What is Business Process Management (BPM)?. Simple definition. ❑ BPM is a discipline to optimize processes, manage & monitor process performance using
28 pages

31 KB – 28 Pages

PAGE – 3 ============
PwC 3 What is Business Process Management (BPM)? Simple definition BPM is a discipline to optimize processes, manage & monitor process performance using special ly designed IT applications BPM enables rapid automation of a large variety of different processes A number of vendors offer BPM software (BPMS) to automate processes and build workflows BPMS provides an environment where business users can change processes in the system based on – components BPMS vendors differ significantly . Therefore BPMS implementation requires a solid pre – assessment of what the system is supposed to do before choosing the vendor. Business Process converted into automated workflow supported by agile BPMS technology

PAGE – 4 ============
PwC 4 What is the logic of BPM? work packages place to the next with the support of a system, so that manual intervention can be reduced to a minimum The routing is either done by pre – determined steps ( workflows – defined in the systems ( rules ) The automation of workflows and rules significantly increases the efficiency of the process. What does this mean? Process steps are carried out by systems Translating business decisions into rules , allows systems to process decisions automatically Example of a rule specification : Example: A claim is received by a call centre of an insurance organization Rule (from a business user perspective): only claims that are eligible (customer has valid policy, customer does not have critical track record) will be forwarded to claims department Business rule (from a IT BPMS developer perspective): If ValidPolicyClaim = True then SendClaim ( ClaimDepartment ) . This rules is then called at the Receive&Validate process step. What does it mean for the end user ? System will validate according to data provided, if Claim is valid and will automatically route it to its pre defined destination. What does it mean for your business ? Automated s tandardization , r educe d r isk and r ules e nforcement which will drive a cost effective p olicy c laim process .

PAGE – 5 ============
PwC There is a variety of BPM S providers in the market 5 Not all BPMS offer same features. Some are more Workflow oriented , others Business Rules oriented Not all BPMS offer packaged solutions which can be extended to fit special requirements The pre – built functionalities ( asset catalogue ) on each BPMS is different The licensing model varies from vendor to vendor

PAGE – 6 ============
PwC 6 PEGA PEGA PEGA PEGA PEGA PwC is a partner of Pegasystems since 2007 What makes Pega technology unique? 1.) Combined workflow and rules engine integrated in one architecture platform 2.) Pre – built industry frameworks addressing specific client issues such as FATCA, claims solution, payments solutions etc; Financial Services frameworks are particularly robust as roots are in Financial Services and most implementations so far have been done in banks and insurance companies 3.) Automated programming allowing business users to change functionalities while in the background code is generated automatically. (like in excel when recording a macro and coding is done in background) 4 .) Highly scalable Pega is a highly transactional technology. Currently any American Express transaction in the world goes through Pega platform.

PAGE – 8 ============
PwC What BPM was able to do: A s implified illustration of aircraft turnaround process (2/2) Aircraft landing data submitted to tower Landing Taxiing Inbound Flight Activities Cleaning Bags Allocation of Gates (rules based) Ordering through system Scanning done manually, allocation automatically Outbound Flight Activities Refueling Passenger Mgmt Departure Scheduling 1.) Request for refueling (y/n) 2.) E xecution (manually) 3.) E nter system done further processing of invoicing etc 1.) Match bags to passengers 2.) B oarding through system 1.) E nter departure date into departure schedule 2.) M anage delays, slots, gate closing People involved Stand planners Airport staff (Tower, service staff Airline operations Passengers Channels involved Radar CDM Portal Mobile Phone Handheld devices 8

PAGE – 10 ============
PwC When does B P M makes sense ? 10 BPM goes beyond methods like as it automates processes and connects legacy systems BPM is designed on the principle of re – usability – therefore automating each consecutive process becomes faster and cheaper with time this is particularly important for large organizations where after a few implementations it becomes economically feasible to optimize even processes with small throughputs (and thus small cost base) BPM is independent of legacy IT systems the process can be automated while still using a variety of legacy front – office and back – office systems (overcoming the need for complex legacy transformation) BPM shows quick results – implementation is done in small steps ( 90 days sprint s ) converting process into automated workflow with business rules defined. BPM has moved from business process modeling to business process automation and integration

PAGE – 11 ============
PwC Where does BPM suit best? 11 Process management milestones BPR (Business Process Reenginering): Reenginering business processes to close gaps and leverage opportunities BPO (Business Process Optimization): Optimize business processes between transformation cycles BPT (Business Process Transformation): Plan and execute business process transformation and stabilize post change BPMS (Business Process Management System): Create business process management system and identify process gaps and opportunities Time Operational Excellence maturity level PCM (People Change Management): Plan and facilitate people aspect of developments CPI (Continuous Process Improvement): Develop continuous improvement culture BPR was the start phase of banks to draft processes to have more control During BPO phase organizations needed to cut cost in order to be more competitive, e.g. by outsourcing processes. BPT is the era where banks had to focus on putting the client processes central The new phase is business process management where processes are automated, geographically flexible, combine agile front end requirements with inflexible legacy and reach a new level of operational excellence in terms of processing speed, costs and adaptability Shared Service Centres & Outsourcing Lean Six Sigma method

31 KB – 28 Pages