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Business Process Management
“Companies are as effective and efficient as the processes they perform, added to the degree of expertise of their employees”
Before getting acquainted with what is Commercial Process Management, know what is a process, but now well, what is a process?
A process is nothing more than a set of mutually related activities and that when interacting simultaneously or successively in the input elements, it becomes products or results. A business process is a set of activities that are carried out in coordination in an environment, business and technical organization, these activities achieve the business objective and each business process represents a unique organization, being able to interact with other external entities.
Therefore, the BPM indicated by its acronym in English Business Process Management can be defined as a paradigm in terms of flexibility, management and control of information and data. At the same time, it can be seen as a work philosophy that provides strategies for the development of processes. It is also considered a collaboration between business people and technology to promote effective, agile and transparent business processes.
What does Business Process Management allows in organizations?
Effective support for decision making in an organization
Allows to restructure the operation’s logic of an institution to processes
Reduce the implementation costs of distributed application solutions, favouring cycles of continuous improvement of the workflows of an institution.
Achieve a good understanding of the operation of the institution.
Increase the meeting of requirements for the beneficiary.
Reduce the margin of error, attracting elements that allow you to visualize the status of them during each stage.
Ensure that processes are executed efficiently, complying with previously established quality standards, and helping to obtain information that can then be used for improvements.
Improve the capacity of institutional adaptation to new environmental requirements
Increase the effectiveness of internal control.
Improves management documentation / procedures.
Within BPM there are different tools that facilitate the processes and automated transactions, documentation, flows and other actions required in fairs processes. It also includes integrated and free tasks that increase the power of the system, as well as innovative and exclusive features (Graterol, Hernández, and Orozco, 2011)
All accessories for people with disabilities: JBPM, BONITASOFT, INTALIO, OPENBRAVO AND BIZAGI
The BPM has the following components:
BPA – Business Process Analysis: support the analysis, design and model processes.
BAM -Business Activity Monitoring: allows to implement along with management control processes in real time.
BPE – Business Process Execution: covers both the execution of the company’s processes and the orchestration and SOA integration with back-office applications.
BRE – Business Rules Engine: support the administration and execution of business rules independently of the systems that use them.
Whose life cycle is?
Design: Existing processes are identified and restructured or eliminated and new ones are designed that are theoretically effective. Process flows, actors, alerts and notifications, escalations, Service Level Agreements, Standard Operating Procedures and task delivery mechanisms are represented.
Modelling: Modelling for the theoretical design and introducing combinations of variables to take into account (costs, efficiency, performance indicators). It also includes analysis “What happens if …” (eg, what happens if you want to develop the same activity with 80% of the budget?)
Execution: Software’s tools begin to automate and change the current processes and new ones begin to work. The results are documented to generate knowledge, purchases are made in the necessary technological infrastructure, staff training, goals are set and the design already set up is put in place, tangible results are produced.
Monitoring: The processes are monitored individually, their performance is evaluated, and results are analyzed and compared with the previous ones. Organizational attractors or bosses are responsible for motivating and correcting those who perform tasks.
Optimization: Information is taken from the modelling stage and performance data from the monitoring stage and compared, identifying the bottlenecks in the processes (capacity or agility that is limited by one or more resources) and savings potential opportunities and improvement. Then these improvements are applied to the design. If the optimization is not good, a new process engineering will be carried out (re-structuring the processes in a more drastic way).
Do you need a BPM organization?
The answer to this question would be. It is necessary in an organization because the processes involve human tasks and various information systems and there is little visibility of them.
Although there are procedures that describe work tasks and processes, it is difficult to verify interactions, contradictions and compliance with them.
It is difficult to identify bottlenecks in processes.
Much of the inefficiency of the processes is due to the lack of clear responsibility for them.
It is often difficult to indicate precisely who should perform some tasks.
After achieving a goal, it is difficult to know who did what?
Lack of adequate measures to evaluate the performance of employees.
It is very important to mention that business orientation has evolved since the beginning with a marked trend in recent years, this isn’t only focused on terms such as production, sales and marketing; but nowadays the businesses are focused on the client.
Currently, technology is very important to optimize relationships with customers.
It can re-design business processes, facilitating changes in work practices and the establishment of innovative methods that unite the company with its customers, this becomes the starting point of the rethinking and renewal of business processes, in a constant search for improvement.