Drivers for BPM - Few Writing on the walls

In late 2000, Gartner predicted that business process management (BPM) would become the next big phenomenon. The "thought leadership" expressed then has been reflected in the current popularity of business modeling.

We have seen demand grow from 15 percent of our client base (which primarily involved businesses with planning cultures) to more than 35 percent of our client base across all businesses, regardless of their cultural tendencies.

1. Build New Process for New products but Preserve the Business model
BPR geeks have dismaneled the process in the quest of operational efficiency, cost effectiveness... Business came up with new products and services due to new mode of trades and delivery modes like Internet, Mobile Commerce, Workflow, Document Management, XML ....Again New Processes and change managements.

Why few IT Managers are crying that, they don't see BPM appriciate it's investment ?

Successful businesses have not changed their business model and thus gained from new technology by changing the process not the customer benefit. Some enriched the experience and some failed to do anything but annoy the customers with their new ineffcient processes and product/services.

2. Process followed the business
Business underwent strategic changes like Merger and Acquition, BPO, Innovation... process across two different organisation requied to be integrated and streamlined. Few cases like Compaq HP merger has shown that, organisation is not able to fully leverage their competitative edge after such strategic changes.

Process were treated like Centralised Knowledge Entity and looked upon under lens of aging, change history, customer orientation etc. Process were changed several times and significance of defined and assigned to it. It's like chemical reaction on Golden metal plate and entropy of metal is calculated after each exposure. Process are also needed to be treated once it looses it's basic characterstics or value and evolve new process.

3. Age of TEchnology and ORganisation learning:
Each of us would have rid on hype wave. It can be technology, process or innovative way of use. In order to fit the technology, organisations changed themselves (E.g. typical ERP implementation in XYZ Industry/sector). few wanted to convenience and felt pressure from board/investors about org.(and IT Managers) capability to implement ERP solution in org. and they Changed themself to adopt the IT solution.

Few went otherway round and I feel they were smarter, They felt they have efficient and effective process ( Some deed process evaluation) and customised the product for MATCH MAKING but again it was also tainted sometime for making their board/invesor's (or their biz. partners) feel happy.

BPM is still going to remain the major force as more and more such changes are ineviatable in present trough of economic cycle.

Above were drivers from Human and ORganisation strategy and operational aspect as well as touch upon the market place.

Few other drivers are due to the perceived advantages of BPM.

1. Automate...More.. and Connect More ...
STP (Straight Through Processing) and SCM (Supply chain Management) is the main driver for biz. to look at changing the way they do their business with their suppliers, distributors, Creditors (Banks and FIs) etc...

Each business manager is looking under the magnifiying lens such business interactions happening either human to human as well System to System. Collobrating and influncing their partners for SCM and STP to create new or enhanced business value.They get faciliteted by simulated process using BPA tools to testigy and justify their strategies and decisions.

2. Milk the Networked Business
Once you are on the go of BPM... business manager start using few jargons in their corporate presentation to board/investors/partnes ..."optimized cost, time to market, resource loading, risk indetification and management, quality optimsiation (SIX SIGMA Jargons) through the use of models for initial design and ongoing improvements.

But, it is sure that, business using BPM effective and efficienctly has seen by numbers that they are milking the market place.

3. Create newer market place or market conditions.
Few corporates are able to realise their process model strength explore weakness of either competitors or peer level corporates in other market place. Few of the business users are able to apply their process capabilities to unknown territory.

They simulate and anticipate opportunities as well as threats usig such simulations. One of the example I remember is a financial institute able to manage account receivable for Telecom giant. It has better process of rating customers from it's past credit record to provide additional talk time or request for offering credit against their account balance as additional talk time. IT resulted in increase in revenue for Telecom. Bank is able to get integrated view of such customers for their demography and spend pattern to device new products.

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