All of the above!
What we are seeing in insurance are many antiquated processes running to (no integration) or through (some integration) legacy systems. They have goals to 1) streamline the process, 2) modernize / replace / integrate legacy systems, 3) digitalize the whole thing, and 4) standardize it across product and regions.
This reality is likely similar in many other industries. Overarching objectives include:
If you think about many processes in all sorts of industries you can break them down into the following stesp:
By streamlinig one general process - customer service - you can likely apply lessons learned and reuse solution capabilities to other processes - underwrting, claims.
Food for thought.
Looking at it from what are the greatest and compelling benefits and "compliance" is the top driver. So regulated industries in financial services such as banking insurance etc. Then the delivery of healthcare mission critical data where errors can cost lives is a very topical sector where BPM thinking with supporting Adaptive software could have big impact. Then there is the public sector generally still to "get it"......huge opportunities out there.
When you travel or live outside the US as much as I have over the past decade, you realize that the US healthcare system is in desparate need of some good BPM (or, if you just watch the news you might come to the same conclusion). I have spent extended amounts of time in several "developing" countries during the last few years, and everywhere I go the healthcare processes seemed much better, not to mention that the care was cheaper, and delivered by people that actually seem happy providing the care.
It may seem trivial, but in Colombia, the local cooperative provider even gives a phone call to all its members on their birthdays. It may sound a little silly, but I'll bet that within 12 months they are calling up their members when a user's Apple Watch reports a few spikes in that user's cardio rhythms? Or when an IOT device reports an abnormal drop in skin temperature. Unfortunately, I can't imagine too many healthcare providers in the US doing this anytime soon.
It would be view from another angle: For which industry is not relevant BPM? Yes, we feel a lot more comfortable with this question. But we’ll try to answer de original one.
As always said, it depends.It depends on territory mainly, but also in the size of each company.
About the territory, we would like to provide the Latam point of view: government should be one the top BPM adopter. Most of Latam countries have eGovernment agencies. So, the framework is set for the next years to apply BPM to every government process.
About the company size, big companies have adopted BPM in a faster pace than SMBs. So, we think SMBs adopting BPM first, will have a competitive advantage, not only in Latam, but to compete worldwide too.
I'd have to agree with earlier comments that, at least here in the US, healthcare seems woefully behind in terms of getting process in order. We've seen some fantastic projects in that sector, but they have focused largely on GRC when the real opportunity is in improving care. Everything from prior authorization in the pharmacy, to patient outcomes in the doctor's office, to reducing chaos in the operating theater represent excellent opportunities for BPM.
Too often IT is like the cobbler's children: always in need of new shoes. It needs automation.
We think nothing of automating and integrating and disrupting the other lines of business but somehow fear and resist automation ourselves. IDC reports rework through process failures in mid double-digit percentages and my own reseach with our customers puts rework levels consistently around 20% even in the seemingly most optimized of organizations.
It is like the classic excuse for not automating testing ... "I can test it faster than I can automate it." Sure and I can update the spreadsheet and send the attachment by email faster than I can automate the process. But once automated I soon make up the time and more besides.
As my first boss was fond of saying, "if you don't have time to do it right when will you have time to do it over?"
I was surprised this morning to ask the attendees of my webinar on "Straight Talk about the Changing Face of Retail" we asked the question of who is using BPM today. Of the respondents:
That is actually a really low adoption rate for BPM. I don't know if this is the vertical that needs it the MOST, but the retail vertical has a great need for BPM today.
See the Webinar: http://risnews.edgl.com/web-event/Straight-Talk-about-the-Changing-Face-of-Retail98091
In the domain of great BPM questions, this question is one of the best! At least says the sales guy : )
Specifically, the question is "which industry could take most advantage of BPM today?" And the answers above are great, as expected, with some fascinating and even unexpected insights which reflects the cosmopolitan cadre of BPM enthusiasts hanging around here.
So, I'll put on my sales hat now. And let's look for "new BPM opportunities".
Let's say the question is brought up in a boardroom of an organization in "sector 'x'". The CIO and COO together make a pitch to the board for BPM technology and business practices change. What can we learn?
1. IDEAL USE CASES -- The use cases for new BPM in many industries are terrific. It's worth noting that we should avoid the Lake Wobegon problem (i.e. Garrison Kiellor's snarky reference to a place where "all children are above average") -- i.e. that "BPM is good for you and universally applicable", or "all BPM use cases are above average". So, specifically, where are there really good places to start from?
2. GOOD USE CASES -- Good use cases are not evenly distributed, and match domain-specific work patterns. On this basis, health care, customer service, insurance, government etc. etc., some mentioned above, might be suitable for BPM. Good use cases should be distinguished from ideal use cases. We might imagine that BPM would be good for healthcare, but then it's hard to even get checklists adopted in a healthcare setting. A good use case answers the question "can BPM be used to help us get the job done here"?
3. BUSINESS CASE -- The business case for a BPM project is not identical to a good use case. BPM is infrastructure, and funding of any infrastructure in a competitive environment can be challenging. In a regulated or government service environment, business cases might be easier to make. The business case answers the questions "Does the good BPM use case make business and economic sense for us?"
4. PROGRAMME CAPABILITY -- Even with a good use case and a good business case, there's a question as to whether an organization has the management bandwidth and capability to execute a successful BPM program. The question answered here is "even if we should do a BPM program, can we actually do it?"
On the basis of these hurdles, the board can assess if their organization, in their industry, is a good candidate for a BPM initiative. Failure to meet these hurdles explains a lot of BPM programme failures.
And in terms of answering the broader original question, one can systematically assess industry sectors, likely adding size and a few other dimensions, and then highlight "BPM hotspots". Two such areas are supply chain and field service, in both of which there are more-or-less positive answers to the above requirements.
"In the 19th century, you scaled a company by adding people. So management was the key skill and managers earned the big bucks.
In the 21st century, you scale a company with better data. Datascientists and developers are the core skills." Erik Brynolfsson
So is BPM part of this future, or is it in the way? After all it started its life as a people management tool.
Every generation or so (it is getting faster) a base technology comes along which changes the way absolutely everything is done. Trains, telephones, electricity, cars, radio, TV, computer, internet, social, big data...
BPM is several generations behind.
So you hit another question. Is it a good idea to move something on a bit, even if it is still behind, or should you leapfrog the whole way in one go?
Perhaps there is another answer. Evolve the way we do BPM.
In a data-driven world, process matters more than ever. How well data is handled is the root of competitive advantage.
BPM can make that consistent. Trackable, governable.
And where humans do make decisions, it can make sure they have the right information at the right moment.
It can simplify automation and integration too.
So where is that most valuable?Well everywhere really.
There is no single industry it will benefit more, because the whole concept of "industries" and silos is breaking down.
But we need a new BPM for the 21st century.
Business environments are becoming more complex and competitive as a result of technological innovations, customer sophistication, and global economic pressures. Companies need to overhaul traditional business models to stay competitive in today’s challenging markets. Based on these factors industries like Healthcare, Telecom and Media, Banking and Financial, Publishing and Insurance are in need of BPM.