Running head: COMPUTER SCIENCE 1

How business processes as services can improve efficiency

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How business processes as services can improve efficiency

Business processes as services or BPaaS can be defined as a kind of business process

outsourcing offered based on a cloud services model. “BPaaS offers firms with the individuals,

processes, and technology required for operating as a pay-per-use service by taking advantage of

the existence and efficiency of a cloud-based system” (Lynn et al., 2014). BPaaS improves the

efficiency of a business in terms of services and security in various ways. First, in service

deliverability; which involves inventory management, organization of emails, and customer

records, BPaaS assists firms in facilitating the delivery of services in a streamlined, automated

manner by the application of cloud technologies. BPaaS is standardized for the application across

firms and industries and thus it is flexible and repeatable, contributing to higher efficiency and

ultimately desired service and experience for business clients.

Secondly, BPaaS enables business managers in prioritizing the successful completion of

an entire process. One is enabled to maximize potential workflows and ensure that team operates

with what they require instead of having to verify information, constantly email with providers,

or take over processes. “For firms with multiple locations such as banks, plenty of core

functionality is made consistent to enable the head corporation to evaluate the success of each

branch” (Duipmans & Pires, 2012). Complex processes that ought to be uniform are linked to the

cloud-based service and made simpler. Automation enables businesses to ensure processes are

correctly performed upon finalizing tasks. Efficiency is realized by the use of cloud computing in

management and optimizing system resources like storage and processing.

Moreover, BPaaS is cutting edge at reducing cost as it offers businesses with the latest

digital tools, technologies, processes as well as talent that improve efficiency, service delivery,

and customer experience with an investment of large capital which was traditionally required. By
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implementing BPaaS, firms can shift to a pay-per-use consumption model and minimize the total

cost of ownership. Reduced infrastructure costs can also be realized as there is no need to

purchase servers and other hardware. There are no maintenance costs incurred due to the ability

of BPaaS to assist in budget savings. Scaling is also made more affordable and it experiences

fewer restrictions, such as those associated with location, since all that is required is reliable

internet access (Duipmans & Pires, 2012).

BPaaS is useful in accommodating fluctuation of business needs as it can scale on-

demand when a firm faces a peak workload. “Because of its innate configurability usable across

various business areas and its interaction with various foundational cloud services such as SaaS,

the service or security of a business can significantly apply its cloud foundation to scale to

accommodate huge fluctuations in business process requirements” (Hedhli & Mezni, 2020).

Other areas that the application of BPaaS is useful to include its ability to eliminate the need of

firms to perform costly integrations of disparate financial systems, immediately implement a

standardized reporting format for all acquisitions, and instantly establish industry-based standard

security and data regulation compliance.

An instance where the efficiency of BPaaS is realized involve digital banking where its

models are used in reducing complexity. The service enables banks in outsourcing back-office

business processes to a service provider thus enabling banks to focus on clients. By having its

own service software or banking software, the service providers can use their cloud delivery

model to undertake more complicated processes, drive automation, and standardize all processes

on a vast scale. The flexibility of the model enables banks to receive highly reliable and secure

service thus enhancing business efficiency.

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Reference

Duipmans, E., & Pires, D. L. F. (2012). Business process management in the cloud: business

process as a service (BPaaS). University of Twente.

Hedhli, A., & Mezni, H. (2020). A DFA‐based approach for the deployment of BPaaS fragments

in the cloud. Concurrency and computation: Practice and experience, 32(14), e5075.

Lynn, T., O’Carroll, N., Mooney, J., Helfert, M., Corcoran, D., Hunt, G., & Healy, P. (2014).

Towards a framework for defining and categorizing business Process-As-A-Service

(BPaaS). In 21st International Product Development Management Conference.