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Extensive research has proven that an organization competes through less than 20% of its business processes which have a high impact on strategic value drivers. Over 80% of the processes are commodity processes. It is sufficient to achieve industry average performance in this area. A value-driven process design and implementation considers this by...
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... BPM- Discipline is established through an appropriate "process of process management", that manages the lifecycle of each business process to keep it on track (Kirchmer, Franz, 2014-2) (Franz, Kirchmer, 2012). This BPM-Discipline is visualized in figure 9. Providing appropriate process governance is especially important to make a BPM- Discipline reality and keep processes focused on creating value. ...
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The digital transformation in both the social and business fields requires the development of new skills related to the use and implementation of contemporary IT technologies, which provide the basis for Industry 4.0. One of the main concepts of these changes is the automation and robotization of business processes. The design, implementation and u...
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... High impact processes that have a lower maturity level, compared to other organizations, are the best improvement targets. Digitalization initiatives that move those processes to the next performance level deliver most value for an organization [5]. Hence, it is key to identify the high impact low maturity processes and prioritize transformation initiatives in those areas. ...
Most organizations have started, or have at least planned, their digital transformation journey [0] [1]. These organizations expect to increase their performance drastically by leveraging digital technologies. However, many of those businesses struggle to meet the high expectations through their digitalization initiatives, and don’t deliver the expected value.
A successful digital transformation is value-driven, process-led, and data-based. It targets business value and works towards a well-defined business case. This value of the transformation is delivered through new or enhanced business processes [2]. Digitalization only delivers its business benefits if you improve what you do or if it helps to do something new that provides additional value – without creating issues in other areas. Hence, processes guide the transformation initiatives towards value-realization. A process delivers, by definition, a result of value – which needs to be moved to the next level. To optimize the time-to-value, fast and well-informed decisions are required. This is achieved through a data-based approach, delivering the required information about current and future process performance at pace in the required quality.
... To have a clear idea about those goals and how they relate to your business processes and the potential value of RPA is a simple but important precondition for the successful use of RPA. You can segment your processes to identify where you get best value by improving their maturity level through RPA [6]. Once you have identified a process you want to improve using RPA, it is key to create the necessary transparency. ...
Robotic Process Automation (RPA) has become an important trend in process management and automation. The article examines briefly the value it delivers and associated risks. On this basis it recommends a company specific approach to maximize RPA value and minimize risk.
... P a g e 7 | 19 transactions best handled by utilizing industry standards. Academic and practical research has repeatedly shown that less than 20% of an organization's processes are have an high impact on the competitive positioning of an organization and are worth the effort to innovative or generate disruptive improvements through BPM efforts [4] [6]. However, when BPM is utilized on those critical processes, it leads to lasting competitive advantage. ...
... Realizing business value oftentimes begins by targeting high impact, low maturity processes [6]. While this may be where many businesses at least try to start their value journey, there are many speed bumps and roadblocks along the way that BPM helps to remedy and resolve. ...
... While these are often legitimate and valuable initiates to improve the performance of business processes once issues occur, there is much less emphasis on managing and innovating critical processes proactively. Research has shown that organizations only compete with approximately 5% of their processes with a further 15% being important core processes, supporting the competitive advantage (Franz, Kirchmer, 2012) (Kirchmer, Franz, 2014). For these highly critical business processes, a much more proactive approach to continuous improvement and process innovation is required. ...
... Resources "wasted" on those commodity processes are then lacking when it comes to innovation and optimization of high--impact business processes. Traditional improvement approaches don't systematically "target value" (Franz, Kirchmer 2014). ...
There is a growing agreement in academia as well as in practice that business process management (BPM) has become the management discipline for the systematic execution of business strategy. As any other management discipline, it is implemented through a business process itself, the process of process management. Many components of this process of process management are supported through digital technologies. However, there are critical gaps in the digitalization of the BPM process and existing digital components are often not sufficiently integrated. As a result, organizations do not realize the full potential of a BPM-Discipline. This issue is addressed through the BPM-D Application. A key digitalization gap is the transfer of the strategy of an organization into the appropriate portfolio of process improvement initiatives. For top executives this means that they have to be able to take fast well-informed decisions based on strategic priorities. The operational managers need to drive aligned execution activities. This paper discusses an approach towards a process-driven and value-focused portfolio management to create project portfolios that reflect the priorities of the business strategy, combined with a systematic approach to value realization, during a project and especially after project conclusion. As a result, top executive and operational management views are aligned towards the desired outcome. This paper shows how the presented approach is enabled through the BPM-D Application which represents another step towards digital BPM.
Business Process Management (BPM) has become a management discipline that translates strategy into people and technology based execution – fast and at minimal risk. It helps organizations to realize the full potential of their digitalization enterprise transformation initiatives. BPM is implemented through the “process of process management” (PoPM). To assure continuous improvements of the PoPM an appropriate digitalization approach for the PoPM itself is essential. However, little work has been done in this field and companies are failing to recognise the importance of an integrated digitalization of the PoPM. This paper presents a successful approach for the digitalization of the PoPM to enable a powerful BPM-Discipline. It includes experiences from a first pilot implementation of the developed prototype, the BPM-D Application.
Many organizations still struggle with the management of their internal business processes to overcome functional barriers. However, an increasing number of companies are targeting the integration between organizations or so-called inter-enterprise processes. Successful companies operate in a network with other organizations to leverage their strengths and compensate for their weaknesses. Mutual interdependencies are created and managed to drive additional value and to ensure high performance for the “inter-enterprise organization” as a whole. Companies become “platforms” that integrate customers with various suppliers, as enterprises like Amazon, eBay, or Uber show. Uber, for example, does not own many physical assets like a traditional taxi or limousine company. But they have processes in place linking clients to the owners of cars who are the suppliers of Uber.
Several readers of the past editions of this book have asked for an integrated case study. That is why I have added this chapter describing the case of a consumer goods company that needs to address, on one hand, urgent business issues using process-led approaches and wants, on the other hand, to establish BPM as a management discipline that supports the ongoing systematic execution of the business strategy.
