by Companies only invest in process improvements when they realize that it is either legally mandatory or financially attractive. Especially from the executives’ point of view, investments in process improvements should only occur if there is a real motivation that proves that the investment will have actual financial returns. And that makes perfect sense, because all enterprises aim for cost reduction and increased profits, right? Thus, understanding ROI (Return on Investment) means having a holistic view of the relationship between the investment made and the gains and benefits generated by it over time.
BPM and ROI calculation
BPM (Business Process Management) is also known as Workflow in its broadest meaning, encompassing Process Management as a whole. It allows the execution and monitoring of a set of tasks, actions, rules, and sequentially functional patterns aimed at achieving certain goals.
During the development of a BPM, some questions must be raised to understand its value and importance to the company, such as:
- How valuable providing excellent customer service is?
- How important is it to execute and communicate tasks with clear rules and agility, minimizing errors?
- How to identify strengths, weaknesses, and bottlenecks of the executed activities?
When gathering this information, both tangible and intangible variables should be considered for ROI calculation:
- Standardization and compliance of the process and its rules (quality gains);
- Accuracy with a reduction in errors and rework;
- Increase in process speed;
- Efficiency and reliability of processes;
- Reduction in time and the number of people involved;
- Increase in productivity.
Note that there is no single recipe or mathematical formula that encompasses all the mapped variables associated with BPM, as its benefits are multidimensional. In many cases, companies can recognize the value of a process executed with excellence, but some are not interested in investing because they are unaware of the ROI.
How to calculate a BPM solution’s ROI?
To help you solve this challenge, Neomind has developed a calculator that allows companies to analyze the feasibility of investing in a BPM solution. The ROI Calculator takes into account the determining ROI variables (which we mentioned in this article). To access it for free, just click on the banner below. Also, don’t miss our webinar on How to calculate ROI in a BPM adoption and make the most of the tool:
