Saving Money is Great, Making Money is Better
Last Updated Tuesday, June 20, 2017
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In principle, every organization wants to transform and optimize their process. By doing so they can improve customer experience and gain the clarity and insight they need to make business decisions that grow profitability - all while proactively managing operational risk and compliance.
With a sound BPM strategy in place, organizations become more adept at capitalizing on emerging business opportunities and avoiding risk and regulatory issues before they become critical - all in the name of efficiency. While process is a great avenue for saving money, it can also be a great avenue for making money. The concept of saving and making money is often placed into separate buckets and mistaken for being mutually exclusive benefits.
Both creating efficiencies and saving money are actually about generating revenue; it’s not a one or the other idea. With an agile process companies gain these three key advantages:
● Increased savings efficiencies
● Decreased risk and improve compliance
● Increased revenue and profit
It’s a definite shift in mindset (and an enticing one) - this idea of not just saving, but making money. But how do companies make this change?
There are two ways to increase revenue and profit - either directly or indirectly. Directly increasing revenue is done by simply implementing a new process and improving a company's revenue stream. Indirectly increasing revenue means you determine other routes that are not necessarily solely focused on monetizing process. For example:
Think about processes to nurture customers throughout a lifecycle - this is a really good example of something companies want to do to a) be more efficient and avoid heavy lifts later on and b) create a more automated way of generating revenue.
Due to the proliferation of data and the digitization in general, it’s also imperative to think about how external factors (something not driven implicitly by a human interaction) can have an influence on improving process and generating profit - like pulling data from a third party application. The IoT industry, for example, is exploding, and with it, an influx of customer data housed in applications that can help companies better target and learn about their current and prospective buyers.
However, businesses shouldn’t abandon traditional routes of increasing revenue where human interaction is key. Think about cross-serving and up selling your current customer base. Follow your process patterns to identify opportunities where offering a customer an additional service could mean additional funds for the company.
The bottom line (and it’s nothing new) is that organizations need to become more agile. Process used to be about saving money and creating efficiencies, and while those benefits are still true, an agile process allows companies to adjust in ways that help them create money-making opportunities.
To learn more about the future of business apps, read the white paper: “Making A Better Framework For BPM”