IBM WebSphere: it is a software that enables dynamic interconnected business process nad delivers infrastructures for businesses of all types.

As said by Walker Royce, vice president of Rational software services that “unjustified precision (i.e., averaging ten survey responses that provided a 1-5 rating is not a precise description of customer satisfaction) and objective representation of subjective or speculative estimates” we must make proper analysis in order to make a make business process management.

The two major things concentrated here are:

1.reducing the amount of time it takes to do something in a company by a person as compared to this thing done in old approach.

2.The above is in deed a result of corporate cost savings by following a better articulated, documented, more accessible and standard practices in company work.

There are formulas mentioned for calculating ROI in ibm.com which needs information on following terms

1.turnover

2.number of workers

3.working hours

4.designation of workers

5.cost savings

In order to calculate net benefit they have considered the following opportunities

1.process improvement

2.reduced time spent in meetings

3.team member’s savings

4.service support manpower savings

CIOView Corporations:

CIOViews gets information on benefits from CRM/ERP by interviewing its customers who have already deployed an ERP or CRM system in the last 12-18 months.

According to what i have understood is that- this company gives more attendtion towards customer relationship management and enterprise resource planning. and in terms of calculating ROI starting from cost side, it mainly concentrates on

1.Initial costs: which are all of the costs required to get your portal(web portal used for the links) up and running

2.Ongoing costs: those costs that happen year in-year out such as staffing costs.

Variables considered for measuring and analyzing ROI

a.buying and selling assets,

b.lease or buy decisions for capital equipment, and

c.deciding which projects to fund.

Net Present Value[NPV] is another parameter used in conjunction with ROI to decide upon which project is suitable for the business process.

these tools are used to know the factors affecting the business process management. Based on the variables both the tools use to measure and analyse ROI, i personally feel that CIOView corporations method is comparatively better since it concentrates on soft returns/benefits on investment such as customer loyalty and satisfaction.

But at the end these tools are still immature to have not considered the "what if" conditions. A part of analysis should be done manually at the 3 stages of pyramid to include factors which are not included in the standard criterian (rare case of problem from ethical side or from society). So employees must involve themselves to do these activities and just make use of the technology(application tools) to help simplify the work but not take the whole decision.

by

Masudur Rahaman

1ms06is033