Business Case 1 : With Clear Financial ROI
As intangibles become core elements of business success and tangible elements get
relegated to hygiene levels , business environment specially in developing countries
like India demands that organizations multiply their efforts to improve the efficiency
/ effectiveness of their processes that have a positive impact on financial performance.
Organizations looking to grow revenue and decrease costs are increasingly using
Business Process Management (PBO) to reach their goals.
- Business buyers rave about the ROI and often report 10-times ROI than their counterparts
that buy BPM like mundane infrastructure technology - a combination of hardware
and software BPM projects are therefore not technology decisions, they are business
- Increasingly, Business Process Management is seen as a bottom line
enterprise application and studies have shown that the ROI on PBO projects has been
fantastic, with clients reporting initial ROIs in the range of 100% to 300% and
payback timeframes of 6 to 12 months.
- Finally according to Gartner - 80% of enterprises using PBO will experience an internal
rate of return better than 15 per cent.
- Financial ROI
- 4.1 Produces lower costs and higher revenues by:
- 4.1.1 Performing faster completion times and shorter processing cycle times.
- 4.1.2 Saving costs from higher productivity and throughput.
- 4.1.3 Reallocating valuable human resources.
- 4.1.4 Creating competitive advantage from market capitalization.
- 4.1.5 Improving responsiveness to market opportunities.
- 4.1.6 Reducing administration time and hand-offs.
- 4.1.7 Eliminating manual errors.
- 4.1.8 Creating more efficient data entry environment.
- 4.1.9 Reducing support costs.
- 4.1.10 Improving ad hoc reporting.
- 4.2 Reduces the time spent in satisfying a customer inquiry by continuously
improving and monitoring customer service processes.
- 4.3 Eliminates revenue
losses due to the enforcement of rules and processes relative to strategic
- 4.4 Reduces the number of FTEs (full-time employees)
needed to perform non-value-added functions within the organization.
- 4.5 Cuts the costs of having overtime work by automating and optimizing
manual tasks, thereby directly reducing outbound cash flow.
- 4.6 Avoids costs
of audit fees by providing means to quickly create processes to track compliance
Return on Investment (%)
(Total Annual Savings) / Initial Investment) x 100.
Payback Period (years)
Initial Investment / Total Annual Savings.
Business Case 2 : With clear improvement in Financial ROI Enablers
These are the so-called "monetisable " benefits of an investment because they get
converted into money with a phase lag . These enablers are most often centred on
business critical activities required to meet the expectations of stakeholders
- Customer – most important , must be central to most interventions
, Employees and other Business Partner or
- Regulatory requirements of doing business.
In many such cases , ROI means sustaining the business rather than increased profit
or reduced cost There are 4 major enablers impacted by our PBO intervention :
- Customer as Enabler
- 1.1 Customer Satisfaction :
Increases customer retention rate, reputation, market share and revenue by improving
- 1.2 Modify new business rules:
Dynamically changes the business rules that drive your processes, to achieve your
performance goals, produces motivated employees, and happier customers.
Improves business agility and readiness by increasing process efficiency. Reduces
the time needed to adjust process to changes on the market.
- Process as Enabler
- 2.1 Compliance
Provides integration of compliance management capabilities into current business
processes to support regulatory compliance.
- 2.2 Process Performance
Monitors the performance of individual processes or aggregates and potentially identifies
trends. Saves time by centrally managing all business processes.
Provides managers with exception handling capabilities. Without PBO, exceptions are
- 2.4 Process Optimisation
Improves process control, process optimization and rapid change.
- People as Enabler
- 3.1 Reduces the number of tasks done manually and automatically decreases the number
of resources needed.
- 3.2 Increases productivity due to process automation.
3.3 Manages the changes to organizations in terms of structure and roles
Ensures optimum resource utilizations due to process standardization.
- IT as an Enabler
- 4.1 Promotes collaboration between IT and business users to document and implement
- 4.2 Integrates with existing applications in a meaningful way.
ROI is never calculated in a vacuum. The ROI you project for your PBO Intervention
will probably be different to the ROI you ultimately achieve, because there are
so many other factors - employee turnover, new competitors' initiatives, vendor changes-that
can impact the ROI of the project and were not built into the model