Event Processing in Enterprise Operations
By perren.walker on Nov 10, 2008
The article "Returns on Event Processing" focuses on identifying and capturing returns within an enterprise. Paradoxically, event processing (EP) systems can't perform those functions by themselves, but rather EP sits in the center of the value identify-capture process. Let's define value-capture as minimizing or avoiding a cost incurrence or capturing a profitable sale. In addition, there is both a first-mile and a last-mile in a successful event-processing implementation and Business Intelligence (BI), Business Activity Monitoring (BAM), and Business Process Management (BPM) play important roles. This article examines event processing in enterprise operations and how BI, BAM, and BPM complement event processing in achieving returns.
Event Processing and Business Intelligence (BI)
The event processor identifies value among the events it is processing; the event processor does not determine value. The intrinsic determination of value is made within your organization or perhaps by a marketplace outside your organization. Business intelligence analytics functions in first-mile in event processing by unearthing opportunities in supply chain, Financial, customer, HR workforce, or your IT/Organization. It is your determination of value, translated into Expression Query Language (EQL), Continuous Query Language (CQL) that enables opportunity identification. The event processor continuously looks for those opportunities and when an identification is made, then the last-mile of value-capture can take place.
Event Processing and Business Process Management (BPM)
Business Process Management (BPM) is one example of "last-mile value-capture." Opportunities identified by the event processor can kick off a human centric workflow involving decisions and action that results in value-capture. For example, your event processor might identify that a weather pattern is going to delay the arrival of material to a key customer. Both an automated alert can be sent to the account representative, in addition to starting a human process to assess and escalate problem to upper management. A decision can be make to re-route shipment or manage the customer's expectations.
Event Processing and Business Activity Monitoring (BAM)
Business Activity Monitoring (BAM) is also a component of "last-mile value-capture," as BAM processes and presents data as it occurs within the enterprise. There is value in visualizing and analyzing the information but it is the decisions derived from BAM analysis that result in financial impact. For example in the last week of a financial quarter, a competitor's price drop may take away sales resulting in top line miss for your organization. BAM's ability to present declining revenue, as it is occurring, is critical to identifying and quickly responding to the trend in order to make your numbers. Business Intelligence reports generated daily or weekly may not be timely enough to make the necessary business adjustments.
Event Processing as an Operational Tool
Event processing sits in the center of the process improvement analyze, act, measure life cycle. Event processing takes on an operational role looking for both large and small opportunities on a 24/7 basis. Returns on event processing are achieved when the event processor "acts" upon an identified opportunity.
Furthermore BI, BAM, and BPM are complementary technologies. Business Intelligence (BI) and Business Activity Monitoring (BAM) play important roles analyzing, measuring, and reporting. Event Processing (EP) and Business Process Management (BPM) complement each other in their ability to act. That action will hopefully improve business results that are then analyzed, measured, and reported. In short, event processing is a very powerful operational tool that can directly impact customer satisfaction, margin and revenues.