I am very interested in the return of investment of introducing BPM to a company which isn't working with any kind of BPM.
From my own experience I know the advantages of BPM. Before any company makes the decision to buy any kind of BPM software or system, the DMU often needs to have a business case or wants to know the return of investment .
Is there someone who can help me finding the answer to this question? What has your experience been with the ROI of BPM solutions?
Very good input provided so far!
My only additional thought is that it's about leadership and those key leaders' awareness of, training surrounding, and ultimate support for BPM as a methodology (as mentioned above) first and foremost. If that leadership focus isn't there, procuring BPM technology will be a waste of time and money, and your reputation as the recommender for BPM will be on the line.
If you can secure provisional buy in for BPM at your company with an executive champion to lead the initial charge(s), try to conduct some process mapping and improvement projects to get everyone's attention and understanding teed up. The ROI for each of those individual projects will be come apparent, and are a function of how important those project goals and value added results are that will dictate the ROI as you roll out the training and deployment of process teams going forward.
Assuming you do that right, the need for and purchase of BPM software should logically follow. However, doing that too soon can make you and your software purchase an unfortunate target for non-allied leaders that may be around in your environment.
To first secure BPM software and then try to cost justify it, without laying a solid foundation for BPM enterprise wide, will likely be a process in utter futility!
As with any IT or Business Improvement project there is no easy or fixed
answer.
ROI from BPM depends entirely on the business and the people and how they
tackle this improvement methodology.
BPMS technology and software has matured over the last few years, but to
quote a cliche, BPM is not a technology. Workflow automation is frequently
confused with BPM and often the projects start there.
We have seen that the greatest impedance to BPM is the readiness of the
people and business to address the process improvement mandates and to link
those to the business strategy.
The opportunities are significant if one considers the inefficiencies that
are quite prevalent in business where the core business process is not well
defined, measured or managed.
I don't have actual ROI since every company is different with their
different business models. It is also a continuous improvement
area. However, I've worked for 3 major corporations and every one of them
had focused on BPM measurements and improvement since it is every company's
strategic asset and the foundation for business efficiency and
effectiveness as well as customer satisfaction. It is also the foundation
for selecting technology tools to use.
Automation is critical to standardize and to provide customer consistent
experience. Without a good BPM, automation will be just replacing a maybe
not as efficient process. It is very easy to do a business case for one of
the major business functions to demonstrate the ROI.
Best wishes, Madge
The ROI will depend of or the processes where it's implemented. One solution
of BPM is also that the implementation will be good quality, covering the
main objectives of BPM, which is jesting the processes identifying with this
as can be best, at the same time it needs to help the users to focus more
on their tasks.
Our recommendation is that you implement your BPM in a process that
generate value to your company, then you will be able to carry BPM to all
the processes in your company.
I hope the information will be useful.
Have a nice day.
Regards!
The are far too many factors to consider to give a estimate...
Your Content & Service (banking, finance, healthcare, entertainment/media, etc..)
Developers
Customers
Partners
Affiliates
Mobile Users
Internal Projects
...
Partnerships
Business Model (banking, finance, healthcare, entertainment/media, etc..)media, etc..)
Base Model For Calculations - In general a quality product sells itself and recieves business from 2% of its customer base...
Ceasar Jackson
G'day Willem,
Before you start looking at software vendors, I highly suggest you take the time to do as Alexander suggests and as Eugen described. Yes, it's a hard sell internally without hard ROI numbers, but you can use the numbers from the Bizagi blog entries (linked above by Sebastien) to fortify your case.
It's important to make the right choice for your first process to improve. If you do that, your success will evangelize for you within the organization.
If you want unbiased help moving forward with this, I'm happy to provide.
Best regards,
Andy
If you mean BPM as a discipline then have a look at improving-bpm-systems.blogspot.ch/2014/05/ideas-for-bpmshift-delenda-est-vendor_9.html and select a couple of items for deeper investigations.
If you mean BPM as a technology (i.e. BPM suite) then I would recommend to think about introduction of BPM as a methodology first.
Thanks,
AS
Hi Willem
Bizagi.com has published some stats about ROI of their customers...
biza.gi/ROI1blog
biza.gi/ROI2blog
biza.gi/ROI3blog
The ROI really depends on the initial state of the company / processes... so, it's quite difficult to answer your question.
Regarding my experience, I saw 50% improvement after setting a BPMS tool (at the origin, processes basicly tooled but I was not paper-based processes...). So, I can imagine the ROI can be more interesting!
Unless you have a production line involving only mechanical robots, coming
up with a number in coins on the ROI of introducing BPM is difficult..
There are some aspects from my personal experience though, that may give
you some food for thoughts.
Introducing BPM in our organization by modelling the business
processes using BPMN, first and foremost tore down the walls between our
departments, making the employees see the depencies in the value chain and
the consequenses of them doing a good or poor job. This modelling
experience gave growth for making improvements in the order of which the
activities were executed, giving off some immeadiate efficiency boost.
Further, the process modelling formed the basis of which systems were
enhanced and workflows were put into system, increasing the overall
delivery speed and rate of products and thereby increasing income from
customers and lowering employee cost per product. Another benefit from the
overview BPM provided was the ability we got to build in an overall data
structure spanning all the different systems we use, thereby increasing
both data quality and lowering data corruption, which in turn makes us
spend less time cleaning data before providing business intelligence
upwards.
I could never have provided a ROI for our case, except pointing out what
kind of improvements would be possible by implementing BPM partially or
fully.
I remember I had to fight the case through, based on my gut feelings, and
today everybody will agree that it was the smartest investment of time we
ever did.
Hopefully this can be of some help for you,
Best Regards,
Eugen Dahl