The foundation of a successful business
Updated: May 29, 2020
What is the foundation of a successful business?
While technology might be considered the number one driver for transformation in modern day business, this isn’t strictly true. No matter which technology is used to implement a system or human-based workflow, the process design will always be critical to its success. Consequently, business process modelling (BPM) should be seen as the cornerstone for any organisation.
The foundation of success
According to Aberdeen’s Business Process Modeling: The Foundation of a Successful Business report, organisations with process modelling saw a 9% improvement in profit margins over the past two years. In addition, these organisations are over four times more likely to have best practice templates. It isn’t only the growth, but the threat of being left behind that is ensuring business processes are at the top of every strategy. Since 45% of best-in-class organisations have already implemented BPM solutions, the rest of the business world is eager to catch up and reap its benefits.
What are the top drivers that impact BPM?
Businesses are becoming more open to gaining insight as to where opportunity for business improvement lies. BPM initiatives are being accelerated because of these key drivers:
Innovation and agility: Organisations need to rapidly adapt and change to the consumer needs. Outdated ways of doing business need to be refined and updated to promote innovative and agile processes.
Customer-centricity: The customer has become the focal point of any business, and organisations are continuously seeking ways to improve the customer experience. BPM solutions can identify and improve processes that are creating service obstacles.
Cost-optimisation: By optimising business processes, organisations are able to cut out most of the manual processes done by staff, automate various processes and apply activity-based costing.
Business intelligence and analytics: This allows an organisation to understand its inner operations and customer needs. Through these interactions and analytics, an organisation will be better positioned to identify and capitalise on which offerings and products are in demand.The lack of process modelling within an organisation can lead to serious consequences. As the Aberdeen report stated: “When processes are not intelligently defined, communicated, and executed, organizations may incur unnecessary costs, deliver poor products or services, or run up against noncompliance issues”.Aberdeen’s Business Process Modeling:
The Foundation of a Successful Business report can be downloaded here.
BPM matters – not only because of profit margins, but also its overall value in making a business run better. It helps organisations better devise, visualise, and implement best practices across the business.
Ovations Group Associate Director and Practice Lead for BPM, Peter Robb, explains why business process modelling is the foundation of a successful business.
Article from BizNews