Organizations often implement Business Process Management for a variety of reasons. However, the main stimulus is to be more competitive in the intense competition of today’s economy. A majority of company leaders are pressured to stay competitive through improved offerings and the achievement of enhanced productivity, while at the same time reducing overall costs and advancing business processes.
Amidst the challenges, both small and huge companies are looking forward to the benefits that BPM can deliver. Business process management helps organizations geared up for worldwide competition by helping leaders and organizations improve performance through a wide array of components, such as: analysis, proper design, careful observation and control as well as modification of business processes. All of these are products of BPM, providing organizations with the following five benefits.
1. Improved Business Agility
It has always been a necessity to make modifications to an organization’s best practices in order to stay abreast with the changing conditions in the market. An efficient BPM permits the business owner to make pauses in its business processes, implement changes and re-execute it. With this, process will have the unique ability to stay on track and implement changes or redefine the tasks of its process users. The end result is a higher level of adaptability to unstable situations.
Greater control and agility allows organizations to alter workflows and re-use or customize them as necessary. Through this, business processes become more responsive through the structure that entails precise documentation of the steps involved in a certain process. The defined knowledge allows organizations to comprehend the possible impact of change on business processes. An organization that has knowledge of the effects of process modifications is more open to options that could improve profitability.
2. Reduced Costs and Higher Revenues
Implementing the right BPM suite in an organization can trim down the costs associated to business process execution. More enhanced processes and productivity of the workforce makes it possible. Hence, employing the right BPM in the organization can significantly deliver positive results.
The decline in operational costs, post-BPM deployment, may not be visible right away, but eradicating bottlenecks would cause remarkable improvements. For instance, this could reduce lead time that can have a positive effect on how the organization sells the products. This may also mean that consumers will have more access to the services and products in unity to their needs within the shortest time possible. Thus, organizations will have more market demand, which is followed by more elevated sales and improvement in terms of revenue.
In line with this, organizations can also improve efficiency and profitability through the reduction of waste. BPM involves allocating and tracking resources to avoid wastage. Plus, customary evaluations of performance can lead to determination of inefficiency, wastage and conduct actions to address these problems.
3. Higher Efficiency
Deployment of BPM enhances the efficiency of business processes tremendously. This potential is brought by the integration of organization processes from start to finish. Process owners are automatically alerted every time they hand out responsibilities to its individual members. This leads to more proficient monitoring of delays or reallocating tasks among the members. Therefore, BPM aids in eliminating bottlenecks and reducing lead time in terms of implementing and enhancing business processes.
BPM also results to optimization of processes through the removal of any redundant tasks and implementing automation to reduce the possibility of rework and errors. This quality and more has attracted organization leaders to deploy favorable BPM processes not only to maximize returns, but also align the organization objectives with its processes.
4. Better Visibility
Essentially, BPM makes use of refined software programs in order to make process automation possible. These programs allow process owners to keep track of performance and see how the business processes function in terms of real time. The automation of processes discloses how processes are working without the need of extensive labor and monitoring techniques. Enhanced transparency allows management gain a better understanding of their processes. These things allow the management to modify structures and processes efficiently while keeping track of outcomes.
5. Compliance, Safety and Security
Reliable BPM practices assist organizations informed of their duties. These can be financial reports, labor laws compliance and a wide range of government rules that organizations should follow. A comprehensive BPM guarantees that organizations comply with the standards and stay up to date with the laws.
Furthermore, business process management also has the ability to promote security and safety measures. It is done by properly documenting procedures and facilitating compliance. Organizational policies and internal controls play a vital role in BPM. Such things aid organizations encourage their staff to safeguard organization assets, which include private information and physical resources from misuse, loss or other acts like theft.
Overall, organizations that utilize BPM principles discover that they have the capacity to reduce cost and enhance productivity by simply identifying how processes would work under the best conditions. This is also followed by implementing the necessary adjustments to implement control and achieve the best performance that would aid in tracking future outcomes. With all these, there is no wonder why BPM is making a buzz in the giant world of business and marketing.
A Free Business Process Management e-book
Organizations benefit when they integrate in their BPM deployment:
- Automatically updated predictive performance metric reports
- Analytically/innovatively determined targeted strategies
- Identified improvement efforts so that the enterprise as a whole benefits
A business system integration of these concepts is described in the book "The Business Process Management Guidebook: An Integrated Enterprise Excellence BPM System." An e-book version of this book is available here: Free BPM Guidebook