It is the crux of progressive corporate management: the path to more efficient business processes is characterized by time-consuming analyses, adjustments and possible setbacks. However, the incentives of a transparent organization with agile end-to-end processes and corresponding cost savings are reason enough for most companies to take a close look at their internal processes. An important generic term in this respect is business process management and encompasses countless methods for sustainably improving processes.
What is Business Process Management?
Business Process Management (BPM) describes an analytical approach to systematically plan, control and thus improve business processes. The decisive factor is the goals to be achieved by a business model, which can be achieved by strategically adapting processes as far as possible. effective as well as efficient are to be achieved. In contrast to project management, BPM is not a one-off process, but concentrates particularly on repetitive processes and is itself constantly repeated. In an agile environment, the methods therefore aim to approach a constantly changing optimum.
The basic concept of BPM is nothing new, but its importance has changed significantly recently: The digital transformation is creating an increasingly dynamic environment in many sectors, while new technologies, e.g. in the field of artificial intelligence, are increasing the demands on IT systems and infrastructures. At the same time, however, companies have more options at their disposal to analyze and improve their processes. An important basis is provided by graphical processing, such as through Business Process Model and Notation. AI-based data analyses in real time can also help to create clarity and support the implementation of suitable BPM methods such as Six Sigma or Lean Management.
The 5 phases of BPM
As an ongoing approach, it makes sense to also understand business process management systematically and in terms of processes. A number of general segments can be defined to which the individual steps of specific process optimizations can be assigned.
- Concept
Similar to project management, the status quo is analyzed and specific objectives are defined. Based on this, the company can select methods to gradually and measurably improve the relevant metrics.
- Modeling
Based on the first step, a model of the business processes is created that contains important details such as resource planning and the management of dedicated tasks, as well as risk factors. Visualizations using software tools are particularly helpful in this phase.
- Implementation
The company can now test the developed model on some of the selected processes and obtain feedback. If the results are as envisaged in the concept, the company can continue with business process management for all defined business processes.
- Monitoring
Now it is important to continuously monitor the implemented BPM approach, focusing on efficiency and alignment with the defined objectives. The identification of previously unknown influences also plays a role.
- Optimize
Any remaining deviations from the target are subject to further processing, taking constant account of feedback and generated data. If a consistent and sustained improvement in processes is observed, automation, at least in part, is worth considering.
Methods for business process management
The five-stage BPM cycle described above can be enriched with various methods and strategic approaches. The primary business model and the nature of the processes that the company wants to optimize are particularly relevant for the selection.
Continuous Process Improvement
CPI breaks with the well-known saying "Never change a running system". The basic assumption is that existing processes that are already achieving their objectives should also be the subject of ongoing improvements. This is done gradually and iteratively. The approach is particularly relevant for the most important business processes that are dependent on constant optimization, for example in contact with customers or in product management. Specific examples are Kaizen or the PDCA cycle (Plan-Do-Check-Act).
Six Sigma
This approach primarily relates to quality management and the statistical reduction of errors and deviations. A maximum error tolerance of six standard deviations (6σ) is prescribed, which makes the principle particularly suitable for products with precisely measurable properties. Six Sigma is therefore one of the most popular BPM methods, particularly in production.
Lean Management
BPM aims to streamline and increase the efficiency of an entire value chain. From both the customer's and the company's point of view, all personnel and automated processes should be optimally interlinked, with this multidimensional approach serving to identify and ultimately reduce unnecessary activities. Originating in the automotive industry, lean management quickly became the global standard for many process-oriented organizations.
Process Automation
Even if business process management is primarily about strategies and not technology, digital transformation and the automation of processes play a decisive role. Deterministic algorithms, Robotic Process Automation (RPA) and artificial intelligence can prevent human error and perform repetitive tasks more efficiently. At the same time, many business processes are becoming digitally traceable, which supports the application of BPM methods.
Business Process Model and Notation
BPMN is a modeling language based on graphical representations that can be used to support all phases of business process management. Through Notations process diagrams are created that make it easier to document, analyze and control various processes. The symbols to be used are already predefined within the framework of consistent semantics and thus allow a comprehensive, generally understandable process analysis.
Notation BPMN
Entrepreneurial perspectives
There are different perspectives through which companies can gain access to the management of their business processes:
- Personnel-based BPM - Employees are the backbone of every company and exert a direct influence or Regular control on most processes. In sensitive cases in particular, human access via user interfaces, approvals, graphical allocation of process steps and regular feedback are relied on despite the high degree of digitalization.
- Integration-based BPM - This access has become increasingly important and focuses on company-wide data streams and Data integration between software applications. Programming interfaces (APIs) ensure overarching connectivity and link BPM with the more general business management as well as Customer Relations Management (CRM) and Enterprise Resource Planning (ERP).
- Document-based BPM - Documents are among the most valuable information carriers in companies and are involved in every type of process. An important basis for obtaining information for business process management is therefore the often automated reading of the data contained, e.g. as part of a Contract Analysis and the recording of Invoice or Land register data.
Comprehensive BPM access with Konfuzio
It can be difficult for companies to decide on a single approach to business process management, as processes in all departments typically benefit from strategic adjustments. The extent to which a process is personnel-, integration- or document-based can vary greatly. It therefore makes sense to use business software that supports each of these approaches. In this respect, Konfuzio offers comprehensive solutions for every dimension of BPM:
Documents
Konfuzio is equipped with various AI techniques for automatic Data extraction from business documents. The software recognizes relevant data fields directly and transfers the information they contain into a structured database that can be used for any type of BPM method. Automated transfer, e-mail automation and archiving can also be used to automate and optimize entire processes (end-to-end) as part of these approaches.
Integration
Konfuzio is available per REST API can be seamlessly integrated into existing software landscapes and thus supports the orchestration and company-wide retrieval of relevant process data. The interfaces and thus the data streams can be flexibly adapted using various tools to facilitate the optimization of digital processes. Real-time monitoring is also possible in order to continuously retrieve information for business process management.
Personal
Konfuzio is equipped with comprehensive functionalities that facilitate human access to process optimization and control. This includes the Document Validation UIa module for graphical user interfaces to manually optimize the AI used and thus automated business processes. Employees are relieved by saving time and reducing errors, while control stations for human checks can be implemented at any time as part of the planned BMP strategy.
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Conclusion
Business Process Management (BPM) offers companies a strategic framework for continuously analyzing, adapting and optimizing processes. Continuity and consistency are particularly important here. Common methods such as lean management, Six Sigma and the like also have one thing in common: a very close look. Only when there is complete clarity about the processes from end to end can well-founded decisions be made about their strategic direction.
Modern technologies such as artificial intelligence, RPA and graphical user interfaces support this analytical perspective, ensure easier access to information at all levels of the company and promote automated processing. What began in the business management textbooks of the last century is now common practice almost everywhere: BPM is permeating the entire business world, sometimes more, sometimes less consciously. But only those who approach the topic actively, holistically and technologically can secure a place at the top in the long term.
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