A report by Cap Gemini on the factors underpinning successful BPM

1. Business Process Management The way we see it
Global Business Process
Management Report

2. Contents
Foreword 3
About the study 4
Executive summary 6
The key to BPM success: BPM as a C-level concern 8
How may I help you? The key benefits of BPM 10
Cost efficiency 10
Business agility 12
Compliance 14
Customer-centricity 15
Social media strategy 19
Staff satisfaction 20
Show me the money: BPM and Return on Investment 21
Speculating to accumulate: BPM as a counter-cyclical investment 23
Barriers to BPM implementation 25
Key conclusions and recommendations 29
Capgemini sector and country focus 32
Financial services 33
Public sector 36
Manufacturing, automotive and life sciences 38
Consumer products and retail 40
Telecommunications, media and entertainment 42
United Kingdom 45
United States 46
Australia 47
Germany 48
Italy 49
France 50
Spain 51
Nordic Region 52
Netherlands 53
Acknowledgements 54
2

3. Foreword
Welcome to the Capgemini Global BPM become an integral and barriers to success. Management
Business Process Management key part of this proposition. of change in such endeavours is a
(BPM) Report. This report is an key part in enabling the appropriate
exploration of key trends in BPM as Business Process Management is alignment of business and technology
seen by CXOs across a broad selection becoming ever more relevant to both to support their transformation
of sectors and geographies. BPM large and small organizations in the efforts. I hope that you find this report
is perhaps at a tipping point – it’s current economic climate. At a time of benefit in the further adoption of
certainly at an exciting stage in its when many different market sectors are Business Process Management.
evolution. As both an engineer and facing slow revenue growth, customer
an Operational Research practitioner churn and increased pressures
in my early career, and subsequently on costs, BPM becomes a critical
as a consultant, I have seen BPM weapon in the battle for efficiency Bob Scott
through its development over the and effectiveness in processes. Senior Vice President
last 26 years. BPM has its roots in Furthermore, in a challenging and Global Head of BPM
management practices such as Total changing business environment Capgemini
Quality Management, Business that is characterized by uncertainty,
Process Reengineering & Model Based it allows organizations to adapt, be
Development; but the advent of the new more agile and fleet of foot. Capgemini
generation of sophisticated modelling are seeing strong demand for BPM
and process execution technologies services in markets such as USA,
has greatly enhanced BPM’s power UK, the Netherlands and France;
to truly transform businesses. This and there are clear signs of increased
has created one of the most rapidly interest in other geographies such as,
growing and attractive market sectors Germany, Sweden, Spain, Italy and
for both services and technology. We Australia. In sector terms, the financial
see BPM as a critical management services industry has led the way in
discipline that when executed against BPM adoption over the recent past,
clear, cross organizational business driven by increased focus on customer-
objectives, can deliver exceptional centricity and regulatory compliance.
value to that organization. However, Other sectors, public sector, utilities,
we also see that the potential for BPM telco, retail and manufacturing are now
is not well understood. Our decision to not only catching up, but are starting
conduct this global survey was driven to use BPM in new ways to create new
by our discussions with our clients, business models to serve customers
to understand their current position, and outsmart the competition.
their understanding, how its value
was measured, how it is used and The research findings also show
prioritized within their Business and however that this is a complex
Technology Transformation efforts. landscape, and we are not seeing
adoption of BPM in a clear and
This research confirms our belief consistent way. This report also looks
that BPM needs to be a jointly owned at some of the barriers to adoption,
Business and IT discipline. It also with organizational silos being a
demonstrates that it is starting to gain major obstacle. Waters are further
significant traction in the market muddied by fragmented budgets, lack
and investments are starting to pay of clear governance and ownership
dividends to the early adopters. At and internal politics. The objective
Capgemini we are being asked by of our investment in this research
our clients to help them simplify project was to shed some light on
and improve their business models these elements with a view to assisting
and the technology that supports organizations to create strategies that
them and we are already seeing avoid or at least mitigate some of these
3

4. About the study
Capgemini worked with FreshMinds, Only participants from firms with The second, qualitative phase of the
a UK-based research firm, to conduct more than 1,000 employees were research comprised a series of in-depth
the primary research for this study. eligible for the survey. 55% of survey qualitative interviews with senior
The research process consisted of participants were drawn from business and IT professionals drawn
two complementary phases. enterprise companies with 10,000+ from the networks of both Capgemini
employees, 16% from large companies and FreshMinds Research. These
During the initial quantitative phase with 5,001-10,000 employees and individuals were selected to represent
of the research, a 30 minute online 29% from mid-size companies a cross-section of geographies and
survey was completed by over 1,100 with 1,001-5,000 employees. sectors, and were selected for their
CXOs, senior business managers, IT practical experience of Business
directors and managers, and other Respondents were drawn quite Process Management initiatives.
senior business decision-makers. evenly from 11 markets:
In each section of the report, our
All major industries were • Australia insights are based on the quantitative
represented in the study: findings from the primary research,
• Brazil illustrated by graphical representations
• Distribution and transport of the data. These are supported and
• France illustrated by anecdotal findings
• Financial services and quotations from the qualitative
• Germany interviews that comprised the
• Public sector secondary phase of the research. In the
• India sections labelled ‘Capgemini view’ we
• Manufacturing, automotive have added supplementary analysis
and life sciences • Netherlands that is drawn from our consultants’
experience of working on BPM projects.
• Education and science • Italy
• Consumer products and retail • Spain
• Telecommunications, media • Nordic Region
and entertainment
• UK
• Utilities, energy and chemicals
• USA
• Professional services
• Healthcare
4

5. 5

6. Global Business Process
Management Report
Executive Summary
Capgemini’s Business Process Management research examines
current practice in BPM, the benefits being achieved and the
barriers to success. A key theme is the relationship between
executive-level sponsorship of BPM and its success.
The purpose of our research is to survey respondents who have both say that their business processes are
help organizations understand what knowledge and practical experience either “managed” or “optimized” − the
is involved in realizing the benefits of the topic, 82% believe that BPM top two levels of process maturity
of BPM, and avoid the pitfalls that should be treated as a C-level concern. as defined by our maturity model.
many have already encountered.
There is a correlation between process
BPM has an increasingly high profile, maturity and treating BPM as a C-level
with a growing belief among large topic. 68% of survey respondents
organizations that BPM should who state that BPM is an important
be sponsored at a senior level. Of agenda item at managerial level also
The Capability Maturity Model provides a framework for understanding where our clients fit in terms of their adoption of BPM, and the
potential roadmap for further development. The model was first developed by the Software Engineering Institute of Carnegie Mellon
University. 1
Repeatable Managed
The process
The process is deliberately
is at least managed in
documented accordance with
sufficiently agreed upon
metrics
The process Process
The starting management
point for use is defined /
confirmed includes
of a new or deliberate process
undocumented as a standard
business optimization /
repeat process improvement
process
Initial Defined Optimizing
1
http://en.wikipedia.org/wiki/Capability_Maturity_Model
6

7. Figure 1. There is a clear correlation between prioritization of BPM adoption within a The research highlighted
business and improved performance of processes. practical issues which must be
Which of the following best describes the level of process maturity within your organization? overcome in order to implement
BPM successfully, notably:
Total Respondents who indicated “Currently Business Process • Functional silo culture
Management is an important agenda item at managerial level”
• Fragmented budget
• Perception of BPM as an IT matter
• Resistance to BPM from IT
staff who have responsibility
for existing systems
• A lack of readiness or
willingness to tackle the change
6.8% 1.7% 15.9% 11.4% 27.3% 18.8% 23.6% 38.9% 15.8% 28.8% 10.7% 0.4% management issues associated
with BPM implementations
Initial Repeatable Defined Managed Optimizing Don’t know
To overcome these barriers, strong
Overall, just 16% of respondents customers reported a positive impact
leadership (including C-level
believe that their organization’s on the business. A similar proportion of
involvement) plus a clear vision are
processes are currently at the those whose objective was to improve
needed. Another requirement for
“optimized” level, but more than ever compliance and risk management
successful BPM implementation is that
before, companies are recognizing observed a beneficial impact. Specific
companies must be willing to break
the opportunity that BPM presents benefits of BPM adoption which came
with the past and embrace change.
to improve process maturity. 45% of through strongly were improved staff
participants in the survey anticipated satisfaction and greater efficiency.
Positioning an organization for
that their organization’s interest in
BPM requires some effort, but the
BPM would increase over the next 12
positive experiences of those who
months. This finding confirms that
participated in the research suggest
BPM is increasingly becoming a part of
that it is a step worth taking.
mainstream management thinking.
There is compelling evidence that Figure 2. 45% of respondents anticipated that their organizations interest in BPM would
BPM can deliver tangible business increase in the next 12 months.
value. 96% of those who had tried How do you anticipate that the current level of interest in BPM within your organization will
to measure ROI from their BPM change over the next year?
investment reported a positive return,
with 55% measuring a return of at The same amount Don’t know
A lot more
least twice their initial investment. emphasis of emphasis
This may explain the finding that
in challenging economic times,
13.8% A little more 19.9%
investment in BPM becomes more, emphasis
rather than less, attractive. 68% of
respondents stated that a more difficult 28.0%
business outlook than expected
would lead to their organization
placing increased emphasis on BPM. 3.0%
30.8%
The benefits of BPM vary depending 4.6% A lot less
emphasis
on the organization’s objectives, as
well as its level of maturity. More than A little less
emphasis
three-quarters of those respondents
who had introduced a BPM initiative
with a view to improving relations with
7

8. The key to BPM success:
BPM as a C-level concern
The more Executives know about BPM, the more likely they are
to believe that it should be regarded as a C-level concern. 82% of
participants who have both knowledge and practical experience of
the topic believe it should be part of high level business strategy.
This is in stark contrast to the 20%
of BPM rather than being
of respondents who say that BPM is
hampered by the existing
currently treated as an important
technologies. Strong BPM
agenda item at managerial level within
leadership at a strategic and
their organization. At present, a lack
tactical level is essential for
of senior sponsorship means that
long-term BPM success.
only a minority of companies are
reaping the full benefits that Business
It should be noted that while
Process Management can bring. These
strong BPM leadership is
benefits are discussed in greater detail
important, it is not sufficient.
in the next section of the report.
Programs often fail because of a
lack of day-to-day governance.
Capgemini view
This can lead to an insufficient
framework to address competing
To be successful, BPM needs to
requests for limited resources,
address organizational silos. In
differing objectives and timescales.
order to allow this to happen,
executive sponsorship at enterprise
level is essential. It is important
for C-level decision-makers to
focus on the business outcomes
Figure 3. Respondents who have the greatest knowledge of BPM are significantly more likely
to believe it should be treated as a C-level concern.
Do you consider BPM to be a C-level concern?
“Percentage of respondents indicating ‘Yes’”
82.0%
60.6%
Respondents indicating “I know a lot Total Respondents
about Business Process Management and
have plenty of practical experience of it”
8

9. “Improving process is vital for Figure 4. Just 20% of respondents stated that BPM is currently an important agenda item at
our business but can be a painful managerial level.
process which meets resistance Which of the following best describes the current level of interest in Business Process
in some quarters, hence the Management within your organization?
need for C-level sponsorship.”
IT Manager, enterprise level Our We are investigating Currently Business
organization is the concept and Process Management
utilities business, UK small projects have is an important agenda
not currently
interested in been started item at managerial
“Process improvements need the topic level and at least one
strategic initiative in
to be embedded throughout this field is under way
the organization. The top
10.5%
management’s time and 18.6%
attention needs to be given to
such a strategic and longer- 20.1%
term value creating item.”
Business Unit Manager,
Federal government agency, USA 16.6%
17.4%
We are interested
in the subject 16.8%
but there have One or more
been no concrete departments are
actions so far currently dealing with it
at a more tactical level
Don’t know
9

10. How may I help you?
The key benefits of BPM
This research examines which business drivers are most
critical in different sectors and explores the application of
BPM in these aspects.
To understand the benefits of
a BPM implementation for a Cost-efficiency
particular organization, it makes
sense to consider first which Many organizations grasp that medium-term. Of those companies
business drivers are most critical improving cost-efficiency requires surveyed that are currently planning
for the organization. The business more than simply slashing budgets. to launch a process management
challenges that respondents identified Strategic investment is required in initiative, the area in which the highest
as most important reflect the order to achieve material savings. proportion believed the project could
macroeconomic outlook prevailing 56% of respondents anticipated that have greatest positive impact was
in many developed markets and their organization would increase in maximizing cost-efficiency.
the pace of technological change. investment in efficiency over
the next 12 months. Far-sighted
companies are recognizing that
effective implementation of Business
Process Management technology and
techniques can be a route to achieving
significant efficiency savings in the
Figure 5. 56% of businesses will increase investment in maximizing cost-efficiency over the
coming year.
How will your investment in the following business area change over the next 12 months:
Maximizing cost-efficiency?
37.2% 30.1% 43.0%
32.8% 35.4% 30.7%
23.4% 29.2% 21.9%
Invest a lot more Invest a little more Invest the same
5.6% 5.0% 4.4% Total
1.1% 0.0% 0.0%
US
UK
Invest a little less Invest much less
10

11. 56% of respondents anticipated The application of BPM technology resources, or increase output with the
that their organization would and thinking automates complex same resources. BPM can be an integral
increase investment in efficiency processes, reduces manual work and part of an intelligent cost management
over the next 12 months. eliminates duplication of effort. 74% strategy, which allows a business to
of respondents who launched a BPM cut costs rather than cut growth.
initiative with a view to reducing
“With process improvement manual work reported a positive
you’ll streamline and automate impact on the business. It is possible
business processes, give to achieve the same output with fewer
everyone in your company a
complete view of the customer,
provide deeper analysis and Figure 6. The three areas in which businesses anticipate BPM could have the greatest
impact are: Maximizing cost-efficiency, optimizing time-to-market, facilitating
insight into critical sales customer self-service.
and customer metrics, keep
everyone focused on getting In which of the following areas do you think process improvement
new customers while keeping could have the greatest positive impact on your business?
the ones you already have.” Facilitating
customer Maximizing
self-service cost-efficiency
IT Consultant, enterprise level
private healthcare business, UK
29.7%
Optimizing
55.8%
time-to-market
38.8%
n.b. Respondents were able to select more than one
answer, so percentages sum to more than 100%.
Figure 7. 74% of businesses that introduced BPM to reduce manual work and increase
automation reported a positive impact.
What impact has this BPM initiative had on your business from the following perspective:
Improving process performance by reducing manual work and increasing automation?
43.1%
31.0%
15.5%
6.9%
1.7% 1.7%
A very negative Quite a negative Neither a Quite a positive A very positive Don’t know
impact impact positive impact impact impact
nor a negative
impact
11

12. Business Agility
In uncertain economic times, business agility is important. As
technology cycles move ever more quickly, businesses are constantly
striving to cut cycle times: two thirds of respondents (66%) identified
optimizing time-to-market as an important business driver.
5% of survey participants anticipated Figure 8. 78% of businesses believe their BPM investment improved the flexibility of the
that their organization would increase organization.
investment in their ability to react What impact has this BPM initiative had on your business from the following perspective:
to changing market conditions Improving the flexibility of the organization?
over the new 12 months. Agile
organizations realize higher margins
on their goods and services by taking 39.5%
advantage of market opportunities: 38.6%
two thirds of respondents (66%)
identified optimizing time-to-market
as an important business driver.
BPM enhances the ability of
businesses to react to changes in 12.5%
the business environment. 78%
of respondents who introduced 6.8%
BPM with a view to increasing the 2.3%
0.0%
flexibility of the organization reported
A very negative Quite a negative Neither a Quite a positive A very positive Don’t know
a positive impact on the business. impact impact positive impact impact impact
nor a negative
impact
12

13. “Taking the attitude that ‘it has
Capgemini view Rules management
always worked like this’ is no
way to compete. We are a lean
Any organization looking to Organizations manage their
organization, constantly trying to
achieve business agility must interactions with the external
stay ahead of the competition.”
embrace three key concepts that world through documented and
we like to call “the agile agenda”: agreed policies and procedures:
Customer Services Manager, medium-
processes are just one example.
sized manufacturing business, Sweden
• Process management Business rules are explicit policies
embedded within processes.
• Rule management
The ease with which these rules
• Integration and automation can be adapted to comply with
regulatory or market pressure can
Process management often be a source of competitive
advantage. Organizations that
To be agile, organizations know the value of rules often use
must also be in control of decision engines to find, update,
their process assets. Processes deploy, and maintain rules
must be documented and across processes in real time.
understood. They must be visible
and measured continuously – BPM is moving into an
ideally in real time – to ensure unstructured, collaborative age.
compliance with shifting market Rules management will be the
and regulatory objectives. way to stay properly governed,
visible, and compliant, while
Business Process Management dynamically keeping processes on
(BPM) solutions provide modeling track with changing and complex
capabilities that make processes desired outcomes, goals and KPIs.
explicit as models. These models
are created by, or in collaboration It will become increasingly
with, end users. More importantly, important to set rules properly
they can be updated by users in order to manage BPM for
without recourse to IT. increased agility. There will
be a premium on managing
Regardless of who makes changes, uncertainty, and on making better
the agility comes from the fact that decisions about business rules.
the changes are made to explicit Simulation and optimization
models rather than changes to techniques can help, and so can
lines and lines of arcane code. real-time analysis and response.
13

14. Compliance
Compliance is at the forefront of the minds of business
decision-makers. Large organizations face great pressure to
demonstrate their adherence to rules in an ongoing fashion.
More than 77% of respondents 70% of participants indicated that
who introduced BPM with a view responding to changes to legislation implementation of BPM. Interest
to improving compliance and risk is an important consideration for their in BPM is also growing rapidly
management reported that the business. If companies do not have in traditionally heavily regulated
initiative had a positive impact an agile, flexible system for handling industries such as life sciences and
on their business in this regard. compliance it can be a costly business. aerospace. Application of BPM can
allow businesses a great advantage
Within BPM systems, companies can in terms of accommodating new
“In the past, there were stand- build compliance into their business legislation quickly and with
alone systems followed in rules. Processes produce automated minimum disruption. BPM allows
each department and there reports, demonstrating adherence companies to isolate specific rules
was no cohesive or effective to legislation in an immediate, cost- that may be subject to change and
coordination between these efficient way. More than 77% of treat them in a certain way, so that
systems. For every purchase respondents who introduced BPM instead of having to rebuild an
order, for example, people from with a view to improving compliance application or process each time
three different departments used and risk management reported that legislation changes, it is possible
to be involved and there was a the initiative had a positive impact to retain the 80-90% of rules that
chance of violating commercial on their business in this regard. hardly change. For example, a
or legal laws as compliance was BPM application can be adjusted
only taken into consideration Capgemini view to reflect new tax legislation at
at the end of the process, the end of each tax year, without
rather than at every stage.” Rafts of new legislation in sectors having to rewrite the entire system.
such as banking and insurance are
Deputy General Manager of Finance, providing the impetus for the
large utilities business, India
Figure 9. 77% of businesses that introduced BPM to improve compliance and risk
management reported a positive impact.
What impact has this BPM initiative had on your business from the following
perspective: Improvement of compliance and risk management?
39.0%
38.1%
12.7%
6.8%
2.5%
0.8%
A very negative Quite a negative Neither a Quite a positive A very positive Don’t know
impact impact positive impact impact impact
nor a negative
impact
14

15. Customer-centricity
For consumer-facing businesses, the advent of new technology
has radically changed the way in which they engage with
their customers. In the age of always-on, ubiquitous access,
companies have to respond faster than ever before.
43% of respondents 41% of respondents anticipated Companies are using Business Process
anticipate that investment that their business would increase Management to support new ways
in multi-channel access will investment in facilitating customer self- of interacting with customers. 78%
increase over the next year. service over the next year. The figure of customers who introduced a BPM
rises to 52% in banking, and 47% in the initiative with a view to improving
telecommunications sector. Similarly interactions with clients reported
43% of respondents anticipate that that the impact on the business
investment in multi-channel access was positive in this aspect.
will increase over the next year,
including 52% of respondents in
the telecommunications sector.
Figure 10. Half of banking and communications organizations anticipate increasing
investment in facilitating customer self-service over the next 12 months.
How will your investment in the following area change over the next 12 months:
Facilitating customer self-service?
Banking TME
1.8% 2.6% 8.2% 10.3% 38.2% 40.5% 33.6% 31.0% 18.2% 15.5%
Invest much less Invest a little less Invest the same Invest a little more Invest much more
15

16. “Self-service is generally Figure 11. 78% of organizations who introduced BPM to improve interactions with clients
cheaper. The number of reported a positive impact. Improving the interactions with clients and / or CRM.
people being employed in What impact has this BPM initiative had on your business from the following perspective:
call centers can be reduced. Improving interactions with clients and/or CRM?
Younger customers in particular
expect to be serviced through 41.8%
emerging Web 2.0 channels.”
36.1%
Systems Architect, enterprise
level telecommunications
business, Australia
“BPM combines business 10.7%
processes, people and 5.7%
technology to achieve one 4.1%
1.6%
single goal: getting and keeping
satisfied customers. It’s an A very negative Quite a negative Neither a Quite a positive A very positive Don’t know
impact impact positive impact impact impact
overall strategy to help you learn nor a negative
more about your customers impact
and their behavior so you
can develop stronger, lasting
relationships that will benefit
both you and the customers.” Capgemini view
BPM solutions are increasingly
seen as CRM 2.0. BPM allows
IT Consultant, enterprise level Customers are demanding
more streamlined process for
consumer products and retail more: More personalization and
managing customer interactions
business, North America customization, a broader range
regardless of channel, all the way
of engagement channels, greater
through the front, middle and
access to information and more say
back office stages to resolution.
in the buying process. Customers
also expect recognition and a
Example: Warranty
consistent response, regardless
management
of what channel they are using.
Organizations are increasingly
One application of BPM that
using BPM to respond to these
benefits both vendor and
changes. BPM is transforming
customer is in the field of
case management and moving
warranty management in the
into the traditional CRM space.
automotive sector. Typically,
Adding a BPM layer to existing
administering warranties is
processes helps address the
clumsy and expensive, involving
problem of case management by
manufacturers, dealers, suppliers
ensuring that all information is
and customers. Information is
integrated – stakeholders have a
spread across myriad systems
360 degree view of all interactions
and claims may be governed by
with each customer. Companies
different policies and procedures.
are able to access the right data
Application of a BPM solution
in the right place and at the right
unifies all information, allowing
time. The appropriate response
the streamlining of the full
to different scenarios can be
warranty management process.
automated. Wherever customer
care is involved, there is scope
for BPM to make life easier for
both vendor and customer.
16

17. Case Study – Business Process
Management and customer-centricity
Challenge: A Dutch software business which sells book-keeping
and HR software wanted to improve customer retention.
The company redesigned its complaints procedure, Benefits of the approach
adopting BPM software and thinking to improve
internal communication between departments This rigorous complaints procedure has delivered tangible
and external engagement with customers. business value. There is a higher level of customer retention.
Complaints are far less likely to result in the cancellation of
What the process looked like before subscriptions. In fact, the rate of subscription cancellation
is actually 7% lower for customers who complained and
For years the company had no central customer service had their problem addressed than for those who did not
department. Customers were directed in an ad hoc fashion complain in the first place. Finally, there is a greater culture
to either sales or product departments, depending on of cross-departmental collaboration within the organization.
the nature of their complaint. The lack of process led
to departments shifting responsibility for complaints.
Employees gave inconsistent answers to customers
posing similar questions due to lack of documented “Everyone in the organization was trying to
procedure, causing confusion and further complaints. avoid taking any responsibility, saying ‘it’s
not our department, it’s their department who
What it looks like now should be dealing with it.’ That was a major
issue – no one wanted to say to the customer,
The company created a team dedicated to customer ‘I’ll take responsibility, I’ll make sure this goes
service. Customers are presented with a telephone menu well, I’ll make sure that you’re happy’.”
as soon as they dial in so that their complaint can be
categorized. Customer services representatives note Complaints Manager
down the details of problems in a case file. Cases are
divided into ‘dissatisfactions’ and ‘complaints’ (which
are more serious). Notifications are then sent to agents
in departments such as technical support and sales with “We now invest the time to make customers
the relevant expertise who follow up on the issues. The happy: a fundamental part of this is working as a
more serious ‘complaints’ are dealt with at managerial company, not just as departments who are out for
level. All agents have access to the same case file and themselves and care only about their targets.”
all interactions are logged ensuring seamless sharing
of information. The success of the execution of the Complaints Manager
complaints procedure is measured quantitatively.
Issues encountered
Staff were initially resistant to this new process, which
was perceived as bureaucratic. The sales department
felt that handling complaints management hindered
them in meeting targets. Different departments were
unused to working collaboratively to solve problems.
17

18. 18

19. Social media strategy
One area that was investigated in our BPM research
was the level of emphasis that companies are placing on
both the threat and opportunity from social media.
53% of respondents believe this “We need to introduce a system
business driver will become more technology has already had an to handle social media. At the
important for their business over the impact on customer’s daily lives moment one team writes down
next 12 months. This figure rises and is here to stay. Through social mentions on post-its before
to 60% in the United States, the listening and an effective Business handing them over to another
market which sets the pace in terms Process Management system, team to respond. You can
of harnessing new forms of media organizations ability to listen to the guess how efficient this is.”
to improve business processes. conversation and respond through
changing business processes will Business Unit Manager, large
Anecdotal evidence from the research, become a major differentiator. insurance business, Spain
illustrated by the quotations, It is essential to combine social
shows how some large businesses media data with unstructured “The power of social media
have been caught off-guard by the and structured data from other is rapidly increasing, which
revolutionary effect that social sources to provide a holistic means that it will become a
media has had, and in particular and representative picture of focal point for all mass market
the way that B2C organizations what your customers are saying. businesses. Market trends will
interact with their customers. A social media strategy that is be dictated by social media
supported by an organization that trends, and the public view of a
There has been some complacency is able to rapidly alter business company will be determined by
in engaging with and investing in processes, listen to and identify its social media interaction.”
social media. It is clear that businesses and manage risk early on, and
must develop a social media strategy. also provide sales opportunities Enterprise Architect, enterprise level
Organizations can no longer dictate the will be an effective one. automotive business, Germany
terms of engagement with customers –
it is now customers who are in control
of the conversation. In light of this
Figure 12. 53% of businesses anticipate that social media strategy will become more
loss of control, organizations need to important over the next 12 months.
listen to and respond effectively to
customer-initiated activity. Customers Which of these drivers do you think are likely to become more or less important over the next
12 months: Managing the opportunities and threats of social media?
now expect a greater level of attention,
as well as a near-instantaneous Total
response. Businesses should also be
USA
aware of what a powerful asset this
rich real-time feedback can be.
Capgemini view
Organizations are traditionally
used to being in control of
customer interactions and have
long built IT systems that push 2.3% 1.8% 5.9% 1.8% 39.2% 36.3% 31.6% 33.6% 21.1% 26.5%
messages to the customer. It is
Become much Become a little Stay the same Become a little Become much
clear, however, that social media less important less important more important more important
and the consumerization of
19

20. Staff satisfaction
Large organizations are engaged in a continuous effort to create
and sustain a rewarding working environment that mobilizes and
motivates their staff. An important benefit of improved processes
that emerged from this research is the impact on staff satisfaction.
“The previous management 75% of those organizations within
underestimated process our sample that launched a BPM but also in terms of improving job
development. Processes initiative with a view to improving satisfaction for the teams involved.
weren’t documented. We staff satisfaction reported that the Alongside traditional ROI models
had to repeat the same steps project had had a positive impact companies should consider the
over and over again to reach in this regard. Strikingly, not one ease of use of resultant systems,
a solution. Money and time respondent reported that the initiative the reduced cost of training
were wasted, staff weren’t had had a negative impact. and the improved retention
motivated and customers were of valuable team members.
frustrated. Now we’ve improved Capgemini view
our processes, all our staff are The quantitative research
convinced of the benefits.” Enhanced staff satisfaction is an findings show that Business
interesting ‘hidden benefit’ of Process Management initiatives
Department Officer, enterprise process improvement. Enhanced can have a positive impact
level insurance company, France staff experience is rarely built into on many different parts of an
business cases for BPM investment. organization. The next section of
However, removing laborious the research demonstrates how
manual workflows, reducing the BPM ultimately delivers value in
need for ad-hoc intervention and terms of Return on Investment.
making it easier for staff to operate
efficiently, can have clear benefits,
not just in terms of productivity
Figure 13. 75% of businesses who implemented BPM to improve staff satisfaction reported
a positive impact on the business.
What impact has this BPM initiative had on your business from the following perspective:
Improving staff satisfaction?
40.8%
33.8%
19.7%
5.6%
0.0% 0.0%
A very negative Quite a negative Neither a Quite a positive A very positive Don’t know
impact impact positive impact impact impact
nor a negative
impact
20

21. Show me the money:
BPM and Return on Investment
The research demonstrates clearly that investment in Business
Process Management can yield tangible business value.
Of those respondents who had tried to measure ROI from
BPM, a remarkable 96% reported a positive return, with 55%
measuring a return of at least twice their initial investment.
“We consolidated by centralizing In the past, businesses found it difficult Figure 14. Just 39% of respondents have
the IT infrastructure so that to quantify the Return on Investment attempted to measure ROI from BPM in a
formal way.
we didn’t have hundreds of from BPM programs as the benefits
little silos everywhere. This were various and wide-ranging. Have you attempted to measure
wasn’t a management power It can be a challenge to measure Return on Investment (ROI) from this
BPM initiative in a formal way?
trip, it was about saving a lot intangible but essential elements of
of money. Ultimately, from BPM, such as cultural change and
an economic perspective, employee behavior. Indeed, our Yes No Don’t know
all the departments win.” research shows that businesses are
still learning how to assess the value
Senior VP for IT, consumer of a BPM investment, with only 39%
38.7% 29.0%
products and retail Business, UK of respondents stating that they have
tried to measure ROI in a formal way.
Capgemini view
Setting the business case for
organizations is often challenging.
Getting the appropriate balance
32.3%
between the different objectives
across the organization is key
and rarely an easy task. However
once objectives are set, and
measurements in place, we have
seen BPM programs delivering
significant ROI. In addition,
it is important to measure
quantitative and qualitative
factors when implementing BPM,
and to track those measures
through to completion of the
project. Those results in turn
inspire further change.
21

22. Figure 15. 96% of respondents calculated a positive ROI from investment in BPM.
Examples of Return on
Investment What level of ROI did you calculate for the BPM investment?
Cost reduction and Negative Return
on Investment 1.9%
efficiency gains:
No Return on
BPM can help lower the cost Investment 1.9%
of running, changing, and
executing processes. Up to 1.5 times ROI 12.4%
A North American Between 1.5 and
2 times ROI 24.8%
insurance organization:
Between 2 and 22.2%
• Gained 40% cost reduction 3 times ROI
over a five year period
Between 3 and 12.0%
4 times ROI
• Reduced training time
from as long as two Between 4 and
9.0%
5 times ROI
weeks to just one day
Between 5 and 4.1%
• Gained ability to execute the 10 times ROI
First Notice of Loss (FNOL)
process with greater efficiency Greater than
10 times ROI 2.2%
and accuracy as a result of
increased automation
Don’t know 9.0%
• Introduced real-time analytics
of overall claims operations
An automotive company:
• Reduced FNOL Total Cost of
Ownership by approximately • Improved their cycle
$12 million over the four years time by 50%
following implementation
A worldwide engineering
• Was able to offer its organization:
customers a market-leading
claims experience • Ran a global operation to
optimize and harmonize the
A public sector organization: leading business processes
and support, leading
• Used sophisticated case to precise supply chain
management to achieve planning and processing
a win-back time of 70
minutes per case • Achieved real-time, end-
to-end transparency
Increase in competitiveness
and agility • Established a more accurate
process, with accelerated
BPM reduces time-to-market for supply chain performance and
new products and services. improved competitiveness
A global banking organization:
• Reduced time-to-market for
new product release from
nine months to four months
22

23. Speculating to accumulate:
BPM as a counter-cyclical investment
The high level of Return on Investment that BPM can
potentially deliver, discussed in the previous section of
the report, perhaps explains why interest in BPM actually
increases in relatively challenging market conditions.
“Growth via demand will be 68% of respondents who were seriously Figure 16. 68% of respondents considering
difficult, so we have to improve considering investment in BPM state a BPM investment state that a more
challenging economic climate over
profitability by enhancing that a more challenging economic the next 12 months would increase the
our internal processes.” climate would increase the attention attention their organization paid to process
paid to process improvement. In improvement to process improvement.
Risk Manager, enterprise level theory this is a simple equation: at If the economic climate in your sector
manufacturing business, UK a time when it is difficult to acquire proved more challenging over the next 12
new business, process improvement months, what impact do you anticipate
this would have on your organization’s
offers a way to boost the bottom attitude to process improvement?
line by making cost savings.
We will pay a lot more attention
However, challenging conditions can
We will pay a little more attention
create barriers to BPM adoption. If
employees are concerned about job It will not impact on the attention paid
security and their personal well-being, We will pay a little less attention
BPM is more likely to be perceived as a We will pay a lot less attention
threat rather than an opportunity. 44%
Don’t know
of respondents in the survey stated
that resistance from staff responsible
6.4%
for existing systems such as SAP and 2.5%
31.5%
CRM within their organization was 5.6%
a barrier to process improvement.2
17.9%
Bottom line pressures can lead to a
reductive focus on costs rather than
an emphasis on the bigger picture.
Money allocated to IT could be spent
maintaining outdated systems that
have no place in a modern technology
environment. This is often a false
economy. The BPM institute blog
36.1%
uses an apt analogy to explain the
likely consequence of trying to cut
operational and process-related costs
in the face of a downturn: “These
organizations are just starving
themselves, and it will likely come back
to haunt them as the core infrastructure
of the company – the corporate
metabolism, is crippled to the point
where it cannot function effectively.”3
23

24. “Even with the current economic 46% of survey respondents identified
climate, middle and senior a lack of change readiness or
management still find it difficult willingness at their organization as
to embrace culture change, a barrier to improving processes.4
move with the times and take Reactive companies that are not
advantage of the efficiencies ready to confront changing times will
and cost savings that can not be able to introduce successful
be delivered by BPM.” BPM. In order for a company to
successfully deploy BPM, the
Process Manager, local company must be able to embrace
government agency, UK change across the organization.
In the following section of this
report ways in which barriers
“Companies in a defensive mode to BPM adoption can be broken
simply aim to survive. BPM will down are examined further.
seem too daunting for them –
rather than investing in new tools
and processes, they will cut IT Capgemini view
budgets and try and muddle
through with legacy tools in their BPM is not simply an out-of-
existing format for a little longer.” the-box technological solution
that can be introduced at will.
Process Manager, enterprise BPM is a discipline that requires
level telecommunications the adoption of a new cultural
business, North America mindset. In a downturn, BPM is
attractive to companies that are
offensively orientated, and looking
to push their business to grow. In
order to introduce effective BPM,
an organization must be receptive
to change, willing to break its
mould and become something
different. Executive sponsorship
is key to driving this forward.
One of the trends we have
observed (though not suitable
for all programs) is towards short
term investments with fast ROI.
BPM projects are often iterative
– lasting 6-10 weeks per project,
with each phase linked to a value
based objective. In this context
budget allocation is easier.
2 See Figure 21
3 http://www.bpminstitute.org/resources/white-papers/
bpm-ea-two-smart-investments-recession
4 See Figure 22
24

25. Barriers to BPM implementation
The research highlighted various practical issues which prevent
organizations from successfully implementing BPM.
Five barriers in particular team all have their own targets and
business domain. It requires will
were identified: priorities. It requires a different
and impetus to transcend ways
way of looking at processes to make
of working that are constructed
• Functional silo culture them end-to-end more effective.
around existing bureaucratic
structures. Vision and leadership
• Fragmented budget
from a senior level is essential
Capgemini view
for long-term BPM success.
• Perception of BPM as an IT item
BPM-driven ways of working
BPM implementation renders the
can then add value to a business
• Resistance to BPM from IT greatest value when it is applied
by linking functional silos and
staff who have responsibility across organizations and across
eradicating the inefficiency of
for existing systems applications. However initiatives
different business units working
tend to deal with one subset of
in competition with one another
• A lack of change readiness processes because it is much easier
on disconnected projects.
or willingness to gain sponsorship for a process
improvement initiative within a
All these internal barriers to
cooperation must be addressed
in order to achieve commonality
of purpose, which can directly
contribute to business value. Figure 17. 55% of businesses state that functional silo culture is a barrier
to process improvement.
Functional silo culture To what extent do you agree that these barriers to process improvement exist in your
organization: Different parts of the organization tend to operate in functional silos?
55% of respondents identified
functional silo culture as a barrier
to process improvement at their
e
gre
organization, making it the most
ly a
ee
frequently cited obstacle. Survey
ong
agr
ee
respondents who had experience of
agr
dis
Str
BPM initiatives explained how before
htly
nor
introducing BPM, organizations were
Slig
re e
e
compartmentalized into functional
gre
w
r ag
kno
isa
units, with objectives and performance
6.6% lightly dee
ithe
n’t
r
measures broken down accordingly.
sag
Do
Ne
This method of working promotes
3.2% gly di
S
%
%
%
%
efficiency within a particular silo,
on
23.0
24.7
10.3
32.1
but undermines the possibilities for
Str
working collaboratively and seamlessly
across an organization. The attempt to
introduce cross-functional BPM can
lead to internal politics. For example,
when a retailer attempts to improve
cross-channel access, addressing
the issue is immediately problematic
because the online-channel owner,
in-store channel owner, telephone-
channel owner and customer service
25

26. “In telecoms, the new buzzword Perception of BPM as an IT item
Capgemini view
is an “integrated supply chain”,
how to take everything from The survey findings indicate that
BPM programs need to be driven
manufacturing, procurement, there is little consensus across
by a collaborative team of IT
logistics etc. and put that all organizations as to who should
and business. Business should
together under one ownership. take primary responsibility for
drive the business case, the
In practice it never works like process improvement. In different
process design and outcomes,
that. At the moment we have organizations across the sample, this
and IT needs to supply the
an operations organization, was borne variously by IT, business
infrastructure, core systems
a procurement organization, management, operations, or even
and integration expertise. BPM
a logistics organization dedicated process management
brings the two – business and IT –
and a delivery function all units. In many instances, budget
together, to make those decisions
operating in different silos. is fragmented across departments,
jointly. It also creates a common
All departments affected by a which can undermine the
environment which serves to
process should work together.” effectiveness of attempts to launch
eliminate the communication
coherent, cross-functional process
barriers that traditional tools
Head of Logistics, enterprise management initiatives.
and methods tend to amplify.
level telecommunications
business, North America 48% of respondents identified the
perception of BPM as an IT item
as a barrier to effective process
improvement. The figure is higher
“Different departments
in certain European markets such
were taking decisions in
as Italy, where it rises to 54%.
their own way, with their own
Perception of BPM as an IT item can
philosophies and objectives.
hinder implementation as while
This created a lot of tensions
many of the costs and challenges
and processes became stuck.”
fall on the IT side, the principal
benefits fall on the business side.
Customer Services Manager, medium
sized software business, Netherlands
Figure 18. Perception of BPM as an IT item is deemed a barrier to process improvement by
almost half of respondents.
To what extent do you agree that these barriers to process improvement
exist in your organization: BPM is still seen too much as an IT item?
e
gre
ee
ee
ly a
agr
agr
ong
htly
dis
Str
Slig
nor
re e
e
gre
r ag
w
isa
kno
re e
ithe
10.8 htly d
sag
n’t
Ne
Do
4.4% gly di
Slig
%
%
%
%
8.7%
on
29.6
28.7
17.9
Str
26