How Cloud is Transforming Business Process Management

27 Nov

We are seeing a marked rise in popularity of cloud-based business process management or “Business Process as a Service” (BPaaS). But what’s driving this?

An article I came across on ‘Business Finance Magazine’ highlighted the growing link between BPM and Cloud computing, something which I explored in my previous blog post. http://businessfinancemag.com/article/how-cloud-transforming-business-process-management-0604 [1]

Mony and Raman write in [1] that rather than looking for simple replication of existing processes at a lower cost, companies are asking providers for transformational support through standardized processes. In addition to services, a lot of firms are also looking for technological support. Companies using BPMS are increasingly asking providers for these solutions rather than making capital investments to build these capabilities themselves.

Business Process as a Service (BPaaS) provides process and people expertise that enables part or all of a business process and makes it available through a pay-per-use model.  BPaaS can enable fast entry into new markets and smooth setup of operations in new geographies – it does not require a heavy upfront investment in new infrastructure, or upgrading of operations and systems across old ones.

The figure below is used to highlight the value that can be gained from combining cloud and BPM. 

A traditional BPMS implementation would have required the company to:

  • bear significant capital expenditure
  • Spend years on system overhaul prior to handing over the processes to the BPMS provider

Instead, a company can have aBPaaS up and running in a matter of months. BPaaS allows either retooling of end-to-end processes or selected modular upgrades that don’t require significant change management or investment. BPaaS is also a real consideration for companies facing structural change such as acquisitions and new market entry.

They close a rather intriguing post by proclaiming  “BPaaS enables greater end-to-end flexibility and effectiveness in an organization, providing options for improving processes. It does not need to be an end-to-end transformation – it can be a set of selective improvements that generates the greatest payoff, maximizing benefits for the costs of change — both in monetary terms and disruption”.

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One Response to “How Cloud is Transforming Business Process Management”

  1. aherntim1 November 27, 2012 at 5:13 pm #

    I liked your article gashe2k12. It was convincing that BPaaS is the way forward for companies.

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