What is Business Process Management and Why Does it Matter?

BPM Institute defined business process management as: The definition, improvement, and management of a firm’s end-to-end enterprise business processes to achieve three outcomes crucial to a performance-based, customer-driven firm: 

  1. Clarity on strategic direction
  2. Alignment of the firm’s resources
  3. Increased discipline in daily operations

Business process management is a management approach for automated and non-automated business processes. It codifies the issues with the idea to achieve desired consistent results that best align with the business’s strategic goals. 

While also identifying opportunities for:

  • Improving quality.
  • Performance.
  • Satisfaction to the customers. 

More and more companies are starting to recognize the need for improvement, development, and change to stay relevant in their industry.

It helps in improving the overall operations of the business.

It helps in:

  • Operational deficiencies.
  • Better control of workflow.
  • Reduces expenditure.
  • Keep productivity level consistent.
  • And provide insight to make better decisions.

This is why the BPM market is expected to grow to approximately USD 16 billion by 2023. (Business Process Management Market Research Report).

Every business consists of some set of processes that are repeatedly followed. These processes are the core part of the business, it is important to document and measure against these processes as you grow and expand. These core functions are broken into 2 types of processes which can either be information or materials.

Ex: Information or data is transformed into a report and raw materials are manufactured into a good to be sold. 

Steps of Business Process Management:

  1.     Design & Analyze.
  2.     Model.
  3.     Execute.
  4.     Monitor.
  5.     Optimize & Automate.
  • Design & Analyze:
    This is the first step when it comes to business process management where you analyze the process as it currently exists today.
    Analyzing would be considering what works or where the known problems start in the process.
    Designing would be to outline the process from start to finish. Inputs, outputs, resources, time, etc.

  • Model:
    This is where you look for ways to improve the process and how it should ideally happen or be laid out.
    Then model how that process could work in a variety of different scenarios with different variables.

  • Execute:
    Once the process has been modeled, you can implement the needed changes and be sure to document what is changing, why it’s changing, and when the change is happening.

  • Monitor:
    After your new process has been put in place, you will need to monitor to ensure the desired results are achieved.
    We will talk more about process improvement and measuring your processes later.

  • Optimize & Automate:
    Optimization is the continuous monitoring of the process to identify areas of improvement.
    This is an ongoing process and should never stop after implementation.
    After some time after implantation, you should review what moving pieces could be automated and allow for higher efficiency and productivity and start back at step one and repeat.

These processes are the core end-to-end processes of your business and should not be confused with task management because that is project related. Though, they can both coexist. This is because when you realize a process should be updated or needs to be fixed, you spin up a project to correct it. Hence the coexistence but it is still imperative that the process doesn’t stop there. 

This is just a high level overview of the potential problems you could be facing or why it is important to have business process management in place to correct issues before they come up. If any of these problems are starting to sound familiar to you, or if it always feels like one surprise after another, it might be time to take a closer look at your approach.

ConsulITex knows a thing or two about BPM and BPI. As you consider your options and learn more, we’re ready and willing to talk about your process, your challenges, and how we can help you in whatever way is best for you. If this information spoke to you, take a second to reach out to ConsulITex.


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