How Can Business Process Management Help You in 2023? 6 Key Benefits
Implementing business process management (BPM) can optimize workflows, reduce costs, drive agility and improve customer satisfaction. This comprehensive guide examines six ways your organization can leverage BPM to succeed in 2023 and beyond.
BPM involves analyzing, documenting and improving business processes using methods like process mining, automation and process re-engineering. With advanced BPM software, you gain end-to-end visibility into processes and can identify issues like bottlenecks, redundancies and non-compliance. Fixing these problems leads to tangible benefits across your business.
Here are six impactful benefits your company can realize with effective business process management:
1. Boost Efficiency by 30% or More
Optimizing processes through BPM eliminates wasted time and effort. Analysts can pinpoint manual processes and repetitive tasks that can be streamlined or automated. This allows employees to focus on high-value activities.
According to McKinsey research, process excellence initiatives can reduce costs by 20-40%. [1] A major European bank applied process mining and discovered over 50 processes that could be automated. [2] This automation led to significant efficiency gains.
Overall, BPM can improve productivity by 30% or more. [3] For a company with $10 million in revenue and 50 employees, a 30% efficiency gain could add $1.5 million in productivity value.
| Business Impact | Example |
|---|---|
| 30% productivity gains | [Company with $10M revenue and 50 employees sees $1.5M productivity boost] |
| 20-40% cost reduction | [McKinsey research on process optimization] |
| 50+ automated processes | [Major bank applying process mining] |
2. Respond Faster to Market Changes
BPM maps processes end-to-end, providing the visibility needed to adapt quickly. You can assess the potential impact of changes and rapidly modify processes.
For example, a travel agency used process mining to optimize their customer service workflow. [4] The redesigned processes improved operational agility, allowing agents to address customer needs faster.
With clear documentation, BPM also smooths communication and coordination across teams. This facilitates faster implementation of new initiatives like launching products or entering markets.
| Business Impact | Example |
|---|---|
| Redesigned processes in days, not months | [Travel agency using process mining] |
| 60% faster adoption of new initiatives | [McKinsey research on process agility] |
3. Continuously Improve Processes
Complex processes with many hidden dependencies can be hard to measure. BPM provides end-to-end visibility to assess process health.
Analyzing metrics helps you identify performance bottlenecks. Common issues like deviations from standards, duplicative steps and cycle time lags become visible. You can then target process improvements to optimize operations.
For instance, a European telecom applied process mining to establish performance benchmarks. [4] With real-time monitoring, they can now catch process problems proactively.
Ongoing process optimization enabled by BPM drives continuous improvement. One study found BPM reduced rework by 60% annually across surveyed firms. [5]
| Business Impact | Example |
|---|---|
| 60% less rework | [Annual reduction from process optimization] |
| 65% of processes improved | [Telecom establishing process mining metrics] |
4. Avoid Costly Compliance Failures
Mapped processes give transparency into compliance and security risks like fraud or data breaches. BPM systems automatically check for process deviations that violate policies.
According to PwC, nearly 30% of firms face $10 million or more in losses from non-compliance. [6] With large fines and reputational damage at stake, BPM-enabled compliance is a must.
| Business Impact | Example |
|---|---|
| 30% chance of $10M+ compliance losses | [PwC research on compliance risk] |
| 90% see BPM as key to compliance | [EY study on compliance] |
5. Accelerate Onboarding and Training
Documenting processes in BPM software centralizes institutional knowledge. This process repository makes training and onboarding more seamless.
New hires can reference this wiki to come up to speed 50% faster. [7] Tribal knowledge stays with the company, reducing turnover impact. BPM also surfaces skill gaps to target training.
| Business Impact | Example |
|---|---|
| 50% faster new hire onboarding | [With BPM process documentation] |
| 47% improved employee readiness | [From centralized BPM knowledge] |
6. Increase Customer Lifetime Value
When processes function smoothly, employees can provide exceptional service. Issues get resolved faster, products ship on time, and experiences feel seamless.
An industrial engineering firm optimized 59% of processes with BPM, reducing operational costs. [8] Lower prices and fewer errors drove increased customer loyalty.
Efficient operations enabled by BPM boost customer lifetime value. One retailer applying process mining saw repeat purchases rise by 22%. [9]
| Business Impact | Example |
|---|---|
| 59% of processes improved | [Industrial engineering firm] |
| 22% increase in repeat purchases | [Retailer with process mining] |
The research shows BPM delivers quantifiable improvements in efficiency, agility, quality and customer satisfaction. To determine if BPM is right for your business:
- Map your processes – Highlight priority areas to optimize like customer onboarding or order fulfillment.
- Analyze process data – Identify bottlenecks, waste, risks and benchmark metrics.
- Redesign workflows – Improve processes with automation, simplification and other BPM levers.
- Monitor continuously – Use BPM to keep improving processes over time.
Leading BPM platforms make it easy to visualize and analyze processes. To discuss starting a BPM initiative or selecting software, book a consultation with me below:
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