Business Making Progress

Making 'Cents' of the Shifting Business Landscape

Last fall we collaborated with the Economist Intelligence Unit to look at how companies around the world are responding to the rapidly increasing pace of change in business. While I touched on some of the early quantitative results in a post for The Business Insider in September, the Economist researchers recently released some compelling qualitative data that shines a light on the ways organizations are tackling operational responsiveness.

 

A few key points caught my attention:

• Leaders need to be willing to conceive multiple futures and embrace uncertainty

“Companies need leaders who are tolerant of ambiguity and who can make others feel comfortable about that. They have to instill confidence in their teams that they are making the right decisions, even though it’s not clear how the future will evolve.” – Lowell Bryan, McKinsey

• Executives should listen to messages from the frontline 

“One of the most powerful sources of information about emerging adaptive opportunities and pressures lies at the frontline. Employees who interact with customers are always the first to get the clues and early warning signs about new sources of opportunity or competition.”

–      Ronald Heifetz, co-founder of the Center for Public Leadership at Harvard University’s John F. Kennedy School of Government

• Cultures will need to adapt 

“Most people have a bias towards the status quo, so when they are faced with a disruptive opportunity or threat, they see it as a virus they want to kill.”

-       Hal Gregersen of INSEAD

• Setting up a new division can be an effective way of managing disruptive change

“Setting up a separate unit with its own P&L and management allows that unit to focus on the breakthrough disruptive change, while the old unit can be shrunk down and moved to a space in which it can survive.”

-       Clark Gilbert, president and CEO of Deseret News and Deseret Digital, and a former professor at Harvard Business School

 

I encourage you to take a look at the Economist Intelligence Unit’s full report, Game Changer to hear more from these leaders and explore how you can affect change, stay ahead of competition and drive your bottom line.

And for those of you interested in more on the quantitative data, check out this infographic: 

Tweet and Be Damned

The following is an excerpt from Dr. John Bates’ recent commentary on Huffington Post, which discusses Twitter’s ability to predict financial market sentiment. 

Another firm has jumped on the Twitter sentiment bandwagon; Topsy Labs is planning to release a Twitter trading tool to investors later this year. Topsy follows U.K. hedge fund Derwent Capital, which launched a fund last year using a Twitter algo that claims to predict market direction three or four days in advance with nearly 88% accuracy. And U.S. firm Wall Street Birds, which offers a free service for investors to use to make investment decisions based on the analysis of social media data. (It has become so popular that to sign up you must get invited by an existing user.)

But are emotionally laden Twitter messages able to provide reliable bellwethers for market sentiment? As I said in an interview with Advanced Trading in April, I think you can use a Twitter algo to get a sentiment reading on particular topics, but by the time you've got the information it is more of a trailing indicator rather than a leading indicator.

Read the full post from Dr. Bates here. 

 

Consulting our crystal ball: IT Predictions for 2012

With the New Year just around the corner, many are busy thinking up unattainable diet and fitness resolutions, but we here at Progress have instead spent our time collaborating on more realistic forecasts for the coming year.

The team here at Progress put our heads together to produce our top predictions on how the role of IT within the business will change in 2012. An increased emphasis on cloud development, data security and social integration are all issues we expect organizations to prioritize over the next twelve months, but the list doesn’t stop there. Here’s a quick look at where we see business IT going in the coming year:

1. Cloud on the move. Organizations will increase deployment of the public cloud, escalating demand for cloud-enabled systems and applications.
2. Cost control evolves to efficiency. While cost was the main driver of cloud adoption in the past, the focus will now expand to include system efficiencies and time to market.
3. Data security starts with secure access. Who will have access to the data? How will it be encrypted? Who is the core owner? A strong driver that runs on a stable and tested data interface like ODBC is the best line of defense as application stacks continue to grow.
4. RIP: Non web-based applications. Approximately 80% of business apps will be web-based, and they need to be business process enabled, web-based and cloud-deployed.
5. IT border control. More than half of all content and functionality will be out of your organization’s control … in the hands of outsourcers, supply chain partners and external community databases. How will it be protected is the question du jour.
6. What’s in the fire hose? While we may see companies promoting fancy strategies for managing “fire hose data,” only those focused on responsive analytics will make meaning from the massive deluge.  
7. Limitations of freeware. This year, we will see greater support for ODBC and investment in data connectivity as companies look for dependable, robust ODBC drivers to handle financial transactions securely and quickly.
8. All hail the social enterprise. Social collaboration apps will dominate as employees look for ways to more effectively share and innovate across regions and lines of business; in fact, users will begin to expect these capabilities to be offered as standard, embedded features in business applications. 

And there they are: Progress’ IT predictions for 2012… how do they stack up to what you have in mind? We welcome comments below or on Twitter at @DrJohnBates or @ProgressSW

Exciting news: Progress Software Acquires Corticon

Today, Progress announced the acquisition of Corticon, an industry leader in the Business Rules Management System (BRMS) market. I’m incredibly excited about this acquisition. I want to take a moment to talk about why we made the decision to acquire Corticon and why I’m so thrilled.

As you know, Progress is the “responsive business specialist”. A responsive business is one that can see how effectively it is running right now and over time, that can proactively address opportunities and threats, and can continuously improve the performance of its business operations. One key part of the responsive business is decision management – making decisions in the moment. And that’s what Corticon specializes in. Corticon delivers a business rules engine that automates business decisions, enabling more efficient and responsive operations. So whether it is a complex set of rules to decide if someone qualifies for an insurance policy, or to decide whether fraud is going on, or to decide on whatever business decisions need to be made, Corticon enables that complex decision logic to be defined simply and executed efficiently. Pretty useful stuff!

The really cool thing about Corticon is that it is safe to put in the hands of a pure business user. Corticon offers graphical tools to compose rules that can automatically detect conflicts and loss of integrity in rule sets at design time. This contrasts with having to do comprehensive run-time testing using other rule approaches. With Corticon, you can detect problems before you go live. You have the necessary guard rails to de-risk the system and to improve time-to-value. That fits perfectly into Progress’ vision of empowering the business user alongside the business analyst and IT user.

Corticon will be integrated into Progress’ RPM Suite. This will combine Corticon’s BRMS with Progress’ Business Process Management (BPM), Business Event Processing (BEP), Business Transaction Assurance (BTA) and Business Analytics. Through the Progress Control Tower, the vision is that a single command and control interface can provide visibility and control across your business. As IDC’s Maureen Fleming said, "high quality and comprehensive rules and decision services capabilities are required for a best-of-breed platform." And we believe Corticon is the best rules engine out there. Also the Corticon team are fantastic and we welcome them whole heartedly into the Progress family.

If you haven’t already, I encourage you to take a minute to view this video from Dr. Mark Allen, founder of Corticon. You’ll agree, he had remarkable vision in 2000 when he started the company. And by integrating it with our RPM suite, we are now offering customers a comprehensive single vendor solution.

We’re excited to add Mark Allen and the rest of his team at Corticon to the Progress family and are looking forward to offering our customers a better way to manage their businesses in real-time.

Our 2012 Predictions: What to expect in capital markets

What will we see for capital markets in 2012?  The countdown to 2012 has begun. On the capital markets horizon is a great deal of change – no surprise to those following this year’s rollercoaster of rogue algorithms and regulation tension. So with no further ado, here are our capital markets predictions for 2012:

 1. Billion Dollar Blunder. At least one financial institution will take a billion dollar (or more) hit when a rogue algorithm goes wild. The algo will go into an infinite loop, taking on an irreversible and un-hedged position, which cannot be shut down. Losses will challenge those by human rogue traders, which banks and financial institutions will prevent from happening next year.

2. Occupy HFT. The public, government and regulators will start the "Occupy HFT" movement -- a popular uprising against the ultimate elite of those making money in this climate. Despite immense financial industry pressure, regulators in both the US and the EU will be panicked by investor and political disapproval of HFT and will rein it in with draconian rules and controls.

3. SEFs Spur Splash Crash. Swaps execution facilities (SEFs) will revolutionize OTC derivatives trading, enabling them to be traded electronically. This, in turn, will lead to increased risk of a cross-asset class swaps "splash crash" which will confound regulators, who have little understanding of these markets.

4. Global Regulation Rocks. Countries will finally realize that regulatory harmonization is a good thing and that individual self-interest is not. Banks and financial services firms will realize that they need to think like regulators, taking control of internal surveillance and compliance before regulators make them do it.

5. RICs Get Smarter. The RICs in BRICs are getting smart order routing and gearing up for an increase in algorithmic trading. This, coupled with looser regulations, will begin to attract regulatory arbitrageurs and Volcker Rule escapees.

6. The Wild East. The West's supremacy in financial markets will further decline as new trading regulations - the Volcker Rule in the US and MiFID in Europe - create a surge of regulatory arbitrage favoring more lightly regulated geographies such as Russia and China. Wall Street and the City of London will lose human and financial capital as a result.

7. Financial Terrorism. An exchange or trading destination will be hacked by financial terrorists intent on manipulating markets for political gain. This will lead exchanges and ECNs to add more stringent monitoring and market surveillance capabilities.

8. Head in the Clouds. Explosive growth in foreign exchange trading and SEFs means that participating firms will require complex hosted solutions. Even the smallest FX broker needs aggregation and pricing services which require a big technology footprint. SEFs present new challenges as swaps markets attract algorithms and require surveillance.

9. Crime & Punishment. Regulators are cracking down hard on financial fraud and market manipulation and they will bring in some big fish in 2012. Prosecutions and punishments will increase in size and in impact.

There you have it – nine predictions for capital markets in 2012. What are your thoughts on these predictions, and have we missed any? Comment below, or tell us on Twitter at @DrJohnBates or @ProgressSW.

The Role of Technology in Making Business Decisions

The following is a guest blog by Chris Webber, Senior Editor of the Economist Intelligence Unit.  He conducted a research study on the role of technology in making business decisions and presented his findings during a session at Progress Revolution Boston 2011.

By: Chris Webber, Senior Editor of the Economist Intelligence Unit

History shows that organisations struggle to cope with change. According to Dutch thinker Arie de Geus, that's the main reason why the average life span of a Fortune 500 company is less than 50 years. De Geus's classic study of corporate change is now nearly 15 years old, and it would be startling indeed if corporate life expectancy had increased at all in that time.

 

After all, the pace of change businesses are encountering appears to have picked up significantly in the years since de Geus's research was published. New technologies, more competition, the growth of emerging economies and an explosion in the amount of information being generated are all contributing to an increasingly complex economic system. In a new survey, which has been sponsored by Progress Software, the Economist Intelligence Unit has been analysing the impact of this increase in complexity on corporate decision making.

Unsurprisingly, three quarters of the 490 businesses surveyed think that the pace of change in their operating environment has picked up over the past five years. Added to this, nearly 80% think it's important to respond quickly to the changes that are taking place around them. Again, that's no big surprise given that failure to respond quickly to change implies missing out on growth opportunities or undermining existing sources of competitiveness.

What does seem counter intuitive, however, is that only about a fifth (22%) of those surveyed think their organisation's managed to increase the speed at which it makes decisions over the past five years. In fact, many more say the exact opposite is true, with nearly half (48%) saying the amount of time taken to make key decisions has increased.  

Of course, this raises the intriguing question of why businesses are taking longer to make decisions. Reflecting on that puzzle over the past month, one of the key points I've kept returning to is that more information and analysis doesn't necessarily mean less uncertainty for businesses. On the contrary, increasing complexity and interdependence in our economic system could easily mean that businesses are facing more uncertainty than ever before, and that might well explain why executives are taking longer to make decisions than they would like.

This is an important point. With all the data and analytical tools at our disposal in a modern economy there's a temptation to think that we're capable of fully understanding the complexities of the present and that we have a clearer picture of what the future holds.

To some extent those two points might be true. For instance, there are plenty of examples of administrative functions that have been demystified and systematised over the past couple of decades with impressive results for performance.

Judging by our survey results, however, the majority of executives are still plagued by uncertainty and are struggling to make decisions as quickly as they would like. Technology has clearly come a long way and is improving rapidly, but levels of complexity and uncertainty seem to be increasing even more quickly. Technology providers will need to up their game if they really want to help their customers through this set of challenges

Do you know Dr. John Bates?

If you don’t, get to know him. Though not a native of Massachusetts, it’s safe to say, “he’s wicked smaaht”. Not only is he smart, he’s really a genuine, nice person.  Recently, Dr. John Bates was named as one of the Top 10 Innovators of the Decade for Capital Markets, in which he has an extensive background. He helped pioneer new techniques in algorithmic and high frequency trading, real-time risk, and market surveillance. He was also a co-founder of Apama, a complex event processing (CEP) technology provider that Progress Software acquired in 2005.

Last year John became a member of the newly established Technology Advisory Committee (TAC) for the US Commodity Futures Trading Commission (CFTC). The CFTC is an independent agency with the mandate to regulate commodity futures and options markets in the United States. Most recently, he joined the blog roll over at the Huffington Post – his most recent post is From Icebergs to Autos, Effects of the Japan Earthquake Are Long-Lasting.

If you haven’t already, get to know John. I promise you, he’s a man worth knowing professionally, and if you are lucky, personally.

• Follow him on Twitter (@drjohnbates)
• See if he’ll confirm you as a friend on Facebook
• Watch him on YouTube
• Read what he has to say on our Apama and Business Making Progress blogs
• Listen to his CNBC interview Is a 'Splash Crash' Next?
• Check out his Executive Profile on Boston Business Journal

Belgacom and the Case for Business-oriented integration in Communications Providers

It is no secret that the telecommunications industry has been exploring various ways to tackle issues such as declining ARPU (average revenue per user) and increasing customer churn over the last five years. The keys to proactively addressing these issues are agility and responsiveness. For example, responsiveness around customer service – to make customers feel they have a personalized valuable service – which reduces churn; and agility -- around launching new and compelling services rapidly – to increase ARPU.

Despite this quest for the Holy Grail, many communications providers have failed to lay sufficient foundations. While there may be some useful technologies deployed in an attempt to provide an agile and responsive integration platform – these technologies have often failed to deliver what is needed by the business. SOA is a prime case in point. While SOA technology has been successful in many ways, it has also led to a lot of disappointments. Often the business was sold on the promise that SOA would make operations more agile and responsive.  However, what resulted was technology for technologists that looked like plumbing and was daunting and too generic to the business.

Business people want solutions that can deliver visibility to problems and opportunities – such as key business events (e.g., an opportunity to sell a new service, based on context or location) or process failures (e.g. persistent dropped calls for an important customer) – so that problems can be responded to quickly and opportunities taken. The business also wants solutions that can enforce business-level policies and service-level agreements, as well as solutions that can interconnect services at a “semantic level” – not just plumb data together. In other words – the business wants to deal in business-level concepts, and be assured that the underlying complexity will be managed by the system.

Today’s announcement that Belgium operator Belgacom is transforming its business and IT integration programme (more information here) represents a huge step forward for the telecommunications industry. Belgacom is clearly focused around being more responsive to the needs of their customers in order to tackle issues such as churn through improved integration. By selecting the right business integration foundation to support their IT strategy, Belgacom has taken a critical step forward in a long-term strategy to become more operationally responsive to their customers.

Due to the nature of the economic times we live in, it is vital that the telecommunications industry as a whole ensures that they have the best possible integration technology in place. Only then will operators be able to enhance their customer experience management offerings to attract and retain their business customers, differentiate their offerings, and lower their service costs.

 

Red Flags in Morning, Firms Take Warning

A pattern is emerging within new financial services regulations where regulators and financial services firms deploy monitoring technology to "red flag" potential issues such as risk, position limits, errors and manipulation. The "red flags" raised would then alert the relevant personnel or authorities.

In the case of the Volcker Rule, prohibiting banks from proprietary trading and investing in or sponsoring hedge funds or private equity funds, the authorities would use a three tiered approach (http://tinyurl.com/2bh9ot3).  First "tripwires", such as the length of time a trader holds a position, its size or riskiness, would alert banks’ compliance departments  who would (#2) quiz the trader on the nature of the position. And (#3)regulators that keep inspectors on banks’ premises would see the tripwires and monitor both traders and compliance departments.

Over at the CFTC, regulators are looking at a similar approach to monitoring and controlling position limits on products such as oil and metals with a "points" system that would give the CFTC monthly reports that it could use to red-flag traders with large positions (http://tinyurl.com/2ugbdh6).

The tracking and red flag approach is the latest step in increased monitoring of trading operations with the ability to take response before it’s too late. At Progress, we have been advocating using monitoring and surveillance technology to help catch inside trading and avoid fat fingered trading errors for years. With new regulations, monitoring becomes not only mandated but more complicated. Red flags are likely to be flying all over the place within as little as months, both inside and outside financial services firms, presenting a fine opportunity for our Responsive Process Management software solution.

As the financial services world becomes more compliant, the ability to manage red flags becomes more critical. Every process within a financial services firm must be scrutinized, from trade entry to risk management, to analyse and understand internal and external events. This take sophisticated technology. This is where Progress Software's RPM software fits in. According to technology research firm Ovum: "Unless an organization has already made a significant investment in creating an operational responsiveness solution around best of breed products, it will be worth seriously considering the competitive advantage and improved effectiveness that could be achieved by deploying RPM."

Ovum noted in a Technology Audit note that multiple technologies are required to gain a comprehensive insight and respond more rapidly to changes to the environment. These include: business process management (BPM) to model, implement, and execute the processes; business analytics to determine how effectively the processes are working; complex event processing (CEP) to understand the implications of many streams of internal and external events; business rules management to determine the appropriate actions for a given set of conditions and variables; and visibility into end-to-end transactions to track and audit their progress.

The interrelationships between all of these components and the vast amount of information that has become available must be understood before its impact on processes can be ascertained and appropriate tuning performed. In other words, RPM is the answer.

RPM can monitor an increasing number of information feeds, both within or external to the organization, then apply business policy and governance rules, then automatically tune the  established process or alert a human decision-maker (if necessary) and present him/her with current, relevant information on which to base the most appropriate response.

According to Ovum: "All of these individual capabilities already exist (at different levels of maturity), but the cost and complexity of integrating these into an effective business solution is beyond the means of most organizations. Hence Ovum believes that the requirement identified by Progress represents a genuine market opportunity." Well said. 

 

Take Control of Your Business with RPM

Achieving the ability to gain real-time visibility, immediately sense and respond, and continuously improve business processes are the core benefits of responsive process management, but what makes the Progress® Responsive Process Management (RPM) suite so powerful is the Progress Control Tower™ - a unified, interactive business control panel that gives users the tools they need to view what is happening within their business and the ability to improve it.

Dr. John Bates, Chief Technology Officer at Progress Software

In Part 7 of our 7 part video series, Take Control of Your Business, John talks briefly about the how the Progress Control Tower not only gives our customers visibility into their complex events but it also allows them to set up business rules and alerts so that they can continually change and evolve how their business processes operate. Click here to learn more about Progress Control Tower.

Interested in hearing what industry analysts are saying about operational responsiveness? Watch the 3-minute teaser, Gain Efficiency. Avoid Risk. Seize Opportunity, by Gartner analyst Roy Schulte, and then download the entire video. You may also be interested in the paper Building Responsive Enterprises: One Decision at a Time written by industry analyst James Taylor.

Enjoy past videos of this seven part series:

What Is Operational Responsiveness?
Why Is Operational Responsiveness So Hard To Achieve?
Delivering Operational Responsiveness
Four Types of Business Process Visibility
Immediate Sense and Respond
Continuous Process Improvement

BPM is good. Continuous Process Improvement is even better.

As businesses strive to achieve operational responsiveness, they need to make sure that business stakeholders and IT have the ability to collectively define business processes and deploy those processes as applications accessible via the Internet. That’s where business process management (BPM) comes in. BPM is core to achieving operational efficiency but it doesn’t just stop at defining and deploying processes, it means continuously improving how those processes are operating. It’s about having the ability to continuously adjust to changes in your business operating environment and community, and to proactively act on changes in government regulations, performance requirements, and technology.

Dr. John Bates, Chief Technology Officer at Progress Software

In Part 6 of our 7 part video series, Continuous Process Improvement, John talks about the how business process management allows businesses to easily replace and/or automate existing – possibly manual – processes. With responsive process management (RPM), however, you can dynamically improve processes and apply event-driven rules that will allow you to respond to potential problems before they occur.

Interested in hearing what industry analysts are saying about operational responsiveness? Read a recent blog post by industry analyst Mike Gualtieri entitled "Java Is A Dead-End For Enterprise App Development". In it he writes, "Progress Software’s responsive process management (RPM) combines the best of BPM and business events to help businesses respond to real-time events and change business processes. This is just a small sampling of the next generation of business application development tools." You may also be interested in the on-demand webinar Building Responsive Enterprises: One Decision at a Time presented by industry analyst James Taylor.

Enjoy past videos in this seven part series:

What Is Operational Responsiveness?
Why Is Operational Responsiveness So Hard To Achieve?
Delivering Operational Responsiveness
Four Types of Business Process Visibility
Immediate Sense and Respond

 

Mr. Spock, a duck, and the Maytag Repairman…

You may be asking yourself what these three names have in common and we found out at the Progress Software Summit on responsive process management in New York City yesterday.

Following Larry Kudlow’s speech the audience heard from Progress Software CEO, Rick Reidy, yours truly, and Forrester analyst John R. Rymer. What we heard from Rymer repeatedly was that business event processing is the next big architecture movement. He argued that a company’s responsiveness was based on its ability to empower its people to be responsive through the elimination of restrictive policies and regulations. The use case of this was the interaction between influential mommy blogger Dooce and Maytag – with hundreds of thousands of Twitter followers, Dooce became an “empowered customer” whom Maytag could not and would not ignore when it came to responding to her gripes about her new washer. Being able to respond quickly and nimbly, without months of red tape allowed Maytag to weather what could have been a scathing PR debacle.

Rymer was also uniquely able to discuss Hans Solo and Captain Kirk as the intuitive business users in comparison to Mr. Spock and Obi Wan Kenobi who represented analytical business users. While a big hit with this tech-heavy crowd, this analogy also served to reinforce my discussion at the need to cater to pure business users, business analysts as well as IT. All organizations have Kirks and Spocks.

This all tied nicely back to the analogy that started our day that came from our CEO, Rick Reidy. If you and your competitors are ducks in a pond, who is the leader and who simply follows the flock? In order to be a leader one must be able to just nearly see the future or, at the very least, not drive in the rearview mirror. The idea that responsive process management, business event processing and, more basically, seeing and responding in a timely way can make you that leading duck was an easy to digest message that rang true for everyone who made it out to today’s Progress Software Summit.

Afterwards... it was off to Chicago!

Encouraging Eventful Entrepreneurs

Our Progress Software Summit kicked off this week at the Hudson Hotel in New York City with a keynote address from CNBC’s Larry Kudlow, “From Washington to Wall Street.” Kudlow dove right into the dominant headline-grabber of the day – the mid-term elections. Larry used the elections as a springboard to touch upon his thoughts on economic policy, politics and other current events.

He then hit on several hot button issues of today, including the emergence of the Tea Party and Sarah Palin, his opinions on the oil and banking industries, as well as his thoughts on corporate tax policies and how they impact a key audience – entrepreneurs.

An overarching theme that we took from his speech is that entrepreneurs can learn from successes as well as failures, and this idea is not that different from business processes and event processing. When entrepreneurs launch a new company and it fails, it is not necessarily a disappointment, just as long as that business-person evaluates and applies what occurred. Then, when they take a risk with another launch, they will have learned from the events and processes that they faced the first time around, such as choosing that first employee, purchasing office space or accepting outside funding. These business risk takers can discover new paths and options from these previous situations, analyze them based upon their actions in the past and use this knowledge to catapult their latest business into a success. If such activity is encouraged, entrepreneurs will become responsive to the steps it takes to jumpstart a business, and ultimately turn those letdowns into triumphs.

A big thank you to Larry for taking the time to speak with our attendees and answer their questions after his speech! Follow Larry Kudlow on Twitter.

Sense and Respond to Event Streams in Real Time

Last week we introduced one of the key benefits of  responsive process management (RPM) - real time visibility. We've heard what it means to be operationally responsiveness, why it's so hard to achieve and how we deliver it through the Progress RPM® suite. Today we'll look at another key benefit of RPM – the ability to immediately sense and respond to business events so that you can quickly reveal opportunities, threats or inefficiencies, and take action.

Dr. John Bates, Chief Technology Officer at Progress Software

In Part 5 of our 7 part video series, Immediate Sense and Respond, John talks about the how one of today’s smart technologies, complex event processing (CEP), allows businesses to process event feeds and have the ability to sense and respond to the opportunities, or threats, that occur in real time. A good example of how CEP benefits companies is in fraud prevention.

The best part? You drive. A business control panel will give you the ability to gain real-time visibility into business events, immediately sense and respond to changing conditions, and achieve continuous process improvement. Learn how Agent O applies RPM to tackle credit card fraud in real time.

Interested in hearing what industry analysts are saying about operational responsiveness? Watch the 3-minute teaser, Gain Efficiency. Avoid Risk. Seize Opportunity, by Gartner analyst Roy Schulte, and then download the entire video. You may also be interested in the paper Building Responsive Enterprises: One Decision at a Time written by industry analyst James Taylor.

Enjoy past videos of this seven part series:

What Is Operational Responsiveness?
Why Is Operational Responsiveness So Hard To Achieve?
Delivering Operational Responsiveness
Four Types of Business Process Visibility

 

Four Types of Business Process Visibility

So far we’ve learned that operational responsiveness is more than agility and business process optimization, it’s about plugging decision makers into business events and giving them the tools and information they need to respond to the unexpected, thereby allowing them to capitalize on opportunities, drive greater efficiencies, and reduce risk. We've also learned why it's so hard to achieve and how we deliver it through the Progress® Responsive Process Management (RPM) suite. Now let’s look at one of the key benefits of RPM – the ability to gain real-time visibility across your business.

Dr. John Bates, Chief Technology Officer at Progress Software

In Part 4 of our 7 part video series, Four Types of Business Process Visibility, John talks about the four different types of visibility that many companies may (or may not) have. These include visibility into: 1) modeled processes (business process management), 2)  un-modeled processes (usually legacy processes), 3) outside processes, and 4) the interaction between processes.

What’s great is that the Progress Control Tower™ gives business and operations managers the ability to see how all these different types of processes are performing – thereby giving you real-time visibility into ALL your business events.

Interested in hearing what industry analysts are saying about operational responsiveness? Watch the 3-minute teaser, Gain Efficiency. Avoid Risk. Seize Opportunity, by Gartner analyst Roy Schulte, and then download the entire video. You may also be interested in the paper Building Responsive Enterprises: One Decision at a Time written by industry analyst James Taylor.

Enjoy past videos of this seven part series:

What Is Operational Responsiveness?
Why Is Operational Responsiveness So Hard To Achieve?
Delivering Operational Responsiveness

 

Delivering Operational Responsiveness

We've already learned that operational responsiveness is more than agility and business process optimization, it’s about plugging decision makers into business events and giving them the tools and information they need to respond to the unexpected, thereby allowing them to capitalize on opportunities, drive greater efficiencies, and reduce risk. We've also learned why it's so hard to achieve. Now, how do we help deliver it?

Dr. John Bates, Senior Vice President, Chief Technology Officer and Head of Corporate Development at Progress Software

Watch Part 3 of our 7 part video series. In this video, Delivering Operational Responsiveness, John explains how we've brought together three proven technologies that help companies achieve operational responsiveness – business transaction assurance, complex event processing (CEP) and business process management (BPM). All these powerful technologies are further enhanced with business rules and analytics.

The best part? You drive. A business control panel will give you the ability to gain real-time visibility into business events, immediately sense and respond to changing conditions, and achieve continuous process improvement.

Read what Wikipedia has to say about Responsive Process Management (RPM) and learn how Agent O applies RPM to tackle credit card fraud in real time. You can also follow Dr. John Bates on Twitter.

Enjoy past videos of this seven part series:

What Is Operational Responsiveness?
Why Is Operational Responsiveness So Hard To Achieve?

 

Why Is Operational Responsiveness So Hard To Achieve?

We've already learned that operational responsiveness is more than agility and business process optimization, it’s about plugging decision makers into business events and giving them the tools and information they need to respond to the unexpected, thereby allowing them to capitalize on opportunities, drive greater efficiencies, and reduce risk. But why is it so hard to achieve?

Watch Part 2 of our 7 part video series featuring Dr. John Bates, Senior Vice President, Chief Technology Officer and Head of Corporate Development at Progress Software. In this 1 minute, 30 second video, Why Is Operational Responsiveness So Hard To Achieve?, John explains why many companies struggle to achieve operational responsiveness. He points out that the lack of real-time visibility is just one key reasons.

Read what Wikipedia has to say about Responsive Process Management (RPM) and learn how Agent O tackles credit card fraud in real time. Follow Dr. John Bates on Twitter.

Enjoy past videos of this seven part series:

• What Is Operational Responsiveness?

What is Operational Responsiveness?

Wikipedia defines it as “a desirable quality of a business process or supporting IT solution, which indicates its ability to respond to changing conditions and customer interactions as they occur. An operationally responsive business process or IT solution is one that reacts quickly and effectively to a wide range of business events as they occur, and is also one that is managed in such a way as to be rapidly and effectively evolved in response to changes in the business environment itself so as to drive both consistency and value of business outcomes.”

I like that definition but Progress Software expands on it by believing that it is the ability of business processes and systems to respond to changing conditions and customer interactions as they occur - enabling business leaders to capitalize on opportunities, drive greater efficiencies, and reduce risk. Operational responsiveness is more than agility and business process engineering optimization, it’s about plugging decision makers into business events and giving them the ability to respond to the unexpected, thereby effecting change directly.

Watch Part 1 of our 7 part video series featuring Dr. John Bates, Senior Vice President, Chief Technology Officer and Head of Corporate Development at Progress Software. In the 50 second video, What is Operational Responsiveness?, John explains what it really means to be truly operationally responsive.

Read what Wikipedia has to say about Responsive Process Management (RPM). You can also follow Dr. John Bates on Twitter.

How Being Complex Makes Transaction Assurance Simpler

I have been seeing an increasing amount on interest in the marriage between Business Transaction Management (BTM) and Complex Event Processing (CEP). On July 29^th Dr Dobbs Journal published an article called Complex Event Processing: IT Liberator or Over-Engineering Hell? This article was about the synergy of BTM and CEP (although I felt it was rather biased towards one company). Also, last week Jean Pierre Garbani at Forrester published this blog in which he discussed the evolution towards BTM and CEP working together.

Business Transaction Management is a rapidly growing area of Application Performance Management (APM). BTM enables users to look into the transaction flows within their business and ensure everything is running as expected. BTM enables problems in transaction flows to be discovered – such as a bottleneck in an important business process. The really appealing aspect of BTM is it can do this without the need to change the applications in the business; BTM can “discover the transaction flows” by tapping non-intrusively into the flows going through application servers, middleware buses, business process management systems and other systems within the environment. Over time, BTM can build up a picture of the environment’s business flows, look inside the transactions and flag up immediately problems that can really hurt the business.  Thus BTM works really well in legacy environments – not just modern SOA environments. And of course it appeals to business executives and operations users – not just IT users.

Complex Event Processing is the ability to correlate events flowing through a business  - to identify patterns in real-time. These patterns might indicate opportunities and/or threats to the business that have just happened, are in the process of happening or are likely to happen right now. Events are occurrences in the business, such as stock market quotes in trading, call data records being generated in communications or packages changing location in logistics. An example of a real-time opportunity is a trading “statistical arbitrage” opportunity – to sell one instrument and buy another at a micro profit; another is the ability to upsell something to a customer who has just purchased an item on their credit card – based on their spending and buying patterns, their location and context. Threats to be detected include risk exceeding a certain key level in a bank or gaming fraud occurring in a casino. This kind of business level visibility and immediate response also appeals to business users as well as IT.

Listening to the descriptions of BTM and CEP, does it sound like there is a little overlap? Well there is some. What BTM is really good at is non-intrusively discovering process endpoints and the events they exchange – and then tracking these events. What CEP is really good at is correlating complex real-time business events in real-time, including arbitrary user-defined patterns, which can evolve over time as the business evolves. So it makes perfect sense to put these capabilities of BTM and CEP together. For BTM this strengthens the real-time correlation and pattern detection capabilities. For CEP this enables discovery of services without the need to do expensive and time-consuming instrumentation of the environment.

At Progress we have two leading products in the BTM and CEP categories: Actional and Apama. We believe that BTM and CEP capabilities are converging for certain business use cases, so as part of our Responsive Process Management (RPM) suite we now provide seamless integration between these capabilities. Of course RPM does much more than that. More on that later!

Evacuate the Dancefloor

I just posted a blog entry on how changes in capital markets regulations may lead to out of work traders joining hedge funds. It may be a culture shock without the big bank budgets - but advanced trading technology is not out of reach.

See the full article here: "Evacuate the Dancefloor".

The Busy "B" in BRICS

I just published a blog posting on how Brazil has seen booming growth in algorithmic trading over the last couple of year - with Progress Software right at the heart of it:

See the full link here

Algorithmic Terrorism

I just posted a blog on the potential of algorithmic trading terrorism -- can a "denial of service" style attack cripple world markets? See the full posting here:

Blog Post: Algorithmic Terrorism >

Smart - But Is It Smart Enough?

Today Nasdaq group purchased Smarts - a provider of market surveillance. This is an interesting development . Read the full post on our Apama blog :

Smart- But is it Smart Enough >

Defending Against the Algo Pirates

It was an honor to sit on the CFTC Technology Advisory Committee (TAC) last week. The CFTC is the US regulator for derivatives trading – which is a big area. The topic of the first meeting of the TAC was to understand Algorithmic and High Frequency Trading – and its impact on the market. The CFTC is sensibly trying to understand where they should regulate and where they should propose best practices. Obviously the memory of the "flash crash" is still fresh in everyone's mind. One of the topics of interest was that of pirate algorithms that attack other algorithms and try to manipulate the market. I’ve just written a blog posting on it if you’d like to read more:

Full Blog Post: Defending Against the Algo Pirates

CFTC Launches Technology Advisory Committee

Yesterday the CFTC, the regulator in charge of Futures and Options markets, announced a new Technology Advisory Committee (TAC), chaired by the very capable Commissioner Scott O’Malia. Read the complete article.

I am absolutely delighted to be included in the group of experts that the CFTC has called together to form the TAC. I am joined by an extraordinary group of some of the industry's top executives from banks, brokers, trading firms, exchanges and clearing firms as well as some very impressive academics. On Wednesday, July 14th (tomorrow as I write), we will meet to discuss the impact of high frequency and algorithmic trading on the markets, including whether algorithms may be implicated in the May 6th 'flash crash'. From this, we’ll discuss what recommendations we have for regulation of and/or best practices for algorithmic and high frequency trading.

High frequency and algorithmic trading are essential for efficient execution and alpha generation in a complex, multi-asset, fast-moving world. However, there are a number of accusations that have been made against these forms of trading, including that they may aggravate volatility and may even have caused the ‘flash crash’. I believe evidence from the TAC participants will exonerate the accused.

I am hoping that our meetings will result in solutions that not only head-off future ‘flash crashes’, but also help exchanges, banks and brokers to better monitor and police trades. The proactive use of real-time monitoring systems can alert regulators to problems before they become a crisis. Monitoring technology can 'see' major price and volume spikes in particular instruments, how often they happen and maybe even why, and whether a pattern in market behavior caused them. It can also tell how much trading is potentially market abuse, for example, insider trading might be detected by correlating unusual trading incidents with news releases and market movements. (The FSA, for example, thinks that 30% of trading around acquisitions is insider.)

It is now possible to apply high frequency techniques to not just trading – but also to market monitoring, surveillance and pre-trade risk checks – for regulators, exchanges and brokers. The technology is out there (with proven approaches built on next generation platforms such as complex event processing or CEP) and it needn't be expensive. The CFTC's TAC is a positive step in the right direction. I look forward to the meeting and will let you know how it goes! Follow me on Twitter @drjohnbates where I'll Tweet when possible.

What do you do with the drunken trader?

The news that Steven Perkins, (former) oil futures broker in the London office of PVM Oil Futures, has been fined 72,000 pounds ($108,400) by the FSA and banned from working in the industry is no surprise, see article here.

It could have been worse given that the broker, after a few days of heavy drinking, took on a 7.0 million barrel long position on crude oil in the middle of the night. The fine seems miniscule since it cost PVM somewhere in the vicinity of $10 million - after unwinding the $500+ million position.

The surprising thing about this incident is that it happened at all. Perkins was a broker, not a trader. He acted on behalf of traders, placing orders on the Intercontinental Exchange among other places. That he could go into the trading system and sneak through 7.0 million barrels without a customer on the other side is unbelievable.

Heavy drinking is practically a job requirement in the oil industry, my sources tell me, so this kind of thing could be a real issue going forward. As algorithmic trading takes hold in the energy markets, trading may approach the ultra high speeds seen in equities markets.  This is a recipe for super high speed disaster, unless there are proper controls in place - especially if there were a way for the broker or trader in question to enrich himself in the process.

One powerful way to prevent this kind of accident or fraud is through the use of stringent pre-trade risk controls. The benefits of being able to pro-actively monitor trades include catching "fat fingered" errors, preventing trading limits from being breached, and even warning brokers and regulators of potential fraud - all of which cost brokers, traders and regulators money. PVM is a good example of this.

Ultra-low-latency pre-trade risk management can be achieved by brokers without compromising speed of access.  One solution is a low latency "risk firewall" utilizing complex event processing as its core, which can be benchmarked in the low microseconds.  Errors can be caught in real-time, before they can reach the exchange. Heaving that drunken trader right overboard, and his trades into the bin.

Banks & Bullets: Maybe They Dodged One - But Still Needs Some Silver Ones!

By now you’ve probably seen that a deal was reached this morning by the House and Senate on regulation. Some would say it waters down provisions from the tougher Senate bill, limiting rather than prohibiting banks to trade derivatives and invest in hedge funds. This articles describes it as banks “dodging a bullet” http://www.businessweek.com/news/2010-06-25/banks-dodged-a-bullet-as-u-s-congress-dilutes-trading-rules.html

We applaud the superhuman efforts put into the new financial regulation bill by the U.S. Congress and the House of Representatives. However, as I’ve said many times, transparency and consistency are critical to successful regulation in the capital markets. One could be forgiven for fearing that the watering down of the regulations, including the Volcker Rule, may create more havoc rather than increase transparency and consistency.

One thing is for sure – there’s going to be a raising of the priority on handling the complexity and requirement for real-time risk and surveillance within institutions. Risk managers and C-level executives concerned about minimizing risk and maximizing capital will need to view trading positions and limits across the firm, including, if permitted, derivatives that are 'spun out'. Ideally the risks should be aggregated and analyzed, in real-time, giving the ability to detect and prevent “accidents”. Pre-trade risk management will be increasingly important, as firms seek to maintain capital requirements at all times.

A top-down approach to risk where managers can see, in a single view on a dashboard, the risks across all asset class silos has gone from a “nice to have” to high on the wish list – but many still wonder if it actually possible. Continual monitoring of trades in real-time can help to prevent exceeding trading limits, prevent mistakes and catch market abuse.

p.s. Many thanks to all the comments from market practitioners who comment that technology can't solve all the problems for Regulators, Banks and Trading Venues. I completely agree! But we can go a lot further than what happens right now. But of course technology is only one of the approaches. Changes in regulation is another, as is increased transparency, improved reporting (e.g. from fax to real-time data!) etc. etc. 

Rogue Trading Below the Radar

Jerome Kerviel, the trader who allegedly lost Societe Generale nearly 5.0 million euros, went on trial in Paris on Tuesday, June 8th. The bank alleges that Kerviel took "massive fraudulent directional positions" in 2007 and 2008, which were far beyond his trading limits.

It is interesting to note that Kerviel was not only experienced on the trading floor, but he also had a background in middle office risk management technology. It may have been this knowledge that enabled him to manipulate the bank's risk controls and thus escape notice for so long.

Still, it is perplexing that fraud on such a scale can go on without detection for so long, even if Kerviel did have an insider's knowledge of the firm's risk management systems. Internal risk controls are not something that a financial firm can take for granted, left to run unchecked or unchanged for months or years.

The detection of criminal fraud or market abuse is something that must happen in real-time, before any suspicious behaviour has a chance to lose a firm money or to move the market. Pre-trade risk management is paramount, with trading limits specified and checked in real-time. Internal controls should be monitored for possible manipulation, again in real-time. The good news is that technology does exist in the form of real-time market surveillance software from companies can analyse data transactions by the millisecond.

Financial institutions need to start looking inward to improve standards, regardless of current regulation. Otherwise the culture of greed and financial gain at all costs will encourage more and more Kerviels.

FSA Loses Insider Trading Case - but more to come...

Today’s insider trading cases acquittals in London are a big blow to the FSA, but their ability to detect and prosecute these market abusers cannot be overlooked. Without the technology to detect the trading anomalies, alleged white collar criminals cannot be prosecuted in the first place.

It’s also clear that the FSA is sending a message to the investment community: shape up or be prepared to pay. The £33.32 million ($48.8 million) fine for JPMorgan is the largest in the FSA’s history. 

As the SEC and CFTC in the US looks to adopt market surveillance technology, it will be interesting to see the potential rise in insider trading court cases and the size of fines in the US.

I think we're going to see a lot more of this type of prosecution around the world. The FSA is currently prosecuting 11 people for alleged market abuse.

As you may have read this week (link here -> http://bit.ly/aslFmV), the FSA is using new technology to crack down on potential market abusers. in the UK, the FSA receives 6m-8m transaction reports daily. The FSA will soon even have a system in place that will automatically alert staff to potential abuse in “real time”. Alexander Justham, the FSA’s director of markets, says the use of such “complex event processing” technology will give the FSA “a more proactive, machine-on-machine approach” to surveillance.

 
See the article "FSA Loses Insider-Trading Case" here
http://online.wsj.com/article/SB10001424052748704025304575284033106574578.html?mod=WSJ_hps_LEFTWhatsNews

Encouraging Noises from the SEC

Washington, D.C., May 26, 2010 — The Securities and Exchange Commission today proposed a new rule that would require the self-regulatory organizations (SROs) to establish a consolidated audit trail system that would enable regulators to track information related to trading orders received and executed across the securities markets. http://www.sec.gov/news/press/2010/2010-86.htm

I support the SEC's intention to improve real-time market surveillance and establish a consolidated audit trail system. It's always been a worry that regulators do not have real-time access to all securities market data, but it's good to see that they are about to address the issue.

The SEC estimates it would cost the trading industry $4 billion to implement and $2.1 billion in annual maintenance to establish this system. But the US taxpayer is already fed up with the government using 'their' dollars to bail out banks and shore up an ailing financial system. They are unlikely to cheerfully approve of another government agency getting billions more of their dollars.

However, I'm not sure the solution has to be so costly. The markets have come a long way with standard protocols like FIX but also ways of normalizing heterogeneous protocols in real-time. Time series database technology, to consolidate and retain all the information on quotes, orders and trades, has been scaling up for years to handle massive increases in volumes.  And low latency, high speed, monitoring technology exists and is already in place at some of these destination venues and trading participants.

I would love to see the SEC working together with other regulators, like CFTC to form a committee of market participants, exchanges, ECNs and market practitioners to hammer out a cost-effective and timely solution. May 6th could potentially happen again and the regulators must be prepared. I believe a solution could be achieved quickly and by using less taxpayer dollars than the SEC might initially think.

Is High Frequency Trading (HFT) Really Evil?

I was very interested in Tim Bass' response to my posting Regulation: Don’t Throw the Baby Out With the Bathwater. You can read Tim's post here but in summary he feels that "the US economy (read individual investors) would be much better off if financial services firms (or anyone) were not permitted to use computers next to stock exchanges to seek split second “get rich quick” opportunities that the normal, traditional investor does not have. The only “economy” that benefits are entities that participate in this type of activity, and the technology firms selling the hardware and software to make “all the madness” possible."

My response to Tim is as follows: I respect your views as always and understand where you're coming from. My view on this is that HFT is not driving the market big picture -- fundamentals will still do that. So people still invest in companies driven by good economics. HFT makes the market more efficient. And yes it does accentuate movements.

The point I was trying to make is that you can protect investors from some of the rapid movements that HFT can accentuate by having electronic safeguards -- like real-time pre-trade risk and real-time market surveillance.

Sure I want to sell people more software - but there's a bit more to it. If I didn't work for Progress I'd still feel the same way as I do.

On the other hand Colin Clark, who had a lot of experience in real-time surveillance with his company Kaskad, posts that he doesn't blame CEP and HFT for the Flash Crash. Instead he cites issues with NYSE and market fundamentals. See his post here.

This topic definitely insights strong opinions. A lot of bankers I know often don't feel safe even admitting they are bankers in public in case they get lynched for causing such suffering in the economy!! What do you think caused the Flash Crash? We set up a little vote which you can get to here.

Bates is back from the Tweetiverse

I used to think Twitter was a waste of time. That was before I tried it. Actually it's been an incredibly powerful way of keeping on the pulse of business and current affairs, as well as keeping up with some key industry influencers. The 140 character max is a great discipline. It makes it quick and easy to use from the road. And I've been traveling a lot -- so tweeting has worked well.

So I've been a bit quiet on the blogging circuit but fairly active on the Tweet circuit. However, often tweeting can be a bit limiting in telling the full story. I am aiming to try to do more ad hoc blogging in complement with the tweeting, as I visit our customers around the world. Hopefully I can keep up the discipline.

Follow me on twitter at @drjohnbates

CEP consolidation continues

It’s been another remarkable week. I told my wife there would be a lot of traveling for me in the first part of the year and I was right. Last week was New Jersey and New York. This week was Dallas Fort Worth and Silicon Valley. I’ve been visiting key customers, journalists and analysts.

This week has also seen further consolidation in the CEP market. I have been predicting that there could not be a stand-alone CEP market and that CEP will either find a home in applications, databases, stacks or business application platforms.  In this case Sybase has snapped up Aleri to extend its database business into the CEP domain, as well as solutions in the risk space. Aleri are a good company with good people and good products. They come from the “in memory database” perspective but developed a high performing CEP engine and learned lessons from real customers that a SQL approach is not adequate to address real applications, and embedded actions statements are need within a CEP language. Also they learned that the best way to sell CEP is not as a technology but as solutions.

I think Sybase have made a smart move – for probably a bargain price – judging by the release that says they acquire the assets only. I wish my friends at Aleri all the best for the future.

Why businesses must evolve their business processes to be highly responsive, dynamic and predictive – or they will cease to be competitive

Today Progress Software announced the acquisition of Savvion http://web.progress.com/inthenews/progress-software-co-01112010.html. I believe this heralds the beginning of a very exciting phase for Progress Software. Now Progress has become a leader in Business Process Management (BPM). But more than that, combined with our other solutions, Progress is now uniquely able to empower businesses to be operationally responsive – through responsive, dynamic and predictive business processes. And this is critical to keep modern businesses competitive.

You might wonder about the journey Progress went through to realize what the market needed. It was all about understanding the emerging needs of our customers and where they needed their businesses to go. The part of my job I enjoy the most is spending time with customers and understanding what pain points they have - with the ultimate goal of working with them to address the pain and making them highly competitive.

Over the last couple of years I have been hearing more and more from customers about the need to be operationally responsive. For example, many customers have expressed their desire to proactively – and often in real-time - address the needs of their customers and respond to the behavior of their competitors. The goals are to win new business, increase customer satisfaction and triumph over their competitors. These findings hold true whether the customer be in banking, insurance, communications, travel, transport, logistics, energy, gaming or many other industries. It could be British Airways ensuring their high value customers are looked after first in the event of a flight delay, or wireless carrier 3Italia pushing real-time offers to their customers based on their profile, activity and location, or maritime logistics provider Royal Dirkzwager dynamically adjusting the course and speed of a container ship to optimize fuel usage, based on weather conditions and port berth availability.

Operational responsiveness is thus about being highly responsive to opportunities and threats – and even anticipating such scenarios. Market research supports what I’ve been hearing, such as the recent survey by Vanson Bourne http://web.progress.com/en/inthenews/companies-stuck-in-o-10062009.html – suggesting Operational Responsiveness has moved from a nice-to-have to a must-have.

There are a number of business facing solutions that have shown great promise in addressing operational responsiveness. One of those is Business Transaction Assurance (BTA). This enables businesses to discover their business processes and gain visibility on the effectiveness of these business processes – even if they are built in a wide variety of heterogeneous technologies and work across legacy applications. BTA non-disruptively discovers business processes – without any modification to existing applications – and monitors to ensure processes run to completion. BTA also discovers bottlenecks and hotspots in the processes – enabling businesses to understand just how efficiently they run.

Another important solution is Business or Complex Event Processing (BEP or CEP). This enables business users to model the detection of and reaction to patterns indicating business opportunities and threats in real-time. Examples could be an opportunity to up-sell to a customer on the web-site now (opportunity) or risk exceeding a key level (threat).

And then of course there’s Business Process Management (BPM). This enables business users to model and execute a business process flow. BPM is also widely used for Business Process Improvement (BPI) – the re-engineering of (parts of) existing processes to improve their effectiveness.

The really cool thing we realized in talking with our customers is what happens when you use BTA, BEP/CEP and BPM together. Suddenly businesses are empowered to discover how effective they run, to detect opportunities and threats dynamically and to invoke business processes in response. The business becomes dynamic and responsive. Business users can take control and model the behavior they want their business to exhibit under certain circumstances, and through dashboards they can track the effectiveness of the business. Over time, the areas of the business processes that should be improved can also be detected.

Progress already has leading products in BTA and BEP/CEP with Actional and Apama. Progress chose Savvion to complete the story for a number of reasons. Savvion has a history of innovation and is a leading pure-play BPM provider. But Savvion also has a very rich platform, which includes not just BPM modeling and execution, but also an event engine, a business rules engine, a document management system and an analytics engine. The fact that Savvion enables business processes that respond to events means it immediately works well with Actional and Apama. And with high performance, scalability and availability, Savvion fits perfectly into Progress – where we pride ourselves that all of our products exhibit these characteristics.

In summary, Progress is now a best-of-breed BPM vendor – and not just at the departmental level – but at the enterprise level. But we’re also more than that. Our goal is to enable operational responsiveness and ensure our customers gain competitive advantage through the power of responsive, dynamic and predictive business processes.

10 Reasons Why Progress Chose Savvion

Today Progress announced the acquisition of Savvion http://web.progress.com/inthenews/progress-software-co-01112010.html

The reason that Progress chose to enter the BPM market is clear. Businesses are increasingly turning to BPM to implement and improve their business processes. Why? Firstly because no other solution can help enterprises achieve real-time visibility, agility, efficiency and business empowerment the way BPM does. Secondly BPM enables this to be achieved with low Total Cost of Ownership (TCO) and ease of use.

But why did Progress choose Savvion? Here are 10 reasons to start off with…

1. Savvion is a trailblazer and industry leader – Savvion is a pioneer in BPM but is also still at the cutting edge. We wanted the best BPM thinkers at Progress. 
2. Savvion has been proven to work at the enterprise level. Some BPM systems only work at the departmental level, but Savvion works at either departmental level or enterprise levels.
3. Savvion offers System-centric and Human-centric BPM – Savvion can orchestrate processes but can also involve human users in workflow.
4. Savvion is event-enabled – so business processes can respond to events. Progress has a lot of momentum behind event-driven business systems through our Actional and Apama solutions – and Savvion will work seamlessly in event-driven business solutions.
5. Savvion offers vertical industry solutions – Analogous to Progress’ Solution Accelerators, Savvion offers out-of-the-box vertical solutions in industries including Financial Services and Telecommunications.
6. Savvion offers an integrated Business Rules Management System – Expressing logic in terms of rules can often be very important. Savvion have developed a rules engine, integrated with their BPM system, enabling decision-oriented BPM – modifying the process flow based on rule conditions. This is a powerful capability.
7. Savvion offers an integrated Analytics Engine – Business Intelligence has proved its worth but it is a “rear view mirror” technology – analyzing facts that have already happened. Savvion’s analytics engine enables continuous analytics to augment business processes and human user with advanced real-time analytics, enabling better decision-making.
8. Savvion offers an integrated Document Management System (DMS) – Savvion’s integrated DMS enables rich document handling and empowers document-centric BPM.
9. Savvion BPM suite is highly scalable, high performance and highly available – At Progress we pride ourselves on the strength of our underlying technology. We want to offer our customers a complete solution that embodies scalability, performance and availability. Thus selecting a BPM vendor in-keeping with this philosophy was key – and Savvion is just such a vendor.
10. Savvion is a great cultural fit with Progress – An often-overlooked point is that cultural fit is key to acquisition and integration success. The Savvion team pride themselves on being innovative, customer-focused and fun - just like the Progress team. We’re looking forward to working together.