What is Business Process Management, Definition and Benefits

Lovata Andrean

What is Business Process Management, Definition and Benefits

Rancakmedia.com – In the following article, we will explain management business process, starting from the definition, stages of benefits and objectives. So that you get more complete information, please see below.

Business personnel must be able to assess how business processes function. By understanding processes, business executives can build efficient strategies and overcome obstacles. Therefore, business people must be able to understand what business process management is.

Business basics. Business process management (BPM) is the process of looking at a company's current processes and then redesigning them to make management and effectiveness better.

Understanding Business Process Management

It is possible to automate and improve business operations through the use of business process management (BPM).

Business Process Management, on the other hand, is something that companies do all the time rather than just doing it once. Business process management is integrated into the company's operational management techniques.

By implementing it, companies must know the broad definition of the BPM or Business Process Management process cycle. That is, certain actions that the company must take to work on each current process.

Stages of Business Process Management

The application process for business process management includes five stages or procedures, namely:

  1. Design
  2. Modeling (Modeling)
  3. Analysis (Analyst)
  4. Monitoring
  5. Improve (Improving)
  6. Design

Every company has a process. However, not everything can really be explained by the company. To “design” anything, you must first define a process and then determine where it starts, what components it contains, and where it finishes.

Modeling (Modeling)

Once the processes have been identified, a model chart must be created to represent them. To carry out analysis, you need some kind of description. When modeling, most of the time, a workflow diagram or one of the many business process mapping tools is used if the process is simple.

Analysis (Analyst)

Now that the company has a process diagram, it can start evaluating it. Analyze the workflow by answering the questions below. What stages don't really add value to the process? Is there any way to get rid of it? In this study, we will remove any processes that do not provide value or worth to the company.

Monitoring

If companies don't know how well their procedures are working, how can they improve them? In addition, it must be able to determine whether the changes made by the company have the desired effect or not.

So, comparative data is needed in the form of performance standards and field results data to find out whether the changes made by the company have a positive or negative effect. This monitoring needs to be carried out within a certain period of time.

Improve (Improving)

After we carry out the monitoring process, we will know whether the adjustments we make have a good impact or not. If the results are good, the company may decide to make changes. If the results are bad, the company will stick with the old plan while looking for a better one.

Benefits of Business Process Management

This analytical approach has several advantages for businesses, therefore many business individuals or companies use this BPM method. Companies may have to face tough business competition, which makes it difficult for them to use this strategy.

Here are four business benefits of BPM:

  1. Make the process effective
  2. Increase profits
  3. Improving K3
  4. Reduce costs
  5. Transparent visibility
  6. Make the process effective

The main goal of business process management is to simplify current business procedures. Shorter processing times, better quality results, and lower accident rates are signs of this level of efficiency.

Increase Profits

As production increases, of course, productivity increases, and companies can sell more goods. Or, a company may be able to save on operational costs by making the manufacturing process run faster. As a result, BPM not only improves operational efficiency but can also increase business revenue.

Improving K3

With BPM, you're not just trying to speed up processes or increase production. However, K3 (Health and safety) will be improved as a result of implementing BPM. that BPM continues to pay attention to the safety of its personnel.

Reduce Costs

Cost savings are directly proportional to process efficiency. With BPM, we can minimize process costs and eliminate operations that the organization does not need.

Transparent Visibility

Of course, the result of this cost reduction may be that the company can cut product prices or the company can extract more profits.

BPM often uses systems in its implementation so that business processes can be more clearly observed in real time.

With this technology, companies do not need to employ as many people, so they can run more efficiently.

A more open system will also make it easier for those responsible to make changes because they will know more about the business they are running.

Goals of Business Process Management

The goal of business process management is to do the following:

To Determine what the Final Goal of the Organization is

Before deciding on a course of action to achieve an organization's ultimate goals, it is important to understand what those goals are. By choosing a particular path, resources will be used more efficiently and in a better way.

Also, when workers know what they are doing and why they are doing it, they will have a greater desire to perform better.

To Organize Operational Processes to Achieve Specified Goals

Companies may have to re-plan their day-to-day operations to better suit their requirements to increase productivity. Setting a daily work quota can help you achieve the monthly and annual goals you need to achieve.

Organizations must also take initiatives to improve communication and work coordination across various divisions. In addition, to build accountability, there must be consensus on how the work process will run. He also needs to monitor and manage several work activities taking place simultaneously.

To Make Optimal Use of Available Organizational Resources

Optimal use of existing resources is very important to reduce operational costs. With process management, companies can identify the items they need and organize their acquisition.

They can choose how resources will be stored and how to distribute them as needed. This ensures that business processes continue to function properly without running out of resources or creating waste.

To Increase Productivity

Process management becomes more automated. By automating repetitive operations, companies can increase the speed, efficiency and accuracy of work.

He is also able to delegate other, more useful tasks to his human workforce. Staff turnover and work-related stress can be reduced as a result.

Types of Business Process Management

Business process management can be divided into three categories: A description of each of the three categories is given below.

Integration-Centric BPM

The first type is integration-centric BPM, which focuses on business processes that do not require much human participation.

This process relies heavily on APIs (application programming interfaces) and device mechanisms that integrate data across platforms. For example, customer relationship management (CRM), ERP, or human resources (HR) management (CRM).

Human-Centric BPM

This form of BPM, in contrast to integration-centric BPM, emphasizes human involvement and requires written approval for each process.

A simple user interface with drag-and-drop capabilities and easy-to-understand notification features allows teams to easily allocate work to various roles. It's easier to hold people accountable for their actions throughout the process.

Document-Centric BPM

Management processes center on specific documents, such as contracts and reports finance, is one of the last options (financial statements and financial statements).

When your company purchases a product or service from another company, the analyst team must find some type of agreement so that the client and vendor can reach an agreement.

FAQ

Below are questions and answers regarding business process management, as follows:

Why are business processes so important for companies?

Good Business Process Management will have a beneficial influence on the company, such as efficiency in terms of costs, resources and time, improving work quality and performance effectiveness, increasing productivity and customer happiness.

Why can implementing business process management rapidly increase business process efficiency?

The implementation of the Company's business process management will quickly encourage business process efficiency. This is possible because the company's business operations are connected from the beginning to the end of the process.

Conclusion

Process management bisnis (BPM) is the process of looking at a company's current processes and redesigning them to make management and effectiveness better.

By understanding processes, business executives can build efficient strategies and overcome bottlenecks. The main goal of business process management is to simplify current business procedures.

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Lovata Andrean

Hi, I'm Lovata, I'm not Ai but I am a content writer for SEO, Technology, Finance, Travel, Cooking Recipes and others. I hope this can be useful for all my friends. Thanks