Business Process Management Lifecycle

In this lesson, you’re expected to learn about:
– the basics of BPM
– the different phases of the BPM lifecycle

What is a Business Process?

A business process is the set of activities required to accomplish a common goal. The activities may be performed by people or systems and are completed either sequentially or in parallel.

What is Business Process Management?   

Business Process Management (BPM) can be defined as a discipline of modeling, implementing, executing, monitoring, and optimizing business processes to increase profitability.

Business process management is a management approach focused on aligning all aspects of an organization with the wants and needs of clients. It is a holistic management approach that promotes business effectiveness and efficiency while striving for innovation, flexibility, and integration with technology.

Business process management attempts to improve processes continuously. It could therefore be described as a “process optimization process.” 

It is argued that BPM enables organizations to be more efficient, more effective and more capable of change than a functionally focused, traditional hierarchical management approach.

Traditionally, automation of business processes using workflows meant implementing the automated process and no more. Business Process Management takes this to the next level – it is about continuous business process improvement.

Types of Business Processes

When beginning BPM, it is important to realize that processes vary greatly. You can categorize your processes in many different ways, including:

– Complexity
– Duration
– Volume
– Industry
– Department

The reason why this is important is because some types of processes are not well-suited to being managed within BPM software.

For example, while highly repetitive or regulated processes tend to be excellent candidates, while highly unpredictable and unstructured processes are not.

Advantages of Business Process Management

The most significant BPM advantages encompass:
· Efficiency
· Visibility
· Control
· Flexibility
· Speed
· Production Management
· Performance Management
· Resource Management

[Optional] What is BPM?
Read this article to learn more:
The Process Lifecycle

As mentioned earlier, business process management is a discipline consisting of five phases: model, implement, execute, monitor, and optimize. 

1) Model

– Capture the business processes at a high level.
– Gather just enough detail to understand conceptually how the process works.
– Concentrate on ensuring the high level detail is correct without being distracted by the detail of how it’s going to be implemented.

Historically carried out by business analysts, but simple-to-use technologies such as Sequence are allowing the business manager to undertake this task, as this is typically where the in-depth knowledge required to model the process lies.

2) Implement

Extend the model to capture more detail required to execute the process, e.g.
– Recipients
– Form controls and layout
– Email message content
– System integration

3) Execute

Instances of the process are launched and interacted with by the end users.

One of the ways to automate processes is to develop or purchase an application that executes the required steps of the process; however, in practice, these applications rarely execute all the steps of the process accurately or completely.

Another approach is to use a combination of software and human intervention; however this approach is more complex.

4) Monitor

– Measure key performance indicators and process performance.

– View these vs. SLAs (Service Legal Agreements) via graphical dashboards and textual reports to monitor how the process is performing.

– Understand where the bottlenecks / inefficiencies in the process are.

5) Optimize

– Improve the business process and performance against SLAs by reducing the bottlenecks / inefficiencies identified during monitoring.

– Simulate these changes using a “what-if” simulation.

– Determine which changes will deliver the maximum benefit.

– Fine tune the process.

Continuous Business Process Improvement

Incorporate these changes into the model and repeat the cycle for continuous business process improvement.

Changes in the business that result in a need to change the process can be quickly introduced into the process at the Optimize stage.

For automating an existing process, we would typically start at the Model stage, as we already have a good idea of the process and how it is performing (positively or negatively).

For a new process, we don’t often know what is required, such as what resources we need at each stage. So we would typically start at the Optimize stage and try out some ideas, capturing these in the Model stage as our thoughts are formulated into a process.

Jim Rohn Sứ mệnh khởi nghiệp