The Value of Business Process Management

Business Process Management is not about the software that you use but rather about having managed processes that improve your competitive advantage. Whether it improves operational efficiency, reduces cost, improves the customer experience, ensures compliance or drives innovation, it having managed processes all contributes to an increased competitive advantage and differentiation in the market.

All of the above can possible be achieved without any software, but the demands of the Real Time Enterprise (RTE) requires consistent, repeatable and timely execution of business processes. This requires some form of automation, integration, collaboration and monitoring to deliver on the promise of RTE.

Software based process management solutions has been around for a long time and products like ERP solutions have succeeded to some level in connecting information systems from various functional silos into one business repository. The challenge with ERP solutions is the rigidity based on some form of “best practice” and in doesn’t allow businesses to structure the solution to the unique processing requirements of the document management system organization. Any changes to ERP solutions required bespoke development and business requirements sometimes changed faster than what the bespoke developers could attend to.

Abstracting business processes from underlying business applications became more important in agile, real time enterprises. The process rules and the way the business works needed to be separated from the transactional business applications like the ERP, CRM, DMS etc.

This can be achieved by creating policies and procedures and also by creating automated processes with BPM.

Work flow vs BPM

BPM is about managing a business problem where work flow is a technology. BPM use workflow as one of its dimensions to manage business processes. The thought of dimensions led me to think of some of the other dimensions of BPM. It also reminded me of the cube as the icon for BPM with its six sides. The six sides of the BPM cube.

o BPM has a human work flow (WF) dimension;
o BPM has a rules engine (RE) dimension;
o BPM has an enterprise application integration (EAI) dimension;
o BPM has a service oriented architecture (SOA) dimension;
o BPM has a content management (CM) dimension; and
o BPM has a business intelligence (BI) dimension.

So if BPM has all these dimensions one can argue that a BPM Suite (BPMS) should allow for the configuration of all of the dimensions from one interface or product suite. A BPMS provides the ability to create Composite Process Solutions (CPS) with all of these elements from a single toolset. A typical CPS may be a complex Order Management Cycle (OMC) solution with complex business rules, human intervention, various documents and data integrated to the CRM and ERP solutions in the business. The OMC solution needs to provide operational feedback and notifications to line managers as well as the ability to analyze completed processes and identify and opportunities to improve the processes by reducing bottlenecks and redundancy.

Leave a Reply

Your email address will not be published. Required fields are marked *