Bag Big Benefits with BPM
Blog: Jim Sinur
The problem with process efforts leveraging BPM these days is that it doesn’t get respect until organizations want big returns on investment (ROI). When the economy looks difficult, organizations run to head count adjustments and cutting travel first. The very next move almost always includes process improvement driven by BPM. As soon as the storm passes, organizations forget about BPM and move onto something more flashy. Smart organizations have figured out that BPM not only delivers consistent ROI results, but BPM/Case is the hidden driver inside of the digital movement. It is not likely that organizations will back away from the digital movement in a challenging economy. BPM delivers solid ROI at a minimum and amazing ROI along with digital progress. This should be the time to invest heavily in BPM because of it’s scope of impact and give it the respect it deserves despite it’s lack of flashiness.
BPM Delivers Consistent ROI:
In study after study over the last 15 years, BPM has shown to deliver great ROI performance and in most cases it delivers higher than the investment hurdle rate. A low rate of return for BPM is over 15%, but the high end can be spectacular. This is really hard to ignore, but it requires an up-front investment that delays immediate cash flow. This is somewhat compensated by the fact that BPM delivers faster than normal results, so the cash flow delay can be minimized. BPM leverages iterative fast development leveraging the latest project development methods, model driven and incremental composition code approaches. Now that BPM incorporates Case and Knowledge Management for emergent and undefined processes, the benefit pool has been expanded.
BPM Has the Potential for Spectacular ROI:
Every BPM vendor can give you case studies that have hard benefit ROI results that are over 100% While there is no guarantee of triple digit ROI results, there are many examples available. This does not factor in the intangible benefits of customer, employee and business partner satisfaction. It also does not factor the advantage of an organization that is built for change. BPM is highly adaptable and benefits can be kept from eroding over time by making key adjustments, even in flight.
BPM Delivers Digital Business:
BPM is business code that can handle a continuum of processes and cases, from the static process to the highly adapting process that revolves around case work. It can handle variable timing from nanosecond response when linked to the internet of things (IoT) to the overnight processes of legacy and purchased applications simultaneously. As pieces of process (snippets) are performed locally and managed globally, like in an IoT enabled process, BPM will play a bigger role.
Net; Net:
It’s amazing that BPM is not on fire with the proven and potential benefits that it delivers. I guess you can say the BPM is the Rodney Dangerfield of methods, techniques and tools. It just doesn’t make sense that organizations are not leveraging the big benefits that BPM delivers. When will the world wake up?
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