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Highlights of AIIM’s
BPM Industry Study
       13 July 2007
Survey sponsored by...
For more information, see our blog:
     www.aiim.typepad.com

        or our website:
   www.aiim.org/industrywatch
Survey Respondents Represent a Wide Range of
Company Sizes and Vertical Industries, With a Focus
               on the U.S. Market
Figure 2:
Figure 1:
                                               Major vertical industries
How many employees
                                               in survey (%)
are in your organization?

                                             Manufacturing             6
                                               Federal govt            6
                              24%
                                        Utilities, oil and gas             7
How many employees are there in your
  50%                                             Insurance                7
organization?



                                       Banking and finance                     12
                               26%
                                                Consultants                     13
                                       State and local govt                         14

                 1-100
                 101-1,000
                 >1,000
8%
                         19%
                                         9%
Figure 3:
What is your role in
the organization?
                                            23%
                       23%


                                 18%



                             Line of Business
                             Executive
                             RM
                             DM
                             IT
                             Other
Survey Respondents Represent Rich and Varied
             Experience Base
Figure 4:
What is your org’s                    7%
experience with RM
                                           16%
                               31%
and DM?


    None
    Next 6 months
    Departmental only                      29%
                                18%
    Integrating across depts
    Enterprise strategy
Figure 4: What is your understanding of
         the following terms?
         % that “fully understand” the term



 Document process outsourcing             38

Business process re-engineering                62

Enterprise application integration        41

           Bus Process analytics          39

                        Workflow                         88

                            ECM                     77

                            BPM                61
Figure 5:                          11%
                                         20%
What is your org’s
                             11%
experience with BPM?




  None                                     25%
  Next 6 months
                              32%
  Departmental only
  Integrating across depts
  Enterprise strategy
A Solution Without a Clear Owner
Figure 6: Do you have
a specific group in your
org responsible for
                                32%
BPM?

       YES
       NO
                          68%
Figure 7: To whom does          16%
                                            21%
the BPM group report?
                           2%
                          5%
    IT
                          8%
    CIO
                                              19%
    President
    COO
                           14%
    CFO
    Compliance or legal               15%
    Quality
    Other
Success is Not Guaranteed
6%

                                     16%
Figure 8: What is the
                                                          36%
success of your
organization’s BPM
initiative?

                                    25%

                                                    16%
  Little to no success
  Initially difficult; now some success
  Dept success; no enterprise success yet
  Leveraged early success into repeatable improvements
  Very successful at enterprise level
Which Comes First? Process or Content?
Figure 9: In terms of
                                                 7%
technology, what
relationship do you see                                     30%
between ECM and
BPM? (From 2007 State
                                   38%
of ECM Industry Survey)



                                                      26%


   BPM a subset of ECM
   ECM a subset of BPM
   Two separate initiatives; some intersection
   Not related
Back Office and Customer Service Head the List
   of Targeted Business Applications for BPM
                   Initiatives
Figure 11: In which business
           Figure 10: In which business
                                                    applications have you
           applications MIGHT your
                                                    ALREADY implemented a BPM
           organization implement a
                                                    solution?
           BPM solution?
  Vendor communications               40           Vendor communications         17
Customer communications              35          Customer communications        14
                       R&D    15                                        R&D    8
        Risk management            27                    Risk management       11
            General admin                 47                 General admin          22
                        HR                 50                            HR          25
      Sales and marketing          28                  Sales and marketing      14
                                                                 IT services         25
                IT services                51
                                                   Supply chain or logistics   12
  Supply chain or logistics     22
                                                       Manuf and fulfillment   11
      Manuf and fulfillment   14
                                                 Compliance documentation        17
Compliance documentation                    51
                                                  Compliance management           18
 Compliance management                    44
                                                     Order entry and billing       20
    Order entry and billing             37
                                                     Back office operations            31
    Back office operations                  52
                                                               Cust service           27
              Cust service                  53
Lessons Learned: Plan and Get Educated
Figure 12: What is THE MOST IMPORTANT obstacle
         or problem to overcome in your organization with
         regards to BPM?


     Lack of training external suppliers   3
           Lack of training internal staff          13
  Failed to define benefits beyond unit     4
    Underest content migration issues       4
          Poorly defined business case        6
Failed to address taxon and metadata        4
 Failed to prioritize high-value content 1
     Uneven usage; poor enforcement          5
   Low user acceptance; poor design         4
     Underest process and org issues                        20
                         Internal politics            14
              Excessive “scope creep”               12
                         Budget overrun         8
Figure 13: What is the level of need
in your organization for vendor
independent training on BPM?



              4% 11%


     33%                 19%




                 32%


               None
               Some
               Moderate
               Significant
               Urgent
BPM Requires Justification, But No Single Best
             Approach Exists
Figure 14: How important is it in         8%
                                               4%
your organization to justify BPM
investments?
                                                    12%
                                    39%



    Don’t know
    Not important at all
    Somewhat unimportant                   36%
    Somewhat important
    Very important
Figure 15: Which approach to justification is used in your
    organization with regards to BPM investments? (Can
    check more than 1; only those reporting at least one)


       Payback period                   32

  Internal rate of return       19

                    ROI                                         73

     Net present value        16

Total cost of ownership                       41
Figure 16: What is
                                   15%
the expected                 21%
payback time for
your BPM initiative?


                       14%
     < one year
     1-3 years
     4-5 years
                                    50%
     Not calculated
BPM Has a Wide Reach
Figure 17: How Likely
Would Your Organization
be to Use a BPM Solution                  4%
that Manages Both                   23%
                                                21%
Outbound and Inbound
Segments of a Business
Process?



                                   25%
   Don’t understand the question               26%
   Not likely
   Somewhat likely
   Likely
   Very likely
BPM Not a Turnkey Implementation – Held Close
                  to Home
Figure 18: Which Processes are Candidates for a BPM
Solution that Would Include Both Outbound and Inbound
Capabilities?

  Vendor communications                      34
Customer communications                     32
                       R&D    8
        Risk management           15
            General admin                        36
                        HR                       36
      Sales and marketing              26
                IT services                 32
  Supply chain or logistics   13
      Manuf and fulfillment   9
Compliance documentation                         36
 Compliance management                 24
    Order entry and billing                 30
    Back office operations                        40
              Cust service                         42
5%
                                           5%
Figure 19: Which Best
                                      5%
Describes Your Organization's
Approach to Implementation of
BPM Solutions?                                       47%


  Integrate BPM with Other Systems
                                     38%
  Customized Packaged Solution
  Hosted/SaaS
  Outsourced/Not SaaS
  Other
Figure 20: How Likely                         6%
                                        10%
Would Your Organization
                                  12%
Ever Consider a
quot;Software as a Servicequot;
to Meet its BPM Needs?
                                                   47%
                                  25%
   Don’t know; don’t understand
   Not likely
   Somewhat likely
   Likely
   Very likely
Survey sponsored by...




       For more information, see our blog:
            www.aiim.typepad.com

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Bpmsurvey

  • 1. Highlights of AIIM’s BPM Industry Study 13 July 2007
  • 3. For more information, see our blog: www.aiim.typepad.com or our website: www.aiim.org/industrywatch
  • 4. Survey Respondents Represent a Wide Range of Company Sizes and Vertical Industries, With a Focus on the U.S. Market
  • 5. Figure 2: Figure 1: Major vertical industries How many employees in survey (%) are in your organization? Manufacturing 6 Federal govt 6 24% Utilities, oil and gas 7 How many employees are there in your 50% Insurance 7 organization? Banking and finance 12 26% Consultants 13 State and local govt 14 1-100 101-1,000 >1,000
  • 6. 8% 19% 9% Figure 3: What is your role in the organization? 23% 23% 18% Line of Business Executive RM DM IT Other
  • 7. Survey Respondents Represent Rich and Varied Experience Base
  • 8. Figure 4: What is your org’s 7% experience with RM 16% 31% and DM? None Next 6 months Departmental only 29% 18% Integrating across depts Enterprise strategy
  • 9. Figure 4: What is your understanding of the following terms? % that “fully understand” the term Document process outsourcing 38 Business process re-engineering 62 Enterprise application integration 41 Bus Process analytics 39 Workflow 88 ECM 77 BPM 61
  • 10. Figure 5: 11% 20% What is your org’s 11% experience with BPM? None 25% Next 6 months 32% Departmental only Integrating across depts Enterprise strategy
  • 11. A Solution Without a Clear Owner
  • 12. Figure 6: Do you have a specific group in your org responsible for 32% BPM? YES NO 68%
  • 13. Figure 7: To whom does 16% 21% the BPM group report? 2% 5% IT 8% CIO 19% President COO 14% CFO Compliance or legal 15% Quality Other
  • 14. Success is Not Guaranteed
  • 15. 6% 16% Figure 8: What is the 36% success of your organization’s BPM initiative? 25% 16% Little to no success Initially difficult; now some success Dept success; no enterprise success yet Leveraged early success into repeatable improvements Very successful at enterprise level
  • 16. Which Comes First? Process or Content?
  • 17. Figure 9: In terms of 7% technology, what relationship do you see 30% between ECM and BPM? (From 2007 State 38% of ECM Industry Survey) 26% BPM a subset of ECM ECM a subset of BPM Two separate initiatives; some intersection Not related
  • 18. Back Office and Customer Service Head the List of Targeted Business Applications for BPM Initiatives
  • 19. Figure 11: In which business Figure 10: In which business applications have you applications MIGHT your ALREADY implemented a BPM organization implement a solution? BPM solution? Vendor communications 40 Vendor communications 17 Customer communications 35 Customer communications 14 R&D 15 R&D 8 Risk management 27 Risk management 11 General admin 47 General admin 22 HR 50 HR 25 Sales and marketing 28 Sales and marketing 14 IT services 25 IT services 51 Supply chain or logistics 12 Supply chain or logistics 22 Manuf and fulfillment 11 Manuf and fulfillment 14 Compliance documentation 17 Compliance documentation 51 Compliance management 18 Compliance management 44 Order entry and billing 20 Order entry and billing 37 Back office operations 31 Back office operations 52 Cust service 27 Cust service 53
  • 20. Lessons Learned: Plan and Get Educated
  • 21. Figure 12: What is THE MOST IMPORTANT obstacle or problem to overcome in your organization with regards to BPM? Lack of training external suppliers 3 Lack of training internal staff 13 Failed to define benefits beyond unit 4 Underest content migration issues 4 Poorly defined business case 6 Failed to address taxon and metadata 4 Failed to prioritize high-value content 1 Uneven usage; poor enforcement 5 Low user acceptance; poor design 4 Underest process and org issues 20 Internal politics 14 Excessive “scope creep” 12 Budget overrun 8
  • 22. Figure 13: What is the level of need in your organization for vendor independent training on BPM? 4% 11% 33% 19% 32% None Some Moderate Significant Urgent
  • 23. BPM Requires Justification, But No Single Best Approach Exists
  • 24. Figure 14: How important is it in 8% 4% your organization to justify BPM investments? 12% 39% Don’t know Not important at all Somewhat unimportant 36% Somewhat important Very important
  • 25. Figure 15: Which approach to justification is used in your organization with regards to BPM investments? (Can check more than 1; only those reporting at least one) Payback period 32 Internal rate of return 19 ROI 73 Net present value 16 Total cost of ownership 41
  • 26. Figure 16: What is 15% the expected 21% payback time for your BPM initiative? 14% < one year 1-3 years 4-5 years 50% Not calculated
  • 27. BPM Has a Wide Reach
  • 28. Figure 17: How Likely Would Your Organization be to Use a BPM Solution 4% that Manages Both 23% 21% Outbound and Inbound Segments of a Business Process? 25% Don’t understand the question 26% Not likely Somewhat likely Likely Very likely
  • 29. BPM Not a Turnkey Implementation – Held Close to Home
  • 30. Figure 18: Which Processes are Candidates for a BPM Solution that Would Include Both Outbound and Inbound Capabilities? Vendor communications 34 Customer communications 32 R&D 8 Risk management 15 General admin 36 HR 36 Sales and marketing 26 IT services 32 Supply chain or logistics 13 Manuf and fulfillment 9 Compliance documentation 36 Compliance management 24 Order entry and billing 30 Back office operations 40 Cust service 42
  • 31. 5% 5% Figure 19: Which Best 5% Describes Your Organization's Approach to Implementation of BPM Solutions? 47% Integrate BPM with Other Systems 38% Customized Packaged Solution Hosted/SaaS Outsourced/Not SaaS Other
  • 32. Figure 20: How Likely 6% 10% Would Your Organization 12% Ever Consider a quot;Software as a Servicequot; to Meet its BPM Needs? 47% 25% Don’t know; don’t understand Not likely Somewhat likely Likely Very likely
  • 33. Survey sponsored by... For more information, see our blog: www.aiim.typepad.com