Is BPM now a Tactical Play?

Is the future for BPM strategic or tactical? A recent client engagement has thrown into focus a debate that is beginning to emerge about the future of BPM. To give you some background, the client is looking for an expense management solution and is having an internal debate on whether to choose a prebuilt, off-the-shelf application or whether to build their own in house solution using a BPM suite. The accounting department, who will use the solution, are recommending purchase of the pre-built application, emphasizing speed of deployment and lower cost as their key motivating factors. The IT department, who hold the budget, are recommending acquisition of a BPM suite, motivated by the classic BPM reasons of process flexibility and extensibility into other departmental processes. The accounting department is thus looking for a quick tactical play; the IT department is looking at a longer term strategic play.

Is BPM Tactical?

Is BPM Tactical?

BPM has for a long time been regarded as a strategic play. It’s often said that successful BPM projects require both cultural and strategic change within organizations. Establishment of BPM centers of excellence, back office integration and the optimization of processes that cut across multiple departments all require that the organization and its employees are in sync and are willing to review established practices. But all of this takes time, effort and significant cost, creating barriers for widespread BPM adoption, putting the BPM suite out of reach for many smaller businesses.

Increasingly however BPM will be viewed as a tactical rather than strategic play. For example Forrester believe the smart process applications market will be a $35Bn market by 2015 and Gartner expect the business process as a service (BPaaS) market to have grown to $84.2Bn in 2012. While the figures may be so big as to be almost meaningless and a significant proportion of this market will not be BPM opportunities what is clear is that the market for on demand process applications is significant and growing rapidly.

In our personal lives we expect to download an app and begin using it in minutes and with no training. Increasingly we are expecting the same user experience in business. Today this is most apparent in the increased trend towards BYOD (Bring Your Own Device) and BYOS (Bring Your Own Software) and the exponential adoption of generic SaaS applications like SalesForce.com. It was inevitable that business process applications would follow this path.

Process On Demand

Process On Demand

The growing demand for pre-built business process applications is a challenge and an opportunity for BPM vendors. A challenge because any organization with process expertize in a specific market segment can now quite easily set themselves up as a business process outsourcer (BPO). An opportunity because ultimately prebuilt business process applications extend the market for process optimization from medium and large organizations to smaller organizations for whom the cost of a BPM application, development, training etc. is prohibitive.

While the classic strategic reasons for deploying BPM suites will remain, increasingly organizations will deploy process solutions for shorter term tactical reasons. In this tactical scenario the role for BPM will be as a cloud based, on demand, process delivery engine. The future for BPM is tactical.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s