Today's economic reality is one of increased competition, informed
and demanding customers, commoditisation of products and services,
and relentless pressure to cut costs. Companies are again
being asked to do more with less.
The most compelling SOA business cases establish a direct
link between SOA adoption and future revenue, new customers,
and increased profits.
Incorporating Business Process Management (BPM) into your
SOA plans offers significant opportunity for automation
and efficiency gains and return-on-investment across a
wide range of business needs and functions; translating the benefits
of SOA into numbers the business can understand.
As the table below illustrates, the expected cost savings
from fully automating a business process is about half of
the current cost of completing the same process.
BENEFITS OF IMPLEMENTING
AN AUTOMATED BPM/SOA SOLUTION
| |
Manual
Touch Points |
Cycle
Time |
Costs |
| Currently |
100 |
6
|
10x |
| After
Rationalisation |
80 |
5
|
8x |
| After
BPM/SOA |
40 |
3
|
5x |
|
Sound ambitious? Yes, but this is indeed the new
possibility in business automation, a possibility that directly
affects the bottom line and competitive advantage in today's challenging
economy.
In fact, Griffiths Waite have recently re-engineered
a number of key business processes for a client deploying
BPM and SOA - the result; substantial process automation
and optimisation has led to a massive reduction in cycle
times by 90% resulting in lower operational costs
and greater customer satisfaction.
To examine how businesses realise these cost savings, it's important
to understand how these can be achieved, measured and analysed.
Reduced labour costs
The optimal processes to focus on are those that are repetitive
and take a significant amount of labour. Any reduction in labour
equates to an immediate cost savings. We look at what we are doing
today and whether there is a faster, better way to do it. For example,
by automating a task that requires five hours of manual intervention,
we can expect to cut that time in half. Thus the 2.5 hours, multiplied
by the number of times the process is completed in a cycle, will
yield significant cost savings.
Increased productivity
In an environment where we're all asked to do more with less, the
best method to achieve the desired result will give companies a
competitive advantage. By automating many of the processes that
you are currently completing manually, you will allow these same
individuals to work more efficiently and take on new tasks.
Shorter cycle times
Time is money. By automating core business process/activities you
can expect to significantly shorten the processing time resulting
in lower operational costs and greater customer satisfaction. Leading
to monies coming in the door much more quickly than by using manual
processes.
Reduced error handling
What does it cost your organisation to fix a self-inflicted problem?
Manual processes are prone to human error. By automating these processes
you will experience a reduction in the number of human errors.
Consistent process handling
Consistency comes from having an established procedure and ensuring
this procedure is followed every time. BPM has the additional advantage
of enforcing these procedures by automating the routine tasks which
otherwise might be completed frequently using a flawed procedure.
Increased customer service
Would your customers like to see fewer mistakes? Would they also
be in favuor of more responsive service, or receiving your product
faster? BPM/SOA can help you increase the level of service to your
customers.
CONCLUSION
The ROI benefits of incorporating BPM with
SOA can span the spectrum of "hard costs" such
as regulatory compliance, streamlining operations, to "soft
costs" along the lines of enhanced customer satisfaction. As
organisations increasingly view the process as the basic unit of
business value within an organisation - you can expect to
significantly cut your costs, increase throughput
and ultimately boost the bottom line.
HOW CAN GRIFFITHS
WAITE HELP?
Griffiths Waite deliver short, concise BPM/SOA
Strategy & Planning engagements that are supported
by our "best practice methods" and deliverables. We have
also simplified starting
BPM/SOA projects by bringing our clients focused,
approachable entry points - helping businesses pursue
SOA the right-way: by taking a project-based approach.
What business and IT need are tools that allow easy design
and development - a "flowchart on steroids" that
models the business flow, documents the business flow, and is the
execution engine all at the same time. Visit Oracle
BPM/SOA for more information on Oracle's tools.
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