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Capping IT Off

Opinions expressed on this blog reflect the writer’s views and not the position of the Capgemini Group

The business value of BPM: Is BPM as good as coffee?

Category : BPM

“So actually, BPM prepares your coffee every morning?” This is the first comment I heard from the audience at a recent BPM selling presentation I attended. Why did the client ask this question? Was he just joking?

Clients care about business value that translates into gains for their company. This is what BPM is all about: higher net profit for the company and better services delivered to their customers. But we need to prove it, right?

BPM is all about business. BPM is not just “software”, it is actually a management philosophy focused on delivering real value to the business by optimizing processes. More organizations are realizing that BPM gives them better end-to-end visibility, allowing them to drive their business according to KPIs and SLAs, and optimizing business performance.

BPM uses different technologies to solve many companies’ business issues like responding rapidly to changing customers’ demands, managing product and service portfolios efficiently, enforcing Key Performance Indicators (KPIs) and Service Level Agreements (SLAs), managing complex processes and systems, and fighting global competitors.

Some of my colleagues explain BPM like this: “If you are driving a car, what do you want to look at? To the rear mirrors or to the front and your dashboard? Some technologies like Business Intelligence (BI) enable you to explain the historical data: last year’s sales, last month’s new customers, last week’s claims etc. But, instead of explaining why you sold €8 million of business when you were supposed to sell €10 million, wouldn’t you prefer to know how your business is performing in real-time at this second and be able to drive your business in order to actually sell €10 million? Only BPM enables companies to do this.

Let’s look at visibility first. BPM gives visibility of what is going on inside business processes in real-time. This visibility enables us to monitor the KPIs and SLAs, and answer a wide range of questions, such as: How many new accounts were opened during this particular time? Are we performing above or below the KPI? Which region is selling more? Which process is causing a bottleneck, how many transactions are blocked in and how much money do they represent? How many claims were received and how many have been resolved? How many loans are waiting for approval and how many were rejected?

All of these questions and more can be answered in seconds thanks to BPM activity monitoring. This means better visibility of business environment metrics and the integrated value chain, which includes forecast, supply, production, distribution, sales, invoicing, and customer service.

Moving on, BPM also allows managers to drive the business based on KPIs and SLAs. For example, in loan processing there are usually a lot of manual and paper-based activities. BPM replaces paper with electronic forms or scanned images that are automatically routed through the process. So if the marketing department launches a campaign promising loan approval in one day, BPM can automate that process and ensure adherence with SLAs.

The front office will start filling in the electronic application with the customer’s general information, then the electronic application would be automatically sent to the back office for validation stages, then it would be sent to the loan approval department, and so on.  If one back office agent is too busy, automatic rules can assign the application to another back office agent. If the loan amount is too important or if an application is taking too long to validate, an automatic message would be sent to the supervisor for him to approve. If work starts to accumulate, the business rules-based system can automatically assign the electronic application by priority order to the various back office agents.

As for optimizing business performance, as shown, BPM helps companies to drive their business according to specific objectives. BPM would enable the loan company to follow and manage each loan application in real-time through the whole approval process. Managers would be able to identify the products and the business units which are performing well, helping them to take better and faster decisions in order to increase business performance according to KPIs and SLAs.

Capgemini’s BPM solution promises end-to-end continuous improvement for superior business performance. Our approach is based on visibility, and the capacity to drive and optimize business according to KPIs, and it delivers real business value. We collaborate with our clients to transform business processes into valuable activities for their organizations, helping them to:

  • identify high-impact opportunities
  • define the best approach to exploit these opportunities (business + technology)
  • implement solutions and continuous improvement
  • implementImplement change management and self-sufficiency.
Our BPM approach helps companies to deliver better services to their customers, reduces costs and increases sales, which results in higher profits, and stronger and more sustainable market positioning.

BPM can do anything based on processes. It solves the BIG business issues, from account opening to loan management, from launching new services to managing aircraft landing at commercial airports and a whole lot more.

BPM is so GOOD that for me it actually prepares your coffee every morning...

Please follow the “Business Value of BPM” blog series and the PoV release (Point of View) where I will further discuss some of the best of Capgemini’s case studies touched upon above.

Gustavo AGUILAR PEREZ BPM Expert Business and Technology Capgemini Paris

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