Bpm Value for Manufacturing v2

8/9/2019 Bpm Value for Manufacturing v2

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Sizing The BPM Opportunity ForManufacturin

Clay Richardson

Senior Analyst

Forrester Research


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Clay RichardsonSenior Analyst

Forrester Research

Serving Business ProcessProfessionals

3 Entire contents 2009 Forrester Research, Inc. All rights reserved.


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I heard this BPMthing might help us

reduce costs.

BPMBPM O enO en 40%40%SourceSource SaaSSaaS



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Diverse factors trigger firms to investigates po en a

Which of the following have been major drivers foryour BPM initiative?

5 Entire contents 2009 Forrester Research, Inc. All rights reserved.Enterprise And SMB Software Survey, North America And Europe, Q4 2009

Survey of 227 Enterprise and SMB IT Decision Makers


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Manufacturers demand BPM for standardizing

42%

36%

34%


Surveyof2227SMBandEnterpriseITDecisionMakersinQ4of2008


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What we hear common drivers for BPM

SEC audits have raised concerns over inconsistent and

undocumented business practices

enterprise level due to rapidly changing regulatory

environment (Model audit, 38a-1)

Process standardization will be difficult with our currentset of development tools for custom software

development



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So, what exactly is

management?



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Defining business process management

Business process management focuses on continuousim rovement of cross-functional end-to-end business

processes Process improvement methodology and disciplineessential ingredients for success

Requires a specific set of process skills and talents in

BPM suites and other technology can greatly accelerate



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Dont let the BPM term confuse you


October 2008 Drive BPM Initiatives To Higher Business Value


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BPM is now the language of IT-to-BT

Vertical/ Functional/ rocess Process/functional Service/ rocess

functional overlays overlays organization

From traditional To Horizontal

LOB and functionalmanagement

Centers ofExcellence

11 Entire contents 2009 Forrester Research, Inc. All rights reserved.Source: BPM Focus (www.bpmfocus.com)


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BPM center of excellence drives process

*Base: 46 IT architects and 65 IT architects


Source: October 2007 US And UK Enterprise Architecture And Business Process Management

Online Survey

(percentages may not total 100 because of rounding)


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Process improvement tasks and functional

13 Entire contents 2009 Forrester Research, Inc. All rights reserved.Source: June 20, 2008, The BPM the BPM center Is Here: Now What?


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Wheres the money for

to come from?



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ROI metrics for BPM success



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Efficiency Benefits

Benefit Example

Eliminate Manual DataEntry

Reduction in time to add a new employeerecord into the HR system from 9 hours to 10minutes

Reduce Process Cycle

Time

Reduction in compensation processing timing

for 12,000 sales reps from 33 days down to 7.

Reduce Manual Analysis/Routing

Elimination of 80% of the manual workpreviously required to route invoice

teams.



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Effectiveness Benefits

Benefit Example

Handle Exceptions Fasterand Better

Evolve process from saving 5% of distressedshipments to saving 70% - yielding $2M perquarter in saved revenues.

Make Better Decisions Better review process results in $3M saved inbilling dispute write-offs that would formerly

just been processed because the process was.

Consistent Execution Customer satisfaction improvement to 92%based on proactive tasks that help ensure thehome loan rocess executes better and faster



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Agility Benefits

Benefit Example

Faster RegulatoryCompliance

Change customs related processes afterSeptember 11, 2001 within 90 days to complywith new federal re ulations for bettershipping visibility.

Su ort New Business Abilit to chan e shi in artners within 10Models minutes in core process allows manufacturer

to change primary shipper every quarter based on best bid provided.



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Example: ROI of Correspondence



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Example: ROI of Correspondence

anagemen con .



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How to demonstrate the value that governance

and cost overruns prior to the implementation of the BPMfunction.

requirements defects discovered during testing and afterthe solution is in production prior to the implementation ofBPM.

Project portfolio value Prepare reports that provide theinvestment costs and expected value of the portfolio of

Report actual valuenew solutions add to the organizationas compared to the expected value predicted in the


.


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How does BPM fit in

technology portfolio?



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1st: Identify the characteristics of your key



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3rd: Explore where BPM fits within your current

m x o app ca ons



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Process standards facilitate intra-department

commun ca on an co a ora on


Source: http://www.bpmn.org/Samples/Elements/Core%20BPMN%20Elements.htm


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Recommendations

Understand that BPM focuses on methodology and

Connect your ROI and business case to corporatestrate to minimize waste and maximize im act

Evaluate your process requirements to identify which

BPM attern and tools are best fit



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Recommended research

April 2010, Pegasystems Acquires Building Blocks-

January 2010, Lean Business Technology MaturityMatrix For BPM Governance

December 2009, Dynamic Case Management - An

Old Idea Catches New Fire

October 2008, Drive BPM Initiatives To HigherBusiness Value



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Thank you

Clay Richardson

+ . .

[email protected]: passion4process

www.forrester.com


Documents

Bpm Value for Manufacturing v2