Stretched Companies Spotlight Business Processes in a Bid to Drive Growth

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Paris, May 15, 2012 – Capgemini, one of the world’s foremost outsourcing, consulting and technology services providers today revealed the findings in its Global Business Process Management Report. A study of over 1,000 Senior Business and IT decision makers including CEOs and CIOs worldwide reveals that in the current economic climate, business process management is increasingly viewed as a C-level concern, as companies look internally to improve their margins, efficiency and productivity. In challenging times, executives believe that Business Process Management* (BPM) can help deliver the costsavings that are crucial to maintaining healthy margins – over 60 per cent of participants from the study believe BPM should be managed directly by the executive board. And interest in BPM is on the rise – over half believe their organization will place greater emphasis on BPM in the next year, while 68 per cent say that if the economic climate continues to be challenging they will invest in it more**.

The report reveals that BPM is of particular importance in banking, insurance and private equity, where recent increases in regulation, such as MiFID and Basel III, mean that compliance is paramount. Over three quarters (78 per cent) of the survey respondents from the financial services sector identify compliance as a key driver for their business, and 48 per cent will be investing more in the coming year to respond to regulation – this is driving interest in BPM which offers ways to both manage compliance issues and at the same time increase business value. In the changing economic environment, BPM can also help deliver greater business agility, optimize time-to-market and respond more quickly to market changes: 4 out of 5 respondees (78 per cent) who implemented BPM to improve the flexibility of their organization reported a positive impact. Process management can also play a part in improving standardization, automation and monitoring staff activity, which is of particular concern, especially in the aftermath of several incidents of rogue employees in the financial sector: 79 per cent of those who introduced BPM to improve transparency and performance management reported a positive impact on business.

A further factor driving BPM is the explosion in social channels such as Twitter to interact with customers. Over half (56 per cent) identify harnessing opportunities and managing the threats of social media as an important business driver, and these challenges can be addressed via BPM solutions. For consumer facing businesses, CRM is increasingly delivered on the back of process management solutions – 78 per cent of those respondents who implemented BPM to improve CRM and customer interaction reported a positive impact.

Bob Scott, Head of Capgemini’s Business Process Management Global Service Line concludes: “Increasingly Inside-Out pressures for enterprises such as cost and efficiency are being counterbalanced by Outside-In pressures to be more flexible, compliant and customer centric. BPM is fast becoming a crucial part of the Business Applications landscape across all sectors. With devolved budgets, CIOs need to take an active role in the definition of the BPM strategy for their organisations. Clearly BPM has reached a tipping point. Forwardthinking organizations will be increasingly focused on it and leveraging its new technologies, while companies that don’t engage with it risk being left behind.”

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More broadly, process management is proving to be a solution to the need to drive productivity at a time when companies are looking to grow but finding that investment is at a premium. Three quarters of companies (74 per cent) said that process management boosts staff satisfaction – helping to reduce task duplication and improve internal organization – leading to a happier and more dynamic workforce. For example, manual processes in a financial services company which are standardized and computerized can dramatically improve productivity and employee morale. These benefits mean that despite budget constraints, over half of businesses (56 per cent) are anticipating increasing investment in maximising internal cost-efficiency over the next 12 months.

According to Gartner Inc., “Process change — the act of altering business processes to better meet business requirements — is a mainstay of business that is driving significant investments in time, intellectual horsepower and computing assets. To cope with the many different paces of process change, enterprises have embraced various business process improvement (BPI) techniques, and many have found significant value in applying the management discipline of the newest and most visible BPI technique: business process management (BPM).”*

But while many organizations are realizing the importance of process management, there are still improvements to be made. One concern is the lack of understanding as to who should hold the reins over budget for BPM. The survey reveals financial management of BPM is split between IT (16 per cent), senior business management (18 per cent), operations (13 per cent), business units (13 per cent) and dedicated process management units (12 per cent), which could ultimately undermine its effectiveness. Outcomes are also varied with only one in five companies (18 per cent) saying that they have achieved process optimization and a third (32 per cent) are failing to formally measure the ROI of their process management effectively. The majority (55 per cent) highlight that the key barrier is that people are working in silos across organizations, preventing collaboration.

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*Gartner, Inc., BPM Survey Insights: Business Process Management Matures as Process Change Becomes More Ad Hoc, Michele Cantara, June 28, 2011.

About Capgemini
With around 120,000 people in 40 countries, Capgemini is one of the world’s foremost providers of consulting, technology and outsourcing services. The Group reported 2011 global revenues of EUR 9.7 billion. Together with its clients, Capgemini creates and delivers business and technology solutions that fit their needs and drive the results they want. A deeply multicultural organization, Capgemini has developed its own way of working, the Collaborative Business Experience™, and draws on Rightshore®, its worldwide delivery model.
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Capgemini launched its Business Process Management Global Service Line in March 2011. Capgemini’s BPM methodology is employed to solve business challenges across numerous sectors ranging from case management in the public sector, claims transformation in insurance, order management in the telecommunications industry and lending transformation in financial services.

About the Global Business Process Management Report
The Capgemini Global Business Process Management report was carried out in conjunction with FreshMinds Research. FreshMinds conducted two phases of primary research which informed the final report. During the initial quantitative phase, 1141 senior Business and IT decision makers from 11 markets worldwide* completed a 30 minute survey. This tackled respondents’ understanding and practical experience of Business Process Management, in the context of their wider approach to business. The respondents were drawn from a range of different market verticals. The second, complementary phase of primary research was a series of 30 in-depth qualitative interviews with senior business decision-makers. These individuals were selected for their interest in the subject, from a cross-section of different geographies and sectors. They were drawn from the expert networks of both Capgemini and FreshMinds.

Nordics (Sweden, Norway, Finland, Denmark)

* Business Process Management (BPM) is a holistic end-to-end management approach which treats business processes as assets that can directly contribute to a company’s business value and performance. It promotes  business efficiency while striving for innovation, automation, compliance, customer centricity and business agility.  Capgemini BPM solutions draw on 40 years’ experience in advancing clients’ business technology and management  processes, combining deep domain knowledge with a pragmatic attitude to working in partnership with its   customers.Capgemini uses five steps to help reduce costs and make organizations more innovative and agile  including: value and performance management, accelerated business analysis, leveraging BPM Technology, unified process improvement and end-to-end BPM governance.
** Among respondees who are already considering investment in BPM in 2012