BPM Can Yield 15 Percent ROI for Most Companies - Gartner

80 percent of enterprises using business process management are expected to see positive returns, according to survey

80 percent of enterprises using business process management are expected to see positive returns, according to survey

Mississauga, Ontario  July 14, 2004  Eighty percent of enterprises using business process management (BPM) will experience an internal rate of return better than 15 per cent, according to a recent study from Gartner Research.

By eclipsing the 15 percent rate of return mark, BPM projects will deliver results better than most hurdle-rate designations, and Gartner expects this to move BPM projects higher in enterprise project lists, with such initiatives likely to be aimed at competitive advantage projects in the future.

Steven Clarke, president and CEO of BPM software and services provider Sajus Technologies, said that Gartner's survey mirrors Sajus' own forecasts with regard to ownership and the business results of BPM.

"The Gartner study indicates that in many cases, IT may have started the BPM projects, but the business division took ownership by the end of the project," Clarke said. "We think this is very encouraging and positive."

The Gartner study indicated that 50 percent of the projects were business-initiated, but 75 percent were business-driven later in the project. This means that BPM projects appeal strongly to the business, and IT can use these projects to close the IT alignment gap.

The survey also suggested that there was a high rate of success for BPM projects deployed and their time to delivery. Ninety-five percent of the responding companies experienced more than a 90 percent success rate among their BPM projects. Sixty-seven percent of the BPM projects were completed in less than six months, with 50 percent completed in four months or less.

"Our customers are also finding the benefits of our 'goal-based' BPM solution beneficial to their bottom line," added Clarke. "Goal-based BPM allows an organization to see an entire business process across divisions, systems, geographies and supply chains. It is top down. It starts with an organization's most important business goals and pinpoints obstacles and opportunities in the associated business processes. Then, using built-in tools, an organization can remove the obstacles and improve the process."

The Gartner survey indicated that organizations can expect returns from properly structured business process management projects. Although Gartner cautioned organizations against jumping into BPM projects without a solid plan, enterprises could find that the financial results are hard to pass up.

For more information on solutions for business process management, see "BPM Rising," the Net Best Thing column in the October/November 2002 issue of iSource Business.