From an AIIM Industry Watch report…
BPM has an excellent track record of investment return largely achieved by changing and re-shaping business processes for higher performance.
Here are some of their key findings:
- 63% of responding organizations consider the importance of BPM to be significant or imperative.
- Hard-dollar savings from ‘improving process throughput’ and ‘reducing process steps’ are the two biggest drivers For BPM, followed by ‘improving accuracy and repeatability’.
- 49% of organizations achieved payback of their investment in BPM tools within 18 months and a further 23% within two years.
- Accounts payable and accounts receivable processes showed the strongest success factors, followed by customer support cases, proposals and contracts, and claims processing.
- The strongest indicator for successful BPM processes is the presence of an existing process owner.
A primary reason that companies won’t spend money on business process management solutions is that they think they will never recoup their outlay of cash. All of us that tout the benefits of BPM are not likely to change their mind. So, I like to share real experiences of those who have implemented BPM.
Often, when working up a return on investment, there are areas of ‘soft dollars’ that can be debated. Notice that – Hard-dollar savings from ‘improving process throughput’ and ‘reducing process steps’ are the two biggest drivers For BPM.
I have created many returns on investment analysis and I usually see paybacks of less than 18 months. So, it is great to see a large number of companies hitting that number.
It is interesting that ‘accounts payable and accounts receivable processes’ showed the strongest success factors. Although, I have said before that the most critical process of any company is their ‘quote to cash’ process.
And, let me add to the ‘presence of an existing process owner’ thought – these projects need a ‘champion’ and the process owner is the best candidate. The ‘champion’ will be selling the solution vision to the users and to management. Success is far more difficult without a ‘champion’ in place.
In this uncertain economy, not only does business process management look promising, but managing processes effectively may be the ticket to becoming a market leader.
Has your company begun to manage any of their business processes?
Keeping it Real!