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New Best Practice: Business Process Management

 
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Caspar Hunsche
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Joined: 17 Oct 2005
Posts: 38
Location: Houston, TX

PostPosted: Tue Feb 14, 2006 8:57 am    Post subject: New Best Practice: Business Process Management Reply with quote

Have you noticed that the SCOR model does not actually advocate it's own strengths as a best practice? SCOR- or frameworks-based business process improvement and design provides significant benefits over classical re-engineering efforts: Time, cost, return on investment. A study by the Supply-Chain Council shows a significant advantage for SCOR-enabled companies. See press release below.

Business process management here should not be confused with BPMS or workflow automation. The case I am making is for the structural approach of managing business and supply-chain performance based on process performance using techniques like the SCORcard (or scorecards in general), process modeling, staple-yourself-to-an-order, etc.

Quote:
Source: Supply-Chain Newsletter, October 2002

A recent study completed by the Supply-Chain Council disclosed that the 70 companies on Forbes Magazine’s Fortune 1000 list that are Council members account for 35% of the profit reported by all 1000 companies listed. Other findings include:
  • 17% of all Fortune 1000 revenue is accounted for by SCC member companies
  • The profit margin for SCC Fortune 1000 members is roughly 2 ˝ times higher for SCC members than non-members.
  • Industries on the Fortune 1000 list with 4 or more SCC practitioner companies have a cumulative difference of over $14B in profit over non-member companies.
“This study reflects the power of SCOR and its ability to produce bottom line results,” said Joe Francis, Business Process Management and Information Technology, Hewlett Packard, and member, SCC Membership Committee and SCOR Board.

The study findings were based on the examination of information from Fortune 1000 companies as identified by Fortune Magazine. The scope of the research conducted included identifying SCC member Fortune 1000 companies and comparing reported information on similar non-member companies.

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Caspar Hunsche
caspar.hunsche@pcor.com
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