Business Process Management Software, also known as BPMS, is a tool used for analyzing, tracking, managing, and improving business processes.
By creating digital models of your processes, every single step becomes trackable.
In turn, this means you can track your employees’ progress, enforce changes effectively, and track efficiency through analytics.
It pretty much turns those not debuggable, black-box processes into transparent boxes, open to any sort of improvement, revision, or optimization.
For any business, that’s good news.
There are various BPM solutions out there. However, every single one of those goes under one of the two main categories – traditional BPM Software and Cloud-based BPMS (SaaS).
But since you landed on this post, chances are, you’re more interested in the former.
Traditional BPM software is what is also known as enterprise BPM. That’s because business process management initially was used by large enterprises that had hundreds of business processes and thousands of iterations of those processes.
Nowadays, however, companies of any size have started using BPM Software. And one of the main issues they face when dealing with enterprise BPM is pricing.
What’s the problem with enterprise BPM pricing?
To begin with, obtaining the pricing information is not something you can do in 2-3 clicks. As opposed to cloud-based BPMS, you need to fill a form and request a quote.
However, the biggest problem with traditional BPMS isn’t the lack of transparency in the pricing models – it’s pretty much obvious they’re going to charge more for bigger & more famous companies. It’s that they are extremely expensive.
When I say expensive, we are talking about a 6 or 7 figures number. For most organizations, that’s a total deal-breaker.
What makes them expensive though, is not just the software itself. It’s the entirety of extra costs that come with the software.
In this guide, we’re going to deep-dive into the exact factors that determine the price and help you get the best from your buck.
Enterprise BPM pricing factors
Generally, there are several factors that are considered when estimating the above-mentioned price for a BPM solution…
Enterprise size
Certainly, an enterprise made up of 500-1000 users can’t be charged as much as a company that has 1000-2000 users. For the simple fact that 2000 users will consume a lot more resources than 500.
Asides for the increased amount of computational resources, the BPM vendor will also charge more for training your employees. Proportionally, of course.
Industry of Operation
Most traditional BPM vendors require you to share information such as the industry in which your company operates. That’s because the industry in which the company operates is also factored in the price.
As a given, traditional BPM vendors do not disclose agreement details to the public because not every company gets the same pricing option. Unfortunately, there is no publicly available data to draw meaningful conclusions from, regarding this.
Complexity of Workflows
The price of an enterprise BPM solution is also affected by the complexity of the workflows. Simply put, the more complex the workflows, the more expensive the BPM solution will be.
It should be noted that for older BPM solutions, these processes need to be coded. Hence if the process is more complex, it requires more coding, which in turns makes it more expensive.
For example, a steel supplying company receives steel from 3 different mines/warehouses and then supplies it to 5 different buyers. This company will most likely have less complex workflows than a company that has 20 different suppliers and several retailers to interact with.
Selecting the right BPM tool
So, traditional BPM tools don’t have a transparent pricing model. It takes a lot of time and monetary resources to implement and use.
There are way too many options out there in the market. And if you pick a tool that’s just super hard to use, your employees might not end up actually using it and you will just waste a lot of cash.
You’re probably wondering, “is there any way around this?” Is there no other option than paying 6-figures for such software?
Isn’t there some software out there that can scale alongside my company and that isn’t extremely hard to use?
Well, firstly, you need to figure out whether your business needs an enterprise BPM solution. At some point, you might end up realizing you don’t actually need most of the functionality that some traditional BPM vendors provide.
Nobody would want to pay 6+ figures for functionality that is not necessary.
So, to ensure you are making the right decision, you should analyze your company and the required functionality for improving and optimizing its business processes.
There are several things to consider….
Business Process Complexity
Depending on how complex your business processes are, you can evaluate the type of BPM software your company needs.
If your processes are complex as in they include a lot of actors, there are several dependency steps, etc, then there is probably no cheap option for you.
Team Size
If your company is made up of a small or mid-range sized team, then you are probably better off with a cloud-based BPM software that scales its costs proportionately to the team size on the go.
In case your company needs a solution that covers a large number of actors, then a BPM that can extend its functionality on an enterprise-wide level might be needed.
BPM Budget
Most businesses that are looking into BMPS are searching for options to improve their business processes and scale their company.
These businesses, for the most part, can’t afford to spend 6+ figures on a software solution. The high initial investment is hard to justify, the risks of failure to implement are high, and there is always a barrier to change resting between management and employees.
All of these factors make the budget one of the most important things to consider when selecting a BPM vendor.
Number of Required Integrations
Several companies require the BPM software to integrate with a number of different applications asides from the stand-alone BPM solution. Why? Because to get the most out of automation, you need to have all your systems working together.
Meaning, when you are choosing a BPM provider, you want to look at the types of integrations your existing software needs to connect with the BPMS. So here are the integrations in order of how common each one is:
Limited Integrations – integrations with specific tools that are not.
Open API – just about every company has it nowadays. It is necessary if you want to extend functionalities and other integrations
Zapier– mostly for newer SaaS companies
However, there are cases in which a company has an existing ERP that requires integration with the new BPM system. This is something that usually only top enterprise BPM software offer.
Difficulty of Use
Old traditional BPM software is complicated. That’s why it requires intense training for all employees.
Creating workflows and processes requires IT professionals to write the code for each one of them. Meaning that management can’t create them on their own. This in turn means:
- Less flexibility
- More time wasted
- More expenses
If you are looking for BPM software that allows anyone in the company to create processes, and not only specialized programmers, then traditional BPM is not the most optimal way to go.
Cutting your Costs with Cloud-based BPMS
At this point, you might have realized that what really matters when picking a BPM software is thoroughly analyzing your business needs. That way you don’t end up overpaying for things you don’t really need.
Asides from being expensive, most traditional enterprise BPM software is old, outdated, and complicated. If you want to have greater control over your business process management solution, you need software that is fast and easy to deploy.
Like any other innovative software, BPM software should also be accessible and usable by anyone in a matter of hours. Instead of requiring 3 months of training, the software should be intuitive for anyone that first uses it.
Cloud-based BPM Software
These are low code, workflow management solutions with transparent pricing models.
Cloud-based BPMS is innovative in the following ways:
Transparent pricing
Being cloud-based, these innovative workflow management solutions provide a clear and transparent pricing model. You can go directly on their website and find out how much you need to pay.
Generally, the pricing models are based on a fixed ($) dollar price / per user / per month.
Some of the pricing models even offer a rate on a per project / per user basis.
Accessible to startups and mid-large sized teams
Being cloud-based, newer BPM software is able to scale on-the-go. If you hire three new employees and you want to allow them to use the software, it only requires a few clicks.
You create new user accounts for the new employees and you give them the credentials to the account. The platform then allocates the necessary computational power to host the new users and the billing details are updated to reflect the latest changes.
Ease of Usability
The main advantage of cloud-based BPM software like Tallyfy is the intuitive way in which the software is structured.
Forget about those 3-6 months of intense training needed to learn how to use traditional BMPS.
Instead, the software offers an intuitive user interface. It is structured in such a way that employees don’t require any training prior to using the platform.
Instead of hiring developers to design and create processes, managers can use a web-based Drag & Drop interface. Ultimately optimizing and simplifying the most cumbersome process of traditional BPMS (ironic right?).
Conclusions
Business Process Management Software has become an integral part of almost any business nowadays. There are many benefits to using BPMS which we will not cover here because they go beyond the scope of this post.
However, one thing is for sure. Companies of any size have now started implementing BPM solutions in their day to day activities, thus increasing the need for newer, more advanced, and scalable BPM software.
Enterprise BPM is expensive and difficult to use. They require expert training in order to create business processes, therefore making them undesirable in an age where everything tends to be automated.
However, traditional BPMS can’t be completely discarded given their large capacity to implement thousands of business processes and integrations.
As a result, when selecting a BPM Solution for your company, it is best advised to initially analyze your business needs and the functionality required by your business processes. You might realize that enterprise BPMS is not the most efficient option.
Most companies that are trying to grow at a fast pace while maintaining low fixed costs are looking for alternative options to traditional BPM systems. Such alternatives are cloud-based BPM and workflow management systems such as Tallyfy. You can give Tallyfy a try by signing up for a free trial. No credit card required.
If you think we might have missed something, or if you have some valuable information on enterprise BPM pricing, share it with us in the comments section below.
Also, if you have any further questions related to the topic, we will be happy to answer them.
Related Questions
How much does business process management cost?
Business process management (BPM) prices will wide vary heavily on the size and complexity of your business. According to my rough figures, I would estimate small are spending a couple for thousands a year on BPM software, and the large organisations are spending a couple of millions. But, keep in mind, BPM is not just software, it’s a methodology and a mindset, typically including consulting, training, and continuous optimization. Theres a lot to invest in, not just money, but also in time and attention, and the return on investment is potentially increased efficiency, reduced error and better customer experience.
What is BPM sales?
BPM sales is the practice of applying BPM techniques and methodologies to sales. It’s about making the process by which a company sells its products or services more efficient and effective. This might entail plotting the entire sales process from lead generation to winning business and identifying opportunities for improving the process. BPM sales could involve automation of routine work, standardizing best practice and real-time analytics for sales teams. The aim is to make selling more efficient, predictable and data-driven, driving both revenue and customer satisfaction.
What does BPM stand for in supply chain?
BPMM in supply chain management refers to Business Process Management. It’s a way of analyzing, improving and automating the complex web of processes used to get products from suppliers to customers. Supply chain BPM Supply chain BPM aims to address the improvement of visibility, bottlenecks reduction and coordination of different phases of the supply chain. It might mean tightening inventory or advancing your order fulfillment or nurturing your supplier relations. Using BPM, firms could develop more nimble and efficient supply chains.
Which is the best BPM tool?
It’s hard to select only one BPM tool to be the “best” one because it will depend on what are your requirements, how much you want to pay, and how technical you are. But, few of the popular ones are Tallyfy, Kissflow, Appian, Pega. For example Tallyfy is worth mentioning due to its intuitive interface and commitment to operational excellence. It is ideal for companies that need to rapidly deploy and scale their BPM initiatives with minimal learning curve. You want a BPM tool that is easy to use, integrates widely, and scales up, and has good customer support, when you’re selecting a BPM tool. And, after all, the best tool is the one that meets your organization’s goals and allows your team to make processes better constantly.
