Business Process Management: definition, methods, etc.
Business process management is not always described simply and clearly. Therefore, sometimes there are problems understanding its role in the company and the need for implementation. In fact, companies are divided into two sides: the ones that need BPM (Business Process Management) but actually don't use it, and businesses who don't need it but try to implement and use it.
To understand the issue, it is necessary to understand the goals and objectives, to determine the composition and stages of business process management.
The concept and objectives of business process management
The main task of BPM is to ensure that the business achieves its goals in the shortest possible way through the management of the processes within the business, which are presented as resources. The considered concept assumes that it is possible to achieve the goals of the organization if these assets are correctly described, designed, monitored, and constantly optimized.
The result of an enterprise's activity (be it an end product business or a service provider) always arises as a result of certain actions. A business process is a projected sequence of such actions that have value for the customer.
Let us explain this with an example 🙂
Imagine there's a pharmaceutical company with an IT department. It has the function of providing services to another department through internal business processes. A supplier-customer relationship is formed, where a specific value is created for the client in the form of products or services. And the challenge of business process management as a discipline is to optimize processes while creating this specified value for the customer.
How did business process management appear?
Each new company goes through the stages of formation and training. During this period, it is necessary to ensure effective interaction between staff and all departments, set up a system for the exchange of knowledge and information between employees. The size of the company doesn't matter here. Such things are relevant for both small and large-sized companies.
In the business sphere, new tools are being introduced all the time, surpassing the old ones in their flexibility, usability, and intuitive understanding. The intuitive understanding of BPM is especially important for people who are just starting their entrepreneurial activity.
You can compare the current principles of working process organization with the old ones. In the past days, staff was having difficulties perceiving any information that could help them to get started with the work. Then a functional approach was used, in which:
- a description was given to the workplace of each employee,
- a job description was determined for each employee,
- safety requirements were described for workers, and so on.
Employees who come across an old management scheme may remember that most of these instructions were almost never memorized by anyone. Often only the compilers read them fully. Real knowledge was transmitted orally, from more experienced workers to less experienced ones.
Serious problems arose when there was a need to change the management activities of an entire large company as soon as possible. The solution to this global problem was the reason for the creation of a full-fledged business process management system (or BPM) and automation of the whole workflow.
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