Fujitsu trying to lose the "best-kept secret in BPM" label

Fujitsu‘s been in the BPM market for quite a while, but in the past has focused on OEM relationships with their BPM embedded within another vendor’s product. They’ve made more of a push lately on their North American marketing, and part of that is a series of seminars that they’re conducting in a few cities across Canada: Toronto and Ottawa this week, and some western locations likely to follow. I attended the Toronto seminar this week, which was given by Carl Hillier, a former colleague from my long-past days at FileNet. Carl’s been with Fujitsu for over a year, and is now part of Fujitsu’s push to market their name as a BPM vendor. What I like about attending a presentation with Carl (besides the obvious heckling) is that he always has some good material that I can borrow for my own future presentations. 🙂

The 2-hour presentation had 3 sections: BPM 101, quantifying BPM ROI, and a quick look at Fujitsu’s Interstage BPM product. The product part at the end was really brief, about 15 minutes, and the rest was pretty generic and could apply to any BPM product. Except for one in-the-weeds section about the specific technology of Interstage, this was appropriate for both business and technology attendees, and the audience was split about 50:50.

He started with some interesting messaging about BPM: BPM is not necessarily visible, it may be customized to look like other applications, or may be implemented “below the waterline” within other environments. Although this has definitely been the case for Fujitsu in the past with their OEM tendencies, I’m not sure that this is true for most other BPM vendors, many of whom prefer to have at least some degree of out-of-the-box implementations where their product is highly visible. That being said, I am starting to see a lot of BPM tucked into portal interfaces, where it is less visible.

He had the usual high-level definition of BPM — automation + integration + optimization — and went on to list drivers for BPM:

  • Dynamic business environment
  • Lack of process visibility
  • Regulatory compliance issues
  • Inter-corporate collaboration
  • Cost reduction
  • Inability to sustain growth
  • Complex process logic (i.e., you can’t freeze a complex process once created, it still needs to remain agile)
  • Re-use best practices in processes

As he points out, the first deployment of a BPM project is just the beginning of the lifecycle: if your process will never change, then you may as well just code it in Java, but we use BPMS exactly because the process will change and we need greater agility. He also recommends (and I concur) against spending too much time analyzing the as-is business processes; remember that if those processes were so good, then you wouldn’t be looking to automate or replace them. The idea of any BPM project is to liberate the process from the application code, separating the process from the services and underlying enterprise applications. It’s not all about automating process steps; automation can be used effectively to reduce process latency and improve route determination between manual steps, as well as automate some steps.

He also discussed business rules, and showed a changeability spectrum with coded applications being the least changeable, processes more changeable, and rules the most agile of all — a view that I’ve been discussing in the crossover between BPM and business rules lately. He added an interesting distinction between auditing and logging when it comes to BPM: process auditing includes the data upon which decisions were made in order to later justify that decision for compliance purposes, whereas logging may just be recording the decision that was made.

He finished the BPM 101 section with a great slide on how to tell when you don’t need BPM: it starts with “your processes are really simple” and “your processes never change” (okay, I’ve heard these reasons before), then goes on to “you don’t care what your customers think” and through a series of other giggle-inducing reasons, ending with “you want a clumsy, complicated architecture”.

Keeping the light tone, Carl opened the section on quantifying BPM ROI by stating that “ROI is king…and not just in French”, a bilingual pun that I’m sure went over better when he presented in Ottawa later in the week. 🙂 He did present an interesting list of the five E’s of BPM ROI (paraphrased here as I was jotting down notes as he spoke):

  • Elevate business logic: reduce change management overhead, and minimize the requirement for users to know everything about a process by having the system enforce the business logic where possible.
  • Eliminate process latency: reduce cycle time, increase productivity, and meet SLA/compliance targets.
  • Enforce process integrity: disallow rule bending, ensure and demonstrate compliance, and allow rapid deployment of changes
  • Enhance process execution: parallel processing, workload balancing, and location independence.
  • Ease task execution: eliminate process errors, and eliminate what can be automated.

This is definitely a good starting list when you’re looking for the ROI in your BPM initiatives. He also explicitly talked about the ROI of integration between BPM and other applications: eliminating redundant data entry and increasing accuracy are the two big ones, but there’s also value in having the staff focus on adding value rather than re-entering data between systems.

He finished the seminar with a brief demo of Interstage: mostly a few screen snapshots and some slides about functionality, then a brief view of the simulation screens. Like several other BPM vendors, Fujitsu has a free download of their BPM Studio modeller (not sure if there are restrictions on the free version) as well as having a Process Designer applet that runs in a browser. Interstage, likely because it’s been used as an OEM product, seems to have a good balance of built-in functionality as well as the ability to easily integrate with third-party products that provide more robust functionality, whether it’s for content management or business rules. I haven’t looked at Interstage for almost a year (which I belatedly reviewed in June), but I’m sure that I’ll have a chance to see them next week in Las Vegas at the Gartner BPM show — an event where what happens in Vegas does not stay in Vegas.

Carl mentioned an Interstage case study at the end, and although it’s great when US companies try to show their support of the Canadian market, an Edmonton power utility company is a long way from the financial district of Toronto, both geographically and culturally. Even Google Maps knows that the shortest distance between the two is through the US.

BEA picked up by Oracle

After a lengthy and tempestuous courtship, Oracle is finally acquiring BEA for $8.5B, a healthy increase over the original $6.7B offer last October. It will be interesting to see what emerges on the BPM and SOA product front from the combined organization; some large acquisitions in the past, such as IBM acquiring FileNet, seem to have caused more confusion than clarity in the market.

Gartner MQ for SOA Governance

Although I find it hard to believe that Frank Kenney and Daryl Plummer were hard at work all day on December 31st, that’s the publication date of Gartner’s Magic Quadrant for Integrated SOA Governance Technologies. Software AG, which placed well in the leaders quadrant, has the report available for download.

This is the first time for this MQ, and to quote Gartner’s definition of the SOA governance market:

SOA governance is about ensuring and validating that assets and artifacts within the architecture are operating as expected and maintaining a certain level of quality. This Magic Quadrant reduces the market to one set of technologies with strong architectural cohesion (integration) promoting ease of use and interoperability of product.

I found their definition to be a bit fuzzy, especially the part that defined the SOA governance market as including “products, sales, marketing and services specifically targeted at providing SOA governance.”

Lots of the usual suspects here — BEA, TIBCO, IBM, Fujitsu — as well as others who I don’t really think of as being in this market.

Andrew McAfee and Tom Davenport debate the viability of Enterprise 2.0

I missed the McAfee/Davenport debate when I arrived a bit late to the Enterprise 2.0 conference last June, so I’m happy to be listening in on today’s version.

McAfee kicked off with some examples of where he’s seeing Enterprise 2.0 making a difference: a construction company that encouraged its employees to blog; a large financial services centre using an internal wiki for their customer service people to share information, which has reduced their average call time; and Intellipedia within the US intelligence community.

Davenport countered that organizations are even more hierarchical than before, and that Enterprise 2.0 is not having the collaborative and flattening effects that were expected, and that if it was just about the technology and not transforming the enterprise, it should have been called “Knowledge Management 1.5”.

There then ensued a wordsmithing debate over what it should be called, what version number it should have, and whether the functionality provided by today’s Enterprise 2.0 collaborative software is really all that innovative, or just a natural progression from previous groupware applications like Sharepoint and Lotus Notes. As the debate goes on, Davenport continue to drive the point that this technology isn’t revolutionary relative to corporate information management/sharing tools, it’s evolutionary.

Davenport stated that if you don’t do the organizational preparation in advance, then Enterprise 2.0 will fail at its goals; McAfee disagreed, saying that he’s seen examples of organizations that were very poorly suited to engaging in Enterprise 2.0 collaboration (such as the intelligence community) have some key people latch onto the tools once they’re in place and help to shift the organizational culture.

In other words, is the technology driving the collaborative effects, or does the organization have to be collaboratively-minded before the technology will be used? That seems to be the core issue that’s being addressed in this debate so far.

McAfee feels that Enterprise 2.0 tools don’t make it any easier to engage in bad behaviour (harassing other employees, sharing company information externally) that people could have done before these tools; I tend to agree with this: if employees are educated about what is and isn’t appropriate behaviour, they’ll make their choices on how to behave regardless of the tools available.

30 minutes into the debate, and process was just mentioned for the first time, in the context of how Enterprise 2.0 is impacting the business processes between a company and its customers/partners. Davenport states that Web 2.0 is having a bigger impact here, since he sees Enterprise 2.0 as purely behind the firewall, whereas McAfee said that his definition of Enterprise 2.0 includes interactions between a company and its partners and customers that happen on the web. Does this include Facebook groups sponsored by a company, or just a company’s own websites?

There was an interesting discussion on control, on which they mostly agreed, and how the “gatekeeper” model of enterprise knowledge management systems is giving way to a more wiki-like “gardening” model: let everyone contribute then clean up the results, rather than restricting who can contribute.

For the second time in this debate, Davenport refers to McAfee’s language as “messianic” in terms of how he promotes the capabilities of Enterprise 2.0 tools; Davenport insists that older-style tools could provide much of the same collaborative environment, and although there is some great new functionality, the technology is not driving the type of organizational change that is suggested by the definitions of Enterprise 2.0.

In summary, Davenport feels that companies should be exploring the technology and loosening control over information creation, but not expect the deployment of these Enterprise 2.0 technologies to change organizational culture. McAfee agrees with the first part, but not the second — he feels that putting these technologies in place will cause emergent applications that will create organizational culture changes.

The debate was recorded and will be posted at the FASTForward blog.

Forrester Wave: Human-Centric BPM for Microsoft Platforms

In mid-2007, Forrester released their Wave for Human-Centric BPM, but with a twist: it only covered Java Platforms. As much as I disagree with this separation of products based on platform (since most customers that I see have both Java and Microsoft in their environment, and this is a meaningless distinction to business people who are involved in vendor product selection), at least they’ve finally come out with the complementary report, Human-Centric BPM for Microsoft. It’s also complimentary 🙂 on the Global 360 website (registration required).

Keep in mind that Forrester also publishes Wave reports on integration-centric BPMS (last issued in December 2006, so expect a new version in the coming months) and BPM for document processes.

Here’s the vendors covered in each of the Forrester reports:

Human-centric Java Human-centric Microsoft Integration-centric Document processes
Appian
BEA
Fujitsu
Graham Technology
HandySoft
IBM
Intalio
Lombardi
Pegasystems
Savvion
Software AG
TIBCO
Ascentn
Bluespring
Global 360
K2
Metastorm
Singularity
Ultimus
W4
BEA
Cordys
IBM
iWay
Magic Software
Microsoft
Oracle
SAP
Software AG
Sun
TIBCO
Vitria
webMethods
Adobe
Autonomy Cardiff
Captaris
EMC
Global 360
Hyland
IBM
Open Text

Some of the larger vendors appear in multiple categories: BEA, Software AG and TIBCO all have human-centric (Java) and integration-centric offerings; Global 360 has both human-centric (MS) and document BPM; and IBM appears in all of human-centric (Java), integration-centric and document BPM.

Contrast this with Gartner’s approach, which is to have a single Magic Quadrant for all BPMS types, and covers the following vendors:

  • Adobe
  • Appian
  • Ascentn
  • AuraPortal
  • BEA
  • Captaris
  • EMC
  • Fujitsu
  • Global 360
  • IBM
  • Intalio
  • Lombardi
  • Metastorm
  • Microgen
  • Oracle
  • Pegasystems
  • Savvion
  • Singularity
  • Software AG
  • SunGard
  • TIBCO
  • Ultimus
  • Personally, I like the Gartner all-in-one approach, although I take issue with some of the vendors that they choose to include. As I mentioned previously, most of the companies that I work with support both Java and Microsoft platforms, from necessity, and have BPMS needs that span across human-centric, document and integration-centric: often within related processes. Except for the large vendors who appear in multiple reports, Forrester can make it hard to compare BPM products for heterogeneous environments.

    Savvion: a company to watch for more than one reason

    Interesting that this news article hit today, proclaiming Savvion as a BPM “company to watch” — Savvion laid off a chunk of their workforce last week, including contractors, most of their marketing team and some salespeople (which will make it interesting to see who pulls booth duty at the Gartner BPM conference in February). This is part of a reorganization that has Shawn Price move from CEO to Chairman, and Dr. Ketabchi move back to his previous role of CEO.

    Appian went through a similar-sized layoff in September, which indicates a bit of a shakeup in the BPMS marketplace amongst the former pure-play vendors. Both of these vendors are in the leaders quadrant of the recent Gartner Magic Quadrant for BPMS, and Savvion was also in the leaders category in the 2006 BPMS MQ while Appian placed in the visionary category that year.

    It doesn’t appear that either layoff affected the product development teams, which makes me wonder if these companies are restructuring for cost savings and future growth, or positioning themselves to be acquired on the considerable strength of their respective technologies.

    Webinar: The New Paradigm for Business Intelligence – Collaborative, User Centric, Process Embedded

    I’m watching this webinar featuring Don Tapscott of New Paradigm and Katrina Coyle of Molson Canada, sponsored by SAP.

    Tapscott spoke first, and started with a reworked version of the same presentation that I saw last June at the Enterprise 2.0 conference, covering the four basic drivers for change: web 2.0, the net generation, the social revolution, and the economic revolution. He went on, however, to talk about the changing face of business intelligence: moving from cost-cutting to a focus on growth and creating relationships with customers and partners. There’s a number of factors at play:

    • Simplifying BI from a tool for tech-savvy power users to a visual, interactive tool for business decision makers
    • Making it easier to filter out the relevant data for making decisions rather that being confronted with a sea of data (a foundation of automated decisioning and complex event processing)
    • Providing interactive and iterative tools rather than creating standard reports through batch processes
    • Integrating with business processes for automated decisioning rather than just one-way periodic reporting

    He sees more of this in the future: simpler interfaces to allow more people to participate in BI, new visualization techniques, better integration with other technologies, and support for harnessing the collective intelligence of participants.

    I love that Tapscott’s using the term “BI 2.0”, which I first used in early 2006 to refer to the entire field of analytics in the face of a new batch of terms that seemed determined to relegate BI to refer only to periodic, one-way reporting.

    We were then treated to a 24-slide presentation by Lothar Schubert, Director of Solution Marketing for SAP NetWeaver. Although he provided coverage of the landscape and history of BI, this could have been a bit shorter since we were left with only about 10 minutes for the customer case study.

    Next up was Katrina Coyle, BI Team Manager for Molson, discussing their complex business environment — partnerships, acquisitions, multiple geographic locations with different go-to-market strategies, changes to consumer preferences — and how a single version of the truth through BI is absolutely necessary in order for them to continue to build their brand successfully.

    Molson has been pushing innovation in their products and through social networking, but also through information using BI. This greatly improves information quality and timeliness throughout their supply chain, which in turn changes their physical loading and shipping practices. Problems in the supply chain are identified as they occur, and less time is spent managing the information and reporting.

    You can see a replay of the webinar at the first link above.

    OMG’s Maximizing BPM Investments with SOA Workshop

    OMG has a workshop coming up on January 14-17 in Orlando on Maximizing BPM Investments with SOA, and they’ve extended their early bird pricing of $695 until today. I’m not sure how late you can go while still calling it “early bird”; this extension probably means that everyone is too busy recovering from the holiday season to register for conferences in January.