What is Business Process Management ?
Definition: Business Process Management (BPM) is a systematic approach to managing and improving an organization's processes to achieve business goals. It involves analyzing, designing, executing, monitoring, and optimizing business processes to enhance efficiency, reduce costs, and improve customer satisfaction. BPM can involve the use of technology, such as workflow automation tools, to streamline and manage processes.
Benefits of BPM
- Improved efficiency: With BPM, the company can identify and eliminate inefficiencies in their processes, leading to improved productivity and reduced costs.
- Enhanced customer satisfaction: By improving processes, organizations provide better customer experiences, leading to increased customer satisfaction and loyalty.
- Increased agility: Businesses are able to quickly adapt to changing market conditions or customer needs by modifying processes to meet new requirements.
- Better compliance: Organizations ensure they comply with relevant laws and regulations by creating and implementing standardized processes.
- Increased visibility and control: Companies are provided with real-time visibility into their processes, enabling them to monitor performance and make data-driven decisions.
- Improved collaboration: BPM promotes collaboration across departments and teams, leading to better communication, increased transparency, and improved decision-making.
Success factors for implementing
- Process modeling: BPM involves the creation of process models that represent the sequence of activities and decisions in a business process.
- Process automation: The use of technology is included in BPM to automate repetitive and manual tasks. This reduces errors and improves efficiency.
- Process monitoring: Tracking and monitoring process performance in real-time to identify bottlenecks, delays, and other inefficiencies.
- Process analysis: BPM uses data analytics to identify patterns and trends in process performance, enabling organizations to make data-driven decisions.
- Process optimization: Continuously improving processes to eliminate waste, reduce costs, and enhance customer satisfaction.
- Collaboration: Collaboration across departments and teams, enabling stakeholders to work together to design and implement effective processes.
- Integration: BPM involves integrating processes with other systems and applications to improve efficiency and reduce duplication.
Glossary of Business Process Management Terms
An activity cost worksheet is a document used in activity-based costing (ABC) to assign costs to specific activities or processes within an organization. Its purpose is to break down the costs into smaller, more manageable components to determine the true cost of producing a product or providing a service. This helps companies identify areas where costs can be reduced, and resources can be better allocated.
Involves automating the flow of tasks and information between different systems, departments, and stakeholders in a business process.
Administrative Workflow Systems refer to a software application or platform that automates and streamlines various administrative tasks and processes within an organization. These systems typically involve a set of tools and features that help to manage tasks such as data entry, document management, tracking of tasks and approvals, and communication between team members.
Balanced Scorecard is a strategic management tool used by organizations to measure and monitor their performance against predefined goals and objectives. It provides a framework for tracking and evaluating performance across four key perspectives: financial, customer, internal processes, and learning and growth.
A method of processing large amounts of data or tasks in batches, where the tasks are grouped together and executed at the same time.
A systematic approach to improving processes, products, and services in an organization, with the goal of increasing efficiency and effectiveness over time.
A choice made between different options or alternatives based on evaluation and analysis of available information.
Tangible or intangible outputs of a project or process that are provided to stakeholders or customers.
Emergency Response and Operations system, a software or platform used to manage and coordinate emergency response and operations in an organization.
Data, information, or resources that are used as an input to a process or system.
A tool used in process analysis to identify the inputs, processes, and outputs of a system or process.
Key Performance Indicators, metrics or measures used to track and evaluate the performance of a process or organization against its goals.
A level of detail or abstraction in a process map, such as a high-level overview or a detailed view of individual steps.
A sequence of steps or activities that transforms inputs into outputs.
A repository or database of process information and documentation that can be used to improve and optimize processes within an organization.
A visual representation of a process that shows the sequence of steps, inputs, and outputs involved in the process.