Sangeeta answered on
Apr 10 2020
Report on Business Process Management
BPM (Business Process management) is the process where the business processes are analysed and improved in order to make the organization more efficient and effective (Berg et. al. 2014). It is a systematic approach which helps the organization in making their workflow more capable so that they can adapt to the changing environment (Jeston and Nelis, 2010). BPM is the practice where the goals and processes are aligned for the business to grow. It helps the organization to understand how the processes need to be looked and controlled, which are present in the organisation (Jeston and Nelis, 2010). BPM helps the organisations to take steps, which are required for any business task to happen, mapping them to the existing processes and then in order to streamline and improve the processes the steps are taken in a more efficient manner (Mendling, 2008).
For any business to operate there are set of activities or events or tasks that must be performed in order to accomplish a specified goal, these tasks are known and business processes. BPM main focus is to improve the performance of the organisation by managing the business processes (Trkman, 2010). These processes are seen by the BPM as very important assets for an organisation. They have to be managed, analysed and also, developed further in order to deliver better value to the clients or customers. The main goal of Business Process Management is to make the human e
ors negligible and to reduce the miscommunication and also to focus on the requirements (Berg et. al. 2014). Further, taking the above discussion into consideration this particular paper attempts to examine the use of BPM and steps involved in its effective implementation.
Application of BPM to Business
There is no doubt in the fact that the importance of BPM is growing speedily with continuous progress in technology and need for companies to regularly update their procedures and practices (Bandara et. al., 2010). Earlier BPM was only focussing on how to achieve cost efficiency, improve the value of business and add productivity. However, in the last few years the focus has changed from cost cutting to serve customers (Rohloff, 2011). It is now focussing on collaborating across functional employees along with other stakeholders like customers, partners and other aspects of the business. BPM vendors are now investing into technologies that allow them to develop and deploy customer facing applications. Another change has been that the vendors are also investing in Artificial Intelligence in order to add new capabilities and also, there has been a move towards analytics and other techniques by which business processes can be improved. Moving ahead, the companies adopt BPM for several reasons and few of them involve increasing profit levels; lowering down costs and expenses; improving business agility; reducing risks and process consistency; improving customer satisfaction and lastly, higher satisfaction among the employees. Further, the continuing sections attempts to provide detailed insight into the reasons for adopting BPM.
· Increasing profit levels
For the reason that BPM results in enhanced business practices, the company would end up being highly effective, eventually resulting in increased profits (Becker, 2013).
· Lowering down costs and expenses
Effective procedures are likely to result in lesser production costs (Jeston and Nelis, 2010). For example, a lower rate of defect or an effective application of resources would result in lower costs across the company.
· Improving business agility
BPM takes in incessant re-assessment and adaptation of procedures. This makes the company used to continuous changes, resulting in higher business agility (Becker, 2013). This results in faster decision-forming and change management procedures, enabling the business to remain competitive in the market.
· Reducing Risks and Process Consistency
Any effective BPM practice requires business process mapping. By having in place proper step-by-step documentation of a procedure, the staff members are at all times mindful about the co
ect way of performing things (Berg et. al. 2014). This results in quite lesser of human e
· Improving Customer Satisfaction
There is no doubt in the fact that the company is expected to deliver a superior product by way of BPM. For instance, lower product e
ors result in lesser consumer complains.
· Increasing Employee Satisfaction
Business process automation works in line with the BPM. One among the highly common means of enhancing business effectiveness is through automating simple and menial procedures (Jeston and Nelis, 2010). This enables the staff members to concentrate upon the actual task, resulting in high job contentment.
Steps for Implementing BPM
Companies can effectively execute BPM approach by following the below steps:
Step 1: Forming a Team
To ensure that BPM is effectively implemented it is highly important for the company to form a committed project team for working on the particular procedure (Jeston and Nelis, 2010). The team should involve Senior Manager (having somebody from the higher position could make the decision-forming and approval procedures quite simpler); Operational Manager (they hold an easy contact with the field level staff members, who could prove to be exceptionally supportive with their contribution towards potential enhancements) and lastly, Reengineering Experts (they could be either hardware or software engineers) (Becker, 2013).
Step 2: Mapping
Business Process Mapping involving developing a “map” of a particular procedure. This is generally done by making use of flowcharts i.e. workflow diagrams or other graphing techniques like the value stream map (Berg et. al. 2014). Moreover, mapping assists in getting a superior view of the procedure from a top-down view standpoint.
Step 3: Analysis
Once the process map has been developed the company start with the analysis stage. This step varies greatly from process to process. The company must examine it there are any steps, which appear to be lagging; any frequently missed deadlines or delays; highly significant steps in the process and procedures, which are costing too much (Berg et. al. 2014).
Step 4: Redesigning and Implementation
Once the company holds a proper idea of what it is actually going to improve upon, it would prefer redesigning the old procedure and finally implementing the proposed modifications. Moreover, some of the best practices company could consider for making the process work better involve picking benchmark metrics; consulting field workers; defining the scope and lastly, accounting for long-term issues as well as risks (Jeston and Nelis, 2010).
Step 5: Monitoring and Benchmarking
The highly significant aspect of business process management is incessant enhancement. It is important for the company to monitor as well as examine the procedures long after completing a particular initiative (Berg et. al. 2014). In case if the company finds any potential issues or details it could improve upon, the entire procedure should be started again from mapping step.
Case Study Example of BPM Implementation
Multiplan is the renowned provider of healthcare cost management solutions. Processing more than 40 million medical claims yearly, MultiPlan is the only company providing admittance to national autonomous PPO (Prefe
ed Provider Organization) as well as medical reimbursement and negotiation provisions via just one electronic submission. The corporation became conscious about their need for replacing their present database with a highly operational procurement technique for dealing with capital and chief expenditures. Moving ahead, for combating with this problem, MultiPlan developed a healthcare BPM solution by making use of the BP Logix Process with its exceptional timeline software. The finance division was quite excited to observe the solution operating efficiently so the company implemented the process for all expenditures, instead of only large capital. Further, the IT division observed the effortlessness of customization and started creating procedures, which enabled documentation attachments like Return on Investment (ROI) analysis, vendor quotes and others.
To conclude, it can be clearly stated from the above discussion that BPM is very important for the organisation in the present time. It helps organisation to have a systemized process in order for the business process to work in time efficient way (Jeston and Nelis, 2010). The BPM which is being implemented helps the process to be smooth and also improve the same so that goals can be achieved (Berg et. al. 2014). BPM show the companies the way that how a process should operate based on the requirements which in turn will achieve the goals as well. Business process management understand the needs of the organization and applies the methods required to achieve the business process (Chang, 2016). It helps in not only reducing the costs involved but also reduce the human e
ors and things related to humans which is converting the manual process into automation. Business process happens to be the sequence of events required by the organisation to achieve the various business functions. There are various types of business process management which come into existence depending on the purpose of the process. BPM tools are required by the organisation to increase the productivity, push the revenue to grow and improve the overall effectiveness of the process.
When a new technology is implemented by any organisation it is met with lot of ba
iers or hindrances as there always will be employees who will find it difficult to understand it and adapt to the new technology. But there are various ways by which these ba
iers can be resolved and companies can effectively adopt approaches like BPM. First of all, if organisation will introduce new process management tool without making their employees understand the need and benefits of it they will face lot of problems and it might not be successful. Therefore, it is important for the organisation to make their employees understand why the new technology is being implemented, what will be its benefits and how it will help them to make their work more impactful (Berg et. al. 2014).
Secondly, every company has employees who are slow in adapting to new things despite being hard working and
inging value to the organisation. These employees are reluctant to change and prefer following the same routine but there are few employees who are open to learning new things (Chang, 2016). The organisation should train those employees in order to make aware of the new technology to them which in turn will create curiosity among other employees. For instance, when IBM tried to
ing new tool for rules which are IBM Web sphere iLog they trained employees who were open to the new technology and also, rewarded to the ones who were able to adopt early. This
ought the motivation among the employees who were being recognised for learning quickly and eventually this
ought the increase in the customer satisfaction. Therefore, in order to adopt some new process management tool the organisation need multiple approaches to make their employees work in achieving the desired goals.
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