MANAGEMENT OF BUSINESS PROCESSES
Business process management (BPM) is a systematic, business solution approach to making an organization’s workflow more efficient and better able to adapt to an ever-changing environment. It allows all processes to run smoothly and effectively. It is a path that leads to “process optimization”. BPM sees a business as a set of processes or workflows or we can also say that it is a set of activities that must be carried out for the general development of the company. BPM software is software that allows companies to model, implement, execute, monitor and optimize their processes.
The goal of BPM is to reduce human error and miscommunication and focus stakeholders on their role requirements. BPM is a subset of infrastructure management, an administrative area concerned with the maintenance and optimization of an organization’s core equipment and operations. To run this infrastructure we require some BPM tools that are as follows:
1. Planning and budgeting
2. Key performance indicators (KPIs)
3. Balanced Scorecard (BSC)
4. Benchmarking
5. Business excellence model
6. Enterprise Risk Management (ERM)
7. Six sigma
8. Performance Dashboards
9. Customer Relationship Management (CRM)
10. Performance Reviews
These are the tools or subsystem components that reside within BPM, which play an important role in the development of the organization.
BPM SOLUTIONS
Horizontal BPM Solutions:
These are those BPM solutions that can be applied in various industries. Horizontal frameworks deal with business process design and development and typically focus on technology and reuse.
Vertical BPM Solutions:
BPM solutions that are specific to a particular industry or type of process. Vertical BPM frameworks focus on a specific set of coordinated tasks and have pre-built templates that can be easily configured and deployed.
BPM life cycle
The BPM life cycle follows a chain of steps that are as follows:
Design
Process design encompasses both the identification of existing processes and the design of the processes. Focus areas include process flow representation, factors within the process, alerts and notifications, escalations, standard operating procedures, service level agreements, and task handover mechanisms. Which processes need to be present or which processes are not needed should be done at this stage.
Modeling
The modeling takes the theoretical design and introduces combinations of observations that are necessary for subsequent steps. Determine how the process might work under different circumstances.
For example: “What if I have 70% of the resources to do the same task?” “What if I want to do the same job for 80% of the current cost?”
Execution
It addresses how these applications rarely execute all process steps accurately or completely. Another approach is to use a combination of software and human intervention; however, this approach is more complex, which makes the documentation process more difficult. Systems have used business rules to provide definitions to control behavior, and a business rules engine can be used to drive execution and resolution of processes.
Surveillance
Monitoring encompasses tracking individual processes so that information about their status can be easily viewed and statistics can be provided on the performance of one or more processes. An example of this monitoring is being able to determine the status of a customer’s order (eg order arrived, pending delivery, invoice paid) to identify and correct problems in its operation.
Additionally, this information can be used to work with customers and suppliers to improve their connected processes. Here Business Activity Monitoring (BAM) extends and expands the monitoring tools usually provided by BPMS.
improvement
Process optimization includes retrieving the best of the process performance. It is the most important phase of the BPM life cycle since the main objective of BPM is to achieve optimized processes.
reengineering
When the process becomes too noisy and the optimization does not get the desired result, it is recommended to redesign the entire process cycle. Organizations have used Business Process Reengineering (BPR) to try to achieve efficiency and productivity at work.