Wednesday, 15 June 2011

BPM from a Business Point of View

Many companies are required to create a return on investment [ROI] analysis for purchases over some dollar amount. The basis for an ROI analysis is Savings less costs equals the return on investment.

The Costs
The costs of a BPM project include: The Software, The Services and [if you are to be accurate] The Time that 'your people' put into the project.

The Savings
There are 2 kinds of savings - hard costs and soft costs. Hard costs are savings that can actually be counted. Soft costs are savings that might happen or cannot be measured with any certainty.

How much money will you save by automating non-value added tasks? Many process improvements allow computer software to perform a task or tasks. You should be able to measure these savings.

Your re-engineered process may have reduced the steps in your process or eliminated an activity entirely. This requires that you measure the 'as-is' process and estimate the measure from the 'to-be' process.

If you are required to be compliant with some standard, there is a cost associated with that activity. Can your re-engineered process reduce the cost of compliance?

Quality Improvements
Re-engineering your processes gives you the opportunity to either improve an activity or add a step that that will improve the quality of your product or service. What would a 10% improvement mean to your company in pounds? What impact will improved quality have on your customer base?

Once you have identified the costs and the savings, you can easily generate the payback time, the net present value, the internal rate of return, etc. Many companies will have their own format for ROI analyses - emphasize what is important to your company.

Managing your business processes more efficiently will increase revenues, lower costs and improve customer relationships. It can differentiate you from your competitors. It can be the key that allows your company to break out as the market leader.

BPM is very ‘real’ and with great potential for benefits realisation. Organisations that have taken the leap of faith have proven this and for the majority that have kept up the momentum and focussed on finding additional opportunities in their organisations have gone on to gain incremental value from the adoption of a BPMS and BPM. In an economic climate where there is continual scrutiny of operational and discretionary budgets, compliance and regulatory demands any opportunity for demonstrating cost reductions, good governance and efficiency gains should be treated as a priority.

The ROI benefits of implementing a BPM solution transcend the whole spectrum of processes and allied costs. As organizations seek to manage and measure the business value of every process, they will find Carkean Solution Aquima BPM an able ally in its ability to provide a powerful collaborative platform  to define and administer their business ecosystem.

Your Thoughts...

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All information presented here is © copyright Carkean Solutions Ltd., 2010 - Not to be used without our permission - The views expressed here are the views of an individual not the corporation

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