Improving Business Processes Through Business Process Management
Business Process Management is a way of actively controlling and managing the business processes inside an organization. It is an effective approach to use in times of crisis to make certain that the organization’s business processes are efficient and effective, while keep improving it over time. This will result in a more efficient cost for the organization.
Business process management is neither task management nor project management. Task management and project management are about handling or organizing activities in a project, which are often one-time and non-repeatable. This is different with business process management, which is about handling and managing business activities in a long-term. It is more focused on repetitive and ongoing processes that follow a predictable pattern that is used as the business operates every day.
The business process management is very important to an organization because all businesses require a management for all of their system. If it’s left unmanaged and unsystematised, it can lead to a chaos and the system cannot work properly. What can happen if the business processes are poor and unmanaged are wasted time because each process takes a long time, a lot of errors that caused the process to be disturbed, lack of data that could cause the higher-ups to take a long time in decision making or even make the wrong decision, and many more. By applying business process management, organizations can improve their processes and keep all aspects of the operations running optimally.
There are a lot of benefits that comes if an organization have a good business process management. It could improve availability of information to help the decision makers make decision for the organization, because there are more data/information where they could base their decision from. Beside improving availability of information, business process management can also reduce expenses, such as operating expenses and IS expenses because the processes are more efficient and effective. Not only reducing the business’ expense, it can also reduce the manufacturing times because each manufacturing process has been planned and makes it more efficient and effective, so it also reduces the manufacturing time. The inventory that manufacturing process produced are also reduced because the business has planned beforehand how much they wanted to produce according to calculations from sales data or others, so they can avoid over excess inventory that piles up in the warehouse. Last but not least, it will also increase integration between the suppliers, organization, and the customers.
A good business process management in an organization makes the business process in an organization more effective and efficient, but also costs something to the organization. The organization need good human resources in order to run the business, and they must cost some money to train those personnel. When they want to improve the process management, they also need to pay some costs in order to customize it further. Last but not least, the integration between suppliers, organization, and customers, also require some costs for the organization. Although a good business process management costs the organization, but it’s worth more than having a poor business process management that could cost more and also makes it more difficult for the organization to grow.
References:
https://www.aiim.org/What-is-BPM
https://kissflow.com/bpm/business-process-management-overview/