Understanding Business Process Management
Last Updated April 29, 2022
When businesses need to make their processes more efficient, they often use Business Process Management. BPM is a method for breaking down the steps involved in a business process and then regulating those steps to achieve maximum efficiency. Examples of business processes can include completing a customer order, shipping items or opening a new customer account.
BPM is a way businesses can analyze a set of tasks and control the overall processes that are involved in completing an organizational goal. One of the primary objectives of BPM is to enhance business performance and agility through the use of tools, techniques and best practices.
Businesses can deal with numerous inefficiencies which can lead to problems such as unnecessary costs, poor quality and low customer satisfaction. By utilizing BPM and carefully analyzing processes, businesses can discover which areas need improvement. Applying BPM can help increase quality, production and efficiency by cutting out unnecessary procedures and improving vital processes.
Components of Business Process Management
In its most basic description, BPM means understanding business processes to ensure they run efficiently and are continuously improved. There are three main components of BPM: management approach, methodology and technology.
In order to meet market demands and produce valuable goods and services, a company’s management team typically defines processes, classifies measurements, tracks performance and goals and works to improve processes.
BPM is also a methodology that involves the steady cycle of improving business processes. It helps businesses advance business practices by means of phases, activities and techniques.
BPM technology often includes software that can map and record business processes to enhance analytics and communication. This technology helps automate activities and track business projects and performance. In essence, BPM technology helps businesses have a clear understanding of various processes within the company in order to boost performance, quality and efficiency.
Dynamic Business Process Management
BPM technologies traditionally follow a specific set of guidelines. In order to complete a process, a particular set of steps have to be followed. For example, the set of steps a company may use for paying an employee could look like the following:
(1) An employee completes an expense claim form.
(2) A manager approves the form.
(3) A senior manager approves the form.
(4) The form is sent for payment.
(5) A check is cut for the amount claimed.
(6) The check is sent to the employee.
Dynamic BPM systems are ways in which managers or users can make adjustments to the usual set of steps and make decisions based upon a given situation. If a step needs to be added or removed, dynamic BPM allows for changes to the process.
Agile Business Process Management
Agile BPM generally utilizes the Agile software development lifecycle management methodology (SDLC). Instead of testing after many steps, Agile SDLC allows developers to complete tasks in small phases and test processes before moving on to the next step. Agile BPM relies on prototyping and strong communication, which is meant to keep processes organized and efficient.
Social Business Process Management
Some businesses are starting to use social media platforms as a method for employee communication. Companies can implement the social aspect of BPM by utilizing popular social media sites, like Twitter, Facebook and LinkedIn. Other companies are building their own communication abilities within their BPM systems in order for collaboration among their businesses.
