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Business Process Management (BPM) adoption is increasing world-wide, because the technology provides
immediate ROI and enables competitiveness by delivering organizational agility. In fact, a recent study from
Gartner found that 78% of successful BPM projects delivered an internal rate of return greater than 15%, with
some returns as high as 100% or 360%. This paper discusses how BPM enables organizational agility and
delivers immediate ROI.
Business Agility is Difficult core business process works. The need is for
employees, who often operate in virtual, global teams
Competitive and growth pressure on business is to have a shared, explicit understanding of business
multiplied by shifting global economic scenarios. processes.
Organizations have to evolve to keep up, and rapid
change is the order of the day. Organizations need to BPM enables Organizational Agility and Makes
streamline business operations, keep costs low and Processes Explicit
also adapt to market realities while relying on
collaboration between globally distributed teams. Not BPM works by making processes shared and explicit.
only does organizational cultural need to be adapted, These processes can be accessed and viewed
but also management discipline needs to relearned, visually, typically in viewers similar to Microsoft Visio,
and most importantly, the technology used to with indicators for where the process is at. Everyone
automate core operations needs to become flexible. in the process is now aware of the process, and who
BPM is the technology platform for these goals, does what next.
enabling agility and ensuring consistency in
performance and reducing costs across the BPM technology provides the tools and infrastructure
enterprise. to define, simulate, analyze and to put into action,
these business process models, and all from a
Most Enterprise Systems are Inflexible and Lack business perspective. Such a platform also provides
Transparency techniques to make changes to the process on the fly,
in a simple visual manner. These changes are
Most businesses already use a whole host of software immediately reflected, and include updates to existing
systems to manage their core operations and achieve software systems (ERP, CRM, EDMS etc.)
their business goals. Examples are Enterprise Businesses can now truly adapt their processes to
Resource Planning (ERP), Supply Chain reflect market reality.
Management (SCM) and Customer Relationship
Management (CRM), which address the entire value Business organizations are using BPM for different
chain of an organization, from supplier to internal reasons and in different forms. BPM impacts the
process to customer. Such systems are also entire business ecosystem. Benefits are several and
complemented by tools like Electronic Document range from increased productivity and profits,
Management Systems (EDMS), Portals, Content reduced labour costs, shorter cycle times, improved
Management Systems and Productivity Tools. customer satisfaction and retention and the optimal
use of IT infrastructure.
The problem with current software systems in use is
almost all of them are modelled on ‘best practice’ set BPM can deliver Value in Different Industries
of processes that require the user to adapt their
business to match the software. Also, most enterprise BPM in a Business Process Outsourcing
solutions lack agility and are unable to change Organization (BPO)
business processes to match rapidly changing BPO organizations use BPM to enable their
business needs. customer’s core business processes. For an
outsourcing engagement, risks of failure are highest
User alternatives are expensive customization which at the beginning and at the end of a contract, given the
increases the Total Cost of Ownership (TCO) or complexity of changes and number of stakeholders
expensive and time-consuming custom, one-off involved. During these stages, the flexible nature of
solutions to address specific line of business the BPM technology provides the BPO with excellent
problems. options for continuously tweaking the outsourcing
process to reflect needs of the engagement. Using
The situation is compounded since most core BPM, the time to understand and start working on a
business processes are implicit and embedded in customer's need is dramatically shortened, and BPOs
these business systems. The business takes an are able to stay competitive by rapidly rolling out new
extreme risk by relying on the enterprise system to offerings regularly.
maintain a record, and often the only record, of how a
Skelta BPM - Human + System + Document Centric Processes
BPOs are using BPM to improve processes in areas exception scenarios and provide complete end-to-
such as Finance and Accounting (Procure to Pay, end visibility of the supply chain.
Order to Cash etc.), Procurement, HR Services
(Recruitment, Training & Development, Performance BPM in Financial Services
Management etc.), Legal Process Outsourcing, Financial services organizations contend with
Banking & Financial Services (Loan Origination, shrinking operating margins, growing competition,
Servicing, Collections, Customer Service etc.) increasing customer expectations and changing
Insurance (Claims Processing, Underwriting etc.), government regulation and scrutiny. Over the years
Telecom (Customer Relationship Management, businesses have evolved, from a brick and mortar
Fulfilment, Assurance & Billing etc.) and Health & Life system for delivery of services to a complex
Sciences (Claims Adjudication, Subrogation, distribution system that takes advantage of latest
Underwriting etc.). technology and communication mediums
BPM in Manufacturing To compete, financial services organizations need
The manufacturing industry is very process oriented efficient processes that seamlessly integrate with the
and relies heavily on an efficient and responsive company's specialized applications for core banking,
supply chain for business success. To compete, insurance and such services.
manufacturing companies need to track progress
across distributed stakeholders, and improve the The ability of BPM to maximize productivity, and
supply chain pipeline. Regular optimization of improve effectiveness is used in several ways to
processes has significant impact on the supply chain meet his need. For example, BPM is used to automate
by improving communication with suppliers and processes in areas like Cash Management, New
shortening manufacturing cycles. Account Initiation, Loan Application Processing &
Disbursal, Compliance, Risk Management. The
BPM works with existing investments in IT technology is used in different ways here, such as the
infrastructure to enable this optimization. For provision of self-service online options for customers,
example, the technology is used to reduce delays in the flexible routing of documents to staff, audit trails
material supply by automating updates to disparate for critical business operations, automated updates of
systems, to set up automatic escalations for disparate systems of record and integration of
unauthorized expenses, keep a fine audit trail of multiple customer channels.
activities, set-up flexible approval processes for
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