I’m in Chris Venable‘s session.  Chris is a Senior Solution Architect at Walmart and runs in the #entarch crowd on Twitter.  Chris promises me an architecture heavy, product light talk.  Chris is lead architect on Walmart’s SOA competency center.

Opening the talk is a member of Walmart’s IBM partner team.  The heart of the engagement with IBM was getting the SOA program off the ground.   The CoC supports the enterprise on a progression to higher value, from process automation to process optimization.  The CoC had to create a SOA framework that guided a rogue service development environment to an evolved SOA practice, focused on process optimization.

Working on establishing a business architecture, business view first.  IBM offers component business model.  Walmart had created their own business capability view.  By understanding the business architecture, Walmart could focus attention on the highest value services.

Setting context, IBM is showing a Business Process Optimization (BPO) reference model.  As Steve Mills spoke to this morning, the foundation is SOA.

Transitioning to the Walmart story, they used Goal Service Modeling of SOMA.

Chris is up now.  His section is entitled Business Value Through Services: How service-orientation helps increase agility and reduce costs.  Chris introduces the section as the traveling roadshow sales deck that he uses internally.  That’s great.  Marketing is a critical tool for architects.

Chris has been with Walmart for about 3 years.  He is sharing some numbers on customers, transactions, stores.  Needless to say, they are big.  A Fortune 1 company.

Walmart is very successful.  And renowned for IT.  But, Chris shares not as modern as you might imagine.  Chris points out that for the first 21 years, the biggest change was scale.  With that scale, they reinvented logistics and supply chain processing.  It was a very trial and error environment.

In 1983, the first real shift happened, Sam’s Club.  Still retail, but a warehouse model.  Sam’s was stood up as an independent channel (entity).  Next, grocery and superstores.  Again, managed independently.  At this point complexity is growing.  Then, an international move, which increased complexity.

Now, 15 markets globally (and counting) and a wide variety of retail operations.  Yet, IT was operating as it had always done.  As Chris points out, that’s not sustainable.  Applications are bloated and brittle.  This is the enemy of speed.

Needed to reorient thinking to fundamental building blocks of business rather than applications.  Chris is showing a slide from Anne Thomas Manes, the collision course of Portfolio Bloat, IT Budget & Development.

Strategies enabled by SOA: Business Strategy (Increase Agility, Reduce Costs) and IT Strategy (Improve Usability, Improve Maintainability, Reduce Redundancy).

Cost reduction is a corporate philosophy at Walmart (lower prices).  Cost savings doesn’t need to be sold.  Agility though, was harder to understand.  Chris is talking football now, Barry Sanders could move, change field direction, with quickness.  Fast isn’t just about straight speed.

Chris has matched his internal marketing pitch to the CEO’s message on Growth, Leverage and Returns.

An example he is giving is “Site to Store”.  All those capabilities existed at Walmart, but the orchestration is different.  Without SOA, have to create a new application with redundant code.  With SOA, becomes a new process orchestration.  This fits the growth message: “quickly repurpose assets”.

After Chris wins support on the value, he drops into Applied SOA.  How do we do this?  That’s the section he is on with us now.  ”Business results through services architecture”.

As building out SOA Framework, Chris knew they would struggle with Service Identification.  That reorientation to business thinking from application thinking.  To resolve this gap, Walmart brought in SOMA.  They actually picked IBM because of SOMA, not the other way around (IBM, get SOMA).

At first, they tried to drop SOMA into a project-in-motion.  That wasn’t successful.  SOMA is pre-project.  SOMA is about the business architecture, not software engineering.

Instead, they extracted SOMA out of the software process and brought it to business product managers.  These are the folks looking out 2-years.  Bringing SOMA to the product teams helped with SOA, and helped the product teams with their thinking.

Chris is showing SOMA materials.  He is calling out the importance of Goal-Service Modeling and capturing KPIs and Metrics.  In touching on challenges, he notes that people weren’t familiar with speaking about business goals and business rules.  We talk broadly, in terms of business requirements.  [Talk about the system, not the business]

Now, Chris is talking about SOMA and Product Roadmapping: Identification–>Specification–>Release Plans == Product Roadmap

The business product managers were able to benefit from applying SOMA concepts to business product roadmapping,

Chris “IBM calls it BPO, I call it bringing order to chaos”.

Me: I call it, real architecture.

Great story.  Presented really well.

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It’s Day 2 of Impact, back in the “main tent” for the opening sessions.  Opening today’s session is Katie Linendoll.  Katie is telling us how she was slaughtered by Watson in Jeopardy.  Her take:  $2.  Watson’s: significantly more.

Yesterday, was focused on the Transformation.  Today, is focused on the How.  Katie promises the How will come across in real customer stories.

First IBM speaker up is Steve Mills.  Slide accompanying Steve “Does your IT Architecture Enable Business Agility?”  [I'm guessing a lot of folks are thinking, "some, but not enough".]

Steve begins with service-oriented architecture.  [Still not dead].  Steve is focusing on SOA’s power to provide agility by unlocking data and functionality trapped in existing systems and datastores.  This liberated data and business capability is then consumed by business processes.

SOA, the architectural style, underlies the Cloud.

“Business Agility requires a robust SOA infrastructure”.  Foundation for BPM, Process Integrity, Information Integrity and the Cloud.

Agility isn’t just about speed.  Agility requires flawless execution.  Even more difficult with distributed processes.  Steve is emphasizing the importance of process integrity, transaction integrity.  Unlike our past CICS days (I remember those), we need to think past vertical integrity to horizontal integrity.  Recovery and compensation are critical capabilities.

Not just learning from the past, architecture must look forward to new delivery models, such as mobility,

Steve is reeling off some customer examples.  Unlike past SOA case examples, these are all examples of the “-ilities”.  High volumes, low latency and big dollars.

Bit of a shift now to Smarter Planet.  Smarter SOA needs Smarter Planet principles, such as instrumentation.

Katie is introducing a video on the City of Madrid and the terrorist attack of 2004 that impacted transportation and communication systems.  In the aftermath, the city created a central emergency response city.  Not just response, but real-time monitoring of the city, including transportation and responders.  More than a systems solution, there was significant business process change.  You can check out a related video here.

Next up is Phil Gilbert, VP for the IBM Business Process Manager product line.  Phil comes to IBM via the Lombardi acquisition.

Phil is talking about the increasing level of complexity in organizations compared with the static level of resources to combat that complexity.

Phil credits Alfred P. Sloan as being the father of business process management.  Sloan emphasized visibility and governance.

The cadence of IT improvement doesn’t match the cadence of complexity in our enterprises.  We can’t scale out of this problem.  Phil is not talking about turning business people into coders.  He equates business people & BPM is like attorneys and word processing.  We have a tremendous amount of productivity by removing the typist layer.

Phil states you can’t start business process improvement projects without considering technology up-front.  He is challenging Six Sigma type efforts.

One of IBM’s big announcements at Impact is the new IBM Business Process Manager.  This is a combination of WebSphere Process Server and Lombardi.  We are seeing a demo now.  There’s been a mixed reaction to this product by the analyst, influencer community.  This isn’t my area of specialization.  I’m curious to hear what Sandy Kemsley thinks.

Phil has just introduced Kerrie Holley, IBM Distinguished Engineer.  Kerrie is going to speak on the methodology behind (in-front of) the new BPM offering. IBM’s method for business process optimization.  Method has 3 principles: Focus on Outcomes, Innovation over Incrementation and something I missed.

Phil is back.  IBM has a broad portfolio of BPM capabilities, such as business monitoring, decision management, advanced case management, process discovery and compliance and process automation and integration.  Phil is saying this variety is a positive.  Apparently, his indoctrination into IBM is now complete.

Next customer example, Banco Espirito Santo.  Short video.  BPM story.

Finally, real-live customers.  A two company, four person panel, “business and IT better together”, moderated by Frank Kern, IBM SVP.  Customers are from Nationwide Insurance and Verizon.  Each company is represented by a business and IT person.

Verizon told a speed story — 3 months to 3 days — for an application to support the NFL draft.  Nationwide, being a good sport, is talking about “accounting transactions”.  Pulled rules from 387 systems into iLog, now business maintains those rules centrally.  Reducing ledgers from 17 to 1.

Getting on top of information explosion, what are challenges?  Nationwide: Transformed data thinking, no longer checking the data checkers.  Now using data more strategically.  Made 80% improvement in performance and throughput across back office.  Data is now trusted information.

Key lessons: Focus on end customers; systems performance is absolutely critical (design performance in, not test it in); need to consider new delivery models (mobility); strong executive sponsorship and shared strategic vision (business and technology).

Katie is back, introducing another customer story: WorkSafe Victoria.  This is a process automation story.  iLog Rules Engine plays a big role in the solution.  84-85% straight through processing achieving.  End-users can now focus on higher value work.

Posted by brenda michelson at 12:57 pm in bpm, cloud computing, soa | Permalink | Comments(1)
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This week, I’m at the IBM Impact 2011 conference in Vegas. Impact is IBM’s Websphere focused conference. I expect to hear a lot about BPM, SOA and Cloud, Cloud, Cloud.

Rocking opening band, including some iPad playing “strings”. The conference theme is Optimize for Growth. Deliver Results. Breaking the ice for the show is comedian Larry Miller.

Starting the IBM portion of the show are Nancy Pearson and Dave Farrell, tying the Optimize for Growth/Deliver Results theme with BPM, SOA, Cloud and Websphere.

This morning is about transforming your organization for growth, local transformation to enterprise-wide. This is achieving agility, starts with (as I always say) Visibility, includes Operational Dexterity and Process Integrity.

John Iwata, SVP Communications and Marketing, up to speak on IBM’s Centennial. “100 years of transformation”. From cheese slicers and punch cards to Watson. Even transformation within a segment, 40 to 80 column punch card. Drowning in punch cards. Inspired by Bing Crosby pre-recorded radio show, IBM labs experimented with magnetic tape. One tape could hold 35K of punch cards. Customers did not immediately accept, “see and feel data on punch cards”. [Imagine Tweets via punchcards].

Iwata describing “civil war” within IBM set off by Tom Watson Jr’s announcement of S/360. Once delivered, customers again didn’t know what to do with the technological advance. Point here (my interpretation), transformation is hard, but worth it.

The possibility and need for transformation is acute. IBM has long-recognized that technology is moving out of the datacenter, to mobile and devices. “Smart dust”. With this pervasiveness comes more data. With that data, can make the planet smarter.

In Fall 2008, set out to educate others, make others believe, in the opportunity of Smarter Systems of all types. However, belief is only the first step. Need to act on these beliefs. Behavioral scientists say this is a “lack of agency”. Iwata is leading to point that IBM will help us create agency.

Iwata calling out general pattern in transformation: Instrument to Manage, Integrate to Innovate, Optimize to Transform.

“Technology, even as powerful as Watson, is not enough.” Need leaders. Need to give people the knowledge and confidence to act. – Iwata

Dr. Jeffrey Burns, Chief of Critical Care, Children’s Hospital Boston is up now. He’s talking about caring for critical care American children as they are traveling outside of the US. Dr. Burns is discussing the gaps in information sharing and techniques to guide a doctor across the globe on a procedure they aren’t familiar with.

From a particular experience with a child traveling in Guatemala, Dr. Burns was inspired to take on the challenge of Medical Knowledge Transfer. The current system is very dependent on physical co-location and observation. It is also very random. What you see one day, is not guaranteed to be seen the next.

Adults learn by 4 learning styles: active experimentation, concrete experience, reflective observation and abstract conceptualization. Most people fall in a quadrant. We need to move people out of comfortable quadrant, through all 4. Forcing people through this cycle increases learning 25%.

Implementing this program within the hospital helped. But, wanted to extend this learning to the cloud. Inspired by his son playing an on-line game with local friends and global players, he got a “kernel of an idea”. Gaming embeds a learning experience.

Next, in visiting the Masters website, he could watch the live tournament, get a putting lesson and then simulate via an avatar. That site was “powered by IBM”.

Burns’ team tracked down the IBM team to tackle the needs of pediatric care: infrastructure, vaccinations and pediatric care. The solution though, needed to stretch from resource limited environment (3rd world) to resource rich environment.

Need to break information bottlenecks. How do you get knowledge from one country to another. The solution is “PICU Without Walls“. Cloud-based. Designed to create curricular maps. Designed with social networking baked in.

The PICU is designed to promote information-exchange from all remote locales.

“Never doubt that a small group of thoughtful, committed citizens can change the world; indeed it’s the only thing that ever has.” – Margaret Mead

Marie Wieck, GM Application and Integration Middleware – “Change is everywhere. CIOs expect change in environments, can’t predict where it will come from”. Change, complexity and uncertainty is new normal. Embrace change. “Make change happen, don’t let it happen to you.”

“Transformation is NOT optional”. Leadership support first, technology follows. Follows in talk too, citing WebSphere implementations related to transformation. This must be the “integrate to innovate”, part of the message.

IBM is announcing new delivery models: for mobile, for cloud and for appliances.

Wieck emphasizes Iwata’s earlier message (principles for transformation): Visibility, Operational Dexterity and Process Integrity.

Wieck asks the attendees: “Do you view market uncertainty as a risk? or an opportunity?”

New: IBM Business Process Manager: Lombardi + WebSphere Process Server + iLog + collaboration + simple install (6 clicks)

VP and CIO of Caterpillar, John Heller on Transformation at Caterpillar. Easy to make difficult decisions during hard times, harder to make difficult (transformative) decisions during good times.

83 year partnership with IBM. Caterpillar on physical infrastructure, IBM on digital infrastructure. Heller speaks to convergence of the two, physical and data with Smarter Planet, Smarter Systems.

We cannot ask enough questions to get the answers we need to know. Getting better answers for decision-making with tools such as iLog.

Focused on being the low-cost producer. Not interested in sharing their customer base. Calls out IBM’s transformation from Hardware company to Services company.

All innovation should be quantified. Open Innovation with IBM. Big win expected with Smarter Physical Infrastructure.

Innovation: Ideation, Adoption and Execution. 70% of transformations fail. “Fact is: culture eats strategy for lunch”.

Heller is describing fleet of smart (huge) trucks that are part of smart mining operations. Focused on advanced condition monitoring.

Heller is big IBM advocate. Standing up for IBM’s partnership in transformation.

Marie Wieck is back. Integration is essential to driving innovation. CIOs are planning for 55% greater integration in their portfolios today. Not just integrating portfolios, but cleaning them up. Removing applications. Using SOA to drive these changes.

Announcing: New Websphere ESB registry offering.

Also, need to ensure your application infrastructure is intelligent. Reduce complexity. Raising the bar on Websphere, announcing version 8.0 of WAS, supports JEE 6. Extensions for Web 2.0 and Mobile.

More announcements: DataPower Appliances, Application Accelerator extension. Cast Iron for Cloud Integration. Oh, and here comes the Cloud Standards Customer Council. Also IBM Workload Deployer (more cloud). Finally, (I think) IBM Smarter Commerce portfolio. This is Websphere commerce + Sterling.

Quiz to audience: “Can you deliver new products and services quickly”? “Can you see across company & partners”? “Can you adapt your processes”? and a few more. Leading up to “Can you connect a smarter planet”? and “Can you make a difference”?

Bottom line: Transform to grow with Business Agility. (BPM, SOA, Cloud).

[Update on 4.12.2011: Realized I forgot my disclosures. IBM is not a client of Elemental Links. However, IBM invited me to attend Impact 2011 and arranged for my travel and lodging.]

Posted by brenda michelson at 1:15 pm in bpm, change-friendly, cloud computing, optimization, soa | Permalink | Comments(0)
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As I mentioned in September, I’ve been engaged by the stewards of the Process Knowledge Initiative (PKI) to expedite the boring, yet critical, start-up activities to create the foundation for the development of an open source body of knowledge focused on business process management.

Over the last month, we’ve progressed on the “more interesting” aspects, including defining the technical (really content) team structure and announcing the technical (again, content) experts and advisors.

This morning, in the BPTrends Advisor, Paul Harmon, co-chair of the technical integration team, published an update on the PKI (PDF), which included his perspective on the value of the to-be-delivered body of knowledge (PKBoK).

“As I have watched the PKI initiative gather momentum, I have become more excited about the potential of this effort. When I first began to talk about the PKI effort I emphasized that it would support the creation of a common understanding of process and process work. One hardly needs to edit a website like BPTrends.com to be aware of the variety of definitions that are in widespread use and the belief that anything that standardizes usage will make it easier to communicate the process perspective to business managers.

As I have worked with the PKI during the last few months I have begun to evolve a slightly different understanding of the value of the effort. I continue to believe that standard definitions are important, but I begin to see where PKI can contribute even more to the process field. The PKI is focused on defining a high level overview of the field and specifying high level tasks and techniques. We do not plan on defining the tasks and techniques in great detail since most of the tasks and techniques have already been defined by other groups. What I now envision is a circular target with a process definition in the center. Surrounding that, there are knowledge areas where process concepts are used. In the next circle, there are the tasks that describe the work process people undertake. In the next circle out, each task is associated with techniques. And, beyond techniques there are pointers to organizations and books that define specific techniques. Figure 1 below, represents a pie shaped slice from such an imaginary target.”

 

 

I think Paul’s pie slice is a great depiction of our intent.  We don’t want to reinvent the process field.  We want to help navigate it. Think of the PKBoK as ‘the Wikipedia of BPM’.

Want to help?  Visit the Process Knowledge Initiative website for more information.

 

[Disclosure: The Process Knowledge Initiative is a client of Elemental Links.]

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Moments ago, the BPM / SOA Community of Practice announced the winners of the 2010 case study contest.  The overall winner was Van Ameyde International

The Van Ameyde Group specializes in international claims and risk management for major international insurance companies, captives and brokers, government agencies, and corporate and industrial clients including the energy sector, the shipping industry, ports and terminals.

The Van Ameyde case centered on a new claims handling system called ECHO – European Claims Handling Optimization.  Read the case highlights – business scenario, ROI, project capsule, methodology and lessons learned – on the BPM / SOA Community Insights blog.

The runner-up winner was AmerisourceBergen Corporation, one of the world’s largest pharmaceutical services companies serving the United States, Canada and selected global markets with a focus on the pharmaceutical supply chain. Servicing both pharmaceutical manufacturers and healthcare providers, the Company provides drug distribution and related services designed to reduce costs and improve patient outcomes.

The AmerisourceBergen case describes an enterprise-wide BPM implementation that enables processes such as contracts management and chargeback, AP vendor reconciliation, pro-generics competitive pricing and the quote to contract lifecycle. This year, as part of the company’s broader business transformation initiative, AmerisourceBergen replaced its legacy system with SAP, and used BPM to create six new processes, including PO reconciliation and variance resolution. 

Read the AmerisourceBergen case highlights – business scenario, ROI, project capsule, methodology and lessons learned – on the BPM / SOA Community Insights blog.

To learn more about this year’s contest, visit the contest website.

 

[Disclosure: The BPM / SOA Community of Practice is a client of my firm, Elemental Links.]

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As Sandy Kemsley posted, we spent most of yesterday working with a team from BPTrends, IIBA and Queensland University of Technology (QUT), planning a new Process Knowledge Initiative.  The team came together to realize the vision outlined in Dr. Wasana Bandara’s research paper on Professionalizing Business Process Management. (PDF)

Dr. Bandara’s paper, co-authored by Paul Harmon of BPTrends and Dr. Michael Rosemann of QUT, calls for the creation of a comprehensive, extensible, open source, community-driven Business Process Management Body of Knowledge (BoK). 

The newly forming Process Knowledge Initiative will steward the creation of such a body of knowledge, which will be created by and for business process management professionals, academics and industry technology and service providers.

As this is a community driven and directed project, we have issued a call for action seeking business process community members who are interested in contributing to, or supporting, the BoK creation effort.  If this sounds interesting, please fill out the call to action form.

Why was I included in a room of BPM experts?  The team has contracted with Elemental Links for program start-up support.  As I promised Sandy, I won’t “meddle” in the Process Knowledge content.  That’s best left to experts.  Like you.  Get involved.

[Disclosure: The Process Knowledge Initiative is a client of Elemental Links.]

Posted by brenda michelson at 3:08 pm in bpm, process knowledge | Permalink | Comments(1)
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