Business process management (BPM)
is a systematic and business solution approach to make an organization's
workflow, more efficient and more capable of adapting to an ever-changing
environment. It allows all the processes to run smoothly and effectively. It is
a way that leads to the "process optimization". BPM views a business
as a set of processes or workflows or we can also say that it is a set of
activities that are to be performed for the overall development of the firm.
BPM Software is software which enables businesses to model, implement, execute,
monitor and optimize their processes and to convince the customers.
The goal of BPM is to reduce
human error and miscommunication and focus stakeholders on the requirements of
their roles. BPM is a subset of infrastructure management, an administrative
area concerned with maintaining and optimizing an organization's equipment and
core operations. For running 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
7. Six sigma
8. Performance dashboards
9. Customer relationship
management (CRM)
10. Performance appraisals
These are the tools or sub-system
components residing within BPM , that plays a major role in the organization
development.
BPM SOLUTINS
1) Horizontal
BPM Solutions:
These are those BPM solutions
that can be applied across several industries. Horizontal frameworks deal with
design and development of business processes and are generally focused on
technology and reuse.
2) 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
readily configured and deployed.
BPM Life Cycle
The BPM life cycle follows a
chain of steps that are as follows:
Design
Modeling
Modeling takes the
theoretical design and introduces combinations of observations that are needed
for the further steps. It determines how the process might operate under different
circumstances.
Execution
It
takes care of, how these applications rarely execute all the steps of the
process accurately or completely. Another approach is to use a combination of
software and human intervention; however this approach is more complex, making
the documentation process difficult.
Business rules have been
used by systems to provide definitions for governing behavior, and a business
rule engine can be used to drive process execution and resolution.
Monitoring
Monitoring
encompasses the tracking of individual processes, so that information on their
state can be easily seen, and statistics on the performance of one or more
processes can be provided. An example of this tracking is being able to
determine the state of a customer order (e.g. order arrived, awaiting delivery,
invoice paid) so that problems in its operation can be identified and
corrected.
In addition, 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 generally provided by BPMS.
Optimization
Process
optimization includes retrieving
the best of the process performance. It is the most important phase of the life
cycle of the BPM as the main goal of the BPM is to get optimized processes.
Reengineering
When the process
becomes too noisy and optimization is not fetching the desired output, it is
recommended to
re-engineer the entire process cycle. Business
Process Reengineering (BPR) has
been used by organizations to attempt to achieve efficiency and productivity at
work. Engineering services plays major role behind it.
