BPM and ROI: Direct and In-direct Benefits

The ROI on BPM

Just What Is The ROI on BPM?

It is a topic in all the conversations on BPM, and one of the most difficult to address.  Just what is the ROI on BPM/BPA implementation?  This will be a first in a series of posts to address the Return on Investment question, and make the justification process an easy task.

So, to start, let’s get this out of the way right now:

There is no clear, exact, repeatable way to build out an ROI model for a BPM implementation.

Why?  The benefits are multi-dimensional and can be dependent on process, number of people involved, the department, the industry and on and on.  So, to begin with, let’s address the two types of benefits gleaned from any BPM implementation: Direct and In-direct.

Direct Benefits of BPM:

  • Improvements in efficiency and productivity
  • Reduction in rework, errors and process failure (Quality Improvement)
  • Reduction in required staffing through automation and process tuning
  • Risk mitigation
  • Insight for continuous process improvement and analysis

In-direct Benefits of BPM:

  • Centralized control and management of all business processes
  • Enhanced compliance
  • Simplified and centralized audit capabilities
  • Improved collaboration
  • Greater alignment of IT with business requirements

It is the combination of all these benefits that can help you compile an ROI model focused on your business and the processes you automate.  Anything I missed?  Thoughts?

In the next post, I will discuss more on ROI, and where to focus out of the gate.  Want some other posts on the topic?  See below:

5 Things to Know About BPM ROI

Insider’s Guide to BPM ROI