The business process management (BPM) market is experiencing rapid change and growth, as organisations around the world begin to embrace the potential of mobile solutions and cloud computing to transform their business processes.
The cloud and mobile opportunities represent the next step forward for businesses that have already deployed BPM suites. These technologies promise to help organisations become more flexible and efficient in the way they conduct their daily business, although mobilising processes and redesigning them to be accessed in new ways pose some challenges for enterprises.
"South African companies have embraced BPM," says Patrick Shields, Software AG's CTO for Africa. "The early adopters have started to see the benefits from it."
BPM is already proving its value as the link between organisational strategy and the business process logic as it exists in the enterprise's operational systems, he adds.
What's more, companies are now able to track organisational performance objectively and in real-time using information from transactions rather than relying on subjective reports from managers. But there's some hesitation among South African companies about leaping into newer technologies, he adds.
They are not alone in their cautious approach to BPM in the cloud. In a recent report, Research and Markets says global adoption of BPM in the cloud is moving relatively slowly because managers are taking a careful approach amid compliance concerns. Nonetheless, usage of these solutions is likely to grow at a steady rate, owing to the increasing demand for automation and virtualisation of the workplace.
The market researcher projects that the business process as a service (BPaaS) and cloud BPM markets will grow in value from $1 billion in 2013 to $7.12 billion by 2018. BPaaS and cloud BPM are about adding a business process layer on top of cloud services such as software as a service, or platform as a service and infrastructure as a service.
The next big service
Process in the cloud and as a service is likely to be 'the next big thing' in the software as a service space, says Shields. The benefits of putting processes in the cloud could include increasing transparency of processes, allowing for virtualisation of the workplace, enhanced flexibility and better information for decision-making.
"By moving your processes into the cloud, you can scale [resources] according to demand," says Alexander Mehlhorn, CEO at Framework One, a provider of Windows Azure-based cloud services to the South African market. Moving business processes into the cloud can provide companies with the scalable back-end infrastructure they need to automate more of their tasks and processes, Mehlhorn says.
By moving your processes into the cloud, you can scale [resources] according to demand.
Alexander Mehlhorn, CEO, Framework One
In theory, enterprises no longer need to invest in their own infrastructure to power their core operational processes and systems. They can simply scale their usage of a cloud provider's computing resources up or down in response to the needs of the business. Companies that can augment their business analysis with sound systems thinking will optimise their internal processes, reduce inefficiencies and boost their bottom line, says Mehlhorn.
Automated processes could tap into databases before carrying out tasks and actions, with no need for human intervention. For example, a loan application process could look for a customer's financial data rather than requiring the customer to fill in forms and provide documents to a teller. Or an ERP system could trigger a replenishment process when inventory in a warehouse is running low.
Mehlhorn concedes that security and regulatory concerns are holding back adoption of cloud BPM services among South African organisations. In addition, IT departments are fighting cloud adoption to keep control of their turf. But the cost reductions and the potential for automating processes means the shift to cloud BPM is inevitable, he says.
Going mobile
BPM in the cloud also clears the way for business processes to be mobilised more effectively. With high penetration of smartphones in South African enterprises, mobile BPM promises local businesses the opportunity to improve and streamline processes by making them portable. Between the cloud and mobility, they allow for work to be done in a more distributed and device-independent manner, allowing enterprises to be more flexible and responsive.
By integrating mobile technology into their daily business processes, organisations can speed up vital business functions as well as provide real-time access to business-critical information, says Sean van der Westhuizen, business development lead at Mint Management Technologies.
"BPM among our customers is driven mainly by a specific focus on real-time processing of information. Having the information on hand, in real-time, makes the focus on what is important accessible to management immediately," he says. Rather than needing workers to check in at the office to fill in a form or capture data, they can send information and work requests straight to the office from the mobile device so the next step in a process is triggered without delay.
BPM among our customers is driven mainly by a specific focus on real-time processing of information.
Sean van der Westhuizen, business development lead, Mint Management Technologies
Of course, this does mean organisations must evaluate their processes to see if they can be mobilised or whether they will need to be re-engineered for mobility. "Organisations need to have a process defined," says Van der Westhuizen. "Then they can identify where the bottlenecks are."
Another facet of mobile BPM lies in enabling executives to monitor process performance and capture information in real-time on their handsets or tablets. They're able to track KPIs and operational metrics on their mobile devices, so they can take action immediately if they see a problem unfolding.
First published in the November 2013 issue of ITWeb Brainstorm magazine.
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