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The ROI of BPM Suites in Addressing Regulatory Compliance – Webcast Summary

We have just presented a live webcast, The ROI of BPM Suites in Addressing Regulatory Compliance, featuring Clay Richardson of Forrester and Keith Swenson from Fujitsu.  Clay shared his new research on quantifying the benefits of ROI in addressing compliance mandates.  Keith discussed the advantages of Agile BPM and presented customer case studies (UBS, EPCOR, and SEC)Com where Interstage BPM was used to address the compliance mandates.  The presentations were very informative, insightful, and engaging – close to 90% of the attendees staying on until the end of Q&A session.  You can view the webcast recording on-demand.

Holistic Approach is required

The new regulatory measures are impacting a diverse set of industries and are pushing companies to adopt an integrated approach to mitigating risk.  Clay pointed out that compliance must be addressed at three levels:

  • Efficiency – streamline risk and compliance efforts
  • Prevention – mitigate costly incidents
  • Strategy – make better decisions.

Some of the traditional methods that have been applied in dealing with compliance mandates are E-discovery, ECM, and BI.  The problem is that this is fragmented approach that adopts “wait-and-see” attitude”:  waiting for compliance event to occur before taking action.  This approach minimizes the potential of detecting and heading off the compliance event before it occurs, and increases the likelihood of compliance breakdown by not having the end-to-end view of the process.   A holistic approach is required – BPM Suites.

Compliance is Key Theme in BPM Adoption

The key driver behind adoption of BPM has been support for compliance efforts.   Clay pointed out that this is a key theme in Financial Services, Public Sector and Healthcare, but is just as frequent in other industry segments as well.  The four categories of technology benefits gained from BPM are:

  • Increased business efficiency
  • Rapid development of compliance and process changes
  • Improved worker productivity
  • Increased business engagement.

ROI of BPM in Addressing Compliance

Clay illustrated the ROI of BPM Suites by presenting the results that were achieved by a sample company.  Establishing BPM program and building BPM competency using BPM technology  yielded 58% ROI over a 3 year period (Forthcoming “ROI of BPM Suites” Forrester report).  Drilling further into specific compliance benefits of BPM Suites, they include the following:

  • Increased responsiveness to compliance mandates
  • Increased efficiency of compliance audits
  • Reduced risk of non-compliance.

To illustrate the impact of BPM in addressing compliance, Clay presented a Case example of a Financial Services firm — large global financial services and retail bank.  They have to contend with about 125 new compliance mandates annually.  This necessitates 200 man-hours to be spent on updating processes and business rules.  The average rate for development resources for the firm is about $100K.  In this scenario, estimated time savings in going from months to weeks to implement the compliance requirements was 75%.  The improved responsiveness to regulatory compliance yielded $1.6M over the 3 year period.

Another Case example presented by Clay was a Government Agency that needed to reduce time to award grants in compliance with regulatory requirements.  They were successful in streamlining the grant review and award process by 20%.  More significantly, however, they reduced the time to audit grants to make sure they’re in compliance by over 60.

Recommendations

Clay’s key recommendations for addressing regulatory compliance with BPM are:

  • Take a holistic approach to compliance
  • Evaluate end-to-end process to identify where compliance risks may be present
  • Increase responsiveness to new compliance requirements by taking BPM approach to expose compliance rules and models
  • Drive greater visibility into processes in terms of compliance using process intelligence.

Fujitsu Agile BPM and Compliance

Keith followed Clay and discussed Agile BPM – the new and emerging style of BPM. Compliance and regulatory climate is increasing the demands on the business to rapidly adopt compliance and process change.  Other key factors that are driving the need for Agile BPM are: process discovery and optimization is a hurdle; better collaboration and support for knowledge work; and the need to extend and streamline processes beyond corporate boundaries.  Agile BPM is a way to address these requirements by accommodating both traditional and emerging approaches to BPM by flexibly addressing all types of processes from structured to unstructured and hybrid.

The audience poll showed that 60% are using BPM or planning to do so in 12+ months to meet their compliance goals.  This data reflects our view of the market, and Keith presented Case studies of some of the Fujitsu customers that use Interstage BPM to meet their compliance challenges:

  • UBS: automated client on-boarding, reduced risk, ensured compliance and attained 30% reduction in TCO.
  • EPCOR: ensured compliance with regulatory requirements, automated billing process, and enabled the flexibility to adjust to changing regulatory requirements.
  • SEC: increased staff efficiency, gained greater visibility into historical and real-time view of the organization, and improved timeliness and accessibility of data in SEC filings.

Compliance has played a very important role in the doption of BPM and Interstage BPM Suite.  Do you think regulatory compliance will continue to play a critical role in BPM adoption in the future?

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