What is the value of the BPM business?

The value of BPM flows directly from the fact that business processes are always at the forefront and center of everyone's thinking. Focusing on a business process model helps overcome the risk of getting lost in the details of technology implementation.

To create value, it is not necessary for BPM to be implemented in every process. Organizational programs work well by automating many stable processes. Interactive technologies will always be needed to handle unexpected issues. BPM shines when it is used for processes that are structured and generate high value.

If we look at automatable processes within a company (which, as previously mentioned, include about 20 percent of all processes), they are generally divided into two groups. About 80 percent of automatable processes are standard activities that do not create a competitive advantage. Technology visionary Jeffrey Moore in his book, "Living on the Edge", calls these activities contextual processes because they are necessary but do not make a difference in a business. These processes, which are common in many businesses, are typically implemented in organizational programs.

The remaining 20 percent of automatable activities are unique to a company's performance. Moore calls these core activities because they represent the source of the company's unique value. Often, these unique processes are key to winning in the market. By understanding and automating this set of processes, companies can differentiate themselves from their competitors.

The outlook of BPM in value pursuit is not for itself. At every level of use, BPM must maintain its value by providing tangible business benefits. As long as these benefits differ in value, BPM is sufficiently recognized. Now, various patterns have emerged, and we can confidently predict that companies will experience some of the following benefits.

Increasing transparency. Management knows what everyone is doing and how they should do it. As more and more criteria are added to the process, real-time business operations will become clearer.

Enhancing traceability. With operational processes, it is possible to understand what has happened and what is happening. This can be a significant help in identifying or analyzing problems and also in making it easier to meet required compliance.

Improving responsiveness and flexibility. In a process-oriented company, change can be implemented more quickly and accurately because it is documented and understood. Designing a state starts from a clear foundation. Moreover, well-defined business processes, simulation of workflow, and simplified process design make it easier to identify issues early.

Continuous business optimization. When BPM implementation in a company matures, everything needs to understand where the performance is happening. When a challenge arises, instead of just focusing on cost reduction, a more complex view of performance improvement becomes possible. Core value-adding processes can be simply defined and optimized, and innovation efforts can focus on areas with the highest potential impact.

Enhancing strategic positioning. Since most company activities are consciously designed and carefully measured, it becomes possible to create adjustments to set clear and explicit goals for individuals at all levels. If necessary, processes can be redesigned, but most likely, performance goals can translate strategy into individual objectives.

Improving business and IT positioning. Since business process modeling provides a language that can be used to describe business processes at any level and in a way that is understandable to both businesses and IT experts, the connection between what needs to be done and the technology that will do it becomes stronger. Implementation issues arising are addressed through input from both business and IT, via designing an ideal business process aligned with what might be feasible to implement.

Rapid risk identification. The business process model has become more predictable, and the key interface between inputs and outputs has been identified; potential problems can be halted in a timely manner and plans can be made for re-engineering.

Enhancing business ownership or depriving businesses. A BPM outlook provides a clearer understanding of operations and integration points with new ownership and a clearer approach and roadmap for integration. The same applies to overlooking operations.

Clear visibility of core and contextual activities. When BPM increases understanding of how value is created, dividing processes into those that are vital to the company’s mission and those that support the framework becomes easier. Many companies outsource contextual activities to improve focus and return on investment. BPM makes it easier to identify and outsource contextual processes.

Improving outsourced relationship management. A mature BPM approach makes defining outsourcing processes clearer. Inputs, quality criteria for processes, metrics for monitoring ongoing processes, and outputs for key processes are part of BPM implementation. When the time comes to outsource a process, much information about the process—including the knowledge needed to define and execute it, SLA negotiations, and categorization—is provided.

Creating the most standardized organizational software program. BPM uses SOA to bring data and capabilities of existing enterprise software into processes across the organization. This enhances the value of investing in these applications.

Of course, all these benefits do not appear overnight. They must be pursued persistently. But since BPM provides a foundational environment, the advantages gained will not be easily lost.