What is “BPaaS” BPM Adoption Model for BPM Processes deployment?

As commented in one of ours recent posts, by "BPM Adoption" we understand the way that some organizations have undertaken to relieve, optimize, automate and outsource part of their business processes, with the ultimate aim of achieving and maintaining the Operational Excellence that ensure them a sustainable competitive advantage.

To simplify our analysis, we have grouped the various strategies of BPM Adoption usually followed by organizations in four archetypal models, which we have called "Process Team", "Cloud", "Consulting" and "BPaaS".

Each model is characterized by the decision organizations have made in terms of the Mode of Development of the automation solutions, differentiating whether they do or plan to do by internal or external means; and the Mode of Operation of such automation solutions, differentiating if they do or plan to do either on internal systems (on-premises) or external (on Cloud or on an external Data Centre).

Under the “BPaaS” model, the last of the four BPM Adoption Models analyzed in this series of posts, both the development of automation solutions and their exploitation, are external, thus combining the features of the "Consulting" model and the "Cloud" models as it is shown in the next figure:

Under this model complete and integrated services are provide, but with two substantial differences with other models:

• The automation solution, even is available as a more or less standard and packaged solution, although it requires some customization for each client (at least for the initial configuration and integration with corporate applications Client); or, the solution, that was initially developed for a first client, becomes standard, and then can be used in the future for third party customers with similar needs, again with the required customization for each new client.
• Other services called BPO (Business Process Operation and Business Process Outsourcing) can be incorporated into the value proposition of the service provider to provide them in the form of personal services that go beyond pure computer service applications.

In this case then, the main and only external actor, is the so called BPaaS Services Operator Services, who integrates various products and services, and builds a packaged offering, including the development, customization and integration of applications and, in some cases, physical operation of certain tasks in the business process in behalf of the Customer; thus acting as prime contractor in front of the customer, for the various products and services including personal ones, required to automate and operate the corresponding business process.

Under this model, the BPMS Platform used loses most of its relevance (except giving prestige to the Operator and then security and confidence to the Client), since what matters is that the solution is the best suited to the client's needs with effortlessly development and customization with maximum flexibility, and that the operator can meet the SLA (Service Level Agreement) committed to the Customer.

Under this scheme, many other tools appear on stage (OCR, ICR, ECM, DMS, BRMS, DB, ESB, SSO, ...) to build the technological ecosystem required for an automated, safe and efficient operation of the deployed business processes.

The Cloud used in this model can be Public, in which case, the security of Client data and documents are the responsibility of the Operator and this delegates it to the data center providing IaaS and PaaS services.

However, many customers prefer their data and documents remain on their own servers, whether they installed internal (on-premises) or external (Private Cloud), thus the need to operate models Hybrid Cloud appears as a mixture of the Public Cloud certain characteristics of on-premises.

In our opinion, the standardization that allows the reuse of process automation solutions for all business customers requiring this type of solution, is the key for this model being sustainable and so successful, achieving significantly reduction of  both CAPEX (CAPital EXpenses) and OPEX (OPerating EXpenses) regarding to others BPM Adoption Models.

 

What is “Cloud” BPM Adoption Model for BPM Processes deployment?

As commented in one of ours recent posts, by "BPM Adoption" we understand the way that some organizations have undertaken to relieve, optimize, automate and outsource part of their business processes, with the ultimate aim of achieving and maintaining the Operational Excellence that ensure them a sustainable competitive advantage.

To simplify our analysis, we have grouped the various strategies of BPM Adoption usually followed by organizations in four archetypal models, which we have called "Process Team", "Cloud", "Consulting" and "BPaaS".

Each model is characterized by the decision organizations have made in terms of the Mode of Development of the automation solutions, differentiating whether they do or plan to do by internal or external means; and the Mode of Operation of such automation solutions, differentiating if they do or plan to do either on internal systems (on-premises) or external (on Cloud or on an external Data Centre).

The “Cloud” model we analyze in this post is similar to the “Process Team” BPM Adoption Model already analyzed in a previous publication, but characterized by customers transferring the responsibility of supporting the service of the automation solutions to an external actor, the IaaS and PaaS provider. This model is described in the next figure:

Under this “Cloud” BPM Adoption Model, we categorize organizations that choose Development Mode internally (as it happens in the model "Process Team"), but progressing to an external Operating Mode of the developed applications, either:

•  In a Public Cloud (served by a data center) or using a cloud BPMS Platform, served by the BPMS Vendor, applying this case in small-medium enterprise or 
• In a Private or Hybrid Cloud or combination of Cloud and on-premises scheme, which occurs more in large companies and corporations.

 

For the basic applications (PaaS) the SaaS (Software as a Service) modality is the most popular option, if the corresponding software vendor provides them this licensing mode.

It appears here a new external actor, the Cloud Services Provider, which operates data centers in which hosts and operates servers; provide SaaS software services (usually no more than operating systems and databases); provides infrastructure of routers, firewalls, load balancers, servers, storage, backup equipment and other necessary equipment; and, moreover, manages the virtualization, high availability, monitoring and 24/7 support, communications and security, both physical and computer, all conveniently led to meet the most demanding SLAs (Service Level Agreements).

This type of services is growing exponentially and already operating in a 100 % "on-demand" and in the case of Public Cloud it has become de facto a "commodity"; first, by easiness of procurement, dynamic and flexible "on-line" management and almost immediate deployability of resources needed to support the client applications and, secondly, by the very high range, very competitive, of which are currently available on the market, leading to a significant cost reduction.

Therefore, under this model they are significantly reduced the system costs, both CAPEX (CAPital EXpenses) and OPEX (OPerating EXpenses), compared with the previous two BPM Adoption Models analyzed in previous posts.

Describing the Process Team BPM Adoption Model for BPM Processes deployment

As commented in one of ours recent posts by "BPM Adoption" we understand the way that some organizations have undertaken to relieve, optimize, automate and outsource part of their business processes with the ultimate aim of achieving and maintaining the Operational Excellence that ensure them a sustainable competitive advantage.

To simplify our analysis, we have grouped the various strategies of BPM Adoption usually followed by organizations in four archetypal models, which we have called "Process Team", "Cloud", "Consulting" and "BPaaS".

Each model is characterized by the decision organizations have made in terms of the Mode of Development of the automation solutions, differentiating whether they do or plan to do by internal or external means; and the Mode of Exploitation of such automation solutions, differentiating if they do or plan to do either on internal systems (on-premises) or external (on Cloud or on an external Data Centre).

The “Process Team” model we analyze in this post could be considered the most "canonical" because the survey, optimization, analysis, development and integration of automation solutions (Development Mode), and its subsequent implementation and operation (Exploitation Mode) is performed with internal resources, both in terms of technical personnel and systems that must support new applications as is described in the next figure:

Under this model, organizations tend to create a team, section or internal department specialized in the functions listed above, regarding the deployment of BPM Processes in the organization.

This team is usually named as CoE "Centre of Excellence" or "Process Team" and traditionally, in a first phase, devotes much effort (from one to three years, depending on the size of the organization) to discover, map and describe the business processes that the organizations are following, often using a BPA (Business Process Analysis) type tool.

This process team uses to depend functionally on the Organization, Quality or Organization and Process Departments, this latter one often is new created department. Rarely the dependency is under the Information Technology Department or equivalent.

This model is often applied to large organizations and corporations whose resources allow them to cope with and to amortize the large cost that represents maintaining said operating unit.

Once the organization has completed their business process mapping then decides the development and implementation of a first automated business process. The main external actor in this project uses to be the BPMS Vendor, and its vector is the BPMS Platform that the organization has chosen for the configuration, development, integration, operation and maintenance of their BPM Processes.

The choice of the BPMS Vendor and its technology is strategic to the customer as it will be captive of them for many years, even decades, and for being so huge the eventual migration costs and time required for a technology change.

That is why organizations that adopt this model tend to opt, among the two or three pure first class BPMS Vendors or, alternatively, generalist market leaders Software Vendors who incorporate BPMS Platforms (usually acquired from third parties) in their value proposition; always taking into account in making their decisions the analysis and recommendations that provide technology analyst like Gartner, Forrester, ...

Automation solutions are developed in a project under the direction of the customer itself, even entirely with internal personal or, most of times, with a mix of internal and external personnel; following in this way the traditional procurement model of IT professionals that is being known as "body shopping" provided by companies called "Consultancy Companies".

In this model, the secondary external actor is the external consultancy company providing the external consultants and technicians, adding value in terms of availability, opportunity and flexibility like, for instance, the easiness of hiring and firing technical staff outside the rigid internal people recruitment patterns that these big organizations and corporations have established.

Traditionally, organizations adopting this model, applications are exploited in Customer's servers, option called "in-house" or "on-premises", this creating an increasing need for investment in equipment and high internal workload, often not quantified or even hidden. From the basic software required side (operating systems, database, BPMS Platform and other complementary applications), it is customary to follow the license purchase and annual maintenance modality.

For all the above reasons, the “Process Team” model is characterized by a high CAPEX (CAPital EXpenses) and OPEX (OPerating EXpenses) and only applicable and sustainable by big organizations and corporations when we talk about massive BPM deployment projects.