Business Process Management: Your Complete Guide
Business Process Management (BPM) improves and standardizes processes in an organization. By eliminating human errors and process gaps, compliance can be improved while efficiencies are increased. This guide explains business process management and how it can contribute to any organization's success.
What is Business Process Management
Business process management (BPM) is a discipline for developing, modeling, executing, monitoring, and optimizing business processes. Business process management aims to automate routine interactions between people and systems by establishing a consistent process. BPM reduces the business's operational costs by reducing waste, reducing rework, and increasing the team's efficiency. BPM methods allow organizations engaged in process management to choose the best approach for their needs.
Business process management is not a software product!
Nonetheless, standard and automated business process workflows can be implemented with the help of business tools. For example, CEO-ME's business development software automates complex processes that require multiple steps. However, business process management is not a software product in and of itself. It is not the same as task management. The goal of task or project management is to organize or handle a set of tasks.
The use of project management software can help in managing ad-hoc projects. In contrast, Business process management concentrates more on maintaining a predictable set of ongoing processes. It is used to handle repetitive, continuous operations.
Types of Business Process Management Systems
A business process management system can be classified according to its purpose. Here are the two types of business process management:
System-Centric Business Process Management (or Integration-Centric BPM)
This business process management methodology manages processes based on existing business systems (HRM, CRM, ERP) without much human involvement. System-centric business process management software comes with extensive integrations and API access to allow you to execute business processes quickly and efficiently. A business process management example of an integration-centric process is online banking, in which several software systems are integrated.
Human-Centric Business Process Management
A human-centric approach considers the people first, supported by a variety of automation functions. These are processes that humans primarily execute, and automation does not easily replace them. Individual approvals are often required for these processes. In addition to providing customer service, handling complaints, onboarding employees, and conducting e-commerce activities, human-centric processes include submitting expense reports.
The 5 Steps in the Business Process Management Lifecycle
Step 1: Business process analysts examine current business rules, interview stakeholders, and discuss intended outcomes with management. During the process design phase, the aim is to determine whether the results align with the organization's mission and understand the business rules.
Step 2: Modeling is the process of defining, identifying, and representing the new processes that will support the current business rules for various stakeholders.
Step 3: Test the business process with a small group of users first, making it available to everyone. Automated workflows should be artificially slowed to minimize errors.
Step 4: Track metrics using reports or dashboards by establishing Key Performance Indicators (KPIs).
Step 5: An organization can optimize operations by improving processes With an effective reporting system in place. Business Process Optimization (BPO) refers to the process improvement of the business processes as part of a comprehensive strategy to streamline and improve efficiency.
Benefits of Utilizing Business Process Management?
Business process management applications help organizations realize their greater organizational goals and move toward full digital transformation. BPM offers the following benefits:
1. Improved Business Agility: To remain competitive, organizations must continually change and optimize their business processes. BPM enables organizations to pause, modify, and re-execute business processes. Workflows can be adjusted, reused, and customized to make business processes more responsive and gain a deeper understanding of how process changes affect the business.
2. Reduced Costs and Higher Revenues: Business process management eliminates bottlenecks, which leads to reduced costs over time. As a result of shorter lead times for service and product sales, sales and revenue can increase. Moreover, BPM solutions can be used to allocate and track resources to reduce waste, reduce costs and improve profits.
3. Higher Efficiency: Optimizing business processes can improve process efficiency from end to end. Process owners can closely monitor delays and allocate additional resources if needed with the right information. By automating and removing repetitive tasks, business processes become more efficient.
4. Better Visibility: Business process management software provides real-time monitoring of key performance metrics. Transparency is essential for improved management, allowing for streamlined processes and structures and tracking results efficiently.
5. Compliance, Safety, and Security: An integrated BPM will ensure that an organization stays on top of regulations and standards. Documenting procedures and facilitating compliance can also be beneficial to safety and security. Indeed, a proper employee database management system is vital to any organization with a workforce. This will allow organizations to motivate their employees to safeguard the organization's assets, such as private information and physical resources, from misuse, loss, or theft.
Why Implement Business Process Management at Your Organization?
The following examples demonstrate how implementing business process management can result in a high return on investment.
1. Processes that change due to regulatory compliance, such as changes in finance or privacy laws affecting customer information management.
2. Multi-unit, multi-department, multi-function work processes that require orchestration and coordination across various business units.
3. Improves a crucial performance metric by implementing mission-critical processes.
4. Manually handled exceptions and quick turnaround processes for business processes.
5. Managing large business databases with higher efficiency and level of organization.
Implement Process Automation Across the Organization With CEO-ME
With CEO-ME project management software, you can streamline your business processes, improve organizational productivity, and reduce costs.
With CEO-ME's free business process management software, you can reduce repetitive tasks for your employees and ensure accurate, error-free, and prompt data entry and process standardization. We offer software that boosts team productivity by reducing repetitive grunt work, so your employees can concentrate on more important tasks of higher business value. Using a coding-free drag-and-drop project management system, you can build dynamic workflows with several steps. Automation projects do not have to be carried out by your IT/Engineering team. CEO-ME provides an elegant way to orchestrate multiple systems and actions. Try it out for free!