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 US 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.”

Regulatory compliance will be one of the areas the new BPM services practice will focus on. For example, in the US, 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.

Source:  Top-Consultant

IBM has reported a 2% rise in global services revenue for the third quarter, to $14.1 billion (£9 billion). Its global business services group – including consulting – grew 5% to reach revenue of $4.6 billion, with global technology services increasing revenue by 1% to $9.5 billion.

IBM also sustained its profitability in the services sector, with global business services increasing pre-tax profit by 5% and global technology services gaining 4%, for a total services pre-tax profit of $2.2 billion. The company’s estimated service backlog at the end of the quarter on 30 September was $134 billion, flat year on year. During the quarter, outsourcing signings fell 15% to $5.7 billion, with transaction signings up 4% at $5.4 billion.

Overall, IBM pushed its net profit up 12% to $3.6 billion, on turnover rising 3% to $24.3 billion. The company edged up its net margin by 1.1 points to 14.8%.

IBM chairman Sam Palmisano commented: “In the third quarter we grew revenue in our hardware, software and services businesses, expanded margins and again increased earnings per share at double digits. Looking ahead, we are uniquely positioned in the enterprise, investing in high-value segments like business analytics, advanced systems and smarter planet solutions.”

From a geographic perspective, the third quarter was not a success for IBM’s EMEA region, where revenue fell 6% to $7.4 billion. The Americas showed a revenue increase of 3% to $10.2 billion, while Asia-Pacific rose 14% to $5.9 billion.

Source:  MCN Direct

IBM has signed a three year agreement with McDonald’s to provide a new cashless payment solution for 1,300 McDonald’s owned and franchised restaurants across the UK and Ireland. IBM will help McDonald’s cater to the growing number of customers using credit and debit card payments by introducing an improved system that will be operational by the end of 2010.

With McDonald’s restaurants serving millions of customers every day, the IBM solution will allow McDonald’s to continue improving customer experience at the counter by increasing the speed, flexibility and security of service. McDonald’s existing strong levels of security will be enhanced even further with anti-tamper and fraud detection software installed on hand held chip and pin devices to help protect customer card payments. The solution will also help McDonald’s find smarter ways to run its day-to-day operations more efficiently by centralizing business processes onto one database enabling automated settlement and reporting. By installing these new processes, McDonald’s is also empowering its franchisees, the independent businessmen and women who own and operate the majority of McDonald’s restaurants, to view and query their own customer card data so any issues can be quickly resolved.

IBM will provide business and technology consulting services to integrate and maintain the payment solution which is being designed and built around the McDonald’s point of sale terminal. Following the launch of the new solution, IBM will host and support McDonald’s entire payment system in a secure UK data center. The solution will be based around IBM’s StorePay® and Sureswitch products to provide a complete payment service that extends from the hand held chip and pin device in the restaurant through to the back end processing on a pair of highly available IBM System p servers which are monitored and managed by IBM’s UK Infrastructure Management Center.

“With payment options becoming more numerous, British consumers now expect a truly flexible, secure and efficient service,” said Jonathan Glencross, Retail Client Executive, IBM UK&I. “The new IBM payment solution is an important part of McDonald’s commitment to customer service, which makes it the world’s most successful restaurant chain.”

The deal was signed in June 2010 and is part of a multi-phase project spread over three years to continue transforming McDonald’s payment systems.

Source:  Top-Consultant News

IBM has teamed up with Ireland’s Environmental Protection Agency (EPA) to provide smart water management across the country’s beaches and lakes, plus a portal that offers immediate information on water quality for the general public.

Working with An Taisce, the National Trust for Ireland, IBM and EPA are collecting and analysing environmental data from Ireland’s coastline and lakes on water quality, tides and weather forecasts. The information is being made available at online portal Splash. Prior to Splash, public reports on water samples and compliance with standards were not available until the year after samples were collected.

EPA director general Mary Kelly said: “Our collaboration with IBM and An Taisce is paving the way for smarter water quality management at our beaches and lakes. It is a good example of how smart green technologies can be deployed to provide easily accessible and useful information to the public. The Splash portal is just the beginning of what we hope to accomplish.”

Sharon Nunes, vice president of big green innovations at IBM, said: “By providing near real-time access to water conditions we are enabling environmental agencies and citizens to make smarter decisions about everything from how to handle changes in water quality to where to plan their next vacation.”

Source: MCN Direct Newswire