| Organizations are all looking to improve their | | | | may require a less than optimum technical solution, but |
| competitive advantage by following one of the 3 | | | | it will better support the strategic objectives. |
| Porter strategies:o Low cost provider; o Differentiation; | | | | The BPMS support the business user throughout the |
| and o Focus. | | | | process lifecycle and is a critical success factor for an |
| Business Processes are the primary vehicle for the | | | | effective BPI2. It empowers a business user to |
| implementation of anyone of these strategies and that | | | | compose strategically aligned processes, optimize, |
| is the main reason why business process | | | | deploy, analyze and monitor them and provides the |
| improvement projects are on the top of the list of | | | | flexibility and agility to change them quickly to respond |
| many organizations. Gartner and numerous other | | | | to changing business requirements. |
| research organizations have listed business process | | | | Many organizations are still low on BPM maturity and |
| improvement on the top of the list for both CEO and | | | | use the BPMS technology primarily for workflow and |
| CIOs. The cost of labor in developed countries such as | | | | integration purposes. These organizations will increase |
| the USA, UK and Europe also require continuous | | | | the benefits of using the BPMS ten or hundred fold as |
| review and optimization of business processes to | | | | they move up the BPM curve towards BPI and |
| reduce the labor cost to a level where it can compete | | | | increase their competitive advantage. It is clear that |
| with emerging countries like India and China where | | | | organizations can code workflows in a multitude of |
| labor is cheap. | | | | developer tools that include a BPMS but the |
| Business Process Improvement Initiatives (BPI2) differs | | | | requirements of the Real Time Enterprise need a |
| from automation and workflow projects in objective | | | | BPMS to deliver on the competitive advantage of |
| and scope. The scope of BPI2 is to management | | | | agility in strategy and operational execution. |
| process improvement across the enterprise and its | | | | Business Process Management is not only limited to |
| objective is to support the strategic objectives of the | | | | large organizations with formal business process |
| organization. These strategic objectives typically | | | | improvement (BPI) initiatives, but it is just as relevant (if |
| revolve around both growth and cost reduction plans | | | | not more so) in mid market businesses that operate in |
| to support the 3 strategic approached that Porter | | | | the same competitive landscape as those large |
| described. | | | | enterprises. They may not have the same resources |
| Automation and workflow focus on automating | | | | available but they still have the same types of |
| repetitive tasks in specific business areas and the | | | | business applications in place to support the same |
| objectives are generally operational by their nature. | | | | processes as those larger organizations. There CRM |
| They are in many instances the result of a pain point | | | | and ERP solutions may not scale to 50 000 or 100 000 |
| or an operational issue that can be easily automated | | | | users but the core functionality remains the same. |
| with a hard-coded workflow. Some of these | | | | There value chain looks very similar, if not identical, to |
| workflows may even have rigid integration into a back | | | | that of the larger organizations. Their order to cash, |
| office system to reduce time, errors and increase | | | | procure to pay, and quality management processes |
| productivity of the process. (Technologies such as WF | | | | have the same inefficiencies as that of larger |
| may be ideally suited to develop these workflows.) It | | | | organizations. Their business applications are also |
| has a transactional perspective and is aimed at solving | | | | disconnected and rely on people to understand and |
| an operational problem by letting a programmer write a | | | | drive their processes. Their workflows are also rigid |
| custom application. | | | | hard-wired integration solutions and their business |
| Workflows are useful if it can be utilized as part of a | | | | users require the same ability to adjust processes and |
| bigger business process management solution to | | | | business rules as the competitive environment |
| support BPI2. The objective of BPI2 is to support the | | | | changes. |
| strategic objectives of the organizations as noted | | | | They have limited IT resources and IT is in many |
| earlier and it is part of a continuous improvement | | | | cases outsourced. Business users in the mid market |
| process throughout the lifecycle of the business. The | | | | have an even bigger need to be in charge of their |
| processes that support the business strategies need | | | | own destiny. Their initiatives may not be strategically |
| to change as the business move through its lifecycle. | | | | defined as BPI but are typically more tactically oriented. |
| This requires an agile approach as business strategies | | | | Take the following business scenario: |
| may change quickly in response to market events and | | | | A sales representative manages his/her prospects in |
| requirements. Changes to business processes are | | | | the CRM solution of the organization. They only |
| identified by business users and they are best suited to | | | | maintain the bare minimum information that is required |
| define the requirements for the changes to the | | | | by the system. At some point in time the prospect |
| processes. Business Process Management Suites, | | | | may want to be become a customer and a new |
| such as FlowCentric Processware, is designed to | | | | account needs to be created in the financial application. |
| support business users in the discovery of their | | | | E-mails typically start flying around and the financial |
| business process requirements and allowing them to | | | | person ends up trying to get the information required |
| compose and deploy new processes without coding | | | | to create the account. There are no controls to ensure |
| and programmer involvement. This is also the promise | | | | that the credit status of the prospect is verified and |
| of BPM2.0. | | | | that all supporting documentation accompanies the |
| It doesn't mean to say that programmers and | | | | request. |
| developers will disappear, but their roles will change in | | | | The process can be managed from start to end with |
| the agile process driven world of the Real Time | | | | a Business Process Management Suite (BPMS) such |
| Enterprise (RTE). BPM requires a set of new skills both | | | | as FlowCentric to connect the CRM to an approval |
| in business and IT. This article will address these new | | | | process through to create the new account in the |
| roles later. | | | | ERP using drag and drop iDapters (Integration |
| Business Process Management or BPM differs from | | | | Adapters). The process can be initiated from Microsoft |
| workflow not just from a technology point of view but | | | | Outlook and all the supporting documentation is |
| also from a strategic perspective. The same | | | | available with the process audit trail. |
| technology tools can be used to solve a workflow or | | | | This scenario is typical of the operational process |
| a BPM issue. BPM is a management approach that is | | | | requirements that mid-market organizations face. |
| aimed at managing business processes. The | | | | Managing 100 sales representatives may not have the |
| management action is a continuous effort to define | | | | same operational savings as managing the 12 000 |
| process outcomes (KPIs), deploy, monitor, analyze and | | | | found in some large enterprises, but the improved |
| adjust the process in a proactive manner. BPM utilizes | | | | customer relationship management and quicker |
| a broad range of support technologies to accomplish | | | | account approval process will have significant impact |
| this and a BPMS like FlowCentric Processware put all | | | | on the sales bottom line. |
| these technologies together in s single suite to support | | | | The process in the example above can be deployed in |
| the proactive management approach to improve | | | | a matter of days and fine tuned to the exact |
| processes or competitive advantage. | | | | requirements of the business in weeks. The process |
| Enterprises that embark on a formal BPI2 goes about | | | | can be expanded to include other scenarios and grow |
| it in a structured and methodical way that is based on | | | | as the business grows. |
| a sound BPM methodology. Developing a point solution | | | | The objective is not to create workflows for |
| workflow doesn't require that same approach and are | | | | requirements that the ERP or CRM can't cater for but |
| in many instances a simple specification of an | | | | to manage the business processes at a tactical level |
| operational flow diagram and it is left to the | | | | with performance feedback information, dashboards |
| developer's interpretation of the process to determine | | | | and the flexibility to change as the competitive |
| what the outcome will be. A BPM methodology is | | | | landscape changes. Extending business applications |
| based on aligning the strategic outcomes of the value | | | | with FlowCentric in mid market organizations allow |
| chains in an organization with the operational | | | | them to compete with large business in the age of |
| processes that support them. A compliance strategy | | | | Real Time Enterprises. |