Benefits from a BPM Implementation

Tangible Benefits from a BPM Implementation

Business organizations are using BPM for different reasons and in different forms. BPM has an overall impact on the business ecosystem resulting in cost savings across the processes inside business ecosystem. The cost savings from different cost categories are:

Reduced labour costs

BPM focuses on optimization of processes. The processes that are repetitive are optimized and lead to reduction in labour which translates to immediate cost savings. For example, by automating a task that requires six hours of manual intervention, one can expect to cut that time to half. Thus, three hours multiplied by the number of times the process is completed in a cycle will yield significant cost saving.

Increased Productivity

BPM tries to identify the best process for achieving desired end results. The automation of processes that need manual intervention leads to increased productivity with the same resources. Increase in productivity results in higher revenues, better resource utilization and further savings in costs.

Shorter Cycle Times

Automation of processes leads to less time in completion. The time saving yields significant cost savings in terms of optimized resource utilization. Shorter cycles also mean that more instances of the same process can be completed in the same time. For example, if the time for processing an invoice is halved, the number of invoices processed not only doubles, but the cost per invoice halves as well.

Increased Profits
BPM automation of processes that impact revenue generation have an immediate and significant impact on revenues. For example, an improvement in sales processes is likely to improve lead conversion rates and consequently revenues.

Intangible Benefits

BPM implementations often result in numerous intangible benefits that translate into tangible savings in costs and increased revenues in the long run. Intangible benefits range from improved processes, better quality, higher employee morale and better decision making.

Reduced Error Handling
Automation of processes reduces errors due to human intervention. The reduction in errors saves the time of rework and improves quality of processes as well.

Consistent Process Handling
Consistency comes from having an established procedure and ensuring this procedure is followed every time. BPM has additional advantage of enforcing these procedures by automating routine tasks, which otherwise might complete frequently with flawed procedure.

Improved Customer Service
BPM makes customer service more responsive in terms of handling complaints, by automating the process of handling grievances and providing better service.

Easier Management of IT Infrastructure
Application integration which is one of the most powerful phases of BPM leads to reductions in IT management and administration time, development time and costs, and lower support costs.