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:
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:
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.