BPM is a solution for modeling, automating, managing and optimizing business processes to bring the greatest benefit to an organization or a company. If according to the above definition, all systems that are able to fully meet those criteria can be called BPM – Business Process Management System (BPMS).
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What is a business process and how can BPM improve the business process?
A business process can be defined as follows: “It is a sequence of structured or semi-structured work performed in a serial or parallel sequence by two or more individuals to achieve a goal. achieve a common purpose.”
There are five key points in the above definition:
A business process consists of a “sequence” of tasks. A job done by a non-person is called a business process. With BPM, by modeling the business can make it easier to identify some of the work that can be eliminated or automated. A business process is “a structured sequence of work or semi-structured”. That means that the sequence of work is done in a logical way, not arbitrarily. Based on those rules, the process can be executed either fully or semi-automatically. Jobs can be “executed in serial or parallel sequence”. Most of the work is done sequentially from start to finish. However, in some cases, it can happen that 2 or more jobs are done at the same time. With BPM, not only does it guarantee the routing of those jobs explicitly, it also helps to check if the work in the process is done and where the work is going. have at least 2 people or applications involved in the work in the process. When information is being communicated from one person to another, there is the possibility of information loss, errors or simply typos in the report. This possibility increases as more individuals or applications join the workflow. By automating the steps, the possibility of errors is reduced. In addition, if an additional application is involved in a certain stage of the process, the integration will be much simpler by using predefined information according to a standard template. must be carried out with the aim of working towards a common end goal. By applying the principles of BPM, we can focus our attention on the end results instead of spreading our attention across multiple stages.
History of BPM
In the process of its formation and development, BPM has gone through 3 main stages (3 waves of BPM development)
The first wave, introduced in Fredrick Taylor’s “theory of management” in the 20th century, said that “process is hidden in the work process when manual details are hidden”. the second, introduced in the last decade, states that “processes can be manually rebuilt within the same range of operations as before”. Under this solution, changes in the process can be reworked, but the basic functionality will exist sporadically in the software, just like feature-rich ERP applications with little flexibility. The third wave of BPM enables companies and employees to quickly create and optimize business processes. Adaptability to change is a key design goal. Through flexible business processes, value chains can be continuously monitored and improved.
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Despite using the same term, BPM in the third wave is fundamentally different from the first two waves. The third wave BPM was created by a number of previous technologies. Some of those technologies are:
Workflow: Workflow is the automation of business processes in whole or in part. In the process, documents, information or tasks are transferred from one person to another for performance.
Document management: Document management solutions define the route for documents to serve business requirements. However, it is not capable of creating complex processes unrelated to documents. Enterprise Content Management (ECM): ECM solutions help manage and promote information exchange. Enterprise Application Integration (EAI): EAI solution provides the ability to share unlimited information between applications and data sources within an organization. Enterprise Resource Planning (ERP): ERP is a business management system that integrates all business aspects from planning, manufacturing to sales and marketing. Customer Relationship Management (CRM): CRM is strategies, methods and technologies in the field of customer relationship management. “Any organization that wants to grow its business scale or profitability must consider the challenges surrounding customer relationships,” said Ms. Asia – Pacific) confirmed. It’s about how to acquire new customers at a more affordable cost, increase revenue from existing customers, increase retention of profitable customers, and reduce operating costs. Business Process Reengineering (BPR): BPR is a strategy and solution to restructure and reorganize the way business processes operate in order to achieve high efficiency in business processes. business and production activities.
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A complete BPM solution will be the synthesis and extension of all the above techniques and technologies to form a single model. Of all the solutions above, Workflow Management has the most in common with BPM. However, one thing should be kept in mind that Workflow is not BPM. For many years, business processes have been covered by management theories and technologies: Business Change Management (BCM), Business Performance Management, Reorganization Business Process Reengineering (BPR), Six Sigma, Workflow, Orchestration, Composite Applications, Web Service Choreography, Real-Time Enterprise, flexibility ( Agility), … These are just a few of the terms mentioned in the field of business process management. In fact, business process management is a very general concept that covers all business-related activities of an enterprise and a true BPM system must include all of the above applications. That can give us a belief that BPM will definitely bring great benefits, the most basic of which can be mentioned as follows:
Turn paper-based business processes into electronic ones. Reduce manual steps, limit mistakes while improving efficiency and productivity. Improve control, accountability and flexibility of the business. It will streamline internal and external business processes, reduce redundancy and increase automation. BPM provides the shortest path from process design to the system that uses that process. It is not strictly “rapid application development – RAD”. Instead, it separates application development from business cycles. BPM supports top-down and bottom-up processing model BPM is a platform for sharing end-to-end business processes. similar to how DBMSs share data, both between applications and business partners. BPM provides a foundation on which to build the next generation of business applications. BPM supports the ability to integrate, collaborate, combine, and disaggregate processes regardless of their origin and independence. with different technical infrastructures. BPM creates process templates that can be reused. BPM is defined by the ability to change a business process rapidly according to the life of that business (maybe day to day, week to week). or quarterly).Provides real-time feedback on process health.Gives process time and cost assessments. On that basis, methods for process optimization are proposed. BPM processes are transparent and continuous and include all information about the lifecycle components of a process. BPM Support activities that frequently change, monitor and manage work between companies. It helps to strengthen and improve the links in the entire process. BPM supports a collaborative environment for partners and provides a means to evaluate and analyze processes.
