Harmon on BPM: 2015

As I write this 2014 is fading fast and in a few days we will be beginning a new year. It's a time to reflect on 2014 and to plan for the year ahead.

Very broadly, 2015 will be a confusing year. Some countries are sliding toward another slump, while others are enjoying new prosperity. The US just finished a quarter of record growth and seems ready for an expansive year. China also seems set for a good year while Europe's picture is more confusing. The factor that will have the biggest short term impact will be the price of oil. As long as it stays low, as it is now, countries that depend on manufacturing should do well, and those that depend on exporting oil should do less well.

I suspect that the cost of oil will stay low for awhile, reflecting the new US supplies being made available via fracking. That in turn should accelerate a trend that has already begun in the US – the repatriation of jobs from abroad, as manufacturing changes and moves back to the US. I don't think most jobs that went offshore will return, but I suspect that some will reflecting new techniques and lower energy costs. 3D printing is picking up speed rather quickly and it makes entirely new supply chain designs possible. A variety of items, especially replacement parts, will, increasingly, not be manufactured abroad, and then warehoused, but created, on demand, as needed, close to the ultimate consumer.

In a similar way, although low energy prices will slow the transition, the US is moving toward hybrid cars, and will probably be moving toward hydrogen-based cars in the near future. This suggests a major transition by US companies engaged in transportation – new cars, new distributors, new maintenance practices, and new filling station networks. Toyota's breakthrough in hydrogen technology has certainly demonstrated the idea that if you want to control the future, you begin by inventing it.

We could go on, but the main point is that change will continue to happen, at a very rapid rate, and new technology will continue to require the creation of new business models and new processes. This, combined with a rapidly growing US economy is going to guarantee a vibrant year for the US as companies gear up, hiring more people, and introducing new products and services.

Focusing more narrowly on BPM, most would suggest that BPM has faltered in recent years. There was great enthusiasm when Howard Smith and Peter Fingar published BPM: The Third Generation in 2003. Trade shows bloomed and people gathered to renew their commitment to using business process techniques to improve organizational performance. By 2014 it seemed as if the bloom was off that particular rose. BPMS tools had certainly been developed and deployed, but more as software development tools, and not as a revolution in the way business managers controlled their business practices. Moreover, the whole process movement had become confused as process modeling vendors bought business rulesvendors and both bought Business Intelligence vendors. Let's face it: the market has been confusing, and it hasn't had a string of major wins to underline its promise of major productivity gains.

In the past few years, as the world has struggled to work its way out of an economic slump, major process innovation has been the last thing on the mind of most business executives.

Technological change has continued, however, and now, as the US begins to emerge into a period of vibrant expansion, there is a new BPM technology in place to support it. The popular term is Case Management, and by extension, Case Management Software (CMS) which many will rightly regard as simply a variation on BPMS. Regardless, there is something to be said for new names to get people excited all over again. In essence, CMS is a more comprehensive approach to BPMS, with tools that include an integrated set of tools that will make it easier to tackle more complex and dynamic business processes. CMS tends to give more attention to customers and to the employees that serve them.

No matter how much manufacturing is reintroduced into the US, the North American economy is increasingly a service economy were value resides in the services provided by knowledge workers to consumers. Too many process people are still focused on automating routine procedures, while, in fact, the real demand is for the automation of jobs performed by people that involve tasks that are tailored for individual customers. Process methods have only recently evolved to define and systematically improve that type of process.

In 2015 we are going to hear a lot of talk about the uses and value of Case Management. Techniques evolved to support Case Management development will become of interest to a growing portion of the BPM marketplace and new software tools will increasingly stress that they support new approaches. Growth among Case tool vendors will probably even enliven BPM shows in 2015.

All of this: change and growth, new BPMS products and techniques, and business expansion will make 2015 a lot more interesting than any of the past few years, at least in the US. Other countries that don't experience growth will at least need to adjust processes to deal with the problems created by various shortages. Either growth or efforts focused on dealing with shortages call for business process development and deployment – though as anyone who has lived through the last few years will undoubtedly assert, dealing with new growth is more fun. All things considered, we look forward to 2015 with quite a bit of excitement. The world economy is picking up and lots of new technologies are going to challenge process professionals who will meet the challenge equipped with a variety of new tools.

SOURCE: BPTrends

Four Business Tips for Running Your Own Business

Four business tips for running your own business.

There is a great deal of appeal to owning and running your own business. You don’t have to answer to anyone but yourself- and your customers-, you get to make your own schedule, and there’s the potential to make a good amount of money.

According to one Forbes study nearly 22 million registered companies in the U.S. are classified as self-employed, small businesses. That translates to almost 120 million individuals, or just over 50% of the working population, who get their paycheck from a small business.

Further, it’s estimated that more than 500,000 new businesses get started each month. However, with more employer businesses shutting down than start up, and half lasting less than 5 years the decision to create a company of your own shouldn’t be taken lightly.

The past four decades has taught me some very tangible lessons in owning and running a successful business. Here are my top four business tips one must employ as a business owner:

1. Goal Setting. As tact that is important both from an individual and also a business standpoint, setting achievable goals is really key.  Entrepreneurs can get caught up in the task of running the company and lose sight of where they want the company to go.  It is important that the owner have reasonable short term and long term goals that keep them focused on what tasks are really important from an ownership standpoint.  Similarly, the entrepreneur needs to have a clear cut plan for where they want their career to go.  Having that goal in place and keeping a realistic target in mind can help the owner keep focus.
   • We also recommend this informative article Inc. wrote on ‘How to Set Business Goals’.
2. People Skills.  I frequently hear owners talk about the type of business that they are in.  In reality, it all boils down to the fact that all business owners are in the “relationship” business.  Successful entrepreneurs all need to possess (or develop) people skills in order to establish and maintain healthy relationships with their staff, customers, and suppliers.  It is interesting, that of all the skill sets business owners can have, relationship skills are usually the most overlooked, but arguable the most important.  People skills, that is, the ability to foster relationships, is one of the hardest skill sets to develop.
   • Small business advocate also wrote this great piece on interpersonal skills.
3. Business Ethics.  It has often been said, that owning a business is a license to steal.  Many business owners have the ability to expand on the “grey” area in working with clients and others.  A successful entrepreneur stays successful in maintaining long term relationships which are only kept if the owner acts ethical in all areas of his ownership tenure.
   • Read more from this online magazine at Business-ethics.com
4. Money Management. At times this proves to be a hard discipline for many business owners.  If the “green” is there, many business owners think that the money in the bank account or the cash register belongs to them.  Nothing could be further from the truth.  Staff, suppliers and even customers on sales discounts have to be paid first before the owner can take his or her “cut”.  The temptation of money without employing the necessary discipline of good money management is the downfall of many entrepreneurs.

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