LAS VEGAS, - 11 Apr 2011: IBM (NYSE: IBM) today announced a new global consulting and services practice to help companies improve the performance of core business processes such as marketing, human resources and finance, as well as industry-specific processes such as insurance claims, campaign management and compliance.
Drawing on the expertise of thousands of IBM consultants from around the world, the new practice will provide solutions at all phases of process transformation, from enterprise strategy and governance to specific process solutions. IBM business process management (BPM) and service-oriented architecture experts will provide these services from a variety of locations in the U.S. and around the world.
According to Gartner, Inc.’s recent Magic Quadrant report for Business Process Management Suites, “Gartner estimates that the size of the BPMS software market in 2009 totaled $1.9 billion in revenue, compared with $1.6 billion in 2008 – an increase of 15%.” In that report, IBM’s WebSphere Lombardi Edition is positioned in the Leaders Quadrant.1 IBM’s BPM product portfolio, which is growing at a double-digit pace, includes offerings from IBM WebSphere software and technologies from IBM’s acquisitions of Lombardi and ILOG, as well as new offerings such as IBM Case Manager.
The practice IBM is introducing today is designed to help line-of-business executives rapidly deploy technology solutions to improve business processes and to create systems for enterprise governance and centers of excellence for BPM.
To gain a competitive edge, businesses need to make their core business processes flexible enough to support business growth while improving cost structures and productivity. This is driving growth in the market for BPM software and services, as demonstrated by IBM's double-digit BPM software sales growth and the growth in consulting engagements across several major industries.
BPM enables line of business executives to control specific processes and associated tasks, giving them true ownership of the assets that are the life blood of their businesses. These technologies are simple for executives to use and understand and can drive increased return on investment. BPM technologies also empower leaders to identify opportunities for broader improvements such as application modernization and complex system integration, providing concrete business justification for the investment.
Among the clients IBM has worked with in BPM is Lincoln Trust Company, one of the leading independent U.S. providers of self-directed IRA accounts, as well as recordkeeping, administrative and custodial services to 401(k) plans and other defined contribution plans.
“Our business process management initiatives helped us survive and even thrive through the global financial crisis,” said Helen Z. Cousins, executive vice president and chief information officer, Lincoln Trust Company. “This practice is much needed to accelerate business improvements and give control to people in each department that really run the business every day.”
Among the services, the new practice offers are:
· Analyzing core processes, identifying gaps and creating a roadmap for process transformation.
· Developing a framework for enterprise-wide business process governance.
· Creating models for new, improved, and/or optimized business processes.
· Using BPM to better orchestrate work and integrate disparate systems within and across the enterprise.
· Implementing BPM-enabled solutions.
Regulatory compliance will be one of the areas the new BPM services practice will focus on. For example, in the U.S., IBM is helping health care payers prepare to comply with regulations that require the use of new diagnostic and procedure codes by October 1, 2013. Using IBM Transformation Accelerator and Manager for ICD-10 technology based on IBM’s BPM software, IBM consultants are helping clients comply with this mandate, known as International Classification of Diseases version 10 (ICD-10). The mandate requires payers to migrate from a system involving the use of 30,000 procedure and diagnosis codes to a new code set of more than 142,000.
In retail, key BPM drivers include the need for efficiency and customer satisfaction. For example, for a global retailer whose custom-built systems were no longer able to support the company’s growth, IBM consultants are building a solution that combines proven BPM methods with IBM software. The retailer will use a single dashboard to view information on all the products moving through its supply chain that will have automated rules for handling late shipments or other exceptions, as well as the flexibility the company needs to change business rules over time without custom coding.
“Business processes are the mechanism that allow companies to execute on their strategies,” said Michael Natoli, partner and BPM executive, IBM Global Business Services. “The mission of IBM’s BPM practice is to help clients rapidly transform business processes to better support their overall enterprise strategy.”
The new practice will be part of the GBS Application Innovation Services line and complements GBS’ broader portfolio. Find more information about GBS here: http://www.ibm.com/services/us/gbs/consulting/
1 Magic Quadrant for Business Process Management Suites, Jim Sinur and Janelle Hill, October 18, 2010
About Gartner’s Magic Quadrant
The Magic Quadrant is copyrighted 2010 by Gartner, Inc. and is reused with permission. The Magic Quadrant is a graphical representation of a marketplace at and for a specific time period. It depicts Gartner's analysis of how certain vendors measure against criteria for that marketplace, as defined by Gartner. Gartner does not endorse any vendor, product or service depicted in the Magic Quadrant, and does not advise technology users to select only those vendors placed in the "Leaders" quadrant. The Magic Quadrant is intended solely as a research tool, and is not meant to be a specific guide to action. Gartner disclaims all warranties, express or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.
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