From improved efficiency to rocket science

Organisational inefficiency. Those are dirty words, especially for companies under pressure to perform profitably when changing business conditions demand more for less. With enterprise resource planning (ERP) systems, and all their subdivisions - supply chain management, inventory control and more - introduced to combat organisational inefficiency by many companies in the past, the clever chaps in software companies, consulting firms and universities around the world have sought new methods to further improve corporate performance. One field rising to prominence is that of business process management (BPM), and its subset, workflow.

It is true to claim that ERP, in many ways, was introduced to improve business processes - but it`s also true to say that not every company got what it expected when deploying ERP systems. (There is a standing joke about one of the biggest ERP vendors: that there is no such thing as a complete deployment of its software.) However, with the majority of these systems bedded down and delivering what they promised to in the first place, the focus for many companies is shifting to BPM.

Dennis Parker, director at SourceCode - a South African developer of workflow software - believes companies around the world increasingly acknowledge the value that such initiatives can bring to their business. "Demand has appeared for process and workflow solutions as a result of a couple of things, one of which is the obvious benefit of moving from paper-based to automated systems. Another factor, which is perhaps not so obvious, is that companies are interested in measuring what is going on inside a business process, which gives them a better understanding in order to start improving efficiency," he says.

There`s another important driver for increased interest, and it`s what Parker calls "money realism". With the technology maturing, it`s simply cheaper and therefore easier to justify splashing out on process improvement initiatives. There`s also the issue of compliance with new corporate governance and other regulations, which, globally, has driven more companies to examine the introduction of audit-proof trails in their processes. Perhaps the most significant of such regulations locally is the Financial Intelligence Centre Act (FICA).

Meanwhile, Ian Burgess, a director at enterprise software developer 3fifteen, believes workflow is on the threshold of mainstream adoption because of technological advances. "There`s a major shift taking place in the infrastructure upon which the technology is based; it`s moving from a client/server architecture to becoming a messaging platform. Add that to the fact that workflow is being incorporated into commonly used applications such as the Microsoft Office suite, and the barriers drop rapidly," he says.

So, is BPM a software solution then? Certainly not, says Dawie Olivier, strategic services manager at nVisionIT, which works as an implementation partner for Microsoft-based workflow technologies.

The selected technology should really just be an enabler.

Dawie Olivier, strategic services manager, nVisionIT

"BPM will fail unless it is recognised as addressing the process of interaction between people and technology. Tackling the human element is often the most important determinant of success for several reasons - if end-user buy-in is not achieved, the technology won`t be used. Even worse, if people feel their job is going to be threatened by automated processes, they may deliberately obfuscate the process of identifying business processes, or withhold vital information," he says.

Olivier therefore stresses that two factors unrelated to technology are indispensable in a BPM deployment: consulting to identify the processes, and change management to ensure user acceptance.

Some expertise is required in order to map the processes that can benefit from automation, which, Olivier says, are often non-core functions such as human resources and payroll. Gys Human, services director at Ovations, a process, content and integration specialist, agrees.

"Understanding the customer`s business is important so the core and non-core processes can be identified and mapped. Because the core processes are the ones that add the most value to the business, we believe these should be tackled first, as the most value can be realised through automation and optimisation," he says.

Olivier differs on one aspect, as he believes addressing peripheral processes that do not in themselves add value frees up expensive resources to conduct their line of business. "If a professional is pushing paper around trying to apply for leave, for example, he or she isn`t being very productive," he observes.

Nevertheless, they agree that technology plays a minor part. Human reckons BPM is 70% process and people, with 30% falling to technology. And Olivier believes the consulting and process experts should be separate from the technology team. "The selected technology should really just be an enabler, and isn`t that important so long as it is standards-based."

Installing BPM measures does not result in all sunshine and smiles. When its forerunner, business process re-engineering, was introduced, there were plenty of examples of how things could go horribly wrong. Tinkering with the business processes in any organisation may hold the potential of efficiency through automation, but the sensitivity is high - organisations depend on these processes in order to achieve their goals.

Michael Barnard, executive business developer in the Business Integration Competency at Business Connexion, says risk can be viewed on three levels. "There is organisational 'process maturity` risk, implementation risk and risk in the BPM platform itself," he explains.

Organisational risk can be found both in a lack of process ownership at all levels of the organisation and in not understanding a process-driven organisation. Barnard notes that many organisations are structured around functions, and systems have traditionally been developed around these, contradicting the whole process approach that cuts across functions and questions traditional system functionality. "Lack of executive buy-in and a low level of process maturity and process thinking in the enterprise can also be a significant factor - and changing this way of thinking in any specific area can take nine to 12 months," he says.

From an implementation point of view, it can be difficult to gain a full view of a large corporate, especially when every unit believes it is unique. "Subtle change management is required to negate this risk; without proper commitment, you`ll miss the boat, and will waste money and resources. People need to commit in their hearts to process change, not only pay lip service," believes Barnard.

Other implementation risks include embarking on a BPM project for the wrong reasons, or using an idiosyncratic methodology; while the lack of a clearly defined implementation strategy tailored for the specific environment can put the whole organisation at risk.

Mitigating platform risk requires the selection of appropriate technology. Says Trevor van Rensburg, GM of best practices at Software Futures: "Failures have occurred because software was used to automate processes in terms of system-to-system interaction. That left process engineering in the hands of the wrong people - the IT staff. Newer methods focus on the human-to-system process, as well as putting the capability of process mapping and engineering into the hands of the people who are responsible for them and who best understand them - the business managers."

There are many reasons that compel companies to seek BPM solutions. At corporate law firm Webber Wentzel Bowens, information systems specialist Eugene van Vuren says the primary driver for it was the introduction of FICA regulations. "While we had explored BPM technology for a while, one of the deciding factors was definitely FICA. When this was introduced, we looked at the available products and made a selection," he says.

Explaining why FICA tipped the scales, Van Vuren says complying with FICA regulations can be complex. "Especially as a legal firm, we have a vast number of different clients with which we can engage. Each of these clients may be one of the various legal entities for which there are different information requirements and they all have to be FICA-compliant before we can do business with them," he says.

In addition, when the company engages a client, a complex workflow is set in motion, of which the FICA requirement is only one component. "There are a lot of touch-points and interventions are required from many different individuals through this process - which means there is potentially a good deal of opportunity for things to go wrong. By introducing BPM measures, the workflow is regulated, and with check-points, the matter can`t proceed to the next step until the necessary previous ones have been completed," he explains.

Van Vuren says the ability to flexibly adjust business processes is an important feature of the solution chosen by the company. "We have the ability to add to and change the processes according to the needs of our business," he says.

He is so impressed with the successful application of BPM within his environment that he believes such measures could add value in almost any company. "A lot of the functions that we have automated previously occupied people who could be using their time better."

Implementing a workflow solution at Eskom Holdings proved to be a demanding undertaking. Wicus Pretorius, senior advisor for human resources IT projects at the organisation, explains. "A major challenge for us is the reality that we have over 20 000 computer users in this organisation, many of whom are not very computer literate. In addition, many of our employees have been with the company for extended periods of time, and were quite resistant to any change in the way they did their work," he says.

Furthermore, while workflow is something endemic to any business, it is a relatively abstract concept, difficult for some to understand. As Pretorius notes: "People see things happening without realising that it is driven by a workflow in the background; in due course though, people will start to catch on that this is what moves forms around in the business."

Pretorius notes that challenges the company faced included a lack of understanding of business processes, which meant mapping them was a tricky job. "The solution was to get people to start thinking process-wise - we had to go through a number of forms to get the processes properly established, as there were many steps initially omitted," he says. But he notes that the chosen solution provided the necessary flexibility as well as the ability to add further steps to processes should the need arise.

"From pilot into full production it has been a tough project, and there are a lot of challenges, especially in a large environment. It is difficult also because workflow is a relatively new concept, so we relied to a large extent on the implementation partner to assist. Three years on, though, our workflow is bedded down well in the business and we are seeing the benefits, which include streamlined processes and better process integration. Because we can now audit processes and report on them, we can also continue to improve processes as necessary," Pretorius says.

It was not an easy process. Yet Pretorius agrees that implementing BPM is a better way for a large company to work. "As the solution is increasingly being embraced by users, we are getting many requests from the business for additional functionality and process improvement. It has been rewarding to see the uptake," he says.

Would he do it again? "Even though we have experienced difficulty with the project, we would do it again - but we would do it differently. Essentially, the benefits we have gained far exceed the problems we faced in getting the project going," he says.

"Today we are doing rocket-science things, integrating into SAP and Oracle. We have been used as a reference site for a UK-based company," Pretorius adds.

nVision`s Olivier and Ovations` Human agree that BPM should be high on the corporate agenda, as it represents an effort for businesses to improve their operations. "BPM is about cost reductions, which is important especially in today`s low inflation market - which is new to South African companies. In this environment, it provides the potential to continue to deliver shareholder value; streamlined processes equal better efficiency and lower costs," he says.

However, within that lies one of the major drawbacks of BPM: it may result in layoffs of workers, which SA can ill afford. That said, should a major mining organisation have to close its doors owing to evaporated profitability, the effects are likely to be far worse.

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