What is Business Process Management ? A 101 Guide to Unlocking Success

Quixy Editorial Team

November 5, 2024

Among the many daunting phrases in the business world is “Business Process Management (BPM).” Three critical and complicated aspects of work come together to form one niche (and one phrase), so we need to tread carefully here.

But what if we told you that it is not very difficult? What if we used the word “fun” to describe it instead of the regular jargon of “boring,” “frustrating,” and “scary?”

We can hear you scream at us.

Hold on, though. We will reason all our claims by helping you understand what business process management (BPM) is, its benefits, and how you can get started with it right away.

What is Business Process Management?

Business process management (BPM) is about conducting business in the most efficient way possible. In other words, BPM is the process of designing, monitoring, managing, and executing interrelated business processes. This means that you bring various processes in your organization together and optimize them for the overall welfare of the company.

To understand this more clearly, we should learn about a process, business process management system and what it means in the world of business.

Also Read: Your Guide to Warehouse Management Success

Why is Business Process Management Important?

Business Process Management (BPM) stands as the dynamic compass guiding modern enterprises toward efficiency, agility, and sustained success. In a world where adaptability is paramount, BPM emerges as the bedrock upon which streamlined operations are built. By meticulously analyzing, refining, and orchestrating workflows, BPM optimizes resource allocation, enhances collaboration, accelerates decision-making, and ensures adherence to industry regulations.

Just as a symphony relies on the harmonious coordination of individual notes, BPM harmonizes the diverse elements of an organization into a synchronized masterpiece. It empowers businesses to adapt swiftly to changing market landscapes, innovate purposefully, and exceed customer expectations. BPM isn’t just a methodology; it’s the heartbeat of business evolution, propelling companies towards resilience and competitive prowess in a rapidly evolving landscape.

Also Read: Online License Management System for Businesses : From Paperwork to Progress

Categories of Business Process Management

Every organization engages in BPM in some way or another, and business process management works in multiple structures. Primarily, every business needs three types of BPM in different ratios. The following is a list that would help you better understand BPM’s scope.

1. Document Centric BPM

The document-centric BPM involves the creation of a document and getting approvals from multiple people in the workflow. This is the ideal form of BPM for any organization that relies on reports. The primary purpose of document-centric BPM is to reduce the need to send emails and wait for a response. Also, it allows you to keep the data safe without letting it get lost among other piles.

2. Human-Centric BPM

All the business processes that need humans to make decisions at some point need human-centric BPM. It focuses on the involvement of individuals and automation,What is Business Process Optimization? Proven Techniques & Insights  both for efficient workflow. Under this type of BPM, the number of processes to be automated is limited, and the decisions to be made by personnel are prominent. Human-centric BPM is best for organizations that involve human activities daily.

Also Read : What is Business Process Optimization? Proven Techniques & Insights 

3. Integration Centric BPM

Integration-centric BPM has become a go-to tool for most companies. Its central focus is to create a smooth workflow between the multiple tools of the organization. Business process management and automation of tasks using software solutions is a practice that all organizations wish to follow, and it connects the several software that exist in the organization. The main idea behind incorporating this set of BPM is to increase productivity with reduced manual efforts.

Also Read: A Guide to Utilizing Low-Code and Change Management: Maximizing Enterprise Agility

Here are some Key Components and Functions of a BPMS

1. Process Design and Modeling

Business process modeling allows businesses to map their processes visually, like drawing a roadmap. This helps understand how various organizational tasks and activities connect and flow.

2. Automation

Once a process is designed, a BPMS can automate repetitive, rule-based tasks, reducing manual effort and the risk of human error. This is like having a reliable robot that handles routine chores.

3. Workflow Management

It manages the flow of tasks, information, and approvals among employees and systems, ensuring that work moves seamlessly from one step to the next, much like an efficient assembly line.

Also Read: Boost Your Business with the 7 Best Task Management Software

4. Monitoring and Analytics

BPMS keeps a watchful eye on processes, providing real-time data and insights. It’s akin to having a dashboard that shows how well your business engine is running and where it might need a tune-up.

5. Continuous Improvement

BPMS helps identify bottlenecks, inefficiencies, and areas for improvement. It acts as a business coach, suggesting ways to refine processes for better outcomes.

6. Integration

It connects with other software and systems within an organization, fostering collaboration and data exchange. This integration resembles a universal translator that enables different systems to communicate.

A BPMS is like a trusted ally in the world of business, empowering organizations to adapt, evolve, and thrive in an ever-changing landscape. It’s a tool that promotes agility, efficiency, and the pursuit of excellence, ultimately contributing to an organization’s growth and success.

Also Read: Quality Management System: Boosting Efficiency and Ensuring Quality

Business Process Management Life Cycle

A business process is a set of activities, tasks, and events performed by systems and people to achieve a business goal. Business process improvement is a process of documenting, analyzing, and updating the business process for enhanced results. Commissioning a process involves several steps ranging from the ideation of the process through the building and continuous improvement of the process – this is typically referred to as the business process life-cycle of a process.

• Design: Identify existing processes as well as areas for improvement. Map the workflow between people and systems and evaluate any dependencies or handovers. This step is designed to represent conditions, deadlines, data flow, etc, visually.
• Execution: Carry out processes identified and designed in the previous step. This can be done manually or using automation. A pilot implementation may precede a full rollout to ensure any issues are resolved at the pilot level. The practice of implementing business processes through the use of automation is termed Business Process Automation (BPA).
• Management: Management mainly includes monitoring. Measuring the efficiency of the process, implementing changes accordingly, and reviewing the overall performance enables businesses to remove bottlenecks from the system.
• Optimization: Depending on the above analysis, you can optimize the flow using various business improvement steps to further improve process efficiency and reduce costs.

Also read: BPM Software – 11 things to consider for choosing the right one

Benefits of Business Process Management

If done properly, business project management can open up an ocean of benefits for your organization. Implementing business processes through automation yields even better results compared to manual implementation. We have outlined a few benefits below:

1. Incredible productivity

As aforementioned, BPM has the ability to shoot up your business’s productivity and efficiency because it streamlines most tasks, notifies you of bottlenecks (and removes them), and reduces steps that are hindering the process and/or are unnecessary.

2. Astonishing satisfaction

There are very few things that can boost the satisfaction of employees and customers at the same time. Optimized BPM is one of them. Employees will have more time to focus on workplace innovation and important activities. On the other hand, customers will benefit from this paradigm shift by enjoying better services and products.

3. Augmented strategy

Strategy strengthens once you introduce BPM into the system. It helps optimize resources and align the business goals to the process itself. We know the wonders that an excellent strategy can do for a business, right?

4. Reduced costs

This is the gigantic cherry on top that all of us want. With better collaboration, reduced efforts, and removal of unnecessary tasks, it is obvious that the costs will go down while productivity keeps climbing the ladder.

Also Read: 10 Valuable Benefits of Business Process Management

Reasons why you should consider BPM combined with automation

It’s time to understand the reasons why you should integrate BPM into your system. If you check any of the following boxes, you need it.

• No-code application development makes BPM easier. Businesses that use no-code development tend to build software programs much faster.
• It ensures all employees can access the right data by integrating it with the processes.
• All workflows will be streamlined.
• The workforce will be connected, and that’s a gigantic requirement for any business.

Also read: RPA and BPM: What’s the difference, and which one do you need?

Industries using Business Process Management

Let’s try to understand BPM better by picking up examples from various industries.

1. Education

Admission requirements, course certifications, and research grants. The list of processes is never ending in the education sector. Thank God for BPM!

2. Legal

The amount of paperwork one handles in the legal department is astounding. The manual process is quite tedious, from handling contracts to reviewing them and ensuring everything is on track. BPM definitely comes to the rescue.

3. Insurance

Claims data entry, membership life changes, membership application approval, and claim grievances are part and parcel of the insurance life. What better way to make all of these easier than with a business process management software program?

Examples of BPM in different functions

Now, we are going to talk about the use of BMP in different functions with the use of examples.

1. HR and administration

The onboarding process is one of the most chaotic tasks for the HR department. Did you know that BPM can streamline the process and that further automation can eliminate the need to fill out exhaustive paper forms? Of course! The same applies to employee timesheets as well.

2. Sales and marketing

Invoice approvals are painstaking. Sometimes, a typing error here or a math mistake there can stymie the whole process. BPM eliminates these obstacles through automation. There is literally no room for error!

3. Accounting and finance

Ah, how we pity the accounting team! They have so much to take care of and are often short-handed. The sheer number of emails they get per day is daunting. Now, imagine their workload! When you bring in BPM to such a troubled department, you ease the burden and smoothen the entire system. Travel requests, reimbursements, etc., can happen with one click!

4. Purchasing

The purchase approval system is so ancient in a few companies that it gives employees nightmares! And no, we are not even exaggerating! Rogue spending is a constant risk, along with human errors and a lack of transparency. You can say goodbye to all these issues with business process management.

5. IT

Business strategy, contract management, data security, operational efficiency, and project management – there’s barely anything that BPM won’t do for the IT industry.

Also Read: What is Collaboration Software? 6 Critical Factors For Selecting the Right Software

BPM Examples in Different Business Contexts

Explore real-world business process management examples showcasing transformative prowess across diverse industries, driving efficiency and innovation in unique contexts.

Retail Store Operations

A retail chain optimized store operations through BPM implementation. The BPM platform automated inventory management, sales tracking, and staff scheduling. This led to better inventory accuracy, improved sales insights, and optimized staffing levels.

Marketing Request Management

A leading life insurance and financial services company optimized marketing request handling by developing a custom BPM application. This platform enabled streamlined creation and routing of marketing requests, offering comprehensive visibility and standardizing the creative request process.

Supply Chain Logistics

A logistics company optimized supply chain operations using BPM technology. They automated order processing, inventory tracking, and shipment notifications. The BPM-enabled system improved order accuracy, reduced delivery times, and enhanced overall supply chain efficiency.

Claims Management

A global insurance company transformed its claims management system by utilizing BPM software. This initiative significantly reduced manual data entry, enhanced real-time reporting capabilities, and provided comprehensive process visibility by integrating various legacy systems into a unified platform.

Also Read: Best Collaboration Software to Look Out for

Employee Onboarding

A large organization streamlined employee onboarding through BPM, automating processes from candidate intake to new hire paperwork. Leveraging automation and robotic process automation (RPA), the BPM-enabled application facilitated smoother handoffs between teams, reducing manual efforts and ensuring a more efficient onboarding experience.

Healthcare Patient Journey

A healthcare provider optimized patient care journeys with BPM. They implemented a BPM solution to manage patient appointments, treatment plans, and follow-ups. This improved patient care coordination, reduced appointment scheduling errors, and enhanced overall healthcare service delivery.

Project Management

An organization enhanced project management efficiency by implementing a BPM-based application. This solution empowered project managers to choose predefined workflows, automate task assignments, track progress, and provide real-time notifications to manage critical project elements effectively.

Supplier Relationship Management

A manufacturing firm improved supplier relations by implementing BPM software. They automated supplier onboarding, performance monitoring, and payment processes. The BPM solution ensured better supplier visibility, reduced processing times, and facilitated proactive issue resolution.

Contract Management

A large real estate corporation revamped its contract management process using a BPM platform. By centralizing contracts and integrating with enterprise applications, the BPM solution facilitated collaborative contract management, delivering increased visibility and business intelligence across multiple subsidiaries.

Customer Service Management

A telecommunications company revamped its customer service operations using BPM. The BPM platform facilitated customer issue tracking, automated resolution processes, and offered a unified view of customer interactions. This led to faster query resolutions, improved customer satisfaction, and reduced service downtime.

Compliance and Risk Management

An organization focused on strengthening compliance and risk management procedures through BPM. This approach documented financial processes, conducted control tests, and tracked issues, offering real-time reporting, centralized audit information, and enhanced financial risk management.

Acquisition and Procurement

A government entity improved procurement operations and cost reduction through a BPM-based solution. This end-to-end procurement system enforced policy compliance, reduced acquisition cycle times, and generated substantial savings by streamlining pre-award, award, and post-award activities.

Lease Management

A prominent retailer streamlined lease tracking across numerous stores globally with BPM. By consolidating lease management processes, the BPM solution improved tracking accuracy, ensured compliance with critical deadlines, and offered better visibility into negotiation team performance.

Service Request Records

An equipment and services supplier elevated customer service by employing a BPM platform for service request management. This enabled efficient tracking of service requests, streamlined invoicing, and increased collaboration across departments, resulting in improved service cycles and enhanced customer experiences.

Inventory Management

A retail conglomerate optimized inventory control using BPM software. By implementing a BPM-based solution, they automated inventory tracking, managed stock levels, and streamlined procurement processes, ensuring better inventory management and cost-effective operations.

Also Read: Top Business Process Management Stats to help you add efficiency

BPM Technologies: Tools for Business Process Management

Business process management tools & technologies encompass various tools and approaches, including those that are code-free or “no-code” in nature. Here’s a breakdown of different types of BPM technologies:

1. Traditional BPM Suites: These encompass software platforms that enable modeling, automation, monitoring, and optimization of complex business processes. They often require coding or scripting to create custom workflows.
2. Low-Code BPM Platforms: The low-code platforms provide a visual interface and pre-built components, reducing the need for extensive coding. They cater to users with varying technical skills and expedite process development.
3. No-Code BPM Platforms: No-code is designed for users with little to no coding knowledge, these platforms offer a graphical interface to design and automate processes. They empower non-developers to create functional workflows.
4. Robotic Process Automation (RPA): While not strictly BPM, RPA involves using software bots to automate repetitive tasks. RPA tools can integrate with BPM systems to streamline processes.
5. Process Mining Tools: These tools analyze existing processes based on actual data and provide insights into bottlenecks, inefficiencies, and opportunities for improvement.
6. Digital Process Automation (DPA): Combines BPM, RPA, and other automation technologies to create end-to-end digital workflows. It often incorporates decision-making logic and integration with various systems.
7. Case Management: Focuses on managing unstructured, knowledge-intensive processes where each case may follow a unique path. It’s particularly useful in industries like healthcare and legal.
8. Cloud-Based BPM: Hosted in the cloud, these platforms offer scalability, accessibility, and collaboration features, allowing teams to work on processes remotely.
9. Mobile BPM: Provides process access and management through mobile devices, catering to the increasingly mobile workforce.
10. Social BPM: Incorporates social collaboration features to facilitate communication and collaboration among process participants.
11. Adaptive Case Management (ACM): Similar to case management, ACM emphasizes the ability to adapt and respond to changing conditions, providing flexibility for complex, dynamic processes.
12. Business Rules Management Systems (BRMS): Focuses on managing and automating business rules within processes, ensuring consistency and compliance.

Each type of BPM technology offers distinct advantages, and the choice depends on an organization’s specific needs, technical capabilities, and desired level of automation.

How to get started with BPM using No-Code Technology

We are positive that we have convinced you about BPM. Let’s see how you can get started with it now.

1. Use of no-code and low-code platforms for BPM

Our era calls for the convenience of no-code and low-code app development. This is why we must look at how you can use these platforms for BPM. They work to remove all complications in the process of development. Any business can create a BPM solution with minimal resources and effort. You don’t even need to spend a lot of money because you won’t hire professional coders for it. You can also customize the tool to your needs and remove all unnecessary functions.

2. No-code and low-code platforms for BPM versus the old tools

Traditional BPM tools are still prevalent, but we think it is time to shun them. Why? They are complicated. They are also very expensive and time-consuming. With new no-code and low-code platforms, you can enjoy the following:

• Faster delivery
• Customer-centric processes
• Continuous improvement based on analysis and feedback
• Low costs

3. Benefits of no-code over low-code platforms

While low-code platforms are an upgrade and shower multiple benefits on the user, why stop? Today, no-code platforms are ruling the roost with their 0% complexity formula. They require absolutely no technical knowledge, and anyone can build a BPM application from scratch. Low-code platforms still require basic tech knowledge, whereas no-code application development is so simple anyone can use them.

Business process management and workflow automation through no-code platforms are the need of the hour and the future of application development. The faster businesses embrace it; the easier it will be for them to navigate daily business needs and processes.

Also read: Everything you should know about no-code development

What are the Challenges of Business Process Management?

Business Process Management (BPM) comes with its share of challenges that organizations must navigate to successfully implement and maintain effective processes. Some of the key challenges include:

1. Resistance to Change: Employees may resist process changes, impeding adoption.
2. Process Complexity: Managing intricate processes involving multiple factors.
3. Ownership Ambiguity: Lack of clear accountability for process performance.
4. Technology Integration: Difficulty in integrating BPM tools with existing systems.
5. Continuous Improvement: Resource-intensive nature of ongoing process refinement.
6. Change Management: Navigating role changes during BPM implementation.
7. Flexibility Balance: Adapting processes to change while maintaining standardization.
8. Data Quality: Dependence on accurate and accessible data for effective BPM.
9. Employee Engagement: Ensuring employees understand and embrace new processes.
10. Effective Metrics: Identifying relevant metrics to measure process success.
11. Technology Focus: Need to balance technology with process and people considerations.
12. Cultural Shift: Overcoming resistance to adopting a process-oriented culture.
13. Scope Control: Preventing expansion of BPM initiatives beyond manageable levels.

Also Read: Top Business Process Management Tools For Your Business

Addressing Challenges in Business Process Management (BPM) Implementation

While implementing BPM offers numerous benefits, organizations often encounter challenges along the way. Here are some common hurdles and potential solutions:

Challenge 1: Resistance to Change

• Solution: Foster a culture of open communication and transparency throughout the process. Explain the purpose of BPM and its potential benefits for employees. Encourage participation and feedback during process analysis and design.

Challenge 2: Lack of Employee Buy-In

• Solution: Provide comprehensive training and support to equip employees with the necessary skills and knowledge to navigate the new processes. Address concerns and actively listen to employee feedback. Highlight the positive impact of BPM on individual work experiences and career development.

Challenge 3: Data Quality Issues

• Solution: Conduct thorough data audits to identify and address any inconsistencies or inaccuracies within existing data sets. Invest in data cleansing and standardization efforts before integrating systems or automating processes. Implement data governance policies to maintain data quality throughout the process lifecycle.

Challenge 4: Integration Challenges

• Solution: Conduct a thorough analysis of existing IT infrastructure and identify potential compatibility issues. Choose a BPM system that offers seamless integration capabilities with existing software and applications. Partner with experienced professionals to ensure smooth system integration and data exchange.

Challenge 5: Lack of Resources

• Solution: Consider starting small and focusing on automating and optimizing specific processes initially rather than attempting a complete organizational overhaul. Explore cost-effective BPM solutions, including no-code/low-code platforms, that require minimal initial investment and offer scalability as your needs evolve.

By proactively addressing these challenges and implementing appropriate solutions, organizations can navigate the BPM implementation process more effectively and achieve their desired outcomes.

Also Read: Quixy as Your Business Process Management Software

Conclusion

Business process management solutions and workflow automation through no-code platforms are the need of the hour. The faster businesses embrace it; the easier it will be for them to navigate through daily business needs and processes.

Quixy is among the top no-code business process management platforms. No matter your business, Quixy can help you with your business process management and automation at least 10x faster. It is also extremely easy to use. Get started with our platform, and experience the ease of automated processes and personalized app building.

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