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BPM Evolution until present day:
- 1911: Frederick Taylor Industrial Engineering and process improvement.
- 1932: Fritz Nordseik Organizations can be conceived as a set of processes.
- 1930-1970: Supply Market (Industrialization): Specialization, Large production capacities, Scale economies.
- 1980: Approaches aimed at quality improvement: TQM-Six Sigma.
- 1990: Recession in western countries. Change in market from supply to demand (overproduction).
- 1993: Reengineering (Davenport, Hammer and Champy).
- 1993-2000: ERP, CMMi, SCM, e-Business, WfM, BSC.
- 2002: Smith and Fingar BPM the third wave.
- 2003: PLM, BI,BPMS, PPM, Process Mining
- 2006- : BPM as Management Discipline
Implementation of BPM solutions at European level, showing the increasing trend towards company use of process optimization:
Pedro Robledo, Executive Director of Club-BPM, on the current state of BPM worldwide and the evolution of Business Process Management:
Regarding the current state of BPM, the BPM industry experienced a global growth of 9.7 % in 2012, reaching 1,980 million Euros. One reason for this continued growth is that companies worldwide are interested in implementing critical process automation to break the organizational boundaries, have operational flexibility, comply with regulations, improve productivity and look for cost savings.
The BPM market forecasts indicate that 4,040 million Euros will be achieved in 2017 and 5,336 million in 2018. He commented that the studies undertaken by BPM –Club’s BPM Observatory state that in 2012 the BPM market grew by 7.2% in Spain with a forecast of 7-9% for the next four years. The most common initial investment in BPM is around 75,000 to 150,000 Euros, although the trend of advancing slowly leads to an approximate initial expenditure of 35,000 Euros.
The BPM manufacturers are increasingly exploring opportunities in Asia, Africa and Latin America, although few companies have subsidiary offices and instead seek distributors to explore these new markets. It is not only the American and European manufacturers that are exporting, Indian and Australian vendors are booming not only in these markets but also in Europe and the United States. Regarding the trends, Pedro Robledo indicates that BPM is evolving following the emergence of new technologies, such as Cloud Computing, Social Networks, Mobility, Big Data, Real-time Analysis and Increased Reality. The impact of these technologies on processes and Business Process Management offers competitive advantages through new unprecedented business innovation opportunities.
The BPM market is changing as organizations look for software as a service (SaaS) tools that can provide a starting point for cost reduction. Furthermore, BPM project funding does not come from the IT budget, but from the company budget in 66% of cases; and because these platforms are focused on company results, many business units can finance them a lot easier than if they were specific IT projects.
Business Process Management exists across more company horizons, although there is still confusion regarding the different BPM areas and technologies, therefore appropriate training is required and consultancy to guarantee a successful BPM implementation in the company is highly recommended. At the same time, BPM is in a state of constant evolution and BPM vendors add more features in line with advancing technologies.
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Please contact us if you would like a personalized demonstration.