Business Process Management- What It Is and How It Works
In business, "process management" refers to the company's various processes and procedures to produce its products or services. Process management has many aspects, including quality control, resource allocation, and process improvement. Companies can improve their efficiency and effectiveness by understanding and managing these processes.
What Is Business Process Management?
Business Process Management, or "BPM" for short, is a systematic approach to improving the efficiency and effectiveness of an organization's business processes. BPM involves identifying, analyzing, designing, and implementing Business Process Improvement (BPI) projects.
The goal of BPM is to reduce or eliminate process waste, improve quality and service levels, and increase profitability. There are many different methodologies and tools associated with BPM. Some popular ones include Six Sigma, Lean Manufacturing, Kaizen, and Total Quality Management (TQM). When implemented correctly, BPM can have a significant positive impact on an organization's bottom line.
A recent study by McKinsey & Company found that companies who have adopted BPM strategies have seen, on average, a 25% improvement in their overall performance. While BPM can be applied to any business process, it is most commonly used in manufacturing and production. These processes are usually more complex and time-consuming than other business processes.
In addition, manufacturing and production processes typically involve multiple steps and require specialized equipment. As a result, there is a more significant potential for errors and inefficiencies. Implementing BPM techniques can significantly reduce errors and inefficiencies, improving quality and productivity.
BPM is not a one-time event but an ongoing process that should be regularly reviewed and updated. As business processes change and evolve, so too should the BPM strategy. By continuously improving their business processes, organizations can stay ahead of the competition and maintain a high level of customer satisfaction.
What Are The Business Process Management Tools?
Business Process Management tools are software that helps businesses automate, monitor, and optimize their processes. By automating processes, businesses can improve efficiency and accuracy while reducing costs. Business Process Management tools can manage any process, from simple tasks to multi-step processes.
These BPM tools can be used to automate a wide variety of business processes, including:
Order processing
Accounts payable and receivable
Human resources
Customer relationship management
Business intelligence
Data warehousing
Various Business Process Management tools are available on the market, each with unique features and benefits. Some of the most popular Business Process Management tools include:
1. ProcessMaker
ProcessMaker is a business process management tool that helps organizations automate and optimize their business processes. It is an easy-to-use, web-based platform that enables organizations to design, execute, and monitor their business processes in a single system.
ProcessMaker streamlines business processes by automating manual tasks, reducing paper documents, and eliminating errors. It also provides real-time visibility into the status of all processes so that managers can identify bottlenecks and make decisions accordingly. In addition, its built-in analytics capabilities allow organizations to track process performance and identify areas for improvement.
The distinctive quality of ProcessMaker lies in the fact that it provides the following features:
a free and open-source alternative
a solution that is hosted locally
a solution that is hosted in the cloud
2. Zoho Creator
Zoho Creator is a tool that helps businesses automate their processes and workflows. It is a cloud-based platform that allows businesses to create custom applications without coding or programming knowledge. Zoho Creator offers a drag-and-drop interface that makes creating and deploying applications easy. It also offers a wide range of features and integrations that make it a powerful tool for businesses of all sizes.
Zoho Creator is an affordable option for businesses looking to automate their processes and improve efficiency. Overall, Zoho Creator is a valuable business process management tool that can help businesses save time and money.
3. Kissflow
Kissflow helps organizations automate and optimize their workflows. It offers a visual workflow designer, real-time collaboration, and built-in analytics to help businesses improve their efficiency.
Kissflow is a popular choice for businesses looking for a BPM tool because it is easy to use and does not require any programming knowledge. It is also scalable, so small and large businesses can use it.
Kissflow offers many features that make it an effective BPM tool, such as its visual workflow designer, real-time collaboration, and built-in analytics. These features help businesses automate and optimize their workflows, which leads to improved efficiency.
4. Appian
Appian offers a unique blend of features to help organizations automate and streamline their processes.
Appian provides a low-code platform for developing process-based applications quickly and easily. It also offers powerful tools for managing and monitoring business processes. In addition, Appian integrates with various third-party systems to provide a complete end-to-end solution.
Appian is ideal for organizations looking to improve their process efficiency and effectiveness. It is easy to use and provides comprehensive features to support even the most complex business processes.
5. Nintex
Nintex is a tool that helps organizations automate their business processes. It is a web-based platform that offers a wide range of features and tools to help organizations streamline their workflows.
It is a cost-effective solution that can save organizations time and money by automating their business processes. It is easy to use and provides many features to help organizations streamline their workflows.
Nintex is a versatile platform that can be used for various business process management tasks. It is scalable and easily customized to meet an organization's specific needs.
6. Bizagi
Bizagi is a business process management tool that helps organizations automate their business processes. It is a web-based application that allows users to create, execute, and monitor business processes.
Bizagi has been designed to help organizations improve their efficiency and effectiveness in managing their business processes. It provides a comprehensive and easy-to-use set of tools for process designers, analysts, and managers.
Bizagi offers several features that make it an ideal tool for managing business processes. It enables organizations to:
• Model their business processes using Bizagi’s graphical modeling notation.
• automate their business processes using Bizagi’s workflow engine.
• Monitor and optimize their business processes using Bizagi’s performance monitoring tools.
There are still a lot of BPM tools available such as monday.com, Process Bliss, Creatio, Quixy, Wrike, PNMSoft, Pipefy, and more.
Business Process Management tools can help businesses improve their bottom line by automating processes and improving efficiency. When choosing a Business Process Management tool, it is crucial to choose one that fits the business's specific needs.
How Does Business Process Management Work?
Business Process Management (BPM) is a system that helps businesses automate and optimize their processes. It involves using software to streamline and manage workflows, making them more efficient and effective.
BPM can be used to manage any process within an organization, from simple tasks like customer order processing to complex ones like product development or supply chain management. By automating these processes, businesses can improve their efficiency and productivity and save time and money.
BPM software is typically composed of three main components:
Process designer - used to create models of the business processes
Process engine - executes the processes according to the models
Business rules engine - provides a set of rules that can be applied to the process
BPM systems can be deployed in various ways, including on-premise, in the cloud, or as a hybrid solution.
On-premise BPM systems are installed and operated within an organization's IT infrastructure.
Cloud-based BPM systems are hosted by a third-party provider and accessed over the internet.
Hybrid BPM systems are a combination of both on-premise and cloud-based solutions.
Businesses can use BPM to improve many processes, including customer service, human resources, finance, and manufacturing. By automating these processes, businesses can reduce errors and increase efficiency. In addition, BPM can help businesses improve their compliance with regulations and standards.
It is a powerful tool that can help businesses optimize their processes and improve performance. When choosing a BPM solution, it is essential to consider the organization's needs and the software's capabilities. The right BPM solution can help businesses save time and money and improve efficiency.
Steps of Business Process Management Lifecycle
The following are the stages that are considered to be part of the BPM lifecycle: design, model, execute, monitor, and optimize.
Design
Design is the first step of the business process management lifecycle. By understanding the requirements and designing the processes, organizations can move toward BPM implementation.
The BPM lifecycle starts with identifying the business goals. Once the goals are clear, processes are designed to achieve those goals. The design step is essential as it sets the foundation for further implementation.
Organizations must understand their current state and how the new processes will fit. They also need to consider the people using the processes and what training might be required. By considering these factors, organizations can create a smooth transition to BPM.
2. Model
Modeling is the process of creating a representation of the business process. This representation can take many forms, but it is typically a flowchart or diagram showing the sequence of activities involved in the process. The purpose of modeling is to understand and document the process's current state to improve it.
Many different techniques can be used for modeling business processes. The most important thing is to choose a technique that best suits your needs and provide the information you need to improve your process.
3. Execute
After the business process has been designed, it is time to implement or execute it. This is the third step in the business process management (BPM) lifecycle.
There are a few things to keep in mind when executing a business process:
1. Make sure all stakeholders are on board with the process and understand their roles in its execution.
2. Have a clear plan for executing the process, including who will do what and when.
3. Be prepared to make changes to the process as needed during its execution – this is where feedback from stakeholders will be crucial.
4. Monitor the progress of the process regularly to ensure that it is running smoothly and making the desired impact.
5. Be ready to adjust the course if necessary based on feedback or changes in circumstances.
4. Monitor
The fourth step of business process management is monitoring. This step ensures that the processes are running smoothly and efficiently. It also helps to identify any areas where improvements can be made.
Monitoring involves tracking the performance of the processes and looking for any trends or patterns. This information can then be used to change the processes if necessary.
Various monitoring tools and techniques, such as process mapping, process audits, and data analysis, can be used. Choosing the right tool for each situation is crucial to collect accurate information.
Monitoring is essential to business process management and should not be overlooked. By taking this step, businesses can ensure that their processes run smoothly and efficiently.
5. Optimize
Optimization is the fifth and final step of the business process management (BPM) lifecycle. Optimization is the act of making something as practical or functional as possible. In the context of BPM, optimization usually refers to improving processes to be more efficient, accurate, and reliable.
There are many different ways to optimize processes. Some standard optimization techniques include process redesign, process improvement teams, process mapping, and Six Sigma. The best way to optimize a process depends on the specific process and available resources.
Optimizing processes is crucial because it can significantly improve efficiency and quality. Additionally, it can help businesses save money by reducing waste and improving accuracy. Optimized processes can also be more customer-focused and provide better customer service.
The Surprising Advantages of Utilizing Business Process Management
Businesses that invest in technologies for business process management can reap various benefits and take advantage of several opportunities. Successful business process management (BPM) strategies incorporate business process mapping, which helps reduce costs, eliminate waste, make operations run more smoothly, establish connections between processes, increase business agility, and improve customer service.
In addition, it can facilitate a more straightforward implementation of new programs and technologies and improve process controls.
Below are the benefits or advantages you can get if business process management is utilized.
1. Increased Efficiency and Productivity
Using business process management can increase efficiency and productivity within an organization. This is achieved by automating processes and creating standardized procedures to follow. This provides employees with a clear understanding of what needs to be done and how it should be done, leading to fewer errors and greater overall output.
2. Improved Customer Satisfaction
Another advantage of business process management is improved customer satisfaction. When processes are streamlined and efficient, customers can receive the products or services they need promptly without any issues. This leads to repeat business and increased brand loyalty.
3. Enhanced Employee Engagement
In addition to increased efficiency, BPM can also enhance employee engagement. When employees are given clear expectations and procedures, they can feel more empowered and motivated to do their job well. This leads to a more positive work environment and increased retention rates.
4. Greater Organizational Agility
Another benefit of business process management is greater organizational agility. Organizations can quickly adapt to the marketplace or industry changes when processes are streamlined and efficient. This allows them to remain competitive and stay ahead of the curve.
5. Reduced Costs
Finally, business process management can also lead to reduced costs. Organizations can save money on labor, materials, and other resources by automating processes and eliminating errors. This can lead to increased profits and a higher bottom line.
Business Process Management Examples
Sales Department
In most companies, the time spent by the sales team trying to coordinate with the accounts receivable (AR) team to approve sales invoices consumes a significant portion of their overall workweek. Even a minor typing error in invoices affects the lives of the salespeople.
Business process management enters the picture because it automates the billing approval process. This eliminates the possibility of manual errors and the need for back-and-forth justifications between the salespeople and the AR team. Consequently, the chances of manual errors are reduced. The following are some examples of situations that may arise in the sales department, both of which could benefit from the implementation of business process management:
Reduce the length of your sales cycle and its workflows.
Maintain punctuality with your price quotes and invoices.
Human Resources Department
Did you ever get the impression that the onboarding process at your company is overly complicated and disorganized? Does the Human Resources department at your company require the applicants to fill out paper forms, which can be exhausting for them? Your HR department does not adhere to the Business Process Management principle (BPM).
By implementing business process management, you can automate your HR processes from beginning to end, reducing costs, saving time, and eliminating paper forms. Here are a couple of examples that illustrate how business process management can assist in improving the processes of your human resources department:
Quicker approval of timesheets submitted by employees
Hassle-free onboarding of newly hired staff members
Finance Department
Because the finance team is required to handle anything that has to do with money, they are overwhelmed with paper forms and emails daily. For example, if the team in charge of asset management wants to buy 50 laptops, they will submit the quotation that they have received from the supplier to the team in charge of finance for approval. This is just one example out of many.
Imagine the number of electronic and paper forms, as well as emails, that they receive daily from the various teams. It is difficult for them to handle all these things because they do not have a system. They can better manage all of this with the assistance of business process management (BPM) software. Within the realm of the company's finances, the following are a few examples of situations in which business process management proves to be a savior:
One-click authorizations for travel requirements.
Workflows should be adapted to suit individual circumstances.
Business Process Management: What It Is and How It Works - Conclusion
Business process management is a worthwhile endeavor for any organization looking to streamline its operations and improve its bottom line. BPM can be used to automate manual processes, reduce errors and inefficiencies, and improve customer satisfaction.
Implementing a BPM solution can be complex and costly, but the benefits of doing so are clear. Organizations that have successfully implemented BPM have seen significant improvements in their performance.
YouTube Link: (48) An Introduction to Business Process Management - YouTube
Internal Links:
Business Process Improvement - Redesign and Implementation
External Links:
What is Business Process Management? (aiim.org)
Business Process Management (BPM) - Definition, Steps, and Benefits (kissflow.com)