Business Systems Transformation – Need of the Hour
Posted
on
Sep 22, 2009
A recent study has shown that business process improvement, or the integration and enhancement of processes and systems, is one of the top current technology expenditure priorities. The main reason for the rapid rise in the popularity of BPM is that it provides benefits both in the short term (cost cutting) and in the long term (process optimization). Business process management (BPM) provides businesses the needed visibility into processes, dexterity to adapt swiftly, and potential for incessant process improvement and optimization.
The main role of BPM is to integrate all the operating information and the context of their execution under one umbrella. A manager can utilize this comprehensive information, validate it, and redesign operations knowing the impact across the organization, simulate changes, compare the scenarios, and decide the course of action.
Business improvement disciplines like Six Sigma contribute significantly in this process of transformation. Fundamentally, Six Sigma is directed towards improving an activity or group of activities to achieve a specific improvement. It provides measures of quality control to improve the quality and ultimately performance. Hence, the techniques of BPM and Six Sigma have a definite place in the financial services industry where high volume transactions are the norm. In fact, even small increments of process improvements can have remarkable affirmative impact in efficiency and customer service in this sector.
Six Sigma approach has its drawbacks too. The technique takes the approach of strengthening individual processes, which ultimately affects the entire system favorably. While this helps make the effort focused, it narrows down the scope of improvements in a specific vertical causing an extremely constricted improvement. This creates difficulties if isolated progressions sub-optimize the activity downstream in the process, causing issues in the course of services across the organization.
BPM has a cross-functional process approach that addresses the problems faced by the entire firm and provides the techniques for improving the performance measurement and management. While improving efficiency and putting check points on the systems is essential in change management in financial services, focus on processes and the workflows within various units that together constitute the overall process is also critical.
On-Demand Spend Management Solutions - Need of the hour
Posted
on
Aug 07, 2009
On-Demand solution refers to the delivery of software solutions or services as a flexible web based service. On-Demand spend management solutions allow firms to gain tight control over their data and transform it into knowledge, which becomes the key to achieving their business goals.
Unlike finance process, based on global standards, spend management solutions are more customized and extend horizontally across an organization. They comprise of less complex software solutions that can address particular business requirements. Market knowledge, extensive network, and support service integrates into a single On-Demand spend management solution to offer businesses a competitive advantage. It helps companies to get an accurate picture of their expenditure by analyzing spending patterns across company departments, divisions, and technology systems.
Moreover, an On-Demand spend management solution only requires a web browser for access, which saves the time required for a conventional software installation. It helps lower up front licensing fees as they are converted into subscription-based payments. Most importantly, leveraging On-Demand solutions allows companies to accept change and deliver results in the current grim economic scenario. This not only optimizes processes but also helps in managing risk better. At a time when sustainment is a key priority, effective On-Demand spend management solutions can help firms meet the need of the hour.
