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Business Processes on the Cloud - Implications

Business Processes on the Cloud - Implications

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Implications of running business processes on cloud.
Implications of running business processes on cloud.

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Published by: Madhusudan Krishnamoorthy on May 11, 2012
Copyright:Attribution Non-commercial


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Business Processes on theCloud
Business Processes on the Cloud
 As per A Strategy Guide for Business and Technology Leaders
and the Rest of Us by Andy Mulholland,Jon Pyke and Peter Fingar, Business Process Management as a Service (BPMaaS) creates unique businessprocesses designed for specific purposes to link together multi-company value delivery systems that in
the past weren’t feasible or economical to join together.
BPMaaSis all about the complete managementof business processes, and puts business people in charge of their processes. In many ways,BPMaaSiswhat sets enterprise cloud computing apart from consumer cloud computing. Unique businessprocesses are how companies differentiate themselves, and are thus paramount to the enterprise use of cloud computing for competitive advantage.BPMaaScovers the full lifecycle of business processes, fromtheir conception, design implementation and optimization. Bringing BPM capabilities to the Cloudenables multiple companies to share a common BPM system and fully participate in an overall end-to-end business process.So what does it mean to put your processes on the Cloud? On the one hand, there are the obviousbenefits of collaboration across dispersed geographic locations and a more cohesive value chain enabledby collaboration beyond the firewall.BPMaaSis also an excellent way to test project pilots and thenhave them delivered on demand putting the controls directly in the hands of business owners fordecisions on size of investments, scalability etc.On revenues,BPMaaSradically reduces risk and startup expenses for innovation initiatives lettingcompanies take more small bets and test out more new ideas. With no upfront capital expense, newprojects can be scaled up instantly if they take off, or shut down quickly if they fail. This sort of elasticitypromotes agility and provides a launch pad for truly innovative ideas.Beyond the firewall, putting processes on the Cloud also allows organizations to collaborate in new wayswith its trading partners, and collaboration is the key to gaining competitive advantage across the value
chain. By establishing shared workspaces in “Community Clouds” employees from multiple companies
can work together as
a “virtual enterprise network” and function as though they were a single company.
They all participate in the same value delivery system, sharing computing, communication and
information resources. This is especially important as no one company “owns” the
overall value chain.For someone who consumes Cloud based services and business process management software, it is keyto remember that Cloud delivery is still in its infancy and accounts for less than 10% of all softwareproduct and services delivery models. As per a Gartner report, recognize that BPM PaaS vendors' view of elasticity generally means that they will enable more services and more capacity for you, but in manycases, this enablement is not automatic and not really elastic.Plan your budget with the understanding that, even when "elasticity" is automated, it is usually onlyautomated to increase, rather than decrease. As a result, your payments may stay the same, eventhough your consumption decreases.Examine the multi-tenancy claims of a BPM PaaS or cloud-enabled BPM platform vendor againstGartner's CEAP multi-tenancy reference model. The aforementioned limitations in elasticity suggest thatvendor claims of more-advanced "shared everything" multi-tenancy maybe exaggerated.

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