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Executive Overview of Business Process Management

        posted by Anna Mar, Simplicable, February 04, 2011

Simple concepts are sometimes the most misunderstood. This is the case with Business Process Management (BPM) — a critical management approach for automating and optimizing business operations.

Business Process

It may seem like a simple concept — but the term Business Process is often misunderstood.

A business process is any business activity that is repeatable

It's as simple as that.

Business Process Granularity

Business processes can be viewed at the organizational level, departmental or team level. In other cases, they may be very low level — describing how one individual does a particular task.

The following is an example of a high level business process (quote to cash for an IT service provider). High level processes can be used to track performance of departments and ensure they are meeting SLAs.
bpm example

Low level business processes can be used to track the performance of staff and ensure a standard approach to common business activities.
business process management example

Business Process Management (BPM)

Business Process Management is a management approach that does not necessarily have anything to do with software. Business Processes are documented, executed, controlled, monitored, measured and optimized in a continual cycle.

business processs management overview

Document

A Business Analyst leads the discovery of as-is processes and the design of to-be processes.

It is critical to have process owners and working level staff involved in the documentation phase. Ideally, this step should be facilitated by process experts with deep experience in the business domain.

Execute

The new processes are implemented and executed. This may entail the deployment of BPM systems, training staff and organizational re-alignments.

Control

Processes should be audited to ensure compliance to quality and security standards. Ideally, controls happen in real-time so that problems are flagged and corrected early.

Monitor

Run-time processes are monitored and escalations are made when a process breaks or SLA targets are exceeded.

Measure

Key process metrics such as time to market, customer satisfaction, costs and sales figures are measured. Ideally, decision makers can view metrics in real-time and drill down from high level to low level metrics.

Optimize

Monitoring and measurement data is used to identify bottlenecks and other inefficiencies in the process. These gaps are addressed by a process of continual improvement using the same six steps.



   

 

Executive Overview of Business Process Management

Want to automate, monitor, measure and continually optimize your business? You might need BPM.

Who ever came up with BPM terminology had a good sense of humour.


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