Author: sandy

BPM Momentum

I attended the The BPM Momentum: What’s Driving it? webinar today (not “what’s driving IT” as the host ebizQ erroneously labelled it, which has a much different meaning), featuring Jim Sinur of Gartner. Definitely worth catching the replay for Mr. Sinur’s comments on success factors for BPM projects and for his view of the market convergence.

He included Gartner’s Application Integration Hype cycle chart, showing how BPM technologies fit: apparently, BPM itself is sliding into the Trough of Disillusionment, whereas BPM Suites are still climbing towards the Peak of Inflated Expectations. (The hype cycle terminology always reminds me of the morality fable Pilgrim’s Progress with its Slough of Despond, but I digress.) He only put a 10% probability on the catastrophic scenario, which makes me feel a whole lot better.

He also had some good numbers on customers and their BPM projects:

  • 85% of BPM customers are now going after their human-facing processes (presumably, the automated system-to-system ones are already in place).
  • BPM projects are yielding an average IRR of 20% (although Gartner uses a more conservative figure of 15%), but larger projects can produce returns of well over 100%.
  • “Soft” benefits such as competitive advantage and higher customer satisfaction are major contributors to a project’s success.
  • Business and IT are becoming more aligned on BPM projects.

He also commented on the convergence that is happening in the marketplace, something that I’ve been seeing for some time as well: 130 BPM vendors all attempting to jostle their way into what I call the “BPM suite spot”:

This convergence is just a continuation of the evolution of BPM that I discussed in an earlier post, but it’s going to get a lot more painful for some of the players as they get eaten by the competition or body-checked off the playing field.

Small company security

A few weeks ago, I was involved in making a proposal to a bank for a consulting gig related to business intelligence. Although we had an inside track on what they wanted, and we proposed a team that could deliver the goods, they decided to go with one of the big management consulting firms, in part because they felt that the larger firm presented a lower risk.

I fought against this prejudice for years when I ran a small (40-person) systems integration company, and were shut out of some opportunities because of our size. Customers who did hire us realized that small is good: we tended to attract a better quality of team member, keep them well-trained, and motivate them appropriately through the right combination of profit-sharing and foozball tables. From the customer standpoint, they held a great deal more leverage over us than they would over a larger SI because they were a larger percentage of our business, and we were very motivated to make them happy, repeat customers who could be used as references. Our reputation was our main marketing asset, and the only way to make that work was to out-perform the big guys.

These days, given the abysmal track record of a couple of the big firms, I find it hard to believe that the myth of “big company = low risk” is still alive and well. The last time that I was involved in a project with one of the big SIs, it was more than a year late (at last check) and I’m assuming that it’s also way over budget. Also consider some of the recent layoffs announced at big companies, including a whopping 13,000 at IBM. Do you think that they considered the impact on your project before they laid off a staff member who works with you, or supports the project in some way?

Risky business, hiring these big companies.

OASIS takes on the meaning of SOA

OASIS announced yesterday the creation of a technical committee to develop a core reference model for Service Oriented Architecture (SOA). To quote their goal:

The SOA reference model will offer an understanding of the core elements within a service oriented environment and the associations and relationships among those elements. The reference model itself will not be directly tied to any standards, technologies or other concrete implementation details. Rather, it will be an abstract, designed to be used as a tool by software and enterprise architects developing specific SOAs.

The end-user organizations seem to be strongly behind this, given the participation of Boeing, General Motors, Lockheed Martin, Mitre, VISA, USA’s Department of Homeland Security, Japan’s Electronic Commerce Promotion Council, and Canada’s Public Works and Government Services. However, The Register reports today that some of the biggest names in enterprise computing have not yet hopped on board: Microsoft and Oracle, to name two. Shame, shame; you guys aren’t planning to go the proprietary route, are you?

You want me to pay for what?!

I’ve been putting together some ideas for a presentation at FileNet‘s annual user conference, UserNet, on how to make the link between business process models (such as those that form part of an enterprise architecture set, modelled with a notation such as BPMN) and the implementation of those models in a specific product (in this case, FileNet BPM). I’m interested in exploring the BPMN/BPEL link between modelling and implementation using various products, since it represents the transformation from Zachman’s Row 2 to Row 3; however, for UserNet, where BPEL is not yet in play, I’d choose to focus on the conceptual (business) view of how this works specifically with FileNet BPM.

I’ve spoken at UserNet many times, first as the chief architect of a FileNet partner, then later as FileNet’s Director of eBusiness Evangelism, and I always enjoy it because of the focus on user/business issues instead of just technology, and the interaction with business users of BPM products. But today, as I was looking at the conference dates to make sure that my calendar is clear, I had a flashback to my earlier post on vendors charging exorbitant rates to their “partners” for training. Sure enough, according to the conference presentation guidelines:

One customer presenter per presentation will receive a free registration but they must be the primary speaker. Partner presenters will register for the regular conference fee.

Excuse me, I thought that I just read that FileNet wants me to spend my time creating an educational presentation that will be of benefit to their user community, but then wants me to pay to deliver it.

Just like with the training issue, this cuts out a lot of the highly-skilled smaller partners, because the conference fee on top of a week of lost revenue, travel expenses and the time invested in creating the presentation just isn’t worth it. Instead, count on seeing presentations submitted from partners based on their marketing budgets rather than their abilities.

The attendees should be hoping that the conference selection committee uses a more appropriate assessment tool than a partner’s amount of loose change.

BIJ online edition

Business Integration Journal (formerly EAI Journal) now makes their magazine available via free email subscription, for those of us who are not in the U.S. and therefore not eligible for a free paper subscription. A lot of the content is “advertorial” written by vendors, but there are a few gems in there, such as this month’s article on process-centric business intelligence by Keith Gile at Forrester Research, wherein he tackles the problem of out-of-context BI data by looking at ways for BI platforms to associate data with processes in order to deliver decision-making capability to the operational level.

Given BIJ’s policy of not publishing PDF copies of the current edition’s articles on their website until the next month’s edition is available, this e-subscription is the only way to get the content in electronic format at the time of publication, and I actually prefer an electronic copy of these “read and toss” magazines anyway. I think that I was sent an invitation for the subscription, but have no idea why; poke around on their site and you’ll probably find something. They also have issues back to January 2000 online, some of which are really a blast from the past.

My only complaint is that the e-subscription issue is hosted on Olive Software’s “ActiveMagazine”, which is really not a nice way to read online. It also doesn’t produce very readable copies if I print to PDF, so if I want to save a copy of an article or send it to a client, I have to either put up with the poor quality or wait until next month for it to come available on the BIJ website.

Putting the “business” back in BPM

Yesterday’s article on Coors in Intelligent Enterprise piqued my interest by combining beer and BPM, although I confess that I am highly unlikely to drink an American beer regardless of how efficiently it is delivered.

What I found particularly interesting is the description of how they first approached their BPM efforts, starting in 2000. They have a Director of Business Process Management, who by their own description was “spearheading an IT-led supply chain improvement project, but the team wasn’t collaborating with business users”. Did someone make a mistake about this guy’s title by using the word “business” in it, when he was actually an IT person working on an IT project with little or no business interaction? At the same time, they hired a business architect to do process modelling, but with no coordination with the related IT project.

The story has a happy ending: boy meets girl and they share business process models to great success. However, this same story is playing out in organizations everywhere, and many are far from a happy ending. Due to the inclusion of all manner of application integration and middleware products under the global BPM naming umbrella, many “BPM” projects start as IT-only EAI, with little or no communication with the business side of the organization, and allow IT to seize control of all subsequent BPM projects. BPM products are selected based on IT’s criteria, then “business process management” projects are built purely by IT, with sufficient arrogance to believe that they understand enough about the business that they don’t need interaction with the business units.

These organizations inevitably end up wondering why the success rate of their BPM projects is so low. It’s simple: they need to put the “business” back in BPM.

SOA and process designers

A post last week on the problem of the economics of process change by Christopher Koch at CIO.com states the problem succinctly:

IT is in a mess because we have business processes that are locked into source code that is difficult to change or modify?that?s the real issue underlying the argument. That makes customization a dirty, expensive word.

Although he admits to possibly being “drunk on the Service Oriented Architecture Kool-Aid” that’s around, he sees SOA as a potential solution to the problem:

There needs to be a separate layer in the architecture for integration and business process change and coordination. Though web services aren?t always at the core of the layer, the concept of services is.

“Services” as a concept is interesting in this context, although I believe that SOA is just the flavour of the month in terms of naming. We did things like this years ago through appropriate encapsulation of functionality, and although our tools were a bit cruder than what is available now, we were essentially building services — when we did it correctly. Web services, WSDL and UDDI certainly make it easier to share these services, and I completely advocate their use for services to be shared within or between organizations.

The basic issue is that process designers shouldn’t need to understand the internals of the applications that they are orchestrating: they need to see applications such as ERP as a set of properly encapsulated, business-oriented functions that they can call at any point in a process. That means that the relevant functions within “legacy” applications (for lack of a better word) need to be exposed as discrete operations, and that an appropriate process orchestration tool be used to tie them all together.

And in another article of Mr. Koch’s that he links to from the above-mentioned post, he wraps the whole issue together with enterprise architecture, a concept that I also mentioned in a post last week. As more companies recognize the flexibility and business alignment that EA brings, process orchestration will take a more central role since it allows the IT assets that are enumerated through EA to be combined in new ways to serve the business needs.

BPTrends Report on Enterprise Architecture, Process Modeling & Simulation Tools

BPTrends today released The 2005 Enterprise Architecture, Process Modeling & Simulation Tools Report, downloadable for free. They review 10 products:

  • SIMPROCESS from CACI (although I admit to laughing at their overly gung-ho corporate tagline: “Technology that Supports America’s Future”…not something that I’d take forward to one of my non-American customers)
  • Holocentric Modeler from Holocentric
  • ARIS from IDS Scheer
  • iGrafx from iGrafx
  • MEGA Suite from MEGA, an independent business unit of Corel Corporation
  • System Architect from Popkin Software, which was acquired last week by Telelogic
  • ProcessWizard from Process Wizard Ltd.
  • ProVision from Proforma Corporation
  • Process Simulator from ProModel Solutions, although I don’t recommend visiting their site unless you’re into cheesy Flash with music and beeping sound effects
  • xBPM Innovation from xBML Innovations

Like their 2005 BPM Suites Report that I reviewed here, it’s a bit of a mixed bag. The first 26 pages contain some great background information including their view of the business process software market (a reasonable representation), plus detailed definitions of enterprise architecture, process modeling and simulation tools, whereas the product sections appear to be technical marketing info provided by vendors. As with the BPM suites report, a caveat at the beginning states that the vendors paid to be part of the report, and that BPTrends did no independent product testing: my same assessment holds true that the product sections, although well organized and well written, don’t provide anything that you couldn’t get from the vendors’ websites.

What I find really interesting about this report is the categorization of enterprise architecture (EA) tools together with process modeling and simulation:

This report focuses on tools that companies use to analyze and modify business processes. The core tool for this task is a tool that lets business managers or analysts create a diagram or model of a business process and then change that diagram to explore how the process could be improved or redesigned.

Tools that provide support for organization analysis and modeling are, today, usually termed Enterprise Architecture tools. Tools that focus entirely on simulation are termed Simulation Tools. Increasingly, however, companies are using business process modeling tools that also incorporate support for enterprise modeling and simulation. Thus, we decided to include all the tools that can be used for Enterprise Architecture, Business Process Modeling, and Process Simulation in the same report.

I have spent a good part of the last few years talking to customers about how EA and process fit together, but a lot of people are still hung up on limiting EA either to content (that is, Zachman’s column 1, Data) or to what I sometimes jokingly refer to as “implementation details” (that is, Zachman’s rows 4 and 5, Technology Model and Detailed Representations). By grouping EA together with process modeling and simulation, BPTrends has highlighted the fact that processes are critical to the enterprise, and any EA exercise had better include processes. Unlike content, which is restricted to the Data column, processes in an enterprise impact several of Zachman’s columns: Function, Network, People and Time. And, unlike the focus of many IT departments, processes in an enterprise are most effectively modeled in the top three of Zachman’s rows: the Scope, Business Model and System Model.

Lots more to write but no time due to a looming deadline and yesterday’s failed router that put my network out of commission for most of the day — just one of the joys of working for myself. Read the report (or at least the first 26 pages) and talk amongst yourselves.

Biz blogging

These past few weeks have seen an incredible focus on corporate blogging in the mainstream press, culminating in the May 2nd cover story of BusinessWeek, “Blogs will change your business”. (Given the topic is in part about the immediacy of press via blogging, and is coordinated with their (faux?) blog, the irony of a weekly magazine publishing their May 2nd edition more than a week before that date is not lost on me.) The print-based press is jostling for position in a world where blogs provide news and analysis ahead of them, and many are struggling with subscription models for news. Hugh MacLeod’s recent post about Les Blogs conference this week in Paris was spot on:

There a was session there where journalists were asking a lot of questions. I came away thinking, “Dinosaurs don’t like meteors”.

Although the dinosaur/meteor analogy may prove to be overly dramatic — TV was supposed to kill print media, remember? — plenty of others are also tolling the death knell for print.

More interesting blog fodder, however, is about blogging as a corporate marketing tool, especially for small businesses: we can make a serious marketing impact by blogging about our unique abilities, that is, the work that we love to do and that we do best. I quote an earlier gaping void post:

As a marketing tool, my gut instinct tells me that with blogs, the more expensive, molecular, “niche” and/or “bespoke” your product is, the better.

Although Hugh runs a Savile Row bespoke tailoring firm and I do strategic IT planning and architecture, his comment rings true for me: I deal with technologies and concepts (BPM, EA, BI/BAM) that are still considered niche in many of the large players in my target market (financial services); everything that I do for a customer is bespoke, because I fill in the gaps between the technology and their specific business. And in order to maintain visibility as an expert and an evangelist while keeping committments to my paid customers, I need to do this on my own publication schedule. What better place to do that than a blog?

Consider this my calling card.