BPM in Action

Top BPM Forums For 2009

2010-01-04T23:17:03Z

The final Forum tally for 2009 is BPM, and with all the promise that BPM offers companies to save money, along with IBM buying Lombardi, means 2009 was a very exciting year for BPM.

So the top 5 BPM Forums for the year are:

1) What Do You Think of IBM Buying Lombardi?

Comments:

Brian Reale: Think of IBM's announcement as the opening of a flood gate. It is going to be the first of many acquisition announcements in 2010 in the BPM space.

Jaisundar V: This acquisition will upset the balance of power among BPM product vendors in the market and is likely to trigger many reactions from other players.

Michael T. Rowley: I get the feeling that IBM shares the market fragmentation philosophy of some analysts, where the BPM market is divided into document-centric (IBM's FileNet), integration-centric (IBM's Process Server) and human-centric (now-IBM's Lombardi).

2) Why are Business Rules Subjugated to Process Management When Business Rules Should be Leading Process Management?

Comments:

Scott Francis: If we take the word "Lead" out of your question and ask the real, underlying, less controversial question: "Why aren't business rules used to start BPM?" Well, they often (I hate to use absolutes like "always") are.

Neil Ward-Dutton: Because the vendors selling BPM technologies are bigger than the vendors selling BRM technologies.

James Taylor: I think part of the challenge here is the number of potential uses of business rules in a process. Rules can handle routing, escalation, assignment and many other process tasks.

3) What Comes First: the Process Improvement Methodology or the BPM Software?

Comments:

Doug Mow: The best case scenario should be a blend of a number of sources of input - technology, business, process....it is more critical to have a methodology that is flexible and can accommodate changing definitions.

Michael T. Rowley: The most effective process improvement methodology will be one that is tailored to the culture and realities of the organization that is doing the work, with a consideration of the strengths of the BPM tool that is being used.

Neil Ward-Dutton: If you're in a position to use a process improvement methodology, it's likely to be a good idea to at most blend a vendor's approach with something more industry-standard. Here's the caveat though: methods like Six Sigma and Lean are great at helping you with *continuous improvement*.

4) Do You Think BPM and SOA Are Going to Merge? If So, How Soon?

Comments:

JP Morgenthal: This question further exemplifies the misunderstanding over what BPM and SOA are. BPM is a practice focused optimizing your business processes based on your business mission. In this way, you might optimize around cost, speed, etc

John Michelsen: I think this merge is already in process, especially when you look within US government and to our peers in Europe, who are approaching "BPMSOA" in a more pragmatic way than some technology-driven IT shops are in North America.

Miko Matsumura: I propose that a good way of looking at it may be that BPM and SOA are getting married. Clearly when two people get married, they dont "merge" and that there is a danger in thinking of them as one person.

5) What's Your BPM "Elevator Pitch?"

Comments:

Jaisundar V: Over the years we have invested much on many Enterprise Apps, and that's all been good. But while they've helped us automate functions, we think we can get more competitive if we can help all those functions and apps work in better symphony. We found BPM the perfect way to work across those silos and plug all those gaps.

Stephen Zisk: Hi, Boss. We're not buying BPM, we are buying a solution to our specific problem - [insert description here]. The reasons for doing this with BPM are that we get there faster and cheaper, and we end up with a solution we can change easily.

Dave Youkers: I don't care what his elevator pitch is, the CEO's response should be: "I understand what your saying, and it looks like something we should consider. I tell you what - I'll consider giving you 6 figures to allow your staff to work with the VP of Operations on a pilot program. I want you both to come back to me in 10 days with a recommended pilot project plan, and we'll take it from there."

IBM Buys Lombardi

2009-12-16T16:25:12Z

As you can imagine, the Twittersphere and Blogosphere are alive with the news of IBM acquiring Lombardi. I also started a Forum on this very subject.

First of all, it's an interesting purchase, as Lombardi's founder and CTO, Phil Gilbert, back in July, in a blog titled, "It Isn't BPM It's IBM," wrote that IBM doesn't do BPM, not really, despite the Orwellian marketing rhetoric.

As Miko Matsumura wrote on his blog, he imagines that blog will be coming down soon. And with the purchase of Lombardi, a company which every analyst seems to hold in high regard, IBM will now most certainly be doing BPM.

As Dennis Byron writes: Ironically in 2009, one of the big proponents of the a la carte approach, not surprisingly, was Lombardi Software. But market consolidation is an inexorable force in any market and BPM software is no exception. Increasingly your options are being reduced.

Another interesting point Byron makes is: One of my rules of thumb is that the longer the press release, the more strained the synergy between the merging product lines.

Sandy Kemsley starts out writing that, in a better economic climate, Lombardi would probably be looking for an IPO instead of a buy-out. As she writes further: Lombardi will become part of the WebSphere team, which is what I said that they should have done with FileNet's BPM three years ago when that acquisition happened; maybe they'll do this one right so that the product actually becomes an integral part of IBM's BPM offering rather than a poor cousin.

Now for some of the comments from Twitter:

@JBezivin: Just digested ILOG, the Oger is hungry again

@bigbrains: IBM to buy enterprise software maker Lombardi: Big Blue is acquiring the top provider of business process management sof

@rwang0: #IBM buys Lombardi Software to bolster BPM and process orchestration

@puleen: Big competition for @pegasystems?

@CultofBPM: IBM builds hoover to rival Dyson, sucks up Lombardi

@jasonstamper: Lombardi CEO blog Aug 08: "Companies have evaluated whether the.. tools marketed as "BPM" by Oracle, SAP and IBM can work. They don't."

@bmichelson: RT IBM buys Lombardi, what do you think? <-- i thought Lombardi would end up at @progresssw glad i wasn't betting ;-

Real-Time Business Analytics: Talking Operational Intelligence With Dale Skeen

2009-11-11T20:16:41Z

Listen to my podcast with Dale Skeen, the Co-Founder and CTO of Vitria. Dale oversees the technological direction of Vitria and in this podcast we drill down on the rising importance of operational intelligence.

Listen to or download the 6:57 minute podcast below:

Download file

The below graph is referenced in the second question.

---TRANSCRIPT---

PS: We recently met up at the Gartner BPM Summit. What new BPM trends did you pick-up from the summit?

DS: Well, at the conference, we saw many companies ranging from financial services to energy to logistics, telcos, government and they consistently ask one question, how can I monitor my business processes and react more quickly to business threats and opportunities. For example, a logistic company was there, they want to monitor their internal processes as well as monitor outside factors like weather and traffic information. And when a problem occurred, they wanted to be able to see it, analyze it and act in real-time. Now this need is driving a new type of business analytics, which we call operational intelligence.

PS: Now, what do you mean by operational intelligence. I mean is this similar to business intelligence, which has been around for years?

DS: Well, business intelligence is one type of business analytics. It's familiar to many people; however, it delivers analytics typically in the form of reports and typically only on daily basis. This is sort of looking in a rearview mirror. And what was very evident at the conference is people wanted to be able to monitor their processes and react in time to make a difference and not look in their rearview mirror. So obviously, there's a gap that needs to be filled to enable enterprises to be much more dynamic, to be able to see, analyze and act in real-time. And so operational intelligence is filling that gap and it's different from business intelligence in two fundamental ways.

First, serve the timeless of information, which for operational intelligence is typically measured in seconds and minutes not in days. And the second is access to information. Operational intelligence usually has access to a wide variety of information and especially including internet based information. So to illustrate the difference between the two I'd to think of this in terms of like a matrix where along the timeline you have timeliness of information at the bottom and along the vertical axis, you have sources of information. Again, BI usually few sources of information, typically the ERP systems and they are typically daily. So they would be put in the lower left hand corner of that matrix.

Now with operational intelligence, the difference is at first you can access many different sources of information, internal databases, your ERP systems. But again, additionally, internet based information so they're very high on that vertical axis because they have access to all this type of information. And then the other thing that distinguishes them is that they can access information, do the analytics in near real-time, it's called "continuous analytics". And so they're able to move forward to the right where you're talking about analyzing in seconds not in days. So it enables you to analyze information and act much faster in time to make a difference.

PS: How exactly are companies benefiting from operational intelligence?

DS: Well, we've seen many types of companies benefit from operational intelligence from logistic companies, like, I talked about that better manage their performance, telcos that can better ensure service, financial companies there manage and (indiscernible) risks, energy companies that can manage, demand and supply in real-time. Now, some concrete examples of how our customers are using operational intelligence include a cable company that's using operational intelligence to monitor and optimize their customer facing business processes. This allows them to increase customer satisfactions and revenue.

Also, we have telco companies that are using operational intelligence to monitor and manage in real-time their service level agreements and this allows them to improve their service level to their customers and enhance improve revenue insurance. Also, we're seeing that military and commercial companies alike are adopting operational intelligence to improve cyber security by looking at all types of threats that can threaten the security.

PS: Now, if operational intelligence is so valuable, why are we just hearing about it now?

DS: The reason that operational intelligence is appearing only now is three-fold. First, business drivers. Companies are under increased pressure to act quickly in order to optimize cost, respond to market opportunity, and to reduce risk, both financial risk and operational risk. So that's the first reason. The second is information sources. As we mentioned, the internet now has a wealth of information that's very easily accessible and that's only been very recent that was available.

And third, and probably the most important is that new technologies are really enabling this new type of analysis in real-time. In particular, Web 2.0 technology is providing the platform for rich visualization of information and CEP technology and CEP by the way, stands for Complex Event Processing provides the ability to do continuous real-time analytics. This is very techie capability that's been serving the heart of operational intelligence. But the bottom line is now you can access and analyze information continuously and in real-time and that is an important enabler for operational intelligence.

PS: Now, what do you see for the future of operational intelligence?

DS: Well, since the rise of operational intelligence of the past, really very recently, we see a tremendous increase in customer that want to adopt operational intelligence. So from really being something it wasn't talked about two years ago to customers talking about it today almost continuously. Also, this is also further proof (indiscernible) in the consumer world you see the need for real-time search. In fact, we've just seen a number of companies and now it's the capability to do real-time search which is sort of a sister operational intelligence which is real-time business intelligence. So this need for real-time analysis, this real-time -- to be able to act in real-time, we see this need just continuing to grow in the future.

On the technology side, we think operational intelligence is just now emerging technology that has a lot of room to grow. And so we'll see many more technical advances in the next few years in this area of operational intelligence.

PS: Well, it's definitely an exciting space. This is Peter Schooff having spoken with Dale Skeen of Vitria. And anyone looking for more information on operational intelligence definitely head over to the Vitria website.

Should Business Rules Lead Process Management?

2009-11-04T19:57:53Z

Just leave it to JP Morgenthal to stir things up. Over at the BPM Forum on ebizQ, we've got a bit of a controversy going on.

The question is: Why are Business Rules Subjugated to Process Management When Business Rules Should be Leading Process Management?

John Michelson answered right off: Business rules can be very specific and drive business processes, but just as often, they represent general practices that can be shared across multiple business processes

Scott Francis countered: I have to say, the whole question is off-base...take the word "Lead" out of your question and ask the real, underlying, less controversial question: "Why aren't business rules used to start BPM?" Well, they often (I hate to use absolutes like "always") are.

Then Michael Poulin says: Well, I was ready to say 'I agree with Scott' until read his last statement about "BPM hits closer to the mark, leaving plenty of room for improvement." Does it mean that BPM deliberately degrades importance of the rules to leave a "room for improvement"?

Then JP gives a very strong counter to the previous comments. And the comments just keep coming. Check it out.

Improving the Process of Process Management: Talking Live With IDS Scheer

2009-10-21T17:05:44Z

At the Gartner BPM Summit I met with Britta Hilt, Product Management, and Marc Redemann, Director of BPM Consulting for IDS Scheer. In this podcast, they discuss how most companies are now aware of BPM, so the issue is no longer about educating companies about BPM but about improving BPM. Also, IDS Scheer has some exciting innovations coming up in 2010 that you will definitely want to listen to.

Listen to or download the 2:19 minute podcast below:

Download file

How Starbucks Heated Up Promotions With BPM: Talking Live With Appian

2009-10-20T19:31:34Z

I recently recorded a podcast with Appian, Speeding Up the ROI in BPM, so it was nice to catch up with Samir Gulati, the Vice President of Marketing, at the Gartner BPM Summit and hear how the release of Appian 6 was going. In this podcast, Samir talks about the need to show quick results with today's business applications, which will serve to keep the business engaged. You'll also definitely want to hear Samir talk about a real-world BPM success story with a company everyone is familiar with: Starbucks.

Listen to or download the 3:23 podcast below:

Download file

The Business Side of BPM: Live Chat With Lombardi

2009-10-19T19:32:26Z

At the Gartner BPM Summit I caught up with Jim Rudden, VP of Global Marketing for Lombardi. In this podcast, Jim drills down on the keys to successful BPM, and how Lombardi is shifting the paradigm from identifying business problems to uncovering business opportunities. You'll definitely want to hear Jim's response on why enterprises that are only focusing on the big ROI returns that BPM has been realizing are actually setting the bar too low!

Listen to or download the 7:33 podcast below:

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How BPMS Delivers Value to Today's Business: Live Podcast With Active Endpoints

2009-10-16T17:52:28Z

At Gartner's BPM Summit I sat down with Michael T. Rowley, the CTO, and Alex Neihaus, the VP of Marketing of Active Endpoints. Together, the two drill down on one of the key subjects of the summit, BPM and modeling, and Alex discusses a real use-case example of the value BPMS brings to a company. Also, you'll definitely want to hear how their modeler does something that has never been done before.

Listen to or download the 4:02 podcast below:

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How Automated Process Discovery Revealed 22 Inefficiencies: Live Case Study From Fujitsu

2009-10-15T17:12:12Z

Last Spring I recorded this live podcast with Fujitsu, BPM Success Through Automated Process Discovery. At last week's Gartner summit, it was great to catch up with Fujitsu and get a real-world APD success story from Greg Mueller, Manufacturing Systems Analyst of ESI. Greg discusses the 3 important things they discovered about their business using APD, as well as the critical question: What made them first realize they needed a BPM solution in the first place. Give it a listen below:

Listen to or download the 3:21 podcast below:

Download file

BPM and the iPhone: Talking Live With Global 360

2009-10-14T19:14:52Z

Last week at Gartner's BPM Orlando Summit I spoke with Terry Schurter, Director of Product Strategy for Global 360. It was the day before Terry's big presentation, and most exciting, Terry had just come out with the book, The Insiders' Guide to BPM: 7 Steps to Process Mastery. In the podcast, Terry discusses what's in the book and in his presentation, explains what BPM has to do with the iPhone, and Terry shares one of the coolest stories getting-hired stories: that as soon as he saw a demonstration of Global 360's personal-based BPM, he went straight to the CEO and demanded a job.

Listen to or download the 2:40 podcast below:

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How Process Performence Impacts the Business: Live Podcast With TIBCO

2009-10-13T19:28:09Z

At Gartner's BPM Summit in Orlando last week, I sat down with Jeremy Westerman, head of BPM Product Marketing for TIBCO. Jeremy discusses why TIBCO has added Spotfire, a BI solution, to their BPM (also see this press release). Then Jeremy gives 3 key differentiators for TIBCO's solution, and in answering why BPM needs visibility in the business, gives one of the best quotes from the summit: "You build that application for six months and you put it into production for six years."

Listen to or download the 2:08 podcast below:

Download file

The Three Core Drivers of BPM: Live Podcast With Pegasystems

2009-10-12T17:21:18Z

Last week at Gartner's BPM Summit in Orlando, I sat down with Alan Trefler, the Founder and CEO of Pegasystems. Alan had just given a well-received presentation, and he gives me a quick summary of what he talked about, and also discusses the ROI of BPM. Even more interesting, Pega's stock had hit an all-time high the week before, which definitely makes this podcast worth listening to.

Listen to or download the 3:24 podcast below:

Download file

Accelerating BPM Deployment: Live Podcast With IBM

2009-10-09T17:04:39Z

My first podcast from the Gartner Business Process Management summit was with Amy Lipton, Director of Marketing for IBM. As you can imagine, IBM has a great many things going on with BPM (click here to read yesterday's press release), and in this podcast, Amy emphasizes how they are focusing on usability. I also found it interesting that companies are no longer asking whether or not they should use BPM, but how quickly they can get it up and running. So definitely give the podcast a listen, and if you're interested in IBM's interactive seminars on Business Agility Now, click here.

Listen to or download the 3:24 podcast below:

Download file

Off to the Gartner BPM Summit

2009-10-02T19:03:08Z

Bright and early Monday morning I am off to the Gartner Business Process Management Summit in sunny (I hope) Orlando, Florida.

If you're also planning on being there, let's have a sit-down and see what you and you're company are up to in these exciting times for BPM! If interested in a meeting (and a potential live podcast), please email Lisa@ebizq.net.

Hope to see you there!

BPM & SOA: Together or Separate?

2009-10-01T18:39:11Z

This issue has been bouncing around ebizQ and the blogosphere as of late, and I thought it might be interesting to compile everything that's been said into one blog.

ebizQ ran this question in the BPM Forum, Do You Think BPM and SOA Are Going to Merge?.

Michael Poulin started it off with: In short, my answer is YES. However, this will happen (in a matter of next 3-5 years) in the form that IT does not anticipate (this is my guess).

JP Morgenthal countered with: This question further exemplifies the misunderstanding over what BPM and SOA are. BPM is a practice focused optimizing your business processes based on your business mission. In this way, you might optimize around cost, speed, etc. SOA is about rationalization of the application portfolio through service-orientation.

John Michelsen stated: BPM is a natural entry point for SOA, and since SOA should be driven by business needs, you will only see this become more prevalent.

Mike Kavis sided with JP, only with this caveat: I agree with JP that BPM and SOA are two different things. However, I think one of the biggest reasons for SOA failures is the lack of focus on business driven initiatives in favor of technology driven initiatives.

Miko Matsumura offered this: I propose that a good way of looking at it may be that BPM and SOA are getting married. Clearly when two people get married, they dont "merge" and that there is a danger in thinking of them as one person.

Altogether, in 12 responses, the yeahs and neahs tied up at 6. Looks like a Silicon Valley standoff. JP Morgenthal followed with this blog, Keep Your SOA and BPM Initiatives Separate.

Jignesh Shah wrote: Combining SOA and BPM initiatives into a single program is not necessary - or even possible in many cases. They are driven by different players with varying goals as you pointed out. However, 'alignment' of SOA and BPM initiatives results in considerable benefits to both.

While it starts as a NO, I think it should count as a YES. Yes 7, No 6. Next up...

Geoffrey Meissner wrote: I must agree that BPM and SOA are two very powerful tools that arose in the same timeframe. HOWEVER, I must disagree that they shouldn't be more closely tied.

Yes jumps into the lead at 8 to 6. Next we have:

Gagan Saxena: Maintaining and managing a library of Services is distinct from managing a set of Business Processes, but the two efforts need to talk back and forth to minimize wasted effort and time to market.

The lead is closing, with the score now 8 to 7.

The final group of comments runs the board with 5 Yeahs in a row, summarized by:

Tony C: So if SOA isn't the automation framework required for automating BPM, what are the alternatives? (silence deafens).

Final tally:

SOA & BPM Together: 13
SOA & BPM Separate: 7

But let's give the last word to JP:

JP Morgenthal: The business is SOA's #1 customer. Some SOA efforts may support a BPM initiative, but it also might just support business partner integration or portfolio rationalization, which results in lower TCO. While the two can share some common goals, venn diagram wise, each stands alone with a small percentage of overlap.