Jim Sinur

Well it’s time to think about breaking into the 2010 budgets, but the question is what should you spend your hard fought budgets on? There is enough proof out there that BPM delivers cost savings and companies are increasing their investment. Is this an illusion or is this real?

The Case for Aggressive BPM Investment:

From the continuous stream of client inquiries we receive every day, we know that BPM continues to be a top priority, especially in services-based industries. Many organizations are doubling down on their investments. We review at least three priced proposals per week for BPMS products. Organizations are considering multimillion-dollar investments in BPMS technology over multiple years. Investments are exceeding our forecasts and early financial reports from the few public companies in the market indicate that 2010 will be a better than expected growth year for BPMS vendors.

Many organizations have multiple projects under their belts and good success stories. Many are moving from BPM projects to BPM programs, setting up their BPCC, training more individuals in various methodologies and technologies. Initial deployments are being expanded. The top industries (in order) adopting BPM and investing in BPA and BPMS products are banking, investments, insurance, government, telecommunications, media/publishing, real estate/property management, universities, utilities (electricity and water especially), and oil and gas. In late 2009, we have seen manufacturing industries, both discreet and process, begin to investigate BPM. CPG and pharmaceutical industries are also now asking questions about BPM. BPM generates sure fire benefits and we keep seeing the fruits of BPM investments at a 15%+ internal rate of return.

BPM is a Serious Mirage:

It isn’t business process management that is generating all the success: it’s great expectation setting, sensible project scoping that is lead by the business. Business has to be involved because they are responsible for business results and they will manage it better than IT. If you used these solid project management techniques with any effort, you would see benefits. BPM is hogging all the headlines. Give someone a good set of designers and coders with these techniques and they could deliver cost savings and great project results. Yes, you would probably use a process model for communication, but wouldn’t need a BPM tool for these lovely benefits.

I think it’s a combination of process model driven BPM methods and technologies and great project management lead by business types that is meeting at the same point in time and delivering impressive results. BPM is delivering, but when it is supercharged with great business led project management, it is worth a bigger bet.

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Category: BPM Business Proces Improvement     Tags: BPM, business Process Improvement

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