Contributed on April 8, 2015

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Schrodinger’s BPM

Description

Is Business Process Management (BPM) Dead, or alive?
Is this the end for BPM? And more fundamentally, is the idea of business transformation – on the back of which current BPM technology was really popularised – also ’dead’?
The market for technology that can help organisations co-ordinate their work and share knowledge is changing significantly, and what should today’s BPM technology vendors do?

This presentation was created for a conference called bpmNEXT – an annual event principally aimed at ’BPM market insiders’ (product vendors, integrators and consultants).

Transcript

Schrödinger’s BPM
Is it dead or alive?
bpmNEXT, March 30th 2015, Santa Barbara CA
Neil Ward-Dutton
Founder, Research Director
© MWD Advisors www.mwdadvisors.com 2
Let’s work through three questions…
 Is it the end of the line for BPM?
 Are we seeing the end of “transformation”?
 Where next?
© MWD Advisors www.mwdadvisors.com 3
BPM: Dead… or alive?
 ‘BPM’ disappearing from
vendor communications
 Market for BPM technology
platforms is growing only very
modestly (maybe 3% p.a.)
 Maintenance revenue starting
to dominate license revenue
 We’re getting plenty of
vendor selection enquiries!
 Increasing interest from
‘non-traditional’ sectors –
retail, hospitality,
travel/transport, local govt,
utilities, …
© MWD Advisors www.mwdadvisors.com 4
Actually, we’re in the middle of mainstream adoption
1990 2000 2010
t
New
adoption
Innovators Early majority Late majority Laggards
We are here
© MWD Advisors www.mwdadvisors.com 5
What we’re seeing
Matching work effectiveness
challenges to initiatives
Uptick in tech interest from
mainstream app dev community
Increased importance of tech
integration, use “in context”
Early adopters: maturing
initiatives
Capabilities of large CSIs are a
bigger part of the picture
What tech adopters tell us
they’re looking for
Domain-specific expertise
Peer success
Stakeholder education/ guidance
Cost-effective skills
Supporting disparate stakeholders
Governance, change management
Managing at scale
Standards support
Open source alternatives
Dev’t/ infrastructure integration
We are here
© MWD Advisors www.mwdadvisors.com 6
The BPMS: fundamentally, unlike most enterprise tech
Discovery
and
analysis
Monitoring
and
optimisation
Simulation
Deployment
and execution,
Integration
Rules
Design
Requirements
Architecture
Design
Development
Operation
Change management
Business intelligence
© MWD Advisors www.mwdadvisors.com 7
Reactions to novelty
“We tried BPM; it’s a
waste of time and
money”
“This is just another
attempt to get us to
buy an enterprise
platform we won’t use”
“I can use this to reinvent the
way we work”
“We need a new approach;
the old ones don’t deliver”
Requirement for culture change
too “expensive”
© MWD Advisors www.mwdadvisors.com 8
A tale of two organisations
 Large retail group
 Implemented platform to
manage delivery of
premium in-home customer
services
 Transition from store-based
service to omnichannel
 “Customer Project
Manager”
 Cloud-hosted
 Case management
 Large banking group
 Implemented platform to
address group of major
end-to-end operational
processes
 IT-led initiative
 Spent $millions
 Ran out of resources and
failed to architect properly
 Back to the drawing
board…
© MWD Advisors www.mwdadvisors.com 9
At the edge of diffusion: low-cost, low-challenge
propositions
 BPMS conservatives and
laggards are embracing new
platforms and strategies – cloud-
first, mobile-friendly, agile, low-
cost propositions
 “Lightweight” approaches that
deliver results with low
requirement for cultural change
“There was about a seventy year gap
between Ignaz Semmelweis
proving that hand washing in
hospitals saves lives [in the 1850s]
until the practice was widely
accepted. Even today, in many
hospitals less than half of the
health care practitioners follow the
right procedures for hand washing.”
– Tim Kastelle, University of Queensland
Business School
Operational Intelligence platforms
© MWD Advisors www.mwdadvisors.com 10
Taking a wider view of work co-ordination & improvement
Planning
Doing
Measuring /
improving
‘ClassicBPMS’
BPA
tools
Taskmgmt.
ESN/
collaboration
SaaS
orchestration
Project
mgmt
Project
mgmt
Low-codeplatforms
Operational Intelligence platforms
© MWD Advisors www.mwdadvisors.com 11
Interesting players worth watching
‘ClassicBPMS’
BPA
tools
Taskmgmt.
Low-codeplatforms
Project
mgmt
Project
mgmt
ESN/
collaboration
SaaS
orchestration
Planning
Doing
Measuring /
improving
© MWD Advisors www.mwdadvisors.com 12
The digital business era: new expectations, new threats
Multi-channel service,
instant information,
responsiveness,
transparency, …
Media, entertainment,
payments & banking, travel
& transport, hospitality,
telecoms, …
IP theft, human capital risk,
environmental risk,
business continuity,
product liability, credit risk,
ID theft, data breach, …
Sustainability,
transparency, probity, etc
Changingrisk
landscape
Newcustomer
expectations
Newdigital-native
competitors
Changingstakeholder
expectations
© MWD Advisors www.mwdadvisors.com 13
The Digital Enterprise emerges from Four Internets
Internet of
infrastructure,
products
Internet of
personal devices
Internet of
conversations
Connect to
customers,
markets
Build
products,
services
Run operations,
management
Internet of
applications,
platforms
© MWD Advisors www.mwdadvisors.com 14
“Think big, smart small, fail quickly, scale fast”
Internet of
infrastructure,
products
Internet of
personal devices
Internet of
conversations
Connect to
customers,
markets
Build
products,
services
Run operations,
management
Internet of
applications,
platforms
Instrumentation
of products,
services,
processes
Agility of
services,
processes,
business models
© MWD Advisors www.mwdadvisors.com 15
Focusing on Customer Experience excellence
Your
customer
Customer
Journey
stage 1
Customer
Journey
stage 2
Customer
Journey
stage 3
Customer
Journey
stage n
Customer
Journey
stage n+1
Gather intelligence through each
customer journey to make future
experiences more engaging Marketing
Sales
Operations
Service
© MWD Advisors www.mwdadvisors.com 16
Real customer experience excellence requires real business integration
Scope of customer experience concern
Depthofcustomerexperienceconcern
Knowing
Surfacing
Acting
Shaping
SalesMarketing Operations Service
A customer’s journey
© MWD Advisors www.mwdadvisors.com 17
So… is BPM dead or alive?
 It’s approaching sunset
on the day of the BPMS
 The concept of
enterprise-wide BPM is
viewed with extreme
scepticism
 Organisations are still
actively transforming
business processes
 Work co-ordination
technology is a massive
opportunity
© MWD Advisors www.mwdadvisors.com 18
My advice
1. DON’T fixate on Smart Process Applications
2. DON’T obsess over traditional competitors; look
at the wider work co-ordination landscape
3. DON’T fixate on ‘throwing more stuff into the
box’
4. DO find ways to enhance ‘Bring Your Own
Process’ tools with power of
auditability/measurement/governance
5. DO look at the implications of Digital strategies
and how they link to broader corporate
strategies, assets
6. DO enable clients to take portfolio management
approaches to business processes and digital
work co-ordination
7. DO partner / buy / build to hook into growing
segments
Neil Ward-Dutton, Founder and Research Director
@neilwd
neilwd@mwdadavisors.com
Image credits: [1], [3], [7], [9], [19] licensed from iStockPhoto. [18] http://www.quickmeme.com/meme/3utmn3
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