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Is BPM a surround strategy or a support strategy or is it an over arching strategy for ERP

I guess the answer is all of the above but as an architect I need to add the two omni present words "it depends". Somehow when I analyze the above statement I think all of these are dependent strategy and depends on how and when aspects of BPM adoption. And just to set the context, when I refer to BPM I am refering to following aspects of BPM

  • Business "value alignment" with Process implementation strategy
  • "Methods" for process management and continuous improvement
  • "Architecture & Tools" for managing process and KPI models, Process KPI reporting and management, Process automation
  • People "enablement" for method and process training
  • "Governance" of cross region process governance and Process Finacial governance

 

BPM as a surround strategy has always been the sweet point for BPMS tool positioning, focusing on utilizing BPMS tool to automate the processes which are not core of an ERP offering or to integrate surrounding application with ERP at a process level. Out here the primary focus is the "architecture and Tool", partially the "method" aspect of BPM and partially the "Governance" aspect. For instance a CPG client automated their workflow around data setup for Item setup using a BPMS toolset.

BPM as a support strategy is an interesting emerging area, where organizations are looking at BPM as a strategy to manage end to end processes where ERP is seen as a central strategy to standardize processes. The whole concept of BPM as a support strategy for ERP revolves around the following high level problem statement faced by organization post any transformation program involving ERP rollout

  • Critical process knowledge is not sustained and diluted
  • Users do not adhere to processes standardization and use workarounds breaking the standardization brought forward by the transformation program 
  • Standardization put in place by transformation program are being diluted during regional rollout (e.g. localization after go-live)
  • Post transformation program rollout and beyond hypercare there is no clear go-to person for process issues i.e. no owner at a process level
  • Business Process Change governance is not operational
  • Process KPI reporting and improvement is typically missing

To address these following aspects of BPM becomes the primary focus

  • "Method" for managing process change, managing process KPI reporting and improvement implementation
  • "Architecture & Tool" for providing the visibility of Process and Process KPI to support standardization and continuous improvement. This will also covers the process automation aspects also
  • "Governance" for managing both process governance and financial governance for managing change
  • And lastly "People" enablement aspects which would enable training of Business users on the process standardization and cross functional know how

For instance a larger agro client used BPM as a strategy to manage the cross country process standardization implemented by the transaformation program. The whole concept behind the effort was how to continue to maintain the process standardization after rolling out the processes for different geography

BPM as an overarching Strategy is a strategy which extends BPM as a support strategy by linking the business value based approach for process change management. Typically BPM as an overarching strategy means organization needs to focus at value alignment at end to end business process level and identify ERP implementation as one of the means to realize the value.

 

BPM as an overarching strategy is an idealistic state, which organization should strive achieve. However BPM as a support strategy for ERP is the best form that organization should definitiely look at to derive maximum benefit from ERP implementation and at the same time use BPM for aligning IT view with business

 

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    Comments

    I have implemented ERP and used BPM. My goal with any system automation is to first analyze the process - then "simplify it" - then automate with ERP. This is a critical step to NOT "automate" waste. The benefits of standardization get this huge process improvement and immediate savings up front.

    Manas,

    You have touched upon a good point. The article is well structured and written. In my opinion, BPM in ERP is not an alien concept.

    However, can you throw some light on how pureplay BPM products fare in the ERP centric BPM space.

    I do not have many examples to talk about, and will be keen to hear your viewpoint based on your client experience.

    Hi Vito,

    That is exactly the point I am making, Process automation is the last thing we should consider when approaching ERP implementation using BPM approach, the focus should be primarily on simplification, standardization, measurement and after we have done all these, we should use measurements to look at opportunities for automation.

    Thanks for your comments.

    Hi Piyush,

    If you see Vito's comment you would see the areas where pure play BPM vendor should fare. I think from a pure play BPM vendor perspective, process documentation, process analysis and KPI definition would be the key areas, and lastly the automation and rules engine will come into play.

    Hope this helps.

    Manas,

    Can you explain a bit more the statement Business Process "Change governance is not operational"?

    My opinion - while Overarching Business Process is an idealistic approach but the pressing need for BPM is always found at the operational side of any Enterprise. I mean, if you see the birth of workflows were typically to automate/Structure the processes that were named "Operational" due to its primarily backoffice nature. Infact these operational procedures itself were not aligned to Business and IT came later to support Operations and the alignment got more diluted. In this case, Business Cases for BPM are most of the time originated from Operations, not such a bad area to begin with either as it is an area where BPM can be absorbed with clear benefits.

    Bhupesh

    No doubt BPM has an operational focus..But if you take an holistic picture of any organizations process landscape they will have typically comodity process and differentiating process. Again these process will have local variations of varying degree, as an organization your aim will be to minimize variations for comodity process (bring in standardization) and provide flexibility for differentiating process keeping the strength of the organization intact..In both the cases when you have a change requirement, it is important for BPM through its change governance to ensure that standardization of commodity processes are maintained and at same time to ensure that the differentiation is maintained for the differentiation processes..

    I hope it clarifies.. Let me know

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