Integrated Infrastructure Blog

BPM Gives the Business a Technical Role in Process Improvement

Do you think that's a good thing?

I’m trying to get up to speed on Business Process Management (BPM) - in case you missed it, Progress Software acquired Savvion in January – and I'm really embracing the part of BPM that gives the business a technical role in process improvement.

One of first Savvion resources I read was the interview-style paper, The Benefits of Adopting SOA and BPM, and the first thing that made me go “yeah!” was:

“The key to understanding the significance of BPM is to understand the significance of the most critical element of businesses, the people. Regardless of the role people play in the business, they care passionately about what they do and how they do it. They also care about improving the way they do their work. Because the people are involved in how processes are executed, it is important to enable them to perform their work easily and effectively by delivering the right information to them at the right time.”

In this quote, I think "the people" are the business because they are usually the closest to the business process. Early in my career with Progress, I worked on projects with IT to deploy various web functionality, including single-sign on, lead flow into our CRM, and launches of two CMS’s. When I first started, IT owned practically every process and you had to work through them to get even the smallest change made to the website. I recall working on the single-sign system and feeling very frustrated because they’d say, “you don’t need to worry about that” when I asked questions about how the flow, or visitor experience, would work. I came back to them with a Visio flowchart of how I thought it should work and the jaws dropped – they were either stunned that someone from the business wanted to be involved, or they were thinking “who the hell does she think she is.” (Personally, I think it was the latter.) In any event, we ended up working on that diagram together for a month or two and outcome was a great functional spec that we could refer to throughout the development process, and beyond. Out of that experience came my intense respect for the role of IT, but also the importance of “the business” being involved. I know that BPM is not just about aligning IT with business owners but today... it is the key point that made me think "that's cool.”

As I continue to read and reflect on my experiences, I am interested in who actually presents the idea of applying BPM to their existing enterprise infrastructure. Is it IT, perhaps a CIO? Or, is it the business, perhaps a CFO? Whoever decides, in my opinion, bringing the business (the people who know what they want and need) and IT (the people who know what technologies can help) together is a really good thing. And if it works, I’m confident that companies will reap the rewards of operational innovation, efficiency, and a greater return on their investments.

Adding Leading BPM (Business Process Management) Solution to Our Portfolio

Our integrated infrastructure (or SOA infrastructure) portfolio just got broader and better! On Monday Progress Software announced the acquisition of Savvion, Inc.  Savvion offers a comprehensive, standards-based BPM suite that helps more than 300 of the world’s top-performing companies – including 24 of the ‘Fortune 100’ – automate and continuously improve critical business processes. Dr. John Bates, Progress Software’s CTO and Head of Corporate Development, says, “The Savvion BPM suite is a perfect fit for Progress because it offers leading capabilities for business process modeling and execution. The suite also uniquely includes other integrated key capabilities, including business rules management, document management, an event engine and an analytics engine.”

Progress Software made the announcement during our Global Field Operations Conference in Orlando, FL, which is being held this week. Those lucky enough to attend were able to hear David Bressler deliver a great sales pitch that really communicated the benefit of having the industries best-in-class BPM technology in our briefcase. The combination of our Business Event Processing (BEP), Business Transaction Assurance (BTA) and Integration portfolio, coupled with Savvion's BPM suite, will enable enterprises to achieve the highest levels of operational responsiveness.

To learn more about this announcement, visit our Apama Event Processing blog and read two posts by Dr. John Bates:

• Why businesses must evolve their business processes to be highly responsive, dynamic and predictive – or they will cease to be competitive
  
  
• 10 Reasons Why Progress Chose Savvion

Welcome Savvion to the Progress family, and stay tuned for more details.

A BEP On Our Radar...

Last year Progress Software started talking a lot about Business Event Processing (BEP)—more commonly known as complex event processing (CEP). It really kicked into gear when we commissioned an independent technology market research company, Vanson Bourne, to conduct a survey and report on their results. Vanson Bourne interviewed 400 companies representing energy generation, telecommunications,and logistics sectors in the US and Western Europe. Why these industries? Well, because of the volume and complexity of their "business events" (service delivery) - both through systems and processes, and customer, partner, and supplier interactions. The results of the survey, detailed in the paper Overtaken by Events? - The Quest for Operational Responsiveness, demonstrates that harnessing business events, smart interpretation, and fast response are clear objectives for these industries. And the need is immediate.

Below I've included the Executive Summary of Key Findings. If you'd like to get more detail on their findings, visit our website and download the complete paper. 

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EXECUTIVE SUMMARY OF KEY FINDINGS

The Objective Is Operational Responsiveness

Operational responsiveness 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. The survey identified a number of key pointers as to why businesses would be keener than ever to improve how they respond operationally, for example:

Customers

• 91% said they are trying to act in a more personal “one-to-one” way with the customer. That means paying more attention to specific, individual feedback.
• 74% reported that areas such as digital market channels, mobile platforms, and social channels have caused a significant increase in the flow of information into and through their business. That means paying more attention to events in the context of a blizzard of communication.

Competition

• 70% of the businesses surveyed said that it would it be an advantage to be able to price their products based upon dynamic factors, in response to intra-day changes, such as changes in competitor prices/activity.

Process efficiency

• Operational incidents can be costly: 82% of companies surveyed have to continuously monitor processes to try to prevent them happening.
• 72% said their business processes take too long, and they need to shorten them.

Businesses want to respond quickly and more accurately to business events at the operational and business planning level. Real-time information delivery is seen as an important contributor, seen as having a role in three key areas:

• Monitoring KPIs—overseeing pre-ordained service or business performance benchmarks.
• Automatically alerting end users when certain conditions occur—flagging exceptional circumstances or activity for colleagues to take action.
• Automating response processes—delegating conditional processes to the operational systems

Of the companies surveyed 82% are planning investments in real-time technology by mid-2010 in the hope of achieving the vision.

But the Road Is Long...

The survey reveals that most companies still have a long journey on the path to operational responsiveness as defined above. Here are a few stand-out numbers that underline the current situation:

Service delivery and process gaps

• 67% hear about problems in service from customers before they have identified those problems themselves.
• Only 8% report currently business information in real-time: indeed only 19% report on an intra- day basis.
• 72% think that their business processes take too long and they need to shorten them.
• 89% cannot get a single view of process performance because information on business processes is held in multiple different operational systems. 80% use middleware to try to bring data together but not to the satisfaction of those in charge of operations.

Business planning gaps

• 34% say that, by the time they are able to see a change or trend in one of their business processes, they have missed some if not all of the opportunity to react to it.
• 47% of companies surveyed report that business information is typically analyzed to identify patterns and trends historically and not in real time.
• 58% admit that they have significant gaps in the information they need to support their business decision making.

Real-time Information and Business Event Processing (BEP)

In fact, 94% of businesses said that real-time information is important to them, and 78% said immediacy of response to business events provides a competitive advantage. But where business information is incomplete and/or sits across a range of disparate, non-compatible operational systems (as is admitted by most of the companies surveyed here), then speed alone is not enough. Where BEP is being tried out, users are already witnessing the power of combining and correlating across platforms, as well as the desired advantages that real-time systems would provide:

BEP benefits experienced so far

• Filter and analyze lots of events quickly—66%
• Take automatic actions in response to certain sequences of events occurring—55%
• Better monitoring of existing operational systems—50%
• Normalizing and correlating events from multiple different sources—45%
• Providing real-time visibility into information for business end-users—42%
• Spotting time-sensitive event patterns—25%

If you'd like to get more detail on their findings, visit our website and download the complete paper.