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Global Business Process Management Report Contents Business Process Management The way we see it Global Business Process Management Report Contents Foreword 3 About the study 4 Executive summary 6 The key to BPM success: BPM as a C-level concern 8 How may I help you? The key benefits of BPM 10 Cost efficiency 10 Business agility 12 Compliance 14 Customer-centricity 15 Social media strategy 19 Staff satisfaction 20 Show me the money: BPM and Return on Investment 21 Speculating to accumulate: BPM as a counter-cyclical investment 23 Barriers to BPM implementation 25 Key conclusions and recommendations 29 Capgemini sector and country focus 32 Financial services 33 Public sector 36 Manufacturing, automotive and life sciences 38 Consumer products and retail 40 Telecommunications, media and entertainment 42 United Kingdom 45 United States 46 Australia 47 Germany 48 Italy 49 France 50 Spain 51 Nordic Region 52 Netherlands 53 Acknowledgements 54 2 Foreword Welcome to the Capgemini Global BPM become an integral and barriers to success. Management Business Process Management key part of this proposition. of change in such endeavours is a (BPM) Report. This report is an key part in enabling the appropriate exploration of key trends in BPM as Business Process Management is alignment of business and technology seen by CXOs across a broad selection becoming ever more relevant to both to support their transformation of sectors and geographies. BPM large and small organizations in the efforts. I hope that you find this report is perhaps at a tipping point – it’s current economic climate. At a time of benefit in the further adoption of certainly at an exciting stage in its when many different market sectors are Business Process Management. evolution. As both an engineer and facing slow revenue growth, customer an Operational Research practitioner churn and increased pressures in my early career, and subsequently on costs, BPM becomes a critical as a consultant, I have seen BPM weapon in the battle for efficiency Bob Scott through its development over the and effectiveness in processes. Senior Vice President last 26 years. BPM has its roots in Furthermore, in a challenging and Global Head of BPM management practices such as Total changing business environment that is Capgemini Quality Management, Business characterized by uncertainty, it allows Process Reengineering & Model Based organizations to adapt, be more agile Development; but the advent of the new and fleet of foot. Capgemini is seeing generation of sophisticated modelling strong demand for BPM services in and process execution technologies markets such as the USA, the UK, the has greatly enhanced BPM’s power Netherlands and France; and there to truly transform businesses. This are clear signs of increased interest in has created one of the most rapidly other geographies such as, Germany, growing and attractive market sectors Sweden, Spain, Italy and Australia. for both services and technology. We In sector terms, the financial services see BPM as a critical management industry has led the way in BPM discipline that when executed against adoption over the recent past, driven clear, cross organizational business by increased focus on customer- objectives, can deliver exceptional centricity and regulatory compliance. value to that organization. However, Other sectors, public sector, utilities, we also see that the potential for BPM telco, retail and manufacturing are now is not well understood. Our decision not only catching up, but are starting to conduct this global survey stemmed to use BPM in new ways to create new from discussions with our clients. We business models to serve customers sought to gain a better impression of and outsmart the competition. their understanding of BPM, how they measure its value, and how far it is The research findings also show prioritized within their Business and however that this is a complex Technology Transformation efforts. landscape, and we are not seeing adoption of BPM in a clear and This research confirms our belief consistent way. This report also looks that BPM needs to be a jointly owned at some of the barriers to adoption, Business and IT discipline. It also with organizational silos being a demonstrates that it is starting to gain major obstacle. Waters are further significant traction in the market muddied by fragmented budgets, lack and investments are starting to pay of clear governance and ownership dividends to the early adopters. At and internal politics. The objective Capgemini we are being asked by of our investment in this research our clients to help them simplify project was to shed some light on and improve their business models these elements with a view to assisting and the technology that supports organizations to create strategies that them and we are already seeing avoid or at least mitigate some of these 3 About the study Capgemini worked with FreshMinds, Only participants from firms with The second, qualitative phase of the a UK-based research firm, to conduct more than 1,000 employees were research comprised a series of in-depth the primary research for this study. eligible for the survey. 55% of survey qualitative interviews with senior The research process consisted of participants were drawn from business and IT professionals drawn two complementary phases. enterprise companies with 10,000+ from the networks of both Capgemini employees, 16% from large companies and FreshMinds Research. These During the initial quantitative phase with 5,001-10,000 employees and individuals were selected to represent of the research, a 30 minute online 29% from mid-size companies a cross-section of geographies and survey was completed by over 1,100 with 1,001-5,000 employees. sectors, and were selected for their CXOs, senior business managers, IT practical experience of Business directors and managers, and other Respondents were drawn quite Process Management initiatives. senior business decision-makers. evenly from 11 markets: In each section of the report, our All major industries were • Australia insights are based on the quantitative represented in the study: findings from the primary research, • Brazil illustrated by graphical representations • Distribution and transport of the data. These are supported and • France illustrated by anecdotal findings • Financial services and quotations from the qualitative • Germany interviews that comprised the • Public sector secondary phase of the research. In the • India sections labelled ‘Capgemini view’ we • Manufacturing, automotive have added supplementary analysis and life sciences • Netherlands that is drawn from our consultants’ experience of working on BPM projects. • Education and science • Italy • Consumer products and retail • Spain • Telecommunications, media • Nordic Region and entertainment • UK • Utilities, energy and chemicals • USA • Professional services • Healthcare 4 5 Global Business Process Management Report Executive Summary Capgemini’s Business Process Management research examines current practice in BPM, the benefits being achieved and the barriers to success. A key theme is the relationship between executive-level sponsorship of BPM and its success. The purpose of our research is to survey respondents who have both say that their business processes are help organizations understand what knowledge and practical experience either “managed” or “optimized” − the is involved in realizing the benefits of the topic, 82% believe that BPM top two levels of process maturity of BPM, and avoid the pitfalls that should be treated as a C-level concern. as defined by our maturity model. many have already encountered. There is a correlation between process BPM has an increasingly high profile, maturity and treating BPM as a C-level with a growing belief among large topic. 68% of survey respondents organizations that BPM should who state that BPM is an important be sponsored at a senior level. Of agenda item at managerial level also The Capability Maturity Model provides a framework for understanding where our clients fit in terms of their adoption of BPM, and the potential roadmap for further development. The model was first developed by the Software Engineering Institute of Carnegie Mellon University. 1 Repeatable Managed The process The process is deliberately is at least managed in documented accordance with sufficiently agreed upon metrics Process The starting The process is defined / management point for use includes of a new or confirmed as a standard deliberate process undocumented optimization / repeat process business process improvement Initial Defined Optimizing 1 http://www.sei.cmu.edu/cmmi/ 6 Figure 1. There is a clear correlation between prioritization of BPM adoption within a The research highlighted business and improved performance of processes. practical issues which must be Which of the following best describes the level of process maturity within your organization? overcome in order to implement BPM successfully, notably: Total Respondents who indicated “Currently Business Process • Functional silo culture Management is an important agenda item at managerial level” • Fragmented budget • Perception of BPM as an IT matter • Resistance to BPM from IT staff who have responsibility for existing systems • A lack of readiness or willingness to tackle the change 6.8% 1.7% 15.9% 11.4% 27.3% 18.8% 23.6% 38.9% 15.8% 28.8% 10.7% 0.4% management issues associated with BPM implementations Initial Repeatable Defined Managed Optimizing Don’t know To overcome these barriers, strong Overall, just 16% of respondents customers
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