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Schrodinger's BPM

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Is Business Process Management (BPM) Dead, or alive?
Is this the end for BPM? And more fundamentally, is the idea of business transformation - on the back of which current BPM technology was really popularised - also 'dead'?
The market for technology that can help organisations co-ordinate their work and share knowledge is changing significantly, and what should today's BPM technology vendors do?

This presentation was created for a conference called bpmNEXT - an annual event principally aimed at 'BPM market insiders' (product vendors, integrators and consultants).

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Schrodinger's BPM

  1. 1. Schrödinger’s BPM Is it dead or alive? bpmNEXT, March 30th 2015, Santa Barbara CA Neil Ward-Dutton Founder, Research Director
  2. 2. © MWD Advisors www.mwdadvisors.com 2 Let’s work through three questions…  Is it the end of the line for BPM?  Are we seeing the end of “transformation”?  Where next?
  3. 3. © MWD Advisors www.mwdadvisors.com 3 BPM: Dead… or alive?  ‘BPM’ disappearing from vendor communications  Market for BPM technology platforms is growing only very modestly (maybe 3% p.a.)  Maintenance revenue starting to dominate license revenue  We’re getting plenty of vendor selection enquiries!  Increasing interest from ‘non-traditional’ sectors – retail, hospitality, travel/transport, local govt, utilities, …
  4. 4. © MWD Advisors www.mwdadvisors.com 4 Actually, we’re in the middle of mainstream adoption 1990 2000 2010 t New adoption Innovators Early majority Late majority Laggards We are here
  5. 5. © MWD Advisors www.mwdadvisors.com 5 What we’re seeing Matching work effectiveness challenges to initiatives Uptick in tech interest from mainstream app dev community Increased importance of tech integration, use “in context” Early adopters: maturing initiatives Capabilities of large CSIs are a bigger part of the picture What tech adopters tell us they’re looking for Domain-specific expertise Peer success Stakeholder education/ guidance Cost-effective skills Supporting disparate stakeholders Governance, change management Managing at scale Standards support Open source alternatives Dev’t/ infrastructure integration We are here
  6. 6. © MWD Advisors www.mwdadvisors.com 6 The BPMS: fundamentally, unlike most enterprise tech Discovery and analysis Monitoring and optimisation Simulation Deployment and execution, Integration Rules Design Requirements Architecture Design Development Operation Change management Business intelligence
  7. 7. © MWD Advisors www.mwdadvisors.com 7 Reactions to novelty “We tried BPM; it’s a waste of time and money” “This is just another attempt to get us to buy an enterprise platform we won’t use” “I can use this to reinvent the way we work” “We need a new approach; the old ones don’t deliver” Requirement for culture change too “expensive”
  8. 8. © MWD Advisors www.mwdadvisors.com 8 A tale of two organisations  Large retail group  Implemented platform to manage delivery of premium in-home customer services  Transition from store-based service to omnichannel  “Customer Project Manager”  Cloud-hosted  Case management  Large banking group  Implemented platform to address group of major end-to-end operational processes  IT-led initiative  Spent $millions  Ran out of resources and failed to architect properly  Back to the drawing board…
  9. 9. © MWD Advisors www.mwdadvisors.com 9 At the edge of diffusion: low-cost, low-challenge propositions  BPMS conservatives and laggards are embracing new platforms and strategies – cloud- first, mobile-friendly, agile, low- cost propositions  “Lightweight” approaches that deliver results with low requirement for cultural change “There was about a seventy year gap between Ignaz Semmelweis proving that hand washing in hospitals saves lives [in the 1850s] until the practice was widely accepted. Even today, in many hospitals less than half of the health care practitioners follow the right procedures for hand washing.” - Tim Kastelle, University of Queensland Business School
  10. 10. Operational Intelligence platforms © MWD Advisors www.mwdadvisors.com 10 Taking a wider view of work co-ordination & improvement Planning Doing Measuring / improving ‘ClassicBPMS’ BPA tools Taskmgmt. ESN/ collaboration SaaS orchestration Project mgmt Project mgmt Low-codeplatforms
  11. 11. Operational Intelligence platforms © MWD Advisors www.mwdadvisors.com 11 Interesting players worth watching ‘ClassicBPMS’ BPA tools Taskmgmt. Low-codeplatforms Project mgmt Project mgmt ESN/ collaboration SaaS orchestration Planning Doing Measuring / improving
  12. 12. © MWD Advisors www.mwdadvisors.com 12 The digital business era: new expectations, new threats Multi-channel service, instant information, responsiveness, transparency, … Media, entertainment, payments & banking, travel & transport, hospitality, telecoms, … IP theft, human capital risk, environmental risk, business continuity, product liability, credit risk, ID theft, data breach, … Sustainability, transparency, probity, etc Changingrisk landscape Newcustomer expectations Newdigital-native competitors Changingstakeholder expectations
  13. 13. © MWD Advisors www.mwdadvisors.com 13 The Digital Enterprise emerges from Four Internets Internet of infrastructure, products Internet of personal devices Internet of conversations Connect to customers, markets Build products, services Run operations, management Internet of applications, platforms
  14. 14. © MWD Advisors www.mwdadvisors.com 14 “Think big, smart small, fail quickly, scale fast” Internet of infrastructure, products Internet of personal devices Internet of conversations Connect to customers, markets Build products, services Run operations, management Internet of applications, platforms Instrumentation of products, services, processes Agility of services, processes, business models
  15. 15. © MWD Advisors www.mwdadvisors.com 15 Focusing on Customer Experience excellence Your customer Customer Journey stage 1 Customer Journey stage 2 Customer Journey stage 3 Customer Journey stage n Customer Journey stage n+1 Gather intelligence through each customer journey to make future experiences more engaging Marketing Sales Operations Service
  16. 16. © MWD Advisors www.mwdadvisors.com 16 Real customer experience excellence requires real business integration Scope of customer experience concern Depthofcustomerexperienceconcern Knowing Surfacing Acting Shaping SalesMarketing Operations Service A customer’s journey
  17. 17. © MWD Advisors www.mwdadvisors.com 17 So… is BPM dead or alive?  It’s approaching sunset on the day of the BPMS  The concept of enterprise-wide BPM is viewed with extreme scepticism  Organisations are still actively transforming business processes  Work co-ordination technology is a massive opportunity
  18. 18. © MWD Advisors www.mwdadvisors.com 18 My advice 1. DON’T fixate on Smart Process Applications 2. DON’T obsess over traditional competitors; look at the wider work co-ordination landscape 3. DON’T fixate on ‘throwing more stuff into the box’ 4. DO find ways to enhance ‘Bring Your Own Process’ tools with power of auditability/measurement/governance 5. DO look at the implications of Digital strategies and how they link to broader corporate strategies, assets 6. DO enable clients to take portfolio management approaches to business processes and digital work co-ordination 7. DO partner / buy / build to hook into growing segments
  19. 19. Neil Ward-Dutton, Founder and Research Director @neilwd neilwd@mwdadavisors.com Image credits: [1], [3], [7], [9], [19] licensed from iStockPhoto. [18] http://www.quickmeme.com/meme/3utmn3 What reaction do you want?

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