George Clark and Jamie Raut presented on applying a business process management (BPM) approach to three financial services environments: commercial middle market lending, private banking, and commercial real estate lending. They discussed how CSC customized its BPM approach for each client, including current state assessments, future state designs, and implementation roadmaps. Lessons learned included challenges implementing new BPM technologies, the nature of business processes, and industry-specific factors for finance.
2. Speaker Introductions
• George N Clark
Principal Consultant, Denver Delivery Services, Consulting Group
Senior Business Process Specialist. 7+ years with CSC Consulting working in Project
Management, Business Architecture, and Business Process roles.
Actively involved in the Private Banking and Commercial Real Estate projects
discussed in this presentation.
• Jamie Raut
Senior Consultant, San Francisco Delivery Services, Consulting Group
Technical Designer. 5+ years with CSC Consulting and CSC Australia. Application
Architect and Developer specializing in J2EE technologies.
Actively involved in the Commercial Middle Market, Private Banking, and Commercial
Real Estate projects discussed in this presentation.
11/5/2007 11:45:18 AM 2
3. Presentation Overview
• Project background and review of last year’s presentation
– A Practical Approach to Introducing BPM into the Enterprise
• BPM Approach
• Review of Approach as Applied to the Financial Services
Industry
– Commercial (Middle Market)
– Private Banking
– Commercial Real Estate
• Lessons Learned
• Questions
11/5/2007 11:45:18 AM 3
4. Case Study Background
Client
• Segment-leading Financial Services company
• Industry leading performance by key business metrics
• Predominant use of legacy, in-house developed technology solutions
Account
• Initial RFP for Wholesale Banking issued to 8 major IT, Strategy and
niche players
– Subsequent project for Private Banking and Commercial Real Estate Groups
have started without going through an RFP process
• CSC deployed a cross-practice team - IT, Process & Domain expertise
• Projects have been business driven with joint CSC and client
management
• Technology and Business Teams tightly integrated
11/5/2007 11:45:18 AM 4
5. Last Year our team presented on the benefits of a BPM
based approach to BPR
1. Business Led
• Designed by process owners
BPM • Processes designed in business terms
Process
Design • IT support to realize business vision
B P M Conceptual Overview
Tools
Process Owner(s)/
User(s) 2. Flexible
• Long-lived, complex processes
Business Process Layer • Covers automated, human and hybrid
Business Process High Level Logic/Rules activities
A • Multiple processes on one BPMS
BPMS • IT Architecture is process-driven
Process
B Orchestration
3. Agile
• Near real-time process editing
Connectors
• Technology abstracted from business
Middleware Data processes
• Process as executable code
Applications
& Tools
IT Infrastructure
Business Process Management (BPM) is key to the next generation process transformation
Business Process Management (BPM) is key to the next generation process transformation
11/5/2007 11:45:18 AM 5
6. A BPM based approach to BPR enables a very rapid parallel
and iterative discover, design, develop and deploy cycle
Vision 1. Discovery 8. Analyze Process Activities
PROCESS
2. (Re)Design
• Fast accurate visualization
• Process elements captured
as data – stored a process
repository
• Design can be analyzed,
costed and quantified
3. Simulate 4. Deploy 5. Execute
Technology
T E C H N O L O G Y
Activities Design
• Processes can be
simulated, automated
and deployed on
BPMS
• Iterative, parallel Mo e
nito nag
development r Ma
approach 6. Operate
• Manage and control
BUSINESS
• Faster deployment executing processes
than traditional
waterfall 7. Optimize
• Activity Monitoring for
ongoing analysis and
improvement
Parallel/iterative BPM development achieves superior results in less time than traditional approaches
Parallel/iterative BPM development achieves superior results in less time than traditional approaches
11/5/2007 11:45:18 AM 6
7. CSC’s BPM approach was customized to achieve
client objectives
• Key Client Objectives:
– Constraints on growth due to process inefficiencies
– Process inconsistency across lines of business and regions
– Mismatch of customer/market expectations with capabilities
• CSC Process Delivers:
– Current State Assessment
• 100+ interviews, BPM process maps incl. enablement, root-cause analysis
– Future State Vision and Design (Process & IT)
• Focused on cycle-time and effort reduction, flexible infrastructure
– Gap Analysis & Implementation Roadmap
• Process, Technology and Organization simultaneously
– Business Requirements & Technology Architecture
– Rapid Process-Centric Prototyping
11/5/2007 11:45:18 AM 7
8. The basic systems design uses a Service Oriented Architecture
approach, driven by the business process
11/5/2007 11:45:18 AM 8
9. We have applied our approach to three distinct business
environments all related to lending
Commercial – Private Banking Commercial
Middle Market Real Estate
Commercial loans- Funding Mix of commercial and retail Relationship based real estate
Product working capital, equipment lending, each with different lending, recourse and non-
Types leasing, agricultural financing, product sets recourse
commercial real estate, etc.
Transaction
Medium High Low
Volume
Transaction
Medium High
per Lender Low
Transaction Size Medium Small Large
Standardized with regional Standardized process in High level of exceptions and
Process variations, with medium level of majority of transactions, with human intervention in the
Standardization exceptions and human some exceptions and human majority of transactions. Need
intervention intervention for ongoing collaboration.
Origination system built on Origination system built on
Existing Point solutions, excel
outdated technology, various aging technology, various point
spreadsheets, and enterprise
Technology point solutions, and enterprise solutions, and enterprise
accounting systems
accounting systems accounting systems
Other Active Development of internal portal PeopleSoft CRM and BEA No major technology projects in
Technology application implementations ongoing active development that are
specific to Real Estate lending
Projects
11/5/2007 11:45:18 AM 9
10. Commercial – Middle Market
• Existing Technologies and Ongoing Projects
– Good traction on SOA (Service Oriented Architecture)
– Shared customer data through web services
• Process Standardization
– Strong management support
– Underlying resistance to change in line, but some willingness to change due to
compliance / regulatory factors
• Project Direction Decisions
– TIBCO Staffware chosen as BPM tool
– High level architecture is comprised of custom J2EE portal application, sitting on
top of TIBCO, which in turn orchestrates the shared service layer
– Presentation layer built on BEA WebLogic Portal 8.1
– Services layer built on webMethods Integration Platform 6.0.1
– Long-term (multi-year), large functional release chosen due to lack of existing
systems to leverage, and decision to provide a large amount of functionality
– Leveraged Portal application that was being developed at the same time
– ProActivity used for current and future state modeling
– Existing methodology in place, including UI standards
11/5/2007 11:45:18 AM 10
11. Private Banking
• Existing Technologies and Ongoing Projects
– Stand alone system for loan origination in place. Good example of a rushed
prototype system that was prematurely deployed to production.
– PeopleSoft CRM project and BEA projects in the initial stages of development
• Process Standardization
– Commitment from Senior Management to standardize processes, including:
Approvals, Underwriting, Documentation and Booking
– Some resistance to automating previously manual activities within the line.
Realization that the standardized process had many exceptions.
• Project Direction / Decisions
– Large technology investments just prior to the BPM project. Due to budgetary
concerns, determination made to not evaluate new software for BPM project.
– Data-centric CRM project made a priority, with focus from senior management
– ProActivity used for current and future state modeling
– BEA WLI used for production build of lending processes
– Small, manageable releases chosen based on the larger CRM/BPM roadmap
11/5/2007 11:45:18 AM 11
12. Commercial Real Estate
• Existing Technologies and Ongoing Projects
– Point solutions built on modern technologies, with ongoing minor enhancements
– Desire to leverage the Commercial Middle Market solution described earlier
• Process Standardization
– Three distinct real estate lending groups have different cultures and perceive their
processes as unique
– Regional and office variations are common based on personal styles and market factors.
Senior Management has expressed a desire to standardize processes.
• Project Direction / Decisions
– Project is currently in the Discover and Design phase
– Senior management has indicated the desire to explore a rapid development process
– Knowledge worker environment with a high level of exceptions and human intervention is
impacting the analysis of what tools are appropriate
• Applying Lessons Learned
– Rapid prototyping will be used to drive out functional design, with the goal of leveraging
the prototype into development
– Solution Demonstration Lab (SDL) is being used to gain user buy-in and to create
champions within the organizations
11/5/2007 11:45:18 AM 12
13. 3 Implementations of the Architecture
Commercial Real Estate Commercial Middle Market Private Banking
(Prototype)
Presentation
Process
Execution/
Service
Orchestration
Service/
Data Access
11/5/2007 11:45:18 AM 13
14. Lessons Learned
• Implementation of New BPM Technologies
– IT Departments
• Our projects were the first where the process wasn’t baked into the
source code
• There are some challenges in communicating the value of the BPM
approach and tools
• Existing development staff are focused on coding to specifications,
not understanding the process
– Existing Technology Base
• Difficult to justify the cost of acquiring more appropriate tools if the
organization already has licenses for a product that could be
utilized
• Every technology is a BPM technology these days
11/5/2007 11:45:18 AM 14
15. Lessons Learned (continued)
• Nature of the Business Processes
– Fundamental question of whether the process is well defined
and repeatable, or mostly exception processes?
– Influences on the tool selection
• Tool strength may be in system-to-system, or
human-to-human interactions
• High transaction volumes and large user base emphasize
scalability and standardization
– Knowledge Worker – Human to Human
• Knowledge worker environment creates the need for an iterative
working environment that facilitates collaboration
11/5/2007 11:45:18 AM 15
16. Lessons Learned (continued)
• Finance Industry Specific Factors
– Content Management
• The ability to re-use financial analysis requires the use of content
management functionality
– Business Intelligence / CRM
• Industry emphasis on ‘know your customer’ can dictate a data
centric approach
– Compliance
• Rapidly changing requirements are significantly impacting
processes
• Project Planning
– Smaller releases preferred over large releases (90-120 days)
– Preferable to avoid the temptation to model the universe of
processes in the first release
– Keep it simple, address the largest pain points in the first
release (and not much else)
11/5/2007 11:45:18 AM 16
17. Current Delivery Team Composition
Account Manager Industry Expert
Ken Long Rosie Hartman
Project Manager /
Technical Architect
Business Architect
Jamie Raut George Clark
Industry Expert Process Modeler Business Analyst Business Analyst Business Analyst Technical Analyst
David Nash Neil Kakita Hunter Stair Amy Haase Jennifer Tian Renée Lum
Support Team and Previous CSC Project Team Members
• Elaine Anderson • Viraz Fouzdar
• Robert Reti • Ajay Chaudhari
• Keith Mattioli • Johan Schutz
• Kerry Bardwil • Anil Joshi
11/5/2007 11:45:18 AM 17
19. Business Process Modeling/Analysis Tool: ProActivity
• Flagship product from
ProActivity Inc. chosen as
BPA tool
• Primarily a modeling tool
• Add-ons available for BAM
• Process exportable to
BEA WLI, Fuego, Oracle
• Captured “as is” and “to be”
state using the tool
• Existing roles and systems
assigned to process steps
in “as is” model
• Designed roles, systems and services assigned to process steps in
“to be” model
11/5/2007 11:45:18 AM 19
