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Written by Vaseem Khan
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Friday, 07 August 2009 17:35 |
Business Process Management (BPM) buzzword should have reached you because of which you are here finding out what’s in store for you in terms of its benefits. BPM makes an impact on bottom line and top line of an organization by improving work productivity. You should already be aware that it also optimizes your business operations/processes. The next thing for you to figure out is how it provides you these benefits. Is BPM just a jargon created by the Marketing Specialists or the success of BPM in itself is creating the buzzword through the marketing world. The benefits of BPM varies depending on why are you using BPM and what kind of resources have you allocated for BPM. To keep it simple BPM based benefits are tangible and intangible. The most common BPM based benefits are as follows: 1 2 - Efficiency: BPM improves your process efficiency by a great margin. It does this by integrating your business process ends right from process initiation to execution. Each time a process owner distributes work to individual member responsible in process execution; an alert reaches them automatically and pops up on their computer screen. A process owner through his user interface will be able to monitor any delays and redistribute the work amongst the BPM users. Thus BPM helps in removing bottlenecks and brings down the lead time in executing a business process and improves its efficiency.
- Productivity: If you are a process owner you must be aware that allocating work to individuals with right skill sets is crucial. Getting the allocation part right would mean increase in productivity of the tasks done. This would generally come with a lot of experience with your team. BPM keeps track of user’s performance by tracking the amount of time taken in executing of a particular task. This information stored comes in handy to the process owner if the work completion time is of the highest priority. By allocating the work to the users who use minimal time in completing a task you will be able to execute multiple BPM based projects with increase in productivity.
- Improvement: Have you ever used trial and error techniques while executing a business process. My guess is you would have. There are many of them who use trial and error technique hoping to get better output in comparison to previous trials. The risk of running the trial and error technique is quite high due to the uncertainty of getting a better output for each trial. BPM suite comes with simulation tools which help you in conducting multiple trials and selecting an effective business process. Thus improving the quality of the output every time a business process is executed.
- Costs & Revenue: The costs related to execution of a business process come down due to process improvement, workforce productivity and process efficiency. The initial investment of implementing BPM suites in your organization seem to be significantly high. If we compare the cut down on operational costs after deployment of BPM, the initial investment into BPM will seem negligible. Decrease in lead time (due to elimination of bottlenecks) will have a positive impact on time to market the product. This would also mean the customer will be able to access your product/service in line with his customization needs in the least amount of time possible. Hence generating market demand, leading to increase in sales and increase in revenue.
- Agility: There has always been a need to change an organizations best practice to keep up with the changing market conditions. BPM suite allows the process owner to halt the execution of a business process modify it and reinitiate its execution. The monitoring features of a BPM suite come handy here. The process owner will be able to track and make changes on the fly and reallocate work or redefine roles of the BPM users. Thus, increasing the ability to adapt to any unstable conditions.
References: - V. Khadye. (2005). Toolbox for it. Bpm series: benefits of bpm systems. Retrieved August 7, 2009, from http://it.toolbox.com/blogs/bpm-blog/bpm-series-benefits-of-bpm-systems-4837
- Bpm basics. Bpm kit. Retrieved August 7, 2009, from http://www.bpmbasics.com/bpmCommunity.jsp
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Last Updated on Thursday, 26 November 2009 07:54 |
Comments
There is a lot of ambiguity created around a BPM tool & ONLY a workflow tool(ECM or DMS) tool. Now we can combine certain aspects of BPM into a ECM or DMS but than it is not entirely a BPM tool as some very important feature of BPM Tool like dimensioning, Tracebility are lost. We also cannot create a Organization model/ BIM model/ Class model/ Sequence model/Process Model to name a few.
I have worked in creating workflow models earlier and I think they are real source of BPM using concepts like TAT/Simulation etc but than maybe some sense of BPM is lost in these DMS/ECM systems.