BPM Group Assignment #07

Study of Business Process Management Suites

Group No. - 18

MBA-IT 2015-17
KUSUMANJALI SRIVASTAVA

15030141040

YOGESH KHETAN

15030141062

NILESH PATIL

15030141107

GANESH SWAMI

15030141089

SRASHTI RANE

15030141125

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1.Study Gartners Magic Quadrant for iBPMS (Intelligent BPMS):

a.Indicate what requirements are critical for a BPMS to be in
the Magic Quadrant and give your critique of the parameters
used for selection.
Business managers and knowledge workers today face a key challenge:
They are being asked to make faster and better decisions and to "do more
with less" in an ever-changing business context, but cannot do so without
improved visibility into their operations and environments. To meet this
challenge, leading organizations are seeking to make their business
operations more intelligent by integrating analytics into their processes and
the applications that enable them. Gartner has identified this trend as a new
usage scenario for a business process management suite (BPMS) a
scenario that Gartner calls "intelligent business operations".
To meet the needs for IBO, a BPMS must be enhanced with new
capabilities. Accordingly, Gartner has evolved its definition of the business
process management (BPM) market to reflect the IBO usage scenario and
to introduce the next generation of BPMSs, which we identify as intelligent
business process management suites (iBPMSs).
GARTNERS Magic Quadrant Criteria:
Gartner rates vendor/product on two criteria
Completeness of vision: Reflects the vendor innovation, whether
the vendor follows or drives the market, and whether the vendor's
view of how the market will develop matches Gartner's
perspective.
Ability to execute: Summarize factors as the vendors financial
stability, market responsiveness, product development, sales
channels and customer base
GARTNERS Four Quadrant:
1. Leaders are said to score higher on both criteria: the ability to
execute and completeness of vision. These are said to be typically
larger, mature businesses.
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2. Challengers are said to score higher on the ability to execute and

lower on the completeness of vision. Typically, larger, settled
businesses with what Gartner claims to be minimal future plans for
that industry.
3. Visionaries are said to score lower on the ability to execute and
higher on the completeness of vision. Typically, smaller
companies.
4. Niche players are said to score lower on both criteria: the ability to
execute and completeness of vision. Typically, new additions to the
Magic Quadrant.

Intelligent BPMS (iBPMS) :

Today, companies of all types want faster and better insight into their
operations. This growing demand for operational intelligence has given
rise to a new, "smarter" variety of business process management suites
(BPMSs) termed as iBPMS.
An intelligent BPM suite provides the
more intelligent business operations,
extensive complex event processing
monitoring (BAM) technologies and
collaborative capabilities.

functionality needed to support

including real-time analytics,
(CEP), and business activity
enhanced mobile, social and

An iBPMS has all of the following elements :

A process orchestration engine to drive the progression of work in
structured and unstructured processes or cases
A model-driven composition environment for designing processes
and their supporting activities and process artifacts
Content interaction management to support the progression of
work, especially cases, based on changes in the content itself (such
as documents, images and audio)
Human interaction management to enable people to naturally
interact with the processes they are involved in
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 Connectivity to link processes to the resources they control, such as

people, systems, data, event streams, goals and key performance
indicators (KPIs)
Active analytics (sometimes called continuous intelligence) for
monitoring activity progress, and analyzing activities and changes
in and around processes
On-demand analytics to provide decision support or decision
automation using predictive analytics or optimization technology
Business rule management to guide and implement process agility
and ensure compliance
Management and administration to monitor and adjust the technical
aspects of the iBPMS
A process component registry/repository for process component
leverage and reuse

iBPMS Vendors Come From Two Main Sources There are two distinct
sources of vendors for the iBPMS market:
The first group includes the innovators that were fast-acting pioneers in
adding intelligence to the BPMS, yielding an iBPMS. These players are
often referred to as pure-play vendors. They generally offer significant
features that enable clients to quickly deliver intelligent process solutions.
See "Case Study: Learn Some Lessons from TXU Energy's Operational
Intelligence System" for an example of an intelligent process. Their
products are, in general, easy to use and nicely integrated from a business
development and process composition perspective.
The pure-play vendors tend to offer better visibility and collaboration and
joined the social, mobile cloud bandwagon early in the emergence of IBO.
They are quick on their feet and are generally the first to deliver compelling
functionality. Their tight focus on the BPM software market enabled them
to see the benefits of adding additional real-time analytic capabilities to
BPM products before the larger vendors did, and their relatively small size
allowed them to get to market quickly.
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 The second group includes large, software infrastructure and middleware

providers, also known as "stack vendors," with products aimed at the
mainstream technology buyer. These providers generally serve a large base
of existing clients and are software generalists that offer many different
kinds of infrastructure software. BPM is just one of their concerns. They
generally have rich and deep systems or application features. Their aim is to
offer an array of products to their large client bases. They plan to be around
for a long time and seek to handle large-scope processes, which are likely
to include some deep system uses. In general, they are established,
financially stable, and good at integration and complex system capabilities.
They tend to be fast followers with deep pockets, and often break the lead
that innovators have by buying innovators and integrating them into their
offerings.
The level and speed of integration of such innovators' functionality vary by
vendor. The following vendors are primarily seen as stack vendors because
of their origins in the application development and application integration/
middleware markets: Cordys, IBM, Oracle, Software AG and Tibco
Software. It is important for organizations to determine whether they need
offerings from one of these vendor camps or the other, or both, depending
on the projects that are seen on the horizon. In general, pure-play vendors
are good at innovative and tightly scoped processes, but there are
exceptions. Pure-play vendors also tend to provide greater business role
empowerment, letting business users undertake some elements of process
governance. In general, the broader the process scope is, the more
appealing the stack vendors tend to be because of the need to cross
applications, data sources and localized processes. Over time, this
distinction and overlap may decrease to some extent, but it is a clear
distinction in the iBPMS market today.

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b. Does the Magic Quadrant apply to a product or the company which

has the IPR for the product?
Magi c Quadrant is applying to the company which has the IPR for the
product and not apply to a product. Because Intellectual Property Rights
(IPR) include patents, copyright, industrial design rights, trademarks, plant
variety rights, trade dress, and in some jurisdictions trade secrets. There are
also more specialized or derived varieties of sui generis exclusive rights,
such as circuit design rights and supplementary protection certificates for
pharmaceutical products (after expiry of a patent protecting them)
and database rights.
Gartner Magic Quadrants is a research methodology and visualization tool
for monitoring and evaluating the progress and positions of companies in a
specific, technology-based market.
Magic Quadrants research reports can be highly useful tools for investors
looking to find a company that fits their needs and businesses seeking to
compare competitors in their market and possibly gain the upper hand.
Instead of simply showing statistics or ranking companies in lists, Magic
Quadrants uses a two-dimensional matrix to illustrate the strengths and
differences between companies. The display divides competing businesses
into four distinct sections, based on both completeness of vision and ability
to execute it:
Niche Players: Scoring low in both completeness of vision and ability to
execute, these companies may do well in a segment of the market but
cannot outperform larger vendors. Usually focused on functionality or a
specific region, or are new businesses.
Visionaries: Have awareness of how the market will evolve and can
potentially be innovative, but may not be able to execute these visions.
Normal for businesses in early markets, but visionaries in more mature
markets are usually either smaller businesses trying to compete, or larger
businesses trying to escape a rut.

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Challengers: Have ability to execute, but may lack strong vision.

Challengers tend to be larger vendors in mature markets who do not want to
disrupt their current plan. They have the ability to become leaders if their
vision evolves.
Leaders: Scoring high on both completeness of vision and ability to
execute, leaders tend to be large companies in mature markets, have a large
customer base, and be highly visible in that market. Leaders have a large
amount of pull over a specific market, and even have the ability to effect
the markets overall direction.
While it may seem as though the companies in the leaders category are
always the best option, Gartner advises users to examine all quadrants,
since businesses in every category have their own unique strengths and
weaknesses that should be taken into consideration. It is also important to
note that Magic Quadrants is designed to help narrow down a vendor
search, not tell a customer what vendor they should choose.
Magic Quadrants can also be a useful instrument for vendors who wish to
analyze their competition. Magic Quadrants gives synopses of a markets
top businesses, displaying their strengths and weaknesses. Competing
companies can then use that information to improve their own business
where others are weak, giving them an advantage in the market.

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2. Explain how a BPMS is different from an ERP (out of the box)

software package. What selection criteria would you apply for
selection of an ERP package as against those for a BPMS? How
would the total lifecycle (from building a business case to selection to
going live) be different with an ERP package versus with a BPMS?

The difference between Business Process Management (BPM) and

Enterprise Resource Planning (ERP) can be quite fuzzy.
BPM is a practice while ERP is one of the many technologies that can
support that practice. BPM can be achieved with or without technology
though having a Business Process Management System (BPMS) and/or an
ERP can enhance your ability to do BPM.ERP, on the other hand, can only
be achieved with technology (and some process re-engineering, no matter
how minimal).
The principle behind this is simple: Integration of information across
business functions. With ERP, the organization has access to a single source
of data by implementing and linking modules that cater to different
organizational functions. Eg HR, Procurement and so on. Some Enterprise
applications may have in-built BPM functionality, but their reach does not
typically extend beyond the application.
If you choose to implement BPM with technology, youll be looking at
technologies that form the BPMS Architecture: Design & Simulation tools,
Process Registry, Rules Engine, Integration Services, Data Repository, and
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Monitoring Services. You may deploy all or some of these components as

part of your BPMS Architecture, but youre not likely to get them all from
the same vendor
Unlike the ERP Software that may come integrated, the components of
the BPMS Architecture are not commonly available as an integrated whole.
BPMS adopts a process-centric approach while ERP focuses on
organizational functions. They both, however, have elements of process
definition and integration.
BPMS at its core focuses on optimizing the efficiency of existing business
processes; monitoring process effectiveness, process modelling and
simulations. It can thus, be described as a process-intelligent layer that may
or may not be integrated with an organizations ERP.
Most ERPs come with inbuilt process functionalities, which you may
decide to adopt, customize or configure to suit your operations. if youre
looking for the flexibility that comes with changing processes, flexible
business rules management, process modelling, designing, executing and
monitoring your business processes for continuous improvement, BPMS is
the way to go. You wont be stuck with one version of the process and you
can dynamically decide which process versions to map to which system
users.

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Though both technologies can exist independently, a combination of the

two or a combination of their components, may serve you well until both
technologies are available as one in the market.

Selection criteria for selection of an ERP package as against those for a

BPMS
Structured approach
The first step in selection of a new system is to adopt a structured approach
to the process. The set of practices are presented to all the stakeholders
within the enterprise before the system selection process begins. Everyone
needs to understand the method of gathering requirements; invitation to
tender; how potential vendors will be selected; the format of
demonstrations and the process for selecting the vendor. Thus, each
stakeholder is aware that the decision will be made on an objective and
collective basis and this will always lead to a high level of co-operation
within the process.
Focused demonstrations
Demonstrations by potential vendors must be relevant to the business.
However, it is important to understand that there is considerable amount of
preparation required by vendors to perform demonstrations that are specific
to a business. Therefore it is imperative that vendors are treated equally in
requests for demonstrations and it is incumbent on the company [and the
objective consultant assisting the company in the selection process] to
identify sufficient demonstrations that will allow a proper decision to be
made but will also ensure that vendors do not opt out of the selection
process due to the extent of preparation required.
Objective decision process
"Choosing which ERP to use is a complex decision that has significant
economic consequences, thus it requires a multi-criterion approach."There
are two key points to note when the major decision makers are agreeing on
selection criteria that will be used in evaluating potential vendors. Firstly,
the criteria and the scoring system must be agreed in advance prior to
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viewing any potential systems. The criteria must be wide-ranging and

decided upon by as many objective people as possible within and external
to the enterprise. In no circumstance should people with affiliations to one
or more systems be allowed to advise in this regard.
Full involvement by all personnel
The decision on the system must be made by all stakeholders within the
enterprise. "It requires top management leadership and participation it
involves virtually every department within the company". Representatives
of all users should:

Be involved in the project initiation phase where the decision making

process is agreed;
Assist in the gathering of requirements;
Attend the Vendor Demonstrations;

Have a significant participation in the short-listing and final selection

of a vendor.

The total lifecycle (from building a business case to selection to going

live) be different with an ERP package versus with a BPMS.
ERP systems offer great benefits in being able to integrate disparate
systems and applications, insight and visibility into the ERP processes is
limited. Moreover, in todays market and economy, it is vital to be able to
move quickly when deciding to automate new systems for various reasons
(cost, resources, competitive advantage, etc.). A Business Process
Management Software Suite provides strengths in four main areas
regarding business processes:

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Process Modeling
Automation
Management
Process Optimization

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An advantage that ERP systems offer is that they effectively handle Process
Automation and Management, but do not require the intense coding
resources and long project plans that many BPM software systems do. A
BPMS like the Ultimus Suite not only provides workflow automation
capabilities, but offers the ability to automate and manage business
processes with little to no coding needed.
Moreover, BPM software has the ability to provide process analytics
BEFORE AND AFTER the business process goes live, a true differentiator
from ERP. Having the ability to take a step back from the day to day of
your business and analyze your business processes for bottlenecks,
inefficiencies, and cost control will enable you to ensure your process
automation efforts provide you the return on investment (ROI) your
company executives are demanding. The fact that ERP packaged systems
do not require development or long-term resources to carry out a project, as
they are based on best practices and allow some level of parameterization,
could be an argument used in favor of BPM. This argument is hardly valid
for those BPM technologies that still require extensive programming
efforts, as currently technologies such as Aura Portal enable the automation
of business processes without any programming. Any workflow execution
code is automatically generated by the BPM engine based on the process
model. Another important factor in favor of BPM is its ability to provide
analysis before and after running processes because of its analytical and
simulation capabilities, promoting the ability to step back into the day-today business and analyze problems and inefficiencies, which culminates in
the actual conduct of research and an expected ROI of that type of IT
initiative.
Difference between BPMS and ERP
BPMS
Focused on a process-oriented organizational structure.
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 It covers every business process across the organization, in addition to

ready-to-use process patterns, both functional and organizational.
It automates business processes that are interconnected and defined
from end to end (cross-functional).
Characterized by agility and flexibility, with 100% adherence to the
business reality of the time.
The basic components are: modeling and simulation tools, web forms
editor, process and/or independent business rules system, integration
tools, collaboration portals generator, a workflow manager (BPMS
Engine), Content Management, Online Commerce, among others.
ERP
Oriented to functional organizational structures
Some workflows are absorbed in the application at a functional level.
It automates highly structured and predictable transactions and
integrates business-specific functionalities.
It is more inflexible, it does not allow changes in the business logic
without going through the traditional development.
Divided into basic modules: Accounting/Finance, Commercial
Management, Planning/Production Management, Stock Management,
among others.

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