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Benefits of Pragmatic Business Process Management

April 14th, 2010 Posted in Pragmatic BPM

After discussing the benefits of process automation, this post is now focusing on the benefits of Pragmatic Business Process Management. A pragmatic view typically focuses on solving business pains, providing benefits and satisfying customers without making a science project out of the BPM project. As such, the benefits of process automation remain and are complemented by a number of benefits that deal with implementation and change.

What always strikes me when speaking to people in the BPM space is the dedication to discover and model business processes in detail and thereby spending thousands of dollars and up to years identifying possible business flows, rules, exceptions, redesigning them, getting employee buy-in etc. without even touching a single BPM benefit and saving a single dollar.

Discovering the process flow is important to automate processes. But where do you start and especially where do you STOP? Let’s focus on the goals first and answer this question with the benefits in mind.

The reason for automation business processes is to solve business pains, increase the efficiency of your operations and improve customer experience.

With Pragmatic BPM you

1)      Lower cost of business process management and therefore spend your budget wisely

2)      Cut time to improvement and reap benefits earlier

3)      Remain flexible and change faster making you more competitive, and

4)      Develop a process and change management culture for further improvements

Looking at the benefits in more detail:

Cost of implementation – Lower cost of BPM and Total Cost of Ownership (TCO)
The more complex your implementation, the greater the cost of business process management and the higher your Total Cost of Ownership. Implementing a complex solution and maintaining it only makes sense when the profits exceed the costs. This is a simple business calculation: what is the marginal benefit of an additional specification within a business process management investment. If it is zero or negative, it doesn’t make sense. Therefore start simple and let it grow rather than boiling the ocean.

Time to production – Reap benefits earlier and reduce risk
The faster you discover your process, the sooner you can reap the benefits of process automation. Efficiency gains easily compensate adjustments to the solution required by the incomplete process map and changes that happen to business processes on a daily basis. Make sure you are on the right path before going into too much detail and thereby risk the success of your project. In addition, it is more likely to achieve a high return on investment.

Flexibility and Agility – Stay ahead of your competition
A detailed and complex solution might enable you to react to foreseen circumstances faster and more dynamic but makes it more difficult to react to all other situations. Google is changing the game plan for advertising daily. New applications, new hard- and software, new auction models and ad quality indicators – no wonder competitors have a hard time keeping up. Change is an imperative and becomes a nightmare when having to change complex systems with all the exceptions and dependencies. Stay flexible and agile by implementing only the most important exceptions.

Change Management – Creating a culture of improvement
While process modeling brings teams together to develop a process, the task isn’t completed when the process is discovered. The process needs to adapt to changes, improvements need to be implemented, rules adjusted, extensions developed. If you really want to do business process management right, create a culture of improvement and allow for everyone to participate in improving business processes whenever and wherever they can.

Therefore discover everything necessary to automate a process and include exceptions and automate steps as they come up over time. This requires adaptive / flexible / dynamic (whatever you call it) process automation solutions and we will have to look at these requirements next.

5 Responses to “Benefits of Pragmatic Business Process Management”

  1. Keren Mehan Says:

    As a Newbie, I am always researching online for articles that can help me get further ahead.


  2. Turismo Panama Says:

    It is nice to definitely find a site where the blogger is level-headed. Thanks for creating your site.


  3. fschubert Says:

    Thanks Turismo Panama – very much appreciate your comment!


  4. Jackqueline Todor Says:

    I am not really sure if best practices have emerged around things like that, but I am sure that your great job is clearly identified. I was wondering if you offer any subscription to your RSS feeds as I would be very interested and can?t find any link to subscribe here.


  5. fschubert Says:

    Hi Jackqueline – would be great to have best practices that can tell you where to start and where to stop with process discovery. But probably it depends more on the individual preference rather than an objective measure. Will let you know when I come across a method that makes sense in this respect. Probably process maturity is one important factor, since it shows how capable a company is of changing the processes once they are implemented.
    If you want to get RSS feeds, simply use this link http://www.pragmaticbpm.com/feed/.
    Thanks for reading and commenting! Franz


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