March 16, 2017 Boston event featuring Vizuri, Red Hat and Signavio.

1. Welcome!
Preparing For Digital Transformation
Boston, March 16 2017

2. 2
2:30PM—3:15PM
Red Hat Presentation: Powering Digital Transformation
3:15PM—4:00PM
Vizuri Presentation : Preparing for Digital Transformation
4:00PM—4:30PM
Signavio Presentation: Tools for Digital Transformation
4:30PM—5:30PM
Happy Hour / Networking Time
AGENDA

3. “...Because we have to compete
against new disruptive startups that
are hiring kids fresh out of college
drinking loads of Mountain Dew!”
(CIO @ Global Insurer)

4. Vizuri: Preparing for Digital
Transformation

5. 5
Introductions
Joe Dickman – SVP, Vizuri
Business leader working with organizations to understand how to leverage
innovation for increased business agility. Specializes in insurance,
healthcare, financial service, retail, and logistics.
Ken Spokas – Technical Director, Vizuri
Technology and Subject Matter Expert working with organizations to
evaluate architectural approaches, design extensible solutions, and
introduce innovative technologies to improve business agility.
Ben-Johan van der Walt – Solutions Architect Vizuri
Architect on many of Vizuri’s Rule engagements, leading projects on both the
technical and analytical side to successfully bridge the gap between
business and IT for our clients.

6. 6
Vizuri Overview
● Expert Java EE & Open Source Solution Provider
● Premier Red Hat Business Partner
● Preferred JBoss Certified Systems Integrator
● 4 Red Hat Innovation Awards
● 5 Time JBoss Middleware Partner of the Year
● Certified Resources
● Sponsor DC JBoss Users Group

7. 7
Vizuri Core Strength
Bridging Business and Tech
● Identify strategic business
drivers
● Understand customer’s
business
● Evaluate architectural
alternatives
● Design solutions using proven,
innovative, and adaptable
technologies
● Validate designs through
iterative prototyping
Business
Strategy
Solution
Architecture
Development
Implementation
Building Extensible Solutions
● Reference
Architecture
● Continuous Delivery
● Design Patterns
● Performance
● Scalability
● Resiliency

8. 8
Pillars of Digital Transformation
API
Management
Infrastructure
Management
Knowledge
Management

9. 9
Pillars of Digital Transformation
API
Management
Infrastructure
Management
Knowledge
Management
● CI/CD
● Repeatable provisioning
● Self-service
● Governance
● On-Premise / Hybrid / Cloud
● Microservices
● 3rd Party / Internal
● Security
● Monetization
● Death Star
Architectures
● Rules / Decision
● Business Processes
● Predictive
Analytics
● Machine Learning
● Unprecedented
amounts of data

10. 1
0
Traditional Sense of SDLC

11. 1
1
Enterprise Software Engineering Focus Areas
API
Management
Infrastructure
Management
Knowledge
Management

12. 1
2
Conway’s Law
Organizations which design systems… are constrained to
produce designs which are copies of the communication
structures of these organizations
Melvin Conway - 1967

13. 1
3
Conway’s Law - Variation
If the parts of an organization ... do not closely reflect the
essential parts of the product…, then the project will be in
trouble...
Coplien & Harrison, 2004

14. 1
4
Knowledge Based IT Management Challenges
● Disparate Vocabularies
● Translation of defined rules
and processes
● Different Business and IT
Champions
● Lack of 360 degree
feedback loop
● Lack of organizational
visibility across the entire
business

15. 1
5
Expectations vs. Outcomes
Business groups and
IT require new
positions to be defined
that ”bridge” the
communication gap.

16. 1
6
What is Knowledge-based IT?
A knowledge-based system (KBS) focuses on systems that use knowledge-based
techniques to support human decision-making, learning and action1
Knowledge-based IT (KB-IT) is the application of KBS techniques with information
technology
• Design process
• Models and methods
• Software tools
• Decision-support mechanisms
• Digital representation, and
• System architectures
Source: Fujita, H., & Lu, J. (2012). Knowledge-based Systems, Volume(31), pp. 1-211.

17. 1
7
What is Knowledge-based IT?
IT Solution where Knowledge is a first class citizen
– Business Rules and Process boundaries are clearly defined
– Goals drive the solution, not the IT restrictions
Change can be accommodated quickly without being
impeded by IT limitations
– The process knowledge definition and concept model
should ”outlive” any technical implementation
– Decouple the concept model and process definition from
the underlying implementation to create business agility

18. 1
8
What is Knowledge-based IT?
● BPM provides a systematic approach to
making an organization's workflow more
effective, efficient, and capable of adapting
to ever-changing business conditions
● A business process is an activity or set
● of activities that will accomplish a specific
organizational goal
● A business rule management system (BRMS) enables organizational
policies, and the operational decisions associated with those policies,
to be defined, deployed, monitored and maintained separately from
core application code

19. 1
9
Primary Goals for Considering Knowledge-based IT
• Increase organizational agility
• Document processes to identify gaps
and critical dependencies
• Protect Intellectual Capital
• Reduce Complexity
• Provide insight into implementation
• Improve IT Outcomes
• Collect Key Performance Indicators
• Support Contingency Planning

20. 2
0
Compliance, Audit, and Policy
• Insurance
– Underwriting
– Claim Adjudication
• Healthcare
– Standards of Care
– Plans of Action
• HIPAA
• SEC Finance Disclosure
• Mortgage Lending
• Government Agencies

21. 2
1
General Approach : Get Organized!
Both IT and Business Need Coordinated Discipline
● Build a common way to describe things
● Get Commitment!
● Decompose the problem appropriately
● Build with quick iterations
● Continually monitor, adapt and improve
● Take an inventory of the AS-IS problems and solutions
Discipline at each step pays off in both the short and long term!

22. 2
2
Challenge : Disparate Vocabularies
Truck ?

23. 2
3
Challenge : Disparate Vocabularies
All stakeholders must be able to communicate effectively:
• Common Vocabulary
– Non-ambiguous, understood by all
– Understood, or in a central reference
– Composes the “Concept Model”
• Business Rules succinctly defined in near human language
– Not necessarily executable
– Closest to real language the better, but avoiding ambiguity
• High level “happy path” processes modeled visually

24. 2
4
Project Spotlight : Railinc RPM Initiative
● Concentrated (5 year) RPM effort
● Canonical vocabulary and rule
definitions
○ Business Rules Solutions
● Rules Development standards
○ Auditing
○ Traceability
○ Feedback
● Program Assessments
● Rules Training efforts
● Rules Maturity Model

25. 2
5
Challenge : Different IT & Business Champions
Need all stakeholders to make a sincere commitment to
collaborate:
● The more management buy-in, the more hope of project
success
○ Time-boxed modernization effort (typically 3 to 5 years)
○ Appetite to continue support of center of excellence beyond
inception
● Need influential champions on both Business and IT side
○ IT left alone will mangle Knowledge IT to look like traditional IT
○ Business left alone will make infeasible goals

26. 2
6
Challenge : Different IT & Business Champions
Knowledge management is high-level and high-trust
● Big responsibility… no other IT projects are closer to the
heart of the organization…
● Often straddles business units/departments
● Enable organization and collaboration
○ Tear down walls when appropriate
○ Will fail without sincere buy-in

27. 2
7
Project Spotlight : Large Mutual Insurance
Company
● Shortage of underwriters
● Inconsistent risk ratings
● Struggled with IT agility to push
services to help situation
● Previous Project attempt failed
● Built a rules engine group
● Rules exposed as business centric service
● Automated a large portion of the manual decision making
process
● Underwriting approval process was reduced from 40 days to
under 5 days

28. 2
8
Challenge : Lack of 360 Feedback Loop
● Are the Key Performance Indicators
provided for processes/decisions?
● Is the process “healthy”?
● What are the bottlenecks?
● Which rules were (or were not) applied
to arrive at a decision?

29. 2
9
Challenge : Lack of Visibility Across Business
● Lost in translation?
○ From requirements to implementation
○ Reduce/simplify translation steps
● Declarative definitions
○ BPMN/DMN

30. 3
0
Project Spotlight : PMI Rate Calculator
Fortune 500 Insurer providing Private
Mortgage Insurance
● Legacy Systems were out of date
and existing Rules Technology was
being sunsetted
● Business could not keep up with the
rate of business rule changes
● “States” and “Dates”
● Performance was becoming an issue

31. 3
1
Going Forward: Process Assessments

32. Red Hat Offerings Empowering
Digital Transformations

33. 3
3
SO YOU HAVE A MODEL, NOW WHAT?

34. AUTOMATING BUSINESS PROCESSES
BUSINESS PROCESS
MANAGEMENT SYSTEM
BUSINESS
RULES

35. NYSE:
OPEN
SOURCE
LEADER
#1
500
S&P
COMPANY
RHT
MORE THAN
90%of the
FORTUNE
500
RED HAT
use
PRODUCTS &
SOLUTIONS*
~10,000
EMPLOYEES
85
OFFICES
35COUNTRIE
S
THE FIRST
$2
OPEN
SOURCE
COMPANY
IN THE WORLD
BILLION

36. Tools for
business experts
Tools for
developers
PROCESS
PARTICIPANTS
ON-PREMISE
SYSTEMS
CLOUD
SERVICES
APPS
APPS
APPS
Process
Services
Decision
Services
Business Central Process Server

37. PROCESS AUTOMATION WITH RED HAT
Your business
experts build...
Process
models
Decision
models
Which are stored
in the Red Hat
repository...
Where they are
packaged into
applications...
And deployed...
To the
cloud...
or to
servers in
your data
center.

38. PROCESS AUTOMATION WITH RED HAT
AND SIGNAVIO
Your business
experts build...
Process
models
Decision
models
Which are stored
in the Red Hat
repository...
Where they are
packaged into
applications...
And deployed...
To the
cloud...
or to
servers in
your data
center.
Process Editor
Decision Manager

39. 3
9
DEPLOY TO THE THE CLOUD?

40. 4
0
DEPLOY TO THE THE CLOUD?
Decision
Microservice
Process Application Planning
Microservice
Payment
Microservice
Modern
microservices
architectures

41. 4
1
DEPLOY TO THE THE CLOUD?
Decision
Microservice
Process Application Planning
Microservice
Payment
Microservice
Modern
microservices
architectures
Next-gen user
experience

42. Siganvio: Business Transformation Suite
The smarter way to continuously translate between
strategy and execution

43. Welcome,
introduction
― David Gaudin,
SVP Sales, Signavio, Inc.

44. Today’s World

45. Agility is not a Buzzword, it’s a Necessity
The pace, volume and complexity of change of
today’s world demands that every organization
becomes agile

46. ▪ Rapid Pace of
Technology Evolution
▪ Focus shift on Customer
Experience
▪ New & Evolving
Complex Regulations
▪ The Battle for Talent
▪ Decipher Volume of
Intelligent Data
▪ Rising Security Threats
Keeping up with the Pace,
Volume, Complexity, & Costs
of Change
Today‘s World
What are we hearing
that is driving the
constant state of
Change?

47. VP/Director/Manager of…
• Performance Excellence
• Business Transformation
• Customer Experience
• Process Excellence
• Risk and Compliance
• Operational Excellence
• Digital Transformation
• Employee Engagement
• Risks & Controls
• …..dozens more
Keeping up with the Pace,
Volume, Complexity, & Costs
of Change
Struggling to keep up with
the Continuous State of
Change
The New
Normal

48. • Time & money wasted by multiple groups
changing in isolation
• High customer complaints & retention
issues
• Employees having poor process
understanding or unable to access needed
information
• Change initiatives failing, lack of employee
engagement
• Rising costs of duplication and re-work
• Knowledge gap between business and IT,
leading to wrong system priorities, and
wasted IT resources
Business Impact
Traditional
Approach to
Managing Change
as “Initiatives“

49. Reactive
Approach
✓ Unmanageable Static Documents
(Visio, PowerPoint, Word, Excel)
✓ Document Storage Initiatives
(SharePoint, Box, OneDrive)
✓ Multiple All-Day Meetings
✓ Training Sessions & Initiatives
✓ Uncontrollable Volumes of Emails
✓ Post-It Notes Everywhere
✓ Tribal Knowledge & Superheroes Prevail

50. Keeping up with the Pace,
Volume, Complexity, & Costs
of Change
Are you keeping
up?

51. Keeping up with the Pace,
Volume, Complexity, & Costs
of Change
So what is on
your Mind?

52. Over the next 5 Years …
Organizations will be competing against,
partnering with, or serving customers they
never would have expected.

53. “We didn’t do anything
wrong, but somehow, we
lost”
- Nokia CEO
Hard Lessons:
o The advantage you have today
will be replaced by the trends of
tomorrow.
o You must innovate & improve,
or one day become redundant &
irrelevant.

54. Razor Wars:
Gillette Vs. Harry’s Vs. Dollar Shave Club

55. The Current
Uber Vs.
Taxi Turf War

56. Hotels Vs. Airbnb:
Let the Battle Begin

57. New Business
Challenge:
Agility & Innovation

58. ▪ Accelerate our speed
to market?
▪ Govern the pace &
lower the cost of
change?
▪ Shortcut traditional
approaches?
▪ Align Business & IT
on strategic
outcomes?
▪ Impact customer
journey vs. minor
stovepipe
improvements?
New Business
Challenge:
Agility &
Innovation
So how
can I…

59. ✓ A single source of truth for – Business Process,
Business Rules, Enterprise Architecture, Roles and
Responsibilities, Risks and Controls, SOP’s,
Training Resources
✓ Model-based Business – continuous business
improvement and agile operating model
✓ Readily acceptable common language between
business and IT teams to work collaboratively on
strategic outcomes
✓ Leverage wisdom of the crowd to promote
contribution to and sharing of process knowledge
throughout the organization
✓ Visibility & Transparency for all to easily find
information - anyplace, time, device - and through
any lens, across barriers
✓ Visual gap analysis to view potential changes to
Keeping up with the Pace,
Volume, Complexity, & Costs
of Change
A Better Way

60. Signavio &
Redhat
The Best of Both
Worlds
Business Community
Collaborative Design, Analysis, Validation, Optimization, Governance
IT Community
Develop, Deploy, Run, Monitor

61. Process
Manager:
An Intuitive BPM
Solution

62. QuickModel:
The Easiest Way
to get started

63. Collaboration:
Knowledge of
the Crowd
Signaviohttps://editor.signavio.com

64. Visual
Comparison
& Version
Control

65. Simulation:
Optimize Costs,
Time,
Resources
Signaviohttps://editor.signavio.com

66. Roles &
Responsibilities
Signaviohttps://editor.signavio.com

67. Data Dictionary:
Consistency &
Reuse

68. Reports &
Documen-
tation

69. Decision
Manager:
Decision
Modeling
Signaviops://editor.signavio.com

70. Decision
Manager:
Decision
Modeling
Signaviops://editor.signavio.com

71. Decision
Manager:
Decision
Logic
Signaviops://editor.signavio.com

72. Decision
Assistant
Signaviohttps://editor.signavio.com

73. Collaboration
Hub:
Your BPM
Process
Landscape

74. Collaboration
Hub: Overview
Signaviohttps://editor.signavio.com

75. Process
Intelligence:
Insight into
your Process
Operations
Expected
Path vs.
Actual Path

76. Global Financial Services

77. Regulatory
Compliance
▪ Rapid growth of new
regulations
▪ Increasing
complexity
▪ Ever-changing
interpretations
▪ Very costly to
implement
Model for Success
▪ Thousands of
regulations modeled
▪ Rules visibility across
organization
▪ Business community in
control
▪ Governance & Audit
Trail

78. Results
▪ Lower cost of change,
dramatic savings $M
▪ Speed to market, change
cycle: From 6-18 months to
Days/Weeks
▪ Clear Visibility & audit trail

79. Major US Life Insurance

80. Market Opportunity
▪ New Customer
Journeys &
Experiences
▪ New Products and
Paths to Market
▪ Increase Innovation
and Agility
▪ Slow Manual Legacy
Systems & Processes
▪ Tribal knowledge
Innovative Approach
▪ Business Community in
Control of Process &
Decision Logic
▪ Crowd Contribution and
Knowledge Share
▪ Governance & Oversight of
changes
▪ Seamless integration with
IT Systems and
Applications

81. Results
▪ New operating model for today
& tomorrow
▪ Wide audience contributing
innovative ideas for new
products and services
▪ Business community validation
of business rules & logic
before promoting to IT
▪ Dramatic reduction in change
cycle, delivery reduction from
6+months to weeks
▪ Everyone on same page,
awareness & notifications of
changes

82. Signavio
2009
founded
1000+
customers
Offices:
Berlin
Boston
Singapore
The first
web-based
modeling tool
The next generation business process and decision modeling platform
150+
employees

83. Small Company, Many Customers
Public Sector
Software & InternetRetail & Logistics
Manufacturing Communications
Banking & Insurance
Utilities and Energy
Academic Institutions

84. Register now
for our free
30 day trial!