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Towards a BPM Success Model: An Analysis in South African Financial Services Organisations

BPMDS’09. Towards a BPM Success Model: An Analysis in South African Financial Services Organisations. Gavin Thompson, Lisa F Seymour & Brian O'Donovan Centre for Information Technology and National Development in Africa http://www.commerce.uct.ac.za/ Organisations/CITANDA/.

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Towards a BPM Success Model: An Analysis in South African Financial Services Organisations

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  1. BPMDS’09 Towards a BPM Success Model: An Analysis in South African Financial Services Organisations Gavin Thompson, Lisa F Seymour & Brian O'Donovan Centre for Information Technology and National Development in Africa http://www.commerce.uct.ac.za/Organisations/CITANDA/

  2. Research Question What are the enablers of BPM success? How is success defined?

  3. Rosemann, de Bruin & Power BPM success model [1]

  4. Context • SA Financial Services in 2008 • SA economy favourable until end 2007, shifted in 2008 • Increase in interest rates and oil prices, • Concerns around political stability. • Org1 & Org2 • large, multi-nationals • reducing operating costs • history of BPR • Org3 & Org4 • medium size • Started process improvementwith implementing BPM suite Source: Kevin Lings, Stanlib, May 27, 2008.

  5. Method • Interpretive philosophy • General Inductive Approach [9] • Semi-structured interviews, 2 documents

  6. Not just strategic alignment

  7. Insights on Technology or Methodology first Org1 and Org2 had started with process improvement and was following that with technology. “We did a lot of departmental level Lean improvements but realised that we could not get any further improvement until we started linking our value chain together and supporting that by BPM” (Int1). In contrast, both Org3 and Org4 had gone the technology route first. “We have to bed the system down and then look at how we can improve the process” (Int8). The technology-first approach: • may help to alleviate some of the IT resource constraints, • would provide rich process metrics to support Six Sigma’s statistical data analysis requirements.

  8. Linkages • A continuous improvement culture can not be established in isolation of a clearly communicated BPM strategy. • Many of the People/resource enablers will be best addressed when there is a clearly communicated BPM strategy in place. • The structured training • The creation of IT capacity to implement process improvements. The average IT department will be unwilling to incur this extra cost unless it is in response to a stated corporate strategy. • Process improvement methodology needs to be customised to organisational culture. • Creating a process language that employees can identify with. • The use of methodology is dependent on the amount of technology implemented, specifically BAM

  9. BPM enables Process Success • Process Quality • “It definitely reduces error rates. … • The error rates were previously about 5 – 8% and are now down to 0.something %” • Process Efficiency • “The automation saves time. We are definitely doing a lot more now with the same number of people than what we did two years ago” • Process Agility • Int3 reported that his organisation had to wait about six months to get process changes implemented on its legacy systems, with BPM technology, they would benefit from better process agility and flexibility

  10. Defining BPM Success • Process success does not necessarily result in business success. • Business Success can be measured through improved operational cost efficiency, improved client experience, and business agility. • BPM Success should only be achieved when BPM initiative leads to measurable degrees of business success.

  11. Conclusion • This researchexpanded on the Rosemann, de Bruin and Power [1] BPM success model • Generalisability can be argued • It is hoped that this model will be able to assist organisations in making a success of BPM and that future research could validate this model in other industries.

  12. References 1. Rosemann, M., de Bruin, T., Power, B.: A model to measure Business Process Management Maturity and improve performance. In Jeston, J., Nelis, J. (Eds), Business Process Management, Butterworth-Heinemann, London, Chapter 27 (2006) 10. Lee, R. G., & Dale, B. G.: Business Process Management: A Review and Evaluation. Business Process Management Journal, 4 (3), 214-225. (1998) 11. Melenovsky, M. J., Sinur, J.: BPM Maturity Model Identifies Six Phases for Successful BPM Adoption. Stamford: Gartner (2006) 12. Rosemann, M., de Bruin, T.: Application of a Holistic Model for Determining BPM Maturity. Proceedings of the AIM Pre-ICIS Workshop on Process Management and Information Systems, Washington D.C., December, 46-60. (2004) 13. Mooney, L.: Building a Business Case for BPM - A Fast Path to Real Results, http://www.metastorm.com/ec/sf/WP_Building_a_Business_Case.asp (2008) 16. Lees, M.: BPM Done Right: 15 Ways to Succeed Where Others Have Failed, http://whitepapers.silicon.com/0,39024759,60447963p,00.htm (2008) 19. Engiles, M., Weyland, J.: Towards Simulation-Based Business Process Management. Proceedings of the 35th Conference on Winter Simulation: Driving New Orleans Innovation, 225-227. (2003)

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