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BAM driven BPM - A value based approach for BPM adoption

More and more I talk to different clients on the difficulties around nailing a business case for BPM and issues organization are facing around end to end process visibility, my belief on BAM driven BPM gets stronger day by day.

Different people interpret BAM differently and I am staying clear from that discussion and using the term BAM here to represent a set of capability for Positive / Negative Business Process Monitoring, Process KPI analytics and closed loop feedback mechanism.

So before diving into why BAM driven BPM make sense, let us go through some of the typical questions that any organization has to answer before starting its BPM journey and sometime in between the journey

  • Which process should we automate?
  • How can we be sure the process we choose to automate is going to deliver the business value? Or the lag of the process we automate would have positive impact to the overall business process?
  • How can we measure and report promised business value from the IT project?
  • Should we document all my processes and analyze them before going for process improvement using BPM?
  • Why should we go for BPM adoption when the processes are automated using ERP and other packaged application?

These are the problem area that organization needs to address holistically using value, method, architecture & technology, governance and People enablement aspects, however today let us focus on Architecture & Technology aspect.

If you closely analyze the above set of issues the key aspects that comes out in the forefront are

  • There are no end to end runtime process view and any data available on how an organization is faring
  • Process view are fragmented and departmental i.e. every end to end process is handled by different departments and each of these department ensures the process area they handle fares well but no view exists on how all the sub-processes contributes to end to end process performance
  • No clear view on business value contribution of sub-processes and corresponding process performance
  • ERP implements the Core process, however all ERP implementation will have core processes, extended processes and Fringe process. In ERP implementation everybody is focusing on the core processes ignoring extended and Fringe processes
  • And lastly to what extent processes should be documented before realizing the value as the process documentation is costly

In my view organizations should always think of incremental adoption of BPM i.e. adopt BPM keeping the tab on the “why” part of the BPM. Today however the immediate focus is directly going into BPMS implementation addressing business process automation or improving manual intervention by introducing workflow driven application or using ECM capability to improve workflow around document management or using business rules to improve system flexibility or focus on immediate process modeling to analyze the process for improvement and more often than not misses the “why” aspect of BPM leading to abrupt end of BPM initiative or BPMS toolset being used as another toolset for building workflow based application. Thus it is important to manage the “why” aspect of BPM in any BPM journey to ensure business focus. And BAM is a way to manage the "why" aspect of BPM implementation. BAM based approach clearly demonstrate following benefits

  • Allows organization to see a digitize version of its end to end Business Process using milestone view where end to end process is broken down into key milestone and necessary events are mapped to get a view of the end to end process performance
  • Enables IT to collaborate with Business to identify the process lag i.e. sub process between two key process milestones to be automated based on the business value it embodies
  • Enables organization to continuously assess process improvement initiatives
  • Enables organization to manage its resources better based on the milestone view
  • Enables organization to identify the process areas to be modelled in detail based on the automation or improvement requirement
  • And lastly enables organization to separate out Core Processes from Edge processes in ERP and work towards Edge process improvement

This does not mean that we do not require the core BPMS capability, it is an essential part and addresses the "How" part of Business Process Management

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Comments

Manas,

To further add to your comments about "why", One of the industry standard practices is to conduct a business case stating the need to adopt BPM, why to adopt BPM, TCO and ROI. During the course of the business case, the consultants understand the business and puts forth its recommendations accordingly.By presenting such a business case an organization is very clear on the benefits of rolling out a BPM solution, Since the cost to roll out is quantified in numbers.

Additionally lot of organizations are still not the clear what is the difference between core Business Logic and Core Process Logic. To put it in short, a Core Banking solution is a system meant to address the issues of an business logic related to bank. Now a bank will consist of many such systems like ERP, CRM. Lot many processes in banks have data which flow in and out of these systems, eventually leaving it as an orphan since there isn't a single owner claiming responsibility of such process Ex account opening in a Bank. This is where BPM comes in, streamlines such mission critical processes and identifies a parent to ensure they are monitored. From a statistical analysis, we very well have BAM which is used to track the status and identify bottlenecks in processes which will lead to process optimization.

Just some thoughts !!!

Thanks !!

I agree with your thoughts.

Infact the need for BPM over arching ERP, CRM or Core Banking platform has become a necessity nowadays with organizations getting process oriented thus breaking the ERP, CRP boundaries.

Interestingly if you see SAP PI 7.1 release and above, have brought in the concept of Business Process Milestone Monitoring, which allows organization to monitor end to end process, breaking the Functional Silos.

Thanks

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