I recently published a sample business capability map for insurance firms as a way to illustrate many aspects about the description and use of this business architecture methodology. One of the readers of this report commented “It seems the business capability maps provide value as a complement to existing methodologies” and referenced Strategy Maps and Business Process Modeling. This made me realize that I should explain more how Forrester sees capability maps as more than a complement – and why we, along with many of our clients are so ‘jazzed up’ about this methodology.
A bit of background: Forrester views capabilities as stable elements of a business model, where the dynamics of a firm are reflected in the business goals for the capability, and the processes, functions, information and other assets which are how a capability is delivered. A capability map describes all the capabilities, and the relationships between them, which an organization needs to have as part of their business model to achieve outcomes. Think of Sales as a simple example, where there are business goals and associated metrics for Sales, and processes, functions, information and people assets necessary for this capability to be delivered. And Sales has a relationship to Fulfillment, to Customer Service and to Marketing.
BPM has always provided fertile ground for new ideas but often results in confusing business process and application professionals. Recently Dynamic Case Management and Social BPM are being spoken of as important directions for BPM. But how do they relate to one another? And since social media is an important part of both, what value does social really add to process improvement and Line of Business professionals if any? No doubt social improves collaboration in process design, and more important is the ability -with analytics to add a new form of input to process improvement -input that may go directly to the CEO. This is part of the BPM advantage but the area of Case Management may have more dramatic value as you collaborate during a critical incident like an adverse drug reaction, or create a stronger community to deliver a more personalized service event -or to gather "voice of the customer" data to improve case handling. But in both BPM and Case -social is an enabler and takes a seat along side important advancements such as analytics, convergence of BPM and ECM, and a stronger domain focus.
When business processes finally become intelligent
Over the past several months I have done a lot of research on the BI market, the trends and the vendor landscape. There is a clear indication that BI solutions are becoming more sophisticated, more intelligent and – more integrated into other applications to enhance the performance of the application supported business processes.
Very recently now, in discussions with BPM vendors like IDS Scheer, HandySoft and many others it became very eminent that from the other side, BPM solutions are moving steadily into the field of Business Intelligence too. The world of BPM and BI solutions are converging to bring intelligent business processes to the market – eventually. However, today we are still some steps away from this picture and the convergence of BPM and BI will likely proceed in smaller steps are outlined in the below BI-BPM convergence model.
Today several BPM vendors have actively integrated business intelligence capabilities into their solutions. Larger ones like IDS Scheer have developed their own analytics while smaller vendors like HandySoft are using OpenSorce components offered by JasperSoft and other OpenSource BI vendors. The integration offers users new and consistent insights along the whole business process. A user in this context means both:
a) Business users that are part of the business process get access to relevant information and reports that increase the efficiency of the process, and
b) Business process owners get an insightful analytics of the process metadata to be able to further enhance and streamline the process.
Interest in case management will climb higher and higher throughout 2010. The drivers are a mix of old and new an include. The most important - there will be an increased need to manage the costs and risks of servicing customer requests — like loans, claims, and benefits. Customer experience has evolved to where fundamentals of the product are secondary. Its now about design and the personality of the experience. I tried to help my daughter buy a car the other day. The Ford Focus didn't make the cut. Why? No lighted mirror. I then knew I was in for a long process.
There is also a greater emphasis on automating and tracking inconsistent "incidents" that do not follow a well-defined process. Does homeland security come to mind? And lots of new pressure on government agencies to respond to a higher number of citizen requests. But this next one is the killer. We will see new demands from regulators, auditors, and litigants on businesses to respond to external regulations. After Bernie "made off" with 50B or so the SEC had an epiphany of sorts. Gee.Lets give the field agents more authority to investigate — and perhaps depoliticize the process. Brilliant. Lets let the folks that actually know the regulatory target actually make decisions. Well. Great. We think this will lead to a ramped up number of investigative inquires and guess what? Each one is best handled as a case where consistent policies, audit trails, and analytics can apply. Lastly, there is the increased use of collaboration and social media to support unstructured business processes.
Forrester analysts will host a “Tweet Jam” on February 10, 2010, from 1:00 – 3:00 PM ET to answer questions from Business Process professionals and App Dev professionals about top challenges facing their process improvement initiatives. During this interactive Jam session, Forrester analysts will share the results of our groundbreaking “Business Process Professional Role Deep Dive” research that uncovered major trends and critical challenges facing aspiring process improvement programs.
Key questions we will tackle during this Tweet Jam include:
1. Which role(s) should lead your business process initiative?
2. What are the best practices for establishing your BPM COE?
3. Do yourtraditional business analysts have what it takes to drive BPM initiatives?
4. How heavily should you rely on your software vendor for project implementation?
5. How should you connect your EA and BPM initiatives?
6. Which process improvement methodology (Six Sigma, Lean, TQM) is best for your initiative?
7. How should you incorporate BPMN modeling into your process initiative?
8. How should you measure the progress or success of your process initiative?
9 What’s the typical sizeand composition of process improvement teams?
10. How should process improvement connect to master data management?
11. How do you think Social BPM will impact your organization?
The session will be hosted by Clay Richardson, Connie Moore, CraigLe Clair, Alex Peters, John Rymer, and Ken Vollmer. To join this interactive conversation, simply tune in to the #bpmjam hash tag on Twitter or follow the analysts that will host and moderate the session.
Business Process professionals are scratching their heads at today's announcement by Progress Software to acquire Savvion. Process professionals are asking what exactly does this deal mean - for Progress and Savvion's combined customer portfolios and for the broader BPM market.
Connie Moore and I sat down earlier today to record a video blog post on what this deal means for Business Process professionals and to the broader BPM market.
In our video blog post (also posted on Forrester's YouTube Channel), we outlined three key themes driving the Progress/Savvion deal and how Process pros should view and respond to the latest round of acquisitions in the BPM space: Process pros should: