Understanding Business Process Management
Business Process is a collection of interrelated work to solve a particular problem. A business process can be broken down into several sub processes, each has its own attributes, but also contributes to achieving the goals of the main process.
Business process analysis generally involves mapping the processes and sub processes within them. The complexity of business process analysis makes us need good business process management.
Business process management is analyzing existing processes, designing new processes, and optimizing processes provided by various tools and methodologies. Business process management is popularly known as BPM. In BPM, we must be able to see the relationship between the quality system and current issues in economic life in many companies at once.
What Is business process management?
The definition of business process management is the operations management section that examines the improvement of company performance to achieve optimally managed company business processes. This is described as "process optimization process".
BPM can support organizations to be more efficient, effective and able to change so it can affect the costs and revenues of an organization. This is in contrast to the traditional functionally focused hierarchical management approach.
In BPM, processes are important assets for an organization to understand, manage and develop. It also helps to understand the products and services that customers perceive as good. So, companies can make appropriate policies. BPM can also be supported by the use of technology. Many BPM discussions use two main references, namely people and/or technology.
Business Process Management is also widely interpreted as an approach to increase effectiveness and efficiency through building process automation and agility to manage change. BPM helps companies monitor and control all elements of business processes, such as employees, customers, suppliers, and workflows.
BPM improves the quality of business processes by providing a better feedback mechanism. Continuous and real-time reviews will help companies identify problems and then solve them more quickly before the problem develops into a bigger one.
Business process characteristics
To be able to make proper business process management, we must first understand the characteristics of business processes. Some of the general characteristics that are considered a must have a business process are:
- Definitive: A business process must have clear boundaries, inputs, and outputs.
- Sequence: A business process must consist of activities that are sequential in time and space.
- Customers: A business process must have a recipient of the results of the process.
- Added value: The transformation that occurs in the process must add value to the recipient.
- Linkage: A process cannot stand alone, but must be linked in an organizational structure.
- Cross function: A process generally, although not necessarily, includes several functions.
Solution Components in Business Process Management
Every Business Process Management solution has four main components that must be met. The following are the components of a business process management solution:
1) Modeling
Users can define and design the structure of each business process graphically. Process Managers can design a process and all elements, rules, sub-processes, parallel processes, exception handling, error handlers, and workflows easily without the need for special programming skills and without the need for help from IT staff.
2) Integration
BPM can link each element in the process so that these elements can collaborate with each other and exchange information to accomplish their goals. At the application level, this can be interpreted as the use of Application Programming Interface (API) and messaging. For users, this means availability
a workspace on his computer or wireless device to do tasks according to his role in a business process.
3) Supervision
Users can monitor and control the performance of ongoing business processes and the performance of every personnel involved in these business processes. Users can also get information about processes that are currently running, or those that have been completed, along with the data in it.
4) Optimization
Users can analyze and monitor a business process, spot inefficiencies, and also allow users to take action quickly and modify the process to improve its efficiency.
Benefits of Implementing Business Process Management
What exactly will be obtained by companies that utilize BPM solutions in managing and optimizing their business processes? There are many advantages of utilizing a Business Process Management solution, such as:
- facilitate the company in modeling its business processes, automate the running of the business process, monitor the process, and provide an easy and fast way when the company will make changes to business processes to improve its performance.
- help companies to automate tasks that are still done manually. BPM solutions can automate the approval and disapproval processes, notifications and status reports.
- Support integration between business processes can be done easily and quickly.
- assisting companies in creating exception handling and alternative processes that are needed to deal with problems in today's highly dynamic business.
- improve business responsiveness through the ability to obtain information quickly and in real-time.
- reduce the time required for the implementation of a business process.
- increase the productivity of each employee.
Business processes usually require a lot of people and resources. A good BPM solution can reduce the amount of resources required for a process. This is information related to business process management. Hopefully it can be understood easily and useful.
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