Process Intelligence for understanding the result of the improvement of business processes

Question "What company will receive as a result of the improvement of business processes?" - is the key for most customers. Most appropriate for the evaluation of such projects is using an approach, based on the indicators return of investment.  For this purpose, can be used the following indicators:

• net income, shows the effect of the project in absolute terms;

• return on investment, shows a return on investment from a certain period;

• payback period, determines the time interval of recoupment;

• other indicators.

Assessment of economic indicators in one way or another can be carried out at different stages of a project to improve processes. We can distinguish at least three such stages: diagnosis of the company, construction and analysis of processes "as is", construction and analysis of processes "to be".

In the first two stages can be used only some elements of the calculation, and get enough rough estimates of economic indicators. The most accurate of their value can be obtained at the stage of design and analysis of processes "to be".

The initial data used to calculate:

• models, describing processes "as is" and "to be”;

• the results of the analysis processes;

• a description of activities for the transition to the processes "to be”;

• investment costs for projects and activities for process improvement.

Basic criteria of processes that change as a result of improvement are time, cost and quality. The basic scheme used for the calculation of economic indicators, is shown in figure.

In the calculations, the following components are used:

• direct and indirect income change;

• changes in the cost of operations;

• investment costs for a project to improve and for doing actions on the transition to the processes "to be."

Changes in costs and revenues are determined, based on the comparison of processes "as is" and "to be". Direct increase in income, for example, is a result increase in the total number of clients served. Indicators of indirect changes are evaluated by determining the indirect effects of the planned change of processes.

Thus, Process Intelligence can used for understanding the quantify result of the improvement of business processes. These quantitative estimates can play a crucial role in attracting customers.