What does Business Process Management deliver?
Cio Review
Business Process Management (BPM) is defined differently by many individuals. Each company participant has a unique view and concept of BPM that is impacted by his or her position.
FREMONT, CA: Business Process Management (BPM) enables firms to align business functions with customer requirements and assists leaders in determining how to deploy, monitor, and evaluate corporate resources. BPM has the potential to boost efficiency and production, reduce costs, and eliminate errors and risk, ultimately optimizing results when correctly implemented. Implementing BPM best practices leads to smart financial management and visibility into how effectively a firm is fulfilling its objectives.
Companies such as GE have proved that BPM can achieve double-digit gains in metrics such as margin, capacity, resource use, and capital utilization. Forrester's research with clients adopting BPM indicates that BPM initiatives yield productivity increases of 30 to 50 percent for processes requiring mostly back-office professionals and 15 to 30 percent for processes involving knowledge workers. According to a Gartner estimate based on a survey of their clients' BPM experiences, 80 percent of enterprise organizations executing BPM projects will see an internal return of more than 15 percent.
BPM is also a method for maximizing the value of existing investments, particularly IT investments. Businesses should investigate ways to boost their capacity to generate additional value from money invested in technology and systems. Currently, most IT funds are spent on "keeping the lights on"; in fact, 70 percent or more of present IT budgets are spent on maintaining and operating existing capability, while 30 percent or less of these budgets are spent on creating new business capabilities.
The business environment has become fiercely competitive for nearly all companies. For some enterprises, this is due to globalization, while for others, it is due to the fragility of their local market economies. In an uncertain economy, firms must battle harder than ever to maintain and expand their market share as entry barriers for competitors fall. To be competitive in today's climate, firms must discover ways to realize BPM's benefits. Otherwise, they risk, at best, missing out on earnings and, at worst, being overwhelmed by competitors.
Transformation and Innovation In today's hyper-intense environment, agility has become crucial, and BPM gives the means to achieve it. A BPM methodology will aid an organization in innovating and transforming its way to greater business value. In actuality, BPM is now a mission-critical business competency.
