Tuesday, October 21, 2008

A Product and a Practice - taking BPM to the next level

Part 1

The alignment of an organization and its technology to customer value and customer satisfaction is the new frontier in Business Process Management. This paper outlines the basic approach to creating this alignment, and in the consequent bridging of the gap between the technology and business sides of an organization.

Consider this. The key processes of the organization – the ones that are typically not documented, managed, optimized or controlled are the processes that represent the experience of the customer. These processes have no internal perspective. They are what the customer experiences when they interact with us.

Those processes come in two flavors. The value propositions themselves; which can include production, purchasing, and fulfillment (or delivery) – but which we are now acting on strictly from the customer experience point of view - are the value creation processes of the organization.

All of the other processes related to these value creation processes (support, updates, feedback, etc.) are the second flavor of process (again, we are acting strictly on the customer experience here); and along with the value creation processes they determine customer satisfaction.

For these processes there are alignment, optimize and innovation activities that are not directly related to technology. They can be supported by software and they can be influenced by the capabilities of specific technology but they are primarily business activities that set the metrics and shape of process – their actionable business requirements.

When these steps are taken (and both the approach to crafting these process and the business management activities of optimization, alignment and innovation are applied) we create the foundation for business success. These are structured but subjective activities that can only be performed by people (although the nature of the activities means that anyone in the organization can participant in and use these activities without learning a complicated discipline).

By creating the best high level shape of the process with actionable metrics that directly support business strategy we create a process landscape that can be used to leverage related technologies at an entirely new value creation level. With this approach, supporting technology becomes tied into our business metrics in a way that makes their impact and contribution visible and quantifiable to the business side of the organization.

Think about that.

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