Let’s Know About Business Process Management

BUSINESS PROCESS MANAGEMENT

Business process management (BPM) is a systematic and business solution approach to make an organization’s workflow, more efficient and more capable of adapting to an ever-changing environment. It allows all the processes to run smoothly and effectively. It is a way that leads to the “process optimization”. BPM views a business as a set of processes or workflows or we can also say that it is a set of activities that are to be performed for the overall development of the firm. BPM Software is software which enables businesses to model, implement, execute, monitor and optimize their processes.

The goal of BPM is to reduce human error and miscommunication and focus stakeholders on the requirements of their roles. BPM is a subset of infrastructure management, an administrative area concerned with maintaining and optimizing an organization’s equipment and core operations. For running this infrastructure we require some BPM tools that are as follows:

1. Planning and budgeting
2. Key performance indicators (KPIs)
3. Balanced scorecard (BSC)
4. Benchmarking
5. Business excellence model
6. Enterprise risk management (ERM)
7. Six sigma
8. Performance dashboards
9. Customer relationship management (CRM)
10. Performance appraisals

These are the tools or sub-system components residing within BPM, that plays a major role in the organization development.

BPM SOLUTIONS

Horizontal BPM Solutions:

These are those BPM solutions that can be applied across several industries. Horizontal frameworks deal with design and development of business processes and are generally focused on technology and reuse.

Vertical BPM Solutions:

BPM solutions that are specific to a particular industry or type of process. Vertical BPM frameworks focus on a specific set of coordinated tasks and have pre-built templates that can be readily configured and deployed.

BPM Life Cycle

The BPM life cycle follows a chain of steps that are as follows:

Design

Process design encompasses both the identification of existing processes and the design of the processes. Areas of focus include representation of the process flow, the factors within it, alerts and notifications, escalations, standard operating procedures, service level agreements, and task hand-over mechanisms. What processes should be present or what process are not required are to be done under this stage.

Modeling

Modeling takes the theoretical design and introduces combinations of observations that are needed for the further steps. It determines how the process might operate under different circumstances.

For example-”What if I have 70% of resources to do the same task?” “What if I want to do the same job for 80% of the current cost?”..

Execution

It takes care of, how these applications rarely execute all the steps of the process accurately or completely. Another approach is to use a combination of software and human intervention; however this approach is more complex, making the documentation process difficult. Business rules have been used by systems to provide definitions for governing behavior, and a business rule engine can be used to drive process execution and resolution.

Monitoring

Monitoring encompasses the tracking of individual processes, so that information on their state can be easily seen, and statistics on the performance of one or more processes can be provided. An example of this tracking is being able to determine the state of a customer order (e.g. order arrived, awaiting delivery, invoice paid) so that problems in its operation can be identified and corrected.

In addition, this information can be used to work with customers and suppliers to improve their connected processes. Here Business Activity Monitoring (BAM) extends and expands the monitoring tools generally provided by BPMS.

Optimization

Process optimization includes retrieving the best of the process performance. It is the most important phase of the life cycle of the BPM as the main goal of the BPM is to get optimized processes.

Reengineering

When the process becomes too noisy and optimization is not fetching the desired output, it is recommended to re-engineer the entire process cycle. Business Process Reengineering (BPR) has been used by organizations to attempt to achieve efficiency and productivity at work.

Business Process Management – Faster Market Access to Beat the Competition

An efficient Business Process Management is crucial for any business and its progression. BMP is very rewarding for conducting business gainfully. The negative aspect of conducting business is that they tend to have a rigid framework. A very helpful feature of BPM is that you can modify it to suit changes that are bound to keep taking place in any business. It is sad that many businesses refuse to accept any changes in the mode of operations and as a result, their business processes gradually get outdated and they suffer financially.

Process management calls for a change of thoughts concerning business activities. Rather than considering manufacturing, sales and logistics as separate functions, you should treat them as continuous processes that go beyond departmental boundaries. BPM software provides businesses with methods that help imposing business rules, and it automates and organizes operational activities and allocates everyday jobs and goals without any ambiguity.

Overall, Business Management stresses automation of business processes, their integration with business applications and data. The employing business management software enables businesses to summarize business processes and technologies. It goes beyond automation of processes and determines business slip-ups. Business management enables users to take action as per changing requirements of clients and market, thus getting faster market access than others to beat competitors.

Business process management is among the recent technologies that ensure to maintain a combined set of ideas and aims. It incorporates automation and improvement of utilities of process activities and assignments. It also helps to define business objectives, which is not to just to increase productivity but also to have better control over production and its quality. Being efficient means maximizing output while devoting more time for performing business tasks that need priority.

Not losing focus of business management technology enables businesses to enhance their skills necessarily needed for modernizing and invigorating their processes and performance to deliver the values insisted upon by the current markets. Process-managed ventures generate responsive course improvements set in six-sigma quality, and reduce shared costs over the value chain.

Most organizations increase their procedures using Business process management, to endeavor to achieve the goals set by them. BPM software, while helping to uphold the company’s standard existing, procedures, embolden to support the management objectives pertaining to the comprehensiveness, ownership, measurement, documentation, and assessment of its values.

Employees of the company also endeavor to enhance the processes by a sensible use of Business process management, with the ultimate aim of achieving their primary objectives. Small and mid-cap organizations use BPM to bolster their existing processes. A main drawback however is the ignorance about the proper implementation of the Business Process management techniques, because of which, the companies apply its principles only in an arbitrary manner.

Business Process Management Across the Extended Enterprise: An Overview of Web-Based Software

Companies are seeking business process management solutions in a time when the traditional boundaries of their organizations have become increasingly porous to include suppliers, partners, and customers as integrated parts of their operations. At the same time, web-based software has continued to evolve in its capabilities and reach, and companies have increasingly adopted cloud-based services located outside the corporate firewall.

There are considerable benefits from extending business process management capabilities outside the boundaries of the company, and clearly measurable value is much easier to quantify when stakeholders are outside the traditional walls of the business.

For the purpose of this article, external stakeholders are considered to be suppliers, partners or customers who can have a meaningful impact on the performance of a company. These benefits are directly measurable in terms of supplier service level agreements, partner opportunities, and customer contract values. Establishing web-based software portals for the extended enterprise does come with challenges but the value significantly outweighs the costs.

Business process management can be relatively simple but still produces definable impacts on a company’s performance. Requesting and approving a simple task through relevant levels of authority might not be a complex process in itself, but moving this to web-based software involving a supplier directly produces clear gains in efficiency, reporting, and engagement.

1. Challenges

1.1. Delivery

The first challenge for many businesses is simply reigning in a delivery mechanism. Web-based software needs an accessible URL for all parties, but as businesses continue to embrace stakeholders from outside their traditional boundaries, portals need to be in place that meet the company’s security requirements and yet provide convenient access for users who – from a traditional IT perspective – might conceivably represent a security threat.

The solution in which this type of business process management system resides should present relevant messages by way of easily accessible information, news systems, and opportunities for dialogue through web-based software tools, such as blogs. These tools are designed to increasingly engage with users and unearth further value outside of the immediate process.

1.2. Maintenance

The information within this type of business process management module needs to be accurate, timely, secure and simple to maintain. Incorrect or inappropriate information is worse than no information at all.

Web-based software maintenance can carry a large risk. Sometimes, customers will put in place multiple, isolated portals that are each fit for a purpose, accepting the maintenance issues in the short term, but then losing focus over time so that the embedded information becomes low quality, out of date, or even incorrect.

2. Examples of Business Process Management

For the purpose of this discussion, recently implemented business processes which delivered real value are provided as examples below. Actual client names have been protected in all cases purely for confidentiality.

2.1. Public Facing: Authorizing the Use of a Brand

A business process management system that controlled the important access to the client’s brand needed to be implemented for a major public sector client involved in minimizing energy footprints.

Control of branding – including appropriate use of logos – was essential to this organization. A relatively simple process was established that identified what kind of relationship the supplier had to the customer. The web-based software then identified what the branded material was required for and provided direct and automated access where authorization was deemed appropriate.

Surrounding information was provided by menus and content that directly accessed the large corporate public website, with no requirement for duplication and no risk of errors or maintenance concerns. In fact, business process management that previously required a dedicated full-time team now dealt with 90 percent of requests automatically, with reports and dashboards providing real time information to the marketing team.

2.2. Partner Facing: Partner Certification

Working with a global supplier of connections and cabling, a business process management solution was implemented to certify new partners. Partners are extremely important to this global company, and providing an efficient certification process within web-based software was critical to maintaining global reach without compromising quality.

Using portal-based permissions was essential, as partners required access to numerous processes including certification. Which processes partners had access to depended upon various factors including their status as a partner and their country of origin.

Business process management protocols were embedded in a single content- and document-based information layer to provide one location where global partner managers could inform and engage with their customers in a secure and permission-based environment.

2.3. Customer Facing: Risk Identification

An insurance company needed web-based software that supported a client portal in order to specifically allow client staff to report any risk that might lead to an insurance claim.

The process was embedded in a portal together with custom applications and a rich information layer that allowed the client to describe potential risks and relevant insurance solutions consistent with the brand and matching the requirements of marketing and sales.

2.4. Supplier Facing: Simple Task-Based Cooperation

Often, various suppliers require task-based business process management solutions on web-based software, such as an extranet. The extranet facilitates identifying time requests that have not been addressed within a reasonable service level agreement, observing what the overall status is, and creating dashboards on an intranet that provide live status information to other managers not directly involved in this simple process.

3. Benefits

Business process management that reaches out to the extended corporation should be seen in the important context of offering engagement and messaging opportunities to users and companies.

The benefits gained through web-based software may seem to be outside the strict boundaries of the remit of a single business process, but when one treats a process as an isolated event within the company’s relationship with customers, partners and suppliers, one misses a significant opportunity to engage with key stakeholders.

In all the cases mentioned above, business process management extranets were able to be implemented which provided the required processes, appropriate security levels, correct information access, and the assignment of a branded user interface on an individual user basis.

Web-based software ensures that in addition to the value presented by each process, the engagement with key stakeholders is optimal, low maintenance, highly visible to appropriate staff, on-point, and timely.