Organizations all have various budget limitations that impact what they can or cannot spend money on. However, operational problems can cost companies more than the solutions, making strategic investments vital to maintaining fiscal stability. According to a recent EbizQ report, implementing business process management solutions can help companies eliminate operational problems that create excess costs, delivering a return on investment.
The BPM cost equation
According to the news source, most companies do not begin to seek a BPM solution until they have a specific problem. As a result, developing the right budget for the investments should be based on how much the operational issue is costing the company. In some cases, the ongoing expenses of a major process-level problem can be substantial, leading to a major investment, in others, a small-scale solution may be the answer.
To illustrate the cost equation of BPM investment, the report illustrated an example with an organization that is losing approximately $10,000 monthly because of process inefficiency. Under this circumstance, that company could put $120,000 into a BPM system and have the solution pay for itself in a year, creating an ROI of $10,000 per month after that year is over.
Even companies with extremely limited budgets may need to consider this kind of investment when considering BPM. While many businesses think of BPM spending as an optional solution, the news source explained that organizations should look at every month functioning without a solution as a month in which they are losing money because of process inefficiency. As a result, finding funding for a BPM program is an essential strategy because it helps organizations avoid fiscal inefficiency while also creating an ROI.
Considering the technology argument for BPM
Cost is a key reason to turn to BPM, as it helps businesses avoid losing money through operational problems. This is especially true when organizations depend heavily on technology. Cloud computing, mobile devices and social software all present major opportunities for companies. Benefiting from those solutions, however, hinges on being able to integrate them effectively. BPM software provides the automation necessary to accomplish this, turning IT investments into process-related benefits that help generate revenue. As a result, BPM is not only a problem solver, it is also a strategic enabler that allows companies to use innovative technologies in better ways.
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