The Value of BPM

From an IBM Thought Leadership White Paper…

Better processes produce lower costs, higher revenues, motivated employees, and happier customers. The most dramatic examples of economic value driven by process improvement come from the companies that have led the adoption of the Six Sigma (and Lean Six Sigma) methodology—most notably General Electric (GE).

Of course, GE also made Business Process Management a core part of their corporate culture—from the CEO down. Most groups making the case for BPM cannot assume such commitment—at least not to begin with. Not a problem.  Even a basic investment in BPM can yield significant returns. Without any process redesign, Connecticut-based research firm Gartner indicates that companies can still expect to receive significant operational improvements for any given process.  Gartner claims that by simply “making the current state handoffs, timing and responsibilities explicit, productivity improvements of more than 12 percent are normally realized.  

However, we can already see that even a basic BPMS investment can drive significant value. In fact, the typical BPMS projects are driving more value—a lot more.  Even a few years ago, Gartner reported that 78 percent of BPM projects saw an internal rate of return (IRR) of greater than 15 percent.  Moreover, these projects typically deploy quickly (67 percent in less than six months, 50 percent in less than four months).  So companies have already been able to realize significant value with rapid returns by driving process improvement with BPM.

My Thoughts…

They state, ‘Better processes produce lower costs, higher revenues, motivated employees, and happier customers.’  This supports what I have been saying for years.  And they go on to state that even a basic investment in BPM can yield significant returns.

Even a basic BPMS investment can drive significant value.  Gartner says that a majority of BPM projects saw an internal rate of return greater than 15%.  This brings me back to last week’s blog – What are you waiting for?

GE is a good example of a company embracing business process management.  They are often cited for their Six Sigma efforts.  They appear to have decided to make business process management a core competency.  And, their success has been the subject of many stories.

We all want to run our company effectively and efficiently.  If we can make our ‘mission critical process’ more efficient and more effective, then we can expect lower costs, higher revenues, motivated employees and happier customers. 

Your Thoughts…

What is holding you back from implementing a BPM strategy at your company?

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