Using BPM for Agility in a Globalised World


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Business Process Management (BPM) adoption is increasing world-wide, because the technology provides immediate ROI and enables competitiveness by delivering organizational agility. In fact, a recent study from Gartner found that 78% of successful BPM projects delivered an internal rate of return greater than 15%, with some returns as high as 100% or 360%. This paper discusses how BPM enables organizational agility and delivers immediate ROI.

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Using BPM for Agility in a Globalised World

  1. 1. Skelta BPM - For BPM and Advanced Workflow Solutions Business Process Management (BPM) adoption is increasing world-wide, because the technology provides immediate ROI and enables competitiveness by delivering organizational agility. In fact, a recent study from Gartner found that 78% of successful BPM projects delivered an internal rate of return greater than 15%, with some returns as high as 100% or 360%. This paper discusses how BPM enables organizational agility and delivers immediate ROI. Business Agility is Difficult core business process works. The need is for employees, who often operate in virtual, global teams Competitive and growth pressure on business is to have a shared, explicit understanding of business multiplied by shifting global economic scenarios. processes. Organizations have to evolve to keep up, and rapid change is the order of the day. Organizations need to BPM enables Organizational Agility and Makes streamline business operations, keep costs low and Processes Explicit also adapt to market realities while relying on collaboration between globally distributed teams. Not BPM works by making processes shared and explicit. only does organizational cultural need to be adapted, These processes can be accessed and viewed but also management discipline needs to relearned, visually, typically in viewers similar to Microsoft Visio, and most importantly, the technology used to with indicators for where the process is at. Everyone automate core operations needs to become flexible. in the process is now aware of the process, and who BPM is the technology platform for these goals, does what next. enabling agility and ensuring consistency in performance and reducing costs across the BPM technology provides the tools and infrastructure enterprise. to define, simulate, analyze and to put into action, these business process models, and all from a Most Enterprise Systems are Inflexible and Lack business perspective. Such a platform also provides Transparency techniques to make changes to the process on the fly, in a simple visual manner. These changes are Most businesses already use a whole host of software immediately reflected, and include updates to existing systems to manage their core operations and achieve software systems (ERP, CRM, EDMS etc.) their business goals. Examples are Enterprise Businesses can now truly adapt their processes to Resource Planning (ERP), Supply Chain reflect market reality. Management (SCM) and Customer Relationship Management (CRM), which address the entire value Business organizations are using BPM for different chain of an organization, from supplier to internal reasons and in different forms. BPM impacts the process to customer. Such systems are also entire business ecosystem. Benefits are several and complemented by tools like Electronic Document range from increased productivity and profits, Management Systems (EDMS), Portals, Content reduced labour costs, shorter cycle times, improved Management Systems and Productivity Tools. customer satisfaction and retention and the optimal use of IT infrastructure. The problem with current software systems in use is almost all of them are modelled on ‘best practice’ set BPM can deliver Value in Different Industries of processes that require the user to adapt their business to match the software. Also, most enterprise BPM in a Business Process Outsourcing solutions lack agility and are unable to change Organization (BPO) business processes to match rapidly changing BPO organizations use BPM to enable their business needs. customer’s core business processes. For an outsourcing engagement, risks of failure are highest User alternatives are expensive customization which at the beginning and at the end of a contract, given the increases the Total Cost of Ownership (TCO) or complexity of changes and number of stakeholders expensive and time-consuming custom, one-off involved. During these stages, the flexible nature of solutions to address specific line of business the BPM technology provides the BPO with excellent problems. options for continuously tweaking the outsourcing process to reflect needs of the engagement. Using The situation is compounded since most core BPM, the time to understand and start working on a business processes are implicit and embedded in customer's need is dramatically shortened, and BPOs these business systems. The business takes an are able to stay competitive by rapidly rolling out new extreme risk by relying on the enterprise system to offerings regularly. maintain a record, and often the only record, of how a
  2. 2. Skelta BPM - Human + System + Document Centric Processes BPOs are using BPM to improve processes in areas exception scenarios and provide complete end-to- such as Finance and Accounting (Procure to Pay, end visibility of the supply chain. Order to Cash etc.), Procurement, HR Services (Recruitment, Training & Development, Performance BPM in Financial Services Management etc.), Legal Process Outsourcing, Financial services organizations contend with Banking & Financial Services (Loan Origination, shrinking operating margins, growing competition, Servicing, Collections, Customer Service etc.) increasing customer expectations and changing Insurance (Claims Processing, Underwriting etc.), government regulation and scrutiny. Over the years Telecom (Customer Relationship Management, businesses have evolved, from a brick and mortar Fulfilment, Assurance & Billing etc.) and Health & Life system for delivery of services to a complex Sciences (Claims Adjudication, Subrogation, distribution system that takes advantage of latest Underwriting etc.). technology and communication mediums BPM in Manufacturing To compete, financial services organizations need The manufacturing industry is very process oriented efficient processes that seamlessly integrate with the and relies heavily on an efficient and responsive company's specialized applications for core banking, supply chain for business success. To compete, insurance and such services. manufacturing companies need to track progress across distributed stakeholders, and improve the The ability of BPM to maximize productivity, and supply chain pipeline. Regular optimization of improve effectiveness is used in several ways to processes has significant impact on the supply chain meet his need. For example, BPM is used to automate by improving communication with suppliers and processes in areas like Cash Management, New shortening manufacturing cycles. Account Initiation, Loan Application Processing & Disbursal, Compliance, Risk Management. The BPM works with existing investments in IT technology is used in different ways here, such as the infrastructure to enable this optimization. For provision of self-service online options for customers, example, the technology is used to reduce delays in the flexible routing of documents to staff, audit trails material supply by automating updates to disparate for critical business operations, automated updates of systems, to set up automatic escalations for disparate systems of record and integration of unauthorized expenses, keep a fine audit trail of multiple customer channels. activities, set-up flexible approval processes for The diagram below lists sample processes in core functional areas in which BPM is used. Human Resources Information Technology • New Hire Processes • Service desk requests • Performance Reviews • Security requests Internal / Administrative • Move/Add/ Change • Employee Dept. Transfers • Purchasing Requests • Benefits Administration • Change Management /Procurement • Leave Requests • Hardware/Software Procurement • RMA Processing • Travel Requests • Enhancement Request • Contracts Management • Automated lead follow up • Equipment Management Sales and Marketing • Facilities Management • Better Customer Communications • Customer Complaints • Automated Pipeline Updates • Enhanced Accuracy of Forecasts • Improved Information Flow between Groups • Improved Speed of Order Fulfilment E PROCE SS PL IT Banking & Financial M HR E • New Account Setup S SA Ma ale Product Development S • Expense Report Processing al tive rk • New Product Introduction ini n e TIONAL AR • Travel Expense Reimbursement a s ng tr m t er & • Product Enhancement Requests ti s • Invoice Processing & Exceptions /Ad In NC • Credit Processes • Quality Assurance • Compliance • Bug / Fixes Reporting EA FU • Documentation De al • Loan Origination Prodpment i velo • Knowledge Base Modifications Financ • Version Control BPM uct Typical Application Areas for BPM
  3. 3. Skelta BPM - For BPM and Advanced Workflow Solutions The Skelta BPM Approach 1. Eliminate Business/IT Divide Model Driven Collaborative Design 2. Reduce Time, Cost and Risk of Mainstream BPM Think Big, Start Small, Scale Fast 3. Enable People-Driven Innovation Model, Adapt, Innovate! “Holistic process automation across the entire Process Designer modern business enterprise is now a reality.” Process Modeling with Skelta Process Designer is easy and intuitive, uses a drag and drop interface, as Introducing Skelta BPM – A Powerful Business well as more than 50 out- of-the-box pre-built activities Application Platform for people centric processes, all within a web browser. Skelta BPM is an enterprise wide Business Process Management product which provides enterprises with a strong and collaborative platform to develop business applications. Skelta BPM delivers features like Forms Designer, List Designer and Process Designer to enable companies across the globe to deploy process centric solutions while adhering to BPMN standards. Skelta BAM provides powerful Business Activity Monitoring capabilities for companies to remove bottlenecks, streamline processes and thereby enhance productivity. Skelta is utilized as a Business Application Platform to build horizontal solutions like Accounts Payable, Document Management for Paperless Processes, Corporate Governance & HR Information System for various industries ranging from Aerospace & Defence, Automotive, IT & ITES, Retail, Government, Human Centric Workflows Healthcare, Finance & many more. Skelta supports human centric work of processes by leveraging a combination of advanced queues, and Skelta BPM at a Glance collaborative task management. For example Skelta's advanced Queue Management allows business Forms Designer leaders to dynamically assign tasks to workgroups Skelta Forms Designer is a WYSIWYG editor which from shared worklists, based on roles, rights and puts the business user in control of the way they dispatch patterns. create and manage complex forms using a simplified drag & drop interface.
  4. 4. Skelta BPM - Human + System + Document Centric Processes Process Monitoring and Optimization Microsoft Integration Skelta BAM has powerful out-of-the-box real time Skelta provides integration with Microsoft process metrics and reports for trend analysis and technologies like Office, SharePoint and BizTalk. includes drill down to driver metrics. Flexible Reporting Framework Multiple Delivery Channels Custom Key Performance Indicators (KPIs) reports Skelta provides multiple channels - Browser, IM, can be developed by the business using the BAM Mobile Phone, PDA & Email Clients for User framework, to analyze and remove bottlenecks. Interaction. Delivery Channels for Notifications Browser Messsenger Phone PDA Outlook Awards & Accolades Tech- Ed 2007 Attendee Choice Award Skelta Software Named quot;Cool Vendorquot; by Leading Analyst Firm © 2002 - 2009 Skelta Software. All rights reserved. All trademarks are the property of their respective owners.