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 management discipline rather than a technology or a tool. This is an important concept. BPM is not merely software you purchase, install and run to fix a business issue; people play a significant role in business process management. In fact, a key difference between workflow software and BPM software is that the BPM software goes beyond merely automating tasks to helping people make repeated process improvements.
What is a Business Process?
Before examining BPM and the Process Lifecycle further, it is worth clarifying what we mean by the term "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 simultaneously. It is best to think of a business process as the way that work should be performed.
Types of Business Processes
When beginning with 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 standardized, repetitive or regulated processes tend to be excellent candidates, highly unpredictable and unstructured processes typically are not.
If you have any questions about the processes whether your processes might be good candidates for BPM software, we encourage you to check out our what is involved page. 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.
During 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 and the main steps involved without being distracted by the fine detail of how it will be implemented.
Automate
During the Automate Phase, the model is expanded to create the specific set of instructions, form details, and rules needed to run the process. It is at this point where decisions about how to specifically implement the processes are made.
To continue our example, while a globe is a model of the Earth, a map provides the detailed directions between two cities and helps you decide which route to travel.
Execute
The Execute Phase of BPM consists of interpreting the instructions created during the Automate Phase to manage the flow of work from the beginning of the process until its completion. Within 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, tracked and reviewed for potential improvements.
From our example, identifying that travel time has increased by 30% might cause you to test an alternate route to avoid the new traffic signals.
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, adding or removing 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 travel time has increased by 30% might cause you to test an alternate route to avoid the new traffic signals.
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 and evolve to meet your needs.
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.
BPM for Legal Brochure