Skip to Content

Research studies (EFQM) and surveys reports (McKinsey) towards the ROI of BPM show increased revenue with 35% and reduced costs with 30% and an agile organization which is able to quickly adapt to changed market situations. But how can you determine the actual BPM benefits for a specific company and at which BPM costs? 

In Part 1, I defined the BPM framework. This BPM framework contains 16 BPM process areas in which you will have BPM benefits and BPM costs when BPM (Business Process Management) is implemented. 

The current situation can be determined using the BPM maturity levels as defined by CMMI and more or less applied within BPM maturity models like OMG and EFQM.The generic principles of the CMMI maturity levels are as follows:   

image
 

Figure 1: BPM generic BPM maturity levels  

The higher the BPM maturity level (alignment) of the organization the more benefits the organization will gain by the formalization, harmonization, standardization, integration and optimalization of Processes, Procedures, Policies, People, Planning, Production, Products, Projects, Platforms, .. 

For every of the 16 process area’s there are (benchmark) reports available which indicate the BPM Benefits, the BPM projects and BPM tools required to reach (and stay on) the next BPM maturity level. 

Based on the principles of the enterprise BPM framework and the principles of the BPM maturity levels, it is possible to create a standard set of BPM maturity questions and a predefined BPM ROI calculation model for each BPM process area. 

The BPM Business value is not determined by the sophistication of the technology but it is determined by the contribution towards a higher maturity level and by the value it delivers to the business objectives of the BPM stakeholders.  

Every BPM process area has a different BPM stakeholder with different business objectives. For every process area of the BPM framework a BPM stakeholder can be determined. An example of the BPM stakeholders is the following:

image

Figure 2: BPM stakeholders  

The cost of BPM is determined by the BPM projects and theBPM tools which are required to reach the next BPM maturity level. The BPM tools should be utilized to ensure that the organization stays on the next maturity level to make sure that the BPM benefits can be capitalized every year.  

When the BPM business benefits case is validated by the BPM stakeholders,the ROI of BPM becomes clearer to the organization and the BPM roadmap will get more support from the business. 

In the next Blog, I will elaborate on the BPM projects and BPM tools which are required to reach the next BPM maturity level.

To report this post you need to login first.

3 Comments

You must be Logged on to comment or reply to a post.

  1. Suryanarayanamurthy Ayyalasomayajula
    Hello Frank

    This is a good article depicting the 16 process areas of the BPM framework and the Maturity levels as per CMMI.

    I feel that the information is largely available spread across various forums.  But it is to be clearer from customer point of view on how and where to start on the BPM journey.  As it can be felt that from an enterprise level, there should be simpler and holistic way so that it does not consume more resources and time for a customer to determine whether he should go for BPM implementation.

    Also it is very clear that the BPM implementation would be more synergized if persisted along with SOA adaptation.

    Can we see more details on which tools/products enable various stages and aspects in the BPM journey?

    Regards
    Surya

    (0) 
    1. Frank Luyckx Post author
      The implementation of the complete enterprise BPM framework can take many years. Most companies start with the creation of the corporate process model (process area = process design), this takes a lot of time and effort.

      The benefits of BPM are generated when the corporate process model is imbedded within the organization and reused within other projects.
      To fully utilize the benefits of BPM, a BPM roadmap must be created based on the BPM vision within each of the 16 process areas of the enterprise BPM framework.

      The starting point for SOA projects is also the definition of the corporate process model, the technical integration with the SOA service repository is included within process area BPM configuration management.

      In the next blogs I will include more tools/products required for the various stages of the BPM Journey.

      Greetings Frank

      (0) 
  2. Suryanarayanamurthy Ayyalasomayajula
    Hello Frank

    This is a good article depicting the 16 process areas of the BPM framework and the Maturity levels as per CMMI.

    I feel that the information is largely available spread across various forums. But it is to be clearer from customer point of view on how and where to start on the BPM journey. As it can be felt that from an enterprise level, there should be simpler and holistic way so that it does not consume more resources and time for a customer to determine whether he should go for BPM implementation.

    Also it is very clear that the BPM implementation would be more synergized if persisted along with SOA adaptation.

    Can we see more details on which tools/products enable various stages and aspects in the BPM journey?

    Regards
    Surya

    (0) 

Leave a Reply