Looking Beyond Process to Business Value

{ article }

Business Process Automation

Living in a changing business ecosystem

The business environment in 2016 is markedly different to the world we lived just 10 short years ago. We are focussed on providing business value in everything we do.

We are seeing increased globalization, increased regulatory constraints and greater competition from a much wider business ecosystem. In the face of these changes it is essential that businesses optimize their operations in order to achieve a high level of operational excellence.

The business differentiator

In a world where we are experiencing an increasing commoditization of services and products, the biggest differentiator for any enterprise is likely to be the way they operate.

Organizations are able to differentiate themselves from the competition by defining and utilizing effective business processes. These processes have the ability to seamlessly manage the interactions between customers, employees and systems. This can be turned into a competitive advantage when processes are able to be changed quickly in response to evolving market conditions or regulatory changes. Effective business process management (BPM) will allow you to make changes quickly, consuming minimal time and cost.

Continuous business improvement

BPM gives organizations the ability to automate and optimize their processes and to continually improve the way they do business. When this is done effectively there are a number of advantages that will be gained:

  • The business will become more flexible and agile
  • Information to enable better decision making will be readily available
  • Processes will operate faster, efficiently and with added reliability
  • New products and services will be delivered in fewer cycles
  • Customer service will improve

Adapt or disappear

The new digital economy has created a business environment where if you are not able to adapt to new market conditions swiftly, your business is unlikely to survive. The ability to change direction without losing momentum is underpinned by strong BPM.

It is essential that we understand that BPM does not belong in the IT domain, it is an enterprise wide capability and, as such, its governance belongs at the highest level of the business.

A concentration on the procedural aspects of BPM has limited its acceptance by the wider business. Talking of process artifacts, like architecture and models does little to sell the concept to the enterprise. It is time to talk about the value that is delivered by effective BPM.

Value driven business process management

The concept of value-driven business process management (VBPM) crosses the divide between the IT understanding of process and the outcomes that the business expects to achieve. This is where the business can see how BPM can contribute to the strategic agenda of an organization, how it can make processes tangible and help to overcome classical business conflicts.

Classical BPM is normally driven by activity. Organizations who follow this approach to BPM are likely to have mature tools and methodologies, but there is a good chance that they will be lacking alignment between BPM and the business strategy. This means that, although will have a clear understanding of their process architecture and models, they probably have a limited understanding of exactly what impact BPM has on the bottom line for the business.

When an organization moves to a value driven approach to BPM the desired business outcomes will be considered first and the process design will be completed in a way that facilitates these outcomes.

David Mainville

David Mainville, CEO and co-founder of Navvia, is a passionate advocate of Service Management and a frequent presenter, blogger and well known member of the ITSM community. With over 35 years of experience, David has held progressively senior technical and management roles allowing him to "connect the dots" between the Business and IT. At Navvia, David leads the charge to bring innovative ITSM solutions to market focusing on Product Development, Marketing and Operations.

• Posted by David Mainville on Oct 17, 2016
• Filed under Articles
• Tagged with

Share this post