Business Process Management (BPM) is a systematic process of creating, assessing, and improving business processes (BPs). BPM applies to all organisations (including not-for-profit) and government agencies/departments.
Why is BPM important
- Every business has BPs Every business needs and has BPs. BPM ensures these processes are defined, efficient, and optimised for success.
- BPs are complex Business processes are complex and often span multiple departments and functions. BPM helps break down this complexity, making processes easier to understand, track and improve.
- BPs change over time BPs must adapt to new technologies, market shifts, and internal improvements over time. BPM allows organisation to assess and efficiently evolve their BPs.
Four stages of BPM
- Create a model of the current business process
- The model is described in Business Process Model and Notation (BPMN)
- “As-is” model documents the current business process
- Business users review and adjust the model, and make changes to solve business problems - Process Improvement
- The result is a “to-be” model which reflects improved business process
- Create system components
- Create or procure Information System (IS) to support/facilitate new process
- Implement new business process
- Change the way the organisation operates, train people, implement IS
- Create policy and procedures
- Create policy and procedures to assess process effectiveness on an ongoing basis
- Ensure whoever executes the process will result in the same outcome
- Adjust and repeat the BPM cycle
BPM varies in scope
- Functional processes (Within a business function or department)
- Activities in a single department or function
- BPM easier at this level
- May lead to “isolated silos” where departments operate independently. Hindering overall efficiency and collaboration
- Cross-functional processes (Among multiple business functions or departments)
- Activities across/among many business departments
- Eliminates or reduces isolated system and data, promoting better integration and information flow of the organisation
- e.g. ERP
- Inter-organisation processes (Cross organisational boundaries)
- Activities that cross organisational boundaries
- More difficult than cross-functional processes
- Requires negotiation to result conflicts between priorities/objectives of parties
- e.g.Supply Chain Management (SCM)
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