Making Case for BPM
Posted by velasolutions on September 1, 2008
Making a case for BPM
If you are trying to make a case for a BPM project in your organization, understanding the ROI that other companies have realized can help make or strengthen your position. Benefits such as reduced costs and increased revenue are common to many if not most BPM projects. Below are excerpts* from a case study about KPN, a leading Dutch Telecommunications company.
“The existing system [for taking orders] was entirely manual.”
This suggests that KPN was dealing with a straightforward and frequently repeated process that lends itself to automation—a scenario common to many organizations. According to the case study they were able to process 80% of orders automatically, which cut processing time from 2 days to 2 hours and resulted in a savings of almost 200,000 Euros a month. This demonstrates how an increase in processing speed can deliver ROI in the form of reduced costs.
“KPN expected these figures [number of orders] to increase threefold [to 30,000/month] in the coming months.”This represents the expected revenue growth component of the ROI, as KPN intended to handle this increased volume (with the aid of BPM software) without increasing head count.
“In November and December, we saw orders of 100,000 a month [10 times manual capacity]“ This represents the actual ROI they saw as a result of revenue growth. This also illustrates the importance of finding a scalable solution. If KPN had selected a solution addressed only their anticipated needs, they would have lost the revenue from 70,000 additional orders per month.
*Excerpted from BPM Now
