What does BPM offer its adopters?

12 Nov

In one of their blogs, roisg mentions that Palmer, 2011 views the impact of BPM as significant and quantifiable. From the research I have carried out I agree with Palmer and I will outline some of the benefits that BPM has to offer its adopters, namely decreased costs, increased revenues and agility and adaptability.

According to the website ‘BPM Basics’ which you can access here, in the short run, BPM helps companies to improve profitability by decreasing costs and increasing revenues.

Decreased Costs

The ‘BPM Basics’ website notes that Process management helps to optimize workflows and it reduces errors and minimises waste while in a 2009 paper titled “The BPM Buzz”, author Keith Inouye,  notes that Business IT costs are reduced on the development and maintenance of processes and systems.

Increased Revenue

BPM helps companies to increase their output, accelerate cycle time and increase speed to market for goods and services. (BPM Basics) Furthermore, according to Jim Sinur at Gartner Research, “Processes that help differentiate organizations in the way that they ‘treat their customers, result in more revenue gains.’ (His blog can be accessed here)

Agility & Adaptability

According to BM Basics, ’the real value BPM delivers is intangible’

The website further writes that BPM helps create competitive advantage by improving organizational agility and adaptability; “Intelligent rules ensure that processes adapt automatically to changes in the business environment while collaborative tools bridge department boundaries while improving and speeding decision making.” (BPM Basics)

BPM can help companies become more flexible in responding to emerging business trends and thus will be better able to adapt quickly to changing market conditions. (BPM Basics).  Jim Sinur at Gartner also notes that organisations are quickly developing and adapting processes to out manoeuvre their rivals.

Although there are numerous benefits to BPM as outlined in this blog, it must be borne in mind that BPM will not improve your processes overnight – it requires a major commitment from management in order to be successful; ‘companies should expect to face a multi-year timeline and investment to successfully introduce BPM in their organisation’. (www.propertycasualty360.com)

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4 Responses to “What does BPM offer its adopters?”

  1. ismisetusa November 14, 2012 at 2:25 pm #

    Owning to the risks that process re-engineering present o companies and the absolute scale of work and commitment needed to implement one successfully, would companies not be taking a substantially smaller risk if they were to develop a new business model over engineering. Or is the Process engineering simply the last resort?

    • cmcoughlan November 14, 2012 at 5:44 pm #

      Hi ismisetusa. To answer your question I would need more information for example what the company hopes to achieve. Companies often develop a new business model to compete with its competitors in the market. With the growing amount of new technologies such as social networking, companies need to amend their business model simply to stay in
      business. But Reengineering is more about changing processes to improve efficiency and elimate waste. I’m not sure that reengineering and changing a business model serve the same purpose for all occasions but perhaps they
      could both be possible solutions depending on what the business wants to achieve.

  2. ismisetusa November 16, 2012 at 2:19 am #

    Throughout your
    R blogging you have Been comited to giving clear decisive points of view and even under tough questioning you have succeeded well done lass!!! I am proud!

    • cmcoughlan November 16, 2012 at 9:37 pm #

      Thank you ismisetusa! It’s been a pleasure answering your questions 🙂

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