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Home > Enterprise

Process Highway
Can you revamp without getting into expensive, risky projects? With BPM, yes
Jasmine Kaur
Saturday, May 21, 2005
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Sunil Gujral, VP for Technology, and Parminder Singh, GM for Technology, at Wipro BPO Solutions, knew there was something critical missing from their processes-a thread across the internal and external data fragments. "There was lack of a unified view across business units," says Singh. "There was a need to align information with the line managers at their desktop and to look at employee productivity and seat utilization. Each unit had their own data, but the rolled up data was taking too long to reach the business users."

"There was a need to align information with the line managers at their desktop and to look at employee productivity and seat utilization”

Parminder Singh, GM, for Technology, Wipro BPO Solutions

Max New York Life's VP for technology, Amit Kumar, carefully sums up the work cut out for him: "The Policy Owner Servicing (POS) department was concerned about the increased effort for servicing each customer request as it was dependent on multiple disparate non-integrated IT systems. Right from customer requests, signature verification, letter generation to file and folder requests-everything was being handled manually. We wanted to track and monitor various applications that were coming in from the perspective of turnaround time, management, and faster service."

In all these cases, there comes a period in every organization's life, when it needs an evolutionary change that looks at revamping the lifecycle of the company's processes, looking for ways of improving them, and at the same time, avoiding investment in the area of large, expensive, and risky new application projects that have in many cases led to a disappointment in the past.

"BPM is like a process highway, and the applications are like towns and cities on the way”

Punit Jain, VP, sales and marketing, Newgen

Alok Shende, director for ICT Practice, Frost and Sullivan, says that business process management (BPM) traditionally incorporates knowledge management, business intelligence and workflow. "Most implementations in India have, however, been on the lines of workflow, where information is scanned, documented and archived," he says.

Punit Jain, vice president, sales and marketing, Newgen, explains BPM more graphically: "BPM is like a process highway, and the applications are like towns and cities on the way. At any time there is a free flow of information across the highway and any operation required can be performed by going to an application, performing updates and transactions and coming back to the highway." Gartner says that it has the potential to emerge as the highest layer in the business application stack.

Document management systems, and workflow is the largest knowledge management software and solutions market segment, accounting for 70% of the BPM market in India. Enterprise portals are the second biggest revenue-generating segment, followed by a nascent pure play knowledge management segment.

BPM Simplified 

Business Process Management aims at a seamless integration of both automated and manual processes by creating more efficient workflows leading to a smooth process flow. With BPM-instead of having each application being in charge of a set of processes, and trying to subjugate adjacent applications to drive its processes-the control of the process is taken away from the individual applications. This makes them equal peers under the control of a BPM layer that drives the processes, delegating tasks or activities to the individual applications according to their strengths. 
BPM's primary roots are in the process management capabilities of workflow tools including capabilities that are derived from process modeling, application integration, and process monitoring and rapid application development tools. Clearly, BPM is a synergy of all these on a single platform that manages the lifecycle of a process from definition, through deployment, execution, measurement, change, and re-deployment.

As elucidated further by Manoj Sinha, CEO, BISIL, "The goal of better information delivery can be achieved by unifying the worlds of document processing and transaction processing. This can be done by providing unified document repositories and transaction databases that can be accessed with a web browser from any location with Internet access."

According to Ram Menon, senior VP for worldwide marketing at TIBCO Software, any BPM solution would include tools to analyze and model processes, a runtime execution engine, process administration and monitoring, analysis of state data, archiving with business intelligence and business rules-all that are designed and implemented external to the business process for maximum flexibility and reuse.

Is BPM your solution?
Today Wipro BPO Solutions uses the business intelligence tool ProClarity, which is being rolled out across six cities, pulling data out of all the BPO arms and escalating it to Delhi. In a fully integrated solution, there are links to SAP's ERP model being used by Wipro. For large clients in the financial space, processes use Newgen's Document Management and Workflow tools.

The Ten Commandments

What the CIOs should look for before they take the plunge:
  1. Make an operative business case for the board/ CEO projecting BPM as an important productivity driver for the future. Business users should be involved very closely. According to a research, 70% of enterprises feel that buy-in from the top management is the key challenge.
  2. Identify your core processes that have to be improved and automated. Start with the business process end state and clearly articulate the model through process maps and flow charts before starting any work on it.
  3. In case you find this tough, collaborate with a vendor or a consultant, who can help you identify these processes. Look for historic and present penetrations across business segments.
  4. Companies that do not have strong IT departments should look at a consultative approach to map their requirements and drive BPM initiatives.
  5. You have a great opportunity here to extend your enterprise and get connected with your clients and vendors. Do it.
  6. Choose the bouquet of solutions based on specific business requirements and ability to provide implementation and training services.
  7. A piecemeal approach may be better. A big bang requires too much overhaul and big money spend. Let the phased implementations justify the next round of installations.
  8. Do a proof of concept with the vendors after narrowing down on the tools that suit your business. This helps in better understanding of your own.
  9. BPM vendor and implementer should preferably be the same, because implementation knowledge in BPM is still very low unlike SAP.
  10. Do not ignore or underestimate the hardware requirements while deploying the solutions. Deploy hardware generously.

Max New York Life found its answers in Newgen's workflow solution called MyFlow, which covers POS, new businesses and claims. Within a short period of deployment, the turnaround time for client processing was reduced significantly. The enterprise was ultimately looking at leveraged group/team knowledge, faster response time, better decisions, enhanced customer services and overall employee productivity-which they found.

"Any BPM solution should include tools to analyze and model processes, a runtime execution engine, process administration and monitoring, analysis of state data, archiving with business intelligence and business rules”

Ram Menon, Sr VP for worldwide marketing, TIBCO Software

Even Tractors and Farm Equipment (TAFE) found its answers related to vendor and customer connecting issues through BroadVision's BPM product.

R Geetha, head of IT at Indigo Lever, Shared Services, made sure that BPM was incorporated in its efforts to ensure a smooth transition to offshore shared services from Day 1 of 'live' operations. The company now benefits from having a track record of each customer, transparency in operations, measurement of KPI's, and SLA metrics, enabling ongoing performance improvements.

The bottom line
The scenario is clear: The CEO needs to improve business processes and provide quicker response to customers by harmonizing processes with existing infrastructures and technologies, such as ERP and CRM. On top of that, the CEO does care about monitoring how the business is performing, measuring the organizations ability to react to changes in the market and handling exceptions quickly-and having a complete view of the organization.

The CIO has the task of making sure that the needs of the CEO are met fully and quickly, with zero disruption to the business. The process problems have to be sorted out effectively and BPM, if implemented smartly, can give the company the quantum jump that it seeks.

A few of the industry verticals have been heavily focusing on BPM: government, BFSI, IT and ITeS companies, manufacturing, hospitality, media and the telecom. Vendors like Newgen, IBM, Microsoft, Fortune, TIBCO, Documentum, File net, Oracle, Staffware, Wipro, Xerox, and Canon are offering products based on the core process needs of these sectors.

As OVUM puts it "Businesses need to constantly adapt their processes, yet they are often held back by static IT systems that aren't designed to exploit future opportunities." So, if your process engine is getting static, it may be time to step on the gas.

Jasmine Kaur

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