IBM BPM solution for Export Credit Insurance in HBOR. Watson SEE Summit 2017

Transcription

1 IBM BPM solution for Export Credit Insurance in HBOR Watson SEE Summit 2017

2 IBM BPM solution for Export Credit Insurance in HBOR Vedrana Gavran Franić Hrvoje Mance

3 About HBOR HBOR was founded and is entirely owned by the Republic of Croatia. Within the Croatian banking system, HBOR plays the role of a development, export bank and Export credit agency established with the objective of financing the reconstruction and development of the Croatian economy. Main activities of HBOR: financing the reconstruction and development of Croatian economy financing infrastructure promoting exports supporting the development of small and medium-sized enterprises promoting environmental protection insuring the exports of Croatian goods and services from non-marketable risks In 2016 HBOR insured 192,32 million EUR and supported export activities to over 50 countries worldwide. 3

4 What is BPM? Business Process Management (BPM) is an area of knowledge that combines business processes and information technology through the use of various methods and techniques for creating, managing and examining work processes involving people, organizations, applications, documents, and various other information as components of a business process BPM enables organizations to become more efficient, more effective and capable of change from a functionally oriented, traditional hierarchical approach to management 4

5 Typical Challenges and Results of Business Process Implementation Optimizacija tijekova rada između ljudi i sistemskih zadataka Significant amount of re-working due to errors Reduced productivity due to unstructured tasks or inconsistent priorities Inefficient work environment due to process execution in multiple systems Inability to change processes as fast as business requirements change Organizations had > 90% success rates on BPM projects. 67% of projects were completed in < 6 months, 50% in < 4 months. 77% of projects had returns greater than $100,000 per project. BPM projects had 10% or more Internal Rate of Return (78% had >15% IRR, some as high as 360%) 80% of the respondents felt an increase in competitive advantage. BPM s value to the company was higher than ERP, CRM and SCM. (Source: Justifying BPM Projects, Gartner) 5

6 Process improvement requires Third Way Process-improvement requirements are likely to be unique, which favors build rather than buy. And the timeframes and costs of both are often not compatible with process improvement, so a ʻthird wayʼ is required. IBM BPM is Best of Both Worlds approach. Flexibility Build Customized Unique High TCO IT bandwidth Buy Low cost/time Third BPM Way Reduced time Initial Cost Standard Feature set Reliance on vendor Response to Change Fast ~ Agile ~ Iterative Create your own process application in less time and lower cost than purchasing and customizing your finished applications 6

7 Bridging the gap between business and IT Key for BPM and SOA Top-Down analysis Understanding business units to identify business processes Business Architecture Business Strategists and Business Analysts Business Missing technical skills to understand IT-based process optimization potential Harmonizing business requirements with a consistent IT strategy BPM Process Owners Process Architects Bottom-Up analysis Identifying technical implementations to be used by identified business activities IT Architecture IT Management and IT Architects IT Missing business skills to identify the right granularity of required IT services 7

8 Bridging the gap between business and IT Key for BPM and SOA Top-Down analysis Understanding business units to identify business processes Business Architecture Business Strategists and Business Analysts Business Missing technical skills to understand IT-based process optimization potential Harmonizing business requirements with a consistent IT strategy (Business defined) Process Activities BPM + (IT supported) Service Implementations Process Owners Process Architects Bottom-Up analysis Identifying technical implementations to be used by identified business activities IT Architecture IT Management and IT Architects IT Missing business skills to identify the right granularity of required IT services 8

9 IBM Business Process Manager Social Mobile Process Server Coaches Access / Monitor Portal Business Space Optional Microsoft Add-ons Core BPM Advanced Integration BPMN Process Rules Performance Data Warehouse Run BPEL ESB Adapters Deploy Measure Governance / Visibility Shared Assets Define Share / Store Improve Server Registry Process Center Design Versioned Assets Deploy Network Multiple Process Centers Implement Process Designer / Optimizer Modeling is done here! Process Center Console Process Designer / Integration Designer 9

10 Process designer diagram editor Business processes, data objects, business rules, screens, services, etc. Business process definition (BPD) diagram editor BPD palette to enhance process 10 History of PA versions based on snapshots Page with the properties of the selected process task (data mapping tab)

11 Process designer - screen editor The graphical interface is created within the executable process and can serve as a quick presentation of the process to the end user 11

12 Processes in Solution for Export Credit Insurance leads the user through every step of the process shows the priority of the tasks assigns the tasks to users or teams sends an when the user has a new assignment enables cooperation within teams from different departments reports and documents are created from the application documents are sent directly to management documentary system 12

13 Export Credit Insurance programs Nine Export Credit Insurance programs: Insurance of ST export receivables single transaction Insurance of ST export receivable- single buyer Insurance of ST export receivables multibuyer Insurance of ST export receivables small exporters Reinsurance of ST export receivables Insurance of MLT export receivables/supplier credit insurance Pre-shipment risk insurance Buyer s credit insurance Insurance of bank guarantees 13

14 Processes in Solution for Export Credit Insurance Two types of main export credit insurance activities: Insurance activities (5 processes) Claims and recoveries (5 processes) Insurance activities are divided into: Processing of insurance request Issuing indicative offer Decision making Issuing policies and bills Payment tracking 14

15 Processing of Insurance Request Includes program selection, data entry and data storage Issuing indicative offer with the calculated insurance premium Processing & writing proposal for the approval 15

16 Decision making process Decision making authorities 3 levels: Insurance Department verifiesproposalsfor approval & makesdecisionsfor lower level of insured sum ManagingBoard makesdecisions for thehighvalueoftheinsuredsum ExportInsurance Committee givesopinionsfor thehighvalueofthesum insured 16

17 Issuing policies and premium bills Issuing policies Legal department verification Issuing bills (processing fee and insurance premium) 17

18 Payment tracking Automatic sending of warnings (8 days, 15 days, 30 days after due date) Manual sending of warnings (enabled) 18

19 Process Portal List of tasks sorted by the priority Links to launch processes Processes Team performance view Process performance views 19

20 Process Portal Entering the request 20

21 Views View of the concluded policy

22 Detailed view Detailed view of the selected policy

23 Processes in Solution for Export Credit Insurance Two types of main activities (processes): Insurance activities (5 processes) Claims and recoveries (5 processes) Claims& recoveries process includes: Payment default notice Processing of the claim Indemnity process Recovery collection process Closure of claim process 23

24 Processing of the claim Claim application entry Processing documentation and claim application Decision making process (3 levels) Issuing contract Indemnity payment 24

25 Teams 25

26 Management view 26

27 Reporting BI 27

28 Reporting BI 28

29 Challenges during the process implementation and management Application Implementation in BPM change in mindset of users, business strategists and analysts, IT project managers, architects and designers Teamwork comply to the teamwork of all layers in the organization Connection of all teams the efficiency of all teams increases if the teams collaborate and use the already created and tested services 29

30 QUESTIONS?