Four Stages of Business Process Management
Business Process Management: http://en.wikipedia.org/wiki/Business_process_management
Business Process Management is probably one of the most important tools that an organization uses. Business Process Management or BPM is the systematic process of creating, assessing, and altering business process, this is the definition given by David M. Kroenke who is the author of "Using MIS". What Business Process Management does, if implemented correctly, is that it allows the organization to streamline its activities thus reducing costs and providing a better service for its customer. In most business, files, records, orders, etc. are scattered between multiple departments which increase cost to do business and at times information can be lost, but BPM decreases those costs and keeps all the valuable information in a safe place which can be accessed very easily. When BPM is implemented, tasks are usually identified and tracked as they move along through the company. Providing great service to customers is only the tip of the ice berg of what BPM can do, but it also allows organization to see if there are any shifts in the marketplace.
The tasks most organizations do are usually very complex, multifarious, and compelling so they have to implement and practice BPM. There are 4 stages in the business process model and the 4 stages are create components, implement processes, assess results and model processes. These 4 stages build off one another and they pretty much work in a circle.
According to "Using MIS", below are the 4 stages, but many different websites have different number of stages, some have 6 such as Wikipedia and other have 7, etc. The following four process are in a constant loop.
Four Stages and their functions:
-Create Components: When creating components the five elements of Information Systems are used, which are hardware, software, data, procedures and people. The way the five elements work is what is on the left, hardware in this case, is the easiest to replace for an organization but the element that's on the right, people in this case, is the hardest to replace and the other three elements fall between those two.
-Implement Process: Here we put the process into affect and the information derived from this step will be very crucial to the companies success or failure.
Here is where the as-is model gets created. What the as-is model does is it looks at how things are done currently within the organization. Managers then review the model and make any necessary changes so the BPM can be more efficient.
-Asses Results: During this step the managers, owners or whomever is in charge asses the results BPM gave. If the information provided benefits the organization then that BPM can be kept, or it can be changed to make it more effective.
The way this process starts out is that a model of the business process must be created at first which is usually done by individuals who are familiar with that industry. Majority of the times teams usually build an as-is-model, which looks at the how the company, etc. is performing right at the moment and then changes are made to the system as time goes on or as needed. From there, companies then create system components. Usually, all five elements of every information system is included but at times some might be fully automated and some might be fully manual. After completing its BPM, most companies make gradual changes to it to make it better. At times, some organizations completely get rid of their old business process managements and start new ones.
Importance of Business Process Management to Organizations
BPM is one of the most important tools any organization can implement, it reduces costs and greatly improves efficiency on multiple levels. Another way to describe what BPM does is that it brings everything together, it organizes an organization. It does what a folder does for a student but on a much bigger scale. Usually, the big corporations have many departments such as the accounting deparment, finance, human resources, IT, legal, logistics etc. The activities one department does is called functional process, but activities that are involved within multiple business departments is called cross functional process. There is one big problem with functional systems though, due to one department working on its own the chances of data duplication, inconsistency and lack of integrated information increase immensely. There is also a another process most organizations have implemented and that is called inter-organizational process and this deals with multiple companies sharing information electronically. A good example of inter-organization process is supply chain management. What inter-organization process does is that it enables organizations to forecast their clients needs. Inter-organization process also helps in the delivery and supply of products.
Overall, majority of the big organizations that are present today have a business process management in place because it streamlines work, cuts down on errors and makes that companies employees more productive. This is one of those tools which is hard to set-up due to costs and hours needed but once it is up and running, it benefits the company in ways we cannot even comprehend.