subject: Business Process Management Goals [print this page] Business Process Management Goals Business Process Management Goals
Business process management (BPM) is a systematic approach to making an organization's workflow more effective, more efficient and more capable of adapting to an ever-changing environment. BPM is a management approach focused on aligning all aspects of an organization with the wants and needs of clients. It is a holistic management approach that promotes business effectiveness and efficiency while striving for innovation, flexibility, and integration with technology. Business process management attempts to improve processes continuously. It could therefore be described as a "process optimization process."
The goal of BPM is to reduce human error and miscommunication and focus stakeholders on the requirements of their roles.BPM is a subset of infrastructure management, an administrative area concerned with maintaining and optimizing an organization's equipment and core operations.
Business process management activities can be grouped into five categories: design, modeling, execution, monitoring, and optimization.
1) Design
2) Modeling
3) Execution
4) Monitoring
5) Optimization
Design:
Process Design encompasses both the identification of existing processes and the design of "to-be" processes. Areas of focus include representation of the process flow, the actors within it, alerts & notifications, escalations, Standard Operating Procedures, Service Level Agreements, and task hand-over mechanisms.
Modeling:
Modeling takes the theoretical design and introduces combinations of variables e.g., changes in rent or materials costs, which determine how the process might operate under different circumstances.
Execution:
One of the ways to automate processes is to develop or purchase an application that executes the required steps of the process; however, in practice, these applications rarely execute all the steps of the process accurately or completely. Another approach is to use a combination of software and human intervention; however this approach is more complex, making the documentation process difficult.
Monitoring:
Monitoring encompasses the tracking of individual processes, so that information on their state can be easily seen, and statistics on the performance of one or more processes can be provided. An example of the tracking is being able to determine the state of a customer order (e.g. ordered arrived, awaiting delivery, invoice paid) so that problems in its operation can be identified and corrected.
Optimization:
Process optimization includes retrieving process performance information from modeling or monitoring phase; identifying the potential or actual bottlenecks and the potential opportunities for cost savings or other improvements; and then, applying those enhancements in the design of the process. Overall, this creates greater business value.
