Basics Of Business Process Management In A Business Application – Series Part 2

Basics Of Business Process Management In A Business Application – Series Part 2
How & When To Be Sure That You Need BPM

http://howtoautomateprocesses.blogspot.com/

BPM Folks,

First I want to thank all stalwarts for their valuable contributions to the subject. We have had different views from management BPM consultants, BPM gurus, BPM solution providers, Software application builders and innovative thinkers. Overall that discussion allowed us a platform to experience “Difference of opinion” within the same loved framework of BPM. Well moving on, next on my mind is Part ‘2’ of this series and what do I want to cover? Well

“Questions /Reasons To BPM, The Need Analysis: A Company should ask following questions to themselves to determine whether they needs to change the way they work. This might come across differently for different class of organizations like a startup, suddenly grown company, long in business and wanting to optimize, super company with advanced optimizations etc… But following fits all:

CEO/CFO Reasons for BPM

“XYZ services Ltd fails to produce more than 25000 invoices a year with 10 financial cleric executives because of broken down manual process when it comes to exception handling resulting in $3M of lost net profit /year whereas similar ABC services ltd issue 40000 invoices a year with 8 financial cleric executives resulting in $5M of additional profit than XYZ ltd only because of structured processes.”
1) Every businessman wants more efficiency but are you able to quantify efficiency “Need To Quantify Efficiency first” before it can be increased or optimized.
2) Every businessman wants to reduce cost but do you know how to? And in which area of business? And the biggest question is What to reduce? What about the cost of operations? How do we quantify cost of operations and that to selectively cost of different parts in a process? Hence “Need To Quantify Cost Of Operations in process as a whole and in parts of process before being able to reduce them”
3) Satisfied human i.e. employee, partner, supplier, customer “Need To have best services out”
4) Need to expand business horizons with integrating third party vendors and enable them .

CIO/CTO Reasons for BPMS

1) On a general level first need is to translate above mentioned business objectives into reality through support of specialized BPM systems and BPM IT Tools.
2) Business Productivity with structured processes with transparent efficiency because of BPM is possible.
3) IT Business alignment is need of the hour, IT has to support business and enable them achieve enterprise goals.
4) Growing Business Process Re-engineering demands and these demands are becoming more frequent on same process with changing dynamics of business.
5) Strategic IT Planning to support all future innovations and keeping things in control.
6) Revenue Generating IT Innovation as IT not necessarily only have to be a cost but can also earn revenue.
7) Security Of information & Privacy of actions.
8) Integration
9) Consolidation with shared services concept.

All inputs are invited to fine tune this for readers and different views for readers, Again adding I am not an expert like you people are ..i just put together a layman’s language.
Cheers!!!

Why always think technology when speaking about BPM ?

Since BPM is most desired proven descipline/methodology towards effective planning and optimizations these days...

1. Some people invented...experimented..made best practises available

2. Some people demostrated the benefits..

3. A lot more are only following the trends..

4. Some are still in the process of learninig it...

5. And some still do not know what BPM is..!!!!

Doubting why technology is discussed along with BPM is like asking always studing in class room and never goto work..or only talk about say SWOT analysis and do not implement it..Hmm

My friend Thomas here is seeing the vested interest of software providers..but what is he suggesting..that businesses should keep listening there theories in confrence rooms ever and never do business..keep learning what is farming and never use tools to actually farm things up???

Dick Lee is right, these two are diffrent things but can not be seen as diffrent ..

My friend Steve..Are u suggesting that those case studies would have been possible without application of principles??? Is it that just by buying book "What si BPM" or knowing "what it is" as said sensible will bring results???

My friend MAX is right ..just one line "BPM flowcharting is an agility killer. " can u put more light on this thought???

Why always think technology when speaking about BPM ?

A lot of people do not know what they are doing..they only do it because others are doing it..or they have heard about it as best practise..Well said "Common Sense"...

I think one needs to really make the divide clear..see the software need evolution cycle as following..

When we were child, businesses only needed Book Keeping...
When we grew young, some wise scientist invented IT and management principles ..Now somebody needs to impliment these principles...??? Right

When we grew even more older, we saw businesses growing and so is the need to manage business efectively...Scene 2 --> ERP arrived ...Businesses Simply cant do with child principle that if a guy can process 10 things It should take 100 guys to do 1000 things..

Requirements even grew more and still growing with time and so is the need to plan/manage effectively with most optimized resource utilizations...

No business mehtodlogy plan/organise/process management is of use if this is only theory..you need an executioner of plans..thus in this case is "technology".

What are u saying... A maths theory is of any use without its application via tools..???

BPM is like "Receipe Book" but is that of any use if you do not actually cook in kitchen??? You need tools like Stove / lighter / utensils etc..

BPM is "Receipe Book" and "IT" is both executioner and tools..