Integration World Day 2: Continuous Process Improvement, Continuous Business Transformation

Bruce Williams, SVP and GM of BPM Solutions for Software AG/webMethods talked about BPM and how it enables business transformation. Bruce, who I had a chance for an in-depth chat with yesterday, comes from a solid Six Sigma background — including writing books on Six Sigma and Lean — which makes his focus on process improvement a natural. He started with a timeline of quality management from the 1950’s PDCA through TQM, BPR and other trends to the current focus on Lean Six Sigma. There are a lot of tools and techniques that can be used to improve processes, including BPMS’ that can be used to handle the automation, monitoring and governance side of things.

He outlined three steps to process performance happiness:

  1. The “B” in BPM – this is about your business. Considering that I give a course called “Making BPM Mean Business”, I’m totally on board with this. Bruce’s points included knowing where value is created, measuring what’s happening in the business processes throughout all stages of improvement, ensuring that the voice of the customer is heard, and allowing the business to determine the goals and drive the agenda of process improvement.
  2. Build to an architecture. In addition to models, methodologies and leveraging existing systems and assets, this also includes developing expertise in process and integration. I find that the process improvement centre of excellence approach works well in a lot of organizations, which typically includes both architecture and the expertise around it.
  3. Implement incrementally, improve continuously. Incremental implementation is something that I always recommend: not only do you get benefits earlier, but the vision of what needs to be implemented will change as soon as your first project goes into production.

This was a pretty short presentation, and they moved on quickly to the customer innovation awards. The winners were Corporate Express in the productivity category, Motorola in the business agility category, Lenders First Choice in the innovation category, DSM in the ROI category, and Satyam in the partner innovation award.

Karl-Heinz Streibich gave a brief closing address; the remainder of the day is breakout sessions and the conference finishes at the end of today, so this was the last general session.

Integration World Day 2: Next Generation SOA

Santosh Mohanty from Tata gave a presentation on SOA, with a bit about the current generation, and how to move on to the next generation. Tata is a pretty major sponsor of the conference: I think that webMethods created a new “diamond” level of sponsorship just for them, which gives them both the opening night reception plus a keynote this morning.

His lessons for achieving next generation SOA:

  • Define agility controls.
  • Create an agile platform.
  • Articulate enterprise value in terms of efficiency, agility and adaptability.
  • Create a performance framework in order to create a performance-driven organization. This ties in strongly with webMethods message about “measure first” and the focus on BAM and analytics.
  • Create business and IT collaboration. Much easier said than done, and I’m not convinced that business needs to be all that involved in SOA since it’s really not relevant to most business people how the services get delivered, just that they are delivered. Of course, I see BPM and SOA and two distinct technologies; those that see BPM as just an extension of SOA will see business-IT collaboration as a necessity, and I think that Tata may fall into this latter camp.
  • Establish the right governance.

Tata was (I believe) one of the first companies to achieve CMM level 5 certification, and it makes sense that Mohanty’s first point is about control. It won’t do much to foster emergent applications, however. I think that all the large systems integrators are in a similar position: although there’s lots of work for them around legacy modernization and creating services, the current generation of BPM tools has to scare them, since it allows organizations to do a lot more of their own codeless development of business processes.

Integration World Day 1: Best Practices in Delivering Results with BPM

Bruce Beeco of Cox Communications told their story of how and why they implemented webMethods BPMS. Their goals:

  • Reusable processes independent of channel
  • Consistent experience independent of channel
  • Visibility into processes
  • Proactive on customer-facing problems
  • Automate manual tasks to reduce cost and errors
  • Improve time-to-market for new products and services

Overall, their goal is to move the processes out of the front-end applications using BPM, leverage existing services and provide monitoring and business health using BAM.

They started a number of BPMS initiatives, including monitoring and alerting around existing applications, modelling new processes, portal interfaces and others; some of these are in production, while others are just getting started. Being a Six Sigma shop, they took on business processes by creating a shadow process to an existing human process: they created a process model, collected data from the real world and correlated events to the model to provide some “visibility” into the process, particularly for the purposes of optimization.

He looked at the link between SOA and BPM, and said that you can’t do services without at least modelling the processes, since otherwise you just don’t create the right services: the models identify the service integration points and required functionality. He also addressed the issue of when to put functionality in a service versus a process in BPM:

  • Use BPM if it maintains state; services are stateless
  • Use BPM if you have variable complex outcomes; services outcomes are fixed and predetermined
  • Use BPM for composite process solutions; services are discrete entities
  • Use BPM for process visibility; services are black boxes

His key lesson learned was that BPM and SOA need to be done together in order to have a holistic view of your operations and business.

Integration World Day 1: BPMS 7.1

Pete Carlson (Product Development) and Matt Green (Product Marketing) gave some of the high points of the new 7.1 release of webMethods BPMS. Their first question to the audience was to determine who is already involved in a BPM project in their organization: almost no hands went up. As it turns out, most people are here to learn about BPM and what webMethods has to offer. Given that the audience at the conference is mostly IT and mostly work with the webMethods ESB product, this isn’t all that surprising; BPM is a relatively new concept to most of them even if they’ve been involved in the integration-centric end of the BPM spectrum. I think that the biggest challenge for the Software AG webMethods group is, in fact, to gain greater visibility in the business areas of customer organizations, which is where many of the other BPMS vendors already have much more visibility.

A few points about the product:

  • Eclipse-based modelling tool with multiple perspectives for business analysts and developers to share a common model.
  • There’s a process debugger built into the modelling environment, which allows you to step through a process to see how the variables change as the process flows
  • Simulation is new for their BPMS, so they’re pretty excited about this and it’s a big focus at this show
  • BAM is also highlighted as a major part of their suite, and has separate product sessions here at the conference. They do some interesting things using prediction models that I saw briefly in a demo last night, and do automatic baseline metric creation based on running processes.
  • Business calendar, so that you can schedule something for 3 business days versus 3 calendar days (this is definitely behind the BPM curve as a new feature)
  • Integration of Cognos for business intelligence to be able to drill down into data that you might see in a dashboard environment; this will be fully embedded within the webMethods product suite in next year’s version
  • Integration of Blaze Advisor for business rules management, although the rules management user interface won’t be fully integrated into the webMethods environment until next year
  • A new UI design environment that allows for codeless generation of portals and form-type interfaces.

Carlson gave a live demo, showing how they can call services from their ESB, services outside their ESB, business rules and human steps all in the course of a process. Interestingly, one thing that he showed was an executing process instance, including the information that it was in the state "Queued" — does this imply that an instance can only have one state at one time, hence can’t execute parallel paths? Or does that say something about the small number of states that can exist?

He showed their simulation, which has the requisite animated dials to show where work is piling up in the system; although you can take a snapshot of the conditions and the results of any particular simulation scenario in order to manually derive improvements, there’s no tools to suggest ways to improve processes, such as I’ve seen in some other products. Instead, it’s a matter of tweaking the parameters and watching the effect on the simulation, or exporting the results to Excel to perform some other analysis on them.

He showed how individual tasks in a process map are edited using the new version, which is a view that allows you to modify the roles, data values, events KPIs and user interfaces at this point in the process. In particular, the event capabilities seemed pretty powerful, although I’m not sure if it supports the full BPMN set, and it’s certainly not represented in the process map as BPMN events.

The presentation finished up with a very quick look at the design time and runtime architectures, then (for the 3rd time today) a look at Forrester’s two waves that show them as the top vendor in integration-centric BPMS as of Q406, and in the leader category (barely) in human-centric BPMS as of Q307. They’re obviously pretty pleased with being a leader in both categories, although they’re pretty neck-in-neck with TIBCO, with BEA and IBM trailing a bit behind but still having a strong showing in both waves.

Integration World: Peter Schwartz

The futurist Peter Schwartz gave the final keynote this morning; I saw him giving a closing keynote at the Gartner BPM conference in February this year and really enjoyed it; unfortunately, this was pretty much the same talk. Long tail…blah, blah, blah…nanophotonics…blah, blah, blah…flattening world…blah, blah, blah…global warming…blah, blah, blah…ubiquitous broadband.

Conference organizers should definitely take a look at who’s been doing the generic keynotes at recent conferences that their attendees are very likely to have attended.

Integration World Day 1: Peter Kurpick

Peter Kurpick, CPO (Chief Product Officer) of webMethods Business Division, gave an overview of the technology direction. He talked about the paradigm for SOA governance, with the layers of technical services, business services and policies being consumed by business processes: the addition of the policy layer (which is the SOA governance part) sets this apart from many of the visions of SOA that you see.

He brought along Susan Ganeshan, the SVP of Product Management and Product Marketing, to give a (canned) demo similar to one that we saw yesterday at the end of the analyst sessions. She showed the process map as modelled in their BPM layer, where the appropriate services were called and other points of integration using webMethods, then we saw the custom portal-type interfaces for customers, suppliers and internal workers. They have Fair Isaac’s Blaze Advisor integrated with the BPMS that allows them to change rules for in-flight processes, and their own monitoring and analytics as well as some new Cognos analytics integration. She also showed us the CentraSite integration, where information about services and their policies are stored; CentraSite can be used to dynamically select from multiple equivalent services based on policies, such as selecting from one of several suppliers. The idea of the demo is to show how all of the pieces can come together — people, web services, B2B services, legacy services, and policy governance — all using the webMethods suite.

The original core functionality provided by webMethods is the ESB (originally from the EAI space), but now that’s surrounded by BPM, composite applications, B2B integration and legacy modernization tools (from the Software AG side). Around that is BAM, which is being raised in importance from being just an adjunct to BPM to being an event-related technology in its own right. Around all of this is SOA governance, which is what CentraSite brings to this.

The next release, due sometime in 2008, will be a fully-integrated suite of the Software AG and webMethods products, although Kurpick didn’t provide a lot of information.

Integration World Day 1: Richard Maranville, FedEx Kinko’s

Richard Maranville, SVP and CIO of FedEx Kinko’s (FedEx acquired Kinko’s in 2004), gave the first customer presentation of the day, talking about how they use webMethods to integrate their systems.

FedEx has always been big on technology, and changed the courier world with paradigms like huge centralized auto-sorting centers, where all packages are sent to one central location for sorting and redistribution. You can’t do that without a significant amount of well-oiled technology. Since FedEx has grown significantly through acquisitions such as Kinko’s, they’ve also had to be able to integrate these acquisitions — and their technology — into the mother ship.

From Kinko’s point of view, the struggles since the acquisition have been primarily about the integration of systems and data with the parent company to allow for better functional integration with the parent company. They had a pretty low level of technology in a lot of business area, with many purely manual processes and re-entering of data from one system to another, which introduced both errors and latency. Now, however, the applications are integrated so that data flows from one to another in real-time, making it available not just within one location but to other locations that might be serving the same customer or that have similar requirements. This has even been extended out to their customers, so that customers can enter and track orders directly, and the underlying process is done in exactly the same way as if it were happening in a FedEx Kinko’s location. They reused components and stitched them together with webMethods, allowing them to add order tracking using FedEx’s existing world-class tracking system rather than building it themselves, and doing the entire integration in a matter of days. They’re also integrating with FedEx services: you can upload a job for printing and have it shipped back to you.

They’re going to be building some new dashboard functionality using the webMethods BAM tools that leverages all the bits and pieces that they already have, from their legacy systems to the new integrations.

I really like the format of these keynotes, by the way: at the end of each formal presentation, Mark Jeffries pops back up on stage to sit down with the presenter for a few minutes and ask him some questions.

Integration World Day 1: David Mitchell keynote

David Mitchell, COO of webMethods Business Division, was up next with a much greater focus on BPM. webMethods had been positioning BPM — including both system-to-system and human-facing — as their growth area before the acquisition, and that’s still the message. Companies are competing on process, not just products and services, since process represents the ability to meet customer requirements in the face of changing conditions. As I’ve written many times before, the value is in process agility and visibility in a heterogeneous environment.

He had a number of case studies of how customers have improved their processes and operations based on what they’ve done with webMethods to integrate their systems for the goals of agility and visibility. He said "If you have unlimited time and unlimited money, you can pay IBM to do this for you", followed by the clear message that the rest of us should be using webMethods instead.

He also discussed the impact of the merger: long-time Software AG customers engaging with the webMethods product line since they trust Software AG to help them with their modernization efforts. There were some interesting comments about mergers in this marketplace, and the issue of aligning the products and customers of the acquired and the acquirer. As Mitchell put it, that question has now been answered for webMethods, but is still up in the air for companies such as BEA and TIBCO.

Integration World Day 1: Karl-Heinz Steibich keynote

Well, not really day 1: there were classes yesterday, but this is the first day of the Integration World conference per se. Someone in webMethods management must have a serious love for electric guitars, since the prize at last night’s reception was a Gibson Les Paul guitar, and a loud (for 8:30am) rock band was on stage to open the conference. My ears are still ringing.

Mark Jeffries of webMethods led off this marathon 2-hour keynote session, then Karl-Heinz Streibich, CEO of Software AG, was up to talk about the combined corporate structure and their general future plans. He showed the evolution of the software industry, from build to buy to compose, and how Software AG sits directly on that infrastructure space focused on composite applications. It’s not like companies are throwing away all the applications and infrastructure that were built (or bought), but the growth is in the composition area. This growth, plus the webMethods acquisition, will push Software AG into the $1B revenue range next year (although those are, unfortunately, rapidly declining $US 🙂 ).

I attended the BPM Advisory Council breakfast prior to this, and had an interesting discussion with a couple of large (and long-time) webMethods customers about how webMethods stacks up in the BPM space. Clearly (to me, anyway), they’re behind the curve in terms of the pure BPM technology, but they play to their strengths in the integration end of things. The customers pooh-poohed the BPM vendors that don’t provide the whole integration stack as "just calling individual services", which is a bit of a simplistic view, but considering that these customers are coming from the traditional EAI-type usage of webMethods, it’s understandable. When you’re modernizing your legacy systems, there needs to be something in there to allow you to easily plug into those old systems using a web services interface, and that’s provided by webMethods. The Software AG acquisition will allow them to strengthen those linkages for Adabas/Natural applications, which are technologies still well-represented within large organizations.