Genpact SEP Concept Applies Science To BPM

Genpact has announced Smart Enterprise Processes (SEP), a rigorously scientific methodology for managing business processes. SEP delivers improved financial performance by breaking down organisational silos and making business processes effective. Compared with traditional efforts focused on efficiency within individual processes or business units, SEP’s end-to-end methodology can deliver two to five times the impact on improved cash flow, margins, revenue growth or other targeted financial and operating metrics as per company claims.

SEP applies a framework of analytics, technology and re-engineering to the key processes that a company uses to manage its business. Through experimentation, testing and analysis of data from over 200 million transactions across more than 3,000 managed processes, Genpact has determined the benchmarks that best-in-class companies achieve at each level in a process. It has identified the key drivers of improved business results for each process, and developed best practices for addressing those drivers.

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Genpact uses this intellectual property to test the effectiveness of a client’s processes by measuring performance at each step of an entire business process, and applying best-in-class benchmarks from within and across industries. Next, it creates a client-specific diagnosis and roadmap with relevant targets for driving business results. Genpact then carries out its recommendations in the execution phase, with a preferred commercial model of being compensated based on the results achieved.

The SEP methodology contrasts with the traditional focus of measuring efficiency within individual processes or organisational functions (for example, number of invoices paid per hour). The traditional approach reflects a narrow view of measurement and can even be counter-productive. Instead, SEP reaches across business silos, and concentrates on the effectiveness of an end-to-end process in improving clients’ overall business results such as cash flow, revenues and margins. For example, ‘Source to Pay’ spans procurement, supply chain management and accounts payable.

“Processes that cut across the company are linked like a chain,” Bhasin said. “And, like any other chain, there are weak links that need to be fixed. SEP uses our expertise, technology and benchmarked data to examine the entire chain, identify the weak links, diagnose the problems and fix them.”

Genpact is applying the SEP methodology to both common business processes (eg, accounts receivable, collections, financial reporting, procurement, order fulfillment), and to industry-specific needs in manufacturing, healthcare, finance, insurance, logistics and consumer packaged goods. SEP targets back-office processes that reduce costs and front-office processes that generate revenue.