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  • Amy

    How to Increase Employee Satisfaction with BPM Software

    Amy 9:44 pm on March 15, 2010 | 1 Permalink | Reply
    Tags: BPM, , , business process software, , ,

    When we think about business process management software, we often focus on business process management from an administrator or manager’s perspective.  Much emphasis is placed on the benefits BPM software offers to an organization as a whole; specifically, the efficiency tools it offers to managers and the impact of BPM on an organization’s bottom line.

    Yes, those benefits are of primary importance.  But in order for a BPM initiative to be successful, it is essential to consider business process software from the end users’ perspective.  In my previous blog, I observed that “beyond its benefits to the organization as a whole, BPM software creates opportunities to make life easier for both the “end user” (in this case, the HR department) and the “client” (in this case, the employee).”

    End users are the people who will actually use the BPM software to do their jobs on a daily basis.  End users include employees, supervisors, administrators, clients, partners, or any person who interacts directly with the BPM software.  When a new BPM software is introduced to an organization, the end users are absolutely key to making sure that management’s vision is carried out.  Change can be difficult and scary, and management must work to ensure that the end users view the BPM system as a solution rather than a hassle.  When end users perceive BPM software as a helpful tool that actually makes their jobs easier, they are prepared to reap the benefits of the BPM software and support the company’s BPM goals and vision.

    Returning to the expense report process example, the benefits to employees / end users participating in human resources processes are significant, and processing the expense report is much easier with BPM software.  Everything the employees need to do their jobs quickly and efficiently is right at their fingertips.  They are free from entering redundant data, looking up information, or sending notifications.  However, if these benefits are not explicitly communicated to employees by management, the benefits risk being lost in the shuffle.

    Whether its a new BPM software or any other top-down initiative, when employees feel that management has taken their needs into account the end results tend to be much more favorable.  Considering the ways that the end users will interact with the BPM system, communicating the direct benefits to end users, and ensuring that the end user perspective is central to the organization’s larger IT goals, goes a very long way towards maximizing the success of a BPM software implementation.

     
  • Amy

    Expense Report Process and BPM Software

    Amy 10:11 pm on March 13, 2010 | 0 Permalink | Reply
    Tags: BPM, , , ,

    Business process management software can be used to automate and optimize administrative tasks, reducing waste and increasing efficiency in HR operations.  In my last blog, I walked through how BPM software could optimize a leave application process, totally eliminating the need for HR to participate in the process at all.  Now I’d like to explore how BPM software can cure another common HR headache: the expense report process.

    The expense report process is a basic administrative process found in almost every organization.  When an employee advances an expense on the organization’s behalf, she then submits an expense report to her supervisor and/or the HR department using a standard expense reimbursement form.  Someone from HR then processes the expense reimbursement form and approves or denies the request.  Accounting is updated, and reimbursement is issued to the employee.    Additional steps may be added to the customize the expense report process, but the basic “bones” are consistent across most organizations.

    It’s important to remember that beyond its benefits to the organization as a whole, BPM software creates opportunities to make life easier for both the “end user” (in this case, the HR department) and the “client” (in this case, the employee).  By automating and optimizing the expense report process, BPM software can help to increase employee satisfaction by reducing reimbursement lag times, speeding up the expense report process duration and shortening the time the employee has to wait for reimbursement. Using BPM software, the employee can easily monitor the progress of her expense report form online, and receive automatic updates as the reimbursement form advances, increasing transparency and giving peace of mind that the expense report is moving through the reimbursement process.

    Furthermore, BPM software enables the HR department to automatically store, archive, and retrieve information related to the expense report process by accessing a database or by connecting to other software systems (such as ERP or accounting systems — more on this later), eliminating the need for redundant data entry and making HR’s job significantly easier.

     
  • kurt

    Open Source Business Process Management Software

    kurt 4:18 pm on March 11, 2010 | 0 Permalink | Reply
    Tags: BPM, , ,

    I just completed a series of blog posts about LMS trends and what they might forecast for BPM trends. One area I did not tackle was open source software. I can’t look at the open source topic in quite the same way. Both markets have quite a few open source options. At least 50 open source learning management systems exist, and at least 30 business process management open source software systems exist. Doesn’t sound like a case where one industry is leading a trend, while the other is following.

    Open source software has appealed to smaller businesses that can’t afford the licensing costs of enterprise class software. As costs increase, larger corporations are also taking a look at open source solutions. Some IT departments also prefer open-source systems because it provides greater control over the software. They aren’t constrained by the road path of a software corporation. The open source software can customize the software to meet its business needs. Of course, this can create problems as customizations to the open source software can make future upgrades problematic.

    Others don’t like open source because they wonder what support they’ll receive. Will they post a question in a community forum and hear the sounds of crickets or receive a few unhelpful comments? Sometimes this concern is justified. Support and maintenance may require a dedicated and strong internal IT group or contracting with outside vendors. Other times the open source community can and does provide excellent support. After all, they are a group that can feel a lot of enthusiasm for a good open source product.

    These hidden costs should not be overemphasized. Open source business process management software can still be great investment. Many robust open source solutions have an array of third-party vendors that can provide training, consulting, or product add-ons. Even with the additional costs of support or third-party services, the tradeoff with expensive enterprise software licenses may still tilt heavily in favor of the open source option. When selecting business process management software, you should be careful to weigh the benefits of open source and cost of additional support against the built in support of a licensed product.

    Google search on "open source bpm products"

    The three packages that top a Google search on “open source bpm products” include ProcessMaker, Intalio, and Bonita. (Strangely, the link for Intalio points to their cloud computing platform, not their BPM product.)

     
  • kurt

    Cloud Computing aka SaaS for Business Process Management

    kurt 4:47 pm on March 4, 2010 | 0 Permalink | Reply
    Tags: BPM, , , , , ,


    BPM in the Cloud with SaaS

    This post is my last in a series of posts examining past trends in the learning management software market to understand future trends in business process management.

    Over the last year or so, the buzz has been over cloud computing. The online training software industry embraced cloud computing when it was called Software-as-a-Service (SaaS). Increasingly, companies began outsourcing the hosting of their leaning management systems, rather than installing and maintaining a licensed copy of software. Some companies, such as GeoLearning and Learn.com, were purely SaaS companies that only offered a hosted LMS. Other traditional LMS companies began offering an SaaS version of their software.

    One factor that drove this trend was a change in market dynamics. Many larger companies with deep pockets had already invested in an LMS and switching costs made them reluctant to switch vendors. Newcomers to the LMS market, as well as market leaders who wanted to maintain and grow market share, found small to medium sized businesses to be an attractive target. Cloud computing offered these companies, who often had little internal IT support, lower total cost of ownership and automatic software upgrades. Of course, cloud computing has its disadvantages. For example, SaaS offerings are often less customizable than licensed software.

    Does cloud computing in online training software foretell anything for the BPM industry? In 2007 Lombardi software introduced Blueprint™ as an on-demand business process management solution. Appian began funding its SaaS venture in 2008. (Learn.com, one of the leading SaaS LMS vendors began in 2001). The business process management industry’s adoption certainly seems as though it is headed in the direction of SaaS.

    However, BPM customers may not adopt SaaS as readily as LMS customers have. Ovum analyst, Surya Mukherjee, says that SaaS products tend to be strong in visualization and design but weak in workflow engine and execution (Barry). (Blueprint is a process discovery product.) Unlike online training software, business process management software in the cloud can expose more sensitive data to a security risk. For SaaS to become as ubiquitous in the BPM market, as it has in the LMS market, managers will need to feel more comfortable with the security of cloud computing.

     
  • kurt

    Looking at the Learning Management Systems Market to Uncover the Direction of Current BPM Trends

    kurt 2:32 pm on January 30, 2010 | 0 Permalink | Reply
    Tags: BPM, , learning management systems, LMS software, trends

    BPM and LMS Software Markets Follow Mergers and Acquisitions Trend

    BPM and LMS Software Markets Follow Mergers and Acquisitions Trend

    After hearing about the recent acquisition of Lombardi Software by IBM, I was reminded of another industry, the learning management system (LMS) industry. The BPM and LMS software markets are both highly fragmented markets with numerous vendors. Do the recent BPM acquisitions mirror activity in the LMS software market? Can we look at learning management system trends and uncover some BPM trends?

    Consolidation among major LMS software vendors began five years ago. One of the most significant mergers occurred in 2005 when Click2Learn and Docent merged to become SumTotal Systems, becoming the largest learning management system company in the market. The following year another vendor, Saba, acquired some of its LMS software competitors. Blackboard, the largest learning management system company in the education market, acquired the second largest company in the same market. Most recently, in 2009 Blackboard acquired ANGEL Learning. The merger and acquisition activity continues in both the LMS software market, as well as related markets (learning content management systems). At the same time consolidation has occurred among companies that exclusively develop and market LMS software, larger software vendors and consulting firms have acquired smaller companies or added learning management system functionality to their own enterprise software.

    Even with the high level of consolidation, which is expected to continue, enterprises and educational institutions still have a bewildering number of LMS software options to evaluate. According to Trimeritus eLearning Solutions Inc., at 250 corporate learning management systems exist in the market, excluding education and open source LMS software. One explanation is that the pace of consolidation can’t keep up with a growing market and a constant incoming stream of small independent vendors feeding established companies.

    In the BPM market, we have two recent examples of both a larger enterprise software company adding a BPM to its wide range of software offerings (IBM acquiring Lombardi) and a BPM company acquiring an competitor (Progress Software Corporation acquiring Savvion). If the learning management system market is an indicator of a current BPM trend, you can expect that consolidations will continue but the number of vendor options won’t.

     
  • kurt

    The Unanticipated Business Process Management Consequences of Corporate Procurement and Incentive Payment Card Programs

    kurt 9:13 pm on January 16, 2010 | 0 Permalink | Reply
    Tags: BPM, , incentive card program, procurement card program

    Businesses that need to reduce costs by streamlining processes can replace paperwork with credit or debit card programs. Two examples of processes impacted by these card programs include procurement purchases and incentive payments.

    Corporate Credit and Bank Card Programs

    Procurement card programs simplify purchasing and accounts payable processes and reduce the paper trail of invoices that these processes traditionally create. These programs are intended for small purchases (less than $500), which typically make up the bulk of procurement transactions. With a credit card these small dollar purchases are summarized on the monthly statement, which eliminates the need to issue multiple invoices to a single vendor for several payments. Overall, the use of a procurement card can reduce internal cost per transaction by an estimated 35 to 40 percent (Loftis). In addition to cost savings, buyers can also get their goods or services much quicker by bypassing the typical purchasing and receiving processes.

    An incentive card program issues employees with prepaid debit cards that are reloadable. Each time the employee earns an incentive payment, it is credited to their debit card, which they can use to make personal purchases. The program replaces paper-based check payments with electronic payments on a debit card. Not only do the electronic payments reduce costs by eliminating paper checks, they also eliminate the processing costs of generating and mailing the checks.

    The Unanticipated Business Process Management Consequences

    However, while both the procurement and incentive card programs can increase efficiency and simplify processes, they may create a need for additional process management elsewhere.

    For example, for tax and cost management reasons, a business that has implemented a procurement card program must now be able to manage all of the charges being made to credit cards held by many different card holders. Depending on the size and resources of the business, it may need an auditing process to review paper statements (a smaller business) or to review data feeds from the bank that issues the card to the business’s financial systems.

    Incentive payment card programs face their own process issue. To be successful an incentive program employees must connect their behavior to the rewards. In a paper check-based system, the employee receives a tangible reward for a specific accomplishment. When payments are automatically and invisibly loaded on a debit card, the employees may not connect reward to behavior.

    To ensure that incentives reinforce solid performance, a business needs a reporting process that shows employees why they received incentive payments on their debit card. By seeing their incentive payment history, they can identify what performance goals they met and can focus on meeting future goals.

    Of course, these unanticipated business process management consequences should not discourage a business from considering a corporate procurement or incentive payment program. On balance the business process management trade-offs associated with implementing a program may still outweigh the costs and inefficiencies of the traditional processes.

     
  • Brian

    BPM Software Vendor Buying Spree continues with Savvion being acquired by Progress Software Corporation

    brian 10:50 pm on January 11, 2010 | 0 Permalink | Reply
    Tags: BPM, BPM acquistions, Progress Software, Savvion, Savvion compared to Lombardi,

    The BPM land grab continues.   For those that follow me on EbizQ and other sites, you might remember that I was probably the first in the BPM and Workflow Industry to predict that the IBM acquisition of Lombardi would set off a small BPM Software and Workflow Software Vendor buying frenzy in 2010 as other large software vendors look to stake claims in the deservedly hyped BPM/Workflow space (See my original prediction here).

    Of course, I drink my own coolade, I just didn’t think it was this highly concentrated.   It is an understatement to say that both VCs and Industry Execs have a herd mentality.  Of course they do.  This is for obvious reasons - some good and some bad.  There is a feeling of safety in numbers and there is a general belief of the wisdom of the herd in venture investing.  Furthermore, most VCs worry about the market health first, executive team second, and then the strength of a particular product suite third.  In other words, if the market is good, VCs will continue making bets on it and not necessarily all in the same company.

    So, what does this second major BPM company acquisition announcement in less than 30 days mean?  Well, let’s look at the numbers.  In the case of this acquisition, we’ve got a publicly announced price tag - $49 million.  There isn’t a BPM CEO on the planet tonight that isn’t trying to calculate multiples based on Savvion’s revenues and profit margins.  Every industry needs benchmarks to know how to value companies in that particular industry.  Now we’ve got two cases (albeit Lombardi’s is still unknown) and two sets of possible metrics.

    I’m sure in the next couple of days we will get some good clarity on Savvion’s exact numbers.  However, in the announcement by Progress Software, they claim that Savvion had 350 customers (and 24 Fortune 100 customers).

    According to a write up by Timothy Prickett Morgan, he calculated Savvion revenues at around $18 million, i.e. 2.7x annual revenues, based on a revision in sales forecasts by Progress Software.   Tony Baer seems to suggest the acquisition was a 1.5x multiple in his column.  Other writers suggest that Savvion was growing very slowly during recent years and either in or near red numbers.

    Funny, if we look at a product brief by Upside Research published in 2007, it claims that Savvion had $25 million in Revenues and 25 Fortune 100 customers in 2005.  What - something does not add up?  Was Savvion just taking the piss out of Upside and its readers back then? Or did Savvion undergo a serious erosion in their business model?  I have to assume it is mostly the former (which will raise some eyebrows and require Upside Research to do some fast explaining).

    So, here is my initial conclusion and comparison of the back to back acquisitions.  IBM acquired a strong and growing market Leader probably paying 5-8x revenues.  Saavion was probably a more desperate sale of a company that despite a booming market was starting to stumble and lose its way.  The business was probably being shopped to strategic buyers who realized that Savvion would nicely fill out their customer strategy and allow them to participate more fully in a very extended and still not very “neat and contained” market.  So, Savvion probably felt that they were getting a nice bounce thanks to the market and a renewed chance as a company inside a larger entity instead of one that would be going it alone in a quickly changing landscape.  Some cash and some stock options in the new company probably looked like the best way to keep moving forward.

    This brings me to my next blog (coming in the next few days!) regarding how BPM acquisitions will continue but may have less to do with BPM and more to do with complex customer acquisition strategies and more holistic product ecosystems.  But, I’ll get some sleep and leave that one for later this week.

     
  • Brian

    "72% of organizations recoup their BPM investment within 2 years" according to new BPM study

    brian 12:28 pm on November 27, 2009 | 0 Permalink | Reply
    Tags: BPM, business process automation, , business process managemet, , SOA

    According to recent research by AIIM, 50% of organizations using Business Process Management (BPM) tools achieve a payback of their investment in 18 months or less. In all, 72% recoup their BPM spend within 2 years.

    Wow!

    This is some wonderful new data on the power of BPM in the enterprise today.  Also interesting is the finding that once a company has implemented an initial Business Process Management project, additional projects take an average of 8 to complete. In addition to cost savings, users report faster process throughput and improved compliance from more consistent processes.  No surprises there.

    A majority of respondents reported that they have only addressed 1/5th of the potentially profitable BPM projects in their organisation, and consider BPM to be “significant” or “imperative” to their business.

    Other important notes from the study include information on what tend to be the most popular processes for organizations to automate.  These processes include: accounts payables (scanning, routing, approving of incoming invoices), processes from customer support, and HR processes.

    Not too surprising, one of the biggest challenges for organizations is actually defining and agreeing upon the process.  As I have mentioned time and time again in this blog, my number one recommendation and point of focus with organizations implementing Business Process Management is on the Statement of Work (SOW) because if you cannot correctly define your process in a simple format, then you are not ready to automate it using BPM software.  I think the conclusions of this study undeniably support this statement.

    One last note of interest is that despite claims by most BPM vendors that their tool is for “business managers,” fully 30% of all BPM projects originate in the IT department.  The reason is simple - most BPM projects involve integration with existing applications and integrations always involve IT.

    Conclusions:  spend the time and money on your SOW.  Define your business process or workflow before trying to automate it.  But DO IT - the payoffs are significant and pretty darn quick.

     
  • Ramiro

    Going Paperless – the Challenges of Changing the Culture of Paper when implementing BPM Software

    ramiro.cuentas 4:09 pm on November 25, 2009 | 0 Permalink | Reply
    Tags: automated process, BPM, BPM tool, business process designer, control processes, culture of paper, electronic forms, process automation

    The culture of paper in a business today is still considered important. It provides a means of support and evidence for activities that are carried out in a process. Any migration to an automated BPM system needs to consider how to change the culture of paper that most of the process actors will have grown accustomed to. In many cases, paper will have become a necessary part of the control processes in the organization. However, the integrity and reliability of the information are aspects that must be managed by the BPM system and the designer of the process.

    In a non automated process, the paper trail serves as the de facto audit trail of the process. However, often, the use of paper is unnecessary in the flow of activities. The process actors are simply accustomed to the use of paper, without taking into account the costs involved for the business. So, in order to make a change, we need to change the perspective of the user who is stuck in his “culture of paper”. This change of attitude should be considered an important pillar for successful process automation.

    When the business process designer wants to implement an automated process, they should not plan on maintaining the same quantity of generated paper. If they do, then they are not thinking correctly about the benefits that BPM can provide. One of the more obvious advantages of BPM should be a reduction in paper forms in favour of electronic forms. An electronic form has a number of benefits over paper forms. One of the most basic advantages is the ability to perform validation checks on data entered which in turn allows for automatic routing and flow decisions.

    The change from paper to paperless will place some stress on an organization. As a result, it is essential to have a commitment from Management to the process. And this commitment must be communicated to the process actors.

    According to the aspects mentioned above, processes automation can be regarded as a change to the organizational culture. This has been defined as “a certain sum of values and norms that are shared by individuals and groups in an organization and that control the way they interact with each other and with the organizational environment. The organizational values are beliefs and ideas about the type of goals and how appropriate they should achieve. The values of the organization develop standards, guidelines and expectations that determine an appropriate behaviour of the employees in particular situations and control the behaviour of organizational members to one another “(Hill and Jones, 2001). The organizational change is required to turn the organization into a competitive organization and involves the adoption of tools such as a BPM tool.

    Organizational culture should not be overlooked when considering the challenges of moving towards a paperless or more automated business.  Although the productivity gains can be huge, there needs to be a serious commitment from management in order to



     
  • Brian

    The Leave of Absence Request Process - Not so simple for many BPM and Form Vendors

    brian 8:33 am on November 19, 2009 | 0 Permalink | Reply
    Tags: BPM, HRM, Human Resources Management, , , Time Off Request,

    Ask your BPM vendor to give you a demo of his/her Leave of Absence Request Process (he might call it a Vacation Request Process or Time Off Request Process, but it is all the same).  This is the simplest process in the book, right?  Think again.  This relatively simple process can be very difficult for lots of so called “top” BPM vendors and is nearly impossible to do correctly for all of the electronic forms providers.  Let’s figure out why.

    Many vendors will show you a Leave of Absence Request Process which has a Leave Request Form which gets routed to a supervisor and the supervisor either approves or rejects the request.  Seems simple.  But is that really the way a Leave Absence Request works?  No, not at all.

    PROCESS MAP

    Here is an image of a Leave of Absence Process that has been designed correctly:

    Leave of Absence Request Process

    Leave of Absence Request Process

    This is generally what a Leave of Absence or Time off Request should look like.   It is not as simple as just sending a form to your boss.  He/She needs to be able to approve or reject the request.  But notice that rejecting the request is not the same as killing it and putting it in the trash.  A rejection normally needs to go back to the employee so that the employee can correct it, resubmit it, or do something else.  The important point here is that this is a decision that should rest with the originator of the request.  Think about how it would work with an old fashion paper paper request.  If you take a request to your boss and he/she rejects it, does your boss take the request and crumple it up and throw it out?  No, your boss will hand it back to you and give you a reason why it is being rejected.  At this point, you can make your decision how to proceed.  You could throw it out yourself or you could fix it and resubmit it.

    Next comes a part of the process that almost everyone leaves out.  Once you come back from your time off, the amount of time off you really took needs to be verified.  What if you come back a day early?  What if you come back a day late?  How does the system know this?  For this reason, there needs to be another step to “report the actual leave taken.”  This then needs to be verified by the boss, and only then can the record be updated.

    Now this begs the question about “updating the record.”  Do you already have an HRM (Human Resources Management) system, or do you need your BPM system to manage this information.  Larger companies will tend to have a separate HRM system, but smaller ones might not.  In this case, it is nice if your BPM system allows you to create internal tables.  In this way you can associate custom tables with your user tables and maintain leave data for each employee.  Of course, you will also need to setup an auto scheduled process which will affect these tables.  This process should automatically add additional days to each employee’s account based on their anniversary date.  For example, if your policy is to add 2 weeks of vacation time to each employee after they have been with the company for 12 months, then this process needs to happen automatically and needs to automatically adjust the leave taken tables.

    Finally, you will need to be sure that your leave tables have an audit log.  At some point you will need to look at a record of events that affected this accounting of leave taken.

    FORMS

    With regards to the design of the workflow, let’s look at a sample initial form:

    Leave of Absence Form

    Leave of Absence Form

    The important thing to note about this initial form is that the employee, time, date, employee’s boss, leave available, and leave already taken should all be auto-filled by the system.

    APPROVAL AND MANAGEMENT VIA EMAIL

    Another feature to ask about is email response/approvals.  Management generally doesn’t want to spend time logging into more web based systems.  So why not give them the ability to approve or reject a request directly from their within their email.  Here is an example of the type of email they could receive for a leave request:

    Email Leave of Absence Request Form

    Email Leave of Absence Request Form

    As you can see, even for a seemingly simple workflow such as a Leave of Absence Request, there are a number of things to consider in the design and implementation of the process.  Failure to consider these issues will result in a system that is discarded within a few weeks and never really used by the company.  This is a very common occurrence in the world of software, but one that can be avoided with good planning, testing, and implementation practices.

     
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