Utilizing Business Process Management BPM and Enterprise Architecture EA to Achieve and Maintain a C

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Presentation Title Utilizing Business Process
Management (BPM) and Enterprise Architecture (EA)
to Achieve and Maintain a Competitive Advantage
Presented By Joe Henneberry ARIS Practice
Manager IDS Scheer Canada
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Agenda

• Introduction
• Business Process Management / Enterprise
  Architecture Primer
• Business Process Management Approach at Merrill
  Lynch
• Client Account Opening Process
• Developing a Business Process Architecture
• Benefits of a Business Process Management Approach

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Introduction

• Merrill Lynch The Company
• Merrill Lynch is one of the world's leading
  financial management and advisory companies
• Offices in 36 countries
• Total client assets of approximately 1.6
  trillion
• Leading global underwriter of debt and equity
  securities
• Through Merrill Lynch Investment Managers, the
  company is one of the world's largest managers of
  financial assets.
• Firm wide, assets under management total 479
  billion.

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Introduction

• Merrill Lynch - The Challenge
• Determine root cause of Pain Points of the
  Account Opening Process which were discovered
  through previous customer surveys
• Improve initial point of contact with customers
• Understand the complexities of Merrill Lynchs
  Client Account Opening Process which spans
  multiple products, organizations structures,
  application systems and data stores.

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Introduction

• Merrill Lynch The Solution
• Utilize a Business Process Management (BPM)
  methodology to understand the complexity between
  KPIs, business processes, application systems,
  data and organizational systems.
• The BPM application selected was IDS Scheers
  ARIS Platform with its inherent ARIS methodology

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BPM / EA Primer
Articulated and maintained Business Process
Modeling is the core for business Process
Management (BPM)
Business Process Modeling Articulated and
maintained end to end business process models
used to manage process strategy across business
and organizational silos. Enterprise
Architecture Articulated and maintained models
which map the processes to data, applications and
infrastructure to manage the elimination of
redundant data, software and hardware. Business
Performance Management Integration of Key
Process Indicators (cost, timing, resources) from
the legacy applications into the business process
models for real-time management dashboards for
day-to-day management. Business Process
Management Systems Leveraging Service Oriented
Applications (SOA) and Business Rule Engines as a
integration layer on top of legacy applications
to implement solutions and empower the business
to design and implement process changes.
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BPM Approach at Merrill Lynch

• Determine enterprise initiatives
• Develop business processes that are in line with
  businessobjectives and KPIs
• Create enterprise repositories
• Organizational structures
• Application systems
• Data
• Products
• Processes
• Manage Tactical Projects
• Narrow scope by tactically focusing on specific
  areas of concern
• Dont model the world

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BPM Approach at Merrill Lynch
Merrill Lynchs BPM End User Interface
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Client Opening Account Process

• The ARIS Methodology was used to decompose and
  document a current state As Is analysis. The
  As Is analysis consisted of
• Step 1 - Qualitative As Is Analysis
• Architecture analysis focusing on
• Organization structure (e.g.. hierarchies, org
  responsibilities, fragmentation, org breaks)
• Products portfolio structure (e.g.. number
  structure of products, differentiation between
  products)
• Process architecture (e.g.. flow through the
  organization, fragmentation, automation, level of
  standardization)
• Application system inventory (e.g.. number of
  systems, information flow, fragmentation)
• Data repository (e.g.. number of data clusters,
  storage of data, duplication, fragmentation)
• Pain points
• Step 2 - Quantitative As Is Analysis
• Product quantities
• Process times
• Process costs
• Employee utilization

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Client Opening Account Process

• Organizational View
• The organization structure of ML GPC is mapped in
  the organization view. The hierarchy is
  decomposed from top to bottom showing the Names
  of the organizational units and positions. These
  objects are re-used in the processes.

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Client Opening Account Process

• Product View
• The Product structure of ML GPC is mapped in the
  product view. A decomposition of available
  product services is shown in the product
  service tree.

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Client Opening Account Process

• Process View
• The New Account Opening process flow is described
  in the process view.
• A high level value chain showing the main steps
  responsible Organizational Units is broken down
  into a detailed process with the functions, the
  position executing these functions the system
  supporting them as well as the in- output of
  each activity.
• The average processing time per function
  probabilities per decision are recorded and allow
  process time calculations. The cost rates for the
  position that execute the functions are mapped
  and enable process costing.

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Client Opening Account Process

• Data View
• The data structure of ML GPC is mapped in the
  data view. The hierarchy is decomposed from top
  to bottom showing the data clusters for the
  different products the data clusters are then
  broken down to the different Entity Types that
  they contain. The clusters are re-used in the
  processes.

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Client Opening Account Process

• Application System View
• The application system structure within ML GPC is
  mapped in the Application View. The hierarchy is
  decomposed from top to bottom showing the
  different systems used in the processes. These
  objects are re-used in the processes.

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Client Opening Account Process

• Pain Point Tree
• More than 100 Pain Points were considered during
  the As Is Analysis that were gathered during
  previous surveys and during the interviews
  (selection provided)

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Developing a BP Architecture

• Process Approach Overview
• Merrill Lynch Global Private Client Services
  explored the use of creating a business process
  repository to capture and document all business
  processes for the division.
• Approach
• Top / down organization focused approach
• Bottom-up process-focused approach
• Integrate top-down and bottom-up approach through
  process decomposition

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Developing a BP Architecture

• Create top-down views of the organization

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Developing a BP Architecture
At lowest levels of the organization define
business processes
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Developing a BP Architecture
Create organizational process buckets to capture
generic business processes and create process
from lowest process levels up
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Developing a BP Architecture

• The As Is process flows were the bases to create
  To Be process flows to quantitatively and
  qualitatively identify areas for improvement. The
  business benefits gained were
• Process visibility (end-to-end)
• Information Repository
• Streamlined process
• Increased efficiency of applications
• Increased data usage
• Mitigation of pain points in the process

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Benefits of a BPM Approach

• Alignment of process flows to KPIs
• Integrated understanding of how changes in
  process effect application systems, data,
  products and organizational structures
• Significant reduction in cycle time for
  introducing process change
• Central repository i.e. one point of reference
• Decomposition of business processes from high
  level value added chains to process step analysis

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Benefits of a BPM Approach

• The average number of departments involved was 3
  (fusion is happening)
• Successful projects had no less than 10 internal
  rate of return
• 78 had greater than 15 Wild numbers included
  100 and 360
• 85 of the projects were dominated by human to
  human processes
• 15 of the projects were dominated by system to
  system processes
• 67 of the projects were completed in less than 6
  months
• 50 of the projects were completed in less than 4
  months
• 77 of the projects had returns greater than
  100,000.00 per project
• 55 of the projects had returns in the
  100,000.00 to 500,000.00 range
• 80 of the respondents felt an increase in
  competitive advantage
• Value to the company higher than ERP, CRM, SCM
  today
• Source Gartner Group

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Benefits of a BPM Approach
Source Gartner Group
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Questions Contact Information Email
INFO_at_IDS-Scheer.CA