Market Challenges And Opportunities

Global Business Process Management Market - Drivers

Rising Adoption of Cloud-Based Bpm Software

Cloud computing allows enterprises to store, manage, and process critical data remotely over the internet. The cloud-based business process management system consists of business processes, business information, and IT resources, which combine to create real-time intelligence systems. One of the most critical activities a firm performs is collecting and storing data. Businesses generate enormous amounts of data because of their transactions and other activities. The rising amount of data storage has paved the way for adopting cloud- based BPM as a solution, which incorporates cloud computing and storage. Several companies used cloud- based BPM services to resolve common problems with traditional BPM, including promoting flexibility and event-driven business processes to take advantage of market opportunities. Many companies are adopting cloud-based BPM software to provide a more flexible IT environment. For instance, in 2020, according to state of BPM market report, 70% of the companies are using process modelling tools in order to improve efficiency and reduce costs for their companies.
BPM, available as SaaS in the cloud, offers full software functionality without the need to install and maintain the software. It eradicates the overhead of managing a server infrastructure while executing a solution for BPM and workflow management. It includes software deployed remotely and usually on demand & via a 'pay as you go model.' Companies are increasingly adopting SaaS-based cloud BPM as it provides fast time-to-solution coupled with low infrastructure costs. Many SaaS-based BPM platforms offer low-code functionality to strengthen business units and employees who are familiar with business processes but lack technical expertise. The development of customized applications to accelerate the digital transformation of companies is becoming the norm in business today. Many companies are seeking simpler and more efficient ways to remove the need for expert teams. This is expected to drive the growth of the BPM market.
Cloud service providers are increasing the security of their services and are anticipated to fuel the market development. Organizations increasingly rely on data centers to access information, which needs to be integrated with the business processes to optimize performance. Some firms may not be able to reap the benefits of cloud BPM because they might not have related data suiting their businesses. In such scenarios, the onsite BPM service delivery would flourish.

Increasing Adoption of Bpm in Banking and It & Telecom Sector

The rise in demand for BPM in various sectors such as banking, IT & Telecom, and more is increasing owing to its benefits of increased flexibility, reduced costs, and enhanced service quality. Moreover, BPM allowed companies to focus on their main business activities to deliver value to their customers. Owing to the advantages mentioned earlier, BPM is witnessing significant demand among various end-use industries. For instance, in 2020, according to the State of BPM by Signavio nearly 70% of organizations implemented business process management in order to improve productivity or reduce costs. Only 2% had all business processes modeled. In addition, 60% said they worked on one or greater than one transformation project, and nearly 36% said they worked on ten or greater than 10 process improvement projects.
Banking and Financial institutions pose a significant demand for BPM to improve cost efficiency and provide ease of customer management across various regions. BPM is an integral part of the BFSI business model, catering to multiple domains of the financial sector, including asset management, phone banking, customer service, and investment management. The growing digitization of services in the BFSI industry and increasing focus on personalized services have led to the need for service providers to optimize data management, enhance customer value, and enhance cross-selling opportunities. It has led to increased adoption of BPM in the BFSI industry and is anticipated to drive the market over the forecast period. For instance, in 2021, an IBM study revealed that more than 50 % of CEOs of banking and financial organizations are focused on simplifying their operations and products to manage the task complexity effectively.
The IT & telecommunications industry is constantly evolving owing to technological advancements. Several companies in the industry such as Bharti Airtel, AT & T, Verizon, and more are quickly adapting and responding to the market changes due to rising competition in the industry. It has paved the way for the rising adoption of BPM software in the IT & telecommunication industry, mainly associated with the growing emphasis on operational excellence, business visibility, and customer service. Using BPM in telecommunications companies provides end-to-end transparency to identify processes and solve problems so that customers are satisfied.
Utilize value stream mapping to optimize productivity and efficiency by analyzing value, cost, and efficiency. Through streamlined processes, companies can improve cycle times, reduce errors, and speed up the process. This has surged the adoption of business processes management software by various companies in the market.

Global Business Process Management Market - Opportunities

Rising Integration of Digital Technologies in Business Process Management Software

Several companies are integrating Artificial Intelligence (AI), and Machine Learning (ML) technologies with business process management software to reduce manual errors and improve IT systems innovation, global competition, and new technologies are the key driving factors behind the expansion and growth of the business process management (BPM) industry. BPM has provided businesses with the means to increase profits and cut costs effectively. With the increased influence of these technologies, BPM can boost the efficiency of its services even further.
Technologies such as robotic process automation (RPA) that have emerged over the past few years have influenced the BPM industry. RPA, with its cost savings abilities, speed, and efficiency, is slowly making its way into all sectors and all types of business processes. Robotic process automation has also emerged as the fastest growing trend in BPM, mainly in the management sector, enabling high-value creation with rapid time- to-value and notable cost savings. For instance, in 2020, Appian Corporation launched the Appian Robotic Process Automated platform which utilizes workflow, artificial intelligence, case management, and decision rules at the speed of low code. This means companies can use the technology for automating the end-to-end process.
The increasing sophistication and application of process automation in the BPM domain leads to an increase in virtual workers. Robotic process automation will enable the completion of tasks more cost-efficiently and with greater accuracy. Due to this, robotic process automation technologies are expected to take over labor- intensive back-office operations. The adoption of RPA in BPM is predicted to increase over the next few years since it does not require costly and complex integrations and has no unintended technology consequences.

Integration with Emerging Technologies

In the dynamic landscape of business process management, the integration of emerging technologies is becoming increasingly crucial. The Global BPM market is witnessing a significant shift as businesses seek to capitalize on the potential offered by cutting-edge technologies. This integration aims to enhance process efficiency, drive innovation, and gain a competitive edge in today's fast-paced business environment.
One of the key drivers behind the synergy between BPM and emerging technologies is the pursuit of improved automation and intelligent decision-making capabilities. Robotic Process Automation (RPA) is one such technology that has gained prominence in BPM solutions, enabling the automation of repetitive tasks and the optimization of workflows. RPA's ability to work seamlessly alongside existing systems, without the need for significant infrastructure changes, has made it a favored choice for businesses seeking immediate efficiency gains.
Artificial Intelligence (AI) and Machine Learning (ML) are also revolutionizing BPM. By leveraging AI and ML algorithms, businesses can analyze vast datasets to gain valuable insights, make data-driven decisions, and predict potential bottlenecks in processes. These technologies empower BPM solutions to become more agile, adaptive, and proactive, thereby fostering continuous improvement and innovation.
The integration of Blockchain technology is yet another area driving transformation in BPM. Blockchain's distributed ledger system ensures data transparency, traceability, and enhanced security, leading to improved trust and accountability in various business processes, such as supply chain management and financial transactions.
Furthermore, the Internet of Things (IoT) is reshaping BPM by connecting various devices and systems, providing real-time data for better decision-making and predictive maintenance. With IoT integration, BPM solutions can optimize resource utilization, monitor performance, and enable proactive maintenance, ultimately leading to cost savings and improved customer experiences.

Global Business Process Management Market - Restraints

Rising Security Concerns

Companies must consider many threats when using Business Process Management (BPM). Business processes are vulnerable to security hazards, including hacker attacks, malware, or data theft. These may negatively impact a company's value, such as shareholder value, profit, or reputation. Customers' skepticism about a company's security would negate the advantages of BPM, which include cheaper or faster service delivery. As a result, companies are increasing their resources to protect their business processes. Companies are investing a lot of money in security. Often, they fail to enforce security policies appropriately, thus making the development process insecure. For instance, in 2020, according to the Global DNS Threat Report, 79 % of enterprises had been affected by DNS attacks. Security breaches cost an average of USD 924,000 each year. Furthermore, hackers may have a significant economic impact on companies. Due to the cost of theft, the cost of recovery, the loss of business value, and the loss of reputation and confidence. This is expected to hamper the growth of the market.
Many outsourcing companies outsource to countries without a legal framework that protects them from breaches of confidentiality and infringements of intellectual property rights to reduce operational costs. A lack of legal framework in an outsourcer's operational country can significantly impact any legal action or compensation in case of a breach, regardless of whether corporate contracts bind the outsourcer and outsourced. Because of this, outsourcing companies are concerned with how outsources handle information and are often reluctant to share it because even a small error can result in a permanent setback regarding a company's market position. Thus, it is anticipated that outsourcers' reluctance to outsource business processes will significantly hamper the market's growth.

Process Diversity

Organizations witness different types of processes across various business operations. These processes may primarily need a system–to-system exchange, human interaction, alteration of information, the creation of documents, or necessitate arrival at a significant decision. Additionally, processes can be categorized as simple or complex, managing a limited or considerable number of transactions.
Some processes, such as sales campaigns, are time-consuming and may take several days, weeks, months, or years whereas others might occur in less than a second. Further, processes may be categorized as highly structured with repetitive tasks or unstructured, wherein the workflow can be identified during the execution.
The diversity of these processes has conventionally compelled enterprises to utilize multiple process management systems, which focus on handling a subgroup of these process types. This consequently increases the complexity of the system. However, efficiency may be achieved in a few processes, but complete efficiency and agility are still challenged, owing to the barriers imposed by a point process solution.
BPM does not form the ideal process management solution to address all types of processes. Thus, process diversity is anticipated to evolve as a significant restraint. However, if BPM solutions can overcome this barrier in the future, it would reduce IT complexity in supporting several products. It would also offer a better return on investment, owing to the reduced IT & business costs.