Competitive Advantage in an Era of Change:

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Change: a constant in today’s business world As industries around the world size up their opportunities and challenges, they are confronting a rapidly and continuously changing business environment. Technology has blurred segment lines, allowing new competitors to leapfrog entry barriers and provide consumers with disruptive new offers. Rapid technological change also has compounded the complexity that global organizations must manage, from the need to integrate social media into customer service to the increasing use of wireless devices across the business. And because the most recent downturn did not affect all regions of the globe equally, many wellestablished companies now face stronger, more aggressive, and better-equipped international competitors. Add to these factors an increasing regulatory burden for many global companies and a renewed focus on energy and the environment, it becomes clear that the extent of change with which today’s enterprises must grapple is unprecedented—and likely to remain so. To respond effectively to that change, businesses’ operations must be transparent, agile and in the same time compliant with legal and other regulations, deliver highest quality and be efficient, and be part of various external networks with their market partners while integrating employees within the organization. Companies have to meet all those goals which seem to contradict each other. However, BPM can help. 3 A powerful ally for companies facing dynamic conditions For roughly two decades, business process management (BPM) has been a trusted method for aligning key operational processes with corporate strategy and bringing them up to speed as part of major transformational efforts. More recently, however, a growing group of leading organizations have come to appreciate the power of BPM to help them gain critical competitive differentiation in a changing world. How does BPM do all of this? Its power lies in its ability to help organizations tighten the integration among business strategy, IT and people-based execution— in other words, translate business strategies into technology deployment and the actual work that people do on a daily basis. BPM can help organizations manage the entire lifecycle of their most critical processes, from design through implementation, execution, and monitoring and control. BPM translates the hand-offs and inter-relationships among the business, its people and its technology resources into manageable, reconfigurable enterprise process assets that enable the systematic use and reuse of all process-related information, and that can be altered, upgraded and streamlined as a company’s goals and the environment evolve (Figure 1). In Accenture’s experience, such a powerful BPM capability is implemented using a process approach. It is implemented through the “process of process management.” The BPM process is at the center of a BPM capability blueprint, outlining the infrastructure required as well as the organizational components. Core infrastructure components are: Figure 1: BPM’s power to transfer strategy into technology-and-people- based execution
Figure 2: BPM Capability Blueprint • Content/Data - for example, process models • Applications and infrastructure - for example, process repository tools or process execution engines • Policies and standards - for example, modeling guidelines The organizational components of a process of process management are: • Roles and responsibilities - for example, the definition of a process architect or a process owner. • Organization – for example, how a BPM center of excellence is defined and positioned in the organization. • Competencies or Offerings (what a BPM organization delivers to the company) – for example, management of a process repository or process improvement projects. • Culture – for example, aspects of the end-to-end process thinking. All those capability components are supported through operating principles, like the link to strategy, and help in delivering key outcomes like transparency, agility, compliance, quality, efficiency, external networks and internal integration. The BPM capability blueprint is shown in Figure 2. At the heart of this blueprint is the BPM process, the process of process management that brings all those components together resulting in a functioning business process: It’s, for example, not enough to set up a center of excellence when the process is not clear how it delivers value to the organization; it doesn’t help to train people in process improvement methods if the process is not clear how they deliver improvement projects to the company; it doesn’t provide benefits to create a process repository if the process about how to use it is not defined, etc. The process of process management enables the benefits from all the components described in the BPM capability blueprint. Those BPM competencies are, in most cases, not developed just out of the blue. Rather, their development is triggered by specific business situations in which BPM delivers immediate value. 4
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