The implementation of Business Process Management (BPM) systems requires significant investment in terms of time, human resources, and ultimately capital.
Each project needs to deliver a measurable Return On Investment (ROI) on the benefits of implementing the system, both in the short term (within one year) and in the long term (up to 5 years).
To determine the ROI for BPM projects, businesses should measure both the direct and in-direct benefits that the project finally delivers.
Defining BPM Goals
Before starting a BPM project
it is important for your business to define the goals of each project. These goals take into consideration the available scope for change, the organisational capability to deliver it within a reasonable timeline, and the potential benefits.
Identifying the goals of the BPM project is important, as it will shape the measurements that can be used to determine the relative success of the system.
The Challenge of BPM Measurement
BPM implementation is not a simple and one track process; the changes typically impact upon more than one function of the business, meaning that the benefits are spread across the company.
Measuring Success from BPM implementation
The benefits of a BPM system can be split between direct benefits and in-direct benefits.
The direct benefits can be improvements in the structure and efficiency of the business. This benefit can be hard to measure. However, a comparative reduction in process times and resource requirements are a good place to start.
Intangible benefits can include a reduction in the risk profile of certain processes and more checks/controls in the system. This can be expanded to streamlined or better defined regulation or compliance.
The benefits of BPM implementation on your business can also be In-direct.
For example, BPM can make future enhancements easier due to standardisation and process management. Improvements in ease of use can have benefits throughout the business, on tasks from customer acquisition, through to project management.
Successful projects can also be the driver for further projects, as the capacity for ROI has been established.
Measuring success from BPM implementation is not always simple. However, with the right goals and measures, ROI can be demonstrated on even the most complex project.
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