E2E) IBM WebSphere Business Modeller iLog (BRMS) CentraSite Repository / Registry
iGrafx and Visio (BPMN) Documentum
• Document/Records Management (e.g. Legal, Risk)
FileNet WebSphere Process Server (STP)
Execution
iLog (BRMS)
Documentum
Staffware 9.0 / Tibco IPE
Monitor
GTM2 (NZ)
WebSphere Business Monitor (BAM) Migrate
•Simple ‘lite’ Workflow (moving documents amongst peers for decision making, one step up from email & SharePoint as documents can be better shared, routed, audited etc). IBM WebSphere (Process Server)
CARbe 6.3
Under Review
IBM FileNet P8 • Content Centric processing where images, forms and documents are to be managed by people e.g. Mortgages and other forms of Secured Lending (content and work-queues). Websphere Process Server as the ‘master orchestrator’ where there’s a combined need to manage content, people, decisions, and integration across an end-to-end business process (i.e. utilise the full IBM BPM stack)
Standard
Recommended as the ‘master orchestrator’ for longlived end-to-end business processes whereby it will ensure the integration with all required underlying technology components in the management of the business process, including FileNet integration where a process needs to ‘step-out’ to people on a regular basis through work-queues for document sharing and management.
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We are building the Business Process Management (BPM) Frameworks with the right Business and Technology capabilities … What are we doing?
• Potential for IBM Information Framework (IFW) • Business Services exposure from packages including Finacle, Siebel, etc
ANZ BPM Service Delivery Framework including CoE based Lean Six Sigma (LSS), Design For Six Sigma (DFSS), Model Driven (Agile) Software Development (SDLC)
Process exposed in required technology context e.g. iKnow 2.0, Internet eChannels, Web 2.0
IBM FileNet eForms & BPF (‘lite’ workflow platform) Hyperion (Scorecards)
iGrafx, Process Modeler (LSS), WebSphere Business Modeler • IBM iLog • IBM WebSphere Fabric
• • • •
Process Modeler (LSS) iGrafx IBM Telelogic (TBC) WebSphere Business Modeler Software AG CentraSite (Process Registry)
• WebSphere Process Server (Integration Centric) • FileNet P8 (Document / Human Centric)
Governance including combined Business and IT BPM CoE & Process Councils
• WebSphere Business Monitor • FileNet BAM • Hyperion (scorecards)
iGrafx Process Central
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Lessons …. What have we learnt? …Lots! • Keep striving to get the organisation to agree on what BPM is (and isn’t), get it sponsored, have an agreed approach and execution plan, communicate, communicate, communicate … • Don’t try to boil the ocean – prioritise around the essential business processes with most benefit • Make it Business Driven – put the BA’s in the drivers seat and strap the IT team in the back • Setup a BPM CoE and seek external help to get started if required • Get the funding sorted out upfront – getting FileNet infrastructure up for projects can be a major hurdle especially for smaller projects – so focus on combining small projects onto a shared platform • Agree an agile delivery approach – pay attention to integration and data challenges, and set realistic delivery expectations. Find a good set of external partners to help with business and IT side of BPM (often requires different types of partners) • Use simple process maps to conduct Business Process improvement conversations with the business • Adopt BPMN at level 2 -3 process and develop ‘style guides’ for consistency across the organisation • Use BPF and eForms for small, low integration type projects • If you have both IBM Websphere and IBM FileNet – make it clear in the organisation about the usage • Look for early opportunities to adopt BAM – ‘how is the new process performing for our customers?’ is likely the first question asked by project sponsors when the new process is deployed using BPM – be ready to respond • Recognize that FileNet is often only one piece to an overall business solution – so integrate carefully and don’t be too ambitious !! After all BPM is about rapid continuous improvement, not 100% perfection day one .. • Be persistent … make believers out of the sceptics, and heroes out of the sponsors
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[email protected] – please feel free to contact me
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