e- Financial World Expo 2004

1. e-Financial World Expo 2004 Mike Forster CEO & Chairman, CommerceQuest

2. Uncertainty and Business Process

3. Compliance now a critical operational risk • Ex-CA CEO Kumar pleads not guiltyKumar arraigned on fraud, obstruction of justice charges regarding revenue accounting. • September 23, 2004- Former Computer Associates International Inc. chief executive Sanjay Kumar pleaded not guilty Thursday to charges of securities fraud and obstruction of justice, stemming from a two-year investigation into accounting fraud at the company. Former Computer Associates International Inc. chief executive Sanjay Kumar pleaded not guilty Thursday to charges of securities fraud and obstruction of justice, stemming from a two-year investigation into accounting fraud at the company. • Enron's Lay fights back • Former Enron chief tells Larry King he's responsible for Enron, but not for hidden criminal conduct. • July 12, 2004 - Former Enron Corp. Chairman and Chief Executive Kenneth Lay said Monday in a television interview that he takes full responsibility for events at Enron -- both the positive and negative -- but denies he is to blame for criminal conduct that caused the collapse of the Houston energy giant.

4. Compliance now a critical operational risk • Feds Chase TomoFederal authorities have put a bounty on ex-Symbol Technologies CEO Tomo Razmilovic • September 10, 2004 - Federal authorities have put a bounty on ex-Symbol Technologies CEO Tomo Razmilovic, who fled from securities fraud charges to Sweden earlier this year. The U.S. government is offering a $100,000 reward for information leading to his arrest and conviction. Razmilovic is among "the most wanted" by the U.S. Postal Inspection Service, which posted a reward notice for the 62-year-old former exec yesterday on its Web site. • Former HealthSouth CEO indicted • Scrushy pleads not guilty to all 85 counts in connection with alleged $2.7B corporate fraud scheme. • November 4, 2003 - Former HealthSouth CEO Richard Scrushy was indicted Tuesday on 85 criminal counts stemming from a $2.7 billion accounting fraud at the physical rehabilitation company.

5. When it REALLY backfires • PRESS RELEASE • The Royal Dutch/Shell Group of Companies (Shell) today [29/07/2004] announced that it has reached agreements in principle with the United Kingdom’s Financial Services Authority (FSA) and the staff of the United States Securities and Exchange Commission (SEC) to resolve their pending inquiries related to Shell’s reserves recategorization. • In connection with the agreement in principle with the FSA, Shell will agree, without admitting or denying the FSA’s findings or conclusions, to the entry of a Final Notice by the FSA finding that Shell breached market abuse provisions of the UK’s Financial Services and Markets Act 2000 and the Listing Rules made under it.  In connection with the proposed settlement, Shell will pay a penalty of $17 million. • In connection with the agreement in principle with the SEC staff, Shell will consent, without admitting or denying the SEC’s findings or conclusions, to an administrative order finding that Shell violated, and requiring Shell to cease and desist from future violations of, the antifraud, reporting, recordkeeping and internal control provisions of the US Federal securities laws and related SEC rules.  In connection with the proposed settlement, Shell will pay a $120 million civil penalty and has undertaken to spend an additional $5 million developing a comprehensive internal compliance program.  The agreement in principle with the SEC staff is subject to final approval by the SEC. No further details respecting the proposed settlements will be released at this time.

6. And some use process as competitive edge • Vision & Values Customer satisfaction and constant innovation in products and services are the core values of our day-to-day work. • Dynamism: Initiative and agility to discover and make the most of business opportunities before our competitors do and agility to adapt to market changes. • Strength: Through the solidity of our balance sheet and prudence in risk management, which are the best guarantees of our capacity for growth and for generating value for our shareholders in the long term. • Innovation: Constant search for products and services to meet the new needs of customers and which enable us to obtain higher profitability increases than our competitors. • Leadership: Spirit of leadership in every market where we operate, with the best teams and a constant orientation towards customers and results.

7. The Last 25 years in Business Process 1980s Early 90s Late 90s 2000+ Execution Integration End-to-End Modeling • Focus on data accessibility • Quick Realization of Process Benefits Thru Visualization • Greater division of labour • Full managerial control of the workplace • Focus on automation/ decisions • Collaborative workflow within applications • Software and systems implemented Focus on broader access Enterprise Application Integration Accelerate Business Velocity and Leverage Time As a Competitive Advantage While Lowering Infrastructure Focus on business process Web services Service Oriented Architectures • Different data formats and applications • Multiple component models that don’t interoperate • Different network protocols • Difficult and expensive problems with software version control and upgrade management • Numerous independent system resources • Few front office applications integrated to back office • No Execution • No Measurement of Process Performance

8. What the Analysts are saying • It’s no surprise then that BPM is quickly emerging as the moniker for the next Killer App in enterprise software. Few areas of software will receive more attention in the coming months and years than BPM. Yet the greatest challenges to the BPM market are the very forces making it so attractive. Firms will need process integration servers that model and carry out broad business processes. … The adoption of packaged apps and the development of integration standards like Web Services, has primed the market for a new breed of BPM suites. Firms should start BPM projects today to design, execute, and optimize cross-function business processes.

9. What the Analysts are saying • Business Process Management (BPM) software brings together people, data and enterprise applications in efficient, adaptable and automated processes. • By 2005, at least 90% of large enterprises will have BPM…” • BPM software…”It represents the next level of business integration.”

10. The Emperor’s New Clothes ERP CRM EAI SCM Workflow Packaged Vertical Applications DB Vendors

11. An Organization’s Processeswhere does BPM fit? Enterprise BPM Packaged Apps Generic processes BPM Unique processes BPI EAI

12. Business Process Management fills the process gaps Enterprise BPM Layer Enterprise BPM Innovation Xcelerator Operations Back Office Finance Sales Marketing Customers & Clients Suppliers & Partners Presentation (eg. Web, Portal, PDA, paper) Integration Xcelerator ERP Back Office Branch Office Legacy Oracle SQL DB2 Warehouse

13. Why bother? What’s the payback? Money (More) Effectiveness (Better) Risk (Reduced) Agility (More)

14. Why bother? What’s the payback? Means $ off costs or onto revenue Process Efficiency Process Effectiveness Means greater customer responsiveness Process Control Means reduced business risk Process Agility Means staying/becoming competitive

15. How Do/Should we Measure? Customer Responsiveness Throughput/ Speed Individual Risk Impact on Quality Upstream/ Downstream Visibility Utilization/ Capacity Organizational Risk Maintenance Costs Speed to Change & Execute Yield/Quality Financial Risk Duplication errors Process Efficiency Process Effectiveness Process Control Process Agility

16. What WE mean by EnterpriseBPM

17. Step 1. Understand Business Process Optimization Process Modeler Business Process Monitoring Business Process Analysis Resource Modeler Process Simulator

18. Step 2. Implement LINKS COMMAREA All Data Types Supported Any CICSCA program PM4CICS FEPI LINK 3270 LUO/LU23270/BMS SOAP / XML or WMQ / HTTP Interface Meta Data Repository Interface Drivers / Adapters IMS CICS TPF LU 6.2APPC IMS CICS TPF Process Coordinator VSAM CICS IO KSDS ESDS RRDS and AIX Existing MQ CICS TS TDQ Dynamic XMLTranslation SQL DB2 DB2 StoredProcedures DLI PM4CICS IMS Process Execution Manager (PEM) Process Integration Business Process Execution Business Process Integration

19. Step 3. Improve Process Monitor Business Process Simulation Business Process Modeling Business Dashboard

20. What WE mean by EnterpriseBPM Business Dashboard Process Monitor Business Process Optimization Business Process Execution Business Process Monitoring Business Process Integration Business Process Analysis Business Process Simulation Process Modeler Resource Modeler Business Process Modeling Process Automation Modeler PM4CICS PM4OS/LSPM4Data Process Execution Manager

21. Summary • BPM helps organizations improve their most complex & unique business processes • and provide the proven business integration hooks into ‘generic’ process areas • Providing a framework for continuous process improvement • with up-front, measurable, cost/benefit analysis/simulation BEFORE implementation • Bringing process improvements in 4 areas • Efficiencies • Business Integration • Control, which reduces process risk • Business agility

22. Better processes win every time