BPM And ROI: Can Process
Improvement Really Deliver a
Return on Investment?
Malcolm Ross
Director Product Management
Copyright © 2010 Appian Corporation. All rights reserved.
Agenda
Identifying the Right Process for your first BPM project
Rolling-Out a BPM Project
Centers of Excellence
Continuous Process Improvement
The BPM Maturity Model
ROI Case-Study
2
Copyright © 2010 Appian Corporation (Appian). All rights reserved. Appian proprietary and confidential.
Identifying the Right Process for BPM
Customer Service
Order to Cash
Inventory Management
Claim Processing
IT Help Desk
Purchase Requests
Ordering
Business Cards
Employee On-boarding
3
Copyright © 2010 Appian Corporation (Appian). All rights reserved. Appian proprietary and confidential.
Measuring Value
Rating Value
Measuring Value
Current Performance
Breadth of User Base
Current Performance
Frequency of Use
Breadth of User Base
Executive Sponsorship
Frequency of Use
Financial Value
Executive Sponsorship
Strategic Value
Financial Value
Strategic Value
0
2
4
6
8
Rating
4
Copyright © 2010 Appian Corporation (Appian). All rights reserved. Appian proprietary and confidential.
Measuring Complexity
Rating Complexity
Measuring Complexity
Integrations
Breadth of User Base
Integrations
Size of Process
Breadth of User Base
Complexity of Rules
Size of Process
Number of Exceptions
Complexity of Rules
Maturity
Number of Exceptions
Maturity
0
2
4
6
8
Rating
5
Copyright © 2010 Appian Corporation (Appian). All rights reserved. Appian proprietary and confidential.
Preparing – Creating a Center of Excellence for BPM
The COE helps facilitate BPM initiatives and
disciplines around the organization rather than
actual delivery on projects.
Chief Operating Officer
COE Responsibilities
Business Process Director
Prioritize Processes
Definition of Process Development Lifecycle
Consultant
(PDLC)
Definition of BPM Implementation
Change
Methodology
Management
Coordinator
Establishment of BPM Standards
Establishment of BPM Best Practices
BPM Knowledge
Maintenance of Process Library and BPM
Manager
Knowledge Base
Evaluation of Process Performance
Business Process
Architect
Review of Architecture / Sizing Parameters
6
Copyright © 2010 Appian Corporation (Appian). All rights reserved. Appian proprietary and confidential.
Process Project Manager
Roll-Out and Continuous Process Improvement
7
Copyright © 2010 Appian Corporation (Appian). All rights reserved. Appian proprietary and confidential.
Appian BPM Maturity Model
Appian BPM Performance
Appian
Service
Offerings
Drive
Value
Enterprise
Program
Project
Individual
Skilled individuals on the AE
software
Level 2
Level 1
Service Offering
Enablement
• Quick Start
• Turnkey
• Expert Staffing
• Live in 20/40/60
• Product & Skills Training
• Knowledge Transfer
Level 3
Level 4
Enhancement
Excellence
• Dedicated Services
• On-Demand Services
• Health Check
• Benefit Analysis
8
Copyright © 2009
2010 Appian Corporation (Appian). All rights reserved. Appian proprietary and confidential.
• Enterprise BPM Roadmap
- Planning & Vision
• BPM Center of Excellence
• Solution Architecture & Best
Practices
Enterprise Rent-A-Car, Southern CA
David Belt
I.S. Manager / Senior Analyst
Business Development
Copyright © 2007 Appian Corporation. All rights reserved.
Company Background
Founded in 1957, Family owned, Headquartered in St. Louis, MO
Largest rental car company in North America with offices in UK,
Ireland and Germany
Ranked highest in customer satisfaction by J.D. Power and
Associates eight out of the last nine years
Ranked 18 – Forbes “500 largest Private Companies in America”
Fiscal 2007 revenue $9.5 Billion
7,900+ rental branches with 800,000 cars in fleet
65,000+ employees
Acquired Vanguard Car Rental, August 2007 – National and Alamo
10
Copyright © 2007 Appian Corporation (Appian). All rights reserved. Appian proprietary and confidential.
Focus of Implementation
Southern California (Group 32) is the largest operating group with
~85,000 vehicles in fleet across 4 lines of business.
Focus on improving back office processes to increase efficiency.
Vehicle Maintenance and Vehicle Repair (Body Shop) payables
represents largest volume of payables activity.
11
Copyright © 2007 Appian Corporation (Appian). All rights reserved. Appian proprietary and confidential.
Business Challenges – Vehicle Maintenance Payables
Transaction Volume
Challenges
High Volume - 18,000+
invoices/month
Highly manual process
Paper intensive “In-box” system
Cross-functional
Geographically dispersed
workforce
Complex business rules
inconsistently applied
(000's)
230
225
220
215
210
205
200
195
190
185
180
FY04
FY05
FY06
FY07
Touchpoints
(mils)
4.5
4.0
Manual process hampered our
ability to support a consolidated
AP initiative.
3.5
3.0
2.5
2.0
1.5
FY04
FY05
12
Copyright © 2007 Appian Corporation (Appian). All rights reserved. Appian proprietary and confidential.
FY06
FY07
Why BPM as a Solution
Goals
Automate non-value added tasks.
Expedite workflow between functional areas.
Centralized processing / Distributed decisions.
Reduce errors through consistent application of complex business
rules.
Increase controls through process consistency.
Increase productivity through process visibility.
Expected Benefits
Consolidation of the AP function
Reduction of human touch points
13
Copyright © 2007 Appian Corporation (Appian). All rights reserved. Appian proprietary and confidential.
Vehicle Maintenance Payables Implementation
Overview
Available to ~60 employees in 2 departments.
Regional Vehicle Repair and Group Accounts Payable.
Development and deployment
Ground up re-design of the Vehicle Maintenance Payables process.
~6 months from start of development to 1st go-live.
1 Enterprise Developer and a 6 week quick start with an Appian resource.
Ongoing enhancements post-release.
Rollout schedule
8 week Pilot with 1 Region.
Rolled out remaining 12 Regions over 12 weeks.
100% of Maintenance Payables now processed through Appian.
2nd application of Appian (Body Shop Payables) took only 6 weeks from
start of development to pilot.
14
Copyright © 2007 Appian Corporation (Appian). All rights reserved. Appian proprietary and confidential.
Measurable Benefits
Process Efficiency Gains
Human Steps to Process an Invoice
Pre-Appian: 9 – 19
Post-Appian: 0 – 7
40% Auto-Approval rate
Process Visibility
Pre-Appian
No actionable measure of productivity
No visibility to invoices in process
Post-Appian
Real-time productivity reporting allows supervisors to actively manage
their staff
Able to easily identify where “missing” invoices are held up
15
Copyright © 2007 Appian Corporation (Appian). All rights reserved. Appian proprietary and confidential.
Vehicle Maintenance Payables – AP Home Page
16
Copyright © 2007 Appian Corporation (Appian). All rights reserved. Appian proprietary and confidential.
Vehicle Maintenance Payables – AP Dashboard
17
Copyright © 2007 Appian Corporation (Appian). All rights reserved. Appian proprietary and confidential.
Vehicle Maintenance Payables – AP Dashboard (cont.)
18
Copyright © 2007 Appian Corporation (Appian). All rights reserved. Appian proprietary and confidential.
VM Payables – Regional VR Task
19
Copyright © 2007 Appian Corporation (Appian). All rights reserved. Appian proprietary and confidential.
VM Payables – Regional VR Task (cont.)
20
Copyright © 2007 Appian Corporation (Appian). All rights reserved. Appian proprietary and confidential.
VM Payables – Regional VR Task (cont.)
21
Copyright © 2007 Appian Corporation (Appian). All rights reserved. Appian proprietary and confidential.
VM Payables – Productivity Reporting
22
Copyright © 2007 Appian Corporation (Appian). All rights reserved. Appian proprietary and confidential.
VM Payables – Process Visibility to Users
23
Copyright © 2007 Appian Corporation (Appian). All rights reserved. Appian proprietary and confidential.
VM Payables – Process Visibility to Users (cont.)
24
Copyright © 2007 Appian Corporation (Appian). All rights reserved. Appian proprietary and confidential.
Appian Quick Facts
COMPANY
Corporate HQ: Reston, VA (near Washington, DC)
EMEA HQ: London, England
Founded: 1999 (11 years of profitable growth)
PRODUCTS
Appian Enterprise
Rated a Leader in Enterprise BPM Suites by Forrester and Gartner
The world’s most innovative BPM suite
Appian Anywhere
Only Complete BPM Suite Available in an On-Demand SaaS Offering
BPM Applications, Templates and Collaboration
Appian for IT Services, Project Mgmt, Marketing Requests, Compliance, Procurement,
HR Recruiting, SharePoint and more
CUSTOMERS
Customers: Financial Services, Mfg, Retail, Telco, Services and Government
Deployed Seats: > 3 million
25
Copyright © 2009 Appian Corporation (Appian). All rights reserved. Appian proprietary and confidential.
