Today, pricing is often seen as the mechanism to pay service providers for their efforts as long as service level agreements with several KPIs are reached. However, pricing can be a much more powerful tool to ensure compliance, drive efficiency, and deliver desired business results.
The BPM( business process management) sector is currently experiencing a boom. It had an annual CAGR of 8% and clocked a total revenue of $28 billion in FY 2016. The industry also increased its total number of employees by 49,000—a 4.7% growth in the total workforce. Let us have a look at how pricing plays the role of a strategic tool in the business process management (BPM) sector by looking at the types of benefits and the kind of alterations it makes to an organization’s way of working.
That’s what gives us better insights as to why more and more companies are using BPM services.
Improved Efficiency
Who would not like to increase efficiency in times of cut-throat competition! While globalization may be the driver for some organizations, for others the driver is the fact that there are weaknesses in the economies of local markets. As barriers to entry keep diminishing, it is very important to ensure businesses maintain growth and market share. BPM as a result comes in very handy.
The introduction of BPM means integration of organizational processes from start to finish. Hence, every time there is a responsibility to be handed out to one of the individuals, process owners get immediate alerts. This ensures task reallocation and delay monitoring with more efficiency while helping eliminate bottlenecks and increase the lead time.
Many processes are often not as useful as they seem. This may be due to various factors like inter-departmental miscommunication, ill-equipped/managed processes, etc. BPM eliminates this sort of problem and sees that there are no repetitive functions. This is one of the main reasons that business leaders around the world use BPM processes—to not just capitalize on returns, but also ensure that goals of the organization are aligned with these processes.
Improved Agility
In today’s competitive world, it is very important to have flexible processes since change seems to be the only constant. Change may be required within or outside the organization and one must always be prepared.
An effective BPM allows greater agility by ensuring that interventions can be made in processes for adjustment and re-execution. This gears one up for higher levels of adaptability towards wobbly situations. Being more open to process modifications will invariably mean a higher level of profitability.
Reduced Cost and Higher Revenues
This is the main reason why most companies adapt to BPM methods. Introducing the most apt BPM processes can guarantee trimmed costs across the processes of any organization. As mentioned earlier, BPM generally eradicates processes which do not generate value or are duplicated at times. This automatically ensures improvement in overall quality of work produced.
A complete BPM is more or less a guarantee that organizations comply and remain up to date with the latest laws. Apart from this, staff can also be taught to keep company assets like information and other resources safe from theft and other acts of misappropriation.