Is it dead or alive bpmNEXT March 30 th 2015 Santa Barbara CA Neil WardDutton Founder Research Director MWD Advisors wwwmwdadvisorscom 2 Lets work through three questions ID: 616639
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Slide1
Schrödinger’s BPM
Is it dead or alive?
bpmNEXT
, March 30th 2015, Santa Barbara CANeil Ward-DuttonFounder, Research DirectorSlide2
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2Let’s work through three questions…Is it the end of the line for BPM? Are we seeing the
end of “transformation”?Where next?Slide3
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3
BPM: Dead… or alive?No-one wants to say they sell BPM technology anymoreMarket for technology is growing only very modestly (maybe 3% p.a.)Maintenance revenue starting to dominate license revenueWe’re getting plenty of vendor selection enquiries!Increasing interest from ‘non-traditional’ sectors – retail, hospitality, travel/transport, local govt, utilities, …Slide4
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4Actually, we’re in the middle of mainstream adoption
1990
2000
2010
t
New adoption
Innovators
Early majority
Late majority Laggards
We are hereSlide5
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5What we’re seeing
Matching work effectiveness challenges to initiatives
Uptick in tech interest from mainstream app dev community
Increased importance of tech integration, use “in context”
Early adopters: maturing initiatives
Capabilities of large CSIs are a bigger part of the picture
What tech adopters tell us they’re looking for
Domain-specific expertise
Peer success
Stakeholder education/ guidance
Cost-effective skills
Supporting disparate stakeholders
Governance, change management
Managing at scale
Standards support
Open source alternatives
Dev’t
/ infrastructure integration
We are hereSlide6
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6The BPMS: fundamentally, unlike most enterprise tech
Discovery and analysis
Monitoring and optimisation
Simulation
Deployment and execution, Integration
Rules
Design
Requirements
Architecture
Design
Development
Operation
Change management
Business intelligenceSlide7
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7
Reactions to novelty
Innovators
“We tried BPM; it’s a waste of time and money”
“This is just another attempt to get us to buy an enterprise platform we won’t use”
“I can use this to reinvent the way we work”
“We need a new approach; the old ones don’t deliver”
Requirement for culture change too “expensive”
Early majority
Late majority LaggardsSlide8
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8A tale of two organisationsLarge retail group
Implemented platform to manage delivery of premium in-home customer servicesTransition from store-based service to omnichannel“Customer Project Manager”Cloud-hostedCase managementLarge banking groupImplemented platform to address group of major end-to-end operational processesIT-led initiativeSpent $millionsRan out of resources and failed to architect properlyBack to the drawing board…Slide9
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9
The edge of diffusion: low-cost, low-challenge propositionsBPMS conservatives and laggards are embracing new platforms and strategies – cloud-first, mobile-friendly, agile, low-cost propositions“Lightweight” approaches that deliver results with low requirement for cultural change“There was about a seventy year gap between Ignaz Semmelweis proving that hand washing in hospitals saves lives [in the 1850s] until the practice was widely accepted. Even today, in many hospitals less than half of the health care practitioners follow the right procedures for hand washing.”- Tim Kastelle, University of Queensland Business SchoolSlide10
Operational Intelligence platforms
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10Taking a wider view of work co-ordination & improvementPlanningDoingMeasuring / improving‘Classic BPMS’
BPA tools
Task mgmt.
ESN / collaboration
BMS
Project
mgmt
Project
mgmt
Low-code platformsSlide11
Operational Intelligence platforms
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11Interesting players worth watchingPlanningDoingMeasuring / improving‘Classic BPMS’
BPA tools
Task mgmt.
BMS
Low-code platforms
Project
mgmt
Project
mgmt
ESN / collaborationSlide12
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12The digital business era: new expectations, new threats
Changing risk landscapeNew customer expectationsNew digital-native competitorsChanging stakeholder expectationsSlide13
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13
The
Digital Enterprise
emerges from Four Internets
Internet of infrastructure, products
Internet of personal devices
Internet of conversations
Connect to customers, markets
Build products, services
Run operations, management
Internet of applications, platformsSlide14
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14
“Think big, smart small, fail quickly, scale fast”
Internet of infrastructure, products
Internet of personal devices
Internet of conversations
Connect to customers, markets
Build products, services
Run operations, management
Internet of applications, platforms
Instrumentation of products, services, processes
Agility of services, processes, business modelsSlide15
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15Focusing on Customer Experience excellence
Yourcustomer
Customer Journey stage 1
Customer Journey stage 2
Customer Journey stage 3
Customer Journey stage
n
Customer Journey stage
n+1
Gather intelligence through each customer journey to make future experiences more engaging
Marketing
Sales
Operations
ServiceSlide16
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16Real customer experience excellence requires real business integration
Scope of customer experience strategyDepth of customer experience strategyKnowingSurfacingActing
Shaping
Sales
Marketing
Operations
Service
A customer’s journeys range back and forth across business silos; your ability to act optimally depends on capabilities being integrated around customer needs through each journey
Integrated knowledge of customers and their
behaviour
is essential
A customer’s journey
The right knowledge must be provided to the right systems and empowered employees – across channelsSlide17
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17So… is BPM dead or alive?
It depends how you define BPM!Organisations are still actively transforming business processesWork co-ordination technology is still hotThe market for BPMS tech as we know it is set to decline, howeverSlide18
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18AdviceDon’t obsess over traditional competitors; look at the wider work co-ordination landscapeFind ways to balance BYOP with auditability/governance
Look at the implications of Digital strategies and how they link to broader corporate strategies, assetsEnable clients to take portfolio management approaches to business processes and digital work co-ordinationSlide19
Neil Ward-Dutton, Founder and Research Director
@
neilwdneilwd@mwdadavisors.com
Image credits: [1], [3], [7], [9], [19] licensed from iStockPhoto. [17] http://www.quickmeme.com/meme/3utmn3 What reaction do you want?