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Business Management Review | Tuesday, September 06, 2022
Innovation and Transformation Agility have become crucial in the hyper-intense environment of today, and BPM offers a path to achieving that agility.
FREMONT, CA: BPM means different things to distinct people. Every player in a business has a diverse perspective and definition of BPM that is affected by his or her role.
For some, BPM is all concerning technology.
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It is the advancement of application development and a method to accomplish the automation of processes. For others, BPM regards optimization: as a world of methodologies like Six Sigma, Lean, CI, or TQM. For many, BPM is a method to communicate how they want work to get done and facilitate change. And for others, BPM is a method to gain visibility into how things work.
While none of these definitions are wrong, they are driven by the narrow perspective of a specific role or function. Each component is just a contributing subpart of BPM as a whole. If these components are commenced in isolation, the companies applying them risk creating barriers to understanding how to accomplish true BPM and will not accomplish the full range of potential benefits.
A common example of this is the automation of processes, which could be a part of BPM, but is not BPM in itself. A simple proof is that an infinite number of processes could be managed, optimized, and monitored, not even automated.
It is also true that automating an inefficient process is possible. It would be an extent to claim the automation of a poor and ineffective process to be BPM. Yet the business that has effectively automated a poor process is often persuaded they are successfully applying BPM.
Hence, the definition of BPM should incorporate the aspects enumerated above but must also incorporate a more comprehensive and business results-oriented objective. BPM should be seen as a discipline, a comprehensive methodology that is driven by business outcomes:
BPM(Business Process Management) – a holistic, systematic method for attaining optimized business outcomes.
One direct way of looking at BPM is to think of the 10 W's connected with a business: What, Why, Where, When, Who, With, Watch, Way, Worry, and Wealth.
By learning WHAT is done, WHY, WHERE and WHEN it is done, WHO does it, the WAY it is performed, and WITH what resources, all while having a performance WATCH, determining what to WORRY about and how to lessen those worries, a range of methods and tools can be utilized to attain the best results with the minimal cost and to achieve the most WEALTH.
The uninterrupted application over time of these ways and tools on the W's of a business in a typical pursuit of excellence cycle is the core of BPM.
Business Process Management: What does it deliver?
BPM allows organizations to array business functions with customer needs and helps executives determine how to deploy, monitor, and measure company resources. When properly executed, BPM can enhance efficiency and productivity, reduce costs, and reduce errors and risk – thereby optimizing results.
Performing best practices in BPM contributes to sound financial management and offers visibility into how well an organization follows in meeting its goals.
Businesses utilizing a holistic method to BPM derive tangible benefits:
• Revenue Growth
• Cost Reductions
• Compliance
• Risk Management
• Cost Avoidance
• Productivity Improvements
• Improved Customer Experience
• Competitive Advantage
• Transformation and Innovation Agility
• Tie Strategy to Execution
• Digital Transformation
Forrester's research with their clients utilizing BPM shows that BPM projects deliver 30-50% productivity gains for processes involving mainly back office staff. They generally deliver 15-30% productivity gains for processes involving knowledge workers.
A Gartner report states that in a survey of BPM experiences of their clients, 80% of enterprise companies conducting BPM projects will undergo an internal rate of return better than 15%.
Business Process Management – Why?
The landscape has to turn intensely competitive for almost all businesses. For some businesses, this is catalyzed by globalization; for others, weakness in their local market economies is the driver of increased competition.
As competitors' entry barriers become lower, businesses have to fight harder than ever to keep and grow their market share in an unclear economy. To compete successfully in today's environment, businesses must find ways to reap the benefits BPM delivers. Else, at best, they are missing out on profits, and at worst, they risk being overrun by their competitors.
Innovation and Transformation Agility have become crucial in the hyper-intense environment of today, and BPM offers a path to achieving that agility. A BPM approach will help businesses innovate and transform to achieve more business value.
Business Process Management has turned into a mission-critical business capability.
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