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Tablet Innovation: A Few Degrees of Separation

Tuesday, January 25th, 2011

By Mark P. Dangelo

www.Innovative-Relevance.com

With less than a 1% market share in 2010, tablet computers were a sideshow for most businesses especially when it came to housing and mortgage finance.  Tablets were viewed as a specialized consumer computing devices, which would be replaced by smart phones.  At least that was the thinking before May 2010.

In 2011, the number of distinct tablet computers coming to market is now over 50 from noted manufacturers including Apple, Samsung, RIM, Panasonic, LG, and Fujitsu.  The unit volume for 2011 is estimated to range from 40 to 50 million or roughly 15% to 20% of all “PC” shipments worldwide.  An impressive one year performance for a market thought to have been not important for enterprise solutions. 

What made the difference in a short nine months?  Most would point to the “Apple” phenomenon and its iPad – but the reality is more complex and opportunistic for competitors seeking a few degrees of separation.  It is this division that will define market leaders in real estate, mortgage documents, LOS systems, servicing, and yes, even fraud.  If we can understand the consumer and economic changes, the use of tablets and their technologies can be integrated into business model changes.

A Decade of Permanent Change Forthcoming

As laptop and desktop numbers continue to decrease across an aging domestic population (i.e., per the WPO, one in two will be over the age of 50 by 2025 – up from one in five in 2011), tablets and their unique applications represent a new delivery channel and distinction to not only identify prospects, but to retain progressive consumers and homeowners for the next decade. 

As wealth concentrates and with fewer prime buyers available, the channel methods used to create volume will decline as we continue to deal with a housing supply that is between 3 and 4 years at present rates.  In general, mortgages for the next decade are being forced by markets, standards, and regulations to become more commodities – than unique products within a financial services supply chain.

Additionally, as the Federal Reserve noted this last week, a decline of 1.4% in 2010 (i.e., $311 billion) in the net financial asset base for American consumers does not bode well for future activities or ability to deal with shocks[i].  This continues to be a multi-year trend downward. 

Couple this with lasting mortgage lending realities as noted in the Wall Street Journal[ii], the trend is to downsize further still, and to increase productivity and efficacy.  How?  This will be multi-faceted and include the use of mobile interfaces, data segmentation and mining, and of course, predictive behavioral analytics.

As the aging consumer changes their minds and adjusts their actions, the lenders abilities to reach and predict a new normal are starting to yield early results.  By incorporating new outreach solutions beyond basic VRU’s and call centers, lenders are focusing on the interfaces and channels growing among the most prized of homeowners (i.e., high ratings, less risks, affluent, technologically savvy).  Professional investors are recognizing this and shifting their strategies for new startups or transformations to those organizations a new consumer – the problem is most firms and money are shifting into Asia[iii].  America’s fascination on copy-cat solutions has precipitated transfers that if left unchecked, will make matters worse for jobs and income levels increasing competitive needs for distinction.

Factor in that traditional wallet and paper solutions disappear to be replaced by robust smart devices by 2016 containing cash, shopper cards, identity, and history.  The use of tablets represents a logical shift into the mobile consumer seeking to simply their life while promoting privacy.  If you have your doubts about this radical transformation, research Starbucks new eBucks, the TSA, the 30 plus vendors offering mobile cash, electronic shopper cards, and the list goes on.  It will be interesting to see how will this be captured in future credit reporting?

However, with every new channel, the practices and processes needed to ensure security, privacy, and functionality have to evolve as well.  For tablets, the learning curve and optimal solutions are just beginning as a new rush for gold begins.

So What Does it All Mean?

It has been stated by successful investors, that when financial newspapers start to consistently publish articles on an emerging technology, “it is time to pay attention and take it seriously.”  In the last two quarters, this has been true regarding the mainstreaming of tablet computers and their mobile apps and stores.

Whereas, we have rapidly framed the drivers for robust tablet adoption, the more challenging aspects are those within the middle and back offices and the technological certifications needed to define, develop, and deliver the data across evolving telecommunication mediums.  This will include:

·         Requirements definition and validation,

·         Testing harnesses and certification / promotion approaches,

·         Modularity and compartmentalization of functionality,

·         Data integrity and management,

·         Interoperability standards,

·         Process interfaces and toolkits,

·         Consumer / homeowner privacy and security,

·         Integration with legacy systems (e.g., CRM, EIA, LOS, servicing, securitizations), and

·         Outsourcing of development and third-party, public / cloud networks.

The aforementioned list is standard operating procedure for traditional solutions and channels, but with the unique interfaces of tablets and their inherent mobility, the implementation aspects are not commonplace nor are their sufficient skills readily available. 

A common fallacy of tablets for the mortgage markets is that they have to be bundled with proprietary solutions built on top of commercially available technologies – that is, an app tightly coupled to a platform that is only purchased in their entirely from a single vendor.  That 1970’s mindset is counter to the principles of future certified apps available across functionally rich markets.  It flies into the frameworks of mainstreaming solutions around SaaS, Cloud, and PaaS, IaaS, DaaS, and others.  Stated differently, vendors are looking to lock in lenders in the near term, while capitalizing on the fears of an industry in recovery.

Lenders and brokers should look to vendors and solution providers that promote the iterative adoption and lasting adaptation needed for the evolution of tablets – not repeat the same practices of lock-in that were common in the CRM, LOS, and servicing world leading up the meltdown.  Moving the apps are often straightforward – transforming the legacy data is not.

Tablets, when combined with existing offerings, can provide a clear distinction for consumers seeking mobile solutions and cognitive accessibility with a trusted financial provider – their financial provider.  The leaders of markets in 2011-2015 will embrace the changes and challenges, while recognizing that time-to-market and historical rules of engagement have been altered. 

Without a doubt, tablets are a very promising future real estate and mortgage tie up with consumers.  Traditionally, new technologies and associated practices bring efficiency and efficacy to industries seeking a new path and increased profitability.  2011 will be a pivot point to see if the mortgage industry embraces or discounts the tablet and its unique position within its varied channels.


[i] “Number of the Week: Americans Dipping Into Savings,” The Wall Street Journal, Mark Whitehouse, January 22, 2011

[ii] “Lenders See Little Choice: Layoffs,” The Wall Street Journal, Matthias Rieker, January 21, 2011

[iii] “A Dip in the Valley,” Financial Times, Richard Waters, January 20, 2011

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An Allegory for an Uncommon Time

Tuesday, June 22nd, 2010

By Mark P. Dangelo

www.innovative-relevance.com

(as also published at the National  Mortgage Bankers Association)

In a dark cave, a fire glows in the corner casting its shadows with eerie reflections on the objects within.  In the flickers of light, we can see outlines of gray and black hues sketching out eight individuals – all chained together, all facing forward. 

For decades, each of these figures –consumer, banker, GSE, financier, investor, regulator, politician, and technologist – faced the wall in a sitting position gawking at the dancing wall images encapsulating a unique reality for their daily existence.  Each saw their reality in isolation even though the images of their existence were created from the same source.

The cave, and its changing shadows, was the only existence this group of eight had ever known for business, markets, and individual reward.  The inhabitants had never left the cave, yet each was firm in their own but different, realities.  Their livelihood and prosperity was the cave.  It was comfortable, convenient, and it defined their existence. 

A Seismic Disruption

Just over two years ago, a magnitude 8.2 financial seismic disturbance unshackled the cave dwellers from their bonds, and the light that reassured them of their existence sparked and began to rapidly dim.  In short, the seismic aftermath freed each of the linked from their one-way value chain of subsistence.  As they rubbed their dust cover faces, they witnessed a new illumination coming from the entrance of the cave. 

Disoriented and driven by failing debris, the historically interconnected dwellers were separately forced into the open and the strange confines of a new world.  Grasping, groping, angry, and seeking safety, the eight moved to the glow of new surroundings, as a method to escape individual and financial demise now being delivered by the cave that once protected and sustained them.

For the group of eight (G8), their survival outside of the cave was savage.  Month after month, their long-held axioms were shattered – home ownership, mark-to-market, hedging strategies, derivatives, regulatory certainty, housing markets, ethics, investor confidence, sovereign wealth and currencies, consumer behavior, regulatory oversight, risk analytics and strategies, swaps, structured financing, fiscal responsibilities, and even government-backed enterprises, which have the potential to saddle taxpayers with $1 trillion USD in losses against the national debt (multiples greater than AIG). 

Moreover, the G8 were challenged by those who had already lived outside of the cave, as they were acclimated to behaving and interacting across new world commerce.  These “global dwellers” had different mores, protocols (i.e., regulations), and business demands quite distinct from the G8.  The original G8 longed for the prior security of their cave. 

For the next 827 days, aftershocks and misplaced initiatives dominated their interactions with these global dwellers, and those that indirectly had come to depend upon them.  The G8’s prosperity (i.e., cave light), as defined by their historical cave surroundings, was being extinguished.  A new illumination was coming from a different source delivering ever changing images and realities – a radiance that was high in the sky rising from the East.  The G8 were grasping for efficacy in a new environment as the rules and workflows of operation were regularly failing their original creators.

For the G8, as they exited from cave their global wealth steadily declined by over $20 trillion, as triple-A asset backed securities and complex, opaque OTC derivatives fell in value or vanished all together.  As the markets fell, business interactions among the G8 declined resulting in 1 in 10 domestic adults being unemployed.  Moreover, unsustainable household debt or leverage approached 200% of income as government debt reached WWII ratios against GDP.

The shockwave of unemployment and survival conditions outside of the cave inverted the ratio of new mortgages when compared against delinquencies and foreclosures. Calendar 2010 promises nearly 3 million repossessions and short sales against an average of 650,000 originations.  Private securitization fell from over 60% in 2006 to < 2% in 2009.  Moreover, 2010 brings new survival risks for the G8 cave inhabitants, as global dwellers and their investors demand new restrictions as volatile sentiment creates lingering doubts – and the potential retracing (e.g., double dipping) of the on-going survival pain. 

Life on the Outside — The Unthinkable becomes Commonplace

New behaviors and strange occurrences for the G8 grew.  Consumer strategic defaults became commonplace as “underwater” became a key justification for default.  Bankers reluctantly became “utility” providers, as they never thought their actions would become public record – let alone achieve such a level of public vilification.  Making matters worse, HAMP, which was promoted with the hope for all the G8, is now facing the potential of a 75% re-default within 12 months for those already “helped.”

Even those “Sheppard’s” of the old cave – the regulators, their agencies, and politicians – now added more uncertainty and strange behavior. This diverse trio reacted to the demands of the global dwellers, and the chaos they were unprepared to experience.

Individually and using public forums, once comfortable regulators found their relationships and new world frightening.  They chose to hide behind the nearest tree to avoid retribution or inspection.  Politicians blamed everyone around them as a global distain grew into domestic consequences – their role and reelection appeared no longer ordained – as some were having tea while others were distributing wealth and retribution. 

Investors and brokers now realized, what meteorically goes up can crash to the ground destroying their secure cave and everyone in it.  It was no longer a game or an illusion on the wall of the cave.  It was real, and the consequences dehumanizing.  Actions and results went well beyond the “education” of the markets and informed investors, moral hazards, or even “the greater good.” 

And yes, the technologist who was seeking to streamline processes for operational efficiency (i.e., the interconnected images on the cave wall), find these new global dwellers offensive, belligerent, and failing to accept the storied accomplishments once taken as gospel within the cave.  Their prior status seems to have little meaning to the global dwellers, who have established themselves and their markets without the dogmatic expertise of the G8 “cave interactions.” 

Finally, after a year of debate and blame, in an effort to create a new “virtual” cave, the G8 proposed new guidance for their surroundings.  This guidance was designed to ensure their relevancy and standing in the “new world order.”  They would “set things right.” 

Creating a sweeping series of changes, captured in hundreds of thousands of words and legal language, the G8 sought to create an innovative reality – a “better” reality.  It was a new set of standards for all to follow and admire – to ensure that the collapse of the new, virtual cave can never happen, like the “real” cave did. 

In an effort to adapt to its new global surroundings, the G8 members lobbied, shouted, projected, and cajoled not only each other, but those new relationships they needed for survival and prosperity.  The new world order was now close at hand as the G8 demanded adherence and respect.  But, were these “sound laws” enough?  Too Much?  Or was it all just another illusion – more than business justification and markets demanded – to wield influence and “stake out territories?” 

Rebuilding Against the After Shocks

So dawns a new quarter as the G8 lobby for and lament against financial reform and revolution.  Nearly three years after their cave collapsed, those original eight who were holistically linked have fractured and polarized.  As the pillars burn, for many innocents caught in a financial disruption not of their making, the Four Horsemen have arrived in rumbling droves. 

However, from the ashes of illusion, hope arises – and we believe prosperity will be forthcoming, driven by new guidance and innovation.  But when?  Who will be the beneficiaries?

Contrary to the hope of G8 members, rebuilding does not mean the same or even retro.  Very little will be the same, and the time machine is out-of-commission.  The old cave light taken for granted as the “Sun” by the G8 is now larger providing illumination for all the global dwellers – not just those within the destroyed bunker.  This “New Sun” (rising in the East) is not easily controlled, and it must be harnessed differently if a new ecosystem of co-dependent business models is to be sustained. 

However, for those adjusting to the global dwellers and their “strange” relationships, there is a material risk.  If they adopt and adapt to new behaviors and methods of business, will they be shunned (or worse) should they return to their original G8 members?  Will they recognize their old friends and foes?  Will they be cast aside by those who still favor those dogmatic methods, which once led to prosperity – but sowed the seeds of the largest financial seismic disruption in 80 years (but the largest in net losses)?

For the G8, questions remain in the effort for transparency and viability.  A cursory few include:

·         Consumer:  Will their new “cave” be dependent upon old ideals?  Will they behave so differently that only “educated” owners will be allowed to participate in the new society?

·         Banker:  Will their longing for the historical, be the seeds of their slow demise?  Have their sunk costs of cave participation become so culturally ingrained that they only are perceived to change when forced?

·         GSE:  What will their role be after the “period of convenience” ends?  Are they the next “public-private” villain as the global dwellers seek a new leader(s)?

·         Financier:  Where’s the deal, what’s the spread, and how can it be hedged?  Is this new world really any different than the old one?

·         Investor:  What will be recoverable and who was to blame for their loss of stature and capital?  We were “mislead,” right?

·         Regulator:  What are the implications and impacts of action or inaction?  Is it a global world or “each cave / clan for themselves?”

·         Politician:  Am I interfering in the life and property of “my subjects” with “proper justification?”  Is it safer to be “feared than loved?”

·         Technologist:  Do we have the new skills, processes, data, and architectures needed for conformance and compliance?  Will the existing become immaterial?

Rebuilding, as Machiavelli wrote in 1513, is a torturous compromise, “Men have imagined republics and principalities that never really existed at all.  Yet the way men live is so far removed from the way they ought to live that anyone who abandons what is for what should be pursues his downfall rather than his preservation; for a man who strives after goodness in all his acts is sure to come to ruin, since there are so many men who are not good.“

* * * * * * * * *

So even after nearly 2500 years of allegorical symbolism, it still appears that our parable has not reached its conclusion – not yet.  For lurking within the woods and waters surrounding the recently combined global dwellers, including the G8, are bears, bulls, bugs, horses, reptiles, lions, sharks, snakes, and may be an iceberg.  The environment has changed, the interactions uncertain, and predators are many.  The only axiom still valid is that a new equilibrium has not been achieved. 

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In Times of Renewal, Everything has Value – Not Everyone Sees It

Tuesday, May 18th, 2010

By Mark P. Dangelo

www.Innovative-Relevance.com

As everyone is busy digesting and commenting on financial regulatory reform, a new crisis is quietly unfolding.  Alongside markets, consumers, and investors demanding “different” behaviors, the operational “glue” that binds organizational and system interactions is rapidly losing its adhesion.  The rules of success and organizational profitability are permanently changing, and our trusted and certified systems built with precious CAPEX are losing their efficacy.

“How can this be?” is the typical response, “We measure everything!”  Although, if we examine historical organizational results or performance and project the KPI’s (key performance indicators) forward over the next 18 months, will we be so steadfast in our assertions?  Are the business case justifications and future relevancy for technology driven business solutions still relevant?  Do we have the blueprints or even the architectural frameworks, which secure operational capability to construct new products, deliver bespoke services, or even meet future compliance mandates?

Like many organizations examining their future, the relevancy of existing business processes touching people and systems, across all pillars of finance and mortgage innovation, is fast becoming a competitive liability.  Hemmed in by legacy systems, inadequate governance practices, n-1 generation skill sets, market and organizational transformation, inherited business processes have become arcane and expensive to maintain. 

It appears that an idea of “rigorous self examination[i]” within finance and mortgage groups (FMG) should not be limited to just Goldman Sachs.

Not Everyone Sees It

So, what do all the challenges mean for finance and mortgage organizational renewal at a time when budgets are thin and survivability a top corporate goal?  Is there a proven, universal approach that can be positively utilized for short-term gains with “long-tail” benefits?  How will CAR’s (i.e., challenges, actions, and results) be orchestrated, and more importantly, when will they hit the bottom line? 

However, you may be surprised to learn that hidden within our own organizations’ often resides the answer, the framework, and the (iterative and incremental) approach – business process management or BPM.  BPM is frequently practiced, but not always seen, let alone understood.  Additionally, some believe that BPM is merely a series of disciplines and technologies cobbled together in the early 1990’s, and are not up to the challenges of today’s finance and mortgage innovation demands.  They ask, “What is so special about BPM two decades after it was introduced?”

Historically, BPM has been widely accepted and practiced within IT divisions, while subsequently being provisioned by vendors using architectural approaches such as SOA and SaaS.  Yet, the BPM “call to action” represents a holistic and comprehensive set of interrelated disciplines, “promoting business effectiveness and efficiency while striving for innovation, flexibility, and integration with technology.[ii]” 

Now, with two decades of validation and improvements behind it, BPM is being utilized for more than modeling and simulation.  Today, BPM is being deployed for cost savings (e.g., with results from 10% to 35% ROI), cost avoidance, business adaptability (i.e., agility), and profitable “To-Be” roadmaps, which knit together technologies, operations, and data regardless of geography or platform.  It has found unreserved respect among select, internal champions – but moving forward, BPM will become a corporate agenda item recognized for its versatility and repeatability in driving organizational excellence and continuous innovation.

BPM Case Study Benefits and Outcomes– Large U.S. Retail Bank[iii]

·         Gained competitive advantage against leading larger retail banks:

o   Standardization of credit packages

o   On line application for customers allowed to process factor 4X more credit applications

·         Increased customer base by 25% in one year

·         Lowered operational risk via automated credit check processes and fully automated risk compliance management (i.e., real time dashboards)

·         Reduced staff by 20%

·         Optimized Bank’s working capital via better P&L management

·         Overall productivity increase reached 35%

According to Pedro Fong, BPM Senior Manager at SunGard Consulting (SGC), “The potential for tangible returns using BPM are there.  Nevertheless, the key factors for sustained success reside with the proper alignment of BPM approaches to the goals of the organization.  Experientially assessing how much an enterprise is prepared to invest (i.e., time, people, capital, implications) in making those goals a reality, influences the plan of attack, number of iterations, technology, and the establishment realistic performance benchmarks.” 

For many FMG’s dealing with three years of chaos, losses, and buybacks, BPM has become an organizational stealth competency – or weakness – that cannot be ignored.  Implicit in bringing BPM into the FMG executive agenda is the full recognition of dependent programs, cross-department productivity, and required organizational change mandates. 

Everything considered, by ignoring BPM as the glue which binds organizational transformation and growth, management will likely document an inaccurate picture of progress, benefits, costs, and opportunities.  The result is misplaced accountability and performance driving decisions and investments.  We have to ask the question, “Is this why for the last 15 years over 70% of all organizational initiatives consistently fail to meet their approved charters, criteria, and KPI’s?”  

BPM: Built for Relevancy – Architected for Results

As everyone is eager to “Retweet,” there are some embryonic signs that the domestic and global economy is finally improving.  In fact, John Paulson, the hedge fund manager who made billions predicting the housing market collapse, is now foretelling an impending “V” recovery in 2010 across the markets hardest hit – particularly California. 

So if the markets are recovering, why worry about rebuilding processes or streamlining them for efficiency?  After all, if you are reading this you survived the worst recession in 80 years.  No need to change now as the crisis is past, right?  

Encapsulated within the aforementioned inquires resides one of the greatest mischaracterizations of BPM – that it is only useful when times are tough or “something is broken.”  The benefits and value propositions inherent within a robust BPM framework provides the roadmaps starting at the “macro” and moving into the “micro” – not to mention the ability to traverse and audit processes in reverse. 

As shown in Figure 1, BPM practiced in the hands of experienced personnel provides the iterative and collaborative design that envelopes better publicized improvement methods (e.g., six sigma).  Also, BPM can proactively address the necessary adapters required for existing and emerging technologies along with their provisioning practices (e.g., SOA, SaaS, IaaS, BI, et al). 

Figure 1 — www.innovative-relevance.com/MBA051810Fig1.html

Mr. Fong asserts, “For finance and mortgage organizations, BPM has always been about the proper determination of operational impacts, which can be estimated in such areas as throughput, performance, risk, quality, and availability of data.  ” 

BPM is architectonically organized to achieve results regardless of the operating conditions being experienced.  Upon detailed inspection of Figure 1, we note that the utilization of the generic BROC3 framework (or its equivalent) yields consistently measurable actions and results underpinned by technology and implementation techniques.  For FMG’s pursuing renewal, internalized BPM approaches (like BROC3) can mean the difference between commodity positioning – or market leadership.  

When asked about the proper deployment of knowledge solution sets, Mr. Fong says, “By leveraging technological innovation (e.g., cloud computing, SaaS, SOA) to implement and measure processes (e.g., via dashboards, analytics, and BI tools), organizations are able to create financial and customer insight unknowable just three years ago.  For BPM, technology represents the efficient use of scarce resources, while improving an organization’s ability to create, model, and share new business processes across the entire organization.”

Everything has Value

As we have intrinsically acknowledged, current survivability does not guarantee future organizational sustainability.  Moreover, advanced technology adoption seldom guarantees competitive differentiation – let alone lasting profitability or repeat customer loyalty. 

As noted recently in the Financial Times[iv], “… since 1977 about 700,000 new businesses have been started in the U.S. every year.  The number barely changes from year to year.”  With high domestic unemployment (national average > 9.5%) and record business failures since 2007, the extraction of organizational and operational value cannot be left to chance – or misplaced on a corporate initiative not grounded in realistic quantification. 

So what should we do?  Where is the value hidden and more importantly, how can we get approval to release it from the grips of organizational dogma?  Frankly, do we even have the time needed to reinvent our operations before the next wave of FMG crisis descends on already precariously weak balance sheets?

The answer to these questions, challenges, and opportunities commences with the identification of a business case for BPM.  As granularly presented in Figure 2, Defining the BPM Business Case for Finance and Mortgage Groups, there are many beneficial areas that occur along a continuum of organizational importance.  Moreover, Figure 2 also clearly shows that to ensure your FMG business case survives scrutiny and skepticism it must be tempered against operational requirements, rigor, and yes, reality. 

Figure 2 — www.innovative-relevance.com/MBA051810Fig2.html

 

“The lasting value of BPM is frequently marginalized by the lack of robust business measurement criteria,” say Mr. Fong.  “To ensure organizational sponsorship and support, the business case must be completed as part of developing the project charters and plans.”

However, Mr. Fong also cautions organizations that “BPM is an excellent discipline, but it is no ‘silver bullet’.  All FMG BPM efforts need to be viewed as components of a company’s overall strategic roadmap to meet the needs of the organization and to support the business goals.  These BPM efforts need to be become part of how the organization thinks and reacts so that they are internalized and allowed to evolve.  As with similar methodologies or PI (process improvement) efforts BPM should be viewed as a tool that an organization can use to achieve improvement milestones and lasting operating success.”

As we can now summarize, BPM should not be approached casually or as a “hammer seeking a nail.”  To make BPM more than a slogan or theory, it must align with the business model and a concrete case for its existence must be established.  BPM is much more than a set of IT tools or vendor solution sets.  Whereas, there are short-term benefits that can be achieved without a detailed business justification, if left unattended BPM will languish or be misapplied to situations that are better suited with complimentary approaches.

As demonstrated, the returns and costs of BPM spans many issues within FMG’s.  Provided as examples in Figure 2, you can see some of the items that may resonate with business leaders who are signing the “checks” for BPM enabled programs.  By qualitatively and quantitatively determining “what has value,” your BPM effort is taking an important first step on a journey to reach a proper fit not just for a given business model, but the against the culture, technologies, and operating characteristics of the enterprise. 

* * * * * * * *

It was Lao Tzu, the founder of Taoism, who said, “The journey of a thousand miles begins with a single step.”  BPM for FMG’s is both a place (i.e., discrete conclusion or end result) – and a journey of continuous process improvement delivering concrete organizational outcomes.

As we have examined in Figures 1 and 2, the adoption and adaptation of BPM creates an operating environment that is healthy and proactively aligned to changing business models, economic challenges, and consumer behaviors.  Careful and in-depth study of Figures 1 and 2 will yield additional insights and questions that I cannot address in a single article.  Perhaps I’ll save those for another column, as we didn’t even mention the outsourced and shared services implications for BPM transformation, governance, or delivery.

In conclusion, BPM is suited for “one-off” situations as well as enterprise transformations.  It is the hidden glue that binds our people, technologies, and data.  When the glue fails, our operations become like “Humpty Dumpty,” — no amount of money, people, or technology can singularly put it right.  Without managed business processes, without the glue and its adhesion, we will eventually fail.

 


[i] Lloyd Blankfein, Goldman’s chief executive, May 7, 2010, as published in Financial Times.

[ii] Wikipedia, definition for business process management.

[iii] Data furnished by SunGard Consulting.

[iv] “US Unemployment,” Financial Times, May 10, 2010.

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