The Basic Guide to Business process management (BPM)

Business process management
Business process management (BPM) is a discipline that seeks to improve organizational efficiency and effectiveness through the design, improvement, and management of business processes (Kumar, Van der Aalst, & La Rosa, 2017). It involves the definition, analysis, design, execution, monitoring, and optimizing processes to achieve specific business objectives (Shafiee, Gharabaghi, & Abbasi, 2016). BPM can be classified into three levels: basic, intermediate, and advanced (Kumar et al., 2017).

Basic BPM involves identifying and documenting business processes, inefficiencies, and bottlenecks in the process flow (Shafiee, Gharabaghi, & Abbasi, 2016). This is an essential first step in the BPM process, as it provides a baseline understanding of how the process currently operates and allows for identifying opportunities for improvement (Kumar, Van der Aalst, & La Rosa, 2017). The documentation of business processes can be achieved through tools such as flowcharts and process maps, which provide a visual representation of the process and help identify the steps and decision points involved (Shafiee et al., 2016).

In addition to documenting the process, basic BPM also involves the identification of inefficiencies and bottlenecks in the process flow (Kumar et al., 2017). These can occur due to various factors, including manual processes, lack of standardization, and inefficient use of resources (Shafiee et al., 2016). By identifying these issues, organizations can take steps to improve the process and eliminate waste (Kumar et al., 2017). This can be achieved by implementing simple process changes, such as automating manual tasks or streamlining the process flow (Shafiee et al., 2016). These changes can often be achieved through process automation software, which can help eliminate errors and reduce the time and effort required to complete tasks (Kumar et al., 2017).

Basic BPM is an essential foundation for more advanced BPM initiatives, as it provides the necessary understanding of the process and identifies areas for improvement (Shafiee et al., 2016). By implementing basic BPM techniques, organizations can achieve significant improvements in efficiency and effectiveness, setting the stage for more complex process improvements at the intermediate and advanced levels (Kumar et al., 2017).

Intermediate BPM involves the development of more complex process improvements, such as integrating different process steps or implementing process automation (Shafiee, Gharabaghi, & Abbasi, 2016). This level of BPM builds upon the foundation of basic BPM by identifying opportunities for more significant process improvements and implementing changes at a deeper level.

One key aspect of intermediate BPM is the use of process modeling tools, which allow for the creation of detailed process diagrams that can be used to analyze and optimize the process flow (Kumar, Van der Aalst, & La Rosa, 2017). These tools allow organizations to visualize the process in greater detail and identify opportunities for improvement, such as the integration of different process steps or the implementation of process automation (Shafiee et al., 2016). 

In addition to process modeling, intermediate BPM also involves implementing process management systems, which provide the necessary infrastructure for managing and monitoring processes (Kumar et al., 2017). These systems can include features such as process tracking and reporting, as well as real-time monitoring and alerting capabilities (Shafiee et al., 2016). By implementing these systems, organizations can gain greater visibility into the process and identify areas for improvement in real time, enabling them to make more informed decisions about process optimization (Kumar et al., 2017).

Overall, intermediate BPM represents a significant step forward in optimizing business processes. It enables organizations to implement more complex process improvements and gain greater visibility into the process through advanced tools and systems.

Advanced BPM involves optimizing processes at the strategic level through advanced analytics and decision-making tools (Shafiee, Gharabaghi, & Abbasi, 2016). This level of BPM represents the highest level of process optimization, as it involves using advanced techniques to optimize the process strategically and drive long-term process improvement.

One key aspect of advanced BPM is data analytics to identify trends and patterns in the process flow (Kumar, Van der Aalst, & La Rosa, 2017). Organizations can gain insights into the process's performance by analyzing process data and identifying improvement opportunities (Shafiee et al., 2016). In addition to data analytics, advanced BPM involves using advanced modeling techniques to predict future process performance (Kumar et al., 2017). By using these techniques, organizations can make more informed decisions about process optimization and implement changes that are likely to significantly impact process performance (Shafiee et al., 2016).

Another critical aspect of advanced BPM is the integration of processes with other organizational systems, such as enterprise resource planning (ERP) systems and customer relationship management (CRM) systems (Kumar et al., 2017). By integrating processes with these systems, organizations can optimize cross-functional processes and improve efficiency and effectiveness at a strategic level (Shafie Gharabaghi & Abbasi, 2016).

Overall, advanced BPM represents the pinnacle of process optimization, as it enables organizations to drive long-term process improvement through advanced analytics and decision-making tools, as well as the integration of processes with other organizational systems. Organizations can significantly improve efficiency and effectiveness by implementing advanced BPM techniques, resulting in a more streamlined and efficient business.

BPM can be applied to various industries and business functions, including manufacturing, supply chain management, customer service, and finance (Kumar et al., 2017). For example, a manufacturing company may use BPM to optimize its production process, while a customer service organization may use BPM to improve the efficiency of its call center operations (Shafiee et al., 2016).

The theory behind BPM is based on the principles of continuous improvement and lean management, which focus on eliminating waste and optimizing value-added activities (Kumar et al., 2017). BPM also draws on concepts from systems thinking and process improvement methodologies, such as Six Sigma and the Theory of Constraints (Shafiee et al., 2016). These approaches provide a framework for identifying and addressing problems in the process flow and for implementing lasting improvements to the process (Kumar et al., 2017).

In conclusion, business process management (BPM) is a discipline that seeks to improve organizational efficiency and effectiveness by designing, improving, and managing business processes. It involves the definition, analysis, design, execution, monitoring, and optimizing processes to achieve specific business objectives. BPM can be classified into three levels: basic, intermediate, and advanced, and it can be applied to a wide range of industries and business functions

References:

  • Kumar, V., Van der Aalst, W. M., & La Rosa, M. (2017). Handbook on business process management 1: Introduction, methods, and information systems. Berlin: Springer.
  • Shafiee, S., Gharabaghi, B., & Abbasi, A. (2016). A systematic review of business process management research: 2004-2014. Journal of Management and Marketing Research, 18, 1-19.

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