What is BPM
An introduction to Business Process Management
Confused About BPM?
Are you still confused as to what Business Process Management (BPM) is all about? Relax, you are not alone. There is a great deal of confusion around the term but we are here to help. Fundamentally, BPM can be defined as:
The discipline of modeling, automating, managing, monitoring, and
optimizing business processes to increase profitability
From this we learn that BPM is a discipline rather than a technology or a tool. This is a important concept. BPM is not merely software you purchase and install to fix a business issue; people play a significant role in business process management. In fact, a key difference between workflow and BPM software is that the BPM software goes beyond merely automating work to helping people with continuous process improvement.
What is a Business Process?
Before examining BPM and the Process Lifecycle further, let's clarify what we mean by business process. A business process is the set of activities required to accomplish a common goal. The activities may be performed by people or systems and are completed either sequentially or in parallel.
Types of Business Processes
When beginning BPM, it is important to realize that processes vary greatly. You can categorize your processes many different ways, including:
- Complexity
- Duration
- Volume
- Industry
- Department
The reason why this is important is because some types of processes are not well-suited to being managed within BPM software. For example, while highly repetitive or regulated processes tend to be excellent candidates, highly unpredictable and unstructured processes are not.
If you have any questions about the processes you would like to manage and whether or not they might be good candidates for BPM software, we encourage you to check out what is involved. Or, please contact us directly and we will be would be more than happy to assist you.
The Process Lifecycle
As you learned above, business process management is a discipline consisting of 5 phases: Model, Automate, Manage, Monitor, and Optimize. Let us explore each phase further.
Model
The first phase of BPM is to create a model. A model is an object created to represent something else. For example, a globe is a model of the planet Earth.
In the Model Phase, we begin by creating a high-level diagram of the process. Initially, the goal is to gather just enough detail to understand conceptually how the process works without being distracted by the fine detail of how it will be implemented.
Automate
In the Automate Phase, the model is expanded to create the specific set of instructions, forms, and rules needed to run the process. To continue our example, while a globe is a model of the Earth, a map provides more detailed directions to get from point A to point B.
Execute
The Execute Phase of BPM consists of interpreting the instructions created in the Automate Phase to manage the flow of work from the beginning of the process until its completion. In BPM software, the workflow engine is responsible for creating tasks and automatically directing them to the right people or systems based on the process rules much like the way a GPS system provides you with step-by-step driving instructions to your destination. And, while the driver could read directions manually from a map to accomplish the same goal, GPS systems are much more efficient and allow the driver to concentrate on driving rather than worry about navigation.
Monitor
The Monitor Phase is where process performance is measured. From our example, this might include knowing that it takes an average of 30 minutes to drive from Point A to Point B via city streets.
Optimize
During the Optimize Phase, managers use data and lessons learned from Manage Phase as a foundation to change the process. Optimization may include such things as enhancing the data collection forms, removing (or possibly adding) tasks, automating steps that were previously completed manually, or modifying the reports generated. The goal of the Optimize Phase is to identify changes that will improve the process. From our example, identifying that you spend 20 minutes of each trip in busy traffic would cause you to consider an alternate route to avoid traffic.
The Cycle Continues
Perhaps the most important aspect of BPM is the one most often overlooked – continuous improvement. As the saying goes, the only constant in life is change. Your firm changes, your environment changes, and your technology changes. Your processes also need to change.
It is best to consider the 5 steps of business process management as part of a continuous cycle. Once potential process changes are identified, the cycle begins again and the best suggestions are eventually implemented. In this way, you are able to make continual and incremental improvements to the process.
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