BPM (implementation)

Today's economic situation puts before the management a number of questions and problems, for example, such as minimization of expenses and increase in income. Implementation of performance management systems at the solution of these tasks renders the help which is difficult for revaluating. However often interferes with the most productive use of the BPM solution a lack of necessary knowledge among users of a system.

Analytics

Specialists of BPM Partners company carried out the analysis of responses of the existing and potential clients of BPM. Identification of top trends in the field of performance management and perspective for developers of such systems was a research purpose. 1,951 respondent was subject to poll. 58% of participants of a research represent category of the small and medium companies, 42% are representatives of large business. The most part of respondents (89%) — residents of the USA, the majority of which works in finance, technical and operations departments. The heads and persons playing an important role in the organization made most of participants (38%). The main number from them hold the leading post in business or financial activities (31%). Only 15% of respondents represent IT departments of the organizations. Middle managers of different divisions were the others.

BPM projects today

Among large and medium-sized companies from among respondents of BPM Partners there are 82% or finished implementation of the BPM project already fully, or are going it to implement, or are at a development stage. 38% included integration of a BPM system into the general IT architecture of the company into plans for the future. Only 8% announced the end of project integration. Among experts the opinion takes place that for many companies performance management is represented the developing project which cannot be completed up to the end: it requires permanent updates and implementation of add-on modules.

About 30% of the respondents representing the large companies are at a stage of active implementation of BPM. The others were distributed as follows: 7% — will organize replacement of already existing solution, 63% expand possibilities of the implemented applications.

In the small companies more than 50% of projects of performance management have small starting date of development.

In case the company did not begin implementation of BPM yet, as the reason the lack of financing (32%) most often is declared. Also essential obstacle are other priorities regarding expenses at the moment (32%), including incompleteness of ERP-(12%) or DW projects (20%). In 2007 this factor was less significant (26%).

It should be noted that the problem of "the insufficient involvement of the management" faded into the background though it was very relevant before (24%, in comparison with 38% in 2007 and 35% in 2006). At the same time number of the companies which "are not convinced of advantages" by BPM (24% in 2008, in comparison with 35% in 2007, 41% in 2006, and 38% in 2005) and "are not sure of payback" (15%, 17%, 22% and 25% in 2008, 2007, 2006 and 2005 according to) were considerably reduced. Clients come to understanding and understanding of value of performance management, bringing this technology to the forefront.

Purposes of BPM

Analysts of BPM Partners put forward opinion that implementation of main advantages of BPM becomes usually paramount task, and in the most vista shot the priority promotes efficiency of the organization.

Decreasing on importance degree, reduction of labor and monetary costs, improvement of quality of operations analysis and reduction of financial cycles respectively follow further. Accomplishment of regulatory requirements and achievement of competitive advantages are rather often mentioned.

Purposes of clients of BPM

It was noticed that the purposes of BPM for the large and small companies have differences. For the large companies business performance is on the first place, and only then there is a cost reduction. On average and small business cost optimization is most important. Accomplishment of regulatory requirements mainly interests the large organizations. In turn, the small companies especially need "development of operational analytics" and "reduction of financial cycles". About here problems of strategic approval, consolidation, standardization, uniform data view, the involvement of the management and competitiveness have the identical importance for all categories of clients, being considered at the same time as secondary.

The sizes of the company and motivation to purchase

In addition to increase in efficiency of business and minimization of expenses, the large companies refer budgeting, planning and operational analytics to the most significant purposes.

The major BPM components

According to specialists of Gartner, budgeting, planning also usual belong to the most demanded of BPM functions. Further on decrease of the importance the financial statements, consolidation, management of strategy and modeling of profitability follow. But clients assume that additional functions step by step will be entered into use in the near future.

Recently there were significant changes in the list of suppliers and expansion of opportunities of BPM products. However, despite it, by Gartner company the explicit growth of use of strategic management and modeling of profitability for the last year is not mentioned. And still clients address assessment of BPM packets and scales of potential implementation even more often. The most composite functions of BPM to which it is possible to refer management of strategy and modeling of profitability attract interest of the customer at product assessment less often. It is a consequence of the fact that the most part of users refuse outdated applications or spreadsheets and for the present have no clear vision, of structure and opportunities of advanced applications and of how they should be entered into the general IT architecture. As result, giving preference to more difficult product, the company applies it only for the purpose of automation of outdated processes, without getting all potential benefits of a system.

Popular techniques

One of the most popular techniques among a set of BPM tools is the balanced estimated panel or the balanced score card. It is used by 35% of the large companies and 24% of all respondents. The analysis which received application for 23% from all respondents is recognized one of the most widespread applications functional and cost.

Criteria of the effective project

• Hit in joint ^[1]
• Fast business effect
• Obtaining the working solution in short terms
• Possibility of modification of process without its stop
• Automation value for employees
• Accurate observance of functional and cost borders

Project planning

Important indicator at implementation of a BPM packet is time spent for preparation, planning and a research of the project. 55% of survey participants gave over a year on planning and a research, from them a half more spent more than two years.

Time for planning and implementation of the project

In the large companies projects are different on duration. At an average kompaniyaa about a year on researches, 6-12 months on development of the strategic plan leaves, up to 3 months working off of requirements, 6-12 months occupies the choice and the description of the main performance indicators, to 3 months assessment of suppliers and over a year – implementation and deployment.

Needless to say that implementation and deployment are the longest stages. It is clear, that the company should approach seriously BPM projects that guarantees effectiveness and payback.

Before the project

• Gather a project team from the interested employees (it is better - employees from different divisions)
• Select processes managerial, the main and service
• Within a project team to discuss processes, their problems
• Decide on requirements to the platform of automation
• Define priorities of implementation of processes
• State all this in documents

Implementation project

What the project consists of:

• Inspection \analysis
• Development and approval of the project plan
• Breakdown by circuits of works
• Formation of documents on the project
• Implementation of the project solution
• Test operation
• Commercial operation
• Maintenance, support, development

Advantages of planimetric approach

• Quick entry in operation of functionality
• Intermediate results of works 2-3 times a week
• Fast adaptation to functionality of users
• Reduction of risks of change of business in the course of implementation
• The distributed financial loading
• Payment for result necessary today
• Business is a direct participant of development

About circuits

• The first circuit – it is desirable short term and fast result
• The second circuit – basic processes in which a large number of employees of the company participate. The longest and difficult.
• The third circuit – management processes.
• The completing circuit – service processes, completion of points of integration.

Relevance of implementation

BPM becomes more and more popular and mass technology, it gets considerable support of the management. The number of the projects which are at a development stage steadily grows. Even the small companies will successfully test use of this technology for maintenance and improvement of competitiveness.

Customer satisfaction during the period from 2005 to 2008

In general, projects of performance management usually pass today successfully. 68% of survey participants say that all requirements and expectations were met, 21% claim about prematurity of any outputs. Only 10% showed discontent with results. However, and this digit reminds of need of serious approach to planning, design and implementation once again.

The Gartner company also conducts survey concerning client experience with a number of suppliers. During 2008 131 comments from 27 countries reflecting experience of the companies which income is from 50 million to 100 billion US dollars and the number of users of BPM in these companies were received from 10 to 3000 fluctuates.

Results of assessment fluctuate from 1.42 to 2.64, and the average result is 1.91 points (1 is accepted as the maximum satisfaction, 5 — complete dissatisfaction with result).

These data almost completely match that were received in 2007. The main similarity was shown in the field of finance and management, the reporting under financial performance, in the field of all-corporate implementation small growth takes place. Besides, use width BPM in tactical targets at the level of divisions also increased. Most often it is observed in case of fast replacement of spreadsheets by ready BPM-applications. In process of maturing the technology is beyond finance and covers other spheres of activity among which sale, transaction IT HR, customer service marketing, researches, distribution, production, etc.

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See Also

• BPM

Notes