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08 Dec 2023

Series: BPM (Business Process Management), Fundamentals And Implementation Concepts

Series: BPM (Business Process Management), Fundamentals And Implementation Concepts – Do you know what a BPM is? What is it for? Do you need it in your company?

If something has been revealed in the business world, it is that globalization demands more and more organizations in their ability to react to changes. The ability to deal with them and adapt their offerings is part of the value they deliver to their customers.

The value must be justified by greater business agility and better levels of efficiency. It is no longer enough to be an efficient company; it must be able to adapt to frequent changes (flexibility). And for this, it is necessary to implement and maintain the company’s processes correctly: audits, tasks, creation of interfaces and forms, reports, etc.

This post focuses on the term business process management, its fundamentals, and implementation concepts.

Definition Of BPM ( Business Process Management )

It is a work methodology oriented to process management that allows organizing and controlling the activities of a company’s employees. BPM implies following a series of steps or actions that modify the way of working to facilitate collaboration between them. Its ultimate goal is to improve the performance and optimization of a company’s processes.

The main characteristics of a BPM system are:

  • Business process modeling. It allows using a BPM to design end-to-end value chain processes regardless of the departments, tasks, or projects involved, both internal and from other organizations.
  • Monitoring of processes and users (KPIs). It provides power and versatility by sharing information on the status of operations and the use of resources, detecting bottlenecks and inefficiencies in work teams.
  • Data capture, management, and analysis. You must capture, manage and analyze data related to the company’s processes that allow you to feed analysis actions.
  • Collaborative features. Functions are available to manage other employees’ absences, delegations, or assignments, as long as the role and hierarchy are compatible.
  • Easy document management. Process management generates a quantity of documentary information associated with and stored in the BPM manager or external document systems.
  • Some employees require the flexibility to make regular trips out of the office. Therefore, the BPM system should be available in mobility (smartphones and tablets).
  • Generate a knowledge store. The memory of the actions carried out, who has intervened, what documents have been handled, or what decisions have been made become in the repository of the BPM system.

Now that you know the main features of Business Process Management or Business Process Management, it is time to delve into its fundamentals and evolution.

Fundamentals And Concepts Of BPM Implementation

The idea that business activities can be developed as a process is not new. At the beginning of the 20th century, Friedrick Winslow Taylor developed the concept of Scientific Management based on the principles of standardization of processes in industrial production.

In the mid-90s, the well-known ERP (Enterprise Resource Planning) appeared to solve companies’ management problems. However, these systems were not as efficient as expect, so improvements continue to be made. It was not until the late 1900s and early 2000s that CRM (Customer Relationship Management) systems were develop to improve customer service.

Process engineering continues to evolve towards the current BPM, from the first approaches of Frederick Taylor in 1911 to the overproduction of 1990 and the arrival of ERP and CRM. With the entry into the 21st century, companies began to pay more attention to business process management.

What Distinguishes These Systems From BPM

A straightforward idea. ERP and CRM fundamentally orient toward data capture, while BPM is orient toward process management. Let’s give an example to clarify it.

Suppose we have made a purchase. In the ERP, we would enter the supplier’s data, the product and model, the price of the acquisition, and the agreed way of paying it. On the contrary, the BPM would be in charge of managing the participants in the purchasing process: someone decides what is need, another identifies the most qualifie suppliers, another assesses the offers receive, another confirms the purchase, and another manages the payment forecast.

And so, do they live parallel lives? In a way, yes. But with one crucial caveat, they share corporate data (budgets, suppliers, employees,…). And according to the example described, it would be the process that would automatically enter that data in the ERP.

The Evolution Of Global Markets Requires Agile Methodologies

The efficiency of a company depends on proper process management. And for this, management applications develop quickly, adjusted and adjustable to each business’s specific needs.

Saving time without compromising quality should be a priority for every company. Markets evolve, and evolution drives work with agile methodologies, and these methodologies improve quality, satisfaction, engagement, and productivity.

What type of BPM does your company need? Are you one of those who believe in correct process management to achieve success?

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