Digitalization through Business Process Management
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What is Business Process Management
Business Process Management (BPM), as defined by Gartner, is the use of empirical methods to discover, model, analyze, measure, improve, and optimize business strategies and processes.
It’s important to distinguish BPM from task management and project management. While task management focuses on individual tasks, and project management on one-time initiatives, BPM addresses entire, repeatable end-to-end processes.
BPM is broader in scope than the sum of task and project management combined.
BPM creates value by increasing both cost and time efficiency through continuous process reengineering. This concept is already familiar to many organizations via methodologies like Six Sigma and Lean, both of which are examples of BPM in action. Modern business management suites have also been instrumental in accelerating digital transformation and achieving business goals.
What is the relationship between BPM AND RPA?
Business Process Management (BPM) is a multifaceted discipline that intersects both business strategy and information technology, making it naturally aligned with Robotic Process Automation.
Since BPM’s ultimate goal is to enhance efficiency and effectiveness across the organization, RPA serves as a strategic ally.
RPA refers to the use of software to automate simple, repetitive tasks. It plays a key role in streamlining operations, allowing employees to focus on higher-value tasks where human insight is essential. In essence, RPA transfers manual, rule-based activities to digital “robots,” reducing the need for human intervention in routine tasks.
Thus, RPA becomes a valuable tool within BPM—optimizing time, minimizing errors, and allowing human resources to concentrate on strategic priorities.
Applications and types of BPM
Three core elements typically define tailored BPM strategies: integration, people, and documents. Let’s take a closer look at each type:
- Integration-Focused BPM:
Best suited for processes with minimal human intervention. Examples include system integrations using APIs, such as HRM or CRM platforms, where data flows between systems without manual effort.
- Human-Centered BPM:
Involves processes where human decision-making is essential (e.g., approvals). These systems usually feature intuitive, drag-and-drop interfaces, allowing team members to assign and track tasks efficiently. - Document-Centric BPM:
Focuses on workflows built around key documents (e.g., supplier contracts). It ensures that documents are handled accurately and efficiently throughout the process lifecycle.
How to introduce BPM in your in Company
To implement BPM effectively, organizations should follow the Business Process Management Lifecycle. It begins with an assessment of the current workflows to identify improvement areas and determine relevant performance metrics.
The primary goal is to optimize operations and drive better business outcomes. Here’s a breakdown of the BPM lifecycle’s five key phases:
- Process Design:
The team identifies all tasks involved in the process. This allows you to map workflows, highlight inefficiencies, and define which variables to measure.
- Modeling:
A visual representation of the process is created, including task descriptions, deadlines, and data flows. BPM software is particularly helpful during this phase.
- Execution:
Typically starts with a test phase, using a pilot group. After collecting feedback, the process is rolled out across the organization.
- Monitoring:
KPIs defined during the design phase are used to track performance, assess improvements, and identify new bottlenecks. - Optimization:
Fine-tuning occurs based on monitoring results, with the goal of improving and potentially automating the process further.
BPM not only identifies inefficiencies but also creates a new operational model, monitors its performance, and ensures it evolves toward greater efficiency and automation.
Benefits of business process management
The advantages of implementing BPM are wide-ranging. Here are some key benefits:
- Efficiency and Optimization:
BPM helps eliminate bottlenecks and standardizes processes, improving operational efficiency. - Improved Employee and Customer Experience:
By automating repetitive tasks and streamlining information access, BPM allows staff to focus on more strategic work and enhances service delivery. - Scalability:
BPM enables processes to be scaled across different regions while maintaining consistency. It also integrates automation rules, freeing teams to focus on innovation. - Increased Transparency:
Clearly defined tasks and responsibilities enhance visibility into workflows and improve accountability. - Reduced Dependence on IT:
Low-code BPM platforms reduce reliance on development teams. These solutions are easy to adopt and integrate into daily operations.
Use Cases for Business Process Management
BPM software excels in several business areas. Here are a few prominent examples:
- Content Distribution:
Media companies use BPM to automate the content pipeline—from creation to delivery—while improving tracking and performance. - Customer Service:
Chatbots powered by BPM can handle routine inquiries, reducing pressure on customer service teams during high-demand periods. - Human Resources:
BPM can optimize processes like onboarding, performance reviews, time-off requests, and timesheet approvals. - Banking:
BPM streamlines loan application reviews by automating data evaluation against predefined criteria—enhancing decision accuracy and speed. - Order Fulfillment:
Businesses use BPM to automate order tracking and management, freeing employees to focus on customer engagement and satisfaction.
Conclusion
Business Process Management is a highly effective and innovative tool for driving operational excellence. By selecting the right strategy and carefully implementing the appropriate model, organizations can quickly realize tangible improvements in efficiency, agility, and competitiveness—even in the short term.
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