BPM or ERP?

Preamble:

In kamentah to the last post asked the question: Why BPM, and not ERP? I tried to answer below.

A few words about the process approach and the differences from the functional control scheme.

Why even move from the administrative-functional scheme to the process?
1. Focus on results.
2. One goal, one result, one boss - responsible.
3. Unloading senior executives. The management is engaged in development strategy, not manual control.
4. Improving operational efficiency.
5. Regulations of business processes - new staff gets access to the knowledge base, all actions and reactions are described.
There are articles explaining in more detail what for and why, with pictures, so I will not dwell in detail (or is it worth it?)

Why BPM, and not, say, ERP?

I will dot the e, and you correct me.
The ERP system automates business processes, but is essentially “passive” - it can answer any question, but only if you know how to ask. On the other hand, the BPM system is an “active” system, which distributes tasks to performers, transfers them to the following performers in the chain, and controls deadlines. Each performer knows what priority, in what time it is necessary to fulfill. BPM manages the business process.
Any modern ERP system contains within itself a certain BPM engine - the workflow router. But it must be borne in mind that constantly “filing” ERP under its changing business processes is not so easy, but BPM is just designed for this. Summarizing: ERP - building, BPM - elevator and escalator system. I liked the comparison from the telecom: ERP is the operator's backbon, and BPM is the last mile to the client.

BPM effect

The main effect of the introduction of process management people see in the fact that business processes are becoming manageable. And once the processes can be managed, it means there is room for optimization. Reduced cost and lead time. And, say, when launching a new product on the market, this is very important. Another note is the effect associated with improving the quality of interaction between departments in end-to-end business processes.
The economic effect can be seen on the example of such a case: Reducing the processing time of the application, reduces the number of lost customers (who, without waiting for an answer, go to competitors), which in turn leads to an increase in sales, which at large volumes can be millions of dollars.
I took from the presentation of IBM real implementation results.

• - reduction of internal costs - by 40%
• - halving the process execution time
• - increase infrastructure capacity by 100%
• - 3 years ROI - 32% and 5 years ROI - 170%
• - Automated 400 processes. From idea to commercial operation in less than a week!
• - reduced handwork by 80%, releases every 90 days
• - decrease in complexity - by 30%, increase in efficiency by 60%
• - To ensure a 300% increase in 18 months, an increase in the ratio
• customer satisfaction from 85% to 92%, release less than 90 days!
• - ROI for 3 years - 150%

Where about ROI - I would not blindly trust, because a lot depends on how to count. Otherwise, this is a picture from one of the leaders of BPM solutions.
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Successful implementations.

Banco espirito santo is a Spanish innovative bank.
Result:
in industrial operation more than 100 processes
1 day from the design process to its implementation,
implemented critical processes of the bank: mortgage, loans for physical and legal entities,
credit cards, reclamations (service desk) of customers, opening
accounts.

Bank "Tinkoff Credit Systems"
We have reduced the average processing time of an application from hours and days to minutes. At the same time, the new system allows you to easily adjust the variations of the credit procedure to the specific conditions of the channel of attraction and other factors. So, if it used to take the slightest change in the business process, it took several weeks and required the efforts of IT specialists, now the time limits for modifying the business process are measured in days (from idea to launch) and are mainly carried out by business users

MTS Bank
Project results
Created a methodology for describing business processes
Trained MTS Bank employees
Developed reporting scripts for ARIS models

Conclusion

First question: Is it worth spending time and money on implementing BPM?
If you are a bank or a telecom, introduce it immediately, the speed of launching new products is the most important competitive advantage. The rest is to consider the effect of implementation in each case.

Second question: Implement ERP + BPM or one thing and if both are, then in what sequence?
For maximum effect, embed both and ROI count together. Moreover, according to some experts, it makes sense to introduce ERP first and then BPM “will fall on the loosened fertile soil.” But nevertheless, both products can exist separately.

PS: I deliberately bypassed the cost of implementation, because this topic requires a separate article and study, indicating specific solutions, pros and cons. If you have information or thoughts on this subject, welcome to the comments.