Firms hampered by soggy business processes

Need for agility and cost savings spurs change

Slipshod business processes are costing organisations dearly in time and money, reveals a Software AG survey.

Three quarters of the 100 IT directors surveyed by Software AG said that dealing with poor quality business processes had left them bogged down with administration. Although the recession had already forced many to make emergency re-structuring changes to their processes in a bid to cut costs and improve agility, 65% of respondents said they still needed to improve a quarter to half their business processes.

"82% of respondents reported they'd changed more than 50 business processes in the last year, partly as an attempt to cope with having slimmed down organisations as a result of the recession and some from the desire to get themselves in shape for when the recovery actually comes," says Tim Holyoake, lead technologist at Software AG.

Holyoake said this high number of changes could also be because companies had made changes rapidly without examining the effect on other parts of the business. To reap the greatest rewards from restructuring business processes, firms needed to step back and work out their key processes and the impact of making those changes. The desire to improve existing products and be competitive was cited by 69% of respondents as a major driver towards taking a coordinated business process management (BPM) approach to the issue.