Basic Concept Of Business Process Management
- Business is exchanging the goods or services into some valuable things.
- Business Process is a set of ativities that relates to each other and it happens continously to get the goal.
- Management is like Planning, Organizing, Actuating, and Controlling something to be more effective and efficient.
- Business Process Management is a set activity of Planning, Organizing, Actuating, and Controlling the goods or services to reach the goal.
Core Concepts of Business Process Management
- BPM is a management discipline and a set of enabling technologies
- BPM addresses end-to-end work and distinguishes between sets of sub processes, tasks, activities and functions
- BPM is a continuous, ongoing set of processes focused on managing an organizations end-to-end business processes
- BPM includes the modeling, analysis, design and measurement of an organization’s business processes
- BPM requires a significant organizational commitment, often introducing new roles, responsibilities, and structures to traditional functionally oriented organizations
- BPM is technology enabled with tools for visual modeling, simulation, automation, integration, control and monitoring of business processes and the information systems which support these processes
BPM Life Cycle
The management practice of BPM may be characterized as a continuous lifecycle (process) of integrated BPM activities.
- Planning and Strategy
This phase sets the plan and strategy for the BPM process to ensure a compelling value proposition for customers.
- Analysis
Analysis assimilates information from strategic plans, process models, performance measurements, changes in the environment, and other factors in order to fully understand the business processes in the context of the overall organization.
- Design
Design activities may look at standardizing or automating current ad hoc activities, while more mature design activities may look at redesign or radically reminding a process, or incremental improvements designed for optimization.
- Modeling
Understanding the process typically involves process modeling and an assessment of the environmental factors which enable and constrain the process.
- Measuring and Monitoring
They provide the information necessary for process managers to adjust resources in order to meet process objectives. And also provide the critical process performance information through key measurements related to goals and value to the organization.
- Transformation
Process transformation implements the output of the iterative analysis and design cycle. It also addresses organizational change management challenges to optimize the process.
Factors that effect to BPM Lifecycle :
- Culture
It includes the organization values, visions, norms, working language, systems, symbols, beliefs and habits that affects the way people and groups interact with each other, with clients, and with stakeholders.
- Leadership
A good leader must influence their staffs to finish their task then achieve the organizational goal.
- Value
Value is something quite real and concrete,to get the value you must think about being of service.
- Belief
Beliefs are nothing more than working assumptions. Belief may or may not be true or even rational. But belief is at the heart of making your leadership work.
Types of Processes
- Primary Processes
Primary processes are end-to-end, cross-functional processes which directly deliver value to customers.
- Support Processes
Support processes are managing resources and/or infrastructure required by primary processes. It does not directly deliver value to customers. Examples of support processes include information technology management, facilities or capacity management, and human resource management.
- Management Processes
Management processes are used to measure, monitor, and control business activities. Management processes do not directly add value to customers, it ensures the organization operates effectively and efficiently.
Types of Activities
- Value Added
Contributing to the process output in a positive way.
- Handoff
Passing control of the process to another department or organization.
- Controls and Control Activities
Controls can assure that the processes behave within desired tolerances to ensure processes achieve goals and adhere to standards, legal, and/or regulatory requirements.
Control activities can prevent, detect or correct undesirable conditions or change the flow of a process to ensure that process goals are met.
BPM Critical Success Factors
- Alignment of Strategy, Value Chain and Business Process
BPM relies on key business strategies that set the primary direction of the enterprise, usually in terms of value propositions for goods and services delivered to customers.
- Goals
It is an output of an organizations strategic planning efforts, and it is typically decomposed to include functional goals which align an organizations functional areas to overall strategy.
- Executive Sponsorship/Governance
Assign executive leadership responsibility to oversee the performance of key processes in order to optimize the impact on value chain performance.
- Process Ownership
A process owner is responsible for the entire end-to-end process across functional departments.
- Metrics, Measures and Monitoring
They provide critical feedback on process design, performance, and compliance.
- Institution Practices
Create value for an enterprise and its customers with the organizational practices and mastery of concepts and skills by individuals.
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