What is Business Process Management (BPM)
“Business Process Management (BPM) aligns to the delivery of business objectives in terms of organization goals, services, or products that customers or clients need, through the management and improvement of a several sets of activities that are carried out.”
Focusing on delivering business value on the day-to-day operations, BPM is a discipline that entails the continuous:
1. Analysis – Identification of current or prospective business processes that describe how people work together to achieve business goals. In other words, what is done or should be done.
2. Modeling – In workflows design, automated or human activities can be added with their requirements and conditions. The logical mapping of all above elements affects and plays important role in a business process.
3. Execution - The execution of process model that involves systems and people.
4. Monitoring - Real-time monitoring of business activities, tracking of business processes flow and collection of reporting data.
5. Maintenance - Evaluation on the collected data to anticipate defective situations and avoid bottlenecks.
6. Optimization - Improvements based on the process performance.
of an overall business process, not only a specific part of it. Process designers go through the above stages for newly created processes that should deliver business value or go straight to the 2nd stage onwards to re-design workflows and bridge any gap.
To reach the upper level of a) meeting stakeholders’ requirements, b) adapting to shifting environment and c) making business process effective and efficient, you have not to stop the evaluation of this business process.
BPM is a non-stop activity that integrates employees, customers, partners, information and systems, which should collaborate to deliver beneficial results. Business Process Management formulates strong connections between cross-functional business processes.
Starting with BPM, should be clear that a system can not perform Business Process Management on its own. BPM system supports people on increasing operations transparency, collaborating effectively, maximizing profits, and reducing costs. Without Business Process Management, organizations are experiencing difficulties on adopt on the new trend of Digital Transformation.
Types of business processes
Business process automation is fundamental to make your business run and succeed. As technology evolves rapidly and businesses adopt the new operation improvement techniques, it is essential to understand in depth how these techniques can be also applied to your business by analyzing and categorizing your own business processes.
There are many factors which determine how these processes should be categorized and inter-related to be automated.
Process Categories by type of interaction:
By “process interaction type” we mean the type of interaction with external resources that a process needs to be successfully executed. Those resources can be:
1. Human centric processes:
Processes that require the involvement of people (who will control, check, approve or assign tasks).
2. System centric processes:
Processes that require integration and/or interaction with external applications (to import, use or export data for analysis etc.).
Process Categories by importance:
There are four main process categories and the first step is to identify in which of these categories each process belongs:
Primary Processes (or core operational business processes) are all the fundamental activities executed by an organization as an effort to accomplish its mission. Those processes are customer oriented as their main characteristic is that they directly add value to the customer.
- Sales Logistics
2. Support Processes
Support Processes (or secondary processes) are support oriented which means that they provide support to the execution and completion of the core processes. Although this kind of processes do not generate direct value to customers, they are also very important as their existence in the operation’s lifecycle can be strategic for the effective execution of the core processes.
- Information Systems
- HR Management
- Technology Development
3. Management Processes
Management processes are a part of the general strategic management of the business operations. They are also not customer-oriented and they have one single goal: to ensure that core and support process are meeting their objectives.
- Analysis & Evaluation
4. Quality Management Processes
Quality Management Processes analyze, control and improve all kind of business process to achieve maximum effectiveness in decision making of a business environment.
- Quality Control
- Quality Assurance
- Process Improvement