Digital Edition

SYS-CON.TV
The Value of BPM Software
A business and technical perspective

Business process management (BPM), and the information technology systems that support it, are defined in many different ways. Business process management software (BPMS) is the enabling technology to define, digitize, execute, monitor and optimize global business processes. It automates the end-to-end business process, encompassing people and system activities, across multiple organizations and supporting applications and, to quote Webster, "delivers a particular and consistent result."

From a technology perspective, that result is increased levels of straight-through processing and flawless escalation and exception management. From a business perspective, that result is lower operating costs, lower IT costs, improved customer satisfaction and increased revenue.

The Three Fundamental Concepts of Business Process Management
Since most organizations process orders, let's illustrate the fundamental concepts of BPM by using a sample process. Since most organizations process orders, we will use the order-to-cash process as an example (see Figure 1). While the individual tasks that make up this process will vary by organization, the common tasks usually include proposal generation; order management; credit operations; manufacturing and distribution; invoicing and accounts receivable operations; and electronic payment and collections.

Fundamental Concept #1: Organizations Have Very Few Core Processes
At the enterprise level, most organizations have a small number of core processes. Product design, manufacturing, customer acquisition, order-to-cash and customer support represent the core processes for some manufacturers. Each of these core processes decomposes into many sub-processes and scores or hundreds of tasks.

The fundamental point is that, with apologies to the application vendors, sales force automation, accounts payable, procurement, supply chain and warehouse management are not processes. Each is a set of activities such as a workflow or sub-process that while important, must be viewed within the context of the core process it supports. Using the order-to-cash process as an example, an organization can not realize much value with its perfect order management application when the distribution systems it uses inaccurately ships products to the customer. World-class organizations optimize the end-to-end or core process.

Fundamental Concept #2: Few Processes Are Completed Within Your "4 Walls"
Given today's virtual business models, process management is increasingly complex as it spans the extended enterprise. Few, if any, core processes are executed totally within a single company.

The combination of outsourcing, dynamic supply chain management, electronic commerce and ever-increasing government regulation dictates that the execution of end-to-end processes crosses multiple departments within your company and the full spectrum of suppliers, customers, regulatory agencies and outsourcing vendors.

These extended processes span not just organizations and people, but all the supporting IT systems and applications as well. The digital collaboration with trading partners and customers has an impact on business performance that is matched only by the challenge of managing processes that span so many organization and system silos.

From a process management perspective, the problem is not the execution of rules and workflows that are defined in an application that support the core process. Rather, the challenge is the handoff from one organization to another or from one application to another. In the order-to-cash process, a company can do a perfect job managing the customer buying experience; however, if it then turns the order fulfillment and distribution over to a third party that performs poorly, the end result is an upset customer who will dispute the bill, make calls to the support center and be less likely to make a repeat purchase. In short, a sub-process might be perfect, but the core process is far from optimal.

Fundamental Concept #3: There Is A Big Difference Between Process Automation and Process Orchestration
At this point, most application vendors are thinking that they do a great job of process automation.

About Richard Mattock
Richard Mattock has more than 20 years of experience in defining, designing, developing and selling enterprise software. Joining Fuego in 2002 as the Director of Product Marketing, Mr. Mattock brings the Process Owners point-of-view to Fuego's product lines with his knowledge of decision sciences and process improvement. As the VP of Product Strategy, Mr. Mattock is responsible for all aspects of Fuego's product definition and delivery to market - working closely with the development and sales/marketing organizations.

In order to post a comment you need to be registered and logged in.

Register | Sign-in

Reader Feedback: Page 1 of 1



ADS BY GOOGLE
Subscribe to the World's Most Powerful Newsletters

ADS BY GOOGLE

In this presentation, you will learn first hand what works and what doesn't while architecting and d...
Your homes and cars can be automated and self-serviced. Why can't your storage? From simply asking q...
Creating replica copies to tolerate a certain number of failures is easy, but very expensive at clou...
"This week we're really focusing on scalability, asset preservation and how do you back up to the cl...
"I focus on what we are calling CAST Highlight, which is our SaaS application portfolio analysis too...
"We work around really protecting the confidentiality of information, and by doing so we've develope...
"Software-defined storage is a big problem in this industry because so many people have different de...
"Our strategy is to focus on the hyperscale providers - AWS, Azure, and Google. Over the last year w...
Data is the fuel that drives the machine learning algorithmic engines and ultimately provides the bu...
"We're focused on how to get some of the attributes that you would expect from an Amazon, Azure, Goo...
Andi Mann, Chief Technology Advocate at Splunk, is an accomplished digital business executive with e...
Explosive growth in connected devices. Enormous amounts of data for collection and analysis. Critica...
"We're here to tell the world about our cloud-scale infrastructure that we have at Juniper combined ...
In his session at 20th Cloud Expo, Brad Winett, Senior Technologist for DDN Storage, will present se...
Hardware virtualization and cloud computing allowed us to increase resource utilization and increase...
"Cloud computing is certainly changing how people consume storage, how they use it, and what they us...
In his general session at 19th Cloud Expo, Manish Dixit, VP of Product and Engineering at Dice, disc...
Without a clear strategy for cost control and an architecture designed with cloud services in mind, ...
DXWorldEXPO LLC announced today that the upcoming DXWorldEXPO | CloudEXPO New York event will featur...
The best way to leverage your CloudEXPO | DXWorldEXPO presence as a sponsor and exhibitor is to plan...