Business Process Management: Understanding and Implementing

If yours is a business with several departments, atThe benefits of BPM adoption are enormous:
one point you start to realize that in order to stayDirect
competitive, increase productivity and bring efficiency- Update processes in real time
to your business, you need to optimize and- Reduce overhead expenses
automate some of your business processes. To- Automate key decisions
identify which parts of your business activities are- Reduce process maintenance cost
required to be optimized, first you need to have a- Reduce operating cost
clear understanding of the processes involved in your- Improve productivity
particular business.Indirect
What is a Business Process?- Improve process cycle time
A business process is a series of specific, measured- Improve forecasting
tasks performed by people and systems and- Improve customer service
designed to achieve a predetermined outcome. The- Improve sourcing time cycle
processes have these important characteristics:How to figure out which of the business processes
you need to automate?
1. The processes have internal and external users.Companies are using BPM systems to automate
2. They take place across or between organization'svirtually every aspect of their businesses. A company
departments or different organizations.for example might have priorities to automate their
3. They are based on how work is done in thesales activities, requisition process, procurement
organization.process, warehousing, call center, etc. However, the
The business processes have three key elements -focus initially should be given on those areas that
Entity, Object, and Task.meat the following criteria:
Entities: Where the process occurs.- The business process should be crucial for
Objects: The processes are results of handlingproductivity improvement
objects. Objects could be physical or informational.- Savings from automation is clearly visible
Tasks: Works done to handle the objects.- Return on Investment from implementation is high
The followings are examples of business processes:and preferably immediate
Mortgage application processingSince your business has unique characteristics which
Credit verificationdiffer from others, you might have business
Product developmentprocesses that have exceptional business rules.
Travel planningNormally, this type of business processes need
Opening a new accountmaximum attention and substantial resources.
Answering to a Request for QuoteBusiness Process Management tools are great in
Shipping a producthandling exceptions. Use BPM systems to streamline
Companies are trying to improve their businessthese processes.
processes using computer technology starting everWhat are BPM Systems?
since the computer technology has emerged. InitialBPM Systems are applications that help organizations
emphasize was given to enterprise resource planning.to automate their business processes end to end
Main areas where automation was adopted werefrom a workflow task to process outcome so that
production, accounting, procurement and logistics. Thethey can reduce process costs, improve productivity
next step was sales and marketing automation. Nextand bring efficiency to their business.
came customer relationship management and supplierA successful implementation of BPM systems requires
relationship management. Last couple of years weclear understanding of organization's business
are seeing implementation of Business Processprocesses, business rules, and willingness of the
Management across the board. Companies aremanagement and workers to embrace new way of
adopting BPM in the areas where it could make realdoing business.
differences. Some of these processes involve severalYour Enterprise Portal can be the BPM platform you
departments of the company and some are result ofneed
real-time interaction of the company with itsYour company Portal is the access point for your
suppliers, customers and other business partners.customers, vendors, business partners and staff to
Interest in BPM is growing really fast, according to acompany information and services. A typical company
report from Forrester Research, one-third ofPortal is an integrated website of Intranet, Extranet,
organizations surveyed by the firm are currently usingRepositories, Procurement and Sales Systems,
or piloting BPM, a dramatic increase compared withCustomer Relationship Services, etc. Today,
mid-2002, when just 11% were trying BPM.advanced Portals are also integrating Business
What is Business Process Management (BPM)?Process Management Systems, which enables
BPM automates and streamlines the businessautomation of workflows that model end-to-end
processes which are crucial for the organization inbusiness processes.
order to improve productivity. From hiring a person toIn any business process the owners of the process,
processing a purchase order, BPM helps restructuring,the users and the objects interact at many levels,
controlling and handling workflows involving peoplesuch as starting a process, monitoring the process,
and systems to complete a process more efficiently.doing a task, creating new activity, approving a task,
To use BPM effectively, companies must focus onetc. In order to reflect the business processes, their
the outcome of the process and design workflowsprogress and interaction with users and owners, a
based on the expected result from the process.dashboard is used. You can easily integrate any
There should not be any difference between a taskbusiness process into your company Portal and
done by computer systems or people. BPM should bedisplay needed workflows, notifications, charts,
able to map the interaction among the entities,performance indicators as a dashboard on it.
objects and tasks and bring them inline with theConclusion
process workflow. Business rules used in the processInvestment in BPM is the same as any other
also should be clearly defined. While trying totechnology related investment. If you plan the
automate a business process you have to keep inproject properly, set a clear goal, educate the people
mind that finding a process which should bethose who have to change their mindset once the
streamlined is not that difficult! Problem occurs whensystem is implemented and get necessary support
you try to define which entities are involved and howfrom the management, you can count on a massive
the evolved method will distribute the previous rolesreturn on your investment.
among the new tasks owners.