What Is Business Process Management?

Organizations of all sizes are constantly forced to deal with the changing business environment. The changing marketplace, technological advances, and shifting customer priorities create challenges that businesses must overcome every day. All successful organizations need efficient processes to convert their competencies and resources into value for their customers. Success requires a delicate balance between establishing efficient, repeatable processes and maintaining the agility to adjust or completely replace these processes to fit current conditions.
Common challenges include the following:
People acting in concert
The actions of good managers, along with prior training and experience, largely determine how effectively members of a group can work together to bring about an aggregate result. Yet all of these factors take time to develop, and might never fully develop if the pace of change is high. A well-designed process management system can help by orchestrating—by way of notifications, reminders, delivery of resources, and tracking—the work of many individuals involved in a business process. It can also automate much of the startup (for example, finding the right forms, locating relevant policies and procedures, and so on) and cleanup (for example, forwarding to the next person in the process) in each individual activity.
Interleaving automation
Not all processes can be usefully automated, but even partially automated processes are more efficient than completely manual processes. A well-designed process management system can help identify where automation can have the highest impact, along with an operational framework for deploying and managing automated processes.
Performance analysis and optimization
High-level summary results can indicate problems, but detailed analysis is required in order to pinpoint and fix bottlenecks and inefficiencies in operations. A properly implemented process management system can collect detailed metrics on actual performance of key processes in real time, giving management a concrete basis for making decisions about how and when to make improvements.
Business process management (BPM) is a disciplined approach focused on aligning all aspects of an organization on fulfilling the needs of its clients. It emphasizes integrating technology into the business process such that the process itself drives the business goals, decoupled from the underlying systems and applications. Specifically, BPM emphasizes how the work is done within an organization, in contrast to what a product does.
Moreover, BPM can be used to understand relationships between processes – both within the organization and across organizational boundaries – which, when included in a process model, allow sophisticated, horizontal reporting and analysis.
Critical success factors for BPM include the following:
  • understanding the current state business process and client needs
  • applying governance and standards based on business policies and practices
  • using metric and key performance indicator (KPI) definitions that support measurable business goals
More specifically, a business process is a collection of activities designed to produce a specific output for a particular objective, possibly involving both human and system interactions. Essentially, a process is an ordered sequence of work activities defined with respect to time and place, with a beginning, an end, and clearly defined inputs and outputs: a structure for action.
Initially, BPM focused on automation of business processes, but it has evolved to integrate manual processes in which human interaction takes place in series or parallel with the use of technology. For example, in basic workflow systems, when individual steps in the business process require human intuition or judgment to be performed, these steps are assigned to appropriate members within the organization. Consequently, the difference between workflow and BPM is not distinct. Generally, workflow management is considered to be a subset of BPM that emphasizes static routing and administration of human tasks. In contrast, a business process might include a combination of automated and manual activities with dynamic routing based on embedded business logic. Today, many products include varying aspects of customization and control, but both approaches emphasize the elimination of bottlenecks, minimization of redundancies, and improved operational efficiency.
In short, workflow systems can be thought of as a sort of operating system for the enterprise, whose function is to orchestrate and track work, whether automated or carried out by humans. In the same way that databases capture what an organization consumes and produces, workflow systems encapsulate how the organization operates.