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Business Process Management

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Business process management (BPM) is the discipline of improving a business


process from end to end by analyzing it, modelling how it works in different
scenarios, executing improvements, monitoring the improved process and
continually optimizing it.

A business process is an activity or set of activities that will accomplish a


specific organizational goal.

BPM is not a one-time task, but rather an ongoing activity that involves
persistent process re-engineering.

BPM often involves automating tasks within any given business process,


although BPM is not a technology, and process improvements can happen
outside of automation and without technology.

Organizations engaged in BPM can choose to follow one of the various BPM
methodologies, which include Six Sigma and Lean.

What BPM is used for


BPM is used on an ongoing basis for business process improvement.

It is meant to improve order, insight and efficiency of the collective workflows


that make up any given business process. BPM is meant to reduce any chaos
within those collective workflows that make up a process and eliminate ad hoc
workflow management.

The goal for organizations engaged in BPM is to take control of their myriad
processes and constantly strive to optimize them to create a more efficient
organization better capable of delivering its end products and/or services.
Thus, BPM is intended to support organizational leaders as they seek to achieve
not just operational efficiencies, but as they work to realize their overarching
goals for the organization as a whole.

BPM activities
BPM consists of multiple steps. Some BPM experts list five steps (designing,
modeling, executing, monitoring, optimization), while other experts list six or
more steps and/or use different names for these steps (i.e., analyze, model,
implement, monitor, manage, automate).

Despite the variances in the number and names of the steps, the components of
the BPM lifecycle generally include:

 Design the business process as it should ideally exist and analyze the
process as it currently exists and what is needed to improve it;
 Model -- or consider -- how the business process operates in different
scenarios;
 Implement -- or execute -- improvement solutions, including
standardization and process automation;
 Monitor improvements; and
 Continue to optimize the business process.
Why business process management is important
BPM allows organizational leaders to understand the various processes that
happen within their organizations, analyze them from end to end and improve
them on an ongoing basis. This activity allows organizational leaders to
optimize end-to-end business processes and not simply improve individual
tasks, thereby, giving organizational leaders the ability to have a greater impact
on outcomes.

Well-executed BPM can reduce waste, cut down on errors, save time and
generate better services and products.

Moreover, well-executed BPM continually delivers improvements.


Because BPM is not a one-time task, organizational leaders manage the end-to-
end business processes on a continuing basis and are, thus, focused on finding
new ways to optimize end-to-end business processes as industry and market
trends introduce new pressures and new opportunities, and as emerging
technologies better support or automate tasks within the overall process.

BPM tools and vendors


A BPM suite (BPMS) helps organizations in their BPM activities by offering a
suite of tools and functions for mapping, modelling, automating, managing and
optimizing.

BPMS generally supports activities ranging from business rule management to


user communication to analytics. Intelligent BPMS, or iBPMS, offers next-
generation capabilities such as adaptive analytics and advanced collaboration
tools.

There are dozens of BPM software options on the market. Vendors include
Appian, BP Logix, IBM, Kofax, Oracle, Pegasystems, Red Hat and Tibco
Software.

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