The Value of Business Process Management

I received a whitepaper from www.EvolvedTechnologist.com and in it they wrote…

Sometimes it sounds as if proponents of BPM are suggesting that every activity of a corporation should be described our automated using formal business process models [documented].  Even the most enthusiastic proponents do not suggest that adoption of BPM go this far.  Rather, the targets for BPM are the processes that are most important to creating value, those that will yield tremendous benefits if optimized, those that most need to rapidly change and evolve to keep pace with competitive markets.

They have listed what they believe is the business value of BPM and below is a partial list:

*       Increased transparency – Management knows what everyone is doing and how they should be doing it.

*       Increased traceability – It is possible to find out what happened and what is going to happen with respect to operational processes.

*       Improved responsiveness and flexibility – Change can be effected more rapidly and precisely because the as-is state is documented and understood.

*       Continuous business optimization – As BPM implementation matures at a company, everything needed to understand performance falls into place.

My Thoughts…

I concur with the above premise.  I see companies as a collection of processes and these processes fall into the 80/20 rule.  Managing the 20% of your processes [the processes that are most important to creating value] will get you the most [80%] benefit.  The difficult task is identifying those processes that make up that 20%.

Missing business values from the white paper…

*       Increased control over process cycle times – Using BPM [execution] software, companies are able to establish how long a process should take.  Making use of escalations and visibility into process status, they are able to make sure that a process is completed in a specified amount of time.

*       Decreased costs – Reduced costs will come from removing non-value added activities and adding efficiency to a process.

*       Increased revenue – Reducing costs and providing more goods/services with fewer people helps drive increased revenues.

*       Increased customer satisfaction – When we talk about creating value, isn’t it the customer that determines the value?  Processes that touch the customer should be given the highest priority.

Certainly in this economy, we are all interested in reducing costs and increasing revenues.  Improving interactions with your customers is a key ingredient to increasing revenues.  We refer to all 3 of these as the ‘Triple Crown’ of business and who wouldn’t like to win the ‘Triple Crown’ of business?

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