The Consumerization of BPM

July 10th 2008 was a watershed date in personal computing. On this date Apple launched the App Store marking the first time that software applications could be purchased and installed onto a mobile device without having to sync with a PC or laptop. The App Store, launched with 552 applications, has now over 1 million apps. The launch of the App store wasn’t just a key moment for personal computing; this event also triggered fundamental changes in enterprise computing as well.

Our personal technology experience has changed our business IT expectations. The ability to download a game or a lifestyle software application in seconds and use it intuitively without recourse to a user guide is now taken for granted in our personal lives. When it comes to how we use software in our professional lives things have moved much slower. In the enterprise long software purchase lifecycles with large up front license and professional services costs still dominate. However this model is now under pressure from post pc employees frustrated with delays in software selection, approval, implementation and change timescales as well as business leaders determined to drive down upfront cost and total cost of ownership.

Consumerization

Consumerization

The consumerization of IT is the manifestation of employee desire to bring their personal IT experience into their working lives. Employees are increasingly creating their own technology solutions to address business problems. Bring your own technology (BYOT) has been most aggressively adopted by senior executives with Forrester reporting that 77% of executives buy their own hardware and 45% self-provision software. With this senior level endorsement BYOT is an issue that’s not going away for IT departments.

Into this brave new world steps the Business Process Management (BPM) suite. Established BPM practices are an anachronism in the post pc, consumerized business environment of today. Creation of BPM centers of excellence, the complexity of many BPM suites, heavy implementation, integration and professional services costs contrast greatly with the demands of the consumerized employee. Employees and executives are looking for a short term tactical play where previously BPM only offered a strategic one.

This too is now changing. Newly cloud and mobile enabled, today BPM suites now have the tools to respond to consumerization. Business Process as a Service (BPaaS) and Smart Process Applications (SPAs) are emergent BPM trends that represent the evolution of the BPM market to address the requirements of the post pc generation.

Rather than product or price, in the new millennium business agility and customer experience are the key competitive differentiators. Whether it’s a pop-up store or Instagram, where a $1Bn business was built on 13 people and scaled to over 14M users in little over a year using a variety of cloud technologies, the ability to rapidly deliver processes gives an organization the edge. Step forward consumerized BPM.

The BPM v Case Management Debate – this time it’s in the Cloud

It’s happening again folks. Just when we thought the BPM versus Case Management discussion had been finally put to bed Forrester have gone round blasting their car horn and woke the debate up with their publication today of their Smart Process Application (SPA) wave. In this sequel the debate has moved to the cloud.

Forrester define Smart Process Applications as packaged process apps that encompass many of the characteristics we associate with case management business processes including collaboration and variability. SPA characteristics include ease of use with the ability to be modified rapidly in response to changing business and market conditions. Crucially they expect the cloud to be the primary delivery infrastructure for SPAs making them easier to deploy, support and continuously improve.

Cloud Processes

Cloud Processes

However an already established definition, BPaaS (Business Process as a Service) exists for business processes delivered based on the cloud services model. So what’s the difference between a SPA and BPaaS? Are they the same thing? Are SPA’s a subset of BPaaS? Or are we about to have another debate over transactional versus variable business processes, BPM versus Case Management?

Is BPaaS BPM in the cloud and Smart Process Applications Case Management in the cloud? Are BPaaS applications high volume, cloud based transactional business processes and SPA applications lower volume, variable, knowledge worker focused processes in the cloud? Do we really need another term added to the cloud services model?

In my opinion SPAs will be viewed as a subset of BPaaS, as enhanced BPaaS functionality in the same way that Case Management features are viewed as enhanced BPM functionality today. In the same way that some BPM suites offer case management today some BPaaS platforms will be able to offer SPA capabilities and others won’t.

(P.S. Click here if you want a free copy of the SPA Wave)

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.

Forrester v Gartner and the Future of BPM

Long regarded as the software equivalent of the offside rule in football, BPM might just be starting to get interesting. At long last there appears to be some debate happening in the BPM world with a gap emerging between analyst firms Forrester and Gartner on how they see the future of BPM (and Case Management).

First of all Gartner applied the paddles to the BPM corpse earlier this year with the announcement of their iBPMs (intelligent Business Process Management suite). They state that a iBPMs suite has all the features of today’s BPMS complemented with more advanced technologies like advanced analytics, business intelligence, social media and mobile applications. iBPMS use cases will integrate more analytics, social and mobile capabilities into processes making them more intelligent.

Confusingly though Gartner describe iBPMs as a new usage scenario, stating that it should not be compared with their previous BPMS MQ, yet they go on to state; “Our research indicates that the IBO use case represents the future of BPM tools and is experiencing rapid adoption.”

If Gartner have revived BPM Forrester might just have lobotomized the patient, completely changing its personality and how we will view BPM moving forward.  In contrast to Gartner, Forrester have a leaner, packaged, application vision for BPM and have defined a new process category called Smart Process Applications (SPA). These are packaged process apps that encompass many of the characteristics we associate with case management business processes including collaboration and variability. SPA characteristics include ease of use with the ability to be modified rapidly in response to changing business and market conditions. Crucially they expect the cloud to be the primary delivery infrastructure for SPAs making them easier to deploy, support and continuously improve.

Forrester’s confidence in the SPA market is such that they have put their neck on the block stating that they expect Business Process Management suites to be renamed “smart process platforms”.

So what’s my view? Who’s right Gartner or Forrester?

The cloud and the app. internet, as is the case for many SW applications, is a game changer for BPM. In our personal lives we are used to obtaining SW on demand, with little or no configuration required. We will and increasingly are expecting the same of our business software.

Like the software equivalent of Mr. Creosote Gartner’s iBPMS vision sees BPM moving in a different direction, continuing to expand and devour every new or emerging business trend its path. But is a BPMS really the best place for advanced Business Intelligence, Analytics and Social media capability or is it better to integrate with best practice elsewhere?  By adding all of these capabilities are we not continuing to make BPM more complex? Gartner’s iBPMS is a useful BPMS capability reference but iBPMS fails to address many of the issues holding back the wider adoption of BPM suites.

Gartner View of BPM

             Gartner View of BPM

Business process on demand, whether we call it BPaaS or SPA is the future of BPM.  BPM suites will continue to play an important role but increasingly as a cloud based engine for the delivery of on demand pre-built process applications rather than as an on premise application.

BPM in the cloud and BPaaS/SPA transform the business case for BPM applications extending the target market to small and medium sized organizations.  Increasingly organizations will look to these pre-built, good enough, on demand process applications rather than deploy and design their own in house processes. As a result I think Forrester’s leaner SPA vision rather than Gartner’s bloated iBPMS view represents the real future of BPM.

Forrester View of BPM

                                                              Forrester View of BPM

 

Customer Experience in !ONLY! 2 Steps

Technology analysts and consultants don’t like to keep things simple. It’s obvious really since simple isn’t good for business. It’s much better to provide things like decision matrices, toolkits, 10 step programs and maturity assessments than to provide clear and concise opinions or recommendations.

So it is with Forrester’s recent customer experience book “Outside In: The Power of Putting Customers at the Center of Your Business”. The authors recommend a set of six practices for organizations that want to deliver high-quality customer experience namely: strategy, customer understanding, design, measurement, governance, and culture. While I agree that these are all important considerations if I was a business owner looking to quickly begin the transformation of customer experience and was told by an analyst that I had to carry out Design, Measurement and Governance, oh and while you’re at it change your culture as well I’d immediately think this is going to be too complex and costly. When it comes to customer experience are we over complicating things?

So it is with a little trepidation that I’m going to stick my neck out and say that rather than 6 practices or a tool kit or a matrix there are two, yes only two, steps to improving Customer Experience. These are:

1. Fix Broken Processes.

Customer experience is often defined as how customers perceive their interactions with your company. The key word here is interactions. Each one of these interactions is a business process. Many of Customer Experience leaders just execute their business processes properly. I don’t enjoy shopping on Amazon or visiting Tesco but I return because they deliver their services efficiently.

  • Take the customer journey and ask yourself is this process working fine or does it need fixed, could it be simpler? Then move on to next process. Simplify business processes where possible. Ensure consistency of approach across multiple channels.
  • Automate business processes where appropriate in order to free up your employees to focus on the customer and where they add most value.

This brings me to my second step.

2. Empower your employees

It is impossible to predict and to define a process for every customer scenario. Customers are unpredictable. This is where you need your employees to fill the gaps your processes can’t reach. But they can’t fill the gaps unless they are permitted to do so.

Does your employee really need approval to provide compensation for poor customer service? Does he or she need approval to match the offer of a competitor? Do your employees have all the customer information they need to make a decision?

We know customers hate having to talk to multiple agents, rude or inexperienced staff and being kept on hold. They love professionalism and getting issues resolved at the first point of contact.  You won’t achieve any of this if your employees aren’t empowered. Your employees are the face of your organization, do you really want that face to be a demotivated, inflexible, rude one?

So how do we start to empower employees?

  • Devolve as much of the non-strategic decision making from the center of the organization to the periphery and to your customer facing employees. For example customer compensation decisions, renewal decisions, process changes can all be carried out at the edge of the organization.
  • Address customer data siloes. Ensure agents whether on the phone on in the retail outlet have access to all of the customer data to enable them to make more informed decisions.
  • Don’t tie agents to processes or fixed scripts.
  • Automate mundane or repetitive tasks to free agents to focus on process exceptions and unique, unpredictable customer problems.

So forget about six step customer experience plans, maturity assessments and decision matrices. If you want to start on a customer experience improvement journey the best bet is to do it one process at a time.

BPM Marketing – A Failure to Connect?

As we embark on another round of BPM navel gazing, otherwise known as the BPM conference season, I’m wondering whether the BPM Marketing community are failing to connect with our target audiences.

A couple of recent blog articles brought this to mind. This first article by Ian Gotts “Why does nobody care” highlighted the declining audiences at BPM conferences compared to huge audiences for CRM events.

This second post by Connie Moore highlights the failure of BPM to engage with the C suite, the majority of whom she says don’t really care about process and methodologies and are turned on by business outcomes, profit, market share, growth.

The role of marketing is to create connections. This is done by clearly defining the problem you are trying to solve and showing your prospect how your product or service does this (preferably with case studies to reassure the client). The two blog articles indicate that BPM is failing to connect.

Customers don’t buy BPM suites they buy solutions for business problems. BPM customers don’t wake up in the morning and say to themselves, you know I really need some complex rules, predictive analytics or social bpm. Instead they enter the office with problems they need to solve; transform customer support, drive increased revenue, lower service delivery costs or utilize their staff more efficiently.

Which brings me back to this year’s BPM conference season. How can we light a fire of interest in BPM and connect with our audience? I’ve an idea. BPM conferences regularly have solution provider sessions. These solution sessions however tend to be around the edges of the event, separate from the main conference tracks focusing on BPM technology and related topics like organizational change.

Conference organisers should flip this model on it’s head. Focus the event not on BPM technologies but on BPM Solutions, with solution tracks for Finance, Government, Telco, Retail etc. and push the BPM technology and theory sessions to the edge of the event. Let delegates see best practice elsewhere and learn from it, let them see what is possible with BPM rather than the potential of BPM. Then we’ll begin to connect.