Businesses looking for ongoing growth and scalability try to achieve these goals through different approaches that can provide “that extra advantage.” One such approach is business process management, which aims to find and make ongoing improvements in the operations of a business. This is currently a popular tactic in the business world, featuring various applications, techniques, and tools which make it a complex field of business development.
In my role at EC-MSP, we've helped countless businesses improve operations via Business Process Management and learned a lot over the years about how Technology and IT maintenance are chief components of BPM, as we’ll explore further below.
The BPM discipline looks for new ways to improve existing business processes, going through a pilot stage, and reviewing effectiveness before developing the finished process to be used. BPM differs from project management or task management in that it concerns workflows that are repeated, rather than unique projects. However, all of these approaches are aimed at improving the outcome of the project or process. In BPM, processes may be variable or structured to a greater or lesser extent.
Technology is key to business process management, especially where automation is concerned. The different technologies used could include robotic process automation (RPA), artificial intelligence (AI), cloud computing, analytics, or the internet of things (IoT). However, BPM does not necessarily involve the use of technology and maybe solely focused on the development of business processes and delivering value.
One of the main differences in the approaches taken to BPM is the level of human involvement.
Business Management Process Suite is the term given to the range of technological tools aimed at supporting BPM projects. It is a software suite with the infrastructure technology for the operational needs of a particular environment. Such tools are a way of automating business processes, but they are not the same as BPM itself.
An alternative to BPM is the Lean Six Sigma methodology, which is a combination of the Lean and Six Sigma methodologies. Also aimed at improving business performance, Lean Six Sigma takes an analytical approach for removing waste and redundancy and improving customer satisfaction.
There are many advantages that have driven the move towards BPM for public and private organizations of all sizes. These can be summarized by the following points:
In markets undergoing high levels of change, businesses need to modify their processes to keep up. BPM is the discipline that allows them to pause operations, implement new processes, and then continue without issue. This allows an organization to be more adaptable and responsive to unstable or unforeseen situations.
The integration of business processes from start to finish means that those processes can be closely monitored, and delays can be kept to a minimum. Process owners can be notified as to the status of the process, so bottlenecks can be avoided. BPM also enables automation and optimization of processes, which means redundant tasks and the possibility of human error can be eliminated.
For all businesses, there are government and industry regulations that need to be followed. Failing to do this can result in considerable fines and penalties. BPM practices can help organizations keep up with their regulations and standards. This is achieved by informing the appropriate employees and correctly documenting procedures for meeting the requirements of compliance.
In a 2018 survey, half of the organizations gave cost reduction as the main reason for BPM adoption. Processes can be mapped in terms of costs, duration, resources, and frequency, after which it is easier to identify where costs can be reduced. BPM solutions can also eradicate system congestion, and lead times for product sales can be reduced, which in turn leads to increased sales and revenues.
BPM can help simplify administrative processes and remove repetitive and time-consuming tasks. This leaves employees free to focus on the core aspects of their roles, and in a better position to identify areas of potential growth.
Process automation is able to keep organizations informed on business process functions and performance, without the need for additional methods of monitoring. This level of transparency leads to improved management and easier adjustment of structures and processes when outcomes are tracked.
An excellent benefit of BPM is that it enables improvements that are continuous (rather than kept in place) until they are reviewed. This means processes can be adjusted, added to and optimized, and are subject to continual change. There is always the potential for new developments that will lead to growth.
BPM provides the opportunity to follow the outcomes of new processes that have been implemented. This could relate to the cost benefits or time savings, and these can be continually monitored. This reporting of outcomes can also be automated as another streamlined process.
Detractors of the BPM approach claim that it is a structured system that restricts innovation, and therefore is not suited to periods of rapid change. However, when carried out correctly, BPM allows businesses to maintain their place in the market while also developing in new areas.
An important factor in the success of BPM is the way that business and IT can integrate to overcome challenges in every department. Companies then need to define those challenges and review every process in terms of its objectives. For each process, it is also necessary to identify:
The most common areas of BPM application include human resources, employee or client onboarding, customer service, supply chain, and finance and purchasing.
Tools that can be integrated into BPM practices for the purposes of analysis include:
There are a number of organizations for networking and governance within the BPM field. These include the Workflow Management Coalition (WfMC), the BPM Institute, and the Association of BPM Professionals (ABPMP). Additionally, the International Conference on Business Process Management takes place once a year. The ISO/IEC 15944 is an international standard that governs the best practices in BPM.
Developing the best strategy to take is case-specific, however, but can be aided by the assistance of expert IT consultancy. It should take into account both business and IT policies, as well as the objectives of each process. BPM needs to take a holistic approach that considers the bigger picture, so implementations are not disjointed and disorganized.