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What is business process management and why is it important?
Get insights into what a BPM is and how it can improve daily tasks.
Every business depends on processes to handle tasks like managing customer requests, finances, or employee onboarding. When these processes become outdated or disorganized, they can slow down operations and increase costs. Using business process management (BPM) solutions is one way companies can stay organized and ready for changes. But what exactly is a BPM, and what does it do?
In this article, we’ll examine BPM’s definition, importance, different types, lifecycle, and benefits and challenges.
What is business process management or BPM?
Business process management (BPM) is a structured approach businesses use to analyze, improve, and manage workflows. This approach includes breaking down processes into individual steps, examining them, and identifying ways to make them as efficient as possible. BPMs make sure that businesses can carry out their tasks consistently and align with their overall goals and objectives.
A business process could be anything from approving invoices and reviewing orders to handling customer service requests. With BPM, these processes are standardized to improve efficiency, consistency, and quality. Tools like business process automation software can play a helpful role in managing these workflows.
Why is business process management important?
Business process management is important because it helps companies identify and eliminate inefficiencies. Without BPM, operations can become disorganized, slow, or redundant, costing time and money. BPM provides a framework for reviewing how tasks are completed and making necessary improvements.
For example, BPM ensures that all employees follow the same steps in completing tasks, leading to greater consistency in operations. This consistency can result in better customer experiences, so that every customer receives the same level of service, no matter who they interact with. BPM also allows businesses to adapt quickly to new market changes or internal organizational shifts.
For businesses looking to improve their operations, Adobe Acrobat for business offers tools for better workflow management.
Types of BPM.
Each type of BPM addresses different kinds of workflows within an organization. Here are the different types of BPMs and how they can fit the business process that’s being managed:
- Document-centric BPM. Document-centric BPM focuses on document-heavy processes, such as contracts or reports. For businesses that deal with a lot of paperwork, this BPM moves documents through the required steps without delays or mistakes. A common example includes using document workflows so that contracts are properly reviewed and signed.
- Human-centric BPM. Human-centric BPM assists in processes that rely on human input customer service tasks, sales approvals, or employee hiring. BPM allows everyone involved to follow the same steps, which helps prevent delays and confusion. For example, a company might use BPM to manage a contract review process to make sure that legal documents are reviewed and approved properly.
- Integration-centric BPM. Integration-centric BPM brings multiple software systems together. In many organizations, different tools are used to handle various parts of a process, like within finance or IT systems. These tools communicate with each other and reduce repetitive manual data entry tasks. A vendor approval process that involves several departments is an example of how this BPM can help.
Business process management lifecycle.
The BPM lifecycle involves a series of steps that are repeated over time to continually improve how work is done. The following cycle makes sure that the processes stay effective and continue to meet the business’s needs.
1. Plan and design the processes.
The first step in BPM is to look at existing work and identify any problems. This task might involve talking to employees, reviewing how tasks are completed, and identifying areas for improvement. Once these issues are known, a new process is designed to fix them.
2. Create a model to test the new processes.
Once the new process is designed, create a model to see how it will work in real-world situations. This step allows businesses to test the process and see if any problems need to be addressed before it’s officially implemented. Modeling can often involve running simulations.
3. Put the new process into practice.
After the process is tested, it’s time to put it into practice. This task could mean introducing new procedures, training employees, or using new tools to help complete tasks. Everyone must understand their role in the new process to ensure a smooth transition.
4. Monitor and track if the process is working.
Keep an eye on the new process to ensure it works as expected. This step involves tracking key measurements to see if the changes lead to improvements. Monitoring helps businesses spot issues early and make adjustments as needed.
5. Improve to make the process better.
The final step is to make improvements based on the information gathered during the monitoring phase. Adjustments must be made if there are any problems or if the process could be done more efficiently. This step goes back into the design stage, making BPM a continuous improvement process.
Many companies use tools like workflow automation to help monitor and adapt their processes.
Benefits and challenges of BPM.
BPM offers many advantages but presents a few challenges that businesses should be aware of.
BPM benefits
Consistency and reliability
By establishing processes, BPM ensures that tasks are done the same way each time, reducing mistakes. It can also be used for important internal processes like remote onboarding, ensuring new hires follow the same steps whether working remotely or in the office.
Clarity on responsibilities
BPM shows who is in charge of each step in a process, which helps teams stay organized and reduces confusion. Teams can prevent delays and complete tasks on time.
Flexibility to adapt
BPM makes it easier for businesses to adjust their processes when changes occur, such as new industry rules, market shifts, or company needs. Businesses can stay on track even when circumstances change.
Improved customer experience
When internal processes run smoothly, customers receive quicker responses and more reliable services. BPM helps businesses handle customer interactions promptly and consistently.
Initial cost and time investment
Getting started with BPM may require investment in new tools, staff training, or changes to the business’s organization. For smaller businesses, this can be a large expense, and it’s important to consider if the long-term benefits outweigh the costs.
Employee resistance
Some employees may be uncomfortable with the changes that come with BPM, especially if they’re used to doing things a certain way. It may take time and effort to help employees understand the true value of BPM and get them comfortable with new procedures.
Complexity
For larger companies, managing many processes at once can be complex and requires careful planning to make sure information is clear for all involved and affected, including customers, employees, and partners.
Ongoing upkeep
BPM isn’t something you set up once and leave alone. Regular reviews are required to check that the processes are still working well and meeting the business’s needs. Businesses must dedicate time to continually managing their processes.
Customization for specific needs
Some businesses may find that standard BPM tools don’t fully meet their needs and require even more time or money to tailor solutions to their requirements, adding to the overall complexity and cost.
Frequently asked questions.
What does business process management mean?
Business process management (BPM) is a method for improving an organization's operations. It involves reviewing, analyzing, and refining workflows to ensure they are properly refined and running well.
What are the five steps of BPM?
The five steps of BPM are designing, testing, executing, monitoring, and improving. This cycle helps businesses create and continuously refine processes to function well.
What is an example of BPM?
An example of BPM could be the process of handling customer service inquiries. BPM helps businesses set up a structured approach to ensure that every inquiry is handled in the same way, from receiving the request to providing a resolution.
How can business process management improve customer satisfaction?
By using BPM, businesses can ensure consistency in customer-facing processes, such as handling requests or complaints. This leads to faster response times, fewer errors, and a more reliable customer experience, which can greatly improve overall customer satisfaction.
Is BPM only for large companies?
No, BPM can be implemented in organizations of any size. While large companies may have more challenging processes, smaller businesses can benefit from BPM by eliminating bottlenecks or obstacles and improving productivity.
How long does it take to implement BPM?
The time required to implement BPM depends on the complexity of the processes being reviewed and the size of the business. For some companies, it may take a few months to fully integrate BPM, especially if it involves training employees and implementing new tools. For smaller projects, it may be much quicker.
What industries benefit the most from BPM?
BPM is valuable in many industries, but it is especially useful in sectors that rely on repeatable processes and compliance, such as healthcare, finance, manufacturing, and logistics. These industries benefit from well-organized workflows that can adapt to changing regulations or demands.
What tools are commonly used in BPM?
Many tools, such as workflow automation software, process modeling tools, and analytics platforms, can help businesses implement BPM. These help businesses track their processes, monitor performance, and make improvements. Workflow automation tools are especially useful for automating repetitive tasks, freeing up time for higher-value work.
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