Business Process management

What is Business Process Modeling (BPM)?

By definition, business process is a set of logically related tasks performed to achieve a defined business outcome. Business process modeling is the activity of representing processes of an enterprise, so that the current processes may be analyzed and improved. This is done by optimizing connecting activities in the provision of a product or service in an organization. These activities are performed by business analysts and managers who are seeking to improve business performance. They can pick up errors or cons about the way processes are currently being performed and model an improved way of carrying out these processes. Companies today are becoming more focused on their business processes, i.e. the set of related activities that create value for the customer.

What it Achieves

The traditional way of organizing firms into separated departments such as marketing, production, service, has shown to require a huge administration to handle issues spreading across the departments. Considerable resources are allocated to administrative tasks that do not create value for the customer.  The business processes, on the other hand, spread across departments, and facilitate for the firms and organizations to focus on the activities that really fulfill the goal of creating customer value.

A focus on business processes puts the customers in the centre, and when customers demand novel products or services, the firms can easily meet the requirements by adjusting business processes accordingly.

Concentrating on the business processes serves as an avenue for automation. This requires that the information technology systems support the business processes in an efficient and flexible way.

In addition to this, business process modeling boosts the performance of an organization/company through;

 

  1. Aligning Operations with Business Strategy

Implementing a business strategy or a new business model requires changes in the operations and in how people carry out their various activities. This is affected by changing business operations to actual business processes, business rules and decisions that are made on a day to day basis in the organization. Business Process Modeling facilitates this by:

Ø  Linking organizational strategy to well-defined business processes. This acts as a critical tool for management and executives to ensure that the business processes are consistent with and enable execution towards achieving the overall strategy of the organization.

Ø  Aligning business execution and operational activities with the strategy. This ensures that operational tasks and activities performed by team members actually help the organization implement its strategy. Failure to this alignment, it will be a tad difficult in achieving overall organizational goals.

Ø  Implementing Business Process Re-engineering (BPR). Bottlenecks and in-efficiencies indentified from analyzing existing business processes are dealt with to ensure improved performance.

Ø  Process agility is enabled by being in a position to communicate processes quickly and facilitate enactment of new business opportunities.