What is Business Process Management?

Business Process Management

Business process management is defined as, employing processes to invent, model, quantify, improve and optimize business strategy and processes. While it is sometimes confused with task completion and project management, its scope is broader than any other topic. 

Task management mainly focuses on individual tasks whereas BPM observes the whole end-to-end process. Project management refers to a one-time scope of work while Business process management focuses specifically on processes that are repeatable. 

Through continuous process restructure, organizations can smooth their overall workflows, leading to increased efficiencies and cost savings. This concept isn’t new; six sigma and lean principles are examples of BPM methodologies.

Types of business process management:

There are mainly three types of BPM. 

  • Human-centric management:

This type centers around human involvement, typically where human approvals are necessarily required. Intuitive user interfaces with drag-and-drop features allow teams to assign tasks to different roles, making it easier to hold individuals accountable along the process.

  • Integration-centric management:

Unlike human-centric, This type of BPM focuses on processes that do not require much human involvement. These processes are more dependent on mechanisms and APIs which integrate data across systems, like human resource management (HRM) or customer relationship management (CRM).

  • Document-centric management:

This type of BPM centers around a particular document, such as a contract. When companies purchase a service or product, it needs to go through different forms and rounds of approval to develop an agreement between the client and seller.

Business process management lifestyle:

A victorious BPM system starts by defining the stages involved in a workflow. This helps the team to work and identify areas of improvement and metrics to track the business’s progress. By applying business process management, organizations can automatically improve their operations, leading to better business outcomes. To achieve these results, you should fully understand the BPM lifecycle. Here are the five lifecycle steps:

  • Process design:

The team should start by tracing the milestones within the process. From there, individual tasks within the overall BPM process should be taken care of and identified along with task owners for each step in the workflow. The steps should be clearly defined so that the team can identify the areas for process optimization and the subsequent metrics to track its improvement. 

  • Model: 

During this step, the team should create a visual representation of the process model for business. This should include essential details, such as deadlines, task descriptions, and any flow of data in the process.  Utilizing business process management software is helpful during this stage.

  • Execute:

The team together should conduct a solid proof of concept, testing the new BPM system with a limited group. After incorporating any feedback, the team can begin to roll out the process to a wider audience.

  • Monitor:

During this part, the team should monitor the process, measuring improvements in efficiency and identifying any additional hold-ups.

  • Optimize:

At the final step, the team can make any final adjustments to the process to smooth and improve business activity.

Benefits of Business process management:

  1. Enhanced employee and customer experience.
  2. Increased efficiency and cost savings.
  3. Greater Transparency.
  4. More scalable process.
  5. Less dependency on development teams.

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The views expressed in this article are those of the authors and do not necessarily reflect the views or policies of The World Financial Review.