Organizations face the challenges of a volatile world, from adapting to new working models and coping with supply chain disruptions and new technological leaps triggered by artificial intelligence (AI) to adjusting or transforming their business models to changing political and economic conditions as well as regulatory conditions (climate change, sustainability). Process optimization through digital transformation is now a necessity.
Using AI will increasingly determine which organizations accomplish efficiency gains and secure long-term competitive advantages. At the same time, ESG and sustainability criteria must be integrated into business processes to meet societal, ecological, and economic requirements and achieve sustainability goals. Holistic process management supports technological innovations like AI, process mining, and RPA, as well as sustainable practices and digital transformation. For the fifth time, together with our partner BPM&O, we conducted a cross-industry survey of 676 experts and examined the market situation, the implementation status of process performance measurement, and trends in the introduction and development of process management.
Process management has gained importance since our first study in 2012, and now artificial intelligence, digitalization pressures, and sustainability are forcing organizations to address process management and their processes more than ever. It is not surprising that, compared to the last study from 2021, the proportion of organizations that consider process management to be very important has risen from 35 % to 42 %. Overall, 80 % of respondents consider process management to be important. There are slight differences in the comparison between the participating countries: Switzerland (68 %) is the leader in terms of recognizing the importance of process management, followed by Germany (41 %) and Austria (39 %). The study was also conducted in France for the first time – over a third (36 %) confirmed that process management is very important for their organization.
The most important drivers for the introduction of process management remain increases in cost optimization and efficiency as well as digital transformation
As in previous years, the most significant drivers of process management continue to be cost efficiency/efficiency increases (30 %) and digital transformation (28 %). Quality assurance (24 %), risk minimization (20 %), and inefficient operating processes (19 %) are driving process management more than in previous years. At the same time, triggers for introducing or further developing process management are more diverse. For example, in the banking sector, the focus is primarily on regulatory and legal requirements, while in logistics, the focus is on sustainability, and in the communications sector, it is on minimization. The topics may differ depending on the industry and organizational situation, but they must be identified and subsequently used for successful follow-up.
Process management begins to take effect
The objectives of process management have hardly changed compared to the last study, but the degree of goal achievement is increasing for almost all objectives: process management is starting to have an effect! The fulfillment of compliance and regulatory requirements (67 %), the improvement of (process) quality (64 %), as well as the increase in customer satisfaction (61 %) will again be achieved satisfactorily by almost two-thirds of organizations in 2024. The newly added goals of further training in process skills (54 %) and increasing employee satisfaction (52 %) are new additions that have already been achieved satisfactorily by almost half of the organizations. The biggest difference compared to 2021 can be seen in the objectives of cost savings with an increase of 14 % in target achievement and in the automation of processes, which was also achieved more satisfactorily but falls four places in the ranking of importance.
Process performance measurement is still expendable – especially in Germany
Only two-thirds of participants regularly measure the benefits of process management – the difference between France (77%) and Switzerland (71%) at the top and Germany (53%) is high. Only every second German organization measures the benefits of process management. Half of the organizations that do measure the benefits of process management either work on setting up their own process controlling (50%), integrating measurement into organizational controlling (50%) or developing their own process indicators (39%).
Process mining as a digital driver is progressing more slowly than expected
Process mining is a data-based method for analyzing business processes that makes it possible to visualize actual process flows based on digital traces in IT systems to increase efficiency and reduce costs. It offers an objective and data-driven process analysis, supports well-founded decisions, and helps identify bottlenecks and inefficient process flows, which promotes the transparency and understanding of processes at all hierarchical levels of an organization and enables the management of measurable process performance. Due to the increased process transparency, process mining provides the foundation to control processes sustainably.
Process mining in process management at one glance
- The operational use of process mining has increased by 11 % in the last three years – however, only one in five organizations uses process mining operationally (20 %).
- Satisfaction with the results achieved through process mining has risen by 21 %, and through improved data availability, success becomes visible more quickly.
- The utilization of process mining solutions is associated with improved process quality (36 %), cost savings (33 %), and process automation opportunities (32 %).
- The biggest challenges for the use of process mining are considered to be the establishment of a technology team (34 %), data protection (32 %), and the mobilization of specialist departments (29 %).
Market trends influence the development of process management
Three different trends were identified that significantly influence the further development of process management.
Integrated business process management in transformation programs
Integrated business process management (BPM) follows a process-centric approach, placing business processes at the heart of the transformation program and applying BPM principles, methods, and practices. The integrated BPM approach ensures that the program focuses on analyzing, designing, improving, and maintaining business process documentation. In this way, IT solutions and technologies can be implemented and trained in a process-oriented manner to clarify process roles and responsibilities. Additionally, sustainable process management structures can be established during the rollout that contribute to continuous performance measurement. Every second organization surveyed is introducing process management as a part of a broader business or IT transformation program.
New technologies can support process management, but their benefits must be carefully evaluated
New technologies allow for processes to be made more efficient, and process experts and responsible personnel must increasingly evaluate where and how these technologies can be used to optimize existing processes. Insights from existing process data can be more easily used to improve processes during ongoing operations. Almost two-thirds of study participants assume their organization will use AI technologies for process optimization by 2027 (64 %), while only a quarter (26 %) believe this will not be the case. The optimism and openness to new technology and the associated positive expectations regarding the impact on process efficiency are particularly prominent in Switzerland (77 %) and France (74 %). In Austria (57 %) and Germany (56 %), only slightly more than half of the respondents are convinced that AI will become established by 2027.
Process management helps to promote ecological sustainability and make the use of resources more efficient
Ecological sustainability in business process management means that organizations design their business processes in an environmentally friendly and resource-saving manner. They reduce energy, water, and raw material consumption through efficient technologies, recycling, and waste reduction. Considering the entire life cycle, from production to use and disposal, enables a holistic view of the environmental impact. Process management makes a significant contribution to the implementation of sustainability in an organization by driving forward the digitalization of sustainable processes (44 %), raising awareness of the topic throughout the organization in the context of processes (42 %), and building process skills with a focus on sustainability aspects (41 %).
Market trends such as integrated BPM, new technologies, and sustainability influence process management, yet it must be clearly defined and structured:
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We support our clients in setting up, developing, and designing the various building blocks of business process management
Consistent, sustainable process management requires consideration of the strategic, operational, and methodological levels. Depending on your organization’s goals, performance requirements, and capabilities (maturity levels), we can help you identify weaknesses and design the appropriate building blocks for optimization.
Strategic level
We support our clients at the strategic level by aligning the process management strategy with the organizational and IT strategies and setting the proper strategic guidelines. We provide support with establishing the correct set-up for the process-oriented organization (including roll and competence model, resource requirements, committees, and communities) as well as setting up the necessary governance and incentive processes.
Operational level
On an operational level, we support the (further) development of the process map, the determination of process documentation standards, as well as the elaboration of the process analysis procedure (including tools and methods). Furthermore, we support defining the process key figures, developing a procedure for using the results for regular process evaluation and control and collecting and communicating the value contribution of process management.
Methodological level
On a methodological level, we support our clients in deriving business and technical process management requirements for IT and evaluating applications, technologies, and tools for process design, management, automation, measurement, and analytics. Furthermore, we provide support in developing and implementing suitable communication, change, training, and education concepts to create relevance and acceptance for process management.
About the study
The online survey was conducted between November and December 2023 among clients of BearingPoint and BPM&O and with participants in an Innofact panel. Potential participants received an email with a brief description of the study and a link to the survey. Participants were informed that participation was voluntary, that their answers would remain anonymous, and that they could cancel the survey at any time. The surveys of the previous studies were based on a comparable methodology.
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Jan Martin BernstorfDirector
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Jan Martin BernstorfContact meDirector