Traditionally, the business process included tasks, departments, production and output to overcome such problems as job scheduling. As businesses matured and their needs diversified, new approaches in management became necessary to improve efficiency.
Luckily, business advancements have been accompanied by innovations in technology, which provided methods for implementing these new approaches. One of the most important areas of innovation has been in management of the "business process," a term often used to refer to the integration of application software with other operations.
Uses of BPM
Although business process management (BPM) initially focused on automating business processes by using information technology, uses now extend to integrate human-operated processes. This includes any operations where human judgment or intuition is required to achieve the best possible outcome.
BPM tools such as process flows, histograms, SIPOCs, CTQs and RACIs help users:
- Visualizing and mapping processes and functions
- Determine the appropriate measurements needed to succeed
- Analyze and compare simulations for improvement
- Implement the necessary improvements
- Monitor the improvements, and enter the results into a simulator to prepare for the next iteration
- Revamp processes from the ground up to improve results
The real-world data collected makes the simulations more realistic, and changes more productive, than just basing improvements on assumed intelligence. Additionally, by mating BPM with industrial methodologies, users can continually optimize and streamline processes with customer centricity.
Achieving Process Excellence
The use of BPM to achieve process excellence, efficiency and customer centricity is now considered a vital component of operational intelligence (OI) solutions. Its proven ability to deliver actionable information in real-time bridges the gap between old style operations and digital technologies.
Real-time information is beneficial in many ways, such as sending alerts or executing quick executive decisions through real-time dashboards. Automated actions can be set based on pre-determined rules, which will initiate security measures or management exception processes.
There are five main benefits of BPM that help organizations improve operational efficiency, increase product innovations and enhance customer service. These benefits are:
1. Improved intelligence and agility - real-time intelligence gives businesses the agility to implement changes quickly and efficiently2. Accountability - operational accountability fosters transparency, which reduces the risk of loss, errors and fraud
3. Process improvements - automation improves quality, increases production, reduces costs and enhances customer satisfaction
4. Improved governance - BPM ensures organizations are in compliance with policies and regulations with periodic reviews
5. Cutting wasted time and money - BPM identifies redundant processes and eliminates unnecessary and duplicated work
Business process management helps organizations make a smooth digital transformation into the new world of efficiency and customer centricity, and stay ahead of their competition.