Predicting the Customer Experience:

A Convergence of Business Process,

Decision Making, and Analytics

Chief Architect for some of Largest BPM Systems in the World, with Projects Exceeding $200 Million in Total Scope and Investment

Co-author of 12 books on BPM including the “BPMN 2.0 Handbook” and "Mastering the Unpredictable" which reached #2 on the Amazon.com Bestsellers List for IT

Was named #1 on the 2011‘Influencer 50’ list ranking the most influential people in the field of BPM

Executive Director of the Workflow Management Coalition, the definitive business process association since 1993

Has played active roles in relevant standards and consortia including OMG, OASIS and AIIM

The first recipient of the Laureate in Workflow award, a distinction held by select industry leaders worldwide

About Nathaniel Palmer

“. . .a discipline involving any combination of

modeling, automation, execution, control,

measurement and optimization of business activity

flows, in support of enterprise goals, spanning

systems, employees, customers and partners

within and beyond the enterprise boundaries.”

What is BPM?

Driving Compliance and Scalability by Automating Predefined Workflows

BPM Processes Are Deterministic, Where All Possible Paths Are Pre-Determined or Known in Advance, No Matter How Complex the Pathways May Be.

The Direction of the Process is Determined by the Pre-Defined Path and Current State; State is Determined by the Preceding Activity.

BPM enables a transactional thread from application-to-application, activity-to-activity.

Phase One of BPM. . .Cross-Application Integration

Managing Screen-Flows

Abstracting Business Logic

Enabling Business Control of Business Processes

Delivering a Transactional Thread Across Systems

BPM in the First Wave(Where Most Still Are Today)

The 2nd Major Revolution in IT Architecture

1970 20201995

40 Years of Application-centric Data Architectures

Extraction & Transformation

Client/Server Architecture

Transaction Processing

Data Synchronization

2013

Cloud Architecture

Predictive Analytics

Semantic Integration

Mobile, Social, Cloud

Process of Everything

The Relational Era

The Big Data Era

To Data-Driven Applications

Shift to “Intelligent BPM” and “Smart Processes” . . . Leveraging Rules / Policies, Goals and Intelligent Agents

More Agile Execution Models Allows for Adapting to Meet Goals, Rather Than Sticking Strictly to Predefined Paths

“Data-Driven” = Shift to Information-Intensive, Adaptable Processes Driven by Analytics, Context, and External Events

BPM Evolves to Address New Realities of Digital Business

BPM + ODM: Customer-centric Processes are Data-Driven and Unpredictable

A Library of Process Fragments Can Be Called on to Automate Mundane

Tasks or Regulated Processes

An Event Occurs Which Launches a

New Process / Case

The Case is Completed

When Criteria is Met

Analytics Help Define How the

Case is Processed

“Intelligent Capture”Information is Captured and Added to the Case

Prepare Document Process Application

Business Rules, Policies and Processes Are Run

Against Case Data

Ensuring continuity across multiple channels, including mobile devices

with inconsistent connectivity

BusinessValue

TimeData

LatencyAnalysisLatency

DecisionLatency

Infrastructure Latency

Business-relevant Event Occurs

Event Data Captured

Analysis Delivered

Action Taken

Value Available Through Earlier

Notification

Value Available From Faster Decisions

Adapted from Hackathorn, R. (2002); zur Muehlen, M (2010)

Why you want to act sooner, not just faster.

BusinessValue

Time

Move to the point of action to here. . .

…from here.

Leverage BPM and ODM to shift the point to which business events become actionable.

Why you want to act sooner not just faster.

Capturing Context & Meaning From Events

Event Processing

Event Detection

& Correlation

Knowledgebase

Event Log & Patterns

Reporting

Dashboards

Alerts and Actions

Predictive Analytics

Simulation

Data mining

Event Tagging

Event Cloud

Legacy New Apps

Transactional Systems

Document Capture & Content Management

SOA Middleware as Event Delivery Pipe

Social Media/Networks Mobile Devices

Actionable Analytics Framework

Intimacy

Expediency

Now

Then

Whether or Not You have a Strategy

Does Change Your Customers’ Expectations.

Meet Your Customersfor the Next 20 Years

Are you ready?

Meet Your Customersfor the Next 20 Years

“60% of smartphone or tablet owners who switched primary banks in the fourth quarter said that mobile banking capabilities were an “important” or “extremely important” component in their decision to switch, versus only 48% surveyed 6 months earlier.”

Source: Mobile Financial Services Tracking Study,” AlixPartners, March 2014

“60% of smartphone or tablet owners who switched primary banks in the fourth quarter said that mobile banking capabilities were an “important” or “extremely important” component in their decision to switch, versus only 48% surveyed 6 months earlier.”

Source: Mobile Financial Services Tracking Study,” AlixPartners, March 2014

But Does Your

Mobile Strategy

Look Like This?

The App is Not Your

Mobile Strategy,

it is the Process!

What’s Next?

What’s Next?

The home office receives the application electronically, underwrites the policy and electronically issues and sends the policy to FA.

“Intelligent Capture”Questions answered, the application is completed and signed electronically on the tablet. The client writes a check to bind the application and the FA uses the tablet to take a picture of the check to bind the application.

A Financial Advisor (FA) conducts client annual review – determines client needs additional life insurance.

The FA can choose to print the policy or send an electronic copy securely to the client.

14

The FA hits the “Mayday” button and spawns a live video chat with an underwriter.

5

6

6

Leveraging BPM and ODM for an Optimal Customer Experience and Real-Time

Response: Financial Advisor Scenario

3

2

FA brings up an insurance application on tablet and fills out with the client.

How Will You Deliver a

Predictable (and Optimal)

Customer Experience in the post-

relational, post-PC, Internet of

Everything digital marketplace?

Don’t Do Radio on TV: Process Should Drive Your Mobile Strategy and Your Customer Engagement Strategy

Meaningful Transparency of Business Operations Requires Gaining Visibility Beyond Core Business Systems, Into the Edge-points of Customer Interaction

Focus on the Ability to Measure Performance and Progress in Holistically, Across the Entire Customer Experience Lifecycle

BPM and ODM Going Forward: Strategy Take-Aways

Industry Shift From Efficiency to Effectiveness

It’s No Longer (just) About Saving Money, TodayIt’s About Making Money

Focus on Response Time and Customer Experience

Success Metrics and Performance Objectives are Increasingly Revenue-Focused not Cost-Driven

The App is Not Your Mobile Strategy, it is the Process!

BPM and ODM Going Forward: The Next 12 Months and Beyond

Your Strategy. . . Develop a “Metrics Culture” Across Your Organization (not just your own team)

• Know When and How Success Will be Measured

• Show Results Frequently and On Time

• Formalize Your Own Customer Experience Maturity Model (pick one, define one, but use it)

Your Strategy. . . Sell Your Program on Growth vs Cost

• Know Your Metrics and Make Them Visible

• Target Growth Areas With Momentum

• Engage Customers Throughout – Directly and Through Stakeholders

Your Strategy. . . Scale Your Team With the Program

• Start With Cross-Functional Team / Skillset

• Release Often – Results < 90 Days

• Create a Feedback Look for: Target -> Results -> Review -> Redeploy

•Get Started!

As a starting point, avoid processes that:

√ are already well-defined,

√ are overly complex, or

√ are politically charged.

Look for opportunities and processes that are characterized as:

√ paper-intensive, involving tasks done on a frequent basis (daily),

√ lacking a rigid or controversial definition, and

√ having an immediate and measurably positive impact on customers, stakeholders and/or end users.

Getting Started With BPM:Picking the Right Targets

Com

plex

Tactical StrategicAlignment With Business Goals

Sim

ple

Deg

ree

of D

iffic

ulty

Limited Value,Low Visibility

Likely Target Area

High Value,High Risk

Getting Started With BPM:Picking the Right Targets

How Will This Improve The Customer’s Experience?

Who Benefits From The New Process or System?

What Metrics Provide the Best Measurement of Success?

Are the Terms (Vocabulary) Consistent and Mutually Understood?

Will the Users of the Process Measure Success the Same as Other Stakeholders and/or Sponsors?

How Do We Engage Our Customers’ Perspective in the Understanding and Definition of the Business Process?

Getting Started With BPM:Picking the Right Targets

Contact Info:

Nathaniel Palmer

nathaniel@bpm.com

+1 (781) 534-3868 mobile

twitter.com/nathanielpalmer

www.linkedin.com/in/bigdatasmartprocess/