Intelligent Business Process Management (iBPM) has become a pivotal enabler of organizational transformation. Gartner assessed that 81% of organizations with iBPM capabilities have experienced noticeable, beneficial shifts in their operational frameworks.
Building on the insights shared in our first (here) and second blogs (here) on iBPM, here we provide our experience on the optimal timing (“When”) and best strategic approach (“How”) for the integration of iBPM into a financial institution.
Signs that an iBPM implementation would be beneficial
Innovation in the banking industry is moving ahead fast, stimulated by new technologies like Generative AI. This means financial institutions need to continuously upgrade their technology stack to meet evolving client expectations. At the same time, emerging FinTech companies are altering the traditional banking landscape by leveraging their all-digital structures. In response, incumbent banks are introducing a higher level of automation in many of their client-facing and non-client facing business functions to innovate and to maintain their competitiveness.
iBPM is one of the means chosen by banking institutions to address these challenges. We found three key indicators which show it is the right time to carry out a digital transformation via iBPM:
Steps to successful implementation: a 5-step approach
Implementing iBPM is about operational transformation through manageable, progressive steps. The primary focus is to have a concise plan to integrate iBPM effectively, optimising the value delivered. Our 5-step approach has proven to be effective in supporting an iBPM implementation:
How to deliver?
The decision on a delivery approach for iBPM depends on the company’s internal resources and expertise. Consider the following three options, internal delivery, hybrid delivery and external delivery, detailed in the graphic, to identify the right approach.
Overall, whether an organisation selects internal, hybrid, or external delivery depends on its internal capabilities and experience, resource availability, and desired level of commitment to the iBPM project.
How to implement?
When planning for iBPM, deciding who will be executing the implementation is just as critical as choosing how it will be delivered. The 'how' — whether through Agile or Waterfall methodology — dictates the project's execution style.
Agile methodology
Agile is all about flexibility and adjusting to changes quickly. It suits companies expecting to refine their processes as they go, responding promptly to feedback and evolving requirements. Agile breaks the project down into small sections, allowing teams to address changes and improve the product step by step.
Waterfall methodology
The Waterfall methodology is a linear approach in which each stage of the project must be completed before moving to the next. This methodology works well for companies that have a set plan with well-defined goals and only minor expected changes along the way.
Choosing between the Agile and Waterfall methodology depends on the company's preference for flexibility or structure in the project's execution. The key is to select the path that aligns most closely with the company's operational style and strategic goals.
How to ensure success?
To ensure a successful iBPM implementation, the initiative has to be embedded within the organisational structure. This is most easily achieved by establishing a dedicated, cross-functional team, including stakeholders from the client-facing business, IT, operations, and client service. Guidance and support from a senior sponsor helps to integrate the iBPM initiative into the bank's culture while reinforcing the commitment to innovation and excellence from senior management. Change management as well as clear and open communication are two other factors that must not be forgotten in the recipe.
Conclusion
The financial services sector is evolving rapidly and iBPM stands out as a valuable means to keep up with the required pace of change. It offers a practical response to common challenges, such as obstacles to innovation, low client experience ratings, and poor efficiency.
iBPM is most successful when the focus is on regularly updating and optimising processes in an agile way. This allows organisations to adapt and evolve their operational strategies effectively, ensuring they are aligned with industry trends and client needs. The key to an effective iBPM implementation is a well-planned project approach. A structured implementation strategy ensures the integration of iBPM proceeds seamlessly and is impactful.
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