BPM – what is it?
BPM (Business Process Management) is an approach to managing an organization in which a company consciously identifies, describes, analyzes, and continuously improves its processes. The reference point is the entire process, for example, from a customer inquiry to an invoice, rather than a single department or task. This makes processes transparent, repeatable, and subordinate to the company’s goals.
BPM is a methodology, not software. It is often confused with the systems that support it, as discussed below.
Process lifecycle in BPM
BPM is not a one-time project, but a repetitive cycle. It usually includes:
- Identification and modelling – determining what processes operate in the company and describing their course, most often in the form of a diagram in BPMN notation.
- Analysis – checking where the process stops, which steps are unnecessary and where errors appear.
- Implementation – introduction of improvements, often together with the automation of selected steps.
- Monitoring – Measurement of lead time, workload, and quality based on data from the running process.
- Optimization – making changes based on results, after which the cycle starts again.
What is BPM used for?
BPM is usually used by companies where processes go through many departments and no one sees them in their entirety, or those that need to demonstrate compliance with procedures, e.g. during an audit or quality certification.
A typical example is a procurement process that takes too long. After mapping it, it turns out that the application goes through several approvals, some of which are redundant, and the sequence of steps causes downtime. Simplifying the process reduces the lead time before any software even appears.
BPM also provides a common language. Processes described in a uniform way are understandable for both business and IT, and the data from their monitoring are the basis for decisions on further changes.
BPM vs. BPMS and process automation
BPM is an approach and a set of practices. BPMS (Business Process Management System) is software that helps implement them: it allows you to model processes, run them, monitor them and introduce changes. Business process automation, on the other hand, is one of the tools used at the implementation stage, in which repetitive tasks are taken over by the system.
BPM can be used without a specialized system, e.g. by mapping and analyzing processes in workshops. In the long run, however, the software makes it easier to maintain processes and track their results.