Importance of Business Process Management

In the era of fast changing world where there is hardly time to catch up breath, we still must care about the core and that is business process management. Business process management is used around identifying and documenting core business processes within the organisation. It also focuses on everything around core business process like roles, responsibilities, time taken from A to B, inputs required and outputs expected.

Although a lot has been done by companies to manage business processes effectively, identify core ones to keep in house and noncore to outsourced to manage through the vendors. With all the more fast changing needs and directions of business is making companies to increase their focus on business process management.

Business process management is important and seen useful because of following,

Good business process management ensures,

  1. Great returns in terms of process automation and use of technology to enable & enrich the business user’s experience
  2. Agility to be able to identify and change as per changing business needs
  3. Ability to create one understanding of the business process flow across the organisation
  4. Ability to identify and outsource or buy business as a service for non core business processes
  5. Ability to better control and comply with audits and regulatory needs

Bad business process management leads to,

  1. Poor response to changing business needs requiring business process change
  2. Agility to adapt only for local situation leading to duplicity and unmanageable change
  3. Duplicate business processes and their automation for various locations due to slightly different adaptation in different places
  4. Increased business process management, trainings and IT costs
  5. Unclear understanding of business processes would lead to control, compliance and regulatory issues

No matter how fast the change becomes, its still very essential to have full ownership and effective business process management in place. The value of the same is long lasting and could be the make or break of the success of the company.

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2 thoughts on “Importance of Business Process Management

  1. What tactics do you recommend for managing business processes? I have heard that six sigma and lean operations will allow for better management of processes, as well as provide savings. I have also found that if you take the approach that each different process is a value stream (in manufacturing setting), it gives employees the sense of each portion of the overall process being equally important.

  2. I have to agree with you, bad business process management leads to a loss of focus on what is important to the organization. When the organization loses focus, they can run into a going concern because of increased expenditures. Businesses need to find what they do, what their main money maker is, focus on making that process as efficient as possible, and consider outsourcing the rest.

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