Business Process Management

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It a systematic approach related to operations management more focusing on how to improve the company’s performance by applying this business model. No doubt, it’s the best approach for the development of a business, maximize revenue and lower the cost of the business. This area of study related to operations management on improving corporate performance of the company’s business processes by managing. Moreover, it can also improve corporate performance by doing business analysis for optimizing the company’s business processes.

This approach can be seen as a process optimization process. And it makes companies more efficient, effective, and capable of executing changes than the functionally focused, traditional hierarchical management approach. Efficient business processes have a positive impact on the cost and revenue generation of a company. Business Process Management can also mean a software tool, technology suite, or information system to develop and deploy processes in the organization. After doing that an organization is more adaptive. It is better able to respond to customer need changes and change the business (For Permit).

Business Process Management Model

It is shown from the picture that it has different phases of the Business Process Management Model and the process is based on continuity. Here we can see the main steps of this model.

Design

Design of business processes is about the identification of existing business processes and the design of “to-be” business processes.

  • Model – Modeling takes the theoretical design and introduces combinations of variables.
  • Execute – Controlled manual and automated execution of activities in business processes (with human intervention).
  • Monitor – Monitoring is about compasses tracking individual activities in processes, so that information on their state can be easily seen, and statistics on the performance of one or more processes can be provided.
  • Optimize – Process optimization is about retrieving process performance information from the modeling or monitoring phase: identify and take away bottlenecks!
  • Reengineer – Sometimes processes are not defined, described, or documented but they are problematic. In that case, it is best to interview people and use reports to chart and document a process. Every process in the organization should be diagrammed and documented. Else it is uncontrollable.

Every model based on few steps where the first step is always crucial, the next step is fully dependent on the current step.

  • Step 1: a process landscape of your current business functions and cross-reference them with business processes. This is your as-is situation. Use a reference model from your industry to start off.
  • Step 2: Copy the overview and call it to be landscape. Identify and draw the most important process starting events, outcomes and business activities in the cross-reference matrix.
  • Step 3: Point out where there are issues in your current processes
  • Step 4: Look at the future products and services you want to deliver to future markets and clients. Write down what inevitably will change the coming years.
  • Step 5: identify the new starting events and outcomes of your processes and top activities to create, produce and deliver these products across the functions.
  • Step 6: Take every business process and detail its description and create an activity schema per business process.

With these steps you are on your way to generating the benefits of business process management.

  • Cost Efficiency – Saving cost, easily up to 30% in your processes.
  • Cutting down on preventable errors in customer services.
  • Business Agility – Increasing the quality of your products and making it consistent.
  • Enabling the increase of your price because you can deliver better quality
  • Compliance Easy – Improved and quicker reacting on changes in the environment.
  • Customer Focus and Increasing customer satisfaction.
  • Staff Satisfaction – It is more fun if you know exactly what to do.