What is Business Process Management (BPM)?

Last updated on September 14, 2022

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Business Process Management (BPM) is the way of transforming the strategy in which the company works. The main aim behind the strategy is to ensure that company operations stay efficient and effective throughout the years.

It is an important part of dealing with the challenges in operations management within the company. This would include the identification and management of bottlenecks and cost management. It would also look into the different ways in which daily processes can be made more efficient in the long run.

BPM is also based on a number of methodologies, which are key to offer a comprehensive framework for companies to follow. These would include the following models:

  • Modelling: Structuring different models and reducing costs involved in the process is a major part of modelling.
  • Automation: Transforming businesses to digital processes can be a major change for a number of companies. Electronic processes can improve the way records are maintained, faster systems and other benefits.
  • Management: Internal processes need to be reviewed, and it is necessary that their efficiency is maintained in the long run. Systematic changes would ensure that inefficient processes are fixed, making employees and processes more effective.
  • Optimisation: Cost management can make or break businesses. Optimising costs could be through improvement of processes, resolving bottlenecks and engaging employees in a more gainful manner.

Let’s look at the different components which are integral to the Business Process Management of a company.


1. Fundamentals of Business Process Management

Given how every business differs from one another, the BPM software would correspondingly change, too. It would include identifying the business challenges accurately in the system. It is important to understand the exact impact that each of these challenges bring to the process..

Identifying these challenges become increasingly difficult when business and their processes are interconnected with each other. However, with the right aim and strategy, planning an effective process might be easy to attain. While the most direct impact of the process could be improving finances, other effects would include improving how the team functions, among others.

An effective BPM model can also be an important part of your business continuity plan. It offers a fail-proof plan in case projects fail, and your company can continue operating in a business-as-usual scenario. An efficient BPM software can retrieve lost data or maintain audit trails which would help bring your business back up to its feet.

The basic components of a BPM tool would be based on the methodologies as discussed in the above section. The different parts of an ideal structure are as follows:

1. Formulating new business processes: Project managers and senior management should plan out the design of the new business process, and detail it out based on the organisation’s requirements.

2. Awareness initiatives: The new processes should be supported with adequate capacity building initiatives. This would help all stakeholders in the organisation learn about the impending process changes in the organisation.

3. Define process owner roles: It is important to define the person who would lead the change process, and would be in charge of reviewing the performance of the systems as well.

4. Measurement of process performances: Timely review of the different systems are important so that the BPM model stays updated in the long run.

5. Adjusting the corporate culture: Along with changing the processes, it is also required that adequate organisational changes are made from time to time, which would help in an easier transition for the company.

6. Regular reviews of processes: There is a continuous need to improve the processes of the BPM model. This would help process owners make adequate changes from time to time to improve the overall efficiency.

7. Reformed organisational structure: With an improved functioning process model, the organisational structure would go through significant changes in tune with client and stakeholder requirements.

It is to be noted that the changes in the organisational structure would be based on the reformed processes as a part of the BPM methodology. However, this would require a major upheaval in how the company functions and implements the different processes.

The ideal way to test out a BPM model would be to test it out with an initial project. This will also enable project managers to develop skills for improving processes. Managing the business design and development would also build commitment in the project, improve funding sources, and ensuring success in projects going forward. With adequate success, there would be an opportunity to extend BPM across the enterprise.

business process management

2. Benefits of using BPM in the company

Implementing a BPM model would ideally improve the way the organisation functions. Some of the other benefits include the following:

1. Improved revenue: This would include both project and non-project revenues. With an overhaul of the whole process structure, the overall revenues would be improved.

2. Cost reduction: With improved processes, unnecessary costs will be minimised, leading to a much more efficient system.

3. Better compliances: With an evolving BPM model, there would be better adherences to the existing compliances, which leads to better project management.

4. Risk management: With better compliances, business risks would be detected much faster, leading to a minimal impact in projects.

5. Improvement in productivity: Resource overallocation and time spent on projects would reduce to a great extent, speeding up the project turnover time.

6. Better customer satisfaction: Improved project delivery would ideally lead to happy clients. Since stakeholders and clients are a part of the BPM model, customers can offer feedback to processes which would improve the company’s efficiency.

7. Competitive advantages: An efficient BPM model would give the organisation a competitive edge than other companies

8. Transformative processes: Regular feedback and changing of processes would be incorporated in how the company functions. This will be in tune with the increased popularity and need for agile projects in the organisation.

9. Innovative approaches: One of the main benefits of having an inclusive model is ideation and brainstorming from all employed categories, leading to better solutions for commonplace problems.

BPM models make processes extremely flexible in the long run. With agile processes becoming a part of the functions that a company performs, the tool could benefit the company deeply in the long run. Employees, an important part of the organisation, also have a huge impact from such a model. These include better client delivery and improved performances as well.

A successful process would also impact company revenue in a positive manner. With a better-equipped workforce and improved processes, organisations can take up more projects in the long run. Continuously evolving the BPM model leads to a structure which is driven towards offering a great performance in every project.

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