| ey to efficiency in any business or organization is its | | | | the organization's overall practices, policies and |
| processes. By processes, we mean the steps and | | | | methods of operation. |
| actions that must occur for a particular outcome to | | | | Solving business problems |
| be achieved. When those processes go wrong, occur | | | | Put simply, BPM solves business problems by |
| too slowly, or simply don't work, the business or | | | | improving business processes. This is done using a |
| organization does not succeed. | | | | four step method: |
| Just as processes are the heart of every business or | | | | • Map an existing process or design a new |
| organization, business process management (BPM) is | | | | process |
| the heart of making those processes work efficiently. | | | | • Execute the process by making the most |
| Understanding the basics of BPM is the first step in | | | | of people and applications |
| learning how the concept can transform your | | | | • Manage the process by managing |
| business. | | | | information flow as well as specific actions and |
| BPM applications | | | | activities |
| Business process management is generally described | | | | • Analyze performance and metrics to feed |
| in terms of three different levels of application: | | | | continuous process improvement |
| • Software | | | | Let's look at a practical example of how BPM solves |
| • Suite | | | | business problems. |
| • System | | | | Practical application |
| Each level brings the concept of BPM to bear in a | | | | Consider the case of a small retailer that consistently |
| different way, expanding in depth and breadth of | | | | receives complaints from customers regarding poor |
| BPM as it spreads further and further throughout an | | | | customer service. With a bit of investigation she |
| organization. Let's take a look at each level in turn. | | | | discovers that employees are not receiving the |
| Software | | | | training they need to be knowledgeable about the |
| This level uses software tools to improve business | | | | most in-demand products. To solve this problem she |
| processes. It allows the business to automate | | | | takes a BPM approach. |
| processes, execute them more efficiently, and | | | | The first step is to map the training process. With |
| monitor progress toward the desired outcome. BPM | | | | input from employees, she creates a flow chart that |
| software brought a dramatic shift to process | | | | shows how product information flows into the store |
| management because for the first time, information | | | | and is disseminated to employees. The mapping |
| could flow freely between applications as well as | | | | exercise shows that product training is conducted on |
| between applications and people. | | | | the sales floor at the beginning of each shift. Training |
| BPM software is generally used for simple, | | | | time is short and because it takes place right on the |
| uncomplicated processes within a single group or | | | | sales floor, sessions are often interrupted to take |
| department. It automates manual processes and | | | | care of customers. |
| streamlines inefficient processes, while allowing | | | | The retailer decides to improve the process by |
| comprehensive tracking and analysis of execution. | | | | conducting training in the back conference room |
| This information can be used for audit purposes and | | | | fifteen minutes before employees are due on the |
| as a driver for continuous process improvement. | | | | sales floor. She assigns a floor supervisor to run the |
| Suite | | | | training sessions and collect feedback from |
| This level allows a business to apply BPM practices | | | | employees on how well it works. |
| across multiple departments or groups. Because most | | | | At the end of two weeks, she analyzes the sales |
| processes inevitably cross departmental lines at some | | | | performance and notes it has improved dramatically. |
| point, BPM improves efficiency and performance by | | | | She also notes that employees feel they are better |
| streamlining inter-departmental connections. | | | | informed than before, but would still like periodic |
| Through the use of a work portal, multiple users can | | | | opportunities for more in-depth training, especially |
| contribute to the process by sharing knowledge, task | | | | when new products are introduced. This analysis |
| management, documents and more. | | | | prompts her to introduce monthly two-hour training |
| A BPM suite is generally used to help a business build | | | | sessions that feature product demonstrations and |
| composite applications that quickly and easily allow all | | | | interaction from manufacturer representatives. |
| users to view a process from start to finish, | | | | This is a simplistic example of business process |
| regardless of where they touch or affect that | | | | management, but it effectively illustrates the basic |
| process. | | | | steps that make up BPM, whether at a software, |
| System | | | | suite or system level. |
| This is the highest level of BPM application, designed | | | | Summary |
| to apply process management concepts across all | | | | Business process management allows a business or |
| aspects of an organization. It is a management | | | | organization to improve and streamline processes to |
| practice that allows a business to use BPM concepts | | | | increase efficiency, improve performance, and boost |
| as a way to focus expertise, improve business | | | | profitability. It can be applied to a single process, to |
| structures or culture, and manage activities in a | | | | single or multiple processes that cross departmental |
| comprehensive manner. | | | | lines, or to overall business management practices. |
| A BPM system takes a holistic view of the | | | | The results can transform a business from just good |
| organization and helps to bring structure and | | | | enough to peak performance – all by paying |
| consistency to process management. The focus is | | | | attention to processes. |
| not just on software and IT applications, but also on | | | | |