Processes play a critical role in helping companies achieve their business strategy by aligning resources, technology and supporting structures toward the achievement of desired business outcomes.
Part two of a series.
Business Process Management (BPM) is a management approach and methodology leveraged to address strategic business issues by allowing businesses to grow or operate in a cost-effective manner with desired visibility, flexibility and speed.
The BPM approach and supporting technologies (Business Process Management Solutions, or BPMS) enable benefits across multiple business facets:
Most companies are experiencing the need to keep pace with ever-changing marketplaces related to adapting to the customer or competitive needs, meeting regulatory requirements and/or evolving to provide an unmatched customer experience. BPM provides Business Agility by offering the capability to modify processes (e.g. activities, user interfaces, routing, business rules) in a real-time manner. This leads to faster recognition of reduced process cycle time and increased customer service, among other benefits, which provides a distinct competitive advantage to companies employing BPM.
Cost Structure and Revenue generation
BPM also has a significant impact on an organization’s Cost Structure (by enabling cost reduction or quality improvements through automation efforts) and Revenue Generation (by improving processing time, providing timely customer communication, and enhancing the overall customer experience). Similarly, in companies that are challenged to expand without adding headcount, BPM enables “Growth without Growing” by improving process efficiency and effectiveness.
The third challenge that companies are experiencing today is an inability to proactively manage process/task service levels and to recognize where process issues exist. BPM solutions have functionality that provides Process Visibility/ Transparency. Enabling a business process with BPM facilitates the ability to manage process/task service levels, prioritization, escalations and communication to proactively anticipate, manage and correct current process/activity problems while anticipating and avoiding future issues. In addition, BPM provides process analytics to determine where to focus improvement efforts.
Finally, companies utilize BPM solutions as a pure Technology Enabler. These tools can streamline implementation of process-centric Point Solutions by providing a “workflow” engine backbone and function as the front-end (portal/mobile), reporting, and/or rules solution to multiple back-end systems (i.e. preventing the need for an often lengthy technology platform consolidation).
To remain competitive in a rapidly changing business environment, companies must continue to look for tools that can provide differentiation for their processes and customer experiences. BPM fills the process management gap and avoids the pitfalls of purchasing/implementing multiple technology solutions by providing an underlying process backbone that can be leveraged to meet a variety of needs spanning multiple processes/business areas.
Writing and contributions by both: Tom Ujvagi and Darren Rehrer.
Darren Rehrer manages Centric’s Business Process Management (BPM) practice where he supports Centric’s multiple offices with BPM business development efforts, solution methodologies and best practices. He has led numerous BPM implementations for clients representing financial services, insurance, manufacturing, telecom and retail/grocery companies. Contact Darren to learn more.