BPM INTRODUCTION BPM INTRODUCTION WHY BPM

BPM INTRODUCTION BPM INTRODUCTION WHY BPM

  • “BPM is going to be the dominant management discipline in the 21st Century and is already the way that leading companies manage their businesses as a management discipline.”
  • The convergence of BPM and the continually increasing capabilities of BPM software enable organizations to manage and execute change in an increasingly hypercompetitive environment – to adapt, thrive and survive.”

–Brett Champlin, CCP, CDMP, President – ABPMP

  • “Enterprises are seeking to transform themselves into customer-focused, process-centric organizations and consider this transformation critical to their business success.”
  • “A key part of that transformation is to reorganize information resources as substantially independent reusable services.”
  • “A service oriented architecture (SOA) embraces this concept of reusable services and represents the next major step in the evolution of IT strategies.”

–Tom Dwyer, V.P. Research, Brainstorm Group

–Mike Rosen, Editor SOA Magazine, Brainstorm Group

  • Market consolidation and technical convergence
  • 150 vendors providing small to large enterprise-class vendors with powerful solutions and modeling tools. Consolidation occurring to reduce that number to 25 for enterprise wide solutions.
  • Spanning multiple packages
  • BPM increasingly being used to manage processes that bridge multiple packaged applications.

What is Happening in BPM?

  • People process problems
  • Organizational challenges such as internal politics and change management outweigh technical challenges in deploying BPM.
  • Continuous process improvement is the key to fostering BPM as an imperative business strategy
  • BPM, Collaboration with Competitors
  • Companies are seeking ways to better support ad-hoc, collaboration

BPM today does not support this well enough, but BPM companies are moving towards this direction

  • BPM adoption mostly departmental
  • Some leading-edge companies are tackling enterprise-wide processes (more the exception than the rule).
  • 1200 companies surveyed – 18% currently employing enterprise wide BPM
  • 50% of surveyed group are focusing on departmental process problems
  • BPM rapid growth attributable to bringing business strategists and technologists together to solve process problems

What is BPM?

  • BPM goals are to efficiently align the organization with the customers’ wants and needs

BPM attempts to continuously improve processes – seeking process optimization by

–Defining

–Measuring

–Improving your process

  • “Executives need to organize and manage, not only the cost chain, but also everything else – including strategy and product planning – as one economic whole, regardless of the legal boundaries of individual companies.”
  • “This is a shift from cost-led pricing to pricing-led costing.”

Peter Drucker – Management Challenges of the 21st Century.

  • This change is from forecast-driven inventory style systems to responsive, flexible and demand-driven mass customization, globally
  • People
  • Customer facing staff are best suited to understand customer needs and must be empowered to make improvements.
  • Many improvements can be done without involving technology
  • Business –Technology Divide
  • Business processes are managed by business people.
  • Information moves between software packages with requires a service oriented architecture (SOA) often driven or governed by IT.
  • Modeling
  • Modeling a business process is a business domain
  • Perfecting a business process is a staff domain.
  • Business modeling is Business Process Management (BPM).
  • Business –Technology Connection
  • The size and complexity of tasks often requires the use of technology to model efficiently.
  • Business people, especially customer facing staff must control and do the modeling.
  • Bridging IT and Business
  • Bringing the power of technology to business staff and reducing their work should be the BPM group credo.
  • BPM is the bridge between Business and IT.
  • BPM systems will develop to be industry specific.

A cyclical BPM life-cycle exists:

–Design

–Modeling

–Execution

–Monitoring

–Optimization

 

BENEFIT OF BPM

Cost Reduction
Time optimization
Better service Efficiency
Productivity increase
standardization
Compliance
Business agility and flexibility
Faster integration
More precise information for decision taking
Quality improvement
Better financial control
Better profitability
Hierarchical levels reduction
Automation and Innovation
Personnel motivation
Sales increase
Market survival
Reduction of business losses