Importance Of Business Process Management

To understand why Business Process Management (BPM) is important to any business, you first have to understand what it is. This is not as easy as one might expect, since BPM means different things to different people. Every participant in a business has a different perspective and definition of BPM that is influenced by his or her role.

1. What is Business Process Management (BPM)?

BPM is all about technology. It is an evolution of application development and a means to achieve the automation of processes. For others, BPM is about optimization: a world of methodologies such as Six Sigma, Lean, CI, or TQM. For many, BPM is a way to communicate how they want work to get done as well as a way to facilitate change. And for yet others, BPM is a

Businesses should be looking at ways to increase their ability to create new value from money spent on systems and technology. Today most IT budgets are spent on “keeping the lights on”; in fact, 70% or more of existing IT budgets are spent on sustaining and running existing capability while 30% or less of these budgets are spent on providing new business capabilities.

All of these real world examples above are representative of what has been and can be achieved with BPM.

3. Why is business process management (BPM) important to organizations?

In spite of on going quibbles surrounding obscure jargon, maturity curves and definitions – a recent article on bpmleader.com questions whether the discipline’s latest guise is Kaizen 2.0 - BPM continues to trail blaze its way through 2013.

In fact, a case study of BPM implementation released by IBM in March revealed one of the most expansive projects yet. Facing a backlog of permit applications from entities wanting to use natural resources, the Alaska Department of Natural Resources turned to Agile BPM to streamline processes and execute swift decision making, leading to greater ROI through leases, water rights and material sales.

PEX Network takes time out to highlight three key reasons as to why business process management is becoming more important:

• Business operations are changing and getting more

This makes it critical to align business processes with the end goals of customer loyalty and retention.

Live chat software is one avenue companies are exploring to make the shift from static to dynamic website functionality. According to Forrestor research, 44 percent of online consumers rank live chat as the most important website feature. A live chat customer service rep can handle up to three people at once while the phone is restricted to one.

For one financial institution, meeting customer expectations regarding loan share financing products presented a tricky balancing act. Established in 2004, Emirates Islamic bank needed to revitalise its creaking, point to point programming system which meant it took two days to approve a customer loan request.

All product changes had be ratified by the notoriously conservative Sharia regulators and scholars. Impressively, the business process modelling initiative managed to automate credit checking and approve loan share requests in 30 minutes, also receiving the rubber stamp from Sharia authorities.

4. What are the key capabilities you need to be successful in