Implement BPM sooner, not later

A recently released Gartner paper* states that, starting in 2007, business process management (BPM) will take a more active role, driving service-oriented architecture (SOA) initiatives by placing a business face on a technology-centric activity. BPM will serve as the catalyst for cultural and organisational changes that many enterprises will fail to make.

According to Gartner, the management disciplines of BPM and the technological advancements that enable those disciplines support the needs of the real-time or adaptive enterprise of the near future.

"Organisations that begin their transformation for BPM during 2006 and 2007 will be rewarded by industry dominance by 2010. Having a process architecture (part of a business architecture) and aligning BPM initiatives with SOA initiatives are key activities to undertake in 2007."

The company also predicts "2007 will be the turning point when BPM initiatives prioritise the investment in human capital and organisational change initiatives. These initiatives will set in motion future successes in a business environment that will be characterised by extreme competition."

Gartner claims the traditional functional orientation that pervades organisations, including functional unit-level measurements and executive bonus compensation tied to functional measures, seem to produce parochial behaviour and, consequently, non-optimal enterprise performance.

"Overcoming those old views (or not) will be a major inhibitor. The emergence of public case studies show premium benefits for organisations that are willing to implement cross-functional processes, such as order to cash, procure to payment, risk underwriting, holistic client service and claims processing. This requires a culture change and skills development for continuous change that has not occurred since computing was brought into organisations.

"A growing need for proven transformation methods will foster a new culture and management behaviour and obviate risks. By 2010, academic institutions will catch up and provide the right skill base for future process leaders," the research firm notes.

"Organisations under pressure to improve their processes must learn on their own until the proper supports and partners are available. Not making progress is not a viable option. Building the kind of organisation that can embrace this kind of culture of change implied in BPM disciplines will take time. Therefore, we encourage organisations to start soon," Gartner advises.

The investment will be large over the long term to leverage incremental investments and results, but the transformation is the price for organisations caught in global and near-real-time competition.

* Predicts 2007: Align BPM and SOA Initiatives Now to Increase Chances of Becoming a Leader by 2010, Jim Sinur, Janelle B Hill. Courtesy of Gartner Africa.