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The first step is to create an enterprisewide architecture of BPM standards, including IT-centric common data definitions, connectivity standards, etc. These standards should be independent of specific vendors or product sets. In fact, they should be designed to support the swapping in of new solutions and technologies to replace those that are outmoded. This architecture should also include business concepts, such as standard definitions for business entities, processes, and goals. For example, when a business unit manager projects the cost and return on a specific activity, the estimates should encompass exactly the same processes, expenses, etc. as the activity or object with the same name in the corporate budget. Management should then identify specific activities whose automation would have a noticeable effect on corporate performance. "Every organization runs hundreds of batch processes," says Meta Group analyst Val Sribar. "The CIO or business management should look for the specific processes--perhaps four or five which, if taken out of batch and moved closer to real time, would have the greatest positive effect on the organization."
Over time, the organization can add more of these specific BPM loops. Because they are all built on top of a single business and IT architecture of standards, these individual loops can eventually be integrated. Also, when a superior new technology or solution appears, it can be plugged in and the older technology swapped out, because the system is based on standards. User action: Users should apply the principles of closed-loop BPM to specific business processes where automation, faster response times, and a close link between business planning and execution will have the greatest positive impact on the enterprise. They should focus first on processes that are highly sensitive to sudden changes in the business and market climate, such as budgeting and project funding. To succeed at BPM, organizations need to maintain a realistic understanding of the complexity of business processes and human behavior as well as the amount of effort required to change them.
Meta Group analysts John Van Decker, Val Sribar, Robert Handler, Aaron Zornes, David Folger, Hollis Bischoff, Barry Wilderman, David Cearley, and Dale Kutnick contributed to this article. This article was first published by Meta Group on July 2, 2002.
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