Relation between business process management maturity and innovation in the financial sector

Abstract

To survive in the increasing globalization competition, companies are required to continuously increase their productivity and enhance innovation. To realize this enhanced productivity, Business Process Management (BPM) maturity models are often used to analyze, improve and manage business processes across the organization. Literature suggests that a relation between BPM maturity and innovation could exist and recommends more research in specific sectors. Specifically, the financial sector is facing a fintech revolution, putting an enormous pressure on how they deal with technology innovation, process disruption and service transformation. Therefore, the objective of this research is to determine the relation between business process management maturity and innovation in the financial sector. Data was collected using a survey at a large financial enterprise in Europe, resulting in sixty-eight responses. Regression analysis shows that 20.6% of the variance in innovation can be explained by BPM maturity.