Digitalization through Business Process Management

Find out why Business Process Management (BPM) is a great value-add for cost- and time-efficient work.

What is Business Process Management

Business Process Management (BPM), as defined by Gartner, uses empirical methods to discover, model, analyze, measure, improve, and optimize business strategy and processes.

It is useful to specify, that there is a substantial difference between task management and project management. In fact, task management focuses on individual tasks, while BPM looks at the entire end-to-end process.

BPM is far broader in scope than the sum of task and process management.
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Whereas task management focuses on tasks and project management refers to a one-time scope of work, BPM focuses specifically on processes that are repeatable.

Business Process Management is a great value-add for cost and time efficiency of work. This is possible through continuous process reengineering, in concept already present in many organizations, just think of the six sigma and lean principles that are precisely examples of BPM methodologies. In fact, business management suites have been particularly useful in speeding up digital transformation strategies and the achievement of business goals.

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Why use BPM in the Enterprise?

Every company aims to optimize productivity; in the era of digitalization, this change aims to improve the time and cost of processes.
In fact, processes and organization are at the heart of value creation. and the methodology by which processes and organizations are structured can make a difference on business strategy. If the method contemplates the introduction of the right technologies, the solution becomes optimal.

Having the right approach to Business Process Management can become the solution to intercepting and creating new value, results-oriented, and reducing waste and inefficiencies.

Business process management (BPM) is an approach that uses various methods to discover, model, analyze, measure, improve, and optimize business processes.

What is the relationship between BPM AND RPA?

Business Process Management (BPM) is a multifaceted concept that on the one hand refers to business management and on the other to information technology and thus has a direct relationship with Robotic Process Automation.

In fact, since the ultimate goal of BPM is to make business as efficient and effective as possible, RPA could only be a strategic ally.

RPA refers to the ability to outsource certain tasks to software in order to make processes faster. RPA targets tasks that are simple and routine but contribute largely to streamlining operations, allowing human resources to add new value by leveraging their professionalism and expertise in more strategic tasks where human skills find application.
In summary, RPA aims to reduce repetitive and simple rule-based manual activities by shifting tasks that do not require analysis and decision-making to robots.

In this sense, RPA is a valuable ally of BPM, a tool for optimizing time, reducing errors, and using human resources for more strategically relevant processes.

Applications and types of BPM

There are three main elements around which ad hoc BPM strategies can be built: integration, people, and documents.

Below we look at the three cases in detail.

  1. BPM with a focus on integration: this type of BPM is optimal for processes that do not require much human involvement. APIs and mechanisms that integrate data between systems, such as human resource management (HRM) or customer relationship management (CRM), are typical examples of use.
  2. Human-centered BPM: Unlike integration-centered BPM, this in Human-centered BPM involves human involvement. Human intervention is typically required where permissions are needed.  Intuitive user interfaces with drag-and-drop features are typical and are intended to allow teams to assign tasks at different levels, making the assignment of work along the process smoother.

  3. Document-focused BPM: This type of BPM is focused on a specific document, such as a contract with a supplier.

How to introduce BPM in your in Company, read: the Business Process Management Lifecycle.

The introduction of a successful BPM system begins with an assessment phase in which the steps involved in a workflow are defined.

This helps the team not only identify areas for improvement, but also identify what will be the metrics to monitor progress.

The ultimate goal of BPM is to optimize operations, leading to better business results. To achieve these results, it is necessary to fully understand the BPM life cycle.
Here are the five steps of the life cycle:
Process design: at this stage together with the team, all the tasks that make up the process are identified. This not only allows you to identify the composition of the workflow but also to identify areas for improvement and which variables to measure the process.

Model: at this stage, the team uses a visual representation of the process model, including specific details such as deadlines, task descriptions and any data flow in the process.
In general, business process management software is very useful during this phase.

Execution: this phase is usually preceded by an initial test in which the team completes a trial run, testing the new BPM system with a limited group. Having gathered and assimilated feedback, the team can begin to roll out the process to the organization.

Monitoring: during this phase, the team, using the monitoring KPIs defined upstream in the design phase, measures improvements in efficiency and identifies any critical issues and new bottlenecks.


Optimization: in this final phase, the team incorporates any fine tuning and proceeds with using BPM to improve activities.
The Business Process Management (BPM) methodology analyzes existing processes by highlighting weaknesses and improvement points, works on creating a new operating model, and tracks and monitors progress while trying to make the process itself measurable, with the ultimate goal of optimization and automation.

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Benefits of business process management

The advantages of introducing a BPM solution into the company are many and are reflected on many fronts. Let's look at some of them:

  1. Efficiency and optimization: BPM systems help optimize existing processes and systematize new patterns in order to improve efficiency. This comes through the removal of process bottlenecks, which clog and slow down processes. 

  2. Improved employee and customer experience: a suite of BPM tools helps eliminate repetitive work and make information more accessible. Eliminating repetitive processes not only circumvents errors, but also optimizes human resources by channeling professionalism and expertise to strategic goals.

  3. More scalable processes: since BPM enables better process execution and workflow automation, this reflects well when scaling processes to other geographies around the world. Business process management tools can bring clarity to roles, ensuring consistency along the process, and can also bring up opportunities to integrate business rules for automation, allowing teams to focus more on innovation.

  4. Increased transparency: BPM clearly defines tasks and their assignment, so it allows for improved transparency in workflow and responsibilities.

  5. Less dependence on IT development teams: the BPM offers low-code capabilities that reduce dependence on IT development . These tools are easily integrated into the work and are typically simple solutions to adopt and use.

Business process management use cases

There are areas where BPM software performs best by maximizing processes and resources. Let's look at some of them:

Content distribution: media companies can integrate BPM to automate the entire process from content creation to delivery. They can also optimize traffic and work order tracking.

Customer service: a key example is chatbots. Once key questions are identified these can be handled by chatbots, reducing pressure on the team when a high volume of service requests arise.

Human resources: BPM offers the ability to optimize specific areas such as on and off employees, performance appraisals, vacation requests, and timesheet approval.

Banks: especially useful in processes for evaluating individuals or businesses for loan disbursement, a variety of data collected against certain predefined criteria are analyzed. BPM expedites analysis and decisions on loan eligibility by reducing possible errors.

Order fulfillment: companies can use BPM for order management and fulfillment, automating this process and letting the human resources of can focus on customer care, generating more business value.

Conclusions

Thus, Business Process Management is an extremely innovative and beneficial business management tool: just choose the right strategy and pay attention to the chosen model and the process to be implemented to experience concrete and beneficial results even in the short term.
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